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“The Future’s in Sight”
City of Chandler
Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2021
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
Prepared by
Management Services Department
Dawn Lang, Deputy City Manager|CFO
Kristi Smith, Accounting Manager
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................................
1
Elected and Appointed Officials ..................................................................................................................
7
Organizational Chart ......................................................................................................................................
8
Certificate of Achievement for Excellence in Financial Reporting .......................................................
9
FINANCIAL SECTION
Independent Auditor’s Report .....................................................................................................................
11
Management’s Discussion and Analysis (MD&A) ....................................................................................
17
Basic Financial Statements:
Government-wide Financial Statements -
Statement of Net Position ......................................................................................................................
30
Statement of Activities ............................................................................................................................
32
Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................................................
34
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Position ......................................................................................................................
35
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental
Funds ..........................................................................................................................................................
36
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-wide Statement of Activities ............................
37
Statement of Net Position - Proprietary Funds .................................................................................
38
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds .............
41
Statement of Cash Flows - Proprietary Funds ...................................................................................
42
Notes to the Financial Statements .........................................................................................................
44
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
General Fund ............................................................................................................................................
91
Schedule of the Proportionate Share of the Net Pension Liability - Arizona State
Retirement System ..................................................................................................................................
92
Schedule of Contributions - All Pension Plans ..................................................................................
94
Schedule of Changes in the Net Pension Liability and Related Ratios - Public Safety
Personnel Retirement System - Police ................................................................................................
96
Schedule of Changes in the Net Pension Liability and Related Ratios - Public Safety
Personnel Retirement System - Fire ....................................................................................................
98
Schedule of Changes in OPEB Liabilities and Related Ratios - Single Employer Plan ..............
100
Notes to the Required Supplementary Information ........................................................................
101
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
i
TABLE OF CONTENTS, continued
FINANCIAL SECTION, continued
Other Financial Statements:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
General Obligation Bonds Debt Service ...........................................................................................
105
Non-Major Governmental Funds:
Combining Balance Sheet ....................................................................................................................
109
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..............
112
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Highway User Special Revenue .........................................................................................................
115
Local Transportation Assistance Special Revenue .......................................................................
116
Grants Special Revenue ......................................................................................................................
117
Community Development Special Revenue ..................................................................................
118
Police Confiscated Property Special Revenue ...............................................................................
119
Parks and Recreation Special Revenue ...........................................................................................
120
Museum Special Revenue ..................................................................................................................
121
Library Special Revenue .....................................................................................................................
122
Special Assessment Bonds ................................................................................................................
123
General Government Capital Projects ............................................................................................
124
Public Buildings Capital Projects ......................................................................................................
125
Grants Capital Projects .......................................................................................................................
126
Streets Capital Projects .......................................................................................................................
127
Community Services Capital Projects ..............................................................................................
128
Public Safety Buildings and Improvements Capital Projects .....................................................
129
Vehicle and Capital Equipment Replacement Capital Projects .................................................
130
Technology Replacement Capital Projects .....................................................................................
131
Municipal Arts Capital Projects .........................................................................................................
132
Non-Major Proprietary Funds:
Combining Statement of Net Position ..............................................................................................
134
Combining Statement of Revenues, Expenses and Changes in Net Position ..........................
137
Combining Statement of Cash Flows ................................................................................................
138
STATISTICAL SECTION
Financial Trends
Schedule 1, Net Position by Component .........................................................................................
142
Schedule 2a, Changes in Net Position ..............................................................................................
144
Schedule 2b, Changes in Net Position ..............................................................................................
146
Schedule 2c, Changes in Net Position ...............................................................................................
148
Schedule 3, Fund Balances of Governmental Funds .....................................................................
150
Schedule 4, Governmental Funds Revenues ...................................................................................
152
Schedule 5, Governmental Funds Expenditures and Debt Service Ratio .................................
154
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
ii
TABLE OF CONTENTS, continued
STATISTICAL SECTION, continued
Schedule 6, Other Financing Sources and Uses and Net Changes in Fund Balance -
Governmental Funds ............................................................................................................................
156
Revenue Capacity
Schedule 7, Taxable Revenue by Category ......................................................................................
158
Schedule 8, Direct and Overlapping Sales and Use Tax Rates ....................................................
160
Schedule 9, Principal Sales and Use Taxpayers ..............................................................................
161
Debt Capacity
Schedule 10, Ratios of Outstanding Debt ........................................................................................
162
Schedule 11, Direct and Overlapping Governmental Activities Debt ........................................
163
Schedule 12, Legal Debt Margin Information .................................................................................
164
Schedule 13a, Pledged-Revenue Coverage .....................................................................................
166
Schedule 13b, Pledged-Revenue Coverage .....................................................................................
167
Schedule 14, Property Tax Assessment Ratios ...............................................................................
168
Schedule 15, Property Taxes Levied and Collected .......................................................................
169
Schedule 16, Direct and Overlapping Assessed Valuations and Tax Rates Per $100
Assessed Valuation ...............................................................................................................................
170
Schedule 17, Property Value by Property Classification ...............................................................
171
Schedule 18, Net Assessed Limited Property Assessed Value of Major Taxpayers ...............
172
Schedule 19, Estimated Net Full Cash Value and Assessed Values ............................................
173
Schedule 20, Direct and Overlapping General Obligation Bonded Debt Ratios .....................
174
Schedule 21, Population Statistics .....................................................................................................
175
Schedule 22, Excise Tax Collections ..................................................................................................
176
Schedule 23, Transaction Privilege (Sales) Tax Rates by Category .............................................
177
Schedule 24, State Sales Tax Taxable Activities, Tax Rates and Distribution Share ...............
178
Schedule 25, Combined Schedule of Water and Sewer System Revenues, Expenses, Net
Revenues and Debt Service Coverage ..............................................................................................
179
Schedule 26, Utility Rate Increase History .......................................................................................
180
Schedule 27, Top 10 Water and Wastewater Customers .............................................................
181
Schedule 28, Number of Water and Wastewater Customers .....................................................
182
Schedule 29, Delinquencies on Payments for the Assessments ................................................
184
Schedule 30, Direct and Overlapping General Obligation Bonded Debt Outstanding ..........
185
Demographic and Economic Information
Schedule 31, Demographic and Economic Statistics .....................................................................
186
Schedule 32, Principal Employers ......................................................................................................
187
Operating Information
Schedule 33, Employees by Function ................................................................................................
188
Schedule 34, Operating Indicators by Function/Program ............................................................
190
Schedule 35, Capital Asset Statistics by Function/Program .........................................................
192
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
iii
Introductory Section
“The Future’s in Sight”
Chandler’s commitment to innovation, smart planning, and
wise investments enables our community to receive quality
services at some of the lowest tax and utility rates in the Valley.
Introductory Section
Letter of Transmittal
Elected and Appointed Officials
Organizational Chart
Certificate of Achievement for Excellence in Financial Reporting
Introductory Section
December 10, 2021
Honorable Mayor, Members of the City Council, City Manager, and Citizens of the City of Chandler:
The Annual Comprehensive Financial Report of the City of Chandler, Arizona (the City), for the year ended June
30, 2021, is hereby submitted in accordance with City Charter and State statutes. Both the City Charter and State
statutes require that the City issue annually a report on its financial position and activity, and that this report be
audited by an independent certified public accountant. Responsibility for both the accuracy of the data and the
completeness and fairness of the presentation, including all disclosures, rests with the City’s management. To
the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a
manner that fairly presents the financial position and results of operations of the various funds and component
units of the City.
Generally accepted accounting principles (GAAP) in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form
of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. The City of Chandler’s MD&A can be found immediately
following the report of the independent auditors.
The City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act of
1996 and U.S. Office of Management and Budget Uniform Guidance. Information related to this single audit,
including a schedule of expenditures of federal awards, the independent auditors’ reports on the internal
control structure and compliance with applicable laws and regulations, and a schedule of findings and
questioned costs are included in a separately issued report.
GOVERNMENTAL STRUCTURE, LOCAL ECONOMIC CONDITION AND OUTLOOK
The City, incorporated on February 17, 1920, is located in the southeastern portion of Maricopa County, and
encompasses approximately 65 square miles. The City has operated under a council-manager form of
government since May 25, 1964, and is governed by the City Council, consisting of a mayor and a six member
council. Councilmembers are elected at-large on a staggered basis; the mayor and councilmembers are elected
for four-year terms and are limited to two consecutive terms in office. The City Council is vested with policy and
legislative authority, and is responsible for passing ordinances, adopting the annual budget, appointing
committees, commissions, and board members, and appointing the positions of City Manager, City Attorney,
City Clerk, and City Magistrate. The City Manager is responsible for carrying out the policies and ordinances of
the City Council, as well as overseeing the day-to-day operations of the City.
Chandler is the fourth largest city in Arizona and is one of several major cities comprising the greater Phoenix
metropolitan area, which is the economic, political, and population center of the State of Arizona. The City’s
population has experienced remarkable growth over the past 25 years, increasing by 114 percent, from an
estimated 128,652 in 1995 to 275,987 in 2020, based on the 2020 census. The City’s manufacturing sector has
been a major driver of economic growth during this time and includes high-tech industrial companies such as
Intel Corporation, Northrop Grumman, Microchip Technology, and NXP Semiconductors. These four companies
combine to employ over 17,000 people in the City. Another industry that has experienced strong growth is
financial services with companies such as Wells Fargo, Bank of America, PayPal, GM Financial Services, Allstate,
and Liberty Mutual Insurance establishing corporate offices in Chandler. These six companies combine to
employ over 13,000 people in the City.
Mailing Address
Mail Stop 609
PO Box 4008
Chandler, AZ 85244-4008
Management Services
Administration (480)782-2250
(480) 782-2253 Fax
chandleraz.gov
Location
Third Floor
175 S. Arizona Ave.
Chandler, AZ 85225
The City boasts a strong labor market serving the high technology field’s demand for skilled workers. Chandler’s
median age is 36 years and the median household income is $89,732. In addition, more than 75 percent of the
adult population has a college degree or some college education. Nearly 25 percent of jobs in Chandler are in
high technology fields while the national average is about 10 percent, according to data from the Maricopa
Association of Governments and Bureau of Labor Statistics. The City’s unemployment rate averaged 5.8 percent
during fiscal year 2020-21 compared with 6.7 percent for Maricopa County and 7.1 percent for the State of
Arizona.
The City’s sales tax revenues, which comprise over 54 percent of its general fund, increased by 10.4 percent for
fiscal year 2020-21 from the prior year actuals. The City continues to strengthen its financial position and has
benefitted from one-time revenues created by increased retail spending during the COVID-19 pandemic and
new development. With steady operating revenue growth anticipated, managing costs of services and
maintaining existing infrastructure continues to be critical as the City emerges from the impacts of the COVID-19
pandemic. Consistently applying sound financial practices, achieving notable economic development successes,
and having a structured plan to pay-down its Public Safety Personnel Retirement System (PSPRS) unfunded
liability have helped the City continue its strong financial position while maintaining its AAA General Obligation
Bond credit rating from all three ratings agencies.
The City enters into tax abatement agreements as part of economic development programs. Long-term impacts
from tax abatements are considered immaterial. Additional tax abatement details are included in Note 18.
The City of Chandler’s continued goal is to provide the highest quality services to the community in the most
cost-effective manner. These services include Public Safety: Police and Fire; Community Services: Park and
Recreation and Libraries; Cultural Development: Center for the Arts and Museum; Public Works: Streets and
Traffic; Utilities: Water, Wastewater, Reclaimed Water and Solid Waste; Neighborhood Resources; Development
Services; Airport; Tax and Licensing and numerous internal services. The Council’s strategy to achieve these
results is through goals to improve Chandler in a coordinated manner and to make fiscally responsible decisions
that will continue to strengthen the City. The Chandler Industrial Development Authority and the Chandler
Cultural Foundation are two legally separate entities, both of which are reported separately within the City's
financial statements. Additional detail on these entities can be found in Note 1.
The City Council’s strategic goals are:
•
Being the Most Connected City
Connect our community using enhanced communication technologies to share information by
increasing electronic availability of City information. Increase community connectivity through
enhancing multimodal transportation.
•
Being a Leader in Trust and Transparency
Provide timely and accurate data and reports to maintain accountability and provide support for
effective decision making. Promote opportunities that encourage City engagement and input.
•
Maintaining Fiscal Sustainability
Maximize the City’s diverse portfolio of revenue sources. Continue adherence to and improvement upon
fiscal policies. Maintain strong bond ratings with all three ratings agencies for all types of debt. Manage
expenditure growth through periodic review of programs and services.
•
Attracting a Range of Private Sector Businesses
Position Chandler to be recognized by corporate real estate executives, site selectors, regional partners,
and the development industry as a premiere location for new investment. Coordinate and facilitate the
revitalization of Downtown Chandler.
•
Fostering a Contemporary Culture that Embraces Unity
Promote Chandler as an inclusive community that values its rich diversity, history, and culture. Support
diversity through City employment practices. Invest in employees, support systems, and innovation
strategies that ensure Chandler remains a leader in the delivery of high quality services.
2
•
Being Safe and Beautiful
Promote a multifaceted approach to address the needs of neighborhoods from the physical, safety, and
community perspectives. Construct and maintain sustainable public infrastructure. Ensure Chandler
remains a safe community by employing best practices.
2020-2021 Accomplishments
Under the guidance and leadership of the Mayor and Council, along with the expertise and dedication of City
management and staff, a number of accomplishments were achieved this last fiscal year. Listed below are just a
few of those accomplishments:
•
Maintained AAA General Obligation (GO) bond credit ratings with stable outlooks from all three rating
agencies, making Chandler one of a select few municipalities in the U.S. with this distinction;
•
Advised the Citizen Bond Exploratory Committee and coordinated the efforts of the Finance
Subcommittee towards a final recommendation of needed bond authorization that does not increase
the City’s property tax rate;
•
Implemented a new online Business Portal for City registrations and licensing;
•
Promoted public participation in the 2020 Census by working with the City’s Complete Count Committee
to educate residents about the importance of completing the census. Produced communication
materials that explained the significance of the census;
•
Provided communication support throughout the City’s response to the COVID-19 pandemic by
producing videos, broadcasting meetings, and creating digital content on the City’s websites and social
medial platforms; creating graphics, signs, and printed materials to support the City’s response;
monitoring and responding to constituent and employee inquiries; and producing FAQ materials;
•
Implemented City resolution to allow extended outside seating for liquor establishments in accordance
with the Governor’s executive order relaxing regulations during the pandemic;
•
Updated the City Council Strategic Framework in print and digital formats as well created a campaign to
promote the City Council vision, updated brand statement, and focus areas;
•
Initiated and monitored the implementation of three infrastructure improvement projects in support of
Intel Corporation capital improvements under provision of State law;
•
Economic Development’s combined business attraction/retention efforts have supported projects that
are anticipated to provide 984 jobs in Chandler within the next year and up to 1,543 jobs within three
years. Key Economic Development-assisted business locate projects including Comtech, Honeywell,
Local Motors, VIAVI, Airstream, Ranch Market, and Mechanical Keyboards;
•
Implemented the City’s Business Hiring and Retention Program, which disbursed $9.5 million in relief
funds to more than 830 Chandler businesses in support of their efforts to keep workers on payroll
during COVID-19, as well as the Industrial Development Authority (IDA) PPE grants and “I Choose
Chandler” PPE Kit Program;
•
Successfully hosted nearly 500 virtual engagements with City patrons through the Chandler Library,
providing safe social opportunities for the community during the pandemic;
•
The Chandler Arts Commission supported public art projects including vibrant utility boxes and the
Chandler Center for the Arts (CCA) Donor Wall. The Public Safety Training Center project “Our Nature”
was recognized by the American Institute of Architects Arizona Chapter with the Architectural
Component Award;
•
The Vision Gallery hosted 60 free events that included opening receptions, Vision Kids classes, and
special events with more than 4,000 attendees. The gallery was also recognized as one of the ten best
art galleries in metro Phoenix;
•
Collaborated with the Downtown Chandler Community Partnership to keep downtown businesses
aware of local, state, and federal executive orders affecting their business, recovery, and grant
opportunities, as well as promotional initiatives to help businesses survive during the pandemic;
3
•
Issued 4,220 building permits for over $1.13 billion in construction in calendar year 2020 and conducted
23,740 building inspections which is an increase of over 72% over the previous year;
•
Development Services partnered with Information Technology to design a multi-year Fiber Master
Assessment and Master Plan study that developed plans to maintain and improve the City’s fiber
system. Information Technology completed the City’s Fiber Assessment and delivered recommendations
to City Management and the Information Technology Bond Subcommittee;
•
Expanded the Waitwhile online appointment capability for several City departments to reduce the
number of people in City facilities and streamline/reduce the time it takes for citizens to visit City
facilities, further enhanced employee’s ability to effectively and securely work remotely through the
implementation of robust infrastructure and security solutions, and provided geographic representation
of various City functions that enabled departments to effectively manage social distancing issues;
•
Neighborhood Programs was awarded 20 neighborhood grants totaling over $34,000 for cleanup
events, common wall, and landscaping improvements, as well as received $25,000 from local businesses
to create and enhance community programs;
•
Received and allocated over $13 million in Emergency Rental Assistance Program and Community
Development Block Grant-Coronavirus funds to assist Chandler residents impacted by COVD-19 with
rent and utility payments;
•
The Fire Department participated in the planning and design of the southeast COVID-19 Vaccination
POD and provided medical standby staffing during the duration of its operation, and successfully
vaccinated 720 Chandler employees and 68 Chandler seniors in the public housing program;
•
Treated and reclaimed 11.71 billion gallons of wastewater at the Airport, Lone Butte, and Ocotillo Water
Reclamation Facilities, 10.3 billion gallons of which were reused for irrigation and cooling;
•
Pecos Treatment Plant treated and delivered 23 billion gallons of potable drinking water;
•
Completed ADA upgrades to 845 sidewalk/driveway locations and 980 corner ramps;
•
Field Operations Division received nine hybrid patrol vehicles, offering significant improvements in fuel
economy and the reduction of carbon dioxide emissions;
•
Continued developing and maintaining community partnerships, which is the cornerstone of system of
policing resulting in crime being down again in 2020, making it one of the safest years in Chandler’s
history; and
•
Implemented the Thrive Resilience Program for Chandler teens, which includes training in all three
public school districts in the City of Chandler, aimed at empowering students with resilience-based skills
to enhance their positive mental health while aiding in successful social and emotional wellbeing of
school communities.
FINANCIAL INFORMATION
Internal Control Structure
Management of the City is responsible for establishing and maintaining an internal control structure designed
to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by
management.
As a recipient of federal, state, and county financial assistance, the City is also responsible for ensuring that an
adequate internal control structure is in place to ensure and document compliance with applicable laws and
regulations related to these programs. This internal control structure is subject to periodic evaluation by
management and various other City staff, as needed.
4
Single Audit
As a part of the City’s single audit, described earlier, tests were made of the City’s internal control structure and
of its compliance with applicable laws and regulations, including those related to federal financial assistance
programs.
Budgetary Controls
The City maintains budgetary controls as an integral part of its overall system of internal controls. The objective
of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated
budget approved by the City Council. Activities of the general fund, special revenue funds, capital projects funds,
enterprise funds, internal service funds, and fiduciary funds are included in the annual appropriated budget.
The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated
amount) is the total budget, as adopted (FY 2020-21, $1.06 billion). The City additionally exercises management
control and oversight of the budget at the department level within each fund and maintains an encumbrance
accounting system as another method of maintaining budgetary control. Encumbered amounts do not lapse at
fiscal year-end and appropriation equal to the amount of year-end encumbrances are added to the current year
budget in each cost center. Expenditures against those encumbrances are charged to the current year
appropriation.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
OTHER INFORMATION
Independent Audit
City Charter and State statute require an annual audit by a firm of independent certified public accountants and
the firm of Heinfeld, Meech & Co., P.C. has been selected by the City to uphold this requirement. In addition to
meeting the requirements set forth in City Charter and State statutes, the audit was also designed to meet the
requirements of the federal Single Audit Act of 1996 and the related U.S. Office of Management and Budget’s
Uniform Guidance. Auditing standards generally accepted in the United States of America and the standards set
forth in the General Accountability Office’s Government Auditing Standards were used by the auditors in
conducting the engagement. The auditor’s report on the basic financial statements is included in the financial
section of this report. The auditor’s reports on internal controls and compliance with applicable laws and
regulations can be found in a separately issued single audit report.
Financial Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Chandler, Arizona, for its Annual Comprehensive
Financial Report for the year ended June 30, 2020, marking the thirty-ninth consecutive year the City has
received the GFOA Certificate of Achievement. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of a municipal government financial
report.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards.
Such reports must satisfy both GAAP and applicable legal requirements.
Additionally, the City of Chandler was also awarded the Distinguished Budget Presentation Award for the fiscal
year beginning July 1, 2020 from the GFOA, marking the thirty-third consecutive year of receiving this award. The
award reflects the commitment of staff to meeting the highest principles of governmental budgeting.
In order to be awarded a Distinguished Budget Presentation Award, the City had to satisfy nationally recognized
guidelines for effective budget presentation. The guidelines are designed to assess how well an entity’s budget
serves as a policy document, financial plan, operational guide, and communications device. The City’s budget
presentation receives an outstanding rating in many of the areas rated.
5
The Certificate of Achievement and Distinguished Budget Presentation Awards are valid for a period of one year
only.
We believe our current Certificate of Achievement report continues to conform to the Certificate of Achievement
program requirements and we are submitting it to the GFOA.
Acknowledgments
I wish to express my sincere thanks to the entire staff of the Accounting Division; without whose assistance this
report could not have been prepared. Special acknowledgment is made for the work of Kristi Smith, Accounting
Manager; Tracy Schmidt, Accounting Supervisor; Robert Steele, Accounting Supervisor; Lina Alam, Senior
Accountant; Debbie Motta, Senior Accountant; and Joanne Chang, Senior Accountant. Special thanks also go to
Julie Buelt, Senior Financial Analyst, for assistance in reviewing the final document. Finally, I wish to thank the
Mayor and Council, City Manager, Assistant City Manager, Directors, and City staff for their continued support in
promoting sound financial policies and internal controls.
Respectfully submitted,
Dawn Lang
Deputy City Manager | CFO
6
Kevin Hartke, Mayor
Mark Stewart Vice Mayor
Christine Ellis, Councilmember
OD Harris, Councilmember
Rene’ Lopez, Councilmember
Matt Orlando, Councilmember
Terry Roe, Councilmember
Executive Staff
Joshua H. Wright, Acting City Manager
Debra Stapleton, Assistant City Manager
Department Heads and Directors
Kelly Schwab, City Attorney
Dana DeLong, City Clerk
Alicia M. Skupin, Acting Presiding City Magistrate
Matt Burdick, Communications and Public Affairs Director
Andy Bass, Community Services Director
Kim Moyers, Cultural Development Director
Derek Horn, Development Services Director
Micah Miranda, Economic Development Director
Tom Dwiggins, Fire Chief
Rae Lynn Nielsen, Human Resources Director
Sandip Dholakia, Chief Information Officer
Dawn Lang, Management Services Director
Leah Powell, Neighborhood Resources Director
Sean Duggan, Chief of Police
John Knudson, Public Works & Utilities Director
CITY OF CHANDLER, ARIZONA
ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2021
7
City of Chandler Organizational Chart
Public Works and
Utilities
• Capital Projects
• Solid Waste Services
• Transportation
• Water/Wastewater
Assistant City Manager
Development
Services
• Building Safety
• Engineering
• GIS
• Planning
• Telecommunication
& Utility Franchise
• Mayor and Council
Office
• Print, Mail, Graphics
• Public Information
• Video Production
Economic
Development
• Tourism
• Code Enforcement
• Community
Development
• Diversity Office
• Housing &
Redevelopment
• Neighborhood
Programs
Neighborhood
Resources
Community
Services
• Libraries
• Park Maintenance
• Park Development
• Recreation/
Aquatics
• Accounting
• Budget Office
• Central Supply
• Environmental
Management
• Purchasing
• Tax & Licensing
• Utility Services
Management
Services
Government
Relations and Policy
• Government Relations
• ADA Coordinator
• Multimodal Planning
• Transportation Policy
Human Resources
• HR Administration/HRMS
• Benefits & Wellness
• Labor Relations
• Recruitment & Selection
• Classification &
Compensation
• Organizational Development
• Safety
• Workers’ Compensation
Facilities and Fleet
• Maintenance &
Infrastructure
• Access/Key Control
• Energy Management
• Custodial Services
• Fleet Services
Information
Technology
• Service Delivery
• Application Support
• Infrastructure
Support
• Information Security
Cultural Development
• Center for the Arts
• Vision Gallery
• Museum
• Downtown
• Special Events
• Administration
• Emergency
Management
• Health & Medical
• Operations
• Prevention & Training
Fire
Police
• Communications
• Community Services
• Criminal
Investigations
• Field Operations
• Forensic Science
• Property & Evidence
Communi cations
and Public Affairs
Airport
Advisory Boards and
Commissions
City Clerk
Acting City Manager
City Attorney/Risk Mgr.
Acting Presiding
City Magistrate
Sustainability/Performance
Mayor and City Council
Citizens of Chandler
8
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chandler
Arizona
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
9
10
Financial Section
Independent Auditor’s Report
Management’s Discussion and Analysis (MD&A)
Basic Financial Statements
Required Supplementary Information
Other Financial Statements
Financial Section
“The Future’s in Sight”
The City of Chandler is a high quality service organization that
maintains a lean workforce of 6.4 full-time employees per
1,000 residents.
Financial Section
Independent Auditor’s Report
Honorable Mayor and Members of the City Council
City of Chandler, Arizona
Report on Audit of Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate discretely presented component units and
remaining fund information of the City of Chandler, Arizona (the “City”), as of and for the year ended
June 30, 2021, 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 discretely presented component units and remaining fund information of the
City of Chandler, Arizona, Arizona, as of June 30, 2021, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are required to be independent of City of
Chandler, Arizona, Arizona, 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.
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 one year beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter
11
Auditor’s 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 auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there
is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made
by a reasonable user based on the financial statements. In performing an audit in accordance with
generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’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.
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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, budgetary comparison information, net pension liability
information, and other postemployment benefit plan 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 auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
12
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 Other Financial Statements, as listed
in the table of contents, 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. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the Other Financial Statements, are fairly stated in all material respects, in relation to
the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the Introductory Section and Statistical Section but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial statements
do not cover the other information and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on other work performed, we conclude that an uncorrected material misstatement of the
other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 10, 2021, on our consideration of City of Chandler, Arizona’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering City of Chandler, Arizona’s internal control over financial reporting
and compliance.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
December 10, 2021
13
14
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
15
16
As management of the City of Chandler (City), we offer readers of the City’s financial statements this narrative
overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2021. We encourage
readers to consider the information presented here in conjunction with additional information that we have
furnished in our letter of transmittal beginning on page one and the accompanying notes to the financial
statements.
FINANCIAL HIGHLIGHTS
The financial statements, which follow the Management’s Discussion and Analysis, provide these significant, key
financial highlights for fiscal year 2021 as follows:
•
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of
resources at the close of the most recent fiscal year by $1.53 billion (net position). This represents an
increase of $25.7 million from the prior year primarily due to increases in equity in pooled cash and
investments due to increases in grant funding, sales taxes and state shared revenues and an increase
in deferred outflows of OPEB and pension plan items. Of this amount, $293.0 million (unrestricted net
position) may be used to meet the City’s obligations to citizens and creditors. However, $74.0 million is
invested in a joint venture with the Town of Gilbert, which decreased $4.6 million from the prior year,
and is not available for obligations.
•
At June 30, 2021, the City’s governmental funds reported combined ending fund balances of $423.1
million, an increase of $7.8 million in comparison with the prior year primarily due to American Rescue
Plan Act of 2021 (ARPA) funding, increases in sales taxes and state shared revenues. Approximately
55.0 percent of the total amount, $232.6 million, is available for spending at the City’s discretion
(assigned or unassigned).
•
At June 30, 2021, total fund balance for the general fund was $242.6 million which represents an
increase of $9.7 million from the prior year; this is primarily due to ARPA funding and increases in sales
taxes and state shared revenues.
•
General revenues from governmental activities accounted for $301.1 million, or 74.7 percent of all
revenues from governmental activities as opposed to 70.2 percent in the prior year. Program specific
revenues in the form of charges for services and grants and contributions accounted for $102.1 million
or 25.3 percent of total governmental activity revenues, as opposed to 29.8 percent in the prior year.
The City had $162.7 million of program revenues ($156.4 million in the prior year) and $3.0 million in
general revenues and transfers ($13.8 million in the prior year) related to business-type activities.
•
At June 30, 2021, the City’s proprietary funds reported combined total net position of $790.5 million as
compared to $778.1 million in the prior year; an increase for the current year of $12.4 million. This
increase is primarily due to an increase in water service fee revenues, increased interest revenue,
reduced wastewater expenses and a reduction in long-term liabilities. This results in a total unrestricted
net position of $299.8 million, of which $152.0 million of the unrestricted net position is in the water
fund.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The
City’s basic financial statements comprise 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 themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide
readers with a broad overview of the City’s finances in a manner similar to a private-sector business.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
17
The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/
outflows of resources with the difference reported as net position. Net position is categorized as capital assets
less related debt, restricted by an outside third party and unrestricted. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned
but unused compensated absences).
In the government-wide financial statements the City’s activities are presented in the following categories:
•
Governmental activities - Most of the City’s basic services are included here, such as general
government, public safety, transportation and development and community services. Sales taxes, state
shared revenues and charges for services finance most of these activities.
•
Business-type activities - The services provided by the City included here are water, wastewater,
reclaimed water, solid waste, airport services and housing services. The services are financed through
user fees and charges.
•
Component units - The discretely presented component units are the Chandler Industrial Development
Authority and the Chandler Cultural Foundation.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided
into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the government-
wide financial statements, governmental fund financial statements focus on near-term inflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating the City’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing so,
readers may better understand the long-term impact of the City’s near-term financing decision. Both the
governmental fund balance sheet and the governmental fund statement of revenues, expenditures and
changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The City maintains 20 individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and
changes in fund balances for the general fund and general obligation bonds debt service fund, which are
considered to be major funds. Data from the other 18 governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is provided
in the form of combining statements and schedules in the financial section of this report.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
18
The City adopts an annual appropriated budget for the general, special revenue, general obligation and
highway user revenue debt service, capital projects and proprietary funds. Budgetary comparison
statements have been provided in the basic financial statements for the general, general government capital
projects and general obligation bonds debt service funds to demonstrate compliance with the budget.
Budgetary comparison schedules for other non-major special revenue and non-major capital projects funds
are also included in the financial section.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprise funds to account for its water, wastewater, reclaimed water, solid
waste, airport and housing services. Internal service funds are an accounting device used to accumulate and
allocate costs internally among the City’s various functions. The City uses an internal service fund to account
for its self-insurance funds. Because self-insurance funds are funded predominantly by governmental
functions rather than business-type functions, it has been included within governmental activities in the
government-wide financial statements. Proprietary funds provide the same type of information as the
government-wide financial statements, only in more detail.
The proprietary fund financial statements provide separate information for the water and wastewater funds,
which are considered to be major funds of the City. Data from the other three enterprise funds are
combined into a single, aggregated presentation. Individual fund data for each of the non-major enterprise
funds are provided in the form of combining statements and schedules in the financial section of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements can be found immediately following the basic financial statements in this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also
presents certain required supplementary information concerning the City’s budget process. The City adopts an
annual budget for all governmental and enterprise funds. A budgetary comparison schedule has been provided
for the General Fund as required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. In the case of the
City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.53
billion as of June 30, 2021. This reflects continued strong operations in governmental activities, reduced
expenses in governmental activities and decreases in long-term liabilities within governmental and business-
type activities.
A significant portion of the City’s net position (66.3 percent) reflects its investment in capital assets (e.g., land and
improvements, buildings and improvements, improvements other than buildings, vehicles, machinery and
equipment, water rights and construction in progress), less any related debt used to acquire those assets that is
still outstanding. The City uses these capital assets to provide services to its citizens; consequently, these assets
are not available for future spending. Although the City’s investment in its capital assets is reported net of
related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City’s net position (14.5 percent) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position (19.2 percent) includes
$74.0 million which is invested in a joint venture with the Town of Gilbert that may not be used to meet the City’s
obligations to citizens and creditors.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
19
At the end of the current fiscal year, the City is able to report positive balances in all three categories of net
position: net investment in capital assets, restricted and unrestricted. The same situation held true for the prior
fiscal year.
The following table presents a condensed statement of the City's net position for the fiscal years ended June 30,
2021 and 2020.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2021
2020
2021
2020
2021
2020
Current assets
$ 542,856,043
$ 513,542,103
$ 318,881,326
$ 295,098,831
$ 861,737,369
$ 808,640,934
Capital assets, net
742,145,317
755,678,611
759,679,559
787,509,917
1,501,824,876
1,543,188,528
Long-term assets
—
—
74,142,431
78,760,749
74,142,431
78,760,749
Total assets
1,285,001,360
1,269,220,714
1,152,703,316
1,161,369,497
2,437,704,676
2,430,590,211
Total deferred outflows of resources
112,346,305
93,134,294
11,193,113
9,443,309
123,539,418
102,577,603
Total assets and deferred
outflows of resources
1,397,347,665
1,362,355,008
1,163,896,429
1,170,812,806
2,561,244,094
2,533,167,814
Current liabilities
83,422,091
55,896,207
40,175,076
39,535,670
123,597,167
95,431,877
Long-term liabilities
559,698,199
548,432,242
331,393,867
349,437,685
891,092,066
897,869,927
Total liabilities
643,120,290
604,328,449
371,568,943
388,973,355
1,014,689,233
993,301,804
Total deferred inflows of resources
16,667,670
27,331,136
1,801,034
3,754,051
18,468,704
31,085,187
Total liabilities and deferred
inflows of resources
659,787,960
631,659,585
373,369,977
392,727,406
1,033,157,937
1,024,386,991
Net position:
Net investment in capital assets
555,107,220
547,511,826
458,616,595
477,329,239
1,013,723,815
1,024,841,065
Restricted
189,214,016
191,839,529
32,154,205
33,750,526
221,368,221
225,590,055
Unrestricted
(6,761,531)
(8,655,932) 299,755,652
267,005,635
292,994,121
258,349,703
Total net position
$ 737,559,705
$ 730,695,423
$ 790,526,452
$ 778,085,400
$ 1,528,086,157 $ 1,508,780,823
$ (Millions)
Governmental Activities
Business-type Activities
Total assets and deferred outflows of
resources
Total liabilities and deferred inflows
of resources
Total net position
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
20
Changes in net position. The City’s total revenues for the fiscal year ended June 30, 2021 were $569.0 million.
The total cost of all programs and services was $543.3 million, which results in an increase in net position of $25.7
million. The following table presents a summary of the changes in net position for the fiscal years ended June 30,
2021 and 2020.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2021
2020
2021
2020
2021
2020
Revenues:
Program revenues
Charges for services
$ 66,789,357
$ 71,760,315
$ 140,364,223
$ 135,080,838
$ 207,153,580
$ 206,841,153
Operating grants and contributions
18,694,567
31,052,185
7,965,078
7,137,950
26,659,645
38,190,135
Capital grants and contributions
16,573,341
18,714,457
14,355,873
14,190,016
30,929,214
32,904,473
General revenues
Property taxes
36,371,978
34,419,182
—
—
36,371,978
34,419,182
Sales taxes
157,513,686
140,644,918
16,516
15,521
157,530,202
140,660,439
Highway user taxes
18,108,310
16,996,911
—
—
18,108,310
16,996,911
Other taxes
2,226,568
1,153,237
—
—
2,226,568
1,153,237
Franchise Fees
3,823,524
3,441,225
—
—
3,823,524
3,441,225
State shared revenues
80,699,253
70,769,943
—
—
80,699,253
70,769,943
Investment income
584,026
16,951,295
249,448
9,974,135
833,474
26,925,430
Miscellaneous
1,820,520
2,085,020
2,833,025
2,962,466
4,653,545
5,047,486
Total revenues
403,205,130
407,988,688
165,784,163
169,360,926
568,989,293
577,349,614
Expenses:
General government
162,849,542
138,850,297
—
—
162,849,542
138,850,297
Public safety
122,146,366
109,544,169
—
—
122,146,366
109,544,169
Transportation and development
58,847,053
59,777,330
—
—
58,847,053
59,777,330
Community services
39,565,719
38,195,563
—
—
39,565,719
38,195,563
Interest and fiscal charges
6,653,197
6,885,184
—
—
6,653,197
6,885,184
Water
—
—
62,049,102
60,330,758
62,049,102
60,330,758
Wastewater
—
—
62,753,454
66,788,084
62,753,454
66,788,084
Solid waste
—
—
17,040,309
16,522,728
17,040,309
16,522,728
Airport
—
—
2,186,724
2,382,288
2,186,724
2,382,288
Housing authority
—
—
9,207,531
8,710,570
9,207,531
8,710,570
Total expenses
390,061,877
353,252,543
153,237,120
154,734,428
543,298,997
507,986,971
Excess (deficiency) before transfers
13,143,253
54,736,145
12,547,043
14,626,498
25,690,296
69,362,643
Transfers in (out)
105,991
(891,991)
(105,991)
891,991
—
—
Change in net position
13,249,244
53,844,154
12,441,052
15,518,489
25,690,296
69,362,643
Beginning net position
724,310,461
676,851,269
778,085,400
762,566,911
1,502,395,861
1,439,418,180
Ending net position
$ 737,559,705
$ 730,695,423
$ 790,526,452
$ 778,085,400
$ 1,528,086,157
$ 1,508,780,823
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
21
Revenue Sources - Fiscal Year 2021
Charges for services 36.41%
Operating grants and contributions 4.68%
Capital grants and contributions 5.44%
Property taxes 6.39%
Sales taxes 27.69%
Highway user fees 3.18%
Franchise Fees 0.67%
Other taxes 0.39%
State shared revenues 14.18%
Investment income 0.15%
Miscellaneous 0.82%
Functional Expenses - Fiscal Year 2021
General government 29.97%
Public safety 22.48%
Transportation and development 10.83%
Community services 7.28%
Interest and fiscal charges 1.23%
Water 11.42%
Wastewater 11.55%
Solid waste 3.14%
Airport 0.40%
Housing authority 1.70%
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
22
As evidenced in the previous graph, the largest financing source for the City is charges for services at 36.41
percent, associated with the user fees and charges for services. Sales taxes and state shared revenues also
comprise a significant portion of the City’s revenues at 27.69 percent and 14.18 percent, respectively, of the total
revenues with property taxes accounting for an additional 6.39 percent of the City’s total revenues.
The City as a whole uses the largest amount of resources for general government functions at 29.97 percent of
the total functional expenses of the City. The next largest users of resources are public safety and wastewater at
22.48 percent and 11.55 percent, respectively, with water accounting for 11.42 percent of the City’s total
expenses.
Governmental activities. The increase in governmental net position totaled $13.2 million for the year ended
June 30, 2021 compared with an increase of $53.8 million in the prior year. The increase is primarily due to ARPA
grant funding and increases in sales taxes and state shared revenues.
Business-type activities. The increase in business-type net position totaled $12.4 million for the year ended
June 30, 2021 compared with an increase of $15.5 million in the prior year. This increase is primarily due to
increases in water service fee revenues, increased interest revenue and a reduction in long-term liabilities.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s
financing requirements. Fund balances are reported on a hierarchy of five classifications based on spending
constraints in order to provide better consistency and clarification. These classifications include nonspendable,
restricted, committed, assigned and unassigned. The spendable balances are the restricted, committed,
assigned and unassigned fund balances. Additional information on fund balances and their classifications can be
found in Note 9 of the financial statements.
The financial performance of the City as a whole is reflected in its governmental funds. As the City completed the
year, its governmental funds reported a combined fund balance of $423.1 million, an increase of $7.8 million in
comparison with the prior year increase of $49.5 million. Approximately $232.6 million (55.0 percent) of this
amount is combined assigned and unassigned balances, all which may be spent at the City’s discretion. The total
compared to the prior years’ assigned and unassigned balances of $222.5 million represents an increase of
$10.1 million.
The remainder of the fund balance comprising of nonspendable and restricted balances amounts to $190.5
million (45.0 percent of the total fund balance). The nonspendable balance consists of inventories and prepaid
amounts. The restricted balance is constrained for specific purposes imposed by external parties or enabling
legislation. The total compared to the prior years’ nonspendable and restricted balances of $192.8 million
represents a decrease of $2.3 million. This decrease is primarily due to the continued spending of bond
proceeds in the community services and streets capital projects funds.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
23
The general fund is the chief operating fund of the City. At the end of the current fiscal year, assigned and
unassigned fund balance of the general fund was $239.8 million, while total fund balance reached $242.6
million. As a measure of the general fund’s liquidity, it may be useful to compare both assigned and unassigned
fund balance and total fund balance to total fund expenditures. Assigned and unassigned fund balance
represents 1.04 coverage of total annual general fund expenditures. The amount of fund balance is well above
the City’s contingency reserve financial policy, allowing the funding of other reserves (e.g., economic
development, capital projects and compensated absences). The City’s general fund balance increased by $9.7
million during the current fiscal year primarily due to ARPA grant funding and increases in sales taxes and state
shared revenues.
The general obligation bonds debt service fund accounts for the accumulation of resources for and payments of
general obligation bonded debt. The fund balance restricted for general obligation debt service payments
increased by $1.1 million during the current fiscal year. The increase is due to reduced expenditures for the year
ended June 30, 2021.
Proprietary funds. The City’s proprietary funds, which include enterprise and internal service funds, provide the
same type of information found in the government-wide financial statements, but in more detail. Net position
for the enterprise funds and the internal service funds at the end of the fiscal year amounted to $790.5 million
and $33.4 million, respectively, compared to $778.1 million and $44.9 million in the prior fiscal year. The
enterprise funds increase is primarily due to an increases in water and wastewater service fee revenues and
investment revenues and a reduction in long-term liabilities.
The enterprise funds net position is 37.9 percent unrestricted compared to 34.3 percent in the prior fiscal year.
Unrestricted net position of the water fund at the end of the year amounted to $152.0 million, and those for the
wastewater fund amounted to $127.6 million, compared to $139.8 million and $108.2 million in the prior fiscal
year.
BUDGETARY HIGHLIGHTS
For the 2020-21 budget year, the City of Chandler continued to engage in fiscally responsible budgeting
practices, adhered to financial policies, and used conservative budgeting as economic impacts of the COVID-19
pandemic and potential State legislative actions were unknown. With this conservative mindset, the City Council
adopted a balanced budget for 2020-21 that incorporated $20 million in revenue and expenditure reductions
from the pre-pandemic forecast, in anticipation of COVID-19 impacts. Overall planned capital expenditures
increased slightly as additional projects were added to address our aging infrastructure and one-time revenues
were applied to select capital projects and planned Public Safety Personnel Retirement System (PSPRS)
unfunded liability pay down. The City’s major sources of General Fund revenues include Local Sales Tax
(Transaction Privilege Tax), Voter Approved Local Revenue (formerly called State Shared Revenue) and Urban
Revenue Sharing (State Shared Income Tax). Reductions made in anticipation of COVID-19 impacted revenue
losses and the corresponding expenditure reductions slightly decreased the General Fund budget by 0.6 percent
from the previous year, while the total City budget increased slightly by 0.46 percent from 2019-20.
As has been the City’s practice, the budget and revenue forecast distinguished between ongoing and one-time
revenues and ensured related spending was also aligned. The City’s 2020-21 budget included various salary
adjustments based on agreements between bargaining units and the City, and merits for general employees.
Other ongoing costs, such as maintenance, utilities and supplies were managed closely to ensure they could be
covered with ongoing revenues.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
24
The actual COVID-19 impacts on revenue negatively impacted some specific Transaction Privilege Tax categories,
such as restaurants and bars, hotel/motels, and amusements, but the City saw shifts in that spending which
increased retail and other categories. Overall, the $20 million reduction in revenues did not come to fruition, as
revenues came in $41 million above budget. With vacant positions on hold for part of the year and expenditure
reduction measures in place, General Fund spending came in lower than anticipated, resulting in an increase to
the General Fund balance.
The FY 2020-21 budget continued to emphasize adherence to strong financial policies allowing the City Council
to maintain the General Fund contingency reserve at 15 percent of anticipated annual General Fund operating
revenue. And finally, the City Council continued the designated Budget Stabilization Reserve in the amount of
$10 million to provide the opportunity to utilize the reserve to balance the General Fund budget in the future for
no more than three consecutive years, should state legislation, operational changes in tax collections,
unexpected decreases in property values, or other economic conditions cause revenues to suddenly decrease.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. As of June 30, 2021, the City had invested $1.0 billion in capital assets net of related debt,
including buildings, facilities, vehicles, computers, equipment, water rights and infrastructure assets. Total
depreciation expense for the year was $102.6 million.
During fiscal year 2020-21, there were $42.9 million in water rights purchases recognized as a new asset from
construction in progress. These water rights grant the City 99 years worth of water usage per the purchase
agreement with the Gila River Indian Community. The purchase helps to diversify the City's water options to
ensure residents can have reliable and sustainable water options into the future. In addition, there were $4.3
million in updates to wastewater lines around the Price Road technology corridor that was completed during the
fiscal year. The City also completed several street projects on Queen Creek, Chandler Heights and Ocotillo
Roads adding an additional $29.9 million in governmental fund infrastructure assets. The Chandler Fire
Department added $5.3 million in new fire engines and emergency response vehicles to replace older models to
continue to provide the best public safety and emergency services possible to Chandler residents.
The following table presents capital asset balances net of accumulated depreciation for the fiscal years, ended
June 30, 2021 and 2020:
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2021
2020
2021
2020
2021
2020
Land
$
92,528,517
$
92,528,517
$
57,189,731
$
51,669,315
$ 149,718,248
$ 144,197,832
Land improvements
—
—
317,087
198,852
317,087
198,852
Infrastructure
341,516,567
336,308,826
—
—
341,516,567
336,308,826
System improvements
—
—
630,911,926
665,926,957
630,911,926
665,926,957
Buildings and improvements
176,774,747
189,978,030
8,049,845
8,931,001
184,824,592
198,909,031
Vehicles, machinery
and equipment
25,315,499
23,332,690
2,541,320
3,218,082
27,856,819
26,550,772
Water rights
—
—
42,645,949
—
42,645,949
—
Construction in progress
106,009,987
113,530,548
18,023,701
57,565,710
124,033,688
171,096,258
Total
$ 742,145,317
$ 755,678,611
$ 759,679,559
$ 787,509,917
$ 1,501,824,876
$ 1,543,188,528
Additional information on the City’s capital assets can be found in Note 4 of the financial statements.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
25
Long-term debt. At the end of the current fiscal year, the City of Chandler had total bonded debt outstanding of
$493.1 million in long-term debt outstanding with $40.2 million due within one year. The following table presents
a summary of the City’s outstanding long-term obligations for the fiscal years ended June 30, 2021 and 2020.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2021
2020
2021
2020
2021
2020
General obligation bonds
$ 195,164,000
$ 215,939,000
$
76,936,000
$
86,261,000
$ 272,100,000
$ 302,200,000
Revenue bonds
—
—
—
2,340,000
—
2,340,000
Excise tax revenue obligations
—
—
219,780,000
228,985,000
219,780,000
228,985,000
Special assessment bonds
1,245,000
1,830,000
—
—
1,245,000
1,830,000
Issuance premiums
17,548,988
19,789,672
22,960,376
25,623,807
40,509,364
45,413,479
Total bonds & obligations payable
$ 213,957,988
$ 237,558,672
$ 319,676,376
$ 343,209,807
$ 533,634,364
$ 580,768,479
Claims payable (as restated)
18,885,862
13,643,256
—
—
18,885,862
13,643,256
Landfill closure/post closure
—
—
4,340,000
4,340,000
4,340,000
4,340,000
Compensated absences
13,679,502
13,811,004
1,408,776
1,388,807
15,088,278
15,199,811
Net pension liability
293,981,374
275,257,904
22,238,502
18,637,376
316,219,876
293,895,280
Post employment benefits
56,105,261
47,361,614
6,898,722
5,751,113
63,003,983
53,112,727
Total long term liabilities
$ 596,609,987
$ 587,632,450
$ 354,562,376
$ 373,327,103
$ 951,172,363
$ 960,959,553
The City of Chandler’s total long term liabilities decreased by $9.8 million during the current fiscal year, as there
was no new bonded debt issued and principal payments occurred as scheduled. The City reported an increase in
pension liability of $22.3 million, post employment benefits of $9.9 million and principal repayments of $42.2
million.
State statutes currently limit the amount of general obligation debt a city may issue to 20 percent of its total
assessed valuation for water, sewer, artificial lighting, open space, parks, public safety and emergency services,
streets, transportation and recreational facilities. The current debt limitation for the City is $936.5 million. The
City has $277.1 million of outstanding general obligation debt for these purposes.
State statutes also currently limit the amount of general obligation debt a city may issue to 6 percent of its total
assessed valuation for all other purposes. The current debt limitation for the City is $281.0 million. The City has
$6.8 million of outstanding general obligation debt for this purpose.
As of year-end, the City’s current bond ratings on general obligation bonds were Aaa from Moody’s Investor
Services, AAA from Standard & Poor’s, and AAA from Fitch Ratings. Excise tax revenue obligation bonds were
rated Aa1 from Moody’s Investor Services, AAA from Standard & Poor’s and AAA from Fitch.
Additional information on the City’s long-term debt can be found in Note 5 of the financial statements.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
26
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Adopting a balanced budget for the next fiscal year (2021-22) required the combined efforts of citizens, the City
Council, Executive Leadership team, and staff members throughout the organization. As the financial impacts
anticipated during the FY 2019-20 budget year did not come to fruition, considerable thought and measured
change was incorporated into the Fiscal Year 2021-22 budget. The budget contains a variety of increases to
revenues and expenditures to roll-back the mitigation strategies used during the pandemic, and allows for a
continued focus on providing high service levels and quality infrastructure in a cost effective way.
This year again included diligent monitoring of legislative bills that could impact our ongoing revenues, as well as
focused review of expenditure impacts that could potentially cause higher costs if not contained. This included
the Public Safety Personnel Retirement System (PSPRS) rates and its unfunded liability, minimum wage
increases, retirement vacancies causing overtime in public safety, additional staff or contract needs, workers’
compensation self-insurance claims, fleet and equipment sustainability, aging infrastructure, and addressing
various capital needs under a higher construction cost environment.
Even though general economic conditions are anticipated to continue to show recovery, and even increase
during the budget year, the City is still conservative in its approach and continues to look for efficiencies to
manage expenditure growth. The budget increased from $931.3 million in 2020-21 to $1.058 billion (an increase
of 13.6 percent) in 2021-22, due to appropriation added for grant funding received at the end of FY 2020-21
through ARPA of $34.6 million in appropriation, as well as adding back in the reductions made in the prior year
due to COVID-19. With the addition of appropriation, the total operating budget is increasing from $387 million
to $412 million. The total new capital appropriation is decreasing from $151 million to $113 million, but still
shows that the City continues a healthy capital improvement program to ensure existing infrastructure is well
maintained and the needs of residents can be met.
With a 6.8 percent increase in Limited Property Values (including new growth), the City Council chose to reduce
the primary property tax rate from $0.2501 to $0.2426, and keep the secondary property tax rate at $0.87 per
$100 of assessed valuation. This planned rate reduction will help minimize the impact of higher values on
property owner’s tax payment.
The 2021-22 Budget includes anticipated bond sales as well as GO and ETRO refunding opportunities for
outstanding bonds. There is also a bond election in November 2021 to ensure bond authorization is sufficient to
meet capital needs as we continue our focus on ensuring strong debt management practices. Additionally, the
City Council maintained the General Fund operating contingency at 15 percent of General Fund operating
revenues to provide a buffer for emergencies or to support new opportunities such as unanticipated grants or
development agreements. Chandler continues maintaining and adhering to strong financial policies, has
updated the Pension Funding Policy to ensure ongoing focus on managing pension costs, and remains in a solid
financial position to continue its tradition of strong fiscal management as reflected by its AAA GO bond ratings
with all three rating agencies.
CONTACTING THE CITY’S FINANCE OFFICE
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a
general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. If
you have questions about this report or need additional information, contact the Management Services
Department, City of Chandler, P.O. Box 4008, MS 609, Chandler, AZ 85244-4008 or by calling (480) 782-2333.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2021
27
28
BASIC FINANCIAL STATEMENTS
29
City of Chandler
Statement of Net Position
June 30, 2021
Component Units
Total
Chandler Industrial
Chandler
Governmental
Business-Type
Primary
Development
Cultural
Activities
Activities
Government
Authority
Foundation
ASSETS
Current assets:
Equity in pooled cash and investments
$
505,734,514
$
298,156,657
$
803,891,171
$
—
$
—
Cash and investments
—
—
—
897,088
2,970,516
Accounts receivable
1,829,428
17,954,944
19,784,372
2,000
593
Privilege license tax receivable
17,530,447
—
17,530,447
—
—
Property taxes receivable
454,706
—
454,706
—
—
Due from other governments
10,445,890
83,056
10,528,946
—
—
Inventories
1,045,705
127,276
1,172,981
—
—
Prepaid items
5,933
—
5,933
—
87,729
Accrued interest receivable
972,409
541,673
1,514,082
—
7,325
Special assessments receivable
1,130,456
—
1,130,456
—
—
Notes receivable
448,503
—
448,503
—
—
Other receivables
3,258,052
2,017,720
5,275,772
—
—
Total current assets
542,856,043
318,881,326
861,737,369
899,088
3,066,163
Long-term assets:
Cash and investments - restricted
—
—
—
—
1,425,008
Notes receivable
—
154,750
154,750
—
—
Investment in joint venture
—
73,987,681
73,987,681
—
—
Capital assets:
Non-depreciable
198,538,504
75,213,432
273,751,936
—
—
Depreciable, net
543,606,813
684,466,127
1,228,072,940
—
17,152
Total capital assets
742,145,317
759,679,559
1,501,824,876
—
17,152
Total long-term assets
742,145,317
833,821,990
1,575,967,307
—
1,442,160
Total assets
1,285,001,360
1,152,703,316
2,437,704,676
899,088
4,508,323
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
104,821,414
5,487,123
110,308,537
—
—
Deferred amounts on refundings
7,524,891
5,705,990
13,230,881
—
—
Total deferred outflows of resources
112,346,305
11,193,113
123,539,418
—
—
30
LIABILITIES
Current liabilities:
Accounts payable
14,051,894
4,458,675
18,510,569
—
14,100
Accrued payroll
5,696,153
713,435
6,409,588
—
—
Trust liabilities and deposits
4,515,703
4,837,829
9,353,532
—
—
Accrued interest
3,895,093
6,214,637
10,109,730
—
—
Unearned revenue
18,351,460
—
18,351,460
—
665,775
Customer advances
—
781,991
781,991
—
—
Compensated absences payable
2,482,184
255,626
2,737,810
—
—
Bonds payable
22,245,684
22,818,437
45,064,121
—
—
Landfill closure and postclosure liability
—
94,446
94,446
—
—
Claims and judgements payable
12,183,920
—
12,183,920
—
—
Total current liabilities
83,422,091
40,175,076
123,597,167
—
679,875
Long-term liabilities:
—
Compensated absences payable
11,197,318
1,153,150
12,350,468
—
—
Bonds payable
191,712,304
296,857,939
488,570,243
—
—
Net pension liability
293,981,374
22,238,502
316,219,876
—
—
OPEB liability
56,105,261
6,898,722
63,003,983
—
—
Landfill closure and postclosure liability
—
4,245,554
4,245,554
—
—
Claims and judgements payable
6,701,942
—
6,701,942
—
—
Total long-term liabilities
559,698,199
331,393,867
891,092,066
—
—
Total liabilities
643,120,290
371,568,943
1,014,689,233
—
679,875
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
16,667,670
1,801,034
18,468,704
—
—
NET POSITION
Net investment in capital assets
555,107,220
458,616,595
1,013,723,815
—
17,152
Restricted for:
Transportation and development
122,816,807
—
122,816,807
—
—
Capital improvements
14,657,494
—
14,657,494
—
—
Community services
43,801,030
—
43,801,030
—
—
Community development
686,088
—
686,088
—
—
Debt service
5,798,057
32,154,205
37,952,262
—
—
Legal restrictions
1,454,540
—
1,454,540
—
1,425,008
Total restricted
189,214,016
32,154,205
221,368,221
—
1,425,008
Unrestricted
(6,761,531)
299,755,652
292,994,121
899,088
2,386,288
Total net position
$
737,559,705
$
790,526,452
$
1,528,086,157
$
899,088
$
3,828,448
See accompanying Notes to the Financial Statements.
31
City of Chandler
Statement of Activities
For the year ended June 30, 2021
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Function/Programs
Expenses
Services
Contributions
Contributions
Total
Primary government:
Governmental activities:
General government
$ 162,849,542 $ 42,011,670
$
9,332,515
$
5,447,340
$ 56,791,525
Public safety
122,146,366
5,073,984
6,731,394
—
11,805,378
Transportation and development
58,847,053
14,266,302
1,435,992
11,126,001
26,828,295
Community services
39,565,719
5,437,401
1,194,666
—
6,632,067
Interest on long-term debt
6,653,197
—
—
—
—
Total governmental activities
390,061,877
66,789,357
18,694,567
16,573,341
102,057,265
Business-type activities:
Water
62,049,102
58,755,999
—
5,755,850
64,511,849
Wastewater
62,753,454
61,971,940
—
8,600,023
70,571,963
Solid waste
17,040,309
17,480,050
—
—
17,480,050
Airport
2,186,724
893,268
—
—
893,268
Chandler housing authority
9,207,531
1,262,966
7,965,078
—
9,228,044
Total business-type activities
153,237,120
140,364,223
7,965,078
14,355,873
162,685,174
Total primary government
$ 543,298,997 $ 207,153,580 $ 26,659,645
$ 30,929,214
$ 264,742,439
Component units
Chandler Industrial Development
Authority
$
118,159
$
101,039
$
—
$
—
$
101,039
Chandler Cultural Foundation
465,309
87,730
423,631
—
511,361
Total component units
$
583,468
$
188,769
$
423,631
$
—
$
612,400
General revenues and transfers:
General revenues:
Property taxes, levied for general purposes
Sales taxes
Highway user taxes
Other taxes
Franchise fees
State shared revenues (unrestricted)
Investment income
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as restated
Net position - end of year
See accompanying Notes to the Financial Statements.
32
Net (Expense) Revenue
and Changes in Net Position
Primary Government
Component Units
Chandler Industrial
Chandler
Governmental
Business-Type
Development
Cultural
Activities
Activities
Total
Authority
Foundation
$
(106,058,017) $
—
$
(106,058,017) $
—
$
—
(110,340,988)
—
(110,340,988)
—
—
(32,018,758)
—
(32,018,758)
—
—
(32,933,652)
—
(32,933,652)
—
—
(6,653,197)
—
(6,653,197)
—
—
(288,004,612)
—
(288,004,612)
—
—
—
2,462,747
2,462,747
—
—
—
7,818,509
7,818,509
—
—
—
439,741
439,741
—
—
—
(1,293,456)
(1,293,456)
—
—
—
20,513
20,513
—
—
—
9,448,054
9,448,054
—
—
(288,004,612)
9,448,054
(278,556,558)
—
—
—
—
—
(17,120)
—
—
—
—
—
46,052
—
—
—
(17,120)
46,052
36,371,978
—
36,371,978
—
—
157,513,686
16,516
157,530,202
—
—
18,108,310
—
18,108,310
—
—
2,226,568
—
2,226,568
—
—
3,823,524
—
3,823,524
—
—
80,699,253
—
80,699,253
—
—
584,026
249,448
833,474
1,446
9,798
1,820,520
2,833,025
4,653,545
—
—
105,991
(105,991)
—
—
—
301,253,856
2,992,998
304,246,854
1,446
9,798
13,249,244
12,441,052
25,690,296
(15,674)
55,850
724,310,461
778,085,400
1,502,395,861
914,762
3,772,598
$
737,559,705
$
790,526,452
$
1,528,086,157
$
899,088
$
3,828,448
33
City of Chandler
Balance Sheet -
Governmental Funds
June 30, 2021
Major Funds
General
Obligation
Other
Bonds
Governmental
General
Debt Service
Funds
Total
ASSETS
Equity in pooled cash and investments
$ 220,381,553 $ 28,903,431
$ 203,997,258
$ 453,282,242
Accounts receivable
1,712,821
—
24,118
1,736,939
Privilege license tax receivable
17,530,447
—
—
17,530,447
Property taxes receivable
108,354
346,352
—
454,706
Advances to other funds
8,310,859
—
—
8,310,859
Due from other funds
2,163,778
—
—
2,163,778
Due from other governments
2,045,391
—
8,400,499
10,445,890
Inventories
1,045,705
—
—
1,045,705
Prepaid items
5,933
—
—
5,933
Accrued interest receivable
411,048
33,146
435,648
879,842
Special assessments receivable
—
—
1,130,456
1,130,456
Notes receivable
—
—
448,503
448,503
Other receivables
3,247,723
—
10,329
3,258,052
Total assets
$ 256,963,612 $ 29,282,929
$ 214,446,811
$ 500,693,352
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$ 3,465,504
$
—
$ 10,457,315
$ 13,922,819
Accrued payroll
5,465,927
—
176,607
5,642,534
Trust liabilities and deposits
4,202,064
—
313,639
4,515,703
Accrued interest
—
3,870,193
24,900
3,895,093
Due to other funds
—
—
2,163,778
2,163,778
Advances from other funds
—
—
8,310,859
8,310,859
Unearned revenue
1,154,492
—
17,094,751
18,249,243
Bonds payable
—
19,395,000
—
19,395,000
Total liabilities
14,287,987
23,265,193
38,541,849
76,095,029
Deferred inflows of resources
Unavailable revenues - special assessments
—
—
1,130,456
1,130,456
Unavailable revenues - property taxes
83,226
259,343
—
342,569
Total deferred inflows of resources
83,226
259,343
1,130,456
1,473,025
Fund balances:
Nonspendable
1,051,638
—
—
1,051,638
Restricted
1,711,242
5,758,393
182,001,083
189,470,718
Assigned
143,763,585
—
—
143,763,585
Unassigned
96,065,934
—
(7,226,577)
88,839,357
Total fund balances
242,592,399
5,758,393
174,774,506
423,125,298
Total liabilities, deferred inflows and fund balances
$ 256,963,612 $ 29,282,929
$ 214,446,811
$ 500,693,352
See accompanying Notes to the Financial Statements.
34
City of Chandler
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Position
June 30, 2021
Total Fund Balances - Total Governmental Funds
$ 423,125,298
Amounts reported for governmental activities in the Statement of Net Position
were reported differently because:
Capital assets used in governmental activities are not current financial
resources. Therefore, they were not reported in the Governmental Funds
Balance Sheet.
Non-depreciable
$ 198,538,504
Depreciable buildings, property, equipment and infrastructure, net
543,606,813
Total capital assets
742,145,317
Certain revenues are not available to pay for current period expenditures and,
therefore, are unavailable in the funds.
1,473,025
Deferred amounts on refundings are not financial resources and, therefore, are
not reported in the funds.
7,524,891
Deferred outflows related to pensions and OPEB are not financial resources
and, therefore, are not reported in the funds.
104,821,414
Deferred inflows related to pensions and OPEB represent a future acquisition
of net position that is not reported in the funds.
(16,667,670)
The internal service fund is used by management to charge the costs of certain
activities to individual funds. The assets and liabilities of the internal service
funds are included in governmental activities in the Government-wide
Statement of Net Position.
33,352,911
Long-term liabilities are not due and payable in the current period. Therefore,
they were not reported in the Governmental Funds Balance Sheet. Except for
the internal service funds amounts of $18,999,506 which are included above,
the long-term liabilities were adjusted as follows:
Bonds payable
(194,562,988)
Net pension liability
(293,981,374)
OPEB liability
(56,105,261)
Compensated absences
(13,565,858)
Total long-term liabilities
(558,215,481)
Net Position of Governmental Activities
$ 737,559,705
See accompanying Notes to the Financial Statements.
35
City of Chandler
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
For the year ended June 30, 2021
Major Funds
General
Other
Obligation Bonds
Governmental
General
Debt Service
Funds
Total
REVENUES:
Property taxes
$
8,127,805
$
28,281,540
$
—
$
36,409,345
Sales taxes
157,513,686
—
—
157,513,686
Highway user taxes
—
—
18,108,310
18,108,310
Regional transportation taxes
—
—
2,226,568
2,226,568
Franchise fees
3,823,524
—
—
3,823,524
State shared
80,699,253
—
—
80,699,253
Grants and entitlements
7,716,927
—
21,700,101
29,417,028
System development fees
143,436
—
8,064,292
8,207,728
Special assessments
—
—
587,020
587,020
Licenses and permits
6,656,737
—
—
6,656,737
Charges for services
19,138,480
—
492,909
19,631,389
Fines and forfeitures
2,853,783
—
66,390
2,920,173
Rentals
174,766
—
—
174,766
Contributions
—
—
5,201,737
5,201,737
Interest revenue
(81,690)
(80,955)
696,028
533,383
Miscellaneous
588,941
—
516,129
1,105,070
Total revenues
287,355,648
28,200,585
57,659,484
373,215,717
EXPENDITURES:
Current:
General government
64,203,179
—
29,279,663
93,482,842
Public safety
117,609,757
—
1,748,002
119,357,759
Transportation and development
17,493,321
—
14,147,245
31,640,566
Community services
28,237,838
—
846,243
29,084,081
Capital outlay
3,036,932
—
58,870,192
61,907,124
Debt service:
Principal
—
19,395,000
585,000
19,980,000
Interest and fiscal charges
—
7,740,385
61,500
7,801,885
Total expenditures
230,581,027
27,135,385
105,537,845
363,254,257
Excess (deficiency) of revenues over (under)
expenditures
56,774,621
1,065,200
(47,878,361)
9,961,460
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
1,876
—
223,205
225,081
Transfers in
—
—
44,961,787
44,961,787
Transfers out
(47,094,820)
—
(270,061)
(47,364,881)
Total other financing sources (uses)
(47,092,944)
—
44,914,931
(2,178,013)
NET CHANGE IN FUND BALANCE
9,681,677
1,065,200
(2,963,430)
7,783,447
FUND BALANCES:
Beginning of year
232,910,722
4,693,193
177,737,936
415,341,851
End of year
$
242,592,399
$
5,758,393
$
174,774,506
$
423,125,298
See accompanying Notes to the Financial Statements.
36
City of Chandler
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-wide Statement of Activities
For the year ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds
$ 7,783,447
Governmental activities in the Statement of Activities were reported differently
because:
Governmental funds report capital outlay as expenditures. However, in the
Government-wide Statement of Net Position and Statement of Activities, the cost of
those assets is allocated over their estimated useful lives as depreciation expense.
This is the amount of capital assets recorded and transferred in the current period.
39,931,139
Depreciation expense on capital assets is reported in the Government-wide
Statement of Net Position and Statement of Activities, but they do not require the
use of current financial resources. Therefore, depreciation expense is not reported
as an expenditure in the governmental funds.
(54,104,070)
Some items reported in the governmental funds are sources and uses of current
financial resources and therefore are not reported as revenues or expenses in the
Statement of Activities. These items include:
Principal payments on debt
19,980,000
Pension related items
4,097,710
Other post employment benefits obligation
(597,354)
23,480,356
Accrued interest payable related to long-term debt is recognized as an expense in
the Statement of Activities, however, it is not recognized in the governmental funds
because it is not payable from current financial resources.
1,148,688
Certain revenues in the Statement of Activities do not provide current financial
resources and therefore are not reported as revenues in the governmental funds.
(209,500)
Compensated absence expenses reported in the Statement of Activities do not
require the use of current financial resources and therefore are not reported as
expenditures in the governmental funds.
146,587
Certain revenues in the governmental funds that provide current financial
resources are not included in the Statement of Activities because they were
recognized in a prior period. However, other revenues that are unavailable in the
governmental funds because they do not provide current financial resources due
to unavailability are recognized in the Statement of Activities.
(568,545)
Capital assets contributed by developers to the City are not recorded in the
governmental funds as they do not provide current financial resources but are
recognized in the Statement of Activities as program revenues.
849,143
The internal service fund is used by management to charge the costs of certain
activities, such as insurance, to individual funds. The change in financial position of
the internal service fund is reported with governmental activities.
(5,208,001)
Change in Net Position of Governmental Activities
$ 13,249,244
See accompanying Notes to the Financial Statements.
37
City of Chandler
Statement of Net Position -
Proprietary Funds
June 30, 2021
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
ASSETS
Current assets:
Equity in pooled cash and investments
$
107,638,853 $
160,552,608 $
29,965,196 $
298,156,657 $
52,452,272
Accounts receivable
8,269,969
7,277,489
2,407,486
17,954,944
92,489
Due from other governments
—
—
83,056
83,056
—
Inventories
90,668
—
36,608
127,276
—
Accrued interest receivable
192,923
290,782
57,968
541,673
92,567
Other receivables
—
2,017,687
33
2,017,720
—
Total current assets
116,192,413
170,138,566
32,550,347
318,881,326
52,637,328
Long-term assets:
Notes receivable
—
—
154,750
154,750
—
Advances to other funds
3,900,000
—
—
3,900,000
—
Investment in joint venture
73,987,681
—
—
73,987,681
—
Capital assets:
Non-depreciable
15,232,052
32,514,332
27,467,048
75,213,432
—
Depreciable, net
221,486,104
436,145,250
26,834,773
684,466,127
—
Total capital assets
236,718,156
468,659,582
54,301,821
759,679,559
—
Total long-term assets
314,605,837
468,659,582
54,456,571
837,721,990
—
Total assets
430,798,250
638,798,148
87,006,918
1,156,603,316
52,637,328
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan
items
2,603,529
1,642,064
1,241,530
5,487,123
—
Deferred amounts on refundings
3,010,093
2,695,897
—
5,705,990
—
Total deferred outflow of resources
5,613,622
4,337,961
1,241,530
11,193,113
—
38
LIABILITIES
Current liabilities:
Accounts payable
1,627,197
1,471,537
1,359,941
4,458,675
129,075
Accrued payroll
286,908
303,644
122,883
713,435
53,619
Trust liabilities and deposits
4,013,493
148,703
675,633
4,837,829
—
Accrued interest
2,382,293
3,832,344
—
6,214,637
—
Unearned revenue
—
—
—
—
102,217
Customer advances
237,534
221,699
322,758
781,991
—
Compensated absences payable
129,614
82,456
43,556
255,626
20,622
Bonds payable
10,305,054
12,513,383
—
22,818,437
—
Landfill closure and postclosure liability
—
—
94,446
94,446
—
Claims and judgements payable
—
—
—
—
12,183,920
Total current liabilities
18,982,093
18,573,766
2,619,217
40,175,076
12,489,453
Long-term liabilities:
Compensated absences payable
584,707
371,965
196,478
1,153,150
93,022
Advances from other funds
—
3,900,000
—
3,900,000
—
Bonds payable
111,044,483
185,813,456
—
296,857,939
—
Net pension liability
11,045,216
6,209,485
4,983,801
22,238,502
—
OPEB liability
3,169,028
2,448,942
1,280,752
6,898,722
—
Landfill closure and postclosure liability
—
—
4,245,554
4,245,554
—
Claims and judgements payable
—
—
—
—
6,701,942
Total long-term liabilities
125,843,434
198,743,848
10,706,585
335,293,867
6,794,964
Total liabilities
144,825,527
217,317,614
13,325,802
375,468,943
19,284,417
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
916,611
431,590
452,833
1,801,034
—
NET POSITION
Net investment in capital assets
124,969,472
279,345,301
54,301,821
458,616,594
—
Restricted for:
Debt service
13,689,846
18,464,359
—
32,154,205
—
Unrestricted
152,010,416
127,577,245
20,167,992
299,755,653
33,352,911
Total net position
$
290,669,734 $
425,386,905 $
74,469,813 $
790,526,452 $
33,352,911
See accompanying Notes to the Financial Statements.
39
40
City of Chandler
Statement of Revenues, Expenses and Changes in Net Position -
Proprietary Funds
For the year ended June 30, 2021
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
OPERATING REVENUES:
Service fees
$
58,755,999
$
61,971,940
$ 18,373,518
$ 139,101,457
$
100,277
Grants and entitlements
—
—
7,965,078
7,965,078
—
Rentals
—
—
1,262,766
1,262,766
—
Sales taxes
—
—
16,516
16,516
—
Self insurance premiums
—
—
—
—
28,842,445
Miscellaneous
34,423
1,150
134,021
169,594
715,450
Total operating revenues
58,790,422
61,973,090
27,751,899
148,515,411
29,658,172
OPERATING EXPENSES:
General and administrative
3,470,121
3,040,261
1,135,651
7,646,033
551
Personnel services
9,953,735
7,969,420
4,066,147
21,989,302
2,361,299
Contractual services
9,382,064
4,956,193
13,840,045
28,178,302
2,659,801
Commodities
12,282,520
9,574,895
1,636,368
23,493,783
2,161,939
Claims expense
—
—
—
—
30,333,824
Housing assistance payments
—
—
5,475,829
5,475,829
—
Depreciation and amortization expense
17,095,917
29,089,066
2,280,524
48,465,507
—
Total operating expenses
52,184,357
54,629,835
28,434,564
135,248,756
37,517,414
OPERATING INCOME (LOSS)
6,606,065
7,343,255
(682,665)
13,266,655
(7,859,242)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
124,740
139,818
(15,110)
249,448
50,644
Interest and fiscal charges
(5,246,427)
(8,101,619)
—
(13,348,046)
—
Accretion of bond premiums
1,193,550
1,469,881
—
2,663,431
—
Gain (loss) on disposal of capital assets
—
(22,000)
—
(22,000)
—
Equity interest in joint venture
(4,618,318)
—
—
(4,618,318)
—
Total Nonoperating
revenues (expenses)
(8,546,455)
(6,513,920)
(15,110)
(15,075,485)
50,644
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
(1,940,390)
829,335
(697,775)
(1,808,830)
(7,808,598)
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Capital contributions
5,755,850
8,600,023
91,512
14,447,385
—
Transfers in
—
—
547,006
547,006
2,630,890
Transfers out
(349,859)
(260,273)
(134,377)
(744,509)
(30,293)
Total capital contributions and transfers
5,405,991
8,339,750
504,141
14,249,882
2,600,597
CHANGE IN NET POSITION
3,465,601
9,169,085
(193,634)
12,441,052
(5,208,001)
NET POSITION:
Beginning of year, as restated
287,204,133
416,217,820
74,663,447
778,085,400
38,560,912
End of year
$ 290,669,734
$ 425,386,905
$ 74,469,813
$ 790,526,452
$
33,352,911
See accompanying Notes to the Financial Statements.
41
City of Chandler
Statement of Cash Flows -
Proprietary Funds
For the year ended June 30, 2021
Governmental
Other
Activities:
Major Funds
Proprietary
Internal
Water
Wastewater
Funds
Total
Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
59,955,848
$
63,244,318
$
20,015,595
$ 143,215,761
$
29,731,651
Cash received from grantors
—
—
7,947,264
7,947,264
—
Cash payments to suppliers
(24,796,550)
(17,039,453)
(21,921,919)
(63,757,922)
(29,874,300)
Cash payments to employees for services
(9,883,349)
(7,822,558)
(4,002,576)
(21,708,483)
(2,344,317)
Net cash provided (used) by operating activities
25,275,949
38,382,307
2,038,364
65,696,620
(2,486,966)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
—
—
547,006
547,006
2,630,890
Transfers out
(349,859)
(260,273)
(134,377)
(744,509)
(30,293)
Net cash provided (used) by noncapital financing activities
(349,859)
(260,273)
412,629
(197,503)
2,600,597
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(5,502,226)
(12,142,703)
(871,700)
(18,516,629)
—
Principal paid on bond maturities
(9,345,660)
(10,605,569)
—
(19,951,229)
—
Interest paid on bonds
(5,452,481)
(8,346,816)
—
(13,799,297)
—
Cash received from capital contributions
5,160,606
7,146,259
—
12,306,865
—
Net cash provided (used) by capital and related financing activities
(15,139,761)
(23,948,829)
(871,700)
(39,960,290)
—
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
192,966
269,990
23,474
486,430
152,500
Net cash provided (used) by investing activities
192,966
269,990
23,474
486,430
152,500
Net increase (decrease) in cash and cash equivalents
9,979,295
14,443,195
1,602,767
26,025,257
266,131
CASH AND CASH EQUIVALENTS:
Beginning of year
97,659,558
146,109,413
28,362,429
272,131,400
52,186,141
End of year
$ 107,638,853
$ 160,552,608
$
29,965,196
$ 298,156,657
$
52,452,272
42
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
6,606,065
$
7,343,255
$
(682,665) $
13,266,655
$
(7,859,242)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
17,095,917
29,089,066
2,280,524
48,465,507
—
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
750,288
1,268,318
39,924
2,058,530
(13,133)
(Increase) decrease in due from other governments
—
—
(33,600)
(33,600)
—
(Increase) decrease in inventories
9,968
—
(29,118)
(19,150)
—
(Increase) decrease in other assets
—
—
(150,855)
(150,855)
—
Increase (decrease) in payables
328,187
531,896
195,092
1,055,175
39,209
Increase (decrease) in accrued payroll and compensated absences
12,946
101,465
39,265
153,676
16,982
Increase (decrease) in deposits
391,950
(18,733)
52,475
425,692
—
Increase (decrease) in claims payable
—
—
—
—
5,242,606
Increase (decrease) in unearned revenue
—
—
—
—
86,612
Increase (decrease) in customer advances
23,188
21,643
152,161
196,992
—
Increase (decrease) in net pension and OPEB items
(462,312)
(369,382)
(37,917)
(869,611)
—
Increase (decrease) in OPEB liability
519,752
414,779
213,078
1,147,609
—
Total adjustments
18,669,884
31,039,052
2,721,029
52,429,965
5,372,276
Net cash provided (used) by operating activities
$
25,275,949
$
38,382,307
$
2,038,364
$
65,696,620
$
(2,486,966)
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets from developers
$
595,244
$
1,453,764
$
—
$
2,049,008
$
—
Contributions of capital assets from city government
—
—
91,512
91,512
—
Gain (loss) on disposal of capital assets
—
(22,000)
—
(22,000)
—
Accretion of bond premiums
1,193,550
1,469,881
—
2,663,431
—
See accompanying Notes to the Financial Statements.
43
The City of Chandler (City) was incorporated on February 17, 1920. On May 25, 1964, voters ratified a City
charter providing for a Council-Manager form of government. The government of the City is operated by
authority of its charter, as limited by the state legislature. A seven-member council, including a separately
elected mayor, governs the City.
The following notes to the financial statements are an integral part of the City’s financial statements.
NOTE 1 - Summary of Significant Accounting Policies
The accounting policies and procedures of the City conform to accounting principles generally accepted in
the United States of America (GAAP) as applied to governmental entities. The Governmental Accounting
Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting
and financial reporting principles.
The more significant of the City’s accounting policies are described below.
A.
Reporting Entity
As required by GAAP, these financial statements present the City and its component units, i.e., entities for
which the City is considered to be financially accountable and/or exercise significant influence over
operations. Blended component units, although legally separate entities, are in substance part of the City’s
operations, and therefore data from these units are combined with data of the City. The City’s discretely
presented component units, on the other hand, are reported in a separate column in the basic financial
statements, to emphasize that they are legally separate from the City. The component units discussed below
are included in the City’s reporting entity because of the significance of their operational and/or financial
relationships with the City. Each component unit has a June 30 year-end.
1.
Blended Component Unit
The City of Chandler Municipal Property Corporation (Corporation) is a nonprofit corporation which
exists solely for the purpose of constructing or otherwise acquiring or equipping buildings, structures, or
improvements on land owned by the City for the benefit, common good, and general welfare of the City
and its citizens. The Chandler City Council appoints the five members of the Board, who are responsible
for approving the Corporation’s bond sales. Additionally, all bond sales must be submitted to and
approved by the City Council. All financial activities are reported within the enterprise funds of the City.
Unaudited financial statements for the Corporation are available from the City of Chandler,
Management Services Department, P.O. Box 4008, MS 702, Chandler, AZ 85244-4008.
2.
Discretely Presented Component Units
The component unit columns in the basic financial statements include the financial data of the Chandler
Industrial Development Authority (Authority) and the Chandler Cultural Foundation (Foundation).
The Authority is responsible for the issuance of tax-exempt bonds for qualified projects approved by the
Authority and the City Council. The Authority has a seven-member board of directors appointed by the
City Council. The City is able to impose its will on the Authority inasmuch as the City Council must vote to
ratify the actions of the Authority with regard to the issuance of bonds. The accounting records of the
Authority are maintained by the City and are available from the City of Chandler, Management Services
Department, P.O. Box 4008, MS 702, Chandler, AZ 85244-4008.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
44
NOTE 1 - Summary of Significant Accounting Policies, continued
The Foundation oversees the operations of the Chandler Center for the Arts for the selection and
scheduling of performances, other facility use, and general policy setting activities. The City is able to
significantly influence its operations. Specifically, the Foundation’s budget is annually reviewed and
approved by the City Council and the Foundation’s nine-member Board is appointed by the City Council.
Financial statements for the Foundation are available from the City of Chandler, Management Services
Department, P.O. Box 4008, MS 702, Chandler, AZ 85244-4008.
B.
Government-Wide and Fund Financial Statements
The government-wide financial statements (e.g., the Statement of Net Position and the Statement of
Activities) present financial information about the City as a whole. The reported information includes all of
the nonfiduciary activities of the City and its component units. For the most part, the effect of interfund
activity has been removed from these statements. These statements are to distinguish between the
governmental and business-type activities of the City. Governmental activities normally are supported by
taxes and intergovernmental revenues, and are reported separately from business-type activities, which rely
to a significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment
and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes, state shared revenues, investment income, and other items not
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are payments where the amounts are reasonably equivalent in
value to the interfund services provided, and other charges. Elimination of these charges would distort the
direct costs and program revenues reported.
C.
Measurement Focus, Basis of Accounting and Basis of Presentation
Government-wide Financial Statements - The government-wide financial statements are reported using
the economic resources measurement focus and the accrual basis of accounting, as are the proprietary
fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability
is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the
year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the grantor or provider have been met. 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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
45
NOTE 1 - Summary of Significant Accounting Policies, continued
Fund Financial Statements - Governmental fund financial statements are reported using the current
financial resources measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of the current
period. For this purpose, the City considers revenues to be available if they are collected within 60 days of
the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt service resources are provided during the current year for
payment of long-term debt principal and interest due early in the following year (not to exceed one month)
and, therefore, the expenditures and related liabilities have been recognized. Compensated absences and
claims and judgments are recorded only when payment is due.
Property taxes, sales taxes, franchise fees, licenses and permits, charges for services, special assessments
and investment income associated with the current fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Grants and similar awards are
recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. Miscellaneous revenues are not susceptible to accrual because generally they are not measurable until
received in cash.
Grants and similar awards received before the eligibility requirements are met are recorded as unearned
revenue. Cash receipts received in advance of being billed have also been reported as unearned revenue on
the governmental fund financial statements. Special assessments and delinquent property taxes have been
recorded as deferred inflows of resources. Grant and similar awards received more than 60 days after the
end of the current fiscal period have been recorded as deferred inflows of resources.
The City reports the following major governmental funds:
General Fund - This fund accounts for all financial resources of the City, except those required to be
accounted for in other funds.
General Obligation Bonds Debt Service Fund - This fund accumulates monies for the payment of principal
and interest requirements of the City’s tax supported general obligation bonds. Revenues for repayment are
generated from secondary property taxes.
The City reports the following major proprietary funds:
Water Fund - This fund is used to account for the provision of water services to the residents of the City and
certain county residents within the City’s municipal boundaries. All activities necessary to provide such
service are accounted for in this fund.
Wastewater Fund - This fund is used to account for the provision of wastewater services to the residents of
the City and certain county residents within the City’s municipal boundaries. All activities necessary to
provide such service are accounted for in this fund.
Additionally, the City reports the following fund type:
Internal Service Fund - Internal Service Funds are established to account for financing of goods and services
provided by one department or agency to other departments or agencies of the City on a cost
reimbursement basis. The Internal Service Fund consists of Self Insurance Funds that administer the City’s
self-insured property, liability, health, dental, short-term disability and workers’ compensation insurance
programs.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
46
NOTE 1 - Summary of Significant Accounting Policies, continued
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
City’s internal service fund are interfund transfers from the general fund for property and liability insurance
and charges to user departments for premiums related to health, dental, workers’ compensation and short-
term disability self-insurance. The principal operating revenues of the City’s enterprise funds are user fees
and charges to customers for water, wastewater, solid waste, airport services and public housing grants.
Operating expenses for these funds include the cost of sales and services, administrative expenses,
depreciation, claims and premiums. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted
resources first where allowable and then unrestricted resources as they are needed.
The focus of governmental fund financial statements is on major funds rather than reporting funds by type.
Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a
single column. Internal service funds are combined and the totals are presented in a single column on the
face of the proprietary fund statements.
D. Budgeting and Budgetary Control
The City Council formally adopts an annual operating budget for the general, special revenue, debt service,
capital projects, enterprise and internal service funds, excluding the special assessment bonds debt service
fund.
The level of control at which expenditures may not exceed budget is by department. Upon written request
by the City Manager, the City Council has the authority to transfer part or all of any unencumbered
appropriation balance from one department to another per City Charter requirement. The City Manager and
department heads have the authority to transfer appropriations between divisions and expenditure
categories within departments. Appropriations totaling $61,519,903 were transferred from the contingency
reserves within the general, special revenue, capital project and internal service funds.
All appropriations expire at the end of the fiscal year except for encumbered and capital improvements
carryforward appropriations. Encumbrance accounting, under which purchase orders, contracts and other
commitments for the future expenditure of funds are recorded in order to reserve that portion of the
related fund balance, is employed in the governmental and proprietary fund types. Encumbrances
outstanding at year-end are reported as part of restricted fund balance for governmental and proprietary
funds (excluding the general fund) unless a negative fund balance is reported. If negative, encumbrances
are reported as part of unassigned fund balance. Carryforwards for capital improvement projects are
reported as part of assigned fund balance at year-end and encumbrances in the general fund are reported
as part of unassigned fund balance. Significant encumbrances for the general fund are $10,677,781, for
water enterprise fund are $18,016,446, for wastewater enterprise fund are $16,212,607, and for non-major
governmental funds are $53,618,803.
The budgets are adopted on a basis differing from generally accepted accounting principles in that for
budgetary purposes: (1) current year encumbrances are treated as expenditures; (2) bond proceeds for
proprietary funds are considered revenue; (3) capital outlays for enterprise funds are treated as
expenditures; (4) debt service principal payments are treated as expenditures for enterprise funds; (5)
accrued compensated absences are not recognized as expenditures; (6) depreciation and amortization are
not recognized as expenditures; (7) estimated landfill closure and post closure costs are not recognized as
expenditures until incurred; (8) sales tax collected by merchants but not yet required to be remitted at the
end of the fiscal year is not recorded as revenue; and (9) investments are recorded at cost.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
47
NOTE 1 - Summary of Significant Accounting Policies, continued
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 August 28, 2018, the City of Chandler voters approved to continue under Home Rule for the
next four years.
E.
Pooled Cash and Investments
City Charter, Ordinance, and Trust Agreements authorize the City to invest in obligations guaranteed by the
full faith and credit of the United States of America, government sponsored enterprises, government bonds
with minimum credit ratings of Aa or AA, commercial paper with a minimum short-term rating of P1 or A1,
negotiable certificates of deposit, corporate bonds carrying a minimum credit rating of A, repurchase
agreements and the Local Government Investment Pool. The City of Chandler Municipal Property
Corporation is additionally authorized to invest in banker’s acceptances, U.S. Corporate obligations rated
Aa3 and AA or better, full faith and credit general obligations or special revenue bonds of any state or
political subdivision rated AAA and Aaa, Refcorp interest strips and money market funds.
Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and
participating interest investment contracts with a remaining maturity of one year or less at time of purchase
are stated at amortized cost. All other investments are stated at fair value.
Cash resources of the City are combined to form a pool of cash and investments. Excluded from this pool
are the cash and investments of the Chandler Health Care Benefits Trust, Workers’ Compensation and
Employer Liability Trust, Chandler Industrial Development Authority and the Chandler Cultural Foundation.
Interest earned on the pooled cash and investments is distributed each month on the basis of average
monthly equity in the pool.
F.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund
loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans).
The water, wastewater and solid waste enterprise funds use the direct write-off method for bad debts and
therefore do not have an allowance for uncollectible accounts. All other funds’ trade receivables are shown
net of an allowance for uncollectible accounts. Trade accounts receivable in excess of 90 days comprise the
trade accounts receivable allowance for uncollectible accounts.
Amounts due from other governments include receivables from other governmental entities including, but
not limited to federal, state, or county entities. At year-end the receivables included $4,896,741 due from the
federal government for grants and $4,223,132 due from the State of Arizona for shared revenues and
grants, $43,502 due from Maricopa County for grants and $1,365,571 due from other governmental
agencies.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
48
NOTE 1 - Summary of Significant Accounting Policies, continued
G. Inventories
Inventories are stated at average cost using the first-in/first-out (FIFO) method. Inventories are recorded as
expenses/expenditures when consumed in the government-wide financial statements and governmental
and proprietary fund financial statements, respectively.
H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items under the purchases method.
I.
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges,
sidewalks and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the City as assets with
an initial, individual cost of $10,000 or more and an estimated useful life of more than one year. Such assets
are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital
assets are recorded at acquisition value at the date of donation. The City defines general government
infrastructure capital assets included in capital improvement projects completed at year’s end in excess of
$100,000.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as
projects are completed.
Estimated useful lives for capital assets were determined based on the City’s historical experience and
various industry standards. Capital assets of the City are depreciated using the straight-line method over the
following estimated useful lives:
Assets
Years
Buildings
20-40
Building improvements
20
Infrastructure
12-50
Machinery and equipment
5-15
System improvements
25
Vehicles
4-7
Water rights
1-99
J.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position includes a separate section for deferred outflows of
resources. Deferred outflows of resources represent a consumption of net assets that applies to a future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The
City has two items that qualify for reporting in this category: the deferred charge on refunding reported in
the government-wide statement of net position and deferred amounts related to pension and OPEB. The
deferred charge on refunding resulted from the difference between the carrying value of the refunded debt
and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt. The deferred amounts related to pension and OPEB relate differences between
estimated and actual investment earnings, changes in actuarial assumptions and other pension and OPEB
related changes.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
49
NOTE 1 - Summary of Significant Accounting Policies, continued
In addition to liabilities, the statement of financial position includes a separate section for deferred inflows
of resources. Deferred inflows of resources represent an acquisition of net assets that applies to future
period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two
items that qualify for reporting in this category. Unavailable revenue is reported only in the governmental
funds balance sheet. The governmental funds report unavailable revenues from two sources: property taxes
and special assessments. These amounts are deferred and recognized as an inflow of resources in the
period that the amounts become available. In the government-wide financial statement the City reports
deferred amounts related to pension and OPEB.
K.
Compensated Absences
Vacation leave vests with the employee as it is earned dependent on accumulated time and the individual’s
vacation benefits associated with their rank within the City. All employees may carryforward only the
amount of vacation benefits equal to the maximum allowable earned credits for the preceding calendar
year. Upon termination or retirement, an employee will be compensated for accumulated vacation leave
dependent on accumulated time and the individual's vacation benefits associated with their rank within the
City. Payment will be based on the individual's rate of pay at termination or retirement. Upon death, the
same benefits shall be paid to the employee's beneficiary. The amount, including related benefits, for
accumulated vacation leave is reported on the government-wide and proprietary fund financial statements.
A liability for these amounts is reported in governmental funds only if they have matured, for example, as a
result of employee leave, resignations or retirements. Generally, resources from the general fund are used
to pay for compensated absences.
Sick leave benefits provided for ordinary sick pay are not vested with the employee. Upon retirement, an
employee will be compensated for 50 percent of accumulated sick leave. Payment will be based on the
monthly compensation paid to the employee at the time of retirement and paid into a Retirement Health
Savings Plan. Upon death, the same benefits shall be paid to the employee's beneficiary.
L.
Long-Term Obligations
In the government-wide financial statements and proprietary fund statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable governmental or business-type activities
and proprietary fund Statement of Net Position. Bond related items, such as premiums and discounts, are
deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are
expensed in the current period.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as
bond issuance costs, 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 issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
The debt service funds are specifically established to account for and service the long-term obligations for
the governmental funds and special assessment debt. Each enterprise fund individually accounts for and
services the applicable bonds and lease purchase obligations which benefit these funds. Long-term
obligations are recognized as a liability of a governmental fund when due or when resources have been
accumulated for payment early in the following year. For other long-term obligations, only the portion that is
expected to be financed from expendable available financial resources is reported as a fund liability of a
governmental fund.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
50
NOTE 1 - Summary of Significant Accounting Policies, continued
M. Fund Equity
In the fund financial statements, governmental funds report fund balances as nonspendable, restricted,
committed, assigned and unassigned. Nonspendable, restricted and committed classifications represent
“reserved” fund balances whereas assigned and unassigned classifications represent “unreserved” fund
balances (see Note 9).
N. Capital Contributions
Capital contributions, as shown in the enterprise funds, represent federal and state grants received,
subdividers’ costs of installing water mains, water service connections installed at the customers’ expense
and transfers of equipment from governmental funds. Capital contributions are shown as an inflow of
resources in both the government-wide and fund financial statements (see Note 8).
O. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of
resources related to pensions and pension expense, information about the pension plan’s fiduciary net
position and additions to/deductions from the plan’s fiduciary net position have been determined on the
same basis as they are reported by the plan. 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.
P.
Post-Employment Health Care and Life Insurance Benefits
In addition to providing pension benefits, the City allows for continuance of certain health care and life
insurance benefits for retired employees. Substantially all of the City's employees may become eligible for
those benefits if they are eligible to receive a retirement pension when leaving employment with the City.
The cost of retiree health care and life insurance premiums is borne both by the retiree and the specific
retirement plan under which they participated. There is no direct cost paid by the City.
Q. Statements of Cash Flows
The City considers all highly liquid investments (including restricted assets) with an original maturity of three
months or less to be cash equivalents. In the statements of cash flows, cash receipts and payments are
classified according to whether they stem from operating, noncapital financing, capital and related financing
or investing activities.
R.
Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as interfund
transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities.
Interfund transfers in the fund statements are reported as other financing sources/uses in governmental
funds and after non-operating revenues/expenses in proprietary funds.
S.
Use of Estimates
The preparation of the financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ from those estimates.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
51
NOTE 1 - Summary of Significant Accounting Policies, concluded
T.
Implementation of New Accounting Standards
During the year ended June 30, 2021, the City implemented the provisions of Governmental Accounting
Standards Board Statements No. 84 Fiduciary Activities and No. 90, Majority Equity Interests - an
amendment of GASB Statements No. 14 and No. 61 and early implemented the provision of Statement No.
98, The Annual Comprehensive Financial Report. GASB 84 improves guidance regarding the identification of
fiduciary activities for accounting and financial reporting purposes and how those activities should be
reported. GASB 90 improves the consistency and comparability of reporting a government's majority equity
interest in a legally separate organization and to improve the relevance of the financial statement
information for certain component units. GASB 98 established the term annual comprehensive financial
report and its acronym ACFR and replaces comprehensive annual financial report and its acronym.
NOTE 2 - Cash and Investments
The City maintains a cash and investment pool that is available for use by all funds, except for the Chandler
Industrial Development Authority, the Chandler Cultural Foundation and the Chandler Health Care Benefits
Trust. Each fund’s portion of this pool is displayed on the financial statements as Equity in Pooled Cash and
Investments. Pooled cash and investments are stated at fair value with accrued interest shown separately.
Restricted cash and investments are amounts held separately by trustees and amounts segregated due to
their source and future intent. In addition, the Industrial Development Authority, the Chandler Cultural
Foundation, the Chandler Health Care Benefits Trust and the Chandler Workers’ Compensation Employer
Liability Trust separately hold investments.
Deposits
At year-end, cash on hand was $46,865, the carrying amount of the City deposits was $31,267,782, and the
bank balance was $37,085,141. Of the bank balance, $250,000 was covered by federal depository insurance
and $36,835,141 was covered by collateral held in the pledging bank’s trust department in the City’s name.
In addition, at June 30, 2021, the City had $76,322,643 of restricted cash held by paying agent consisting of
$49,659,730 in July 1, 2021 debt service payments, $14,743,727 in unspent bond proceeds from the 2017
and 2019 Excise Tax Revenue Obligation issuances, and $11,919,186 from the 2017 and 2019 General
Obligation Bond issuances. The cash held by paying agent is in money market funds invested primarily in
short-term U.S. Treasury securities.
Fair Value Measurements. The City categorizes its fair value measurements within the fair value hierarchy
established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used
to measure the fair value of the asset.
•
Level 1 inputs are quoted prices in active markets for identical assets
•
Level 2 inputs are significant other observable inputs
•
Level 3 inputs are significant unobservable inputs
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
52
NOTE 2 - Cash and Investments, continued
At June 30, 2021, the City had the following investments and maturities:
Investment Maturities (in Years)
Investment Type
Category
Fair Value
Less than 1
Year
1-5 Years
Concentration
of
Credit Risk %
S&P/Moody/
Fitch
Credit Rating
U.S. Treasuries
Level 1
$ 308,771,593
$ 40,864,941
$ 267,906,652
44.37 %
U.S. Agencies:
Fannie Mae
Level 2
56,224,596
—
56,224,596
8.08
AA+/Aaa/AAA
Federal Farm Credit Banks
Level 2
13,159,907
—
13,159,907
1.89
AA+/Aaa/AAA
Federal Home Loan Bank
Level 2
9,645,742
—
9,645,742
1.39
AA+/Aaa/AAA
Freddie Mac
Level 2
81,933,956
—
81,933,956
11.77
AA+/Aaa/AAA
Commercial Paper:
—
Albion Cap Corp/LLC
Level 2
5,028,637
5,028,637
—
0.72
A-1/P-1
Corporate Bonds:
Adobe Inc Corp
Level 2
715,245
—
715,245
0.10
A/A2
Amazon.com Inc Corp
Level 2
4,239,458
—
4,239,458
0.61
AA/A1
American Honda Finance Corp
Level 2
2,091,364
229,216
1,862,148
0.30
A-/A3
Apple Inc Corp
Level 2
7,895,920
3,116,795
4,779,125
1.13
AA+/Aa1/NA
Bank of America Corp
Level 2
6,438,245
—
6,438,245
0.92
A-/A2/AA-
Bank of New York Mellon Corp
Level 2
8,365,156
—
8,365,156
1.20
A/A1/AA-
Caterpillar Finl Service
Level 2
4,795,432
1,510,422
3,285,010
0.69
A/A2/A
Charles Schwab Corp
Level 2
3,720,931
—
3,720,931
0.53
A/A2/A
Exxon Mobil Corp
Level 2
4,233,788
—
4,233,788
0.61
AA-/Aa2/NA
Hershey Company
Level 2
263,258
—
263,258
0.04
A/A1
John Deere Capital
Level 2
4,671,829
1,016,994
3,654,835
0.67
A/A2/A
JPMorgan Chase Bank
Level 2
8,164,019
—
8,164,019
1.17
A-/A2/AA-
Mastercard Inc Corp
Level 2
3,295,842
—
3,295,842
0.47
A+/A1
Metropolitan Life Global Funding I
Level 2
4,531,082
—
4,531,082
0.65
AA-/Aa3/AA-
National Rural Utilities Cooperative
Finance Corp
Level 2
2,988,510
—
2,988,510
0.43
A-/A2/A
New York Life Global Funding
Level 2
4,437,567
—
4,437,567
0.64
AA+/Aaa/AAA
Northern Trust Corp
Level 2
2,660,289
—
2,660,289
0.38
A+/A2/A+
Paccar Financial Corp
Level 2
3,369,597
3,369,597
—
0.48
A+/A1/NA
PNC Bank Na
Level 2
1,476,237
—
1,476,237
0.21
A/A2/A+
Toyota Motor Credit Corp
Level 2
2,156,917
—
2,156,917
0.31
A+/A1
Truist Financial Corp
Level 2
5,147,125
—
5,147,125
0.74
A-/A3/A
Unilever Capital Corp
Level 2
295,102
—
295,102
0.04
A+/A1
United Parcel Service
Level 2
2,711,606
2,711,606
—
0.39
A-/A2
US Bank Na
Level 2
4,283,904
—
4,283,904
0.62
A+/A1/A+
US Bankcorp
Level 2
3,131,445
3,131,445
—
0.45
A+/A1
Wal Mart Stores Inc
Level 2
2,256,501
—
2,256,501
0.32
AA/Aa2
Walt Disney Company
Level 2
172,556
—
172,556
0.02
BBB+/A2
Municipal Bonds:
AZ Tran Board TXBL REV Bonds
Level 2
1,584,898
—
1,584,898
0.23
AA+/Aa1
Scottsdale, AZ TXBL GO Bonds
Level 2
1,631,823
—
1,631,823
0.23
AAA/Aaa
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
53
NOTE 2 - Cash and Investments, continued
Investment Maturities (in Years)
Investment Type
Category
Fair Value
Less than 1
Year
1-5 Years
Concentration
of
Credit Risk %
S&P/Moody/
Fitch
Credit Rating
Asset Backed:
Allya 2019-3 A3
Level 2
2,097,050
—
2,097,050
0.30
AAA/Aaa/NA
Amxca 2019-2 A
Level 2
2,019,326
2,019,326
—
0.29
NA/Aaa/AAA
Bmwot 2019-A A3
Level 2
2,523,078
—
2,523,078
0.36
AAA/NA/AAA
Carmx 2019-2 A3
Level 2
676,194
—
676,194
0.10
AAA/NR
Carmx 2020-1 A3
Level 2
871,824
—
871,824
0.13
AAA/NR
Carmx 2021-1 A3
Level 2
484,423
—
484,423
0.07
AAA/NR
Carmx 2021-2 A3
Level 2
996,317
—
996,317
0.14
AAA/NR
CNH2001-A A3
Level 2
834,328
—
834,328
0.12
AAA/NR
Comet 2019-2 A
Level 2
2,034,430
—
2,034,430
0.29
AAA/NA/AAA
Copar 2019-1 A3
Level 2
2,608,974
—
2,608,974
0.37
AAA/Aaa/AAA
Fordo 2019-A A3
Level 2
1,781,539
—
1,781,539
0.26
NA/Aaa/AAA
Harot 2019-1 A3
Level 2
364,255
—
364,255
0.05
AAA/NR
Harot 2019-2 A3
Level 2
960,757
—
960,757
0.14
NR/Aaa
Harot 2021-1 A3
Level 2
829,227
—
829,227
0.12
NR/Aaa
Hart 2018-A A3
Level 2
3,149
—
3,149
—
AAA/Aaa
Hart 2020-A A3
Level 2
5,072,097
—
5,072,097
0.73
AAA/NA/AAA
Hart 2021-A A3
Level 2
639,829
—
639,829
0.09
AAA/NR
Hyundai Auto Receivables trust
Level 2
579,285
—
579,285
0.08
AAA/NR
Mbart 2018-1 A3
Level 2
478,295
—
478,295
0.07
AAA/Aaa/NA
Narot 2018-B A3
Level 2
398,921
—
398,921
0.06
AAA/Aaa
Narot 2019-A A3
Level 2
936,480
—
936,480
0.13
NR/Aaa
Narot 2019-B A3
Level 2
1,073,232
—
1,073,232
0.15
NR/Aaa
Narot 2021-A A3
Level 2
5,493,963
—
5,493,963
0.79
AAA/Aaa/NA
Sdart 2021-2 A3
Level 2
3,249,580
—
3,249,580
0.47
NA/Aaa/AAA
Taot 2020-A A3
Level 2
1,808,964
—
1,808,964
0.26
AAA/Aaa
Taot 2020-C A3
Level 2
1,503,692
—
1,503,692
0.22
AAA/Aaa/NA
Taot 2021-A A3
Level 2
2,298,181
—
2,298,181
0.33
NA/Aaa/AAA
Woart 2019-B A3
Level 2
3,673,077
—
3,673,077
0.53
AAA/NA/AAA
Money Market - Certificates of Deposit
Level 2
18,300,664
3,649,819
14,650,845
2.63
A-1/P-1
Money Market Fund
Level 1
55,019,398
55,019,398
—
7.90
AAAm/NR
Cash and cash equivalents
Level 1
153,275
153,275
—
0.02
AAA/Aaa/AAA
Total
$ 696,253,881
$ 121,821,471
$ 574,432,410
100.00 %
Investment Valuation Techniques. U.S. treasuries, agencies, money market, and equity securities classified in
Level 1 of the fair value hierarchy are valued using prices quoted in active markets for identical securities.
Governmental bonds, corporate bonds, other fixed income instruments, and international bonds classified
in Level 2 of the fair value hierarchy are valued based on significant other observable inputs, which may
include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted
prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted
prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatility,
prepayment speeds, loss severity, credit risks and default rates) or other market corroborated inputs.
Interest Rate Risk. In accordance with its investment policy, the City manages its exposure to declines in fair
values by limiting the maturities of its investment portfolio to five years.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
54
NOTE 2 - Cash and Investments, concluded
Credit Risk. The City’s investment policy allows for investments in obligations guaranteed by the full faith and
credit of the United States of America, government sponsored enterprises, government bonds with
minimum credit ratings of AA+ or Aaa, commercial paper with a minimum short-term rating of A-1 or P-1,
negotiable certificates of deposit, corporate bonds carrying a minimum credit rating of A-, repurchase
agreements and the Local Government Investment Pool. The City’s investment in U.S. Agencies, Corporate
Bonds and Money Market Funds were rated no lower than AAA, BBB+ and AAAm by Standard & Poor’s,
respectively, as of June 30, 2021.
Custodial Credit Risk - Investments. The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty to a transaction, the City will not be able to recover the value of its investments
or collateral securities that are in the possession of an outside party. To limit its exposure, the City's
investment policy requires all security transactions that are exposed to custodial credit risk to be processed
on a delivery versus payment (DVP) basis with the underlying investments held by a third party acting as the
City's agent separate from where the investment was purchased or by the trust department of the bank
where purchased, in the City's name.
Concentration of Credit Risk. The City’s investment policy does not allow for an investment in any one issuer
that is in excess of five percent of the City’s total investments. Securities issued by the United States of
America or its agencies are exempt from this provision. More than 5 percent of the City’s investments are in
U.S. Agencies, U.S. Treasuries and Money Market Funds. See percentages in table on preceding pages.
NOTE 3 - Property Taxes
The City’s property tax is levied and collected by the Maricopa County Treasurer. Property taxes are levied
on or before the third Monday in August. The levy is based upon the January 1 limited property tax value of
property as determined by the Maricopa County Assessor. Under Arizona Revised Statutes (A.R.S.), two
assessed valuations are used. One is for primary taxes (used to fund operating expenditures) and the other
is for secondary taxes (used to meet general obligation debt service requirements). Taxes are due in two
equal installments on October 1 and March 1 following the levy date and are delinquent on the first day of
November and May, respectively. Delinquent amounts bear interest at the rate of 16 percent.
The City also levies various personal property taxes during the year, which are due the second Monday of
the month following receipt of the tax notice, and become delinquent 30 days thereafter.
Pursuant to A.R.S. a lien against assessed real and personal property attaches on the first day of January
preceding assessment and levy; however according to case law, an enforceable legal claim to the asset does
not arise.
The State Constitution and State law specify a property tax levy limitation system. The system consists of
two levies, a limited levy known as the primary property tax levy and an unlimited levy referred to as the
secondary levy, which may only be used to retire bonded indebtedness. There is also a control on the
assessed value of property for primary tax purposes. The base year for the tax system is fiscal year 1979-80.
From this base year, two assessed values evolve. The primary assessed values are allowed to increase by no
more than 5 percent a year. The dollar amount of the secondary property tax levy is "unlimited" and the
actual limited property value of property is used in determining the tax rate.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
55
NOTE 3 - Property Taxes, concluded
The primary tax levy is limited to an increase of 2 percent over the previous year's maximum allowable
primary levy, plus an increased dollar amount because of a net gain in property not taxed the previous year.
Also, the primary property tax from all taxing jurisdictions for homeowners may not exceed 1 percent of the
market value of their homes. If the combined primary property tax (for the City, County, School District, etc.)
exceeds 1 percent of the market value of the homes, the school districts will reduce their rate until the
homeowners' aggregate rate is equal to or less than the allowable 1 percent. The State will then subsidize
the school districts for the reduced revenue. This 1 percent limitation applies to primary property taxes only
and does not affect the secondary property tax levy.
In fiscal year 2020-21, current property tax collections were $36,040,967 or 99 percent of the tax levy, and
were recognized as revenue when received. At fiscal year end, the delinquent property tax expected to be
collected within 60 days is recognized as revenue and recorded as a receivable. Property taxes levied in
August 2021 are not available for fiscal year 2020-21; accordingly, such taxes will not be recognized as
revenue until fiscal year 2021-22.
NOTE 4 - Capital Assets
A summary of changes in capital assets for governmental activities is as follows:
Balance
Balance
Governmental Activities
June 30, 2020
Additions
Retirements
June 30, 2021
Capital assets, not being depreciated:
Land
$
92,528,517
$
—
$
—
$
92,528,517
Construction in progress
113,530,548
36,018,096
(43,538,657)
106,009,987
Total capital assets not being depreciated
206,059,065
36,018,096
(43,538,657)
198,538,504
Capital assets, being depreciated:
Infrastructure
743,147,645
32,799,025
—
775,946,670
Building and improvements
410,009,123
5,427,208
—
415,436,331
Machinery and equipment
96,956,739
10,075,340
(5,956,668)
101,075,411
Total capital assets being depreciated
1,250,113,507
48,301,573
(5,956,668)
1,292,458,412
Less accumulated depreciation for:
Infrastructure
(406,838,819)
(27,591,284)
—
(434,430,103)
Building and improvements
(220,031,093)
(18,630,491)
—
(238,661,584)
Machinery and equipment
(73,624,049)
(7,882,295)
5,746,432
(75,759,912)
Total accumulated depreciation
(700,493,961)
(54,104,070)
5,746,432
(748,851,599)
Total capital assets, being depreciated, net
549,619,546
(5,802,497)
(210,236)
543,606,813
Governmental activities capital assets, net
$
755,678,611
$
30,215,599
$
(43,748,893) $
742,145,317
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
56
NOTE 4 - Capital Assets, continued
Construction in progress in the governmental activities capital assets is comprised of the following:
Expended to
Remaining
June 30, 2021
Commitments
Streets
$
43,178,596
$
18,110,647
Parks and recreation
8,837,804
1,679,519
Buildings and related improvements
53,993,587
10,482,847
Total
$
106,009,987
$
30,273,013
A summary of changes in capital assets for business-type activities is as follows:
Balance
Balance
Business-Type Activities
June 30, 2020
Additions
Retirements
June 30, 2021
Capital assets, not being depreciated:
Land
$
51,669,315
$
5,520,416
$
—
$
57,189,731
Construction in progress
57,565,710
13,616,690
(53,158,699)
18,023,701
Total capital assets not being depreciated
109,235,025
19,137,106
(53,158,699)
75,213,432
Capital assets, being depreciated:
System improvements
1,389,863,970
11,206,434
—
1,401,070,404
Building and improvements
26,345,403
93,136
—
26,438,539
Vehicles, machinery and equipment
20,224,800
346,217
(83,290)
20,487,727
Water rights
—
42,860,250
—
42,860,250
Land improvements
2,495,534
172,703
—
2,668,237
Total capital assets being depreciated
1,438,929,707
54,678,740
(83,290)
1,493,525,157
Less accumulated depreciation for:
System improvements
(723,937,013)
(46,221,465)
—
(770,158,478)
Buildings and improvements
(17,414,402)
(974,292)
—
(18,388,694)
Vehicles, machinery and equipment
(17,006,718)
(1,000,979)
61,290
(17,946,407)
Water rights
—
(214,301)
—
(214,301)
Land improvements
(2,296,682)
(54,468)
—
(2,351,150)
Total accumulated depreciation
(760,654,815)
(48,465,505)
61,290
(809,059,030)
Total capital assets, being depreciated, net
678,274,892
6,213,235
(22,000)
684,466,127
Business-type activities capital assets, net
$
787,509,917
$
25,350,341
$
(53,180,699) $
759,679,559
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
57
NOTE 4 - Capital Assets, concluded
Construction in progress in the business-type activities capital assets is comprised of the following:
Expended to
Remaining
June 30,
2021
Commitments
Sewer system improvements
$
7,863,976 $ 15,384,893
Water system improvements
9,730,210
12,299,108
Solid waste system improvements
215,095
64,543
Airport improvements
214,420
359,552
Total
$
18,023,701
$ 28,108,096
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government
$
8,397,075
Public safety
7,272,663
Community services
10,491,842
Transportation and development
27,942,490
Total depreciation expense - governmental activities
$ 54,104,070
Business-type activities:
Water
$ 17,095,915
Wastewater
29,089,066
Solid waste
611,341
Airport
1,071,710
Chandler housing authority
597,473
Total depreciation expense - business-type activities
$ 48,465,505
Projects are reported as construction in progress when initially identified. Throughout the life of the project,
it may be determined that the project does not meet the requirements for capitalization. Once a project is
determined to not meet the requirements for capitalization it is removed from construction in progress. As
a result, deletions and transfers out from construction in progress may be more than what is reported as
additions and transfers in to depreciable capital assets.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
58
NOTE 5 - Long-Term Liabilities
A.
General Obligation Bonds
The City issues general obligation bonds to provide funds for the acquisition and construction of major
capital facilities. General obligation bonds have been issued for both governmental and business-type
activities. Bonds issued for business-type activities are reported in the enterprise funds as they are to be
repaid from enterprise revenues. In addition, general obligation bonds have been issued to refund other
general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit
of the City. These bonds are generally issued as 10 to 15 year serial bonds, except for refunding issues, with
varying amounts of principal maturing each year. The City has pledged future ad valorem tax revenues and
net enterprise revenues to repay a total of $321,869,128 in outstanding general obligation bonds and are
payable through July 1, 2035. Proceeds of the bonds were used for governmental and business-type
activities.
Governmental Activities General Obligation Bonds
Annual principal and interest payments on the government activities bonds were approximately 79 percent
of total ad valorem taxes. The total principal and interest remaining to be paid on the governmental
activities portion of the bonds is $231,642,858. Principal and interest paid for the current year and total ad
valorem property taxes were $28,943,382 and $36,409,345 respectively.
General obligation bonds outstanding as reported in governmental and business-type activities at June 30,
2021 were as follows:
Outstanding
Governmental Activities General Obligation Bonds:
June 30, 2021
$214,540,000 Refunding Bonds, Series 2014, due in annual installments of
$10,370,000 to $16,210,000 through 7/1/28; interest at 3 percent to 5 percent.
$
96,099,000
$39,050,000 Refunding Bonds, Series 2016, due in annual installments of
$4,980,000 to $15,465,000 beginning 7/1/25 through 7/1/27; interest at 3 percent
to 5 percent.
25,500,000
$58,740,000 Capital Improvement Bonds, Series 2017, due in annual installments
of $3,075,000 to $4,160,000 through 7/1/32; interest at 2.3 percent to 4 percent.
43,165,000
$30,400,000 Capital Improvement Bonds, Series 2019, due in annual installments
of $1,000,000 to $2,325,000 through 7/1/35; interest at 2.3 percent to 4 percent.
30,400,000
Total Governmental Activities General Obligation Bonds
$
195,164,000
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
59
NOTE 5 - Long-Term Liabilities, continued
Business-Type Activity General Obligation Bonds
Annual principal and interest payments on the business-type activities bonds were approximately 21
percent of net water and wastewater system revenues. The total principal and interest remaining to be paid
on the business-type activities portion of the general obligation bonds is $90,226,270. Principal and interest
paid for the current year and total net water system, wastewater system revenues were $12,764,575 and
$59,876,984 respectively.
Outstanding
Business-Type Activities General Obligation Bonds:
June 30, 2021
$214,540,000 Refunding Bonds, Series 2014, due in annual installments of
$6,895,000 to $11,036,000 through 7/1/28; interest at 3 percent to 5 percent.
$
63,386,000
$39,050,000 Refunding Bonds, Series 2016, due in annual installments of
$2,395,000 to $8,650,000 beginning 7/1/25 through 7/1/27; interest at 3 percent
to 5 percent.
13,550,000
Total Business-Type Activities General Obligation Bonds
$
76,936,000
B.
Excise Tax Revenue Obligations
Excise tax revenue obligations are issued to provide funds to acquire and construct certain improvements to
the water and sewer systems of the City and to pay the costs incurred in connection with the issuance of the
obligations. The City has collateralized the obligations by the pledge of all unrestricted excise taxes
(transaction privilege tax, franchise fees, state-shared sales and income taxes and fees for licenses and
permits) including all fines and forfeitures, which the City presently or in the future imposes or receives from
other entities and which are not earmarked by the contributor for a contrary or inconsistent purpose.
The City agrees that, so long as any of the obligations remain outstanding and their principal and interest
are unpaid, it will not further encumber the excise taxes unless the excise taxes received by the City in the
immediately preceding fiscal year are at least three times the highest combined debt service for the current
or any succeeding fiscal year for all outstanding parity obligations, including the additional parity obligations
proposed be secured by a pledge of the same excise taxes. The City does have the right to incur additional
parity obligations payable from and secured by the excise taxes on parity with the obligations.
Annual principal and interest payments on the obligations are being repaid from net water and wastewater
system revenues and were less than 31% percent of net system revenues. The total principal and interest to
be paid on the obligations is $287,436,188. Principal and interest paid for the current year and net water
and wastewater system revenues were $18,599,151 and $60,098,730 respectively. Total excise tax revenues
during the fiscal year were $251,546,983. Principal and interest payments were approximately 7 percent of
total excise tax revenues.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
60
NOTE 5 - Long-Term Liabilities, continued
Outstanding
Business-Type Activities Excise Tax Revenue Obligations:
June 30, 2021
$15,000,000 Water & Sewer Excise Tax Revenue Obligations, Series 2011, due in
annual installments of $835,000 to $905,000 through 7/1/22; interest at 3
percent to 4 percent.
$
1,775,000
$104,500,000 Water & Sewer Excise Tax Revenue Obligations, Series 2013, due
in annual installments of $3,100,000 to $12,000,000 through 7/1/33; interest at
4 percent to 5 percent.
94,300,000
$66,660,000 Water & Sewer Excise Tax Revenue Obligations, Series 2015, due in
annual installments of $2,635,000 to $5,620,000 through 7/1/35; interest at 3
percent to 5 percent.
58,610,000
$19,510,000 Water & Sewer Excise Tax Revenue Refunding Obligations, Series
2016, due in annual installments of $1,180,000 to $3,050,000 7/1/20 through
7/1/28; interest at 4 percent to 5 percent.
18,330,000
$36,220,000 Water & Sewer Excise Tax Revenue Obligations, Series 2017, due in
annual installments of $775,000 to $4,045,000 through 7/1/37; interest at 3
percent to 5 percent.
34,445,000
$13,000,000 Water & Sewer Excise Tax Revenue Obligations, Series 2019, due in
annual installments of $1,270,000 to $1,765,000 through 7/1/28; interest at 5
percent.
12,320,000
Total Business-Type Activities Excise Tax Revenue Obligations
$
219,780,000
C.
Special Assessment Bonds with Governmental Commitment
As trustee for improvement districts, the City is responsible for collection of assessments levied against the
owners of property within the improvement districts and for disbursement of these amounts for retirement
of the respective bonds issued to finance the improvements. At June 30, 2021, the special assessments
receivable, 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 related interest.
Special assessment bonds are collateralized by properties within the districts. In the event of default by the
property owner, the City may enforce an auction sale to satisfy the debt service requirements of the bonds.
The City is contingently liable on special assessment bonds to the extent that proceeds from auction sales
are insufficient to retire outstanding bonds.
Special assessment bonds payable with governmental commitment outstanding as reported in
governmental activities at June 30, 2021 were as follows:
Outstanding
Special Assessment Bonds with Governmental Commitment:
June 30, 2021
$7,370,000 Spectrum Improvement District Bonds, due in annual installments of
$585,000 to $635,000 through 1/1/23; interest at 4 percent.
$
1,245,000
Total Special Assessment Bonds with Governmental Commitment
$
1,245,000
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
61
NOTE 5 - Long-Term Liabilities, continued
Changes in Long-Term Liabilities
Balance
Balance
Due within
Governmental Activities:
June 30, 2020
Additions
Reductions
June 30, 2021
One Year
Compensated absences
$ 13,811,004
$
1,727,342
$
(1,858,844) $ 13,679,502
$
2,482,184
Bonds payable:
General obligation bonds
215,939,000
—
(20,775,000) 195,164,000
19,395,000
Special assessment bonds
1,830,000
—
(585,000)
1,245,000
610,000
Issuance premiums
19,789,672
—
(2,240,684)
17,548,988
2,240,684
Total bonds payable
237,558,672
—
(23,600,684) 213,957,988
22,245,684
Claims payable (as restated)
13,643,256
32,993,787
(27,751,181)
18,885,862
12,183,920
Net pension liability
275,257,904
18,723,470
—
293,981,374
—
OPEB liability
47,361,614
8,743,647
—
56,105,261
—
Totals
$ 587,632,450
$ 62,188,246
$ (53,210,709) $ 596,609,987
$ 36,911,788
Balance
Balance
Due Within
Business-Type Activities:
June 30, 2020
Additions
Reductions
June 30, 2021
One Year
Compensated absences
$
1,388,807
$
211,401
$
(191,432) $
1,408,776
$
255,626
Bonds & obligations payable:
General obligation bonds
86,261,000
—
(9,325,000)
76,936,000
9,525,000
Revenue bonds
2,340,000
—
(2,340,000)
—
—
Excise tax revenue obligations
228,985,000
—
(9,205,000) 219,780,000
10,630,000
Issuance premiums
25,623,807
—
(2,663,431)
22,960,376
2,663,437
Total bonds & obligations
payable
343,209,807
—
(23,533,431) 319,676,376
22,818,437
Net pension liability
18,637,376
3,601,126
—
22,238,502
—
OPEB liability
5,751,113
1,147,609
—
6,898,722
—
Landfill closure/post closure
4,340,000
—
—
4,340,000
94,446
Totals
$ 373,327,103
$
4,960,136
$ (23,724,863) $ 354,562,376
$ 23,168,509
Compensated Absences
The City’s policy relating to compensated absences is described in Note 1. The long-term portion of this debt
is expected to be paid in future years from future resources. Compensated absences for governmental
activities have been liquidated primarily by the general fund.
Statutory Debt Limitation
In the absence of more restrictive bond authorization ballot limitations, the City is subject to state
limitations on the amount of net bonded debt (exclusive of revenue bonds, excise tax revenue obligations,
and improvement district bonds) it may have outstanding. The statutory debt limitation is 20 percent of the
full cash property assessed valuation for purposes of water, wastewater, artificial light, acquisition and
development of land for open space preserves, recreation facilities, public safety and emergency services,
streets and transportation and 6 percent of the full cash property assessed valuation for all other purposes
(e.g., library, museum, center for the arts). At June 30, 2021, the 6 percent debt limitation was $280,953,536,
providing a debt margin of $274,194,030 and the 20 percent debt limitation was $936,511,789, providing a
debt margin of $659,438,047.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
62
NOTE 5 - Long-Term Liabilities, continued
Bond Covenants
Pursuant to certain bond indenture agreements, the City is obligated to various limitations and restrictions
on annual debt service requirements, maintenance and flow of monies through various restricted accounts,
minimum amounts to be maintained in various sinking funds, and minimum revenue bond coverages. The
City is in compliance with all such significant limitations and restrictions in the opinion of City’s
management.
Arbitrage
Arbitrage is the ability to obtain tax-exempt bond proceeds and invest the funds in higher yielding taxable
securities, resulting in a profit. The City monitors compliance with federal arbitrage regulations. Arbitrage
liability as of June 30, 2021 is $0.
Debt Service Requirements to Maturity
The following is a summary of debt service requirements to maturity for all bonds payable as of June 30,
2021:
GOVERNMENTAL ACTIVITIES
Years
General
General
Improvement
Improvement
Ended
Obligation
Obligation
Districts
Districts
June 30
Principal
Interest
Principal
Interest
Total
2022
$ 19,395,000
$
7,370,030
$
610,000
$
49,800
$ 27,424,830
2023
20,060,000
6,598,475
635,000
25,400
27,318,875
2024
20,860,000
5,702,900
—
—
26,562,900
2025
21,610,000
4,695,275
—
—
26,305,275
2026
20,820,000
3,790,525
—
—
24,610,525
2027-2031
73,934,000
7,465,438
—
—
81,399,438
2032-2036
18,485,000
856,215
—
—
19,341,215
Total
$ 195,164,000
$ 36,478,858
$
1,245,000
$
75,200
$ 232,963,058
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
63
NOTE 5 - Long-Term Liabilities, concluded
BUSINESS-TYPE ACTIVITIES
Years
General
General
Ended
Obligation
Obligation
Excise Tax
Excise Tax
June 30
Principal
Interest
Principal
Interest
Total
2022
$
9,525,000
$
3,120,630
$ 10,630,000
$
8,878,476
$ 32,154,106
2023
9,650,000
2,748,560
11,375,000
8,353,925
32,127,485
2024
9,555,000
2,316,685
11,940,000
7,781,975
31,593,660
2025
9,475,000
1,840,935
12,865,000
7,161,850
31,342,785
2026
9,290,000
1,430,235
13,515,000
6,502,350
30,737,585
2027-2031
29,441,000
1,833,225
78,505,000
22,609,375
132,388,600
2032-2036
—
—
75,110,000
6,184,487
81,294,487
2037-2041
—
—
5,840,000
183,750
6,023,750
Total
$ 76,936,000
$ 13,290,270
$ 219,780,000
$ 67,656,188
$ 377,662,458
NOTE 6 - Defeased Debt
Prior Year Defeasance
In prior years, the City defeased certain excise tax revenue obligations by placing the proceeds of new
bonds and obligations in an irrevocable trust to provide for all future debt service payments on the old
bonds or obligations. Accordingly, the trust account assets and the liability for the defeased bonds and
obligations are not included in the City’s financial statements.
Bonds and obligations that have been advance refunded (defeased) as of June 30, 2021:
Refunded Debt Outstanding
Amount
Excise Tax Revenue Obligations, Series 2011 (Final Redemption 7/1/21)
$ 6,450,000
NOTE 7 - Landfill Closure and Postclosure Costs
State and federal laws and regulations require the City to place a final cover on its landfill site when it stops
accepting waste and to perform certain maintenance and monitoring functions at the site for thirty years
after closure. In addition to operating expenses related to landfill activities through its closure date (October
1, 2005), an expense provision and related liability has been recognized based on the future closure and
postclosure care costs to be incurred near or after the date the landfill no longer accepts waste. The
recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used
during the year. As of June 30, 2021, the City estimates total costs related to landfill closure and postclosure
care is $16,333,635 and has recognized that entire amount since the landfill no longer accepts waste. To
date, $11,993,635 has been paid. The remaining balance of $4,340,000 consists of a current liability of
$94,446 and $4,245,554 recorded as a long-term liability on the City’s financial statements.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
64
NOTE 7 - Landfill Closure and Postclosure Costs, concluded
The estimated total current cost of the landfill closure and postclosure, $16,333,635, is based on the amount
that would be paid if all equipment, facilities and services required to care, monitor and maintain the landfill
were acquired as of June 30, 2021. However, the actual cost of closure and postclosure care may differ due
to inflation, deflation, changes in technology or changes in landfill laws and regulations. The City is required
by state and federal regulations to comply with local government financial test requirements that assure the
City can meet the costs of landfill closure, postclosure care and, if necessary, corrective action when needed.
The City complied with all local government financial test requirements for the year ended June 30, 2020. It
is anticipated that future inflation costs will be financed in part from earnings on investments. The
remaining portion of anticipated future inflation costs and any additional costs that might arise from
changes in postclosure requirements, i.e., due to changes in technology or more rigorous environmental
regulations, may need to be covered by additional charges to future taxpayers.
NOTE 8 - Capital Contributions
Capital contributions in the Water, Wastewater, Solid Waste, Airport, and Non-Major Governmental funds
are the result of system development fees, developer contributions and government contributions. Total
capital contributions amounted to the following:
System
Development
Developer
Government
Fees
Contributions
Contributions
Total
Water
$
5,160,606 $
595,244 $
— $
5,755,850
Wastewater
7,146,259
1,453,764
—
8,600,023
Airport
—
—
91,512
91,512
Total
$
12,306,865 $
2,049,008 $
91,512 $ 14,447,385
NOTE 9 - Fund Equity
In the fund financial statements, fund balances are reported in five classifications that comprise a hierarchy
based on spending constraints placed on the purposes for which resources can be used for better
consistency and clarification. The classifications of fund balance are explained below:
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 includes amounts constrained to specific purposes by their providers which are
either imposed 1) by external parties (grantors, bondholders and higher levels of government), 2) by law
through constitutional provisions or 3) by enabling legislation legally enforceable by external parties.
Committed fund balance includes amounts with self-imposed limitations to be used only for a specific
purpose pursuant to constraints by formal action of the highest level of decision making authority, namely
Mayor and Council. Mayor and Council approval is required to commit resources and amounts cannot be
used for any other purpose unless Mayor and Council take the same formal action to remove or change the
commitment.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
65
NOTE 9 - Fund Equity, continued
Assigned fund balance includes amounts intended to be used for a specific purpose. For the general fund,
the assigned fund balance must be for a specific purpose and for all other governmental funds the assigned
fund balance represents the residual balance of the fund. Fund balance assignments are approved through
the Annual Budget Fund Policies section by Mayor and Council. Unlike committed fund balances, assigned
fund balance amounts can be changed without formal action by the City Manager.
Unassigned fund balance includes amounts available for any purpose; these amounts are reported only in
the general fund. In addition, other governmental funds that result in a negative fund balance are presented
in this classification. Generally, the City would first apply restricted resources, then committed, assigned and
unassigned resources when an expense is incurred for purposes for which more than one classification of
fund balance is available.
As of June 30, 2021 the constraints placed on fund balance for the major governmental funds and other
non-major governmental funds are presented in the following table:
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
66
NOTE 9 - Fund Equity, concluded
General
Obligation
Bonds Debt
Other
General
Service
Governmental
Total
Nonspendable:
Inventories
$
1,045,705
$
—
$
—
$
1,045,705
Prepaid items
5,933
—
—
5,933
Total nonspendable
1,051,638
—
—
1,051,638
Restricted for:
Court enhancement
754,513
—
—
754,513
Judicial enhancement
487,896
—
—
487,896
Weapons proceeds
178,742
—
—
178,742
Citing agency
33,389
—
—
33,389
Smart and Safe AZ
256,702
—
—
256,702
Transportation and development
—
—
122,816,807
122,816,807
Debt service reserve
—
5,758,393
39,664
5,798,057
Community development
—
—
686,088
686,088
Community services
—
—
43,801,030
43,801,030
Other capital projects
—
—
14,657,494
14,657,494
Total restricted
1,711,242
5,758,393
182,001,083
189,470,718
Assigned to:
Domestic violence prevention
31,265
—
—
31,265
Self-insurance purposes
1,396,555
—
—
1,396,555
Traffic safety reserve
181,495
—
—
181,495
PSPRS contribution
27,500,000
—
—
27,500,000
Capital improvement projects
104,237,344
—
—
104,237,344
Economic development projects
5,552,400
—
—
5,552,400
ARPA related projects
4,864,526
—
—
4,864,526
Total assigned
143,763,585
—
—
143,763,585
Unassigned
96,065,934
—
(7,226,577)
88,839,357
Total unassigned
96,065,934
—
(7,226,577)
88,839,357
Total fund balances
$
242,592,399
$
5,758,393
$
174,774,506
$
423,125,298
The City’s General Fund Reserve Policy requires an amount equal to 15 percent of adopted General Fund
operating revenues, excluding one-time transfers in, for fiscal year 2020-21. This amounts to $38,826,300
and is included in unassigned above.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
67
NOTE 10 - Retirement and Pension Plans
The City of Chandler contributes to the pension plans described below. The City of Chandler also contributes
to the Elected Officials Retirement Plan and Other Post Employment Benefit (OPEB) plans; however the
plans are not described below because of its relative insignificance to the financial statements. The plans are
component units of the State of Arizona.
At June 30, 2021, the City of Chandler reported the following aggregate amounts related to pensions and
other postemployment benefits (OPEB) for all plans to which it contributes.
Pensions Plans
Governmental
Business-type
Activities
Activities
Total
Net pension liability
$ 293,981,374 $
22,238,502 $ 316,219,876
Pension deferred outflows of resources
94,539,170
4,163,399
98,702,569
Pension deferred inflows of resources
5,233,543
422,807
5,656,350
Pension expense
32,857,654
8,214,414
41,072,068
OPEB Plans
Governmental
Business-type
Activities
Activities
Total
Net OPEB liability
$
56,105,261 $
6,898,722 $
63,003,983
OPEB deferred outflows of resources
10,282,244
1,323,724
11,605,968
OPEB deferred inflows of resources
11,434,127
1,378,227
12,812,354
OPEB expense
2,810,662
368,901
3,179,563
The City of Chandler reported $43,087,452 and $1,853,451 of pension expenditures in its governmental and
enterprise funds, respectively, related to all pension plans to which it contributed in the current fiscal year.
Arizona State Retirement System
A.
Plan Description
The City of Chandler employees not covered by the other pension plans described after this section
participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-sharing multiple-
employer defined benefit pension plan, a cost-sharing multiple-employer defined benefit health insurance
premium benefit (OPEB) plan and a cost-sharing multiple-employer defined benefit long-term disability
(OPEB) plan. For governmental activities OPEB and pension liabilities are generally liquidated by the general
fund. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S.
Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its
financial statements and required supplementary information. The report is available on the ASRS website
at www.azasrs.gov.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
68
NOTE 10 - Retirement and Pension Plans, continued
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 months of last 120
Highest 60 months of last 120
months
months
Benefit percent per year of
2.1% to 2.3%
2.1% to 2.3%
service
*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 members’ 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.
C.
Contributions
In accordance with state statutes, annual actuarial valuations determine active member and employer
contribution requirements. The combined active member and employer contribution rates are expected to
finance the costs of benefits employees earn during the year, with an additional amount to finance any
unfunded accrued liability. For the current fiscal year, active ASRS members were required by statute to
contribute at the actuarially determined rate of 12.22 percent (12.04 percent for retirement and 0.18
percent for long-term disability) of the members’ annual covered payroll, and the City of Chandler was
required by statute to contribute at the actuarially determined rate of 12.22 percent (11.65 percent for
retirement, 0.39 percent for health insurance premium benefit, and 0.18 percent for long-term disability) of
the active members’ annual covered payroll.
In addition, the City of Chandler was required by statute to contribute at the actuarially determined rate of
10.21 percent of annual covered payroll of retired members who worked in positions that would typically be
filled by an employee who contributes to the ASRS.
The required contribution rate for the fiscal year ended June 30, 2021, was actuarially determined to yield
contribution amounts sufficient to finance costs earned by employees during the year and to amortize the
Plan’s unfunded actuarially accrued liability over the period specified in the statutes. The City of Chandler’s
contributions for the year ended June 30, 2021, were $9,267,255. The City of Chandler’s pension
contributions are paid by the same funds as the employee’s salary, with the largest component coming from
the general fund.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
69
NOTE 10 - Retirement and Pension Plans, continued
D. Pension Liability
At June 30, 2021, the City of Chandler reported a liability of $122,547,011 for its proportionate share of the
net pension liability of the ASRS. The net pension liability was measured as of June 30, 2020. 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, 2019, to the measurement date
of June 30, 2020. The City of Chandler’s proportion of the net pension liability was based on a projection of
the City of Chandler’s long-term share of contributions to the pension plan relative to the projected
contributions of all participating employers, actuarially determined. At June 30, 2020, the City of Chandler’s
proportion was 0.71 percent, which was a decrease of 0.01 percent from its proportion measured as of
June 30, 2019.
E.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2021, the City of Chandler recognized pension expense for ASRS of $9,510,959
and reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience
$
1,108,650 $
—
Net difference between projected and actual earnings
on pension plan investments
11,819,803
—
Changes in proportion and differences between
contributions and proportionate share of contributions
—
3,178,431
Contributions subsequent to the measurement date
9,267,255
—
Total
$
22,195,708 $
3,178,431
The deferred outflows of resources related to ASRS pensions resulting from contributions subsequent to the
measurement date as reported in the table above will be recognized as a reduction of the net pension
liability in the year ended June 30, 2022. 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:
Year Ending June 30:
2021
$(1,274,403)
2022
3,093,273
2023
4,275,349
2024
3,655,803
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
70
NOTE 10 - Retirement and Pension Plans, continued
F.
Actuarial Assumptions
The significant actuarial assumptions used to measure the total ASRS pension liability are as follows:
Actuarial valuation date
June 30, 2019
Actuarial roll forward date
June 30, 2020
Actuarial cost method
Entry age normal
Discount rate
7.5%
Projected salary increases
2.7 - 7.2%
Inflation
2.3%
Permanent base increases
Included
Mortality rates
2017 SRA Scale U-MP
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial
experience study for the five-year period ended June 30, 2016. The purpose of the experience study was to
review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the
experience study recommended changes which were applied to the June 30, 2017, actuarial valuation. The
study did not include an analysis of the assumed investment rate of return.
The long-term expected rate of return on ASRS pension plan investments was determined to be 5.48
percent 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 and by adding expected
inflation.
The target allocation and best estimates of geometric real rates of return for each major asset class of the
ASRS are summarized in the following table:
Asset Class
Target
Allocation
Real Rate of
Return
Equity
50%
6.39%
Fixed Income - Credit
20%
5.44%
Fixed Income - Interest Rate Sensitive
10%
0.22%
Real estate
20%
5.85%
Total
100%
G. Discount Rate
The discount rate used to measure the ASRS total pension liability was 7.5 percent, which was not changed
from the discount rate used as of June 30, 2019. The projection of cash flows used to determine the
discount rate assumed that contributions from participating employers will be made based on the
actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually
required rate under Arizona statute. Based on those assumptions, the 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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
71
NOTE 10 - Retirement and Pension Plans, continued
H. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the City of Chandler’s proportionate share of the net pension liability calculated using
the discount rate of 7.5 percent, as well as what the proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher
than the current rate:
1% Decrease
(6.5%)
Current
Discount
Rate (7.5%)
1% Increase
(8.5%)
City of Chandler's proportionate
share of the net pension liability
$ 167,581,375 $ 122,547,011 $ 84,900,596
I.
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
ASRS financial report. The report is available on the ASRS website at www.azasrs.gov.
Public Safety Personnel Retirement System
A.
Plan Description
City of Chandler public safety employees who are regularly assigned hazardous duty participate in the Public
Safety Personnel Retirement System (PSPRS). The PSPRS administers an agent multiple-employer defined
benefit pension plan and an agent multiple-employer defined benefit health insurance premium benefit
(OPEB) plan. For governmental activities OPEB and pension liabilities are generally liquidated by the general
fund. A seven-member board known as the Board of Trustees and the participating local boards govern the
PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4.
The PSPRS issues a publicly available financial report that includes their financial statements and required
supplementary information. The report is available on the PSPRS website at www.psprs.com.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
72
NOTE 10 - Retirement and Pension Plans, continued
B.
Benefits Provided
The PSPRS provides retirement, health insurance premium supplement, disability and survivor benefits.
State statute establishes benefits terms. Certain retirement and disability benefits are calculated on the
basis of age, average monthly compensation and service credit as follows. See the publicly available PSPRS
financial report for additional benefits information.
Retirement Initial Membership Date:
Before January 1, 2012
On or After January 1, 2012
On or After July 1, 2017
Years of service and age
20 years, any age
15 years and age 52.5
15 years and age 55
required to receive benefit
15 years age 62
Final average salary is
Highest 36 months of
Highest 60 months of last
Highest 60 months of
based on
last 20 years
20 years
last 15 years
Normal retirement
50% less 4.0% for each year
1.5% to 2.5% per year of
1.5% to 2.5% per year of
of credited service less than
credited service, not to
credited service, not to
20 years or plus 2.0% to
exceed 80%
exceed 80%
2.5% for each year of
credited service over 20
years, not to exceed 80%
Accidental disability retirement
50% or normal retirement, whichever is greater
Survivor benefit:
Retired members
80% of retired member’s pension benefit
Active members
80% to 100% of accidental disability retirement benefit or 100% of average
monthly compensation if death was the result of injuries received on the job
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on excess
investment earnings. The PSPRS also provides temporary disability benefits of 50 percent of the member's
compensation for up to 12 months.
C.
Employees Covered by Benefit Terms
At June 30, 2021, the following employees were covered by the agent pension plan’s benefit terms:
PSPRS - Police
PSPRS - Fire
Inactive employees or beneficiaries
currently receiving benefits
188
75
Inactive employees entitled to but not
yet receiving benefits
57
34
Active employees
277
180
Total
522
289
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
73
NOTE 10 - Retirement and Pension Plans, continued
D. Contributions
State statutes establish the pension contribution requirements for active PSPRS employees. In accordance
with state statutes, annual actuarial valuations determine employer contribution requirements for PSPRS
pension benefits. The combined active member and employer contribution rates are expected to finance
the cost of benefits employees earn during the year, with an additional amount to finance any unfunded
accrued liability. Contributions rates for the year ended June 30, 2021, are indicated below. Rates are a
percentage of active members’ annual covered payroll.
PSPRS - Police
PSPRS - Fire
Active members - pension
Tier 1
7.65 %
7.65 %
Tier 2
7.65 %
7.65 %
Tier 3 DB
10.12 %
10.76 %
Tier 3 DC
10.41 %
10.41 %
Employer rates - pension
Tier 1
49.12 %
43.84 %
Tier 2
49.12 %
43.84 %
Tier 3 DB
44.22 %
38.25 %
Tier 3 DC
44.51 %
37.90 %
In addition, the City of Chandler was required by statute to contribute at the actuarially determined rate of
34.10 percent for police and 27.49 percent for fire for the PSPRS of annual covered payroll of retired
members who worked in positions that would typically be filled by an employee who contributes to the
PSPRS.
For the agent plans, the contributions to the pension plan for the year ended were:
PSPRS - Police
PSPRS - Fire
Pension:
Contributions made
$
22,619,456 $
13,054,192
E.
Pension Liability
At June 30, 2021, the City of Chandler reported $128,231,920 in net pension liability for police and
$65,440,945 in net pension liability for fire. The net pension liabilities were measured as of June 30, 2020,
and the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The total pension liability as of June 30, 2020, reflects changes of benefit terms and
actuarial assumptions for a court ruling for funding permanent benefit increases and a decrease in the wage
growth assumption.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
74
NOTE 10 - Retirement and Pension Plans, continued
F.
Actuarial Assumptions
The significant actuarial assumptions used to measure the total pension liability are as follows:
Actuarial valuation date
June 30, 2020
Actuarial cost method
Entry age normal
Investment rate of return Tier 1/2
7.3%
Investment rate of return Tier 3
7.0%
Price inflation
2.5%
Wage inflation
3.5%
Projected salary increases
including inflation
3.5% - 7.5%
Cost of living adjustment
1.75%
Mortality rates
PubS-2010 tables
The long-term expected rate of return on PSPRS pension plan investments was determined to be 7.30
percent for Tiers 1 and 2 and 7.0 percent for Tier 3 using a building-block method in which best-estimate
ranges of expected future real rates of return (expected returns, net of pension plan investment expenses
and inflation) are developed for each major asset class. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Long-Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Core Bonds
2%
0.22%
International Public Equity
15%
6.09%
Other Assets (Capital Appreciation)
7%
5.61%
Cash - Mellon
1%
-0.6%
Diversifying Strategies
12%
3.22%
Global Private Equity
18%
8.42%
Private Credit
22%
5.31%
U.S. Public Equity
23%
4.93%
Total
100%
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
75
NOTE 10 - Retirement and Pension Plans, continued
G. Pension Discount Rates
The discount rate of 7.30 percent was used to measure the total pension liability for Tier 1/2 members and
7.00 percent for Tier 3 members. The projection of cash flows used to determine the PSPRS discount rates
assumed that plan member contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between the actuarially determined contribution
rates and the member rate. 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 for these plans to determine the total pension liability.
Increase/(Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
PSPRS - Police
Balances at June 30, 2020
$
281,437,368 $
158,412,254 $
123,025,114
Changes for the year:
Service cost
5,696,125
—
5,696,125
Interest on the total pension liability
20,504,731
—
20,504,731
Changes of benefit terms
—
—
—
Differences between expected and actual
experience in the measurement of the
pension liability
12,866,840
—
12,866,840
Changes of assumptions or other inputs
—
—
—
Contributions - employer
—
28,799,919
(28,799,919)
Contributions - employee
—
2,909,915
(2,909,915)
Net investment income
—
2,344,516
(2,344,516)
Benefit payments, including refunds of
employee contributions
(12,493,545)
(12,493,545)
—
Administrative expense
—
(191,143)
191,143
Other changes
—
(2,317)
2,317
Net changes
26,574,151
21,367,345
5,206,806
Balances at June 30, 2021
$
308,011,519 $
179,779,599 $
128,231,920
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
76
NOTE 10 - Retirement and Pension Plans, continued
Increase/(Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
PSPRS - Fire
Balances at June 30, 2020
$
169,704,177 $
103,375,390 $
66,328,787
Changes for the year:
Service cost
4,025,473
—
4,025,473
Interest on the total pension liability
12,453,112
—
12,453,112
Changes of benefit terms
—
—
—
Differences between expected and actual
experience in the measurement of the
pension liability
1,086,650
—
1,086,650
Changes of assumptions or other inputs
—
—
—
Contributions - employer
—
15,654,338
(15,654,338)
Contributions - employee
—
1,432,043
(1,432,043)
Net investment income
—
1,488,011
(1,488,011)
Benefit payments, including refunds of
employee contributions
(6,278,162)
(6,278,162)
—
Administrative expense
—
(121,320)
121,320
Other changes
—
5
(5)
Net changes
11,287,073
12,174,915
(887,842)
Balances at June 30, 2021
$
180,991,250 $
115,550,305 $
65,440,945
H. Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the City of Chandler’s net pension liability calculated using the discount rates noted
above, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower or 1-percentage-point higher than the current rate:
Tier 1-2/Tier 3
Current
Tier 1-2/Tier 3
1% Decrease
Discount Rate
1% Increase
PSPRS - Police:
Rate
6.30
7.30
8.30
Net pension liability
$ 172,228,649 $ 128,231,920 $
92,590,527
PSPRS - Fire:
Rate
6.30
7.30
8.30
Net pension liability
$
91,078,273 $
65,440,945 $
44,505,679
I.
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued
PSPRS financial report. The report is available on the PSPRS website at www.psprs.com.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
77
NOTE 10 - Retirement and Pension Plans, continued
J.
Pension Expense
For the year ended June 30, 2021, the City of Chandler recognized the following as pension expense:
Pension
Expense
PSPRS - Police
$
19,710,554
PSPRS - Fire
11,843,010
K.
Pension Deferred Outflows/Inflows of Resources
At June 30, 2021, the City of Chandler reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Police
Resources
Resources
Differences between expected and actual experience
$
11,740,236 $
2,131,896
Changes of assumptions or other inputs
7,425,936
—
Net difference between projected and actual earnings
on pension plan investments
8,506,052
—
Contributions subsequent to the measurement date
22,619,456
—
Total
$
50,291,680 $
2,131,896
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Fire
Resources
Resources
Differences between expected and actual experience
$
1,999,033 $
346,023
Changes of assumptions or other inputs
5,535,245
—
Net difference between projected and actual earnings
on pension plan investments
5,626,711
—
Contributions subsequent to the measurement date
13,054,192
—
Total
$
26,215,181 $
346,023
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
78
NOTE 10 - Retirement and Pension Plans, concluded
The amounts reported as deferred outflows of resources related to pension are resulting from contributions
made subsequent to the measurement date but before the end of the City's fiscal year and will be
recognized as a reduction of the net pension liability in the subsequent year ended June 30, 2022. Other
amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year Ending June 30:
PSPRS - Police
PSPRS - Fire
2022 $
5,652,156 $
3,071,791
2023
5,766,416
3,505,881
2024
5,639,701
3,029,992
2025
5,214,009
2,007,329
2026
3,268,046
559,457
Thereafter
—
640,516
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan
The cost of postemployment healthcare benefits, from an accrual accounting perspective, should be
associated with the periods in which the future costs are earned rather than in the future years when they
will be paid (similar to the cost of pension benefits). GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions requires the City to recognize the entire OPEB
liability and a comprehensive measure of OPEB expense. The comprehensive measure of OPEB expense
includes immediate recognition in OPEB expense of the effects of changes of benefit terms, as well as the
incorporation of the amortization of deferred inflows of resources and deferred outflows of resources
related to OPEB over a defined, closed period.
A.
Plan Description
The City provides post-employment health care (OPEB) for retired employees through a single employer
defined benefit health plan. The plan provides health benefits for eligible retirees, their spouses and
dependents though the City’s group health insurance plans, which covers active and retired members. The
benefits, benefit levels, and contribution rates are determined annually by the City’s Human Resources
Department and approved by the City Council. The plan is not accounted for as a trust fund, as an
irrevocable trust has not been established to account for the plan and no assets are accumulated. The plan
does not issue a separate financial report. Generally, resources from the general fund are used to pay for
post-employment benefits.
The City also provides a Retirement Health Savings Plan (RHSP) for active employees that may be used upon
separation from City employment. The City funds $15 per pay period during the term of employment. The
plan provides health expense reimbursements eligible under Internal Revenue Code Section 213, other than
direct long-term care expenses. The plan is not accounted for as a trust fund, as an irrevocable trust has not
been established to account for the plan. The plan does not issue a separate financial report. Generally,
resources from the general fund are used to pay for post-employment benefits.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
79
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
B.
Benefits Provided
The City provides post-employment health 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 health plan during their active status.
Upon retirement, the City deposits a one-time payment of $800 per year of City service in the retiree’s RHSP
account. The retiree must have a minimum of five years of City service to receive this contribution.
C.
Contributions
The plan premium rates are determined annually by the City’s Human Resources Department in
collaboration with an outside consulting firm, reviewed, and recommended by a five member Health Care
Benefits Trust Board, and approved by the City Council. The retiree’s contribution is 100 percent of the
actuarially determined blended premium rate. The City makes no contribution to the retirees’ premiums
other than allowing them to participate through the City’s pooled benefits. By providing retirees with access
to the City’s healthcare plans based on the same rates it charges to active employees, the City is in effect
providing a subsidy to retirees. This implied subsidy exists because, on average, retiree healthcare costs are
higher than active employee healthcare costs. The City contributes 0 percent of these premiums for
employees. By not contributing anything toward this plan in advance, the City employs a pay-as-you-go
method through paying the higher rate for active employees each year. A separate financial report is not
issued for the plan.
D. Employees Covered by Benefit Terms
The following employees were covered as of the effective date of the OPEB valuation:
Inactive employees or beneficiaries
currently receiving benefits
607
Active members
1,631
Total
2,238
E.
Total OPEB Liability
The City’s total OPEB liability of $63,003,983 was measured as of June 30, 2020 and was determined by an
actuarial valuation as of that date.
F.
Actuarial Assumptions and Other Inputs
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit cost between the employer and plan
members to that point. The total OPEB liability in the June 30, 2020 actuarial valuation was determined using
the following actuarial assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
80
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
Measurement date
June 30, 2020
Actuarial valuation date
June 30, 2019
Discount Rate
2.21%
Inflation rate
2.5% - 2.7%
Projected salary increases
Vary depending on retirement plan and
years of service from 2.7% - 7.5%
Health care cost trend rates
0% in 2020/21, then 7.5% graded down to
an ultimate rate of 4.5% over 12 years
Medical and prescription drug
Consistent with medical/drug trends.
Retiree contribution increase
100% share of benefit related costs
The discount rate is based on the index rate for a 20 year tax exempt general obligation municipal bond
with an average rating of AA/Aa or higher.
Mortality rates were based on the 2017 State Retirees of Arizona Mortality Table for current retirees and the
RP-2014 Disabled Mortality Table for disabled retirees.
G. Changes in the Total OPEB Liability
Total OPEB liability - beginning of year
$ 53,112,727
Changes for the year:
Service cost
2,940,955
Interest
1,921,296
Changes in assumptions or other inputs
7,368,121
Estimated benefit payments
(2,339,116)
Net changes
9,891,256
Total OPEB liability - end of year
$ 63,003,983
Changes in assumptions reflect the following:
1.
The discount rate decreased from 3.50% to 2.21% based on the changes in the Bond Buyer 20 GO
index municipal bond rate from June 30, 2019 to June 30, 2020.
2.
The 2020-21 trend on per capita health costs were updated to reflect actual premium renewals
for calendar year 2021.
3.
The General disability and pre-retirement mortality assumptions were revised to use the
headcount weighted versions of the mortality tables assumed for the companion pension plans.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
81
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
H. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would
be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher
than the current rate:
1% Decrease
(1.21%)
Current Discount
Rate (2.21%)
1% Increase
(3.21%)
Total OPEB liability
$
72,982,091 $
63,003,983 $
55,291,158
I.
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would
be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-
point higher than the current rate:
1% Decrease
(6.50%)
Current
Healthcare Cost
Trend Rates
(7.50%)
1% Increase
(8.50%)
Total OPEB liability
$
59,155,748 $
63,003,983 $
67,568,634
J.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended June 30, 2021, the City recognized OPEB expense of $3,179,563. At June 30, 2021, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual experience
$
— $
8,029,752
Changes of assumptions or other inputs
9,102,062
4,782,602
Contributions subsequent to measurement date
2,503,806
—
Total
$
11,605,868 $
12,812,354
The deferred outflows of resources resulting from contributions subsequent to the measurement date as
reported in the previous table will be recognized as a reduction of the net OPEB liability in the year ended
June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
82
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, concluded
Year Ending June 30:
2022
$
(1,682,688)
2023
(1,682,688)
2024
(1,682,688)
2025
(327,569)
2026
965,300
Thereafter
700,141
NOTE 12 - Commitments and Contingencies
The City is subject to a number of lawsuits, investigations, and other claims (some of which involve alleged
damages in substantial amounts) that are incidental to the ordinary course of its operations, including those
related to property damage and personal injury matters as well as alleged civil rights violations. All cases are
being vigorously defended by the City of Chandler both as to liability as well as the amount of damages
claimed. Although the City Attorney cannot reasonably estimate the actual results upon disposition of the
outstanding cases, some could be significant to the City’s operations, which is why the City not only self-
insures with a $1,750,000 liability retention, but carries an additional $30,000,000 in liability insurance
policies which are in excess of its self-insured retention. 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.
NOTE 13 - Risk Management
The City is exposed to various risks of loss related to litigation, claims and torts; theft of, damage to and
destruction of assets; errors and omissions; employee health claims; and natural disasters (for which the
City carries commercial insurance). The City established a Self-Insurance Fund (an Internal Service Fund) to
account for and finance its uninsured risks of loss. This fund is broken down into the following areas:
workers’ compensation insurance, property and liability insurance, health insurance, dental insurance and
short-term disability insurance.
Premiums are paid into the Internal Service Fund by all other funds with personnel services for workers’
compensation insurance and by the general fund for property and liability insurance. The premiums are
available to pay claims, fund claim reserves and pay administrative costs of the program. As with any risk
retention program, the City is contingently liable with respect to claims beyond those actuarially projected.
Interfund premiums are used to reduce the amount of claim expenditures reported in the Internal Service
Fund. In the opinion of City management, based on the advice of the City Attorney, the outcome of such
litigation and claims will not have materially adverse effect on the City’s financial position.
In fiscal year 2020-21, the Self-Insurance Fund provided coverage for up to a maximum of $50,000 for each
property damage claim and $1,750,000 per occurrence for general liability claims. Coverage is also provided
for claims up to $2,250,000 in Public Safety and up to $750,000 in all other classifications of workers’
compensation. The City purchases commercial insurance for claims in excess of coverage provided by the
Self-Insurance Fund and for all other risks of loss. During fiscal year 2020-21, there were no significant
reductions in the amounts of excess coverage purchased, nor has the City experienced any settlements in
excess of insurance coverage over the past three fiscal years.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
83
NOTE 13 - Risk Management, concluded
The City also has commercial stop loss insurance that provides specific (by individual member) coverage for
health insurance claims incurred in excess of $350,000 within the plan year, and aggregate (plan wide)
coverage for health insurance claims incurred above 125 percent of total plan wide claims for the plan year.
Liabilities include an amount for claims that have been incurred but not reported (IBNR). Claim liabilities are
calculated considering the effects of inflation, recent claim settlement trends including frequency and
amount of payouts and other economic and social factors.
The claims liability of $18,885,862 reported as claims payable in the Self-Insurance Fund at June 30, 2021, is
based on the requirements of GASB Statement No. 10, which requires that liabilities be reported when it is
probable that a loss has occurred and the amount of the loss can be reasonably estimated. This includes
known future payments made for insurance as well as estimated IBNR calculations.
Changes in the Funds' claims liability amount in fiscal years 2020 and 2021 were:
Current Year
Year
Beginning of
Claims and
Balance at
Ended
Fiscal Year
Changes in
Claim
Fiscal Year
June 30,
Risk of Loss
Balance
Estimates
Payments
End
2020
Workers' compensation
$
2,812,690 $
2,049,391 $ (1,922,409) $
2,939,672
Property and liability
1,307,955
211,609
(229,171)
1,290,393
Health
2,445,449
18,731,377 (18,304,860)
2,871,966
Dental
152,132
1,770,276
(1,766,145)
156,263
$
6,718,226 $ 22,762,653 $ (22,222,585) $
7,258,294
Beginning of
Current Year
Year
Fiscal Year
Claims and
Balance at
Ended
Balance
Changes in
Claim
Fiscal Year
June 30,
Risk of Loss
as Restated
Estimates
Payments
End
2021
Workers' compensation
$
8,798,989 $
3,530,748 $ (1,836,434) $ 10,493,303
Property and liability
1,816,038
1,845,747
(1,546,932)
2,114,853
Health
2,871,966
25,772,727 (22,556,474)
6,088,219
Dental
156,263
1,844,565
(1,811,341)
189,487
$ 13,643,256 $ 32,993,787 $ (27,751,181) $ 18,885,862
Workers' compensation and property and liability beginning of fiscal year balance as restated for the year
ended June 30, 2021 were restated to include the liability for case reserves (see Note 19).
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
84
NOTE 14 - Interfund Transfers
Interfund transfers are made from the General Fund and Non-Major Governmental Funds to fund costs
including property and liability insurance, technology replacement and vehicle and equipment replacement,
$9,609,477. The General Fund provides funding for various capital projects, $8,228,285, as well as annual
subsidies for the Airport and Public Housing Authority, $318,465. In addition, the General Fund transferred
$29,983,456 to Non-Major Governmental Funds for the purposes of assisting in the City's COVID-19
response. The interfund transfers in and out at June 30, 2021 are as follows:
Transfers In:
Transfers out:
Non-Major
Governmental
Funds
Non-Major
Enterprise Funds
Internal Service
Fund
Total
General Fund
$
44,010,913
$
547,006
$
2,536,901
$
47,094,820
Non-Major Governmental
Funds
176,072
—
93,989
270,061
Water Enterprise Fund
349,859
—
—
349,859
Wastewater Enterprise
Fund
260,273
—
—
260,273
Non-Major Enterprise
Funds
134,377
—
—
134,377
Internal Service Fund
30,293
—
—
30,293
Total
$
44,961,787
$
547,006
$
2,630,890
$
48,139,683
In addition to the cash transfers, the City had capital contributions from the government-type activities into
the business type activities in the amount of $91,512 (see Note 8).
NOTE 15 - Interfund Receivables and Payables
A.
Interfund Advances To/Advances From
Advances to other funds
Advances from other funds
Total
Governmental funds:
General
Capital projects - public safety buildings and
improvements
$ 6,296,432
Capital projects - public buildings
2,014,427
Total governmental funds
8,310,859
Enterprise funds:
Water
Enterprise - wastewater
3,900,000
Total all funds
$ 12,210,859
Interfund advances were made from governmental funds to capital projects funds to cover expenditures in
impact fee funds until impact fees are received. $700,000 of the public safety buildings and improvements
capital projects fund advances and $200,000 of the public buildings capital projects fund advance will be
repaid within one year.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
85
NOTE 15 - Interfund Receivables and Payables (concluded)
An interfund advance was made from the water enterprise fund to the wastewater system development
fees fund of the wastewater enterprise to cover expenditures until system development fees are collected.
$3,900,000 will be repaid within one year.
B.
Interfund Due To/Due From
Due from other funds
Due to other funds
Total
General
Capital projects - general government
$
755,677
Capital projects - grants
1,183,748
Special revenue - community development
224,353
Total general fund
$ 2,163,778
Interfund balances at June 30, 2021 are short-term loans used to cover temporary cash deficits in various
funds and are expected to be repaid within one year.
NOTE 16 - Joint Venture
The City and the Town of Gilbert entered into an Intergovernmental Agreement (Agreement) for the design,
construction and operation of a Joint Water Treatment Plant. Under the Agreement, the real property, plant
infrastructure and raw water pipelines will be jointly owned with each party entitled to 50 percent of the
plant capacity and each party paying 50 percent of the construction costs. The Town of Gilbert acts as the
Lead Agent, overseeing construction activities and operating the plant. The City’s investment in the joint
venture is reflected as a separate line item in the proprietary funds financial statements. Separate financial
statements for the joint venture are not prepared.
Total investment in joint venture as of June 30, 2021, is:
City of Chandler's Share
$ 73,987,681
Town of Gilbert's Share
80,612,880
$ 154,600,561
NOTE 17 - Deficit in Fund Balances
The police confiscated property special revenue fund had a deficit fund balance of $35,305. The deficit will
be covered by future revenues. The general government capital project fund had a deficit fund balance of
$370,036. The deficit will be covered by future revenues. The public buildings capital projects fund had
deficit fund balance of $1,918,169. The funds were financed by advances of interfund loans and will be paid
back by future impact fee revenues. The public safety buildings and improvement capital projects fund had
deficit fund balance of $4,903,067. The deficit will be covered by future impact fee revenues.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
86
NOTE 18 - Tax Abatements
The City has made commitments as part of our economic development programs to reimburse certain
public improvement costs through transaction privilege taxes generated out of the respective development
area. The total amount rebated in the fiscal year 2020-21 is $651,565. Detailed information on such
commitments is prohibited from disclosure under Arizona Revised Statute 42-2002, Disclosure of
Confidential Information Prohibited, and City of Chandler Code, 62-510 Divulging of Information Prohibited.
In addition, the City enters into property tax abatement agreements under Arizona Revised Statute 42-6201
through 42-6210, Government Property Lease Excise Tax (GPLET) to enhance the economic viability of the
City. The recipients of the GPLET commit to conveying the property to the City upon the project completion
and the City will lease it back to the recipient for an agreed upon amount. State law imposes an excise tax
on buildings that are owned by the City, leased by a private party and occupied/used for commercial,
residential rental or industrial purposes. The City is allowed to abate the full tax for a period of eight years
for both existing and new projects within redevelopment area that are part of a single central business
district. After the abatement period the projects pay an excise tax in which the City receives a 7 percent
distribution.
For the fiscal year ended June 30, 2021, the City abated property taxes totaling $194,003 under this program,
including the following tax abatement agreement that exceeds $100,000:
Property Tax GPLET to a residential rental development for constructing a multi-family residential
complex. The GPLET amounted to $126,900 of property tax abated.
NOTE 19 - Prior Period Adjustment
Prior year financial statements did not report the liability for case reserves. As a result of the restatement of
beginning balances, the following reconciles the previously reported July 1, 2020 balances.
Net Position
July 1, 2020 as
previously
reported
Inclusion of
case reserves
in claims
liability
Net Position
July 1, 2020 as
Restated
Internal Service Fund $
44,945,874
$
6,384,962
$ 38,560,912
NOTE 20 - Subsequent Events
On December 1, 2021, the City issued General Obligation Refunding Bonds, Taxable Series 2021 in the
amount of $48,025,000, maturing on July 1, 2028 with an average interest rate of 1.68 percent. The Bonds
are being issued for the purpose of refunding and redeeming, in advance of their respective maturities the
General Obligation Refunding Bonds, Series 2014 maturing July 1, 2026 through July 1, 2028, and paying the
costs of issuance of the Series 2021 Refunding Obligations.
On December 1, 2021, the City issued Excise Tax Revenue Refunding Bonds, Taxable Series 2021 in the
amount of $85,460,000, maturing on July 1, 2033 with an average interest rate of 2.06 percent. The Bonds
are being issued for the purpose of refunding and redeeming, in advance of their respective maturities the
Water and Sewer Excise Tax Revenue Obligations, Series 2013 maturing July 1, 2025 through July 1, 2033,
and paying the costs of issuance of the Series 2021 Refunding Obligations.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2021
87
88
REQUIRED SUPPLEMENTARY INFORMATION
89
90
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- General Fund
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
8,161,829
$
8,161,829
$
8,127,805
$
(34,024)
Sales taxes
123,562,552
123,562,552
157,513,686
33,951,134
Franchise fees
3,583,200
3,583,200
3,823,524
240,324
State shared
70,770,000
70,770,000
80,699,253
9,929,253
Grants and entitlements
169,500
169,500
7,716,927
7,547,427
System development fees
—
—
143,436
143,436
Licenses and permits
6,646,000
6,646,000
6,656,737
10,737
Charges for services
20,285,439
20,285,439
19,138,480
(1,146,959)
Fines and forfeitures
3,683,108
3,683,108
2,850,470
(832,638)
Rentals
106,000
106,000
174,766
68,766
Contributions
—
Interest revenue
2,629,000
2,629,000
(81,674)
(2,710,674)
Miscellaneous
275,200
275,200
588,941
313,741
Total Revenues
239,871,828
239,871,828
287,352,351
47,480,523
EXPENDITURES:
City clerk
926,189
950,107
923,681
26,426
City magistrate
4,684,074
4,663,063
4,557,833
105,230
City manager
16,864,709
17,630,076
15,509,399
2,120,677
Communications and public affairs
2,585,755
3,060,922
2,414,165
646,757
Community services
26,635,790
28,024,040
26,661,370
1,362,670
Cultural development
3,632,045
3,899,162
3,681,021
218,141
Development services
9,046,078
9,427,885
8,693,879
734,006
Fire
38,097,872
41,144,169
40,743,812
400,357
Information technology
11,784,758
13,485,847
12,390,794
1,095,053
Law
3,884,306
3,981,221
3,955,805
25,416
Management services
104,732,292
34,340,895
24,912,918
9,427,977
Mayor and council
1,019,324
1,022,547
942,925
79,622
Neighborhood resources
3,518,657
3,998,991
3,379,383
619,608
Police
76,537,609
80,518,870
78,786,463
1,732,407
Public works
10,083,511
11,618,697
10,972,729
645,968
Total expenditures
314,032,969
257,766,492
238,526,177
19,240,315
REVENUES OVER (UNDER) EXPENDITURES
(74,161,141)
(17,894,664)
48,826,174
66,720,838
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
—
1,876
1,876
Transfers in
9,073,586
9,073,586
—
(9,073,586)
Transfers out
(61,740,561)
(61,728,954)
(47,094,820)
14,634,134
Total other financing sources (uses)
(52,666,975)
(52,655,368)
(47,092,944)
5,562,424
Net change in fund balance
(126,828,116)
(70,550,032)
1,733,230
72,283,262
Fund balance, July 1, 2020
232,910,722
232,910,722
232,910,722
—
Fund balance, June 30, 2021
$
106,082,606
$
162,360,690
$
234,643,952
$
72,283,262
See accompanying notes to this schedule.
91
City of Chandler
Schedule of the Proportionate Share of the Net Pension Liability -
Arizona State Retirement System
June 30, 2021
2021
2020
2019
2018
City's proportion of the net pension
liability (asset)
0.71 %
0.72 %
0.76 %
0.74 %
City's proportionate share of the net
pension liability (asset)
$ 122,547,011
$ 104,541,379
$ 106,413,043
$ 115,691,952
City's covered payroll
$ 76,880,601
$ 75,407,689
$ 75,579,140
$ 72,284,183
City's proportionate share of the net
pension liability (asset) as a
percentage of its covered payroll
159.40 %
138.63 %
140.80 %
160.05 %
Plan fiduciary net position as a
percentage of the total
pension liability
69.33 %
73.24 %
73.00 %
69.92 %
Note: This schedule is intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
92
2017
2016
2015
0.75 %
0.73 %
0.71 %
$ 121,549,835
$ 113,885,153
$ 105,661,552
$ 70,362,938
$ 67,230,465
$ 64,263,236
172.75 %
169.40 %
164.42 %
67.06 %
68.35 %
69.49 %
93
City of Chandler
Schedule of Contributions -
All Pension Plans
June 30, 2021
2021
2020
2019
2018
Arizona State Retirement System:
Actuarially determined contribution
$ 9,267,255
$ 8,844,068
$ 8,470,741
$ 8,268,029
Contributions in relation to the
actuarially determined contribution
9,267,255
8,844,068
8,470,741
8,268,029
Contribution deficiency (excess)
$
—
$
—
$
—
$
—
City's covered payroll
$ 79,544,042
$ 76,880,601
$ 75,407,689
$ 75,579,140
Contributions as a percentage
of covered payroll
11.65 %
11.50 %
11.23 %
10.94 %
Public Safety Personnel Retirement
System - Police:
Actuarially determined contribution
$ 19,026,392
$ 15,572,686
$ 12,267,559
$ 10,950,501
Contributions in relation to the
actuarially determined contribution
1
22,619,456
28,715,343
15,398,196
14,300,501
Contribution deficiency (excess)
$ (3,593,064)
$ (13,142,657)
$ (3,130,637)
$ (3,350,000)
City's covered payroll
$ 26,480,082
$ 28,589,014
$ 28,848,732
$ 28,294,661
Contributions as a percentage
of covered payroll
85.42 %
100.44 %
53.38 %
50.54 %
Public Safety Personnel Retirement
System - Fire:
Actuarially determined contribution
$ 10,427,865
$ 8,004,060
$ 7,021,133
$ 6,392,313
Contributions in relation to the
actuarially determined contribution
1
13,054,192
15,566,324
8,670,333
8,042,313
Contribution deficiency (excess)
$ (2,626,327)
$ (7,562,264)
$ (1,649,200)
$ (1,650,000)
City's covered payroll
$ 18,187,540
$ 19,154,805
$ 19,025,780
$ 18,200,175
Contributions as a percentage
of covered payroll
71.78 %
81.27 %
45.57 %
44.19 %
Note: This schedule is intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
1Additional contributions above the actuarially determined contributions were made beginning with fiscal year
2016-17 and continue.
94
2017
2016
2015
$ 7,793,041
$ 7,634,805
$ 7,323,872
7,793,041
7,634,805
7,323,872
$
—
$
—
$
—
$ 72,284,183
$ 67,230,465
$ 67,230,465
10.78 %
11.36 %
10.89 %
$ 8,470,411
$ 8,561,143
$ 6,083,333
10,145,411
8,561,143
6,083,333
$ (1,675,000)
$
—
$
—
$ 27,058,086
$ 27,946,237
$ 26,187,641
37.49 %
30.63 %
23.23 %
$ 4,616,587
$ 4,438,495
$ 3,193,139
5,441,587
4,438,495
3,193,139
$
(825,000)
$
—
$
—
$ 17,275,940
$ 16,874,362
$ 15,671,133
31.50 %
26.30 %
20.38 %
95
City of Chandler
Schedule of Changes in the Net Pension Liability and Related Ratios -
Public Safety Personnel Retirement System - Police
June 30, 2021
2021
2020
2019
2018
Total pension liability
Service cost
$
5,696,125
$
6,149,336
$
5,737,868
$
6,092,332
Interest
20,504,731
19,203,025
17,999,842
17,064,596
Changes of benefit terms
—
—
—
1,501,042
Differences between expected and actual
experience
12,866,840
1,302,509
(671,252)
(6,211,672)
Changes of assumptions
—
6,562,499
—
6,528,203
Benefit payments, including refunds
(12,493,545)
(10,261,998)
(9,913,263)
(8,254,947)
Net change in total pension liability
26,574,151
22,955,371
13,153,195
16,719,554
Total pension liability - beginning
281,437,368
258,481,997
245,328,802
228,609,248
Total pension liability - ending
$ 308,011,519
$ 281,437,368
$ 258,481,997
$ 245,328,802
Plan fiduciary net position
Contributions - employer
$
28,799,919
$
15,572,686
$
10,296,409
$
10,247,877
Contributions - employee
2,909,915
2,206,379
2,765,932
3,244,412
Net investment income
2,344,516
8,365,394
9,301,979
14,017,325
Benefit payments, including refunds
(12,493,545)
(10,261,998)
(9,913,263)
(8,254,947)
Administrative expense
(191,143)
(146,042)
(142,274)
(124,430)
Other
(2,317)
(102,911)
24,215
(167,280)
Net change in plan fiduciary net position
21,367,345
15,633,508
12,332,998
18,962,957
Plan fiduciary net position - beginning
158,412,254
142,778,746
130,445,748
111,482,791
Plan fiduciary net position - ending
$ 179,779,599
$ 158,412,254
$ 142,778,746
$ 130,445,748
Net pension liability - ending
$ 128,231,920
$ 123,025,114
$ 115,703,251
$ 114,883,054
Plan fiduciary net position as a percentage of
the total pension liability
58.37 %
56.29 %
55.24 %
53.17 %
Covered payroll
$
25,916,774
$
28,848,732
$
28,294,661
$
27,058,086
Net pension liability as a percentage of
covered payroll
494.78 %
426.45 %
408.92 %
424.58 %
Note: This schedule is intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
96
2017
2016
2015
$
5,337,103
$
4,583,770
$
4,602,603
14,964,498
13,839,509
11,841,118
17,456,919
—
1,741,535
858,761
4,879,849
567,380
8,537,784
—
13,082,165
(13,015,625)
(5,681,836)
(7,054,499)
34,139,440
17,621,292
24,780,302
194,469,808
176,848,516
152,068,214
$ 228,609,248
$ 194,469,808
$ 176,848,516
$
8,728,082
$
6,155,142
$
5,465,059
3,633,359
3,308,265
2,675,724
677,501
3,873,466
12,329,319
(13,015,625)
(5,681,836)
(7,054,499)
(97,889)
(94,891)
—
238,667
(70,777)
(2,733,237)
164,095
7,489,369
10,682,366
111,318,696
103,829,327
93,146,961
$ 111,482,791
$ 111,318,696
$ 103,829,327
$ 117,126,457
$
83,151,112
$
73,019,189
48.77 %
57.24 %
58.71 %
$
27,946,237
$
26,187,641
$
24,290,497
419.11 %
317.52 %
300.61 %
97
City of Chandler
Schedule of Changes in the Net Pension Liability and Related Ratios -
Public Safety Personnel Retirement System - Fire
June 30, 2021
2021
2020
2019
2018
Total pension liability
Service cost
$
4,025,473
$
4,353,346
$
4,014,526
$
3,863,571
Interest
12,453,112
11,689,082
10,794,299
9,983,423
Changes of benefit terms
—
—
—
753,382
Differences between expected and actual
experience
1,086,650
(171,678)
1,014,752
941,823
Changes of assumptions
—
3,122,509
—
2,845,297
Benefit payments, including refunds
(6,278,162)
(5,792,594)
(6,363,418)
(5,049,317)
Net change in total pension liability
11,287,073
13,200,665
9,460,159
13,338,179
Total pension liability - beginning
169,704,177
156,503,512
147,043,353
133,705,174
Total pension liability - ending
$ 180,991,250
$ 169,704,177
$ 156,503,512
$ 147,043,353
Plan fiduciary net position
Contributions - employer
$
15,654,338
$
8,004,060
$
5,956,704
$
5,514,825
Contributions - employee
1,432,043
1,462,348
1,633,743
2,312,753
Net investment income
1,488,011
5,389,738
6,174,093
9,228,731
Benefit payments, including refunds
(6,278,162)
(5,792,594)
(6,363,418)
(5,049,317)
Administrative expense
(121,320)
(94,355)
(94,669)
(82,059)
Other
5
(42,251)
1,035
50,502
Net change in plan fiduciary net position
12,174,915
8,926,946
7,307,488
11,975,435
Plan fiduciary net position - beginning
103,375,390
94,448,444
87,140,956
75,165,521
Plan fiduciary net position - ending
$ 115,550,305
$ 103,375,390
$
94,448,444
$
87,140,956
Net pension liability - ending
$
65,440,945
$
66,328,787
$
62,055,068
$
59,902,397
Plan fiduciary net position as a percentage of
the total pension liability
63.84 %
60.92 %
60.35 %
59.26 %
Covered payroll
$
19,025,780
$
19,025,780
$
18,200,175
$
17,275,940
Net pension liability as a percentage of
covered payroll
343.96 %
348.63 %
340.96 %
346.74 %
Note: This schedule is intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
98
2017
2016
2015
$
3,174,665
$
2,915,603
$
2,949,507
8,707,808
8,264,915
7,191,487
10,272,193
—
930,663
96,063
(1,037,307)
(409,426)
4,937,927
—
6,465,545
(5,647,270)
(3,614,319)
(3,258,846)
21,541,386
6,528,892
13,868,930
112,163,788
105,634,896
91,765,966
$ 133,705,174
$ 112,163,788
$ 105,634,896
$
4,672,177
$
3,222,291
$
3,152,694
2,140,037
1,837,291
1,775,319
440,223
2,568,880
8,217,832
(5,647,270)
(3,614,319)
(3,258,846)
(63,746)
(63,063)
—
38,948
(55,142)
(1,798,718)
1,580,369
3,895,938
8,088,281
73,585,152
69,689,214
61,600,933
$
75,165,521
$
73,585,152
$
69,689,214
$
58,539,653
$
38,578,636
$
35,945,682
56.22 %
65.61 %
65.97 %
$
16,874,362
$
15,671,133
$
15,691,213
346.91 %
246.18 %
229.08 %
99
City of Chandler
Schedule of Changes in OPEB Liabilities and Related Ratios -
Single Employer Plan
June 30, 2021
2021
2020
2019
2018
Measurement date
6/30/2020
6/30/2019
6/30/2018
6/30/2017
Total OPEB liability - beginning of year
$ 53,112,727
$ 51,751,856
$ 52,838,811
$ 66,519,700
Changes for the year
Service cost
2,940,955
2,585,397
3,020,484
3,962,284
Interest
1,921,296
2,059,914
1,939,376
1,967,447
Differences between expected and
actual experience
—
(5,086,575)
(883,708)
(8,539,064)
Changes in assumptions or other
inputs
7,368,121
4,021,143
(1,789,527)
(8,174,073)
Benefit payments
(2,339,116)
(2,219,008)
(3,373,580)
(2,897,483)
Net changes
9,891,256
1,360,871
(1,086,955)
(13,680,889)
Total OPEB liability - end of year
$ 63,003,983
$ 53,112,727
$ 51,751,856
$ 52,838,811
Total covered employee payroll
$ 116,931,839
$ 113,713,741
$ 108,862,317
$ 106,207,139
Total OPEB liability as percentage of
covered employee payroll
53.88 %
46.71 %
47.54 %
49.75 %
The City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other Than Pensions, for the fiscal year ended June 30, 2018. Information for the prior years is not available.
Notes: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
This schedule is intended to show information for ten years. Additional years' information will be displayed as it
becomes available.
100
NOTE 1 - Budgetary Basis of Accounting
The adopted budget of the City is prepared on a basis consistent with accounting principles generally
accepted in the United States of America with the following exception: reserved encumbrances at year end
are recognized as expenditures. Consequently, the following adjustment is necessary to present the
change in fund balance for the general fund on a budgetary basis in order to provide a meaningful
comparison.
Changes in
Fund Balances
Statement of Revenues, Expenditures and Changes in
Fund Balances - Governmental Funds
$
9,681,677
Reserved encumbrances at June 30, 2021 recognized as
budgetary expenditures in fiscal year ended June 30, 2021
(7,948,447)
Budgetary Comparison Schedule for the General Fund
$
1,733,230
NOTE 2 - Pension Plan Schedules
Actuarial Assumptions for Valuations Performed
The information presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial
assumptions used are disclosed in the notes to the financial statements.
Factors that Affect Trends - Arizona State Retirement System (ASRS)
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial
experience study for the five-year period ended June 30, 2016. The purpose of the experience study was
to review actual experience in relation to the actuarial assumptions in effect. The ASRS Board adopted the
experience study recommended changes which were applied to the June 30, 2017 actuarial valuation. The
study did not include an analysis of the assumed investment rate of return.
Factors that Affect Trends - Public Safety Personnel Retirement System (PSPRS)
The actuarial assumptions used in the June 30, 2020 valuation for PSPRS were based on the results of an
actuarial experience study for the 5-year period ended June 30, 2016. The total pension liability used to
calculate the net pension liability for PSPRS was determined by an actuarial valuation as of that date. The
total pension liability as of June 30, 2020 reflects changes of benefit terms and actuarial assumptions for
funding assumed future permanent benefit increases.
CITY OF CHANDLER, ARIZONA
Notes to the Required Supplementary Information
June 30, 2021
101
NOTE 3 - Other Post Retirement Employment Benefit (OPEB) Plan Schedules
The City of Chandler does not have assets invested or accumulated in a qualified OPEB trust and funds
the plan on a pay-as-you-go basis.
Actuarial Assumptions for Valuations Performed
The information presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated, which is the most recent actuarial valuation. The actuarial
assumptions used are disclosed in the notes to the financial statements.
Factors that Affect Trends
The actuarial assumptions used in the June 30, 2020 valuation were made for the purposes of fulfilling
plan accounting requirements. Factors such as retiree group program experience, changes in
assumptions and changes in retiree group benefits program provisions or applicable law may differ from
future actuarial measurements.
CITY OF CHANDLER, ARIZONA
Notes to the Required Supplementary Information
June 30, 2021
102
OTHER FINANCIAL STATEMENTS
103
104
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- General Obligation Bonds Debt Service
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
28,367,900
$
28,367,900
$
28,281,540
$
(86,360)
Interest revenue
185,000
185,000
(80,954)
(265,954)
Total revenues
28,552,900
28,552,900
28,200,586
(352,314)
EXPENDITURES:
General government
1,835,030
1,835,030
—
(1,835,030)
Principal
19,395,000
19,395,000
19,395,000
—
Interest and fiscal charges
7,740,385
7,740,385
7,740,385
—
Total expenditures
28,970,415
28,970,415
27,135,385
(1,835,030)
Net change in fund balance
(417,515)
(417,515)
1,065,201
1,482,716
Fund balance, July 1, 2020
4,693,193
4,693,193
4,693,193
—
Fund balance, June 30, 2021
$
4,275,678
$
4,275,678
$
5,758,394
$
1,482,716
105
NON-MAJOR SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to finance particular activities and is created out of receipts of specific taxes
or other earmarked revenues. Such funds are authorized by statutory or charter provisions to pay for
certain activities with some special form of continuing revenues.
Highway User
Used to account for the receipt and expenditure of the City’s allocation of State highway user taxes. State
law restricts the use of these monies to maintenance, construction and reconstruction of streets and
repayment of transportation-related debt.
Local Transportation Assistance
Used to account for the receipt and expenditure of the City’s allocation of State lottery monies. State law
restricts the use of these monies to street and highway projects in the public right-of-way and to mass
transportation purposes.
Grants
Used to account for the receipt and expenditure of miscellaneous federal, state and local grants awarded to
the City for various specific operational purposes.
Community Development
Used to account for monies received from the U.S. Department of Housing and Urban Development and
Maricopa County for affordable housing activities including housing rehabilitation and redevelopment
activities.
Police Confiscated Property
Used to account for monies confiscated by the Police Department and monies received from the sale of
confiscated property.
Parks and Recreation
Used to account for donations for park improvements and programs restricted pursuant to donor
covenants.
Museum
Used to account for donations for museum improvements and programs restricted pursuant to donor
covenants.
Library
Used to account for donations for library improvements and programs restricted pursuant to donor
covenants.
City of Chandler
Non-Major Governmental Funds
106
NON-MAJOR DEBT SERVICE FUNDS
Special Assessment Bonds
Accumulates monies for the payment of principal and interest on Special Assessment Bonds that were
issued to finance costs of improvements applicable to benefiting properties within certain improvement
districts.
NON-MAJOR CAPITAL PROJECTS FUNDS
General Government
Used to account for the acquisition, construction and improvements of general government projects.
Public Buildings
Used to account for bond proceeds used for the acquisition, construction, reconstruction, improvement and
renovation of City buildings.
Grants
Used to account for the receipt and expenditure of miscellaneous federal, state and local grants awarded to
the City for various specific capital purposes.
Streets
Used to account for the acquisition, construction and improvements of City streets projects.
Community Services
Used to account for the acquisition of land and equipment, development, construction and improvement of
community parks and projects.
Public Safety Buildings and Improvements
Used to account for public safety, e.g., Police and Fire Departments, building construction, renovation,
improvements and equipment purchases.
Vehicle and Capital Equipment Replacement
Used to account for the purchase and/or replacement of general equipment-type assets, e.g., vehicles,
furniture and office equipment.
Technology Replacement
Used to account for the purchase and/or replacement of technology assets.
Municipal Arts
Used to account for amounts earmarked for the acquisition of art for public spaces.
City of Chandler
Non-Major Governmental Funds
107
108
City of Chandler
Combining Balance Sheet -
Non-Major Governmental Funds
June 30, 2021
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Grants
Development
Property
Recreation
Museum
ASSETS
Equity in pooled cash and investments
$ 32,641,580
$
5,152,402
$ 35,849,600 $
—
$
277,782
$ 298,913
$
48,814
Receivables (net of allowance
for uncollectible):
Accounts
—
—
—
—
—
—
—
Special assessments
—
—
—
—
—
—
—
Notes
—
—
—
448,503
—
—
—
Accrued interest
63,536
10,072
81,239
—
547
584
95
Other
—
—
—
—
—
—
—
Due from other governments
1,642,169
—
378,865
770,391
—
—
—
Total assets
$ 34,347,285
$
5,162,474
$ 36,309,704 $
1,218,894
$
278,329
$ 299,497
$
48,909
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
212,217
$
—
$ 2,961,722
$
286,040
$
—
$
—
$
—
Accrued payroll
131,145
—
10,382
22,413
—
—
—
Trust liabilities and deposits
—
—
—
—
313,634
—
—
Accrued interest
—
—
—
—
—
—
—
Due to other funds
—
—
—
224,353
—
—
—
Advances from other funds
—
—
—
—
—
—
—
Unearned revenue
—
—
17,081,877
—
—
—
—
Total liabilities
343,362
—
20,053,981
532,806
313,634
—
—
Deferred inflows of resources:
Unavailable revenues - special
assessments
—
—
—
—
—
—
—
Total deferred inflows of resources
—
—
—
—
—
—
—
Fund balances (deficits):
Restricted
34,003,923
5,162,474
16,255,723
686,088
—
299,497
48,909
Unassigned
—
—
—
—
(35,305)
—
—
Total fund balances (deficits)
34,003,923
5,162,474
16,255,723
686,088
(35,305)
299,497
48,909
Total liabilities, deferred inflows
and fund balances
$ 34,347,285
$
5,162,474
$ 36,309,704 $
1,218,894
$
278,329
$ 299,497
$
48,909
(Continued)
109
City of Chandler
Combining Balance Sheet -
Non-Major Governmental Funds
June 30, 2021
Special Revenue
Debt Service
Capital Projects
Special
Assessment
General
Public
Library
Bonds
Government
Buildings
Grants
ASSETS
Equity in pooled cash and investments
$
62,412
$
64,564
$
—
$
95,649
$
—
Receivables (net of allowance
for uncollectible):
Accounts
—
—
11,244
—
12,874
Special assessments
—
1,130,456
—
—
—
Notes
—
—
—
—
—
Accrued interest
127
—
—
609
—
Other
—
—
10,329
—
—
Due from other governments
—
—
1,161,251
—
4,447,823
Total assets
$
62,539
$
1,195,020
$
1,182,824
$
96,258
$
4,460,697
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
480
$
—
$
797,183
$
—
$
3,099,586
Accrued payroll
—
—
—
—
2,856
Trust liabilities and deposits
—
—
—
—
—
Accrued interest
—
24,900
—
—
—
Due to other funds
—
—
755,677
—
1,183,748
Advances from other funds
—
—
—
2,014,427
—
Unearned revenue
—
—
—
—
12,874
Total liabilities
480
24,900
1,552,860
2,014,427
4,299,064
Deferred inflows of resources:
Unavailable revenues - special
assessments
—
1,130,456
—
—
—
Total deferred inflows of resources
—
1,130,456
—
—
—
Fund balances (deficits):
Restricted
62,059
39,664
—
—
161,633
Unassigned
—
—
(370,036)
(1,918,169)
—
Total fund balances (deficits)
62,059
39,664
(370,036)
(1,918,169)
161,633
Total liabilities, deferred inflows
and fund balances
$
62,539
$
1,195,020
$
1,182,824
$
96,258
$
4,460,697
110
Capital Projects
Public Safety
Vehicle and
Total Other
Community
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Streets
Services
Improvements
Replacement
Replacement
Arts
Funds
$ 69,109,208
$ 43,627,625
$
1,391,097
$
9,690,729
$
4,978,143
$ 708,740
$ 203,997,258
—
—
—
—
—
—
24,118
—
—
—
—
—
—
1,130,456
—
—
—
—
—
—
448,503
149,438
96,821
2,268
19,143
9,784
1,385
435,648
—
—
—
—
—
—
10,329
—
—
—
—
—
—
8,400,499
$ 69,258,646
$ 43,724,446
$
1,393,365
$
9,709,872
$
4,987,927
$ 710,125
$ 214,446,811
$ 1,854,674
$ 1,043,375
$
—
$
197,870
$
4,068
$
100
$ 10,457,315
9,280
531
—
—
—
—
176,607
5
—
—
—
—
—
313,639
—
—
—
—
—
—
24,900
—
—
—
—
—
—
2,163,778
—
—
6,296,432
—
—
—
8,310,859
—
—
—
—
—
—
17,094,751
1,863,959
1,043,906
6,296,432
197,870
4,068
100
38,541,849
—
—
—
—
—
—
1,130,456
—
—
—
—
—
—
1,130,456
67,394,687
42,680,540
—
9,512,002
4,983,859
710,025
182,001,083
—
—
(4,903,067)
—
—
—
(7,226,577)
67,394,687
42,680,540
(4,903,067)
9,512,002
4,983,859
710,025
174,774,506
$ 69,258,646
$ 43,724,446
$
1,393,365
$
9,709,872
$
4,987,927
$ 710,125
$ 214,446,811
(Concluded)
111
City of Chandler
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Non-Major Governmental Funds
For the year ended June 30, 2021
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Grants
Development
Property
Recreation
Museum
REVENUES:
Highway user taxes
$ 18,108,310
$
—
$
—
$
—
$
—
$
—
$
—
Regional transportation taxes
—
—
—
—
—
—
—
Grants and entitlements
—
809,091
7,786,935
2,490,263
—
53,773
5,429
System development fees
—
—
—
—
—
—
—
Special assessments
—
—
—
—
—
—
—
Charges for services
—
186,198
—
—
—
—
—
Fines and forfeitures
—
—
—
—
66,390
—
—
Contributions
—
—
—
—
—
—
—
Interest revenue
63,531
10,085
624,408
1
—
(127)
18
Miscellaneous
63,902
176,830
254,078
—
—
—
—
Total revenues
18,235,743
1,182,204
8,665,421
2,490,264
66,390
53,646
5,447
EXPENDITURES:
Current:
General government
—
—
21,258,861
2,349,891
—
—
—
Public safety
—
—
1,521,963
—
24,159
—
—
Transportation and development
7,459,636
339,199
207,041
—
—
—
—
Community services
—
—
147,506
—
—
40,373
—
Capital outlay
7,791,745
88,151
1,824,662
—
41,220
—
—
Debt service:
Principal
—
—
—
—
—
—
—
Interest and fiscal charges
—
—
—
—
—
—
—
Total expenditures
15,251,381
427,350
24,960,033
2,349,891
65,379
40,373
—
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
2,984,362
754,854
(16,294,612)
140,373
1,011
13,273
5,447
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
2,326
—
—
—
—
—
—
Transfers in
—
—
29,983,456
—
—
—
—
Transfers out
(265,849)
(4,212)
—
—
—
—
—
Total other financing sources (uses)
(263,523)
(4,212) 29,983,456
—
—
—
—
NET CHANGE IN FUND BALANCE
2,720,839
750,642
13,688,844
140,373
1,011
13,273
5,447
FUND BALANCES (DEFICITS):
Beginning of year
31,283,084
4,411,832
2,566,879
545,715
(36,316)
286,224
43,462
End of year
$ 34,003,923
$
5,162,474
$ 16,255,723 $
686,088
$
(35,305) $ 299,497
$
48,909
112
Special Revenue
Debt Service
Capital Projects
Special
Assessment
General
Public
Community
Library
Bonds
Government
Buildings
Grants
Streets
Services
$
—
$
—
$
—
$
—
$
—
$
—
$
—
—
—
—
—
—
2,226,568
—
32,149
—
—
—
10,522,461
—
—
—
—
—
193,846
—
4,882,337
2,369,341
—
587,020
—
—
—
—
—
—
—
—
—
249,256
—
—
—
—
—
—
—
—
—
—
—
5,201,737
—
—
—
226
—
4
2,349
5
(21,403)
(17,386)
—
—
—
—
—
—
—
32,375
587,020
5,201,741
196,195
10,771,722
7,087,502
2,351,955
—
—
1,880,081
1,200
23,708
1,200
2,400
—
—
201,880
—
—
—
—
—
—
883,587
—
1,880,748
3,377,034
—
19,627
—
478,511
—
1
—
146,213
—
—
10,129,129
—
11,259,901
18,013,413
3,714,326
—
585,000
—
—
—
—
—
—
61,500
—
—
—
—
—
19,627
646,500
13,573,188
1,200
13,164,358
21,391,647
3,862,939
12,748
(59,480)
(8,371,447)
194,995
(2,392,636)
(14,304,145)
(1,510,984)
—
—
—
—
—
—
—
—
—
7,999,744
—
—
—
—
—
—
—
—
—
—
—
—
—
7,999,744
—
—
—
—
12,748
(59,480)
(371,703)
194,995
(2,392,636)
(14,304,145)
(1,510,984)
49,311
99,144
1,667
(2,113,164)
2,554,269
81,698,832
44,191,524
$
62,059
$
39,664
$
(370,036) $
(1,918,169) $
161,633
$
67,394,687
$
42,680,540
(Continued)
113
City of Chandler
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Non-Major Governmental Funds
For the year ended June 30, 2021
Capital Projects
Public Safety
Vehicle and
Total Other
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Improvements
Replacement
Replacement
Arts
Funds
REVENUES:
Highway user taxes
$
—
$
—
$
—
$
—
$
18,108,310
Regional transportation taxes
—
—
—
—
2,226,568
Grants and entitlements
—
—
—
—
21,700,101
System development fees
618,768
—
—
—
8,064,292
Special assessments
—
—
—
—
587,020
Charges for services
—
—
—
57,455
492,909
Fines and forfeitures
—
—
—
—
66,390
Contributions
—
—
—
—
5,201,737
Interest revenue
46,918
(18,712)
5,854
257
696,028
Miscellaneous
—
21,319
—
—
516,129
Total revenues
665,686
2,607
5,854
57,712
57,659,484
EXPENDITURES:
Current:
General government
2,400
—
3,759,922
—
29,279,663
Public safety
—
—
—
—
1,748,002
Transportation and development
—
—
—
—
14,147,245
Community services
—
—
—
14,012
846,243
Capital outlay
18,041
5,393,528
596,076
—
58,870,192
Debt service:
Principal
—
—
—
—
585,000
Interest and fiscal charges
—
—
—
—
61,500
Total expenditures
20,441
5,393,528
4,355,998
14,012
105,537,845
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
645,245
(5,390,921)
(4,350,144)
43,700
(47,878,361)
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
220,879
—
—
223,205
Transfers in
—
3,316,983
3,661,604
—
44,961,787
Transfers out
—
—
—
—
(270,061)
Total other financing sources (uses)
—
3,537,862
3,661,604
—
44,914,931
NET CHANGE IN FUND BALANCE
645,245
(1,853,059)
(688,540)
43,700
(2,963,430)
FUND BALANCES (DEFICITS):
Beginning of year
(5,548,312)
11,365,061
5,672,399
666,325
177,737,936
End of year
$
(4,903,067) $
9,512,002
$
4,983,859
$
710,025
$ 174,774,506
(Concluded)
114
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- Highway User Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Highway user taxes
$
16,500,000
$
16,500,000
$
18,108,310
$
1,608,310
Interest revenue
372,000
372,000
63,532
(308,468)
Miscellaneous
—
—
63,902
63,902
Total revenues
16,872,000
16,872,000
18,235,744
1,363,744
EXPENDITURES:
General government
3,986,700
3,037,803
—
3,037,803
Transportation and development
12,074,436
8,787,500
7,893,720
893,780
Capital outlay
5,853,569
9,889,296
9,543,570
345,726
Total expenditures
21,914,705
21,714,599
17,437,290
4,277,309
Excess (deficiency) of revenues over expenditures
(5,042,705)
(4,842,599)
798,454
5,641,053
OTHER FINANCING SOURCES (USES):
Proceeds from sale of capital assets
—
—
2,326
2,326
Transfers out
(287,841)
(287,841)
(265,849)
21,992
Total other financing sources (uses)
(287,841)
(287,841)
(263,523)
24,318
Net change in fund balance
(5,330,546)
(5,130,440)
534,931
5,665,371
Fund balance, July 1, 2020
31,283,084
31,283,084
31,283,084
—
Fund balance, June 30, 2021
$
25,952,538
$
26,152,644
$
31,818,015
$
5,665,371
115
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- Local Transportation Assistance Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
700,000
$
700,000
$
809,091
$
109,091
Charges for services
180,000
180,000
186,198
6,198
Interest revenue
75,000
75,000
10,086
(64,914)
Miscellaneous
—
—
176,830
176,830
Total revenues
955,000
955,000
1,182,205
227,205
EXPENDITURES:
General government
1,015,200
1,000,450
—
1,000,450
Transportation and development
1,743,918
1,289,571
363,235
926,336
Capital outlay
392,000
881,322
171,700
709,622
Total expenditures
3,151,118
3,171,343
534,935
2,636,408
Excess (deficiency) of revenues over expenditures
(2,196,118)
(2,216,343)
647,270
2,863,613
OTHER FINANCING SOURCES (USES):
Transfers out
(4,409)
(4,409)
(4,212)
197
Total other financing sources (uses)
(4,409)
(4,409)
(4,212)
197
Net change in fund balance
(2,200,527)
(2,220,752)
643,058
2,863,810
Fund balance, July 1, 2020
4,411,832
4,411,832
4,411,832
—
Fund balance, June 30, 2021
$
2,211,305
$
2,191,080
$
5,054,890
$
2,863,810
116
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- Grants Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
5,000,000
$
5,000,000
$
7,786,935
$
2,786,935
Interest revenue
43,000
43,000
624,398
581,398
Miscellaneous
—
—
254,078
254,078
Total revenues
5,043,000
5,043,000
8,665,411
3,622,411
EXPENDITURES:
General government
5,000,000
40,597,376
26,107,763
14,489,613
Public safety
54,257
3,170,548
1,562,553
1,607,995
Transportation and development
—
207,044
207,041
3
Community services
—
349,382
147,506
201,876
Capital outlay
—
384,455
1,939,471
(1,555,016)
Total expenditures
5,054,257
44,708,805
29,964,334
14,744,471
Excess (deficiency) of revenues over expenditures
(11,257)
(39,665,805)
(21,298,923)
18,366,882
OTHER FINANCING SOURCES (USES):
Transfers in
—
—
29,983,456
(29,983,456)
Total other financing sources (uses)
—
—
29,983,456
(29,983,456)
Net change in fund balance
(11,257)
(39,665,805)
8,684,533
(11,616,574)
Fund balance, July 1, 2020
2,566,879
2,566,879
2,566,879
—
Fund balance (deficit), June 30, 2021
$
2,555,622
$ (37,098,926) $
11,251,412
$ (11,616,574)
117
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Community Development Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
2,805,950
$
2,805,950
$
2,490,263
$
(315,687)
Total revenues
2,805,950
2,805,950
2,490,263
(315,687)
EXPENDITURES:
General government
3,297,014
3,329,455
2,598,240
731,215
Total expenditures
3,297,014
3,329,455
2,598,240
731,215
Net change in fund balance
(491,064)
(523,505)
(107,977)
415,528
Fund balance, July 1, 2020
545,715
545,715
545,715
—
Fund balance, June 30, 2021
$
54,651
$
22,210
$
437,738
$
415,528
118
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Police Confiscated Property Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Fines and forfeitures
$
750,000
$
750,000
$
66,390
$
(683,610)
Total revenues
750,000
750,000
66,390
(683,610)
EXPENDITURES:
General government
29,000
29,000
—
29,000
Public safety
645,000
645,000
24,159
620,841
Capital outlay
105,000
105,000
41,220
63,780
Total expenditures
779,000
779,000
65,379
713,621
Net change in fund balance
(29,000)
(29,000)
1,011
30,011
Fund balance (deficit), July 1, 2020
(36,316)
(36,316)
(36,316)
—
Fund balance (deficit), June 30, 2021
$
(65,316) $
(65,316) $
(35,305) $
30,011
119
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Parks and Recreation Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
93,900
$
93,900
$
53,773
$
(40,127)
Interest revenue
5,000
5,000
(126)
(5,126)
Total revenues
98,900
98,900
53,647
(45,253)
EXPENDITURES:
General government
15,000
15,000
—
15,000
Community services
103,559
103,559
40,373
63,186
Total expenditures
118,559
118,559
40,373
78,186
Net change in fund balance
(19,659)
(19,659)
13,274
32,933
Fund balance, July 1, 2020
286,224
286,224
286,224
—
Fund balance, June 30, 2021
$
266,565
$
266,565
$
299,498
$
32,933
120
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Museum Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
200
$
200
$
5,429
$
5,229
Interest revenue
1,000
1,000
18
(982)
Total revenues
1,200
1,200
5,447
4,247
EXPENDITURES:
General government
4,000
4,000
—
4,000
Community services
31,410
31,410
—
31,410
Total expenditures
35,410
35,410
—
35,410
Net change in fund balance
(34,210)
(34,210)
5,447
39,657
Fund balance, July 1, 2020
43,462
43,462
43,462
—
Fund balance, June 30, 2021
$
9,252
$
9,252
$
48,909
$
39,657
121
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Library Special Revenue
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
80,000
$
80,000
$
32,149
$
(47,851)
Interest revenue
1,000
1,000
225
(775)
Total revenues
81,000
81,000
32,374
(48,626)
EXPENDITURES:
General government
1,197
1,197
—
1,197
Community services
79,803
79,803
19,627
60,176
Total expenditures
81,000
81,000
19,627
61,373
Net change in fund balance
—
—
12,747
12,747
Fund balance, July 1, 2020
49,311
49,311
49,311
—
Fund balance, June 30, 2021
$
49,311
$
49,311
$
62,058
$
12,747
122
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Special Assessment Bonds
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Special assessments
$
—
$
—
$
587,020
$
587,020
Total revenues
—
—
587,020
587,020
EXPENDITURES:
Principal
—
—
585,000
(585,000)
Interest and fiscal charges
—
—
61,500
(61,500)
Total expenditures
—
—
646,500
(646,500)
Net change in fund balance
—
—
(59,480)
(59,480)
Fund balance, July 1, 2020
99,144
99,144
99,144
—
Fund balance, June 30, 2021
$
99,144
$
99,144
$
39,664
$
(59,480)
123
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- General Government Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Contributions
$
—
$
—
$
5,201,737
$
5,201,737
Miscellaneous
250,000
250,000
—
(250,000)
Total revenues
250,000
250,000
5,201,737
4,951,737
EXPENDITURES:
General government
16,401,391
6,556,146
2,909,100
3,647,046
Public safety
5,210,950
1,479,612
740,626
738,986
Transportation and development
14,459,906
2,239,815
939,071
1,300,744
Community services
3,324,565
1,106,329
545,380
560,949
Capital outlay
11,777,485
39,803,043
21,150,445
18,652,598
Total expenditures
51,174,297
51,184,945
26,284,622
24,900,323
Excess (deficiency) of revenues over expenditures
(50,924,297)
(50,934,945)
(21,082,885)
29,852,060
OTHER FINANCING SOURCES (USES):
Transfers in
50,924,297
50,924,297
7,999,744
(42,924,553)
Total other financing sources (uses)
50,924,297
50,924,297
7,999,744
(42,924,553)
Net change in fund balance
—
(10,648)
(13,083,141)
(13,072,493)
Fund balance, July 1, 2020
1,667
1,667
1,667
—
Fund balance (deficit), June 30, 2021
$
1,667
$
(8,981) $ (13,081,474) $ (13,072,493)
124
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Public Buildings Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
145,000
$
145,000
$
193,846
$
48,846
Interest revenue
1,500
1,500
2,350
850
Total revenues
146,500
146,500
196,196
49,696
EXPENDITURES:
General government
42,000
42,000
1,500
40,500
Total expenditures
42,000
42,000
1,500
40,500
Excess (deficiency) of revenues over expenditures
104,500
104,500
194,696
90,196
OTHER FINANCING SOURCES (USES):
Transfers out
(175,000)
(175,000)
—
175,000
Total other financing sources (uses)
(175,000)
(175,000)
—
175,000
Net change in fund balance
(70,500)
(70,500)
194,696
265,196
Fund balance (deficit), July 1, 2020
(2,113,164)
(2,113,164)
(2,113,164)
—
Fund balance (deficit), June 30, 2021
$
(2,183,664) $
(2,183,664) $
(1,918,468) $
265,196
125
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Grants Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$ 27,673,134
$ 27,673,134
$ 10,522,461
$ (17,150,673)
Charges for services
270,718
270,718
249,256
(21,462)
Total revenues
27,943,852
27,943,852
10,771,717
(17,172,135)
EXPENDITURES:
General government
1,663,604
1,338,589
96,546
1,242,043
Transportation and development
27,187,322
1,872,687
2,298,752
635,187
Community services
660,097
47,393
1
47,392
Capital outlay
25,037,296
55,864,436
24,257,485
31,606,951
Total expenditures
54,548,319
59,123,105
26,652,784
33,531,573
Excess (deficiency) of revenues over expenditures
(26,604,467)
(31,179,253)
(15,881,067)
16,359,438
OTHER FINANCING SOURCES (USES):
Transfers out
—
(120,000)
—
120,000
Total other financing sources (uses)
—
(120,000)
—
120,000
Net change in fund balance
(26,604,467)
(31,299,253)
(15,881,067)
16,479,438
Fund balance, July 1, 2020
2,554,269
2,554,269
2,554,269
—
Fund balance (deficit), June 30, 2021
$ (24,050,198) $ (28,744,984) $ (13,326,798) $ 16,479,438
126
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Streets Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Regional transportation taxes
$
—
$
—
$
2,226,568
$
2,226,568
System development fees
4,133,600
4,133,600
4,882,337
748,737
Interest revenue
1,023,000
1,023,000
(21,408)
(1,044,408)
Total revenues
5,156,600
5,156,600
7,087,497
1,930,897
EXPENDITURES:
General government
2,501,500
6,427,392
1,500
6,425,892
Transportation and development
35,841,038
3,075,802
4,119,777
(1,043,975)
Capital outlay
31,797,681
59,440,321
32,333,991
27,106,330
Total expenditures
70,140,219
68,943,515
36,455,268
32,488,247
Net change in fund balance
(64,983,619)
(63,786,915)
(29,367,771)
34,419,144
Fund balance, July 1, 2020
81,698,832
81,698,832
81,698,832
—
Fund balance, June 30, 2021
$ 16,715,213
$ 17,911,917
$ 52,331,061
$ 34,419,144
127
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Community Services Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
1,994,200
$
1,994,200
$
2,369,341
$
375,141
Interest revenue
610,200
610,200
(17,387)
(627,587)
Total revenues
2,604,400
2,604,400
2,351,954
(252,446)
EXPENDITURES:
General government
5,624,800
6,027,446
3,000
6,024,446
Community services
11,851,649
2,096,729
163,284
1,933,445
Capital outlay
6,191,868
14,402,988
7,866,725
6,536,263
Total expenditures
23,668,317
22,527,163
8,033,009
14,494,154
Net change in fund balance
(21,063,917)
(19,922,763)
(5,681,055)
14,241,708
Fund balance, July 1, 2020
44,191,524
44,191,524
44,191,524
—
Fund balance, June 30, 2021
$ 23,127,607
$ 24,268,761
$ 38,510,469
$ 14,241,708
128
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Public Safety Buildings and Improvements Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
792,000
$
792,000
$
618,768
$
(173,232)
Interest revenue
27,000
27,000
46,917
19,917
Total revenues
819,000
819,000
665,685
(153,315)
EXPENDITURES:
General government
283,000
416,135
3,000
413,135
Public safety
163,970
13,566
—
13,566
Capital outlay
—
17,269
19,944
(2,675)
Total expenditures
446,970
446,970
22,944
424,026
Excess (deficiency) of revenues over expenditures
372,030
372,030
642,741
270,711
OTHER FINANCING SOURCES (USES):
Transfers out
(1,350,000)
(1,350,000)
—
1,350,000
Total other financing sources (uses)
(1,350,000)
(1,350,000)
—
1,350,000
Net change in fund balance
(977,970)
(977,970)
642,741
1,620,711
Fund balance (deficit), July 1, 2020
(5,548,312)
(5,548,312)
(5,548,312)
—
Fund balance (deficit), June 30, 2021
$
(6,526,282) $
(6,526,282) $
(4,905,571) $
1,620,711
129
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Vehicle and Capital Equipment Replacement Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
239,000
$
239,000
$
(18,712) $
(257,712)
Miscellaneous
—
—
21,319
21,319
Total revenues
239,000
239,000
2,607
(236,393)
EXPENDITURES:
General government
2,744,000
3,829,796
—
3,829,796
Public safety
5,325,735
—
432,516
(432,516)
Capital outlay
1,717,280
6,244,609
5,470,986
773,623
Total expenditures
9,787,015
10,074,405
5,903,502
4,170,903
Excess (deficiency) of revenues over expenditures
(9,548,015)
(9,835,405)
(5,900,895)
3,934,510
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
300,000
300,000
220,879
(79,121)
Transfers in
3,316,983
3,316,983
3,316,983
—
Total other financing sources (uses)
3,616,983
3,616,983
3,537,862
(79,121)
Net change in fund balance
(5,931,032)
(6,218,422)
(2,363,033)
3,855,389
Fund balance, July 1, 2020
11,365,061
11,365,061
11,365,061
—
Fund balance, June 30, 2021
$
5,434,029
$
5,146,639
$
9,002,028
$
3,855,389
130
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Technology Replacement Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
178,000
$
178,000
$
5,854
$
(172,146)
Total revenues
178,000
178,000
5,854
(172,146)
EXPENDITURES:
General government
2,017,000
1,261,379
3,859,370
(2,597,991)
Capital outlay
4,306,271
4,386,210
622,957
3,763,253
Total expenditures
6,323,271
5,647,589
4,482,327
1,165,262
Excess (deficiency) of revenues over expenditures
(6,145,271)
(5,469,589)
(4,476,473)
993,116
OTHER FINANCING SOURCES (USES):
Transfers in
3,638,571
3,638,571
3,661,604
23,033
Total other financing sources (uses)
3,638,571
3,638,571
3,661,604
23,033
Net change in fund balance
(2,506,700)
(1,831,018)
(814,869)
1,016,149
Fund balance, July 1, 2020
5,672,399
5,672,399
5,672,399
—
Fund balance, June 30, 2021
$
3,165,699
$
3,841,381
$
4,857,530
$
1,016,149
131
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Municipal Arts Capital Projects
For the year ended June 30, 2021
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Charges for services
$
57,400
$
57,400
$
57,455
$
55
Interest revenue
9,300
9,300
257
(9,043)
Total revenues
66,700
66,700
57,712
(8,988)
EXPENDITURES:
General government
23,000
23,000
—
23,000
Community services
512,385
512,385
14,012
498,373
Total expenditures
535,385
535,385
14,012
521,373
Net change in fund balance
(468,685)
(468,685)
43,700
512,385
Fund balance, July 1, 2020
666,325
666,325
666,325
—
Fund balance, June 30, 2021
$
197,640
$
197,640
$
710,025
$
512,385
132
City of Chandler
Non-Major Proprietary Funds
Solid Waste
Used to account for the provision of solid waste (refuse) services to the residential customers of the City. All
activities necessary to provide such service are accounted for in this fund.
Airport
Used to account for the provision of airport services at the City's municipal airport. All activities necessary to
provide such service are accounted for in this fund, including but not limited to administration, operation,
maintenance, financing and related debt service, billing and collection.
Chandler Housing Authority
Used to account for expenditures of the City's housing assistance programs which consist of housing owned
and operated by the City and rent subsidy payments to private sector owners of dwelling units. Financing for
this fund is derived from tenants and the United States Department of Housing and Urban Development.
133
City of Chandler
Combining Statement of Net Position -
Non-Major Proprietary Funds
June 30, 2021
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
ASSETS
Current assets:
Equity in pooled cash and investments
$ 21,693,051 $
29,744
$ 8,242,401
$ 29,965,196
Accounts receivable
2,365,776
388
41,322
2,407,486
Due from other governments
—
33,600
49,456
83,056
Inventories
—
36,608
—
36,608
Accrued interest receivable
42,089
—
15,879
57,968
Other receivables
33
—
—
33
Total current assets
24,100,949
100,340
8,349,058
32,550,347
Long-term assets:
Notes receivable
—
—
154,750
154,750
Capital assets:
Non-depreciable
6,622,659
19,092,852
1,751,537
27,467,048
Depreciable, net
7,054,942
12,744,676
7,035,155
26,834,773
Total capital assets
13,677,601
31,837,528
8,786,692
54,301,821
Total long-term assets
13,677,601
31,837,528
8,941,442
54,456,571
Total assets
37,778,550
31,937,868
17,290,500
87,006,918
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
411,989
272,820
556,721
1,241,530
134
LIABILITIES
Current liabilities:
Accounts payable
1,256,784
53,213
49,944
1,359,941
Accrued payroll
55,651
18,194
49,038
122,883
Trust liabilities and deposits
—
57,530
618,103
675,633
Customer advances
81,021
26,640
215,097
322,758
Compensated absences payable
17,536
6,485
19,535
43,556
Landfill closure and postclosure liability
94,446
—
—
94,446
Total current liabilities
1,505,438
162,062
951,717
2,619,217
Long-term liabilities:
Compensated absences payable
79,104
29,256
88,118
196,478
Net pension liability
1,349,904
1,274,519
2,359,378
4,983,801
OPEB liability
516,026
181,563
583,163
1,280,752
Landfill closure and postclosure liability
4,245,554
—
—
4,245,554
Total long-term liabilities
6,190,588
1,485,338
3,030,659
10,706,585
Total liabilities
7,696,026
1,647,400
3,982,376
13,325,802
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
67,858
54,301
330,674
452,833
NET POSITION
Net investment in capital assets
13,677,601
31,837,528
8,786,692
54,301,821
Unrestricted
16,749,054
(1,328,541)
4,747,479
20,167,992
Total net position
$ 30,426,655 $ 30,508,987 $ 13,534,171 $ 74,469,813
135
136
City of Chandler
Combining Statement of Revenues, Expenses and Changes in Net Position -
Non-Major Proprietary Funds
For the year ended June 30, 2021
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
OPERATING REVENUES:
Service fees
$ 17,480,050
$
893,268
$
200
$ 18,373,518
Grants and entitlements
—
—
7,965,078
7,965,078
Rentals
—
—
1,262,766
1,262,766
Sales taxes
—
16,516
—
16,516
Miscellaneous
—
71,839
62,182
134,021
Total operating revenues
17,480,050
981,623
9,290,226
27,751,899
OPERATING EXPENSES:
General and administrative
1,033,310
102,341
—
1,135,651
Personnel services
1,821,489
599,585
1,645,073
4,066,147
Contractual services
12,724,981
60,184
1,054,880
13,840,045
Commodities
849,188
352,904
434,276
1,636,368
Housing assistance payments
—
—
5,475,829
5,475,829
Depreciation and amortization expense
611,341
1,071,710
597,473
2,280,524
Total operating expenses
17,040,309
2,186,724
9,207,531
28,434,564
OPERATING INCOME (LOSS)
439,741
(1,205,101)
82,695
(682,665)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
(18,732)
2
3,620
(15,110)
Total nonoperating revenues (expenses)
(18,732)
2
3,620
(15,110)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS
421,009
(1,205,099)
86,315
(697,775)
CAPITAL CONTRIBUTION AND TRANSFERS:
Capital contributions
—
91,512
—
91,512
Transfers in
—
262,006
285,000
547,006
Transfers out
(105,421)
(28,956)
—
(134,377)
Total capital contributions and transfers
(105,421)
324,562
285,000
504,141
CHANGE IN NET POSITION
315,588
(880,537)
371,315
(193,634)
NET POSITION
Beginning of year
30,111,067
31,389,524
13,162,856
74,663,447
End of year
$ 30,426,655
$ 30,508,987
$ 13,534,171
$ 74,469,813
137
City of Chandler
Combining Statement of Cash Flows -
Non-Major Proprietary Funds
For the year ended June 30, 2021
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
17,535,604
$
988,652
$
1,491,339
$
20,015,595
Cash received from grantors
—
(33,600)
7,980,864
7,947,264
Cash payments to suppliers
(14,425,205)
(520,538)
(6,976,176)
(21,921,919)
Cash payments to employees for services
(1,793,702)
(582,018)
(1,626,856)
(4,002,576)
Net cash provided (used) by operating activities
1,316,697
(147,504)
869,171
2,038,364
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
—
262,006
285,000
547,006
Transfers out
(105,421)
(28,956)
—
(134,377)
Net cash provided (used) by noncapital financing activities
(105,421)
233,050
285,000
412,629
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(518,441)
(154,273)
(198,986)
(871,700)
Net cash provided (used) by capital and related financing activities
(518,441)
(154,273)
(198,986)
(871,700)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
10,849
2
12,623
23,474
Net cash provided (used) by investing activities
10,849
2
12,623
23,474
Net increase (decrease) in cash and cash equivalents
703,684
(68,725)
967,808
1,602,767
CASH AND CASH EQUIVALENTS:
Beginning of year
20,989,367
98,469
7,274,593
28,362,429
End of year
$
21,693,051
$
29,744
$
8,242,401
$
29,965,196
138
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
439,741
$
(1,205,101) $
82,695
$
(682,665)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
611,341
1,071,710
597,473
2,280,524
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
48,855
352
(9,283)
39,924
(Increase) decrease in due from other governments
—
(33,600)
—
(33,600)
(Increase) decrease in inventories
—
(29,118)
—
(29,118)
(Increase) decrease in other assets
—
—
(150,855)
(150,855)
Increase (decrease) in payables
182,274
24,009
(11,191)
195,092
Increase (decrease) in accrued payroll and compensated absences
16,501
12,923
9,841
39,265
Increase (decrease) in deposits
—
9,770
42,705
52,475
Increase (decrease) in customer advances
6,699
(3,093)
148,555
152,161
Increase (decrease) in net pension items
(82,565)
(27,654)
72,302
(37,917)
Increase (decrease) in OPEB liability
93,851
32,298
86,929
213,078
Total adjustments
876,956
1,057,597
786,476
2,721,029
Net cash provided (used) by operating activities
$
1,316,697
$
(147,504) $
869,171
$
2,038,364
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets from city government
$
—
$
91,512
$
—
$
91,512
139
140
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
Statistical Section
“The Future’s in Sight”
Chandler’s employees are passionate about serving the
community and businesses. This team of professionals bring
innovation and quality to the customer service experience.
Statistical Section
Statistical Section
CITY OF CHANDLER, ARIZONA
Statistical Section
This part of the City of Chandler’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
142
Schedules 1-6 contain information to help the reader understand how the City’s
financial performance and well-being have changed over time.
Revenue Capacity
158
Schedules 7-9 contain information to help the reader assess the factors affecting the
City's ability to generate its sales and use tax.
Debt Capacity
162
Schedules 10-13b present information to help the reader assess the affordability of
the City's current levels of outstanding debt and the City's ability to issue additional
debt in the future. Schedules 14-30 provide additional information for continuing
disclosure purposes.
Demographic and Economic Information
186
Schedules 31-32 offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place
and to help make comparisons over time and with other governments.
Operating Information
188
Schedules 33-35 contain information about the City’s operations and resources to
help the reader understand how the City's financial information 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 reports for the relevant year.
141
CITY OF CHANDLER, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Governmental activities
Net investment in capital assets
$
545,926,100
$
558,279,485
$
563,033,503
$
567,041,560
Restricted
44,047,942
112,307,412
105,723,768
108,965,994
Unrestricted
259,783,598
179,518,042
183,088,676
7,709,550
Total governmental activities net
position
849,757,640
850,104,939
851,845,947
683,717,104
Business-type activities
Net investment in capital assets
280,440,445
355,015,004
388,837,444
380,427,606
Restricted
—
—
—
119,075
Unrestricted
179,339,498
176,961,822
206,284,498
217,824,645
Total business-type activities net
position
459,779,943
531,976,826
595,121,942
598,371,326
Primary government
Net investment in capital assets
826,366,545
913,294,489
951,870,947
947,469,166
Restricted
44,047,942
112,307,412
105,723,768
109,085,069
Unrestricted
439,123,096
356,479,864
389,373,174
225,534,195
Total primary government net
position
$ 1,309,537,583
$ 1,382,081,765
$ 1,446,967,889
$ 1,282,088,430
142
Schedule 1
Fiscal Year
2016
2017
2018
2019
2020
2021
$
579,591,241
$
587,213,640
$
536,086,249
$
575,953,033
$
547,511,826
$
555,107,220
121,767,847
122,006,140
168,510,855
173,490,725
191,839,529
189,214,016
(5,872,464)
(36,358,845)
(65,575,548)
(72,592,489)
(8,655,932)
(6,761,531)
695,486,624
672,860,935
639,021,556
676,851,269
730,695,423
737,559,705
342,252,306
439,823,546
467,799,036
481,911,949
477,329,239
458,616,595
31,365,801
32,977,926
33,447,434
31,523,149
33,750,526
32,154,205
258,806,679
176,390,803
243,735,547
249,131,813
267,005,635
299,755,652
632,424,786
649,192,275
744,982,017
762,566,911
778,085,400
790,526,452
921,843,547
1,027,037,186
1,003,885,285
1,057,864,982
1,024,841,065
1,013,723,815
153,133,648
155,184,734
201,958,289
205,013,874
225,590,055
221,368,221
252,934,215
139,831,290
178,159,999
176,539,324
258,349,703
292,994,121
$ 1,327,911,410
$ 1,322,053,210
$ 1,384,003,573
$ 1,439,418,180
$ 1,508,780,823
$ 1,528,086,157
143
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Expenses
Governmental activities:
General government
$
88,876,901
$
90,143,339
$
99,231,501
$
104,456,315
Public safety
89,141,559
95,974,126
94,738,371
102,050,425
Transportation and development
52,111,019
55,846,316
52,183,052
51,714,085
Community services
28,966,271
30,979,208
32,331,286
31,784,321
Interest and fiscal charges
12,425,819
11,777,701
10,044,363
6,986,490
Total governmental activities
expenses
271,521,569
284,720,690
288,528,573
296,991,636
Business-type activities:
Water
56,277,327
55,440,712
55,877,774
55,470,724
Wastewater
38,804,360
40,401,849
41,969,764
50,823,497
Solid waste
13,756,352
13,974,858
14,131,202
14,087,780
Airport
1,941,752
1,960,788
1,980,706
1,860,057
Chandler housing authority
7,642,503
7,473,891
7,616,301
7,433,284
Total business-type activities
expenses
118,422,294
119,252,098
121,575,747
129,675,342
Total primary government expenses
$
389,943,863
$
403,972,788
$
410,104,320
$
426,666,978
144
Schedule 2a
Fiscal Year
2016
2017
2018
2019
2020
2021
$
112,514,903
$
104,998,802
$
113,587,478
$
114,373,302
$
138,850,297
$
162,849,542
111,568,323
149,366,614
112,371,723
124,906,187
109,544,169
122,146,366
55,012,081
56,752,197
55,287,494
53,806,473
59,777,330
58,847,053
31,441,019
32,599,549
36,824,102
36,990,853
38,195,563
39,565,719
7,884,146
6,623,830
6,716,119
7,046,655
6,885,184
6,653,197
318,420,472
350,340,992
324,786,916
337,123,470
353,252,543
390,061,877
54,075,742
63,236,746
61,513,990
58,297,769
60,330,758
62,049,102
51,034,921
58,112,931
60,605,779
61,218,775
66,788,084
62,753,454
13,925,017
14,380,178
14,531,558
15,221,985
16,522,728
17,040,309
2,011,880
1,893,830
1,841,718
2,038,417
2,382,288
2,186,724
7,267,806
7,728,876
8,109,635
8,478,235
8,710,570
9,207,531
128,315,366
145,352,561
146,602,680
145,255,181
154,734,428
153,237,120
$
446,735,838
$
495,693,553
$
471,389,596
$
482,378,651
$
507,986,971
$
543,298,997
145
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Program Revenues
Governmental activities:
Charges for services:
General government
$ 31,381,062
$ 35,898,378
$ 38,832,217 $ 39,207,061
Public safety
5,794,329
7,375,050
5,861,044
6,469,215
Transportation and development
27,905,311
10,150,102
16,145,692
14,438,138
Community services
4,136,285
8,240,732
7,744,507
7,551,166
Operating grants and contributions
6,162,320
3,999,536
4,744,636
3,514,714
Capital grants and contributions
11,016,136
9,116,635
10,170,236
13,133,637
Total governmental activities program
revenues
86,395,443
74,780,433
83,498,332
84,313,931
Business-type activities:
Charges for services:
Water
49,565,071
48,258,282
49,588,376
48,045,103
Wastewater
35,907,085
37,690,400
40,509,289
45,666,777
Solid waste
13,890,957
13,836,363
14,034,894
14,140,246
Airport
996,605
976,102
961,067
1,010,288
Chandler housing authority
466,556
637,329
806,540
877,380
Operating grants and contributions
6,341,087
5,785,335
5,457,991
5,862,477
Capital grants and contributions
19,118,567
81,572,568
72,176,582
35,357,741
Total business-type activities program
revenues
126,285,928
188,756,379
183,534,739 150,960,012
Total primary government program
revenues
$ 212,681,371
$ 263,536,812
$ 267,033,071 $ 235,273,943
Net (expense)/revenue
Governmental activities
$ (185,126,126) $ (209,940,257) $ (205,030,041) $ (212,677,705)
Business-type activities
7,863,634
69,504,281
61,958,992
21,284,670
Total primary government net (expense)
$ (177,262,492) $ (140,435,976) $ (143,071,049) $ (191,393,035)
146
Schedule 2b
Fiscal Year
2016
2017
2018
2019
2020
2021
$
42,021,638
$
41,400,079
$
43,089,930
$
43,622,807
$
43,203,865
$
42,011,670
7,471,344
6,561,052
6,100,584
4,998,779
6,512,002
5,073,984
16,538,175
16,333,273
17,145,894
14,869,670
16,420,652
14,266,302
10,792,114
10,732,351
9,180,276
7,583,513
5,623,796
5,437,401
5,188,787
4,481,750
3,988,629
4,522,345
31,052,185
18,694,567
16,725,462
9,702,683
9,340,818
10,510,464
18,714,457
16,573,341
98,737,520
89,211,188
88,846,131
86,107,578
121,526,957
102,057,265
50,483,097
53,251,020
54,031,592
52,459,720
54,722,296
58,755,999
51,321,346
53,563,934
56,367,650
56,055,131
61,531,949
61,971,940
14,940,591
15,648,992
16,307,409
16,107,922
16,757,829
17,480,050
946,419
950,294
963,827
906,557
880,194
893,268
946,408
954,070
1,085,013
1,155,430
1,188,570
1,262,966
5,784,021
6,198,797
6,350,858
7,224,669
7,137,950
7,965,078
32,690,364
27,645,932
22,360,158
18,335,155
14,190,016
14,355,873
157,112,246
158,213,039
157,466,507
152,244,584
156,408,804
162,685,174
$
255,849,766
$
247,424,227
$
246,312,638
$
238,352,162
$
277,935,761
$
264,742,439
$ (219,682,952) $ (261,129,804) $ (235,940,785) $ (251,015,892) $ (231,725,586) $ (288,004,612)
28,796,880
12,860,478
10,863,827
6,989,403
1,674,376
9,448,054
$ (190,886,072) $ (248,269,326) $ (225,076,958) $ (244,026,489) $ (230,051,210) $ (278,556,558)
147
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Governmental Revenues and
Other Changes in Net Position
Governmental activities:
Property taxes
$
31,877,716
$
29,656,415
$
28,348,952
$
28,708,033
Sales taxes
97,485,387
102,200,517
103,880,801
108,657,130
Highway user taxes
11,823,280
12,929,504
13,352,622
14,633,470
Other taxes
5,979,715
6,295,212
3,243,937
10,106,891
Franchise fees
2,988,456
2,936,533
3,145,449
3,300,129
State shared
45,958,627
51,347,206
55,423,759
59,236,588
Investment income
1,221,923
2,843,417
1,869,128
1,763,585
Miscellaneous
1,116,832
2,181,627
819,766
1,197,215
Transfers in (out)
(74,075)
(102,875)
(132,082)
(123,350)
Total governmental activities
198,377,861
210,287,556
209,952,332
227,479,691
Business-type activities:
Sales taxes
—
—
70,065
10,865
Investment income
389,446
1,180,290
788,025
819,556
Miscellaneous
1,351,829
1,409,437
1,683,332
2,475,760
Transfers in (out)
74,075
102,875
132,082
123,350
Total business-type activities:
1,815,350
2,692,602
2,673,504
3,429,531
Total primary government
$
200,193,211
$
212,980,158
$
212,625,836
$
230,909,222
Change in Net Position
Governmental activities
$
13,251,735
$
347,299
$
4,922,291
$
14,801,986
Business-type activities
9,678,984
72,196,883
64,632,496
24,714,201
Total primary government
$
22,930,719
$
72,544,182
$
69,554,787
$
39,516,187
148
Schedule 2c
Fiscal Year
2016
2017
2018
2019
2020
2021
$
29,214,103
$
29,837,763
$
30,816,495
$
32,550,250
$
34,419,182
$
36,371,978
112,250,883
120,189,651
127,584,410
139,851,355
140,644,918
157,513,686
15,303,635
16,683,743
16,135,949
17,301,902
16,996,911
18,108,310
6,100,475
664,616
940,203
866,267
1,153,237
2,226,568
3,344,817
3,285,267
3,571,744
3,567,184
3,441,225
3,823,524
60,712,442
65,924,228
64,723,211
67,156,430
70,769,943
80,699,253
3,834,840
1,063,997
1,531,766
14,822,135
16,951,295
584,026
1,124,559
1,014,665
1,502,418
1,261,279
2,085,020
1,820,520
(433,282)
(159,815)
(4,175,579)
(90,680)
(891,991)
105,991
231,452,472
238,504,115
242,630,617
277,286,122
285,569,740
301,253,856
10,391
10,682
13,769
17,347
15,521
16,516
2,180,447
938,491
854,848
7,742,589
9,974,135
249,448
2,632,460
2,798,023
14,923,212
2,842,825
2,962,466
2,833,025
433,282
159,815
4,175,579
90,680
891,991
(105,991)
5,256,580
3,907,011
19,967,408
10,693,441
13,844,113
2,992,998
$
236,709,052
$
242,411,126
$
262,598,025
$
287,979,563
$
299,413,853
$
304,246,854
$
11,769,520
$
(22,625,689) $
6,689,832
$
26,270,230
$
53,844,154
$
13,249,244
34,053,460
16,767,489
30,831,235
17,682,844
15,518,489
12,441,052
$
45,822,980
$
(5,858,200) $
37,521,067
$
43,953,074
$
69,362,643
$
25,690,296
149
CITY OF CHANDLER, ARIZONA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
General fund
Nonspendable
$
947,804
$
938,549
$
892,533
$
941,359
Restricted
939,867
939,867
1,166,105
1,792,180
Assigned
102,635,587
101,115,766
95,185,696
102,222,466
Unassigned
69,223,074
66,077,714
82,453,462
80,152,269
Total general fund
$
173,746,332
$
169,071,896
$
179,697,796
$
185,108,274
All other governmental funds
Nonspendable
—
—
—
—
Restricted
111,378,788
111,367,545
104,557,663
107,173,814
Unassigned
(12,798,348)
(13,646,428)
(11,034,021)
(15,322,260)
Total all other governmental funds
$
98,580,440
$
97,721,117
$
93,523,642
$
91,851,554
150
Schedule 3
Fiscal Year
2016
2017
2018
2019
2020
2021
$
907,594
$
979,446
$
813,143
$
866,239
$
985,396
$
1,051,638
1,566,618
1,451,061
1,980,807
2,179,767
1,710,608
1,711,242
109,958,162
101,620,277
116,359,633
131,214,214
139,326,860
143,763,585
68,567,835
87,492,981
65,182,337
66,035,760
90,887,858
96,065,934
$
181,000,209
$
191,543,765
$
184,335,920
$
200,295,980
$
232,910,722
$
242,592,399
$
—
$
7,422
$
—
$
—
$
—
$
—
120,201,229
120,640,190
166,570,330
171,310,958
190,128,921
187,759,476
(11,877,159)
(11,350,383)
(2,555,420)
(5,758,986)
(7,697,792)
(7,226,577)
$
108,324,070
$
109,297,229
$
164,014,910
$
165,551,972
$
182,431,129
$
180,532,899
151
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Property taxes
$
32,329,560
$
29,841,739
$
28,442,823
$
28,899,684
Sales taxes
97,485,387
102,200,517
103,880,801
108,657,130
Highway user taxes
11,823,280
12,929,504
13,352,622
14,633,470
Other taxes
5,979,715
6,295,212
3,243,937
10,106,891
Franchise fees
2,988,456
2,936,533
3,145,449
3,300,129
State shared revenues
45,958,627
51,347,206
55,423,759
59,236,588
Grants and entitlements
13,826,606
9,480,090
10,187,895
10,638,831
System development fees
11,724,823
7,781,083
11,846,275
10,585,623
Special assessments
678,027
676,127
678,843
573,438
Licenses and permits
6,955,605
4,887,466
5,479,384
5,146,556
Charges for services
19,938,566
19,786,513
20,269,976
20,110,036
Fines and forfeitures
4,700,430
5,825,098
4,622,215
4,601,501
Rentals
455,842
570,638
732,807
751,163
Contributions
100,000
100,000
100,000
150,000
Interest revenue
1,034,895
2,529,078
1,623,973
1,562,241
Miscellaneous
1,392,691
1,384,123
650,117
572,252
Total revenues
$
257,372,510
$
258,570,927
$
263,680,876
$
279,525,533
152
Schedule 4
Fiscal Year
2016
2017
2018
2019
2020
2021
$
29,237,607
$
29,692,846
$
30,819,812
$
32,526,357
$
34,334,216
$
36,409,345
112,250,883
120,189,651
127,584,410
139,851,355
140,644,918
157,513,686
15,303,635
16,683,743
16,135,949
17,301,902
16,996,911
18,108,310
6,100,475
664,616
940,203
866,267
1,153,237
2,226,568
3,344,817
3,285,267
3,571,744
3,567,184
3,441,225
3,823,524
60,712,442
65,924,228
64,723,211
67,156,430
70,769,943
80,699,253
16,159,064
12,677,860
12,111,857
11,911,639
49,719,415
29,417,028
16,217,004
14,683,327
13,982,674
9,023,678
8,730,973
8,207,728
606,757
607,191
611,499
610,501
508,485
587,020
6,634,161
7,075,996
6,394,322
7,268,592
7,760,403
6,656,737
19,705,786
20,869,517
21,827,375
21,512,737
20,355,702
19,631,389
4,828,174
3,908,387
4,865,783
4,234,286
5,571,322
2,920,173
974,192
678,387
127,575
127,206
213,345
174,766
200,000
200,000
200,000
200,000
596,153
5,201,737
3,409,065
921,195
1,398,729
13,268,020
15,017,352
533,383
897,102
494,984
974,107
923,369
1,471,977
1,105,070
$
296,581,164
$
298,557,195
$
306,269,250
$
330,349,523
$
377,285,577
$
373,215,717
153
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
General government
$ 48,894,811
$ 44,512,533
$ 46,807,747
$ 46,895,106
Public safety
82,820,106
89,587,613
90,068,218
93,773,306
Transportation and development
25,532,739
24,807,578
23,418,175
24,769,553
Community services
23,255,568
23,554,854
23,771,925
24,569,283
Capital improvements
29,787,069
41,793,319
45,657,265
56,539,116
Debt service:
Principal retirement
15,970,000
26,870,000
15,955,000
21,490,000
Interest and fiscal charges
12,550,323
11,908,025
10,682,206
7,737,974
Bond issuance costs
—
—
145,970
722,293
Total expenditures
$ 238,810,616
$ 263,033,922
$ 256,506,506
$ 276,496,631
Debt service as a percentage of
noncapital expenditures
13.5 %
16.4 %
11.6 %
11.7 %
(1)
In FY 2017, the City called the remaining payments for the 2007 GO Refunding issuance totaling $8,110,000.
154
Schedule 5
Fiscal Year
2016
2017
2018
2019
2020
2021
$ 52,138,384
$ 50,892,490
$ 55,706,708
$ 58,070,201
$ 79,624,174
$ 93,482,842
104,605,663
103,167,906
109,736,277
111,496,663
113,166,600
119,357,759
25,471,154
28,294,221
27,750,365
25,871,080
30,117,735
31,640,566
24,988,844
26,605,279
27,088,640
27,712,871
28,344,665
29,084,081
50,009,243
44,712,255
71,268,257
69,006,722
77,024,413
61,907,124
17,465,000
25,240,000
(1)
20,264,000
22,820,000
21,340,000
19,980,000
8,635,631
7,689,305
7,918,081
8,270,161
8,073,320
7,801,885
—
249,838
252,611
—
319,631
—
$ 283,313,919
$ 286,851,294
$ 319,984,939
$ 323,247,698
$ 358,010,538
$ 363,254,257
10.2 %
12.9 %
10.4 %
11.3 %
9.5 %
8.0 %
155
CITY OF CHANDLER, ARIZONA
OTHER FINANCING SOURCES AND USES AND NET CHANGES IN FUND BALANCE -
GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2012
2013
2014
2015
Other Financing Sources (Uses)
Bond premium
$
— $
— $
562,052 $
17,045,635
Face amount of bonds issued
—
—
8,660,000
128,254,000
Proceeds from disposal of capital
assets
89,007
76,381
161,126
103,964
Payment to escrow agent
—
—
(9,061,800)
(143,635,520)
Transfers in
20,576,188
32,849,979
24,586,418
28,717,990
Transfers out
(22,685,504)
(33,997,394)
(25,653,741)
(29,776,581)
Total other financing sources (uses)
(2,020,309)
(1,071,034)
(745,945)
709,488
Net change in fund balance
$
16,541,585 $
(5,533,759) $
6,428,425 $
3,738,390
156
Schedule 6
Fiscal Year
2016
2017
2018
2019
2020
2021
$
—
$
6,339,230
$
3,609,365
$
—
$
2,927,904
$
—
—
25,500,000
58,740,000
—
30,400,000
—
463,709
652,882
213,829
1,356,796
396,924
225,081
—
(31,589,392)
—
—
—
—
27,885,557
28,116,369
46,032,351
45,484,505
39,282,296
44,961,787
(29,252,060)
(29,208,275)
(47,370,020)
(48,005,487)
(42,788,264)
(47,364,881)
(902,794)
(189,186)
61,225,525
(1,164,186)
30,218,860
(2,178,013)
$
12,364,451
$
11,516,715
$
47,509,836
$
5,937,639
$
49,493,899
$
7,783,447
157
CITY OF CHANDLER, ARIZONA
TAXABLE REVENUE BY CATEGORY
LAST TEN FISCAL YEARS
Fiscal Year
2012
2013
2014
2015
Amusements
$
714,641
$
717,442
$
728,110
$
895,730
Contracting
10,869,566
10,408,518
9,780,645
8,870,092
General Retail
42,844,871
45,331,307
47,454,682
49,740,000
Hotel/Motel
2,255,786
2,288,989
2,472,754
2,892,470
Miscellaneous Related Revenue (1)
2,334,179
2,937,426
2,660,201
2,815,040
Publishing
352,550
334,981
258,547
260,712
Rentals - Personal Property
2,606,371
2,884,618
2,949,421
3,261,716
Rentals - Real Property
10,025,726
10,817,611
11,058,203
11,967,509
Restaurant/Bar
8,670,199
9,069,109
9,542,714
10,188,718
Telecommunications
3,628,007
3,731,350
3,533,636
3,435,949
Use Tax
1,054,968
1,315,599
1,090,428
1,145,534
Proposition 207
—
—
—
—
Utilities
12,128,475
12,363,565
12,421,526
13,194,526
Total Sales and Use Taxes
$
97,485,339
$
102,200,515
$
103,950,867
$
108,667,996
City Direct Sales Tax Rate (2)
1.76%
1.75%
1.75%
1.76%
Source: City of Chandler, Management Services Department
(1) Includes license application fees, annual license fees, audit assessments, penalties and interest.
(2) The direct tax rate was calculated using a weighted average of the actual revenues collected for each
category. Tax rates vary by category, currently ranging from 1.5% to 4.4%.
(3) In Fiscal Year 2018-19, the City did a restatement to record prior year privilege tax receivables not
previously accrued; prior years have not been restated.
158
Schedule 7
Fiscal Year
2016
2017
2018
2019
(3)
2020
2021
$
1,019,939
$
1,019,938
$
1,083,161
$
1,318,195
$
972,105
$
789,411
8,855,057
11,496,791
12,388,978
17,228,786
12,824,214
14,446,470
51,191,162
53,137,169
56,605,561
60,029,293
64,911,529
75,590,425
2,957,685
3,424,279
3,712,085
4,099,450
3,560,787
3,215,504
2,745,130
2,527,981
2,328,030
1,757,235
1,710,004
2,152,443
248,433
186,862
182,820
207,462
177,542
197,578
3,125,459
3,611,180
3,676,196
4,076,298
4,282,451
3,760,815
13,217,561
13,647,156
15,134,275
16,506,671
18,184,361
19,214,217
10,752,479
11,341,714
11,872,941
12,773,198
11,978,625
13,099,159
3,234,369
2,796,065
2,395,673
2,191,747
2,337,375
1,751,284
1,127,257
3,619,340
4,394,129
5,461,771
5,335,557
7,636,473
—
—
—
—
—
256,702
13,786,741
13,391,857
13,824,331
14,218,596
14,385,889
15,419,721
$ 112,261,272
$ 120,200,332
$ 127,598,180
$ 139,868,702
$ 140,660,439
$ 157,530,202
1.76%
1.75%
1.74%
1.74%
1.73%
1.70%
159
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING SALES AND USE TAX RATES
LAST TEN FISCAL YEARS
Schedule 8
Overlapping Rates
Tourism
& Sports
City Direct
Maricopa County
State of Arizona
Authority
Fiscal Year
Tax Rate (1)
Tax Rate (2)
Tax Rate (3)
Tax Rate (4)
2012
1.76%
0.67%
5.90%
0.02%
2013
1.75%
0.67%
5.80%
0.02%
2014
1.75%
0.67%
4.99%
0.02%
2015
1.76%
0.67%
4.96%
0.03%
2016
1.76%
0.67%
4.92%
0.03%
2017
1.75%
0.66%
4.95%
0.03%
2018
1.74%
0.65%
4.92%
0.03%
2019
1.74%
0.65%
4.93%
0.03%
2020
1.73%
0.65%
4.86%
0.03%
2021
1.70%
0.64%
4.90%
0.02%
Source: City of Chandler, Management Services Department
(1) The City's direct tax rate was calculated using a weighted average of the actual revenues collected for each
category. Tax rates vary by category, currently ranging from 1.5% to 4.4%. City tax rates were last increased
effective May 1, 1994.
(2) The overlapping County tax rate was calculated using a weighted average of the actual revenues the City
collected for each category. Tax rates vary by category, currently ranging from 0.5% to 0.77%. No rate
changes have occurred in the past ten fiscal years.
(3) The overlapping State tax rate was calculated using a weighted average of the actual revenues the City
collected for each category. Tax rates vary by category, currently ranging from 5.5% to 5.6%. State tax rate
increases during the past ten fiscal years: 1.0% effective June 1, 2011 through May 31, 2013.
(4) The Tourism & Sports Authority (TSA) was authorized by Maricopa County voters on November 7, 2000. An
additional tax rate of 1.0% is to be levied from March 1, 2001 through February 28, 2031. The only category
the overlapping tax rate applies to is the Hotel/Motel category. The overlapping tax rate is calculated using a
weighted average of the actual revenues the City collected for this category.
160
CITY OF CHANDLER, ARIZONA
PRINCIPAL SALES AND USE TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
Schedule 9
Fiscal Year 2021
Fiscal Year 2012
Percentage
Percentage
of Total
of Total
Sales and
Sales and
Sales and
Sales and
Use Tax
Use Tax
Use Tax
Use Tax
Taxpayer
Business Type
Payments
Rank
Payments
Payments
Rank
Payments
Taxpayer A
Utility
$ 12,051,030
1
7.66%
$
9,698,254
1
9.95%
Taxpayer B
Department Store
5,012,264
2
3.19%
2,783,551
3
2.86%
Taxpayer C
Grocery Store
3,504,521
3
2.23%
2,259,487
4
2.32%
Taxpayer D
Department Store
3,195,811
4
2.03%
1,675,623
5
1.72%
Taxpayer E
Retailer
3,050,251
5
1.94%
Taxpayer F
Retailer
2,705,069
6
1.72%
1,307,482
6
1.34%
Taxpayer G
Retailer
2,397,065
7
1.52%
Taxpayer H
Vehicle Dealer
2,164,678
8
1.38%
Taxpayer I
Commercial Leasing
1,749,006
9
1.11%
Taxpayer J
Utility
1,591,028
10
1.01%
1,272,878
8
1.31%
Taxpayer K
Construction
3,823,373
2
3.92%
Taxpayer L
Telecommunications
1,306,045
7
1.34%
Taxpayer M
Department Store
1,255,294
9
1.29%
Taxpayer N
Department Store
1,157,789
10
1.19%
$ 37,420,723
23.79%
$
26,539,776
27.22%
Source: City of Chandler, Management Services Department
Note: The identities of the ten largest revenue payers are prohibited from disclosure per state statute.
Alternatively, the business type of the top ten taxpayers for each period has been disclosed along with the
appropriate data.
161
CITY OF CHANDLER, ARIZONA
RATIOS OF OUTSTANDING DEBT
LAST TEN FISCAL YEARS
Schedule 10
Governmental Activities
Special
General
Revenue
Assessment
General
Special
Obligation
Bonds
Bonds
Fiscal
Obligation
Assessment
Bond Issuance
Issuance
Issuance
Year
Bonds
Revenue Bonds
Bonds
Premiums
Premiums
Premiums
2012
$
268,148,000
$
25,745,000
$
5,780,000
$
—
$
—
$
—
2013
256,288,000
22,045,000
5,350,000
—
—
—
2014
233,678,000
18,000,000
4,905,000
3,539,600
707,337
99,258
2015
222,143,000
14,025,000
4,440,000
17,244,108
565,869
88,230
2016
205,088,000
10,055,000
3,960,000
15,663,687
424,402
77,201
2017
186,873,000
6,685,000
3,460,000
19,829,438
282,935
66,172
2018
223,288,000
4,270,000
2,940,000
21,269,309
141,468
55,140
2019
205,764,000
2,050,000
2,395,000
19,097,787
—
44,112
2020
215,939,000
—
1,830,000
19,756,588
—
33,084
2021
195,164,000
—
1,245,000
17,526,932
—
22,056
Business-type Activities
Excise Tax
General
Revenue
Revenue
General
Excise Tax
Obligation
Bonds
Obligations
Fiscal
Obligation
Revenue
Bond Issuance
Issuance
Issuance
Year
Bonds
Revenue Bonds
Obligations
Premiums
Premiums
Premiums
2012
$
170,987,000
$
52,670,000
$
47,440,000
$
—
$
—
$
—
2013
161,567,000
44,740,000
45,695,000
—
—
—
2014
150,972,000
36,095,000
148,380,000
2,220,807
1,705,732
8,502,636
2015
140,072,000
31,610,000
142,200,000
11,567,086
1,324,131
8,040,688
2016
127,782,000
24,850,000
204,090,000
10,630,056
832,855
11,447,974
2017
115,722,000
9,595,000
198,520,000
12,263,924
624,642
15,075,185
2018
105,707,000
7,845,000
230,635,000
11,025,887
416,428
17,271,299
2019
95,901,000
4,685,000
222,575,000
9,898,570
202,401
15,979,766
2020
86,261,000
2,340,000
228,985,000
8,773,210
—
16,850,597
2021
76,936,000
—
219,780,000
7,647,850
—
15,312,526
Percentage
Estimated
of Estimated
Less Amount
Actual
Actual
Total
Available in
Net General
Taxable
Taxable
Primary
Percentage
Fiscal
General
Debt
Bonded Debt
Value of
Value of
Government
of Personal
Per
Year
Bonded Debt
Service Fund
Outstanding
Property
Property
(1)
Income (2)
Capita (2)
2012
$ 439,135,000
$ 19,258,684
$ 419,876,316
$ 21,102,582,630
1.99%
$ 570,770,000
7.84%
2,383
2013
417,855,000
16,419,386
401,435,614
21,502,506,694
1.87%
535,685,000
6.71%
2,213
2014
390,410,407
16,186,172
374,224,235
23,588,561,444
1.59%
608,805,370
7.76%
2,521
2015
391,026,194
14,910,017
376,116,177
29,230,173,658
1.29%
593,320,112
7.15%
2,397
2016
359,163,743
15,281,782
343,881,961
31,514,093,091
1.09%
614,901,176
7.35%
2,465
2017
334,688,362
8,981,699
325,706,663
32,319,847,780
1.01%
568,997,296
6.20%
2,128
2018
361,290,196
7,451,989
353,838,207
33,265,569,654
1.06%
624,864,531
6.24%
2,267
2019
330,661,357
4,586,562
326,074,795
36,899,750,596
0.88%
578,592,636
5.73%
2,215
2020
330,729,798
4,693,193
326,036,605
40,890,232,930
0.80%
580,768,479
5.45%
2,192
2021
297,274,782
5,758,393
291,516,389
44,808,678,880
0.65%
533,634,364
4.56%
1,905
Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements.
(1) Includes general bonded debt, other governmental activities debt and business-type activities debt.
(2) Population and personal income data can be found in Schedule 31.
162
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2021
Schedule 11
Estimated
Estimated Share
Debt
Percentage
of Overlapping
Governmental Unit
Outstanding
Applicable
Debt
Debt repaid with property taxes
State of Arizona
None
4.64 %
None
Maricopa County
None
7.10
None
Maricopa County Community College District
$
184,715,000
7.10
$
13,108,223
Maricopa County Special Healthcare District
640,269,000
7.10
45,436,424
Chandler Unified School District No. 80
385,946,000
27.82
50,905,198
Kyrene Elementary School District No. 28
182,955,000
4.27
11,773,993
Mesa Unified School District No. 4
275,525,000
2.60
2,925,713
Gilbert Unified School District No. 41
112,360,000
69.92
269,859,611
East Valley Institute of Technology
None
15.90
None
Subtotal, overlapping debt
394,009,162
City direct debt
213,957,988
100.00
213,957,988
Total direct and overlapping debt
$
607,967,150
Source: Piper Sandler Companies
Note: The applicable percentage of overlap for each type of debt was computed on the net limited property
assessed valuation as calculated for fiscal year 2020-21 for the overlapping jurisdiction to the amount of such
valuation which lies within the City of Chandler.
163
CITY OF CHANDLER, ARIZONA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year
2012
2013
2014
2015
6% General Obligation Bond Limitation
Debt limit
$ 135,310,758 $ 130,522,600 $ 142,895,404 $ 142,827,478
Total net debt applicable to limit
11,840,000
10,869,000
10,198,000
9,848,400
Legal debt margin
$ 123,470,758 $ 119,653,600 $ 132,697,404 $ 132,979,078
Total net debt applicable to the limit as a
percentage of the debt limit
8.75%
8.33%
7.14%
6.90%
20% General Obligation Bond Limitation
Debt limit
$ 451,035,860 $ 435,075,335 $ 476,318,016 $ 476,091,596
Total net debt applicable to limit
427,295,000 406,986,000 374,452,000 352,366,600
Legal debt margin
$ 23,740,860 $ 28,089,335 $ 101,866,016 $ 123,724,996
Total net debt applicable to the limit as a
percentage of the debt limit
94.74%
93.54%
78.61%
74.01%
Fiscal Year 2010-11 through Fiscal Year 2018-19: Piper Jaffray Inc.
Fiscal Year 2019-20 through Fiscal Year 2020-21: Piper Sandler Companies
Note: Under Arizona law, cities may issue general obligation bonds for purposes of water, wastewater, artificial light, open
space preserves, parks, public safety and emergency services, streets, transportation, playgrounds and recreational facilities
up to an amount not to exceed 20 percent of secondary assessed valuation. Cities may issue general obligation bonds for
any other purpose up to an amount not to exceed 6 percent of secondary assessed valuation. Prior to Fiscal Year 2016, the
Assessed Valuation was based on the Net Assessed Secondary Value. Due to a change in the legislation (Proposition 117), in
Fiscal Year 2016, the City is required to use the Limited Property Value. The net (or excess) premium reflected was utilized for
project fund purposes and is being amortized according to Arizona Revised Statutes, Title 35, Chapter 3, Article 3, 35-457 (E).
164
Schedule 12
Legal Debt Margin Calculation for Fiscal Year 2021
Full Cash Assessed Valuation as of June 30, 2021
$ 4,682,558,944
Debt limit (6% of assessed value)
280,953,536
Debt applicable to limit:
6% general obligation bonds
6,519,850
Excess premium on bonds outstanding
239,656
Legal 6% debt margin
$
274,194,030
Debt limit (20% of assessed value)
$
936,511,789
Debt applicable to limit:
20% general obligation bonds
265,580,150
Excess premium on bonds outstanding
11,493,592
Legal 20% debt margin
$
659,438,047
Fiscal Year
2016
2017
2018
2019
2020
2021
$
190,024,847 $
198,432,895 $
209,370,282 $
232,258,669 $
258,505,031 $
280,953,536
9,427,250
8,952,650
14,974,350
12,511,300
9,772,578
6,759,506
$
180,597,597 $
189,480,245 $
194,395,932 $
219,747,369 $
248,732,453 $
274,194,030
4.96%
4.51%
7.15%
5.39%
3.78%
2.41%
$
633,416,159 $
661,442,986 $
697,900,943 $
774,195,564 $
861,683,439 $
936,511,789
323,442,750
300,592,650
324,166,628
298,881,202
303,956,132
277,073,742
$
309,973,409 $
360,850,336 $
373,734,315 $
475,314,362 $
557,727,307 $
659,438,047
51.06%
45.44%
46.45%
38.61%
35.27%
29.59%
165
CITY OF CHANDLER, ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Schedule 13a
Street & Highway Revenue Bonds
Less:
Fiscal
Highway User
Operating
Net Available
Debt Service
Year
Taxes
Expenses
Revenue
Principal
Interest
Coverage
2012
$
11,823,280
$
7,895,663
$
3,927,617
$
3,700,000
$
936,975
0.85
2013
12,929,504
10,893,216
2,036,288
3,830,000
833,475
0.44
2014
13,352,622
10,547,032
2,805,590
3,975,000
515,175
0.62
2015
14,633,470
8,257,078
6,376,392
3,970,000
462,047
1.44
2016
15,303,635
11,951,019
3,352,616
3,370,000
375,650
0.90
2017
16,683,743
10,887,942
5,795,801
2,415,000
256,438
2.17
2018
16,135,949
12,073,072
4,062,877
2,220,000
163,988
1.70
2019
17,301,902
10,724,907
6,576,995
2,050,000
79,200
3.09
2020
(1)
16,996,911
7,500,788
9,496,123
—
—
—
Water Revenue Bonds
Less:
Fiscal
Utility Service
Operating
Net Available
Debt Service
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2012
$
49,556,831
$
26,351,735
$
23,205,096
$
6,498,090
$
1,641,612
2.85
2013
48,258,282
26,890,219
21,368,063
6,062,435
1,375,854
2.87
2014
49,588,376
27,840,478
21,747,898
3,300,000
869,064
5.22
2015
48,045,103
27,645,076
20,400,027
3,205,000
730,854
5.18
2016
50,483,097
26,907,780
23,575,317
8,408,500
566,680
2.63
2017
53,251,020
34,188,323
19,062,697
1,750,000
307,160
9.27
2018
54,031,592
35,833,361
18,198,231
2,212,000
219,660
7.48
2019
52,459,720
32,395,325
20,064,395
1,641,500
131,180
11.32
2020
54,722,296
33,556,507
21,165,789
1,638,000
65,520
12.42
2021
(2)
58,755,999
35,088,440
23,667,559
—
—
—
Excise Tax Revenue Obligations
Less:
Fiscal
Excise Tax
Operating
Net Available
Debt Service
Year
Collections
Expenses
Revenue
Principal
Interest
Coverage
2012
$
148,885,867
$
—
$
148,885,867
$
1,745,000
$
1,703,358
43.18
2013
156,621,139
—
156,621,139
1,815,000
1,584,863
46.07
2014
162,664,325
—
162,664,325
6,180,000
4,483,662
15.25
2015
170,432,597
—
170,432,597
4,770,000
6,044,175
15.76
2016
175,820,443
—
175,820,443
2,805,000
7,193,019
17.59
2017
188,910,693
—
188,910,693
4,105,000
8,097,704
15.48
2018
195,500,184
—
195,500,184
6,640,000
8,879,859
12.60
2019
209,259,874
—
209,259,874
6,590,000
9,248,264
13.21
2020
214,706,260
—
214,706,260
9,205,000
9,274,665
11.62
2021
236,712,500
—
236,712,500
10,630,000
9,129,575
11.98
Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Operating
expenses do not include interest, depreciation or amortization expenses.
(1) Street and highway revenue bonds matured on 7/1/2019.
(2) Water and sewer revenue bonds matured on 7/1/2020.
166
CITY OF CHANDLER, ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Schedule 13b
Wastewater Revenue Bonds
Less:
Fiscal
Utility Service
Operating
Net Available
Debt Service
Year
Charges
Expenses
Revenue
Principal
Interest
Coverage
2012
$
35,907,085
$
16,752,467
$
19,154,618
$
1,431,910
$
874,363
8.31
2013
37,690,400
18,879,022
18,811,378
2,197,565
809,286
6.26
2014
40,509,289
18,780,034
21,729,255
1,185,000
585,029
12.28
2015
45,666,777
22,907,111
22,759,666
3,555,000
548,545
5.55
2016
51,321,346
23,054,518
28,266,828
6,846,500
368,470
3.92
2017
53,563,934
23,470,067
30,093,867
—
94,140
319.67
2018
56,367,650
28,967,201
27,400,449
948,000
94,140
26.29
2019
56,055,131
26,507,090
29,548,041
703,500
56,220
38.89
2020
61,531,949
29,092,865
32,439,084
702,000
28,020
44.44
2021
(1)
61,971,940
25,540,769
36,431,171
—
—
—
Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. Operating
expenses do not include interest, depreciation or amortization expenses.
(1) Water and sewer revenue bonds matured on 7/1/2020.
167
CITY OF CHANDLER, ARIZONA
PROPERTY TAX ASSESSMENT RATIOS
LAST FIVE FISCAL YEARS
Schedule 14
Tax Year
Tax Year
Tax Year
Tax Year
Tax Year
Property Classification
2017
2018
2019
2020
2021
Mining, Utility, Commercial,
and Industrial
18.00 %
18.00 %
18.00 %
18.00 %
18.00 %
Agriculture and Vacant Land
15.00
15.00
15.00
15.00
15.00
Owner-Occupied Residential
10.00
10.00
10.00
10.00
10.00
Leased or Rented Residential
10.00
10.00
10.00
10.00
10.00
Railroad, Private Car, and
Airline Flight Property
15.00
14.00
15.00
15.00
15.00
Tax Year 2017 through 2019 Source: Piper Jaffray Inc. as compiled from State and County Abstract of the
Assessment Roll (Arizona Department of Revenue).
Tax Year 2020 through 2021 Source: Piper Sandler Companies as compiled from State and County Abstract of
the Assessment Roll (Arizona Department of Revenue).
168
CITY OF CHANDLER, ARIZONA
PROPERTY TAXES LEVIED AND COLLECTED
LAST FIVE FISCAL YEARS
Schedule 15
Adjusted
to 30 June of Initial Fiscal Year
Tax Rate
Tax Levy
Collections
% of Levy
FY 2020-21
$
1.1201 $
36,379,535 $
36,041,018
99.07 %
FY 2019-20
1.1281
34,039,034
33,597,309
98.70
FY 2018-19
1.1386
31,655,843
31,714,236
100.00
FY 2017-18
1.1400
30,612,579
30,321,360
99.05
FY 2016-17
1.1600
29,626,073
29,272,301
98.81
Fiscal Year 2016-17 through 2018-19 Source: Piper Jaffray Inc. as compiled from County Department of
Finance.
Fiscal Year 2019-20 through 2020-21 Source: Piper Sandler Companies as compiled from County Department
of Finance.
169
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING ASSESSED VALUATIONS AND TAX RATES PER $100 ASSESSED
VALUATION
JUNE 30, 2021
Schedule 16
FY 2020-21 Net
Limited Property
Assessed Valuation
FY 2020-21
Total Tax Rate
per $100
Assessed Valuation
State of Arizona (1)
$
69,914,507,682 $
—
Maricopa County
45,704,969,813
1.8435
Maricopa County Community College District
45,704,969,813
1.2881
Maricopa County Library District
45,704,969,813
0.0556
Maricopa County Flood Control District
42,084,633,673
0.1792
Maricopa County Fire District
45,704,969,813
0.0090
Maricopa County Special Health Care District
45,704,969,813
0.3046
Central Arizona Water Conservation District
45,704,969,813
0.1400
East Valley Institute of Technology District No. 401 (2)
20,400,195,945
0.5000
Chandler Unified School District No. 80
3,243,434,243
6.4111
Tempe Union High School District No. 213
3,965,462,859
2.4991
Kyrene Elementary School District No. 28
2,303,922,342
3.7820
Mesa Unified School District No. 4
3,358,470,654
7.3696
Gilbert Unified School District No. 41
2,201,483,124
6.2580
City of Chandler
3,243,434,243
1.1201
Source: Piper Sandler Companies as compiled from Property Tax Rates and Assessed Values, Arizona Tax
Research Foundation, Maricopa County Levy, and Maricopa County, State and County Abstract of the
Assessment Roll (Arizona Department of Revenue).
(1) Includes the State Equalization Assistance Property Tax. This rate has been set at $0.4566 for fiscal year
2019-20 and is adjusted annually pursuant to Arizona Revised Statute, Section 41-1276.
(2) Includes Net Limited Property Assessed Value for the East Valley Institute of Technology District No. 401
within Pinal County.
170
CITY OF CHANDLER, ARIZONA
PROPERTY VALUE BY PROPERTY CLASSIFICATION
LAST FIVE FISCAL YEARS
Schedule 17
FY 2016-17 Net
Full Cash
Assessed
Valuation
FY 2017-18 Net
Full Cash
Assessed
Valuation
FY 2018-19 Net
Full Cash
Assessed
Valuation
FY 2019-20 Net
Full Cash
Assessed
Valuation
FY 2020-21 Net
Full Cash
Assessed
Valuation
FY 2020-21
Annual
Percentage
Change
Mining, Utility,
Commercial, and
Industrial
$ 929,870,699
$ 1,027,345,765
$ 1,102,515,089
$ 1,246,170,328
$ 1,412,928,374
11.80%
Agriculture and
Vacant Land
80,660,011
74,055,978
75,266,539
78,888,739
77,850,859
(1.33)%
Owner-Occupied
Residential
1,424,368,802
1,472,336,280
1,574,405,659
1,681,112,768
1,837,472,779
8.51%
Leased or Rented
Residential
537,827,158
574,699,602
646,538,541
738,411,405
847,104,454
12.83%
Railroad, Private
Car, and Airline
Flight Property
1,782,690
1,910,025
1,782,690
1,910,025
2,011,500
5.04%
Historical Property
192,089,070
156,435,042
88,612,464
124,084,500
130,572,188
4.97%
Commercial
Historic Property
482,365
432,241
383,733
400,055
477,042
16.14%
TOTAL
$ 3,167,080,795
$ 3,307,214,933
$ 3,489,504,715
$ 3,870,977,820
$ 4,308,417,196
11.30%
Fiscal Year 2016-17 through 2018-19 Source: Piper Jaffray Inc. as compiled from State and County Abstract of
the Assessment Roll (Arizona Department of Revenue).
Fiscal Year 2019-20 through 2020-21 Source: Piper Sandler Companies as compiled from State and County
Abstract of the Assessment Roll (Arizona Department of Revenue).
171
CITY OF CHANDLER, ARIZONA
NET ASSESSED LIMITED PROPERTY ASSESSED VALUE OF MAJOR TAXPAYERS
JUNE 30, 2021
Schedule 18
Taxpayer
Description
FY 2020-21 Net
Limited
Property
Assessed Value
As % of Total FY
2020-21 Net
Limited
Property
Assessed Value
Intel Corporation
Manufacturing Plant
$
125,568,010
3.87%
CyrusOne LLC
Data Center
34,049,244
1.05
Wells Fargo Bank NA
Financial Services
24,695,824
0.76
Microchip Technology Incorporated
Manufacturing Plant
13,734,297
0.42
Bank of America NA
Financial Services
13,284,211
0.41
NXP USA, Inc.
Manufacturing Plant
12,567,436
0.39
Southwest Gas Corporation (T&D)
Utilities
11,487,974
0.35
CAZ 1 DE LLC
Commercial Rental Property
11,284,973
0.35
Digital 2121 South Price LLC
Data Center
9,750,410
0.30
SWVP Continuum Office LLC
Corporation Service
Company
9,164,060
0.28
$
265,586,439
8.18%
Total City Net Limited Property Assessed Valuation
$ 3,243,434,243
Source: County Treasurer's Office. Neither the City nor the Financial Advisor have made an independent
determination of the financial position of any of the major taxpayers listed above.
172
CITY OF CHANDLER, ARIZONA
ESTIMATED NET FULL CASH VALUE AND ASSESSED VALUES
LAST FIVE FISCAL YEARS
Schedule 19
Estimated Net Full Cash Value
Fiscal Year
City of Chandler
2020-21
$36,949,424,457
2019-20
33,312,389,044
2018-19
29,847,787,490
2017-18
28,994,768,811
2016-17
28,297,114,500
Fiscal Year 2016-17 through 2018-19 Source: Piper Jaffray Inc. as compiled from Property Tax Rates and
Assessed Values, Arizona Tax Research Foundation, and the State and County Abstract of the Assessment Roll
(Arizona Department of Revenue).
Fiscal Year 2019-20 through 2020-21 Source: Piper Sandler Companies as compiled from Property Tax Rates
and Assessed Values, Arizona Tax Research Foundation, and the State and County Abstract of the Assessment
Roll (Arizona Department of Revenue).
Comparative Net Limited Property Assessed Value History
Fiscal Year
City of Chandler
Maricopa County
State of Arizona
FY 2020-21
$
3,243,434,243 $
45,704,969,813 $
69,914,521,042
FY 2019-20
3,011,152,689
43,194,326,395
66,154,632,834
FY 2018-19
2,783,830,922
40,423,232,423
62,328,439,592
FY 2017-18
2,675,480,112
38,251,891,249
59,404,007,785
FY 2016-17
2,553,971,787
36,135,494,474
56,564,116,707
Comparative Net Full Cash Assessed Value History
Fiscal Year
City of Chandler
Maricopa County
State of Arizona
FY 2020-21
$
4,308,417,196 $
61,824,712,434 $
90,007,317,461
FY 2019-20
3,870,977,820
56,588,192,576
82,730,928,616
FY 2018-19
3,489,504,715
51,944,549,119
76,437,036,352
FY 2017-18
3,307,214,933
48,351,864,363
71,673,967,461
FY 2016-17
3,167,080,795
44,850,741,762
67,262,138,649
Fiscal Year 2016-17 through 2018-19 Source: Piper Jaffray Inc. as compiled from State and County Abstract of
the Assessment Roll (Arizona Department of Revenue) and Arizona Tax Research Association.
Fiscal Year 2019-20 through 2020-21 Source: Piper Sandler Companies as compiled from State and County
Abstract of the Assessment Roll (Arizona Department of Revenue) and Arizona Tax Research Association.
173
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT RATIOS
JUNE 30, 2021
Schedule 20
Per Capital
As % of City's
As % of City's
Bonded Debt
2020-21
2020-21
Population
Net Full Cash
Estimated Net
Estimates @
Assessed
Full Cash
280,178 (1)
Value
Value
Direct General Obligation Bond Debt
$ 272,100,000 $
971.17
6.32
0.74
Direct Overlapping General Obligation Bond
Debt
$ 688,117,247 $
2,456.00
15.97
1.86
Source:
(1) City of Chandler, Development Services Department
174
CITY OF CHANDLER, ARIZONA
POPULATION STATISTICS
Schedule 21
Year
City of Chandler
Maricopa County
State of Arizona
2021 estimate
280,178 (1)
4,506,505 (2)
7,387,800 (2)
2020 Census
275,987 (3)
4,420,568 (3)
7,151,502 (3)
2019 estimate
261,173 (1)
4,367,835 (2)
7,187,990 (2)
2018 estimate
257,853 (1)
4,294,460 (2)
7,076,199 (2)
2017 estimate
254,239 (1)
4,221,684 (2)
6,965,897 (2)
2016 estimate
248,332 (1)
4,155,302 (2)
6,866,195 (2)
2015 mid-decade
243,679 (3)
4,175,049 (3)
6,833,596 (3)
2014 estimate
241,264 (1)
4,008,651 (2)
6,662,486 (2)
2013 estimate
240,364 (1)
3,944,859 (2)
6,581,054 (2)
2010 Census
236,479 (3)
3,825,191 (3)
6,407,774 (3)
2005 Special Census
230,845 (3)
3,700,516 (3)
5,924,476 (2)
2000 Census
174,061 (3)
2,930,153 (3)
4,882,966 (3)
1990 Census
91,149 (3)
2,132,249 (3)
3,679,118 (3)
1980 Census
29,673 (1)
1,521,597 (3)
2,735,840 (3)
Sources:
(1) City of Chandler, Development Services Department
(2) Arizona Office of Economic Opportunity
(3) U.S. Census Bureau
175
CITY OF CHANDLER, ARIZONA
EXCISE TAX COLLECTIONS
Schedule 22
2016-17 (1)
2017-18 (1)
2018-19 (1)
2019-20 (1)
2020-21 (1)
Adopted
2021-22
Transaction Privilege Tax
$
120,189,651
$ 127,584,410
$ 138,888,825
$ 140,798,389
$ 155,638,444
$ 148,370,000
State Shared Sales Tax
23,768,564
23,821,248
25,525,595
26,597,361
30,982,818
28,790,000
State Shared Income Tax
31,910,426
30,652,381
30,693,731
33,255,159
37,324,127
33,500,000
Franchise Fees
3,272,104
3,560,770
3,556,211
3,432,995
3,615,294
2,980,000
Licenses and Permits
7,209,693
6,512,930
7,398,669
7,908,291
6,835,817
6,299,000
Fines and Forfeitures
2,560,255
3,368,445
3,196,843
2,714,065
2,316,000
2,939,100
Totals
$
188,910,693
$ 195,500,184
$ 209,259,874
$ 214,706,260
$ 236,712,500
$ 222,878,100
Note: Includes City transaction privilege sales tax, privilege audit assessments, privilege license fees and
privilege tax interest. Excludes excise tax refunds from GPLET program.
(1) Amounts are actual collections provided by the City of Chandler, Management Services Department (cash
basis).
176
CITY OF CHANDLER, ARIZONA
TRANSACTION PRIVILEGE (SALES) TAX RATES BY CATEGORY
JUNE 30, 2021
Schedule 23
Taxable Activities
Chandler Tax Rate
Advertising
1.50 %
Amusements
1.50 %
Contracting
1.50 %
Construction Contracting (non MRRA) (1)
1.50% of 65% of gross
Jet Fuel Sales (and Use)
$0.02300/gallon
Job Printing
1.50 %
Manufactured Housing
1.50 %
Timber & Extraction
1.50 %
Mining
0.10 %
Publishing
1.50 %
Hotel/Motel (≤ 30 Days)
4.40% (1.50% + 2.90%)
Hotel/Motel (> 30 Days)
1.50 %
Rentals - Real Property
Residential
1.50 %
Commercial
1.50 %
Tangible Personal Property Rentals
1.50 %
Restaurants/Bars
1.80 %
Retail Sales
1.50 %
Telecommunications
2.75 %
Transportation for Hire
1.50 %
Utilities
2.75 %
Use Tax
1.50 %
Source: City of Chandler, Management Services Department
(1) MMRA - maintenance, repair, replacement and alteration
177
CITY OF CHANDLER, ARIZONA
STATE SALES TAX TAXABLE ACTIVITIES, TAX RATES AND DISTRIBUTION SHARE
JUNE 30, 2021
Schedule 24
State Transaction
Privilege (Sales) Tax Rates
Taxable Activities
State Tax Rate
Education Tax Rate
(1)
Distribution Share
Transporting
5.600 %
0.600 %
20.000 %
Utilities
5.600
0.600
20.000
Telecommunications
5.600
0.600
20.000
Pipeline
5.600
0.600
20.000
Private Car Line
5.600
0.600
20.000
Publication
5.600
0.600
20.000
Job Printing
5.600
0.600
20.000
Prime Contracting
5.600
0.600
20.000
Owner Builder Sales
5.600
0.600
20.000
Amusement
5.600
0.600
40.000
Restaurant
5.600
0.600
40.000
Personal Property Rental
5.600
0.600
40.000
Retail (excluding food sales)
5.600
0.600
40.000
Transient Lodging
5.500
N/A
50.000
Mining - non-metal, oil/gas
3.125
N/A
32.000
Commercial Lease
—
N/A
53.330
Severance - Metalliferous Mining
2.500
N/A
80.000
Use Tax Utilities
5.600
0.600
20.000
Jet Fuel Use Tax
(2)
N/A
40.000
Source: Arizona Department of Revenue
(1) Represents that State transaction privilege (sales) tax rate approved by voters of the State in November
2000 (the "Education Tax") on certain of the categories of business activity at six-tenths of one percent
(0.6%). The Education Tax collections are dedicated exclusively to education and are not distribued to the
City or pledged to the payment of debt service. The effective dates for the Education Tax are June 1, 2001
through June 30, 2041.
(2) Does not include the $0.0305 per gallon state tax on the retail sale of jet fuel, which tax is only levied on the
first ten million gallons sold to each purchaser in each calendar year.
178
CITY OF CHANDLER, ARIZONA
COMBINED SCHEDULE OF WATER AND SEWER SYSTEM REVENUES, EXPENSES, NET
REVENUES AND DEBT SERVICE COVERAGE
LAST FIVE FISCAL YEARS
Schedule 25
2016-17
2017-18
2018-19
2019-20
2020-21
System Revenues:
Service Fees
$ 106,814,954 $ 110,399,242 $ 108,514,851 $ 116,254,245 $ 120,727,939
Miscellaneous
63,411
953,964
130,001
97,652
35,573
Interest Income
875,983
780,250
6,817,699
8,772,310
264,558
Total System Revenues
$ 107,754,348 $ 112,133,456 $ 115,462,551 $ 125,124,207 $ 121,028,070
System Expenditures:
General and Administration
$ 6,065,965 $ 6,219,983 $ 6,400,086 $ 6,511,083 $ 6,510,382
Personnel Services
15,489,373 16,343,098 16,548,508 17,613,794 17,923,155
Contractual Services
17,153,121 11,774,018 12,919,313 13,240,678 14,338,257
Commodities
18,949,931 30,463,463 23,034,508 25,283,817 21,857,415
Total System Expenditures
$ 57,658,390 $ 64,800,562 $ 58,902,415 $ 62,649,372 $ 60,629,209
Net Income Available for Debt
Service
$ 50,095,958 $ 47,332,894 $ 56,560,136 $ 62,474,835 $ 60,398,861
Water and Sewer Revenues Bond
(Senior Obligation) Debt Service
$ 2,151,300 $ 3,473,800 $ 2,532,400 $ 2,433,600 $
—
Approximate Debt Service
Coverage for Senior Obligations
23.29x
13.63x
22.33x
20.39x
N/A
179
CITY OF CHANDLER, ARIZONA
UTILITY RATE INCREASE HISTORY
Schedule 26
Water
(10,000 gal)
Wastewater
Effective Date
(Single Family)
(Single Family)
09/01/80
8.40 %
16.67 %
04/25/83
33.80 %
— %
11/30/83
— %
41.43 %
07/01/84
— %
41.47 %
11/01/80
10.53 %
13.70 %
08/01/85
— %
7.57 %
01/01/89
8.33 %
3.95 %
01/01/90
7.69 %
5.04 %
01/01/91
4.28 %
3.96 %
04/01/92
8.05 %
3.97 %
02/15/93
7.75 %
3.97 %
10/01/94
11.55 %
6.98 %
10/01/07
(9.00) % (1)
23.90 %
10/01/09
23.64 % (2)
13.02 %
10/01/13
— %
9.00 % (3)
10/01/15
— % (4)
9.00 % (3)
10/01/17
0.70 % (5)
3.70 % (5)
Source: City of Chandler, Management Services Department
(1) The water rate structure was changed in the October 1, 2007 rate increase to separate each customer class
and move a higher portion of costs from the base charge to the volume charge in a tiered structure.
(2) The water rate structure was changed in the October 1, 2009 rate increase to move 20,000 gallons of
consumption from tier 4 to tier 3, as well as move a portion of costs back to the base charge from the
volume charge.
(3) The wastewater rates were increased October 1, 2013 and October 1, 2015 to cover additional debt service
costs tied to new construction and expansion of facilities.
(4) Effective October 1, 2015 the water seasonal rates (winter/summer) were eliminated and replaced with a
year-round rate, but the annual cost to rate payers remained unchanged.
(5) In 2016, a Cost of Service Study was completed water consumption rates were not changed, however,
effective October 1, 2017 the water base rate increased 0.70% and the wastewater rates were increased by
3.70% to cover debt service costs tied to new construction and expansion of facilities.
180
CITY OF CHANDLER, ARIZONA
TOP 10 WATER AND WASTEWATER CUSTOMERS
JUNE 30, 2021
Schedule 27
Water
Customer name
Amount
INTEL CORP
$ 9,727,843
NXP USA INC.
1,110,766
CHANDLER UNIFIED SCHOOL
586,060
AIR PRODUCTS & CHEMICAL
362,509
DIGITAL 2121 SOUTH PRICE, LLC
161,705
TOWNSQUARE APARTMENTS
137,551
CHANDLER REGIONAL HOSPITAL
116,640
GLEIBERMAN PROPERTY INC
103,796
KYRENE SCHOOL DISTRICT #28
92,404
BMF IV AZ LAGUNA VILLAGE LLC
90,754
Wastewater
Customer name
Amount
INTEL CORP
$ 15,654,785
NXP USA INC.
1,579,924
DIGITAL 2121 SOUTH PRICE, LLC
259,985
CHANDLER UNIFIED SCHOOL
177,836
GILA RIVER INDIAN COMMUNITY (LONE BUTTE)
149,033
AIR PRODUCTS & CHEMICAL
142,934
CHANDLER REGIONAL HOSPITAL
140,011
MICROCHIP TECHNOLOGY INC
94,694
BMF IV AZ LAGUNA VILLAGE LLC
89,597
ERGON ASPHALT AND EMULSION
78,640
Source: City of Chandler, Management Services Department
181
CITY OF CHANDLER, ARIZONA
NUMBER OF WATER AND WASTEWATER CUSTOMERS
LAST TEN FISCAL YEARS
2012
2013
2014
2015
WATER
Residential
72,867
73,551
74,319
75,035
Commercial
4,387
4,406
4,158
4,243
Multi-Unit
988
991
1,032
1,043
Industrial
49
50
56
58
Other
206
226
1,317
1,536
WASTEWATER
Residential
71,508
72,067
72,862
73,363
Commercial
2,312
2,358
2,012
2,033
Multi-Unit
811
811
878
887
Industrial
38
39
37
37
Other
239
252
470
477
Source: City of Chandler, Management Services Department
182
Schedule 28
2016
2017
2018
2019
2020
2021
75,883
77,062
77,674
78,244
78,928
79,961
4,309
4,535
4,550
4,927
2,546
2,577
1,087
1,107
1,128
1,134
1,115
1,124
61
63
66
67
63
63
1,640
2,034
2,116
2,389
647
647
74,346
75,761
76,517
77,089
77,797
78,794
2,201
2,138
2,329
2,371
2,420
2,450
920
915
952
956
965
974
34
38
48
48
48
48
475
590
592
598
603
603
183
CITY OF CHANDLER, ARIZONA
DELINQUENCIES ON PAYMENTS FOR THE ASSESSMENTS
JUNE 30, 2021
Schedule 29
There were no delinquencies on payments for the assessment.
184
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT OUTSTANDING
JUNE 30, 2021
Schedule 30
2020-21
2020-21
Overlapping
Proportion Applicable
General
to City of Chandler
Obligation
Approximate
Net Debt
Overlapping Jurisdiction
Bonded Debt
Percent
Amount
State of Arizona
None
4.639 %
None
Maricopa County
None
7.096
None
Maricopa County Community College District
$
184,715,000
7.096
$
13,108,223
Maricopa County Special Healthcare District
640,269,000
7.096
45,436,424
Chandler Unified School District No. 80
385,946,000
27.824
50,905,198
Kyrene Elementary School District No. 28
182,955,000
4.273
11,773,993
Mesa Unified School District No. 4
275,525,000
2.604
2,925,713
Gilbert Unified School District No. 41
112,360,000
69.922
269,859,611
Tempe Union High School District No. 213
7,675,500,000
15.977
12,263,084
East Valley Institute of Technology District No.
401
None
15.899
None
City of Chandler
281,845,000
100.000
281,845,000
Total Direct and Overlapping General Obligation Bonded Debt Outstanding
$
688,117,246
Direct and Overlapping Tax Rates Per $100 Assessed Valuation
Inside the City, East Valley Institute of Technology and
Inside Gilbert Unified School District No. 41
$
11.6981
Inside Mesa Unified School District No. 4
$
11.6896
Inside Tempe Union High School District No. 213 and
Kyrene Elementary School District No. 28
$
11.7212
Inside Chandler Unified School District No. 80
$
11.8512
Source: Piper Sandler Companies
Note: The applicable percentage of overlap for each type of debt was computed on the net limited property
assessed valuation as calculated for fiscal year 2020-21 for the overlapping jurisdiction to the amount of such
valuation which lies within the City of Chandler.
185
CITY OF CHANDLER, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Schedule 31
Total
Per Capita
Fiscal
Personal
Median
Unemployment
Personal
Year
Population (1)
Income (2)
Age (2)
Rate (3)
Income (2)
2011-12
238,040
$7,233,559,520
32.4
6.1%
$30,388
2012-13
240,364
7,925,281,808
34.9
6.0
32,972
2013-14
241,264
7,840,356,208
35.0
5.5
32,497
2014-15
243,679
(4)
8,168,120,080
34.9
4.7
33,520
2015-16
248,332
8,324,088,640
34.9
4.5
33,520
2016-17
254,239
8,731,329,977
35.2
3.9
34,343
2017-18
257,853
9,360,321,753
35.3
3.6
36,301
2018-19
261,173
10,101,649,294
36.0
4.0
38,678
2019-20
275,987
11,088,605,686
36.0
8.7
40,178
2020-21
280,178
(4)
11,693,509,008
36.0
5.6
41,736
Sources:
(1) City of Chandler, Development Services Department
(2) City of Chandler, Economic Development Division
(3) Arizona Office of Employment and Population Statistics
(4) U.S. Census Bureau
Notes: Total personal income is composed of earned income, dividends, interest and rents and government
transfer payments.
Per capita personal income is calculated by dividing total personal income by population; amounts may not be
exact due to rounding.
186
CITY OF CHANDLER, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND TEN YEARS AGO
Schedule 32
2021
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
12,000
1
8.01%
Wells Fargo Bank
5,500
2
3.67%
Chandler Unified School District
4,900
3
3.27%
Bank of America
3,800
4
2.54%
Chandler Regional Medical Center/Dignity Health
2,500
5
1.67%
Northrop Grumman
2,150
6
1.44%
NXP
1,700
7
1.14%
Paypal
1,700
7
1.14%
City of Chandler
1,586
8
1.06%
Microchip Technology - HQ
1,500
9
1.00%
Verizon Wireless
1,400
10
0.94%
Total
37,336
24.94%
2012
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
10,300
1
8.32%
Bank of America
3,600
2
2.91%
Chandler Unified School District
3,000
3
2.42%
Wells Fargo Ocotillo Corporate Campus
2,600
4
2.10%
Chandler Regional Medical Center
2,100
5
1.70%
Ebay/Paypal
2,000
6
1.62%
Verizon Wireless
1,695
7
1.37%
City of Chandler
1,567
8
1.27%
Microchip Technology
1,540
9
1.24%
Freescale Semiconductor
1,450
10
1.17%
Total
29,852
24.12%
Source: City of Chandler, Economic Development Division, City of Chandler Human Resources Department and
Arizona Office of Employment and Population Statistics.
187
CITY OF CHANDLER, ARIZONA
EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2011-12
2012-13
2013-14
2014-15
Full Time Equivalent Personnel
Mayor and council
6
4
4
4
City clerk
4
5
6
6
City manager
124
178
174
176
Communications/public affairs
14
19
13
13
City magistrate
38
39
35
37
Law
30
29
29
31
Management services
72
72
66
69
Total General Government
288
346
327
336
Total Transportation and Development
170
163
159
165
Total Community Services
231
192
199
198
Police
467
468
467
483
Fire
238
234
224
237
Total Public Safety
705
702
691
720
Municipal utilities administration
5
4
5
5
Water
89
85
87
87
Wastewater
42
46
46
62
Solid waste
19
18
16
20
Total Municipal Utilities
155
153
154
174
Municipal utilities administration
—
—
—
—
Water
—
—
—
—
Wastewater
—
—
—
—
Solid waste
—
—
—
—
Public works administration
—
—
—
—
Streets
—
—
—
—
Total Public Works and Utilities
—
—
—
—
Total Primary Government
1,549
1,556
1,530
1,593
Source: City of Chandler, Human Resources Department
(1) The significant changes between 2015 and 2016 are a result of Library, Museum and Center for the Arts
moving from Community Services to City Manager Department.
(2) The significant changes between 2016 and 2017 are a result of Library, Museum and Center for the Arts
moving from City Manager Department to Community Services.
(3) The significant changes between 2018 and 2019 are a result of the Streets Division and Municipal Utilities
consolidating into the Public Works and Utilities Department.
Note: The calculation of full time equivalent personnel includes full time and part time regular employees as of
the last pay period of the fiscal year.
188
Schedule 33
2015-16
(1)
2016-17
(2)
2017-18
2018-19
(3)
2019-20
2020-21
4
11
4
5
5
5
6
7
6
6
6
6
240
206
199
193
194
198
15
15
15
14
15
14
39
38
40
37
40
33
31
31
30
32
32
31
67
64
67
68
67
66
402
372
361
355
359
353
150
152
160
84
77
76
156
199
202
195
199
194
490
491
501
485
488
477
240
222
233
233
229
228
730
713
734
718
717
705
8
7
7
—
—
—
87
89
90
—
—
—
65
69
74
—
—
—
21
20
18
—
—
—
181
185
189
—
—
—
—
—
—
6
6
7
—
—
—
90
90
89
—
—
—
66
68
71
—
—
—
19
21
21
—
—
—
1
2
2
—
—
—
70
78
79
—
—
—
252
265
269
1,619
(1)
1,621
(2)
1,646
1,604
(3)
1,617
1,597
189
CITY OF CHANDLER, ARIZONA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2011-12
2012-13
2013-14
2014-15
General Government
Privilege tax licenses
25,726
27,387
27,467
28,224
Meeting notices posted
599
584
564
544
City council actions and agenda items
prepared
908
834
780
867
Grant awards received
26
43
53
51
Inventory turnover ratio
2.07
1.89
2.10
1.57
Transportation & Development
Building permits issued
5,462
3,785
5,490
5,170
Community Services
Library circulation
2,489,741
2,395,192
2,332,758
2,163,076
Center for the Arts events & exhibits
1,000
1,003
938
939
Public Safety
Crime rate (per 1,000 population)
33
28
27
23
Total calls for police services (estimated)
137,170
137,485
145,400
139,177
Total calls for fire services
17,950
18,474
18,865
22,785
Fire inspections
5,188
5,029
5,442
4,692
Fire investigations
34
22
16
27
Municipal Utilities
Water connections
77,626
79,278
79,766
80,401
Operating wells
28
26
27
28
Daily pumping capacity - wells (gallons)
61,920,000
64,790,000
64,710,000
64,400,000
Daily pumping capacity - plants (gallons)
72,000,000
72,000,000
72,000,000
72,000,000
Sewer connections
73,712
74,606
75,564
76,492
Sanitary sewer (miles)
868
869
890
911
Solid waste customers served
70,179
70,667
71,269
71,860
Solid waste refuse collected (tons)
85,257
86,557
83,950
84,209
Solid waste refuse recycled (tons)
21,096
20,680
21,046
22,442
Source: City of Chandler Departments
190
Schedule 34
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
29,582
28,321
28,046
37,404
41,290
45,590
565
535
681
666
542
395
844
860
838
789
739
460
46
43
27
24
33
40
1.74
1.81
1.79
2.04
2.40
1.73
5,142
4,635
3,944
4,011
4,091
4,601
2,101,421
2,059,429
2,041,574
1,801,237
1,415,291
1,356,695
985
1,048
1,177
825
537
389
26
26
25
22
23
19
145,466
156,186
159,301
154,736
146,859
139,236
23,966
25,072
25,185
26,818
26,371
26,676
5,814
4,635
5,135
6,698
6,641
3,257
30
27
41
18
23
17
83,089
84,670
84,338
85,416
86,098
87,251
28
31
32
31
31
30
66,300,000
74,400,000
74,100,000
71,300,000
71,800,000
71,800,000
72,000,000
72,000,000
84,000,000
84,000,000
84,000,000
84,000,000
78,144
78,972
79,841
81,033
81,796
82,895
917
928
933
935
941
945
73,162
73,288
75,018
75,675
76,773
77,297
81,653
80,069
83,004
84,500
86,950
94,218
22,102
22,305
22,101
22,887
21,800
22,775
191
CITY OF CHANDLER, ARIZONA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2011-12
2012-13
2013-14
2014-15
Community Services
Developed parks
61
61
62
64
Developed acres
1,196
1,198
1,208
1,232
Undeveloped acres
338
336
325
309
Swimming pools
6
6
6
6
Lighted fields
34
39
39
41
Library bookstock
555,924
550,857
595,969
396,773 (1)
Transportation and Development
Total miles streets (center line)
829
831
838
841
Street lights
26,600
26,900
27,100
27,700
Signalized intersections
212
216
216
218
Public Safety
Police stations
3
3
3
3
Fire stations
10
10
10
10
General Government
Based aircraft
399
388
415
425
Municipal Utilities
Water mains (miles)
1,227
1,227
1,227
1,278
Fire hydrants
10,877
12,553
12,717
13,118
Average daily treatment (mgd)
24
26
26
28
Source: City of Chandler Departments
(1) The 2014-15 decrease in library bookstock is due to less demand from the increase usage of digital materials
and removal of damaged, outdated and obsolete material no longer being circulated.
(2) Beginning in 2015-16, City staff is updating the Geographic Information System through a review of over 700
As-builts, so a revised figure is reflected. The revised figure consists of active and City owned utilities.
192
Schedule 35
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
65
65
65
67
67
67
1,236
1,244
1,244
1,281
1,281
1,301
302
299
299
231
231
219
6
6
6
6
6
6
41
43
43
41
43
50
341,073
360,618
359,445
310,888
310,812
294,276
855
855
857
857
858
858
27,700
27,800
27,199
29,500
29,500
29,731
218
218
220
225
226
232
3
3
3
3
3
3
10
10
11
11
11
11
427
455
457
523
440
448
1,196 (2)
1,283
1,212
1,218
1,228
1,232
13,207
15,708
15,970
16,159
16,296
16,492
29
29
28
54
31
31
193
194
Phone (480) 782-2333
chandleraz.gov/Accounting
Mailing Address
Mail Stop 702
P.O. Box 4008
Chandler, Arizona 85244-4008
Accounting Division
Fourth Floor
175 S Arizona Avenue
Chandler, Arizona 85225