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“Moving Forward Together”
City of Chandler
Annual
Comprehensive
Financial Report
Fiscal Year Ended
June 30, 2022
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared by
Management Services Department
Dawn Lang, Deputy City Manager|CFO
Kristi Smith, Financial Services Officer
Robert Steele, 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 ............................................................................................................................................
89
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
Grants Special Revenue ..........................................................................................................................
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, 2022
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
Community Development Special Revenue ..................................................................................
117
Police Confiscated Property Special Revenue ...............................................................................
118
Parks and Recreation Special Revenue ...........................................................................................
119
Museum Special Revenue ..................................................................................................................
120
Library Special Revenue .....................................................................................................................
121
Special Assessment Bonds ................................................................................................................
122
General Government Capital Projects ............................................................................................
123
Public Buildings Capital Projects ......................................................................................................
124
Grants Capital Projects .......................................................................................................................
125
Streets Capital Projects .......................................................................................................................
126
Community Services Capital Projects ..............................................................................................
127
Public Safety Buildings and Improvements Capital Projects .....................................................
128
Vehicle and Capital Equipment Replacement Capital Projects .................................................
129
Technology Replacement Capital Projects .....................................................................................
130
Municipal Arts Capital Projects .........................................................................................................
131
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, 2022
ii
TABLE OF CONTENTS, continued
STATISTICAL SECTION, continued
Financial Trends, 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, 2022
iii
Introductory Section
“Moving Forward Together”
Chandler’s commitment to innovation,
thoughtful planning, and wise investment
enables our businesses and residents to
receive quality services at some of the
lowest tax and utility rates in the Valley.
•
Letter of Transmittal
•
Elected and Appointed Officials
•
Organizational Chart
•
Certificate of Achievement for
Excellence in Financial Reporting
1 - Introductory Section
Introductory Section
December 16, 2022
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, 2022, 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 99 percent, from an
estimated 142,486 in 1997 to 282,873 in 2022, based on intercensal population estimates published by the State
of Arizona. 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. Total
manufacturing employment is over 25,000 with many companies in the supply chain also operating in Chandler.
Another industry that has experienced strong growth is financial services with companies such as Wells Fargo,
Bank of America, GM Financial Services and Allstate establishing corporate offices in Chandler. Information
technology is another growth industry with Insight Enterprises Inc., a Fortune 500 company, recently relocating
its corporate headquarters to Chandler.
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
1
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 $96,948. In addition, 77 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 2.8 percent
during fiscal year 2021-22 compared with 3.0 percent for Maricopa County and 3.7 percent for the State of
Arizona.
The City’s sales tax revenues, which comprise over 55 percent of its general fund, increased by 14 percent for
fiscal year 2021-22 from the prior year actuals. The City continues to strengthen its financial position and has
benefitted from ongoing and one-time revenues created by increased retail spending and new development,
including the $20 billion Intel expansion that kicked off in February 2022. With increased operating revenue
growth anticipated, managing costs of services during a time of inflation and higher cost of personnel in the
market is critical. As the City ages, maintaining existing infrastructure is also a focus to ensure quality amenities
for residents and businesses. 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, the Chandler Cultural
Foundation, and the Chandler Museum Foundation are three legally separate entities, all 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.
2021-2022 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;
•
Completed refundings of GO Bonds ($48.2 million) and Excise Tax Revenue Obligations ($85.46 million),
generating $9.1million in present value savings, and issued new GO Bonds ($31.295 million) with a
historic low True Interest Cost (TIC) of 0.327643%;
•
Held a successful 2021 bond election with extensive public involvement and education that added
needed authorization for multiple capital projects with no planned increase to the secondary property
tax rate;
•
Implemented a Cost-of-Service study and related public outreach for Water, Wastewater, Reclaimed
Water, and Solid Waste rate adjustments designed to re-allocate revenue requirements across all
customer classes and updated the Citywide Fee Schedule and Chapters 44 and 50 of the City Code;
•
Worked with the Human Relations Commission to fund 11 Diversity Mini-Grant applications that foster
diversity education for youth ages 5-18, in which a total of over 3,886 Chandler students benefited;
•
Established a Military and Veterans Affairs Commission and completed the Veteran’s Memorial Field of
Honor;
•
Prepared agreement and helped obtain Arizona Corporation Commission approval with Salt River
Project (SRP) for High-Tech Interconnect Project to serve Intel Corporation’s Chandler Campus, and
negotiated a development agreement with Intel Corporation for additional water and wastewater
infrastructure to support their Ocotillo campus expansion which qualifies for the state’s Transaction
Privilege Tax (TPT) statute, allowing for reimbursement from Intel Corporation and the Arizona
Department of Revenue (ADOR);
•
Actively monitored federal, state, and local legislation for impacts on City revenue, and secured $8
million in state funding for the Loop 101/202 water main repair and $1 million in federal funding for the
advanced metering infrastructure;
•
Tracked total Airport take-offs and landings of 225,303 in calendar year 2021, making it the 13
th busiest
general aviation airport in the U.S. and the 38
th busiest U.S. airport overall;
•
Economic Development’s combined business attraction/retention efforts have supported projects that
are anticipated to provide 1,849 jobs in Chandler within the next year and up to 3,164 jobs within three
years. Key Economic Development assisted business locate projects include Cirrus Aircraft, EMD
Electronics, Edwards, NEHP, Stryker, and VirTra, and retention and expansion projects include Applied
Materials, GM IT Innovation Center, Mr. Cooper, Optima Tax Relief, Port Plastics, and Vensure;
•
The Parks Strategic Master Plan was completed, as well as the development of phase 1 of Lantana Ranch
Park, Hoopes Park playground, and Homestead North Park began construction;
•
The Chandler Library implemented a dynamic digital experience with a new website, catalog, mobile
app, email, and events calendar, and opened the Makery at the Downtown Library October 2021;
•
The Chandler Center for the Arts (CCA) served over 120,000 people and continued its commitment to
diverse and inclusive programming with a focused reach to Black, Spanish/Hispanic/Latino, and family
3
audiences. Free programs were offered to over 7,500 attendees and over 50 nonprofit and cultural
institutions utilized the CCA for their activities;
•
The Vision Gallery hosted 90 free events that included opening receptions, Vision Kids classes, and
special events with more than 4,300 attendees. The gallery was recognized as one of the ten best art
galleries in metro Phoenix;
•
The Chandler Museum accepted a $250,000 donation from the Chandler Historical Society that created
the Chandler Museum Foundation Endowment Fund and an additional $80,000 for the oral history
program, supporting public programs and new exhibits. The Museum offered 256 programs on
Chandler culture, history, and art that had an attendance of 10,596;
•
Facilitated ongoing downtown Chandler development and redevelopment projects to include the Shops
on Frye, The Tipsy Egg, The Uncommon, Recreo, The Religion Store, Acqua di Mare, DC Heights,
ImprovMania, and space on Boston Street;
•
Issued 4,600 building permits for over $1.2 billion in construction in calendar year 2021 and conducted
23,790 building inspections;
•
Created an online open data portal to share City GIS data with residents and the online performance
measure dashboards displaying various metrics across all departments;
•
Municipal Court implemented Community Support Court in partnership with criminal justice and the
legal community, giving defendants experiencing homelessness facing criminal charges a specialized
court calendar;
•
Created campaigns and materials for the Neighborhood Resources Department to promote grant and
housing programs for residents in need, and the Chandler Cares Team assisted over 1,400 residents
seeking resources for rent, utilities, food, and other crisis services to connect to potential resources;
•
Neighborhood Programs awarded 36 neighborhood grants totaling over $64,000 for cleanup events,
common wall, and landscaping improvements, and to humanely address the overpopulation of feral
cats;
•
Received and administered the distribution of $7.6 million of reallocated Emergency Rental Assistance
(ERA) Program funds to assist Chandler residents impacted by COVD-19 with rent and utility payments;
•
The Fire Department responded to 29,000 emergency incidents, including a significant battery storage
facility fire mitigated through the coordination and collaboration of public safety, City staff, state,
federal, tribal, and private sector resources;
•
Treated and reclaimed 10.9 billion gallons of wastewater at the Airport, Lone Butte, and Ocotillo Water
Reclamation Facilities, 10.2 billion gallons of which were reused for irrigation and cooling;
•
Treated and delivered over 23.7 billion gallons of potable drinking water;
•
Completed 256 miles of asphalt repaving, surface seal, and slurry rehabilitation treatments, and
completed ADA upgrades to 708 sidewalk/driveway locations and 726 corner ramps;
•
Successfully achieved law enforcement accreditation for the 9
th consecutive time demonstrating that
Chandler is a modern, transparent, and community focused agency utilizing the best practices in
policing; and
•
Continued developing and maintaining community partnerships, which is the cornerstone of system of
policing resulting in overall Part One crime being down again in 2021, making it one of the safest years
in Chandler’s history.
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
4
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.
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 2021-22, $1.058 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, 2021, marking the fortieth 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.
5
Additionally, the City of Chandler was also awarded the Distinguished Budget Presentation Award for the fiscal
year beginning July 1, 2021 from the GFOA, marking the thirty-fourth 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.
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, Financial
Services Officer; Robert Steele, Accounting Manager; Tracy Schmidt, Accounting Supervisor; Lina Alam, Senior
Accountant; Debbie Motta, Senior Accountant; and Joanne Chang, Senior Accountant. Finally, I wish to thank the
Mayor and Council, City Manager, Assistant City Manager, Deputy 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
Terry Roe, Vice Mayor
Christine Ellis, Councilmember
OD Harris, Councilmember
Rene’ Lopez, Councilmember
Matt Orlando, Councilmember
Mark Stewart, Councilmember
Executive Staff
Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Dawn Lang, Deputy City Manager
Andy Bass, Deputy City Manager
Department Heads and Directors
Kelly Schwab, City Attorney
Dana DeLong, City Clerk
Alicia M. Skupin, Presiding City Magistrate
Matt Burdick, Communications and Public Affairs Director
John Sefton, 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, 2022
7
City of Chandler Organizational
Chart
Citizens of Chandler
Mayor and City Council
Public Works and
Utilities
• Capital Projects
• Solid Waste
Services
• Transportation
• Water/Wastewater
Assistant City Manager
Development
Services
•
Building Safety
•
Engineering
•
GIS
•
Planning
• Telecommu-
nication &
Utility Franchise
• Mayor and Council
Office
• Print, Mail, Graphics
• Public Information
• Video Production
Economic
Development
• Tourism
Neighborhood
Resources
• Code
Enforcement
• Community
Development
• Diversity Office
• Housing &
Redevelopment
• Neighborhood
Programs
• Diversity, Equity
& Inclusion
Deputy City Manager
Community
Services
• Libraries
• Park
Maintenance
• Park
Development
• Recreation/
Aquatics
• Accounting
• Budget Office
• Central Supply
• Environmental
Management
• Purchasing
• Tax & Licensing
• Utility Services
Management Services
Assistant to the
City Manager
• Performance
Management
• Sustainability
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
Communications and
Public Affairs
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Deputy City Manager | CFO
8
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chandler
Arizona
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
9
10
Financial Section
“Moving Forward Together”
A clear vision, strong reserves, prudent
spending, and sound financial
management policies have enabled
Chandler to deliver a balanced budget
and maintain AAA bond ratings from all
three rating agencies.
•
Independent Auditor's Report
•
Management's Discussion and Analysis
(MD&A)
•
Basic Financial Statements
•
Required Supplementary Information
•
Other Financial Statements
2 - Financial Section
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, 2022, 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, 2022, and the respective changes in financial
position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Our responsibilities under those standards are further described in the 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.
Change in Accounting Principle
As described in Note 1, the City implemented the provisions of the Governmental Accounting
Standards Board (GASB) Statement No. 87, Leases, for the year ended June 30, 2022, which
represents a change in accounting principle. Our opinion is not modified with respect to this matter.
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.
11
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
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 16, 2022, 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 16, 2022
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, 2022. 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 2022 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 $1.58 billion (net position). This represents an
increase of $58.0 million from the prior year. Factors that have contributed to this are increases in
equity in pooled cash and investments due to higher sales taxes and state shared revenue collections
from strong development and consumer spending, as well as related inflation impacts, the recognition of
new lease receivables based on the new GASB statement 87, and an increase in deferred outflows of
OPEB and pension plan items. These items are offset by increases to total bonds outstanding after
selling bonds at the end of 2021, an increase in the City's recognized OPEB liability, and higher unearned
revenue amounts. Of this amount, $347.1 million (unrestricted net position) may be used to meet the
City’s obligations to citizens and creditors. However, $69.4 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, 2022, the City’s governmental funds reported combined ending fund balances of $472.7
million, an increase of $49.7 million in comparison with the prior year primarily due to increases in sales
taxes and state shared revenue collections. Much of this change is attributed to healthy development
and retail sales combined with inflationary pressures leading to higher average sales which increases tax
receipts. The largest driver is the $20 billion expansion of Intel Corporation and other related
development within Chandler. This has created significant increases in transaction privilege taxes in
many tax categories. Approximately 58.6 percent of the total amount, $277.2 million, is available for
spending at the City’s discretion (assigned or unassigned).
•
At June 30, 2022, total fund balance for the general fund was $282.0 million which represents an increase
of $39.4 million from the prior year; again this is primarily due to increases in sales taxes and state
shared revenues as noted previously.
•
General revenues from governmental activities accounted for $320.1 million, or 75.5 percent of all
revenues from governmental activities as opposed to 74.7 percent in the prior year. Program specific
revenues in the form of charges for services and grants and contributions accounted for $104.1 million
or 24.5 percent of total governmental activity revenues, as opposed to 25.3 percent in the prior year. The
City had $157.4 million of program revenues ($162.7 million in the prior year) and $(3.7) million in
general revenues and transfers ($3.0 million in the prior year) related to business-type activities.
•
At June 30, 2022, the City’s proprietary funds reported combined total net position of $789.2 million as
compared to $788.4 million in the prior year, as restated; an increase for the current year of $0.7 million.
The increase in net position is a result of keeping expenses in check year over year to offset a reduction
in revenue and transfers received in the business type funds. This results in a total unrestricted net
position of $283.5 million, of which $144.9 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.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2022
17
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.
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, the Chandler Cultural Foundation and the Chandler Museum 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, grants special revenue fund and general obligation bonds
debt service fund, which are considered to be major funds. Data from the other 17 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, 2022
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 $1.58
billion as of June 30, 2022. 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 (63.8 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 (14.3 percent) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position (21.9 percent) includes
$69.4 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, 2022
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,
2022 and 2021.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2022
2021
2022
2021
2022
2021
Current assets
$ 612,717,247
$ 542,856,043
$ 302,795,831
$ 318,881,326
$ 915,513,078
$ 861,737,369
Capital assets, net
723,527,045
742,145,317
764,904,850
759,679,559
1,488,431,895
1,501,824,876
Long-term assets
2,055,996
—
73,608,096
74,142,431
75,664,092
74,142,431
Total assets
1,338,300,288
1,285,001,360
1,141,308,777
1,152,703,316
2,479,609,065
2,437,704,676
Total deferred outflows of resources
116,486,358
112,346,305
14,771,734
11,193,113
131,258,092
123,539,418
Total assets and deferred
outflows of resources
1,454,786,646
1,397,347,665
1,156,080,511
1,163,896,429
2,610,867,157
2,561,244,094
Current liabilities
105,896,083
83,422,091
50,090,319
40,175,076
155,986,402
123,597,167
Long-term liabilities
476,139,376
559,698,199
305,507,307
331,393,867
781,646,683
891,092,066
Total liabilities
582,035,459
643,120,290
355,597,626
371,568,943
937,633,085
1,014,689,233
Total deferred inflows of resources
77,936,899
16,667,670
11,320,643
1,801,034
89,257,542
18,468,704
Total liabilities and deferred
inflows of resources
659,972,358
659,787,960
366,918,269
373,369,977
1,026,890,627
1,033,157,937
Net position:
Net investment in capital assets
536,775,941
555,107,220
473,953,519
458,616,595
1,010,729,460
1,013,723,815
Restricted
194,380,531
189,214,016
31,745,566
32,154,205
226,126,097
221,368,221
Unrestricted
63,657,816
(6,761,531) 283,463,157
299,755,652
347,120,973
292,994,121
Total net position
$ 794,814,288
$ 737,559,705
$ 789,162,242
$ 790,526,452
$ 1,583,976,530 $ 1,528,086,157
$ (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, 2022
20
Changes in net position. The City’s total revenues for the fiscal year ended June 30, 2022 were $576.8 million.
The total cost of all programs and services was $518.7 million, which results in an increase in net position of $58.0
million. The following table presents a summary of the changes in net position for the fiscal years ended June 30,
2022 and 2021.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2022
2021
2022
2021
2022
2021
Revenues:
Program revenues
Charges for services
$ 67,526,392
$ 66,789,357
$ 135,879,375
$ 140,364,223
$ 203,405,767
$ 207,153,580
Operating grants and contributions
17,863,747
18,694,567
8,598,756
7,965,078
26,462,503
26,659,645
Capital grants and contributions
18,678,027
16,573,341
12,887,544
14,355,873
31,565,571
30,929,214
General revenues
Property taxes
39,560,904
36,371,978
—
—
39,560,904
36,371,978
Sales taxes
182,028,630
157,513,686
21,379
16,516
182,050,009
157,530,202
Highway user taxes
19,460,326
18,108,310
—
—
19,460,326
18,108,310
Other taxes
2,210,634
2,226,568
—
—
2,210,634
2,226,568
Franchise Fees
3,861,042
3,823,524
—
—
3,861,042
3,823,524
State shared revenues
87,038,075
80,699,253
—
—
87,038,075
80,699,253
Investment income
(15,954,424)
584,026
(7,617,417)
249,448
(23,571,841)
833,474
Miscellaneous
1,916,550
1,820,520
2,811,515
2,833,025
4,728,065
4,653,545
Total revenues
424,189,903
403,205,130
152,581,152
165,784,163
576,771,055
568,989,293
Expenses:
General government
157,127,919
162,849,542
—
—
157,127,919
162,849,542
Public safety
104,673,550
122,146,366
—
—
104,673,550
122,146,366
Transportation and development
56,403,523
58,847,053
—
—
56,403,523
58,847,053
Community services
41,563,661
39,565,719
—
—
41,563,661
39,565,719
Interest and fiscal charges
6,014,168
6,653,197
—
—
6,014,168
6,653,197
Water
—
—
61,264,619
62,049,102
61,264,619
62,049,102
Wastewater
—
—
63,037,577
62,753,454
63,037,577
62,753,454
Solid waste
—
—
16,727,814
17,040,309
16,727,814
17,040,309
Airport
—
—
1,956,786
2,186,724
1,956,786
2,186,724
Housing authority
—
—
9,955,131
9,207,531
9,955,131
9,207,531
Total expenses
365,782,821
390,061,877
152,941,927
153,237,120
518,724,748
543,298,997
Excess (deficiency) before transfers
58,407,082
13,143,253
(360,775)
12,547,043
58,046,307
25,690,296
Transfers in (out)
(1,103,279)
105,991
1,103,279
(105,991)
—
—
Change in net position
57,303,803
13,249,244
742,504
12,441,052
58,046,307
25,690,296
Beginning net position, as restated
737,510,485
724,310,461
788,419,738
778,085,400
1,525,930,223
1,502,395,861
Ending net position
$ 794,814,288
$ 737,559,705
$ 789,162,242
$ 790,526,452
$ 1,583,976,530
$ 1,528,086,157
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2022
21
Revenue Sources - Fiscal Year 2022
35.27%
4.59% 5.47% 6.86%
31.56%
3.37%
0.67% 0.38%
15.09%
(4.09)%
0.82%
Charges for services
Operating grants and contributions
Capital grants and contributions
Property taxes
Sales taxes
Highway user fees
Franchise fees
Other taxes
State shared revenues
Investment income
Miscellaneous
Percent Of Total Revenue
Functional Expenses - Fiscal Year 2022
30.29%
20.18%
10.87%
8.01%
1.17%
11.81%12.15%
3.22%
0.38% 1.92%
General government
Public safety
Transportation and development
Community services
Interest and fiscal charges
Water
Wastewater
Solid waste
Airport
Housing authority
Percent of Total Expenses
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2022
22
As evidenced in the previous graph, the largest financing source for the City is charges for services at 35.27
percent, associated with the user fees (i.e., water, wastewater) and charges for services. Sales taxes and state
shared revenues (i.e., sales tax, urban revenue sharing) also comprise a significant portion of the City’s revenues
at 31.56 percent and 15.09 percent, respectively, of the total revenues with property taxes accounting for an
additional 6.86 percent of the City’s total revenues.
The City as a whole uses the largest amount of resources for general government functions (i.e. cultural
development, information technology, neighborhood resources, law, etc.) at 30.29 percent of the total functional
expenses of the City. The next largest users of resources are public safety and wastewater at 20.18 percent and
12.15 percent, respectively, with water accounting for 11.81 percent of the City’s total expenses.
Governmental activities. The increase in governmental net position totaled $57.3 million for the year ended
June 30, 2022 compared with an increase of $13.2 million in the prior year. This increase is primarily in the sales
tax and state shared revenues, mainly due to healthy development and retail sales combined with inflationary
pressures leading to higher average sales which increases tax receipts. The largest driver is the $20 billion
expansion of Intel Corporation and other developments within Chandler, which has created significant increases
in transaction privilege taxes in many tax categories. Additionally, overall expenditures have decreased.
Business-type activities. The increase in business-type net position totaled $0.7 million for the year ended
June 30, 2022 compared with an increase of $12.4 million in the prior year. This increase is a result of keeping
expenses in check offset by a reduction in revenue and transfers from the prior year.
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 $472.7 million, an increase of $49.7 million in
comparison with the prior year increase of $7.8 million. Approximately $277.2 million (58.6 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 $232.6 million represents an increase of
$44.6 million.
The remainder of the fund balance comprising of nonspendable and restricted balances amounts to $195.5
million (41.4 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 $190.5 million
represents an increase of $5.0 million. This increase is primarily due to the issuance of $31.3 million in General
Obligation bonds in December 2021, combined with continued spending of bond proceeds in the general
government, community services and streets capital projects funds netting to the increase of $5.0 million.
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 $279.6 million, while total fund balance reached $282.0
million. As a measure of the general fund’s liquidity, it may be useful to compare both assigned and unassigned
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2022
23
fund balance and total fund balance to total fund expenditures. Assigned and unassigned fund balance
represents 1.14 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 $39.4
million during the current fiscal year primarily due to increases in sales taxes and state shared revenues
received mainly due to healthy development and consumer spending, compounded by inflation. The largest
driver is the $20 billion expansion of Intel Corporation and related development within Chandler, which has
drove significant increases in transaction privilege taxes in many tax categories. Interest revenue has a large
loss due to the increased interest rates rising steadily throughout the fiscal year and the associated realized and
unrealized losses on long term investments held by the city. Transfers from the general fund to other funds also
decreased in the current fiscal year due to the one-time nature of the transfers in FY 2020-21 and spending of
federal grant funds received.
The grants special revenue fund accounts for the receipt and expenditure of miscellaneous federal, state and
local grants awarded to the City for various specific operational purposes. The fund balance restricted for grants
special revenue fund activities decreased by $4.3 million during the current fiscal year. This change represents
the usage of grant funding (i.e., AZ Cares and American Rescue Plan Act) that has been received in prior fiscal
years.
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
decreased by $1.5 million during the current fiscal year. The decrease is due to increased debt service payments
made during the fiscal year based on the defined debt service payment schedules and offset by repayment of
interfund transfers of $7.5 million and lower debt interest payments due to bond refunding for the year ended
June 30, 2022.
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 $789.2 million
and $31.8 million, respectively, compared to $788.4 million, as restated and $33.4 million in the prior fiscal year.
The enterprise funds increase is primarily due to a reduction of overall expenditures compared to prior year and
combined with revenues that fell to a larger degree against prior year revenues,
The enterprise funds net position is 35.9 percent unrestricted compared to 38.0 percent in the prior fiscal year.
Unrestricted net position of the water fund at the end of the year amounted to $144.9 million, and those for the
wastewater fund amounted to $117.4 million, compared to $152.0 million and $127.6 million in the prior fiscal
year.
BUDGETARY HIGHLIGHTS
For the 2021-22 budget year, the City of Chandler continued to engage in fiscally responsible budgeting
practices, adhered to financial policies, and used conservative budgeting as the anticipated economic impacts of
the COVID-19 pandemic were removed from the budget to show actual economic activity in the City. With a
continued conservative mindset, the City Council adopted a balanced budget for 2021-22 that removed the
reductions added to mitigate any COVID-19 impacts, and added back in spending for a variety of operating and
capital needs. Overall planned capital expenditures increased 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 (also known as State
Shared Revenue) and Urban Revenue Sharing (State Shared Income Tax).
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 2021-22 budget included various salary
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2022
24
adjustments based on agreements between bargaining units and the City, and merit and market adjustments for
general employees. Other ongoing costs, such as maintenance, utilities and supplies were managed closely to
ensure they could be covered with ongoing revenues.
The FY 2021-22 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, 2022, the City had invested over $1.0 billion in capital assets net of related debt,
including buildings, system improvements, vehicles, machinery and equipment, water rights and infrastructure
assets. Total depreciation expense for the year was $101.7 million.
During fiscal year 2021-22, the City completed several street improvements projects, most notably a project
totaling $3.4 million on Old Price Road near the Intel Corporation FAB 42 plant. It should be noted that the City
infrastructure needed to support the $20 billion Intel Corporation expansion is being offset through
reimbursements by Intel Corporation and the Arizona Department of Revenue under A.R.S. Title 42. The City
also purchased several public safety equipment assets totaling $467 thousand dollars and remodeled space in
the Neighborhood Resources Department to add a new bathroom facility for the un-housed in Chandler. Work
has also begun, or continues, on a number of governmental activity projects including street projects to improve
Cooper Road ($8.9 million added in FY 22) and Alma School Road ($2.3 million added in FY 22), parks projects
including costs accrued to complete Phase 2 of the Veterans Memorial ($3.7 million added in FY 22) and Lantana
Ranch Park ($2.3 million added in FY 22). Business-type activities have seen an increase in construction in
progress due to work that has been started to relocate utilities along Chandler Heights Road totaling $3.8 million
in FY 22 and $22.3 million in work to increase the capacity of the wastewater facility servicing the Intel
Corporation FAB 42 plant.
The following table presents capital asset balances net of accumulated depreciation for the fiscal years, ended
June 30, 2022 and 2021:
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2022
2021
2022
2021
2022
2021
Land
$
92,208,938
$
92,528,517
$
57,189,731
$
57,189,731
$ 149,398,669
$ 149,718,248
Land improvements
—
—
255,657
317,087
255,657
317,087
Infrastructure
318,148,649
341,516,567
—
—
318,148,649
341,516,567
System improvements
—
—
589,322,175
630,911,926
589,322,175
630,911,926
Buildings and improvements
158,211,441
176,774,747
7,438,261
8,049,845
165,649,702
184,824,592
Vehicles, machinery
and equipment
20,030,874
25,315,499
2,135,294
2,541,320
22,166,168
27,856,819
Water rights
—
—
42,217,346
42,645,949
42,217,346
42,645,949
Construction in progress
134,927,143
106,009,987
66,346,386
18,023,701
201,273,529
124,033,688
Total
$ 723,527,045
$ 742,145,317
$ 764,904,850
$ 759,679,559
$ 1,488,431,895
$ 1,501,824,876
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, 2022
25
Long-term debt. At the end of the current fiscal year, the City of Chandler had total bonded debt outstanding of
$495.1 million in long-term debt outstanding with $55.8 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, 2022 and 2021.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2022
2021
2022
2021
2022
2021
General obligation bonds
$ 208,979,909
$ 195,164,000
$
70,380,091
$
76,936,000
$ 279,360,000
$ 272,100,000
Excise tax revenue obligations
—
—
215,105,000
219,780,000
215,105,000
219,780,000
Special assessment bonds
635,000
1,245,000
—
—
635,000
1,245,000
Issuance premiums
15,054,239
17,548,988
14,522,022
22,960,376
29,576,261
40,509,364
Total bonds & obligations payable
$ 224,669,148
$ 213,957,988
$ 300,007,113
$ 319,676,376
$ 524,676,261
$ 533,634,364
Claims payable (as restated)
16,911,130
18,885,862
—
—
16,911,130
18,885,862
Landfill closure/post closure
—
—
4,340,000
4,340,000
4,340,000
4,340,000
Compensated absences
13,153,929
13,679,502
1,282,749
1,408,776
14,436,678
15,088,278
Net pension liability
196,423,432
293,981,374
16,117,058
22,238,502
212,540,490
316,219,876
Post-employment benefits
72,805,954
56,105,261
9,115,841
6,898,722
81,921,795
63,003,983
Total long-term liabilities
$ 523,963,593
$ 596,609,987
$ 330,862,761
$ 354,562,376
$ 854,826,354
$ 951,172,363
The City of Chandler’s total long-term liabilities decreased by $96.3 million during the current fiscal year. The City
reported a decrease in pension liability of $103.7 million, an increase in post-employment benefits of $18.9
million and a net increase of $2.0 million in bonds due to the impact of new bonds issued, bonds refunded and
regularly scheduled payments being made as planned.
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 $1.0 billion. The City
has $285.9 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 $300.8 million. The City has
$6.1 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.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Adopting a balanced budget for the next fiscal year (2022-23) 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 2021-22 budget year were stronger than anticipated, additional considerable thought
and measured change was incorporated into the Fiscal Year 2022-23 budget. The budget contains a variety of
increases to revenues and expenditures to mitigate inflationary pressures being felt across all departments, and
allows for a continued focus on providing high service levels and quality infrastructure in a cost effective way.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2022
26
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 which have become increasingly harder to fill, 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 at their current levels, and potentially
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 $1.058 billion in 2021-22 to $1.35 billion (an increase
of 27.8 percent) in 2022-23, due to appropriation remaining for grant funding received during FY 2021-22,
significant carryforward of capital projects, and new capital projects identified to aid in the expansion of a large
regional employment partner, Intel Corporation. With the addition of appropriation, the total operating budget is
increasing from $412 million to $493 million. The total new capital appropriation is increasing from $113 million
to $310 million, as the City continues a healthy capital improvement program to ensure existing infrastructure is
well maintained and the needs of residents can be met, and added projects related to development agreements.
With a 6.9 percent increase in Limited Property Values (including 5.4% of that from new growth), the City Council
chose to reduce the primary property tax rate from $0.2426 to $0.2326, 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 2022-23 Budget does not include bond sales as we plan sales every-other year. 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 which were reaffirmed in November of 2021.
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, 2022
27
28
BASIC FINANCIAL STATEMENTS
29
City of Chandler
Statement of Net Position
June 30, 2022
Component Units
Total
Chandler
Industrial
Chandler
Chandler
Governmental
Business-Type
Primary
Development
Cultural
Museum
Activities
Activities
Government
Authority
Foundation
Foundation
ASSETS
Current assets:
Equity in pooled cash and investments
$
571,092,547
$
281,641,620
$
852,734,167
$
—
$
—
$
—
Cash and investments
—
—
—
978,789
5,073,002
102,602
Accounts receivable
1,819,385
18,502,243
20,321,628
2,000
4,855
257
Privilege license tax receivable
21,864,077
—
21,864,077
—
—
—
Property taxes receivable
510,535
—
510,535
—
—
—
Due from other governments
11,250,571
706,297
11,956,868
—
—
—
Inventories
1,099,330
125,255
1,224,585
—
—
18,212
Prepaid items
4,475
—
4,475
—
144,731
—
Accrued interest receivable
1,057,267
536,734
1,594,001
—
10,964
—
Special assessments receivable
576,578
—
576,578
—
—
—
Notes receivable
318,929
—
318,929
—
—
—
Other receivables
3,123,553
1,283,682
4,407,235
—
—
—
Total current assets
612,717,247
302,795,831
915,513,078
980,789
5,233,552
121,071
Long-term assets:
Cash and investments - restricted
—
—
—
—
1,422,755
280,000
Leases Receivable
2,055,996
4,083,983
6,139,979
Notes receivable
—
154,750
154,750
—
—
—
Investment in joint venture
—
69,369,363
69,369,363
—
—
—
Capital assets:
Non-depreciable
227,136,081
123,536,117
350,672,198
—
—
—
Depreciable, net
496,390,964
641,368,733
1,137,759,697
—
13,410
—
Total capital assets
723,527,045
764,904,850
1,488,431,895
—
13,410
—
Total long-term assets
725,583,041
838,512,946
1,564,095,987
—
1,436,165
280,000
Total assets
1,338,300,288
1,141,308,777
2,479,609,065
980,789
6,669,717
401,071
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
110,846,030
7,444,539
118,290,569
—
—
—
Deferred amounts on refundings
5,640,328
7,327,195
12,967,523
—
—
—
Total deferred outflows of resources
116,486,358
14,771,734
131,258,092
—
—
—
30
LIABILITIES
Current liabilities:
Accounts payable
10,690,034
12,954,483
23,644,517
—
60,167
231
Accrued payroll
6,738,817
781,297
7,520,114
—
—
—
Trust liabilities and deposits
4,478,984
5,572,131
10,051,115
—
—
—
Accrued interest
4,058,651
4,678,583
8,737,234
—
—
—
Unearned revenue
32,105,380
—
32,105,380
—
1,016,438
380
Customer advances
—
748,371
748,371
—
—
—
Compensated absences payable
2,477,891
241,640
2,719,531
—
—
—
Bonds payable
35,141,069
25,019,368
60,160,437
—
—
—
Landfill closure and postclosure liability
—
94,446
94,446
—
—
—
Claims and judgements payable
10,205,257
—
10,205,257
—
—
—
Total current liabilities
105,896,083
50,090,319
155,986,402
—
1,076,605
611
Long-term liabilities:
Compensated absences payable
10,676,038
1,041,109
11,717,147
—
—
—
Bonds payable
189,528,079
274,987,745
464,515,824
—
—
—
Net pension liability
196,423,432
16,117,058
212,540,490
—
—
—
OPEB liability
72,805,954
9,115,841
81,921,795
—
—
—
Landfill closure and postclosure liability
—
4,245,554
4,245,554
—
—
—
Claims and judgements payable
6,705,873
—
6,705,873
—
—
—
Total long-term liabilities
476,139,376
305,507,307
781,646,683
—
—
—
Total liabilities
582,035,459
355,597,626
937,633,085
—
1,076,605
611
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
75,983,201
7,278,025
83,261,226
—
—
—
Deferred inflows of leases
1,953,698
4,042,618
5,996,316
—
—
—
Total deferred inflows of resources
77,936,899 7
11,320,643
89,257,542
—
—
—
NET POSITION
Net investment in capital assets
536,775,941
473,953,519
1,010,729,460
—
13,410
—
Restricted for:
Transportation and development
128,817,388
—
128,817,388
—
—
—
Capital improvements
21,445,156
—
21,445,156
—
—
—
Community services
37,977,867
—
37,977,867
—
—
—
Community development
522,644
—
522,644
—
—
—
Debt service
4,292,937
31,745,566
36,038,503
—
—
—
Legal restrictions
1,324,539
—
1,324,539
—
1,422,755
280,000
Total restricted
194,380,531
31,745,566
226,126,097
—
1,422,755
280,000
Unrestricted
63,657,816
283,463,157
347,120,973
980,789
4,156,947
120,460
Total net position
$
794,814,288
$
789,162,242
$ 1,583,976,530
$
980,789
$
5,593,112
$
400,460
See accompanying Notes to the Financial Statements.
31
City of Chandler
Statement of Activities
For the year ended June 30, 2022
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Function/Programs
Expenses
Services
Contributions
Contributions
Total
Primary government:
Governmental activities:
General government
$ 157,127,919 $ 42,734,281
$ 11,985,162
$
1,302,964
$ 56,022,407
Public safety
104,673,550
5,714,382
3,194,756
—
8,909,138
Transportation and development
56,403,523
13,044,002
1,539,712
17,375,063
31,958,777
Community services
41,563,661
6,033,727
1,144,117
—
7,177,844
Interest on long-term debt
6,014,168
—
—
—
—
Total governmental activities
365,782,821
67,526,392
17,863,747
18,678,027
104,068,166
Business-type activities:
Water
61,264,619
54,911,138
—
4,451,743
59,362,881
Wastewater
63,037,577
61,109,393
—
8,435,801
69,545,194
Solid waste
16,727,814
17,629,367
—
—
17,629,367
Airport
1,956,786
813,683
—
—
813,683
Chandler housing authority
9,955,131
1,415,794
8,598,756
—
10,014,550
Total business-type activities
152,941,927
135,879,375
8,598,756
12,887,544
157,365,675
Total primary government
$ 518,724,748 $ 203,405,767 $ 26,462,503
$ 31,565,571
$ 261,433,841
Component units
Chandler Industrial Development
Authority
$
2,055
$
101,039
$
—
$
—
$
101,039
Chandler Cultural Foundation
2,168,569
2,020,266
1,977,146
—
3,997,412
Chandler Museum Foundation
431
29,904
370,987
—
400,891
Total component units
$ 2,171,055
$ 2,151,209
$
2,348,133
$
—
$ 4,499,342
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
Chandler
Governmental
Business-Type
Development
Cultural
Museum
Activities
Activities
Total
Authority
Foundation
Foundation
$
(101,105,512) $
—
$
(101,105,512) $
—
$
—
$
—
(95,764,412)
—
(95,764,412)
—
—
—
(24,444,746)
—
(24,444,746)
—
—
—
(34,385,817)
—
(34,385,817)
—
—
—
(6,014,168)
—
(6,014,168)
—
—
—
(261,714,655)
—
(261,714,655)
—
—
—
—
(1,901,738)
(1,901,738)
—
—
—
—
6,507,617
6,507,617
—
—
—
—
901,553
901,553
—
—
—
—
(1,143,103)
(1,143,103)
—
—
—
—
59,419
59,419
—
—
—
—
4,423,748
4,423,748
—
—
—
(261,714,655)
4,423,748
(257,290,907)
—
—
—
—
—
—
98,984
—
—
—
—
—
—
1,828,843
—
—
—
—
—
—
400,460
—
—
—
98,984
1,828,843
400,460
39,560,904
—
39,560,904
—
—
—
182,028,630
21,379
182,050,009
—
—
—
19,460,326
—
19,460,326
—
—
—
2,210,634
—
2,210,634
—
—
—
3,861,042
—
3,861,042
—
—
—
87,038,075
—
87,038,075
—
—
—
(15,954,424)
(7,617,417)
(23,571,841)
(17,283)
(64,179)
—
1,916,550
2,811,515
4,728,065
—
—
—
(1,103,279)
1,103,279
—
—
—
—
319,018,458
(3,681,244)
315,337,214
(17,283)
(64,179)
—
57,303,803
742,504
58,046,307
81,701
1,764,664
400,460
737,510,485
788,419,738
1,525,930,223
899,088
3,828,448
—
$
794,814,288
$
789,162,242
$
1,583,976,530
$
980,789
$
5,593,112
$
400,460
33
City of Chandler
Balance Sheet -
Governmental Funds
June 30, 2022
Major Funds
General
Grants
Obligation
Other
Special
Bonds
Governmental
General
Revenue
Debt Service
Funds
Total
ASSETS
Equity in pooled cash and investments
$ 257,079,960 $ 43,159,639
$ 40,462,732
$ 181,679,634
$ 522,381,965
Accounts receivable
1,703,811
—
—
5,710
1,709,521
Privilege license tax receivable
21,864,077
—
—
—
21,864,077
Property taxes receivable
117,882
—
392,653
—
510,535
Advances to other funds
7,360,859
—
—
—
7,360,859
Due from other funds
4,796,096
—
—
—
4,796,096
Due from other governments
1,941,808
49,658
—
9,259,105
11,250,571
Inventories
1,099,330
—
—
—
1,099,330
Prepaid items
4,475
—
—
—
4,475
Accrued interest receivable
527,132
76,975
36,190
322,306
962,603
Special assessments receivable
—
—
—
576,578
576,578
Notes receivable
—
—
—
318,929
318,929
Leases receivable
2,055,996
2,055,996
Other receivables
2,770,708
—
—
116,466
2,887,174
Total assets
$ 301,322,134 $ 43,286,272
$ 40,891,575
$ 192,278,728
$ 577,778,709
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$ 5,666,626
$
63,597
$
—
$
4,714,947
$ 10,445,170
Accrued payroll
6,405,802
78,253
—
182,052
6,666,107
Trust liabilities and deposits
4,228,155
—
—
250,829
4,478,984
Accrued interest
—
—
4,045,951
12,700
4,058,651
Due to other funds
—
—
—
4,796,096
4,796,096
Advances from other funds
—
—
—
7,360,859
7,360,859
Unearned revenue
944,112
31,147,201
—
—
32,091,313
Bonds payable
—
—
32,277,716
—
32,277,716
Total liabilities
17,244,695
31,289,051
36,323,667
17,317,483
102,174,896
Deferred inflows of resources
Unavailable revenues - special assessments
—
—
—
553,878
553,878
Unavailable revenues - property taxes
85,162
—
277,754
—
362,916
Unavailable revenues - leases
1,953,698
1,953,698
Total deferred inflows of resources
2,038,860
—
277,754
553,878
2,870,492
Fund balances:
Nonspendable
1,103,805
—
—
—
1,103,805
Restricted
1,324,539
11,997,221
4,290,154
176,768,617
194,380,531
Assigned
192,983,983
—
—
—
192,983,983
Unassigned
86,626,252
—
—
(2,361,250)
84,265,002
Total fund balances
282,038,579
11,997,221
4,290,154
174,407,367
472,733,321
Total liabilities, deferred inflows and fund
balances
$ 301,322,134 $ 43,286,272
$ 40,891,575
$ 192,278,728
$ 577,778,709
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, 2022
Total Fund Balances - Total Governmental Funds
$ 472,733,321
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
$ 227,136,081
Depreciable buildings, vehicles, machinery and equipment and infrastructure,
net
496,390,964
Total capital assets
723,527,045
Certain revenues are not available to pay for current period expenditures and,
therefore, are unavailable in the funds.
916,794
Deferred amounts on refundings are not financial resources and, therefore, are
not reported in the funds.
5,640,328
Deferred outflows related to pensions and OPEB are not financial resources
and, therefore, are not reported in the funds.
110,846,030
Deferred inflows related to pensions and OPEB represent a future acquisition
of net position that is not reported in the funds.
(75,983,201)
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.
31,781,797
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 $17,038,051 which are included above, the
long-term liabilities were adjusted as follows:
Bonds payable
(192,391,432)
Net pension liability
(196,423,432)
OPEB liability
(72,805,954)
Compensated absences
(13,027,008)
Total long-term liabilities
(474,647,826)
Net Position of Governmental Activities
$ 794,814,288
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, 2022
Major Funds
Grants
General
Other
Special
Obligation Bonds
Governmental
General
Revenue
Debt Service
Funds
Total
REVENUES:
Property taxes
$
8,622,918
$
—
$
30,917,639
$
—
$
39,540,557
Sales taxes
182,028,630
—
—
—
182,028,630
Highway user taxes
—
—
—
19,460,326
19,460,326
Regional transportation taxes
—
—
—
2,210,634
2,210,634
Franchise fees
3,861,042
—
—
—
3,861,042
State shared
87,038,075
—
—
—
87,038,075
Grants and entitlements
181,869
14,918,829
—
20,921,372
36,022,070
System development fees
—
—
—
5,031,031
5,031,031
Special assessments
—
—
—
610,719
610,719
Licenses and permits
6,915,745
—
—
—
6,915,745
Charges for services
22,245,251
—
—
319,821
22,565,072
Fines and forfeitures
3,365,892
—
—
73,886
3,439,778
Rentals
119,710
—
—
—
119,710
Contributions
—
—
—
254,874
254,874
Interest revenue
(7,832,935)
(1,177,656)
(548,004)
(5,129,011)
(14,687,606)
Miscellaneous
703,417
1,637
—
605,875
1,310,929
Total revenues
307,249,614
13,742,810
30,369,635
44,359,527
395,721,586
EXPENDITURES:
Current:
General government
72,907,160
12,679,188
—
4,825,885
90,412,233
Public safety
119,891,551
3,456,698
—
642,949
123,991,198
Transportation and development
17,230,227
651,592
—
10,113,658
27,995,477
Community services
29,170,793
879,807
—
804,414
30,855,014
Capital outlay
5,667,999
259,746
—
57,904,613
63,832,358
Debt service:
Principal
—
—
32,277,716
610,000
32,887,716
Bond issuance costs
—
—
228,393
172,891
401,284
Interest and fiscal charges
—
—
7,064,929
37,600
7,102,529
Total expenditures
244,867,730
17,927,031
39,571,038
75,112,010
377,477,809
Excess (deficiency) of revenues over
(under) expenditures
62,381,884
(4,184,221)
(9,201,403)
(30,752,483)
18,243,777
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
1,273,075
—
—
293,380
1,566,455
Bond premium
—
—
—
2,160,918
2,160,918
Face amount of bonds issued
—
—
26,949,909
31,295,000
58,244,909
Payment to escrow agent
—
—
(26,716,745)
—
(26,716,745)
Transfers in
—
—
7,500,000
20,749,623
28,249,623
Transfers out
(24,245,503)
(74,281)
—
(7,771,916)
(32,091,700)
Total other financing sources (uses)
(22,972,428)
(74,281)
7,733,164
46,727,005
31,413,460
NET CHANGE IN FUND BALANCE
39,409,456
(4,258,502)
(1,468,239)
15,974,522
49,657,237
FUND BALANCES:
Beginning of year, as restated
242,629,123
16,255,723
5,758,393
158,432,845
423,076,084
End of year
$
282,038,579
$
11,997,221
$
4,290,154
$
174,407,367
$
472,733,321
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, 2022
Net Change in Fund Balances - Total Governmental Funds
$ 49,657,237
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 in the current period.
35,394,963
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.
(53,895,688)
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
32,887,716
Face amount of bonds issued
(58,244,909)
Bond premium
(2,160,918)
Bond payment to escrow agent
26,716,745
Pension related items
30,237,509
Other post employment benefits related items
(2,671,175)
26,764,968
Accrued interest payable, bond premium allocation and allocation of deferred
outflows from bond refundings related to long-term debt is recognized as an
expense in the Statement of Activities, however is not recognized in the
governmental funds because it is not payable from current financial resources.
1,088,361
Gain or Loss on sale of capital assets in the statement of activities do not provide
current financial resources and therefore are not reported as revenues in the
governmental funds
(564,242)
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.
538,850
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.
(556,231)
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.
446,699
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.
(1,571,114)
Change in Net Position of Governmental Activities
$ 57,303,803
See accompanying Notes to the Financial Statements.
37
City of Chandler
Statement of Net Position -
Proprietary Funds
June 30, 2022
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
ASSETS
Current assets:
Equity in pooled cash and investments
$
104,556,608 $
145,144,446 $
31,940,566 $
281,641,620 $
48,710,581
Accounts receivable
8,197,007
7,979,234
2,326,002
18,502,243
109,864
Due from other governments
—
601,435
104,862
706,297
—
Inventories
107,892
—
17,363
125,255
—
Accrued interest receivable
192,652
280,758
63,324
536,734
94,664
Other receivables
—
1,283,649
33
1,283,682
236,379
Total current assets
113,054,159
155,289,522
34,452,150
302,795,831
49,151,488
Long-term assets:
Notes receivable
—
—
154,750
154,750
—
Leases receivable
—
—
4,083,983
4,083,983
—
Investment in joint venture
69,369,363
—
—
69,369,363
—
Capital assets:
Non-depreciable
29,510,835
64,817,763
29,207,519
123,536,117
—
Depreciable, net
206,114,297
410,289,375
24,965,061
641,368,733
—
Total capital assets
235,625,132
475,107,138
54,172,580
764,904,850
—
Total long-term assets
304,994,495
475,107,138
58,411,313
838,512,946
—
Total assets
418,048,654
630,396,660
92,863,463
1,141,308,777
49,151,488
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan
items
3,464,548
2,347,405
1,632,586
7,444,539
—
Deferred amounts on refundings
3,545,331
3,781,864
—
7,327,195
—
Total deferred outflow of resources
7,009,879
6,129,269
1,632,586
14,771,734
—
38
LIABILITIES
Current liabilities:
Accounts payable
3,593,122
7,023,674
2,337,687
12,954,483
244,862
Accrued payroll
335,286
293,091
152,921
781,298
72,711
Trust liabilities and deposits
4,479,921
258,768
833,442
5,572,131
—
Accrued interest
1,764,857
2,913,726
—
4,678,583
—
Unearned revenue
—
—
—
—
14,067
Customer advances
251,857
235,067
261,447
748,371
—
Compensated absences payable
122,329
79,699
39,612
241,640
23,910
Bonds payable
11,169,079
13,850,289
—
25,019,368
—
Landfill closure and postclosure liability
—
—
94,446
94,446
—
Claims and judgements payable
—
—
—
—
10,205,257
Total current liabilities
21,716,451
24,654,314
3,719,555
50,090,320
10,560,807
Long-term liabilities:
Compensated absences payable
527,065
343,384
170,660
1,041,109
103,011
Bonds payable
101,254,940
173,732,805
—
274,987,745
—
Net pension liability
8,421,740
4,169,004
3,526,314
16,117,058
—
OPEB liability
4,148,403
3,257,702
1,709,736
9,115,841
—
Landfill closure and postclosure liability
—
—
4,245,554
4,245,554
—
Claims and judgements payable
—
—
—
—
6,705,873
Total long-term liabilities
114,352,148
181,502,895
9,652,264
305,507,307
6,808,884
Total liabilities
136,068,599
206,157,209
13,371,819
355,597,627
17,369,691
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
3,261,506
2,251,553
1,764,966
7,278,025
—
Deferred inflows of leases
—
—
4,042,618
4,042,618
Total deferred inflow of resources
3,261,506
2,251,553
5,807,584
11,320,643
—
NET POSITION
Net investment in capital assets
127,292,091
292,488,848
54,172,580
473,953,519
—
Restricted for:
Debt service
13,553,743
18,191,823
—
31,745,566
—
Unrestricted
144,882,594
117,436,496
21,144,066
283,463,156
31,781,797
Total net position
$
285,728,428 $
428,117,167 $
75,316,646 $
789,162,241 $
31,781,797
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, 2022
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
OPERATING REVENUES:
Service fees
$
54,911,138
$
61,109,393
$ 18,430,024
$ 134,450,555
$
102,018
Grants and entitlements
—
—
8,598,756
8,598,756
10,251
Rentals
—
—
1,428,819
1,428,819
—
Sales taxes
—
—
21,379
21,379
—
Self insurance premiums
—
—
—
—
29,126,777
Miscellaneous
482,122
86,449
48,964
617,535
605,621
Total operating revenues
55,393,260
61,195,842
28,527,942
145,117,044
29,844,667
OPERATING EXPENSES:
General and administrative
3,478,857
3,054,355
1,129,562
7,662,774
551
Personnel services
9,652,357
7,980,280
4,166,134
21,798,771
2,295,284
Contractual services
10,377,908
6,220,018
13,424,137
30,022,063
2,981,934
Commodities
12,085,477
10,765,909
1,869,930
24,721,316
3,839,085
Claims expense
—
—
—
—
24,555,740
Housing assistance payments
—
—
5,803,477
5,803,477
—
Depreciation and amortization expense
16,946,752
28,605,729
2,246,491
47,798,972
—
Total operating expenses
52,541,351
56,626,291
28,639,731
137,807,373
33,672,594
OPERATING INCOME (LOSS)
2,851,909
4,569,551
(111,789)
7,309,671
(3,827,927)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
(2,767,835)
(4,042,852)
(806,730)
(7,617,417)
(1,266,824)
Interest and fiscal charges
(3,777,257)
(5,921,971)
—
(9,699,228)
—
Accretion of bond premiums
954,085
1,239,895
—
2,193,980
—
Bond issuance costs
(327,693)
(489,315)
—
(817,008)
—
Equity interest in joint venture
(4,618,318)
—
—
(4,618,318)
—
Total Nonoperating
revenues (expenses)
(10,537,018)
(9,214,243)
(806,730)
(20,557,991)
(1,266,824)
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
(7,685,109)
(4,644,692)
(918,519)
(13,248,320)
(5,094,751)
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Capital contributions
4,451,743
8,435,801
784,839
13,672,383
—
Transfers in
—
—
1,126,340
1,126,340
3,554,405
Transfers out
(372,512)
(289,561)
(145,827)
(807,900)
(30,768)
Total capital contributions and transfers
4,079,231
8,146,240
1,765,352
13,990,823
3,523,637
CHANGE IN NET POSITION
(3,605,878)
3,501,548
846,833
742,503
(1,571,114)
NET POSITION:
Beginning of year, as restated
289,334,306
424,615,619
74,469,813
788,419,738
33,352,911
End of year
$ 285,728,428
$ 428,117,167
$ 75,316,646
$ 789,162,241
$
31,781,797
See accompanying Notes to the Financial Statements.
41
City of Chandler
Statement of Cash Flows -
Proprietary Funds
For the year ended June 30, 2022
Governmental
Other
Activities:
Major Funds
Proprietary
Internal
Water
Wastewater
Funds
Total
Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
54,611,545
$
59,978,847
$
20,065,803
$ 134,656,195
$
29,502,763
Cash received from grantors
—
—
8,576,950
8,576,950
—
Cash payments to suppliers
(23,993,541)
(14,488,145)
(21,230,115)
(59,711,801)
(33,236,255)
Cash payments to employees for services
(9,829,131)
(8,139,270)
(4,273,284)
(22,241,685)
(2,262,915)
Net cash provided (used) by operating activities
20,788,873
37,351,432
3,139,354
61,279,659
(5,996,407)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
—
—
1,126,340
1,126,340
3,554,405
Transfers out
(372,512)
(289,561)
(145,827)
(807,900)
(30,768)
Net cash provided (used) by noncapital financing activities
(372,512)
(289,561)
980,513
318,440
3,523,637
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(15,641,324)
(32,906,876)
(1,332,411)
(49,880,611)
—
Proceeds from sale of excise tax bonds
(327,693)
(489,315)
—
(817,008)
—
Principal paid on bond maturities
(8,506,671)
(10,589,817)
—
(19,096,488)
—
Interest paid on bonds
(4,394,693)
(6,840,589)
—
(11,235,282)
—
Cash payments from other funds
3,900,000
—
—
3,900,000
—
Cash payments to other funds
—
(3,900,000)
—
(3,900,000)
—
Cash received from capital contributions
4,239,339
6,289,392
—
10,528,731
—
Net cash provided (used) by capital and related financing activities
(20,731,042)
(48,437,205)
(1,332,411)
(70,500,658)
—
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
(2,767,564)
(4,032,828)
(812,086)
(7,612,478)
(1,268,921)
Net cash provided (used) by investing activities
(2,767,564)
(4,032,828)
(812,086)
(7,612,478)
(1,268,921)
Net increase (decrease) in cash and cash equivalents
(3,082,245)
(15,408,162)
1,975,370
(16,515,037)
(3,741,691)
CASH AND CASH EQUIVALENTS:
Beginning of year
107,638,853
160,552,608
29,965,196
298,156,657
52,452,272
End of year
$ 104,556,608
$ 145,144,446
$
31,940,566
$ 281,641,620
$
48,710,581
42
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
2,851,909
$
4,569,551
$
(111,789) $
7,309,671
$
(3,827,927)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
16,946,752
28,605,729
2,246,491
47,798,972
—
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
(1,262,466)
(738,993)
(4,057,905)
(6,059,364)
(253,754)
(Increase) decrease in due from other governments
—
(601,435)
33,600
(567,835)
—
(Increase) decrease in inventories
(17,224)
—
19,245
2,021
—
(Increase) decrease in other assets
—
—
(168,375)
(168,375)
—
Increase (decrease) in payables
1,965,925
5,552,137
977,746
8,495,808
115,787
Increase (decrease) in accrued payroll and compensated absences
(16,549)
(41,891)
276
(58,164)
32,369
Increase (decrease) in deposits
466,428
110,065
157,809
734,302
—
Increase (decrease) in claims payable
—
—
—
—
(1,974,732)
Increase (decrease) in unearned revenue
—
—
—
—
(88,150)
Increase (decrease) in customer advances
14,323
13,368
(61,311)
(33,620)
—
Increase (decrease) in net pension and OPEB items
(1,139,600)
(925,859)
(368,035)
(2,433,494)
—
Increase (decrease) in OPEB liability
979,375
808,760
428,984
2,217,119
—
Increase (decrease) in deferred inflow leases
—
—
4,042,618
4,042,618
—
Total adjustments
17,936,964
32,781,881
3,251,143
53,969,988
(2,168,480)
Net cash provided (used) by operating activities
$
20,788,873
$
37,351,432
$
3,139,354
$
61,279,659
$
(5,996,407)
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Proceeds Received from Refunding Bond
$
29,056,400
$
56,403,600
$
85,460,000
Bond Principal Retired from Refunding Bond
(26,724,000)
(51,876,000)
(78,600,000)
Contributions of capital assets from developers
212,404
2,146,409
$
—
2,358,813
$
—
Contributions of capital assets from city government
—
—
784,839
784,839
—
Accretion of bond premiums
954,085
1,239,895
—
2,193,980
—
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), the Chandler Cultural Foundation (Cultural Foundation),
and the Chandler Museum Foundation (Museum 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, 2022
44
NOTE 1 - Summary of Significant Accounting Policies, continued
The Cultural 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 Cultural Foundation’s budget is annually
reviewed and approved by the City Council and the Cultural Foundation’s nine-member Board is
appointed by the City Council. Financial statements for the Foundation are available from the Chandler,
Cultural Foundation, 250 N Arizona Ave, Chandler, AZ 85225.
The Museum Foundation oversees the operations of the Chandler Museum 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 Museum Foundation’s budget is annually reviewed
and approved by the City Council and the Museum Foundation’s nine-member Board is appointed by
the City Council. Financial statements for the Museum Foundation are available from the Chandler
Museum Foundation, 300 S Chandler Village Dr., Chandler, AZ 85226.
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, 2022
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.
Grants Special Revenue Fund - This fund is used to account for the receipt and expenditure of miscellaneous
federal, state and local grants awarded to the City for various specific operational purposes.
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
46
NOTE 1 - Summary of Significant Accounting Policies, continued
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.
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 $33,321,565 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 $8,028,012, for grant
special revenue fund are $7,251,308, for water enterprise fund are $25,369,465, for wastewater enterprise
fund are $55,086,537, and for non-major governmental funds are $68,981,089.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
47
NOTE 1 - Summary of Significant Accounting Policies, continued
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.
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 2, 2022, 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, Chandler Museum Foundation 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 $7,312,893 due from the
federal government for grants and $4,586,980 due from the State of Arizona for shared revenues and
grants, $43,260 due from Maricopa County for grants and $13,735 due from other governmental agencies.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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, 2022
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
three 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 property
taxes, special assessments and leases. 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 OPEB and pension plan items and leases.
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, 2022
50
NOTE 1 - Summary of Significant Accounting Policies, continued
M. Fund Balance
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 for additional details).
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, 2022
51
NOTE 1 - Summary of Significant Accounting Policies, concluded
T.
Leases
As lessor, the City of Chandler recognizes lease receivables with an initial, individual value of $100,000 or
more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the City charges the
lessee) and the implicit rate cannot be determined, the City uses its own estimated incremental borrowing
rate as the discount rate to measure lease receivables.
U. Implementation of New Accounting Standards
During the year ended June 30, 2022, the City implemented the provisions of Governmental Accounting
Standards Board Statements No. 87, Leases. This Statement increases the usefulness of the financial
statements by requiring recognition of certain lease assets and liabilities for leases that previously were
classified as operating leases. The statement establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a
lessor is required to recognize a lease receivable and a deferred inflow of resources. The City's analysis of
contracts and agreements in effect at the beginning of the year resulted in no changes to beginning
balances reported in the financial statements due to the implementation of this standard.
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, the Chandler Museum 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 Museum Foundation, separately
hold investments and are not included in the subsequent disclosures.
Deposits
At year-end, cash on hand was $45,675, the carrying amount of the City deposits was $378,132, and the
bank balance was $4,804,773. Of the bank balance, $250,000 was covered by federal depository insurance
and $4,554,773 was covered by collateral held in the pledging bank’s trust department in the City’s name. In
addition, at June 30, 2022, the City had $96,568,535 of restricted cash held by paying agent consisting of
$63,857,234 in July 1, 2022 debt service payments, $1,728,587 in unspent bond proceeds from the 2019
Excise Tax Revenue Obligation issuances, and $30,982,714 from the 2017, 2019 and 2021 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, 2022
52
NOTE 2 - Cash and Investments, continued
At June 30, 2022, 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
$ 347,715,212
$ 73,874,005
$ 273,841,207
46.01 %
U.S. Agencies:
Fannie Mae
Level 2
53,584,316
6,144,459
47,439,857
7.09
AA+/Aaa/AAA
Federal Farm Credit Banks
Level 2
13,645,606
—
13,645,606
1.81
AA+/Aaa/AAA
Federal Home Loan Bank
Level 2
6,251,892
6,251,892
—
0.83
AA+/Aaa/AAA
Freddie Mac
Level 2
65,161,073
27,004,744
38,156,329
8.62
AA+/Aaa/AAA
Corporate Bonds:
Adobe Inc Corp
Level 2
693,823
693,823
—
0.09
A+/A2
Amazon.com Inc Corp
Level 2
5,441,163
2,300,771
3,140,392
0.72
AA/A1
American Honda Finance Corp
Level 2
1,790,588
1,790,588
—
0.24
A-/A3
Apple Inc Corp
Level 2
2,722,413
2,722,413
—
0.36
AA+/Aaa/NA
Athene Global Funding
Level 2
4,974,325
—
4,974,325
0.66
A+/NA/A+
Bank Of America Corp
Level 2
10,186,963
—
10,186,963
1.35
A-/A2/AA-
Bank Of New York Mellon Corp
Level 2
9,033,600
—
9,033,600
1.20
A/A1/AA-
Brighthouse Financial Global Funding
Level 2
1,416,057
—
1,416,057
0.19
A+/A3/NA
Caterpillar Finl Service
Level 2
2,221,092
226,246
1,994,846
0.29
A/A2/A
Charles Schwab Corp
Level 2
3,548,670
—
3,548,670
0.47
A/A2/A
Exxon Mobil Corp
Level 2
3,192,873
3,192,873
—
0.42
AA-/Aa2/NA
Hershey Company
Level 2
251,785
251,785
—
0.03
A/A1
Home Depot Inc Corp
Level 2
264,251
—
264,251
0.03
A/A2
John Deere Captial Corp
Level 2
3,359,428
1,971,432
1,387,996
0.44
A/A2/A
JPMorgan Chase & CO Corporate
Level 2
7,791,672
3,483,659
4,308,013
1.03
A-/A2/AA-
Mastercard Inc Corp
Level 2
3,036,909
—
3,036,909
0.40
A+/A1
Metropolitan Life Global Funding I
Level 2
4,389,427
—
4,389,427
0.58
AA-/Aa3/AA-
Microsoft Corp
Level 2
2,789,466
—
2,789,466
0.37
AAA/Aaa
Morgan Stanley Corp
Level 2
1,693,204
—
1,693,204
0.22
A-/A1
National Rural Utilities Cooperative
i
Level 2
5,836,164
—
5,836,164
0.77
A-/A2/A
National Securities Clearing Corp
Level 2
4,304,205
—
4,304,205
0.57
AA+/Aaa/NA
New York Life Global Funding
Level 2
4,259,407
—
4,259,407
0.56
AA+/Aaa/AAA
Novartis Capital Corp
Level 2
1,641,830
—
1,641,830
0.22
AA-/A1
Nvidia Corp
Level 2
1,944,902
1,944,902
—
0.26
A/A2/NA
PNC Bank Na
Level 2
974,344
—
974,344
0.13
A/A2/A+
Qualcomm Inc Corp
Level 2
1,627,089
—
1,627,089
0.22
A/A2
State Street Corp Corporate
Level 2
441,849
—
441,849
0.06
A/A1
Target corp
Level 2
2,036,929
—
2,036,929
0.27
A/A2
Texas Instruments Inc Corp
Level 2
140,690
—
140,690
0.02
A+/Aa3
Toyota Motor Credit Corp
Level 2
6,297,176
—
6,297,176
0.83
A+/A1/A+
Truist Financial Corp
Level 2
4,972,845
4,972,845
—
0.66
A-/A3/A
US Bancorp
Level 2
3,990,892
—
3,990,892
0.53
A+/A2/A+
USAA Capital Corp
Level 2
3,799,712
—
3,799,712
0.50
AA/Aa1/NA
Wal-Mart Store Inc Corp
Level 2
2,173,728
2,173,728
—
0.29
AA/Aa2
Walt Disney Company
Level 2
169,813
169,813
—
0.02
BBB+/A2
Municipal Bonds:
AZ Tran Board TXBL REV Bonds
Level 2
1,560,000
1,560,000
—
0.21
AA+/Aa1
Scottsdale, AZ TXBL GO Bonds
Level 2
1,524,602
—
1,524,602
0.20
AAA/Aaa
Tempe Ariz Ctfs Partn
Level 2
1,186,913
—
1,186,913
0.16
AA+/NA/AA+
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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:
AMCAR 2022-1 A2
Level 2
6,629,426
—
6,629,426
0.88
NA/Aaa/AAA
BMWOT 2019-A A3
Level 2
510,638
—
510,638
0.07
AAA/NA/AAA
BMWOT 2022-A A2A
Level 2
738,891
—
738,891
0.10
AAA/Aaa/NA
BMWOT 2022-A A3
Level 2
1,399,111
—
1,399,111
0.19
AAA/Aaa/NA
CARMX 2019-2 A3
Level 2
161,007
—
161,007
0.02
AAA/NR
CARMX 2020-1 A3
Level 2
498,242
—
498,242
0.07
AAA/NR
CARMX 2021-1 A3
Level 2
472,780
—
472,780
0.06
AAA/NR
CARMX 2021-2 A3
Level 2
965,912
—
965,912
0.13
AAA/NR
CARMX 2022-2 A3
Level 2
1,392,240
—
1,392,240
0.18
AAA/Aaa/NA
CCCIT 2018-A3 A3
Level 2
5,003,649
5,003,649
—
0.66
AAA/Aaa/NA
CNH 2021-A A3
Level 2
799,073
—
799,073
0.11
AAA/NR
COMET 2019-2 A
Level 2
2,000,100
2,000,100
—
0.26
AAA/NA/AAA
COPAR 2019-1 A3
Level 2
59,431
—
59,431
0.01
AAA/Aaa
DCENT 2021-A1 A1
Level 2
782,150
—
782,150
0.10
AAA/Aaa
GMCAR 2020-4 A3
Level 2
1,742,828
—
1,742,828
0.23
AAA/NA/AAA
HAROT 2019-2 A3
Level 2
128,772
128,772
—
0.02
NR/Aaa
HAROT 2021-1 A3
Level 2
810,537
—
810,537
0.11
NR/Aaa
HAROT 2021-3 A2
Level 2
1,337,927
—
1,337,927
0.18
AAA/NA/AAA
HART 2020-A A3
Level 2
3,377,824
—
3,377,824
0.45
AAA/NA/AAA
HART 2021-A A3
Level 2
619,854
—
619,854
0.08
AAA/Aaa
HART 2021-C A3
Level 2
472,238
—
472,238
0.06
AAA/NR
HART 2022-A A2A
Level 2
989,358
—
989,358
0.13
AAA/NA/AAA
MBART 2021-1 A3
Level 2
3,927,823
—
3,927,823
0.52
AAA/Aaa/NA
NAROT 2019-A A3
Level 2
105,043
—
105,043
0.01
NR/Aaa
NAROT 2019-B A3
Level 2
216,982
—
216,982
0.03
NR/Aaa
NAROT 2021-A A3
Level 2
5,272,736
—
5,272,736
0.70
AAA/Aaa/NA
SDART 2021-2 A3
Level 2
1,733,752
—
1,733,752
0.23
NA/Aaa/AAA
TAOT 2020-A A3
Level 2
857,804
—
857,804
0.11
AAA/Aaa
TAOT 2020-C A3
Level 2
993,092
—
993,092
0.13
AAA/Aaa/NA
TAOT 2021-A A3
Level 2
2,245,874
—
2,245,874
0.30
NA/Aaa/AAA
TAOT 2021-C A3
Level 2
995,307
—
995,307
0.13
AAA/Aaa
WOART 2019-A A4
Level 2
3,052,114
—
3,052,114
0.40
AAA/NA/AAA
WOART 2019-B A3
Level 2
717,495
—
717,495
0.09
AAA/NA/AAA
WOART 2022-A A2
Level 2
443,371
—
443,371
0.06
AAA/NA/AAA
Money Market - Certificates of Deposit
Level 2
12,091,026
12,091,026
—
1.60
A-1/P-1
Money Market Fund
Level 1
83,309,224
83,309,224
—
11.02
AAAm/NR
Cash and cash equivalents
Level 1
4,849,296
4,849,296
—
0.64
AAA/Aaa/AAA
Total
$ 755,741,825
$ 248,112,045
$ 507,629,780
100.00 %
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
54
NOTE 2 - Cash and Investments, concluded
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.
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, 2022.
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
55
NOTE 3 - Property Taxes, concluded
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.
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 2021-22, current property tax collections were $38,437,603 or 100 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 2022 are not available for fiscal year 2021-22; accordingly, such taxes will not be recognized as
revenue until fiscal year 2022-23.
NOTE 4 - Capital Assets
A summary of changes in capital assets for governmental activities is as follows:
Balance
Balance
Governmental Activities
June 30, 2021
Additions
Retirements
June 30, 2022
Capital assets, not being depreciated:
Land
$
92,528,517
$
—
$
(319,579) $
92,208,938
Construction in progress
106,009,987
33,393,584
(4,476,428)
134,927,143
Total capital assets not being depreciated
198,538,504
33,393,584
(4,796,007)
227,136,081
Capital assets, being depreciated:
Infrastructure
775,946,670
4,324,026
—
780,270,696
Building and improvements
415,436,331
130,957
—
415,567,288
Vehicles, machinery and equipment
101,075,411
2,470,255
(2,058,688)
101,486,978
Total capital assets being depreciated
1,292,458,412
6,925,238
(2,058,688)
1,297,324,962
Less accumulated depreciation for:
Infrastructure
(434,430,103)
(27,691,944)
—
(462,122,047)
Building and improvements
(238,661,584)
(18,694,263)
—
(257,355,847)
Vehicles, machinery and equipment
(75,759,912)
(7,509,481)
1,813,289
(81,456,104)
Total accumulated depreciation
(748,851,599)
(53,895,688)
1,813,289
(800,933,998)
Total capital assets, being depreciated, net
543,606,813
(46,970,450)
(245,399)
496,390,964
Governmental activities capital assets, net
$
742,145,317
$
(13,576,866) $
(5,041,406) $
723,527,045
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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, 2022
Commitments
Streets
$
58,150,500
$
48,049,663
Parks and recreation
17,230,478
6,402,755
Buildings and related improvements
59,546,165
8,646,715
Total
$
134,927,143
$
63,099,133
A summary of changes in capital assets for business-type activities is as follows:
Balance
Balance
Business-Type Activities
June 30, 2021
Additions
Retirements
June 30, 2022
Capital assets, not being depreciated:
Land
$
57,189,731
$
—
$
—
$
57,189,731
Construction in progress
18,023,701
51,754,155
(3,431,470)
66,346,386
Total capital assets not being depreciated
75,213,432
51,754,155
(3,431,470)
123,536,117
Capital assets, being depreciated:
System improvements
1,401,070,404
3,770,898
—
1,404,841,302
Building and improvements
26,438,539
376,779
—
26,815,318
Vehicles, machinery and equipment
20,487,727
553,901
(58,000)
20,983,628
Water rights
42,860,250
—
—
42,860,250
Land improvements
2,668,237
—
—
2,668,237
Total capital assets being depreciated
1,493,525,157
4,701,578
(58,000)
1,498,168,735
Less accumulated depreciation for:
System improvements
(770,158,478)
(45,360,649)
—
(815,519,127)
Buildings and improvements
(18,388,694)
(988,363)
—
(19,377,057)
Vehicles, machinery and equipment
(17,946,407)
(959,927)
58,000
(18,848,334)
Water rights
(214,301)
(428,603)
—
(642,904)
Land improvements
(2,351,150)
(61,430)
—
(2,412,580)
Total accumulated depreciation
(809,059,030)
(47,798,972)
58,000
(856,800,002)
Total capital assets, being depreciated, net
684,466,127
(43,097,394)
—
641,368,733
Business-type activities capital assets, net
$
759,679,559
$
8,656,761
$
(3,431,470) $
764,904,850
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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, 2022
Commitments
Sewer system improvements
$ 40,167,407 $ 48,422,895
Water system improvements
24,008,993
22,112,732
Solid waste system improvements
436,538
197,932
Airport improvements
1,733,448
312,597
Total
$ 66,346,386 $ 71,046,156
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government
$
7,058,701
Public safety
7,464,590
Community services
10,413,693
Transportation and development
28,958,704
Total depreciation expense - governmental activities
$ 53,895,688
Business-type activities:
Water
$ 16,946,752
Wastewater
28,605,729
Solid waste
615,023
Airport
1,014,173
Chandler housing authority
617,295
Total depreciation expense - business-type activities
$ 47,798,972
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, 2022
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 $315,304,307 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 less than 69 percent of
total ad valorem taxes. The total principal and interest remaining to be paid on the governmental activities
portion of the bonds is $237,113,595. Principal and interest paid for the current year and total ad valorem
property taxes were $27,170,399 and $39,540,557 respectively.
General obligation bonds outstanding as reported in governmental and business-type activities at June 30,
2022 were as follows:
Outstanding
Governmental Activities General Obligation Bonds:
June 30, 2022
$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.
$
56,795,000
$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.
39,040,000
$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.
29,400,000
$48,205,000 Refunding Bonds, Series 2021, due in annual installments of
$117,390 to $14,781,390 beginning 7/1/22 through 7/1/28; interest at 0.4 percent
to 1.75 percent.
26,949,909
$31,295,000 Capital Improvement Bonds, Series 2021, due in annual installments
of $250,000 to $13,120,000 beginning 7/1/22 through 7/1/28; interest at 5
percent.
31,295,000
Total Governmental Activities General Obligation Bonds
$
208,979,909
Business-Type Activity General Obligation Bonds
Annual principal and interest payments on the business-type activities bonds were less than 25 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 $78,190,712. Principal and interest paid
for the current year and total net water system, wastewater system revenues were $12,851,192 and
$52,405,370 respectively.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
59
NOTE 5 - Long-Term Liabilities, continued
Outstanding
Business-Type Activities General Obligation Bonds:
June 30, 2022
$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.
$
35,575,000
$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
$48,205,000 Refunding Bonds, Series 2021, due in annual installments of
$68,064 to $11,123,610 beginning 7/1/22 through 7/1/28; interest at 0.4 percent
to 1.75 percent.
21,255,091
Total Business-Type Activities General Obligation Bonds
$
70,380,091
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 approximately 36% percent of net system revenues. The total principal and
interest to be paid on the obligations is $259,993,807. Principal and interest paid for the current year and
net water and wastewater system revenues were $19,020,495 and $52,405,370 respectively. Total excise tax
revenues during the fiscal year were $283,209,384. Principal and interest payments were less than 7 percent
of total excise tax revenues.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
60
NOTE 5 - Long-Term Liabilities, continued
Outstanding
Business-Type Activities Excise Tax Revenue Obligations:
June 30, 2022
$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.
$
12,200,000
$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.
55,835,000
$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.
17,140,000
$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.
33,420,000
$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.
11,050,000
$85,460,000 Water & Sewer Excise Tax Revenue Refunding Obligations, Series
2021, due in annual installments of $1,040,000 to $11,965,000 beginning 7/1/22
through 7/1/33; interest at 0.42 percent to 2.3 percent.
85,460,000
Total Business-Type Activities Excise Tax Revenue Obligations
$
215,105,000
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, 2022, 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, 2022 were as follows:
Outstanding
Special Assessment Bonds with Governmental Commitment:
June 30, 2022
$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.
$
635,000
Total Special Assessment Bonds with Governmental Commitment
$
635,000
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
61
NOTE 5 - Long-Term Liabilities, continued
Changes in Long-Term Liabilities
Balance
Balance
Due within
Governmental Activities:
June 30, 2021
Additions
Reductions
June 30, 2022
One Year
Compensated absences
$ 13,679,502
$
1,886,315
$
(2,411,888) $ 13,153,929
$
2,477,891
Bonds payable:
General obligation bonds
195,164,000
58,244,909
(44,429,000) 208,979,909
32,277,716
Special assessment bonds
1,245,000
—
(610,000)
635,000
635,000
Issuance premiums
17,548,988
2,160,919
(4,655,668)
15,054,239
2,228,353
Total bonds payable
213,957,988
60,405,828
(49,694,668) 224,669,148
35,141,069
Claims payable
18,885,862
22,769,700
(24,744,432)
16,911,130
10,205,257
Net pension liability
293,981,374
—
(97,557,942) 196,423,432
—
OPEB liability
56,105,261
16,700,693
—
72,805,954
—
Totals
$ 596,609,987
$ 101,762,536
$ (174,408,930) $ 523,963,593
$ 47,824,217
Balance
Balance
Due Within
Business-Type Activities:
June 30, 2021
Additions
Reductions
June 30, 2022
One Year
Compensated absences
$
1,408,776
$
109,177
$
(235,204) $
1,282,749
$
241,640
Bonds & obligations payable:
General obligation bonds
76,936,000
21,255,091
(27,811,000)
70,380,091
10,667,284
Excise tax revenue obligations
219,780,000
85,460,000
(90,135,000) 215,105,000
12,175,000
Issuance premiums
22,960,376
—
(8,438,354)
14,522,022
2,177,084
Total bonds & obligations
payable
319,676,376
106,715,091
(126,384,354) 300,007,113
25,019,368
Net pension liability
22,238,502
—
(6,121,444)
16,117,058
—
OPEB liability
6,898,722
2,217,119
—
9,115,841
—
Landfill closure/post closure
4,340,000
—
—
4,340,000
94,446
Totals
$ 354,562,376
$ 109,041,387
$ (132,741,002) $ 330,862,761
$ 25,355,454
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
62
NOTE 5 - Long-Term Liabilities, continued
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, 2022, the 6 percent debt limitation was $300,769,253,
providing a debt margin of $294,648,031 and the 20 percent debt limitation was $1,002,564,178, providing a
debt margin of $716,689,746.
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, 2022 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,
2022:
GOVERNMENTAL ACTIVITIES
Years
General
General
Improvement
Improvement
Ended
Obligation
Obligation
Districts
Districts
June 30
Principal
Interest
Principal
Interest
Total
2023
$ 32,277,716
$
7,320,146
$
635,000
$
25,400
$ 40,258,262
2024
34,108,034
5,725,632
—
—
39,833,666
2025
26,351,936
4,286,099
—
—
30,638,035
2026
22,350,023
3,242,012
—
—
25,592,035
2027
21,638,420
2,548,473
—
—
24,186,893
2028-2032
59,818,780
4,550,980
—
—
64,369,760
2033-2037
12,435,000
460,343
—
—
12,895,343
Total
$ 208,979,909
$ 28,133,685
$
635,000
$
25,400
$ 237,773,994
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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
2023
$ 10,667,284
$
2,315,661
$ 12,175,000
$
6,587,619
$ 31,745,564
2024
10,231,966
1,879,720
12,980,000
6,027,054
31,118,740
2025
9,543,064
1,401,616
13,910,000
5,398,961
30,253,641
2026
9,979,977
986,281
14,570,000
4,816,525
30,352,783
2027
10,096,580
718,376
13,785,000
4,344,559
28,944,515
2028-2032
19,861,220
508,968
86,595,000
14,282,030
121,247,218
2033-2037
—
—
58,130,000
3,385,810
61,515,810
2038-2042
—
—
2,960,000
46,250
3,006,250
Total
$ 70,380,091
$
7,810,622
$ 215,105,000
$ 44,888,808
$ 338,184,521
NOTE 6 - Defeased Debt
Current Year Defeasance
On December 1, 2021, the City issued $48,205,000 in General Obligation Refunding Bonds with an average
interest rate of 1.68 percent. This issuance was used to advance refund $43,320,000 of Series 2014 General
Obligation Refunding Bonds with an average interest rate of 4.25%. The advanced refunding portion of the
total net proceeds totaling $47,787,943 (after payment of $417,057 in underwriting fees, insurance, and
other issuance costs) was used to purchase $47,787,078 in U.S. government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on
the 2014 General Obligation Refunding Bonds. As a result the liability for these bonds has been removed
from the government-wide and statement of net assets. The refunding issuance resulted in a deferred
outflow of $3,552,964. This difference will be allocated to operations through the fiscal year 2028 using the
straight-line amortization method. The City completed the refunding to decrease its total debt service
payments over the next 7 years by $1,583,329 and to obtain an economic gain (difference between the
present values of the old and new debt service payments) of $1,510,831.
On December 1, 2021, the City also issued $85,460,000 in Excise Tax Revenue Refunding Bonds with an
average interest rate of 2.06 percent. This issuance was used to advance refund $78,600,000 of Series 2013
Excise Tax Revenue Bonds with an average interest rate of 4.46 percent. The advanced refunding portion of
the total net proceeds totaling $84,816,508 (after payment of $643,492 in underwriting fees, insurance, and
other issuance costs) was used to purchase $84,815,823 in U.S. government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on
the 2013 Excise Tax Revenue Bonds. As a result the liability for these bonds has been removed from the
government-wide and statement of net assets. The refunding issuance resulted in a deferred outflow of
$1,918,671. This difference will be allocated to operations through the fiscal year 2033 using the straight-
line amortization method. The City completed the refunding to decrease its total debt service payments
over the next 12 years by $8,554,041 and to obtain an economic gain (difference between the present values
of the old and new debt service payments) of $7,621,519.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
64
NOTE 6 - Defeased Debt, concluded
Bonds and obligations that have been advance refunded (defeased) as of June 30, 2022:
Refunded Debt Outstanding
Amount
Excise Tax Revenue Obligations, Series 2013 (Final Redemption 7/1/23)
$ 78,600,000
General Obligation Bonds, Series 2014 (Final Redemption 7/1/24)
43,320,000
Total Refunded Bonds and Obligations Outstanding
$ 121,920,000
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, 2022, the City estimates total costs related to landfill closure and postclosure
care is 16,588,256 and has recognized that entire amount since the landfill no longer accepts waste. To date,
$12,248,256 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.
The estimated total current cost of the landfill closure and postclosure, $16,588,256, 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, 2022. 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, 2021. 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, and, Airport 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
$
4,239,339 $
212,404 $
— $
4,451,743
Wastewater
6,289,392
2,146,409
—
8,435,801
Airport
—
—
784,839
784,839
Total
$
10,528,731 $
2,358,813 $
784,839 $ 13,672,383
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
65
NOTE 9 - Fund Balance
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.
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, 2022 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, 2022
66
NOTE 9 - Fund Balance, concluded
General
Grant
Obligation
Special
Bonds Debt
Other
General
Revenue
Service
Governmental
Total
Nonspendable:
Inventories
$
1,099,330
$
—
$
—
$
—
$
1,099,330
Prepaid items
4,475
—
—
—
4,475
Total nonspendable
1,103,805
—
—
—
1,103,805
Restricted for:
Court enhancement
493,793
—
—
—
493,793
Judicial enhancement
507,212
—
—
—
507,212
Weapons proceeds
151,636
—
—
—
151,636
Citing agency
45,922
—
—
—
45,922
Smart and Safe AZ
125,976
—
—
—
125,976
Transportation and development
—
11,997,221
—
116,820,167
128,817,388
Debt service reserve
—
—
4,290,154
2,783
4,292,937
Community development
—
—
—
522,644
522,644
Community services
—
—
—
37,977,867
37,977,867
Other capital projects
—
—
—
21,445,156
21,445,156
Total restricted
1,324,539
11,997,221
4,290,154
176,768,617
194,380,531
Assigned to:
Domestic violence prevention
81
—
—
—
81
Self-insurance purposes
3,000,000
—
—
—
3,000,000
Traffic safety reserve
212,000
—
—
—
212,000
PSPRS contribution
50,000,000
—
—
—
50,000,000
Capital improvement projects
130,124,529
—
—
—
130,124,529
Economic development projects
5,982,500
—
—
—
5,982,500
ARPA related projects
3,664,873
—
—
—
3,664,873
Total assigned
192,983,983
—
—
—
192,983,983
Unassigned
86,626,252
—
—
(2,361,250)
84,265,002
Total unassigned
86,626,252
—
—
(2,361,250)
84,265,002
Total fund balances
$
282,038,579
$
11,997,221
$
4,290,154
$
174,407,367
$
472,733,321
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 2021-22. This amounts to $45,454,300
and is included in unassigned above.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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, 2022, 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
$ 196,423,432 $
16,117,058 $ 212,540,490
Pension deferred outflows of resources
87,899,955
4,439,613
92,339,568
Pension deferred inflows of resources
65,914,761
6,081,100
71,995,861
Pension expense
17,508,032
4,377,008
21,885,040
OPEB Plans
Governmental
Business-type
Activities
Activities
Total
Net OPEB liability
$
72,805,954 $
9,115,841 $
81,921,795
OPEB deferred outflows of resources
22,946,075
3,004,926
25,951,001
OPEB deferred inflows of resources
10,068,440
1,196,925
11,265,365
OPEB expense
5,121,484
679,908
5,801,392
The City of Chandler reported $50,585,898 and $2,011,875 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, 2022
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 12.41 percent (12.22 percent for retirement and 0.19
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 12.41 percent (12.01 percent for
retirement, 0.21 percent for health insurance premium benefit, and 0.19 percent for long-term disability) of
the active members’ annual covered payroll.
In addition, the City of Chandler was required by statute to contribute at the actuarially determined rate of
10.22 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, 2022, 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, 2022, were $9,580,356. 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, 2022
69
NOTE 10 - Retirement and Pension Plans, continued
D. Pension Liability
At June 30, 2022, the City of Chandler reported a liability of $93,397,278 for its proportionate share of the
net pension liability of the ASRS. The net pension liability was measured as of June 30, 2021. 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, 2020, to the measurement date
of June 30, 2021. 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, 2021, the City of Chandler’s
proportion was 0.71 percent, which was no change from its proportion measured as of June 30, 2020.
E.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2022, the City of Chandler recognized pension expense for ASRS of $6,059,571
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
$
1,423,755 $
—
Changes of assumptions or other inputs
12,156,402
—
Net difference between projected and actual earnings
on pension plan investments
—
29,591,543
Changes in proportion and differences between
contributions and proportionate share of contributions
350,501
531,142
Contributions subsequent to the measurement date
9,580,356
—
Total
$
23,511,014 $
30,122,685
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, 2023. 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:
2022
$
27,446
2023
501,414
2024
(6,523,419)
2025
(10,197,468)
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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, 2020
Actuarial roll forward date
June 30, 2021
Actuarial cost method
Entry age normal
Discount rate
7%
Projected salary increases
2.9%-8.4%
Inflation
2.3%
Permanent base increases
Included
Mortality rates
2017 SRA Scale U-MP
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the five-year period ended June 30, 2020. 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, 2020, 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 4.70
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%
4.90%
Fixed Income - Credit
20%
5.20%
Fixed Income - Interest Rate Sensitive
10%
0.70%
Real estate
20%
5.70%
Total
100%
G. Discount Rate
The discount rate used to measure the ASRS total pension liability was 7.0 percent, which decreased by 0.5
percent from the discount rate used as of June 30, 2020. The projection of cash flows used to determine the
discount rate assumed that contributions from participating employers will be made based on the
actuarially determined rates based on the ASRS Board’s funding policy, which establishes the contractually
required rate under Arizona statute. Based on those assumptions, the 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, 2022
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 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
(6.0%)
Current
Discount
Rate (7.0%)
1% Increase
(8.0%)
City of Chandler's proportionate
share of the net pension liability
$ 146,906,096 $ 93,397,278 $ 48,785,729
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.
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 in the table on the following page. See the
publicly available PSPRS financial report for additional benefits information.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
72
NOTE 10 - Retirement and Pension Plans, continued
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, 2022, the following employees were covered by the agent pension plan’s benefit terms:
PSPRS - Police
PSPRS - Fire
Inactive employees or beneficiaries
currently receiving benefits
201
82
Inactive employees entitled to but not
yet receiving benefits
74
34
Active employees
272
181
Total
547
297
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
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, 2022, are indicated below. Rates are a
percentage of active members’ annual covered payroll.
PSPRS - Police
PSPRS - Fire
Active members - pension
Tier 1
7.65 %
9.56 %
Tier 2
7.65 %
9.56 %
Tier 3 DB
10.12 %
10.76 %
Tier 3 DC
9.88 %
9.88 %
Employer rates - pension
Tier 1
49.12 %
41.67 %
Tier 2
49.12 %
41.67 %
Tier 3 DB
45.46 %
36.78 %
Tier 3 DC
45.22 %
35.90 %
In addition, the City of Chandler was required by statute to contribute at the actuarially determined rate of
35.34 percent for police and 26.02 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
$
28,025,675 $
14,991,742
E.
Pension Liability
At June 30, 2022, the City of Chandler reported $81,695,357 in net pension liability for police and
$37,447,855 in net pension liability for fire. The net pension liabilities were measured as of June 30, 2021,
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, 2021, 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, 2022
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, 2021
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%
0.42%
International Public Equity
16%
5.20%
Other Assets (Capital Appreciation)
7%
5.43%
Cash - Mellon
1%
(0.31)%
Diversifying Strategies
10%
3.99%
Global Private Equity
20%
7.67%
Private Credit
20%
5.74%
U.S. Public Equity
24%
4.08%
Total
100%
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
75
NOTE 10 - Retirement and Pension Plans, continued
Increase/(Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
PSPRS - Police
Balances at June 30, 2021
$
308,011,519 $
179,779,599 $
128,231,920
Changes for the year:
Service cost
5,440,836
—
5,440,836
Interest on the total pension liability
22,385,115
—
22,385,115
Changes of benefit terms
—
—
—
Differences between expected and actual
experience in the measurement of the
pension liability
3,894,134
—
3,894,134
Changes of assumptions or other inputs
—
—
—
Contributions - employer
—
22,596,733
(22,596,733)
Contributions - employee
—
2,424,870
(2,424,870)
Net investment income
—
53,483,321
(53,483,321)
Benefit payments, including refunds of
employee contributions
(13,613,884)
(13,613,884)
—
Administrative expense
—
(250,715)
250,715
Other changes
—
2,439
(2,439)
Net changes
18,106,201
64,642,764
(46,536,563)
Balances at June 30, 2022
$
326,117,720 $
244,422,363 $
81,695,357
Increase/(Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
PSPRS - Fire
Balances at June 30, 2021
$
180,991,250 $
115,550,305 $
65,440,945
Changes for the year:
Service cost
3,923,796
—
3,923,796
Interest on the total pension liability
13,243,975
—
13,243,975
Differences between expected and actual
experience in the measurement of the
pension liability
4,097,391
—
4,097,391
Contributions - employer
—
13,299,020
(13,299,020)
Contributions - employee
—
1,778,804
(1,778,804)
Net investment income
—
34,335,848
(34,335,848)
Benefit payments, including refunds of
employee contributions
(6,981,473)
(6,981,473)
—
Administrative expense
—
(160,215)
160,215
Other changes
—
4,795
(4,795)
Net changes
14,283,689
42,276,779
(27,993,090)
Balances at June 30, 2022
$
195,274,939 $
157,827,084 $
37,447,855
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
76
NOTE 10 - Retirement and Pension Plans, continued
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
$ 127,388,510 $
81,695,357 $
44,587,678
PSPRS - Fire:
Rate
6.30
7.30
8.30
Net pension liability
$
64,705,674 $
37,447,855 $
15,145,161
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.
J.
Pension Expense
For the year ended June 30, 2022, the City of Chandler recognized the following as pension expense:
Pension
Expense
PSPRS - Police
$
10,428,960
PSPRS - Fire
5,354,473
K.
Pension Deferred Outflows/Inflows of Resources
At June 30, 2022, the City of Chandler reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
77
NOTE 10 - Retirement and Pension Plans, continued
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Police
Resources
Resources
Differences between expected and actual experience
$
12,567,294 $
917,705
Changes of assumptions or other inputs
4,453,508
—
Net difference between projected and actual earnings
on pension plan investments
—
24,931,559
Contributions subsequent to the measurement date
28,025,675
—
Total
$
45,046,477 $
25,849,264
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Fire
Resources
Resources
Differences between expected and actual experience
$
5,093,143 $
160,176
Changes of assumptions or other inputs
3,697,192
—
Net difference between projected and actual earnings
on pension plan investments
—
15,863,736
Contributions subsequent to the measurement date
14,991,742
—
Total
$
23,782,077 $
16,023,912
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, 2023. 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
2023 $
(1,574,998) $ (1,030,978)
2024
(1,701,713)
(1,506,867)
2025
(2,127,405)
(2,529,530)
2026
(4,073,368)
(3,977,402)
2027
649,022
1,090,027
Thereafter
—
721,173
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
78
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
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.
A.
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.
B.
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.
C.
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
705
Active members
1,632
Total
2,337
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
79
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
D. Total OPEB Liability
The City’s total OPEB liability of $81,921,795 was measured as of June 30, 2021 and was determined by an
actuarial valuation as of that date.
E.
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, 2021 actuarial valuation was determined using
the following actuarial assumptions and other inputs, applied to all periods included in the measurement,
unless otherwise specified:
Measurement date
June 30, 2021
Actuarial valuation date
June 30, 2021
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.
F.
Changes in the Total OPEB Liability
Total OPEB liability - beginning of year
$ 63,003,983
Changes for the year:
Service cost
3,414,033
Interest
1,440,322
Differences between expected and actual
experience
(2,181,125)
Changes in assumptions or other inputs
18,748,388
Estimated benefit payments
(2,503,806)
Net changes
18,917,812
Total OPEB liability - end of year
$ 81,921,795
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
80
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
Changes in assumptions reflect the following:
1.
The discount rate decreased from 2.21% to 2.16% based on the changes in the Bond Buyer 20 GO
index municipal bond rate from June 30, 2020 to June 30, 2021.
2.
The per capita health costs were updated based on recent experience.
3.
The life insurance premium was updated to current rates.
4.
The mortality, withdrawal, disability, retirement rates and salary scales for General employees
were updated based on the results of the recent ASRS experience study.
5.
The mortality projection scale for public safety employees was updated based on the recent PSPRS
valuation.
6.
The percentage of future retirees assumed to cover their spouse was decreased from 70% to 65%
for males and 45% to 40% for females based on recent experience.
G. 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
(1.16%)
Current Discount
Rate (2.16%)
1% Increase
(3.16%)
Total OPEB liability
$
93,689,930 $
81,921,795 $
72,410,422
H. 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
$
76,492,373 $
81,921,795 $
88,396,541
I.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of $5,801,392. At June 30, 2022, the City
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
81
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, concluded
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual experience
$
— $
7,841,561
Changes of assumptions or other inputs
23,175,399
3,423,804
Contributions subsequent to measurement date
2,775,602
—
Total
$
25,951,001 $
11,265,365
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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
Year Ending June 30:
2023
$
947,037
2024
947,037
2025
2,302,156
2026
3,595,025
2027
3,329,866
Thereafter
788,913
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
82
NOTE 13 - Risk Management, concluded
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 2021-22, 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 $3,000,000 in Public Safety and up to $1,000,000 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 2021-22, 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.
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 $16,911,130 reported as claims payable in the Self-Insurance Fund at June 30, 2022, 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 2021 and 2022 were:
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
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
2022
Workers' compensation
$ 10,493,303 $
2,255,779 $ (2,204,720) $ 10,544,362
Property and liability
2,114,853
(161,929)
(180,364)
1,772,560
Health
6,088,219
18,732,049 (20,401,678)
4,418,590
Dental
189,487
1,943,801
(1,957,670)
175,618
$ 18,885,862 $ 22,769,700 $ (24,744,432) $ 16,911,130
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
83
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,
$10,448,641. The General Fund provides funding for various capital projects, $13,696,106, as well as annual
subsidies for the Airport and Public Housing Authority, $1,126,340. Bond payments totaling $7,500,000 to
General Obligation Bonds Debt Service Fund from Non-Major Governmental Funds for bond repayments.
$74,281 from Grants Capital Project Fund to Non-major Governmental Funds for AZCARES funding. $85,000
from Grants Capital Project Fund to General Fund for AZCARES funding as well. The interfund transfers in
and out at June 30, 2022 are as follows:
Transfers In:
Transfers out:
General
Obligation
Bonds Debt
Service
Fund
Non-Major
Govern-
mental
Funds
Non-Major
Enterprise
Funds
Internal
Service
Fund
Total
General Fund
$
— $ 19,655,985 $ 1,126,340 $ 3,463,178 $ 24,245,503
Grants Special Revenue Fund
—
74,281
—
—
74,281
Non-Major Governmental Funds
7,500,000
180,689
—
91,227
7,771,916
Water Enterprise Fund
—
372,512
—
—
372,512
Wastewater Enterprise Fund
—
289,561
—
—
289,561
Non-Major Enterprise Funds
—
145,827
—
—
145,827
Internal Service Fund
—
30,768
—
—
30,768
Total
$ 7,500,000 $ 20,749,623 $ 1,126,340 $ 3,554,405 $ 32,930,368
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 $784,839 (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
$ 5,596,432
Capital projects - public buildings
1,764,427
Total governmental funds
$ 7,360,859
Interfund advances were made from governmental funds to capital projects funds to cover expenditures in
impact fee funds until impact fees are received. $900,000 of the public safety buildings and improvements
capital projects fund advances and $350,000 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, 2022
84
NOTE 15 - Interfund Receivables and Payables, concluded
B.
Interfund Due To/Due From
Due from other funds
Due to other funds
Total
General
Capital projects - grants
$ 4,720,581
Special revenue - community development
68,298
Debt service - special assessment bonds
7,217
Total general fund
$ 4,796,096
Interfund balances at June 30, 2022 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, 2022, is:
City of Chandler's Share
$ 69,369,363
Town of Gilbert's Share
75,878,049
$ 145,247,412
NOTE 17 - Deficit in Fund Balances
The police confiscated property special revenue fund had a deficit fund balance of $69,394. The deficit will
be covered by future revenues. The general government capital project fund had a deficit fund balance of
$561,607. The deficit will be covered by future revenues. The public buildings capital projects fund had
deficit fund balance of $1,730,249. The funds were financed by advances of interfund loans and will be paid
back by future impact fee revenues.
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 2021-22 is $719,689. 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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
85
NOTE 18 - Tax Abatements, concluded
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, 2022, the City abated property taxes totaling $203,291 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 $133,245 of property tax abated.
NOTE 19 - Leases
As lessor, the City of Chandler has entered into lease agreements involving land for wireless towers and
airport land and facilities. The City recognizes lease receivables with an initial, individual value of $100,000
or more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the City charges
the lessee) and the implicit rate cannot be determined, the City uses its own estimated incremental
borrowing rate as the discount rate to measure lease receivables. The City's estimated incremental
borrowing rate is calculated at 2.41%. The total amount of inflows of resources, including lease revenue,
interest revenue, and other lease-related inflows, recognized during the fiscal year was $471,132.
NOTE 20 - Prior Period Adjustments
Prior year financial statements did not reverse a receivable in the Water Fund timely, adjust notes receivable
timely within the Community Services Capital Project Fund, and a utility account was overcharged impacting
the General Fund and Wastewater Fund. As a result of the restatement of beginning balances, the following
reconciles the previously reported July 1, 2021 balances.
Fund Balance
July 1, 2021 as
previously
reported
Prior Period
Adjustment
Fund Balance
July 1, 2021 as
Restated
General Fund
$ 242,592,399
$
36,724
$ 242,629,123
Non-Major
Governmental Funds $ 158,518,783
$
(85,938)
$ 158,432,845
Net Position
July 1, 2021 as
previously
reported
Prior Period
Adjustment
Net Position
July 1, 2021 as
Restated
Water Fund
$ 290,669,734
$
(1,335,428)
$ 289,334,306
Wastewater Fund
$ 425,386,905
$
(771,286)
$ 424,615,619
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2022
86
REQUIRED SUPPLEMENTARY INFORMATION
87
88
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- General Fund
For the year ended June 30, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
8,453,200
$
8,453,200
$
8,622,918
$
169,718
Sales taxes
148,370,000
148,370,000
182,028,630
33,658,630
Franchise fees
3,188,200
3,188,200
3,861,042
672,842
State shared
74,390,000
74,390,000
87,038,075
12,648,075
Grants and entitlements
163,500
163,500
181,869
18,369
Licenses and permits
6,129,000
6,129,000
6,915,745
786,745
Charges for services
19,221,841
19,221,841
22,245,251
3,023,410
Fines and forfeitures
3,581,300
3,581,300
3,365,892
(215,408)
Rentals
116,700
116,700
119,710
3,010
Interest revenue
2,316,000
2,316,000
(7,832,935)
(10,148,935)
Miscellaneous
175,000
175,000
703,417
528,417
Total Revenues
266,104,741
266,104,741
307,249,614
41,144,873
EXPENDITURES:
City clerk
1,197,666
1,326,170
1,239,371
86,799
City magistrate
4,996,699
5,109,053
3,768,895
1,340,158
City manager
17,590,588
18,202,743
15,658,744
2,543,999
Communications and public affairs
2,859,066
3,333,382
2,860,837
472,545
Community services
27,423,841
29,615,479
27,848,906
1,766,573
Cultural development
3,777,181
4,004,665
3,920,694
83,971
Development services
9,394,217
9,853,187
8,583,994
1,269,193
Fire
38,151,332
41,989,720
41,903,161
86,559
Information technology
12,623,995
14,748,313
12,921,149
1,827,164
Law
3,915,729
4,076,974
4,082,717
(5,743)
Management services
88,438,420
70,529,039
31,044,022
39,485,017
Mayor and council
1,039,756
1,064,708
906,161
158,547
Neighborhood resources
3,991,049
9,859,474
5,077,941
4,781,533
Police
77,498,767
83,854,448
79,719,410
4,135,038
Public works
10,694,700
13,422,352
12,454,205
968,147
Total expenditures
303,593,006
310,989,707
251,990,207
58,999,500
REVENUES OVER (UNDER) EXPENDITURES
(37,488,265)
(44,884,966)
55,259,407
100,144,373
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
(400,000)
(400,000)
1,273,075
1,673,075
Transfers in
8,521,086
8,521,086
—
(8,521,086)
Transfers out
(67,953,676)
(67,953,676)
(24,245,503)
43,708,173
Total other financing sources (uses)
(59,832,590)
(59,832,590)
(22,972,428)
36,860,162
Net change in fund balance
(97,320,855)
(104,717,556)
32,286,979
137,004,535
Fund balance, July 1, 2021
242,629,123
242,629,123
242,629,123
—
Fund balance, June 30, 2022
$
145,308,268
$
137,911,567
$
274,916,102
$
137,004,535
See accompanying notes to this schedule.
89
90
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
- Grants Special Revenue
For the year ended June 30, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
57,650,000
$
35,211,827
$
14,918,829
$ (20,292,998)
Interest revenue
190,000
190,000
(1,177,661)
(1,367,661)
Miscellaneous
—
—
1,637
1,637
Total revenues
57,840,000
35,401,827
13,742,805
(21,659,022)
EXPENDITURES:
General government
74,762,956
26,819,935
17,592,739
9,227,196
Public safety
56,464
8,654,321
3,457,311
5,197,010
Transportation and development
—
2,651,675
2,540,249
111,426
Community services
—
1,030,352
939,474
90,878
Capital outlay
—
307,115
648,561
(341,446)
Total expenditures
74,819,420
39,463,398
25,178,334
14,285,064
Excess (deficiency) of revenues over expenditures
(16,979,420)
(4,061,571)
(11,435,529)
(7,373,958)
OTHER FINANCING SOURCES (USES):
Transfers Out
—
—
(74,281)
74,281
Total other financing sources (uses)
—
—
(74,281)
74,281
Net change in fund balance
(16,979,420)
(4,061,571)
(11,509,810)
(7,299,677)
Fund balance, July 1, 2021
16,255,723
16,255,723
16,255,723
—
Fund balance (deficit), June 30, 2022
$
(723,697) $
12,194,152
$
4,745,913
$
(7,299,677)
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, 2022
2022
2021
2020
2019
City's proportion of the net pension
liability (asset)
0.71 %
0.71 %
0.72 %
0.76 %
City's proportionate share of the net
pension liability (asset)
$ 93,397,278
$ 122,547,011
$ 104,541,379
$ 106,413,043
City's covered payroll
$ 79,544,042
$ 76,880,601
$ 75,407,689
$ 75,579,140
City's proportionate share of the net
pension liability (asset) as a
percentage of its covered payroll
117.42 %
159.40 %
138.63 %
140.80 %
Plan fiduciary net position as a
percentage of the total
pension liability
78.58 %
69.33 %
73.24 %
73.00 %
Note: This schedule is intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
92
2018
2017
2016
2015
0.74 %
0.75 %
0.73 %
0.71 %
$ 115,691,952
$ 121,549,835
$ 113,885,153
$ 105,661,552
$ 72,284,183
$ 70,362,938
$ 67,230,465
$ 64,263,236
160.05 %
172.75 %
169.40 %
164.42 %
69.92 %
67.06 %
68.35 %
69.49 %
93
City of Chandler
Schedule of Contributions -
All Pension Plans
June 30, 2022
2022
2021
2020
2019
Arizona State Retirement System:
Actuarially determined contribution
$ 9,580,356
$ 9,267,255
$ 8,844,068
$ 8,470,741
Contributions in relation to the
actuarially determined contribution
9,580,356
9,267,255
8,844,068
8,470,741
Contribution deficiency (excess)
$
—
$
—
$
—
$
—
City's covered payroll
$ 79,760,571
$ 79,544,042
$ 76,880,601
$ 75,407,689
Contributions as a percentage
of covered payroll
12.01 %
11.65 %
11.50 %
11.23 %
Public Safety Personnel Retirement
System - Police:
Actuarially determined contribution
$ 22,596,733
$ 19,026,392
$ 15,572,686
$ 12,267,559
Contributions in relation to the
actuarially determined contribution
1
28,025,675
22,619,456
28,715,343
15,398,196
Contribution deficiency (excess)
$ (5,428,942)
$ (3,593,064)
$ (13,142,657)
$ (3,130,637)
City's covered payroll
$ 27,383,139
$ 26,480,082
$ 28,589,014
$ 28,848,732
Contributions as a percentage
of covered payroll
102.35 %
85.42 %
100.44 %
53.38 %
Public Safety Personnel Retirement
System - Fire:
Actuarially determined contribution
$ 13,299,020
$ 10,427,865
$ 8,004,060
$ 7,021,133
Contributions in relation to the
actuarially determined contribution
1
14,991,742
13,054,192
15,566,324
8,670,333
Contribution deficiency (excess)
$ (1,692,722)
$ (2,626,327)
$ (7,562,264)
$ (1,649,200)
City's covered payroll
$ 18,946,241
$ 18,187,540
$ 19,154,805
$ 19,025,780
Contributions as a percentage
of covered payroll
79.13 %
71.78 %
81.27 %
45.57 %
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
2018
2017
2016
2015
$ 8,268,029
$ 7,793,041
$ 7,634,805
$ 7,323,872
8,268,029
7,793,041
7,634,805
7,323,872
$
—
$
—
$
—
$
—
$ 75,579,140
$ 72,284,183
$ 70,362,938
$ 67,230,465
10.94 %
10.78 %
10.85 %
10.89 %
$ 10,950,501
$ 8,470,411
$ 8,561,143
$ 6,083,333
14,300,501
10,145,411
8,561,143
6,083,333
$ (3,350,000)
$ (1,675,000)
$
—
$
—
$ 28,294,661
$ 27,058,086
$ 27,946,237
$ 26,187,641
50.54 %
37.49 %
30.63 %
23.23 %
$ 6,392,313
$ 4,616,587
$ 4,438,495
$ 3,193,139
8,042,313
5,441,587
4,438,495
3,193,139
$ (1,650,000)
$
(825,000)
$
—
$
—
$ 18,200,175
$ 17,275,940
$ 16,874,362
$ 15,671,133
44.19 %
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, 2022
2022
2021
2020
2019
Total pension liability
Service cost
$
5,440,836
$
5,696,125
$
6,149,336
$
5,737,868
Interest
22,385,115
20,504,731
19,203,025
17,999,842
Changes of benefit terms
—
—
—
—
Differences between expected and actual
experience
3,894,134
12,866,840
1,302,509
(671,252)
Changes of assumptions
—
—
6,562,499
—
Benefit payments, including refunds
(13,613,884)
(12,493,545)
(10,261,998)
(9,913,263)
Net change in total pension liability
18,106,201
26,574,151
22,955,371
13,153,195
Total pension liability - beginning
308,011,519
281,437,368
258,481,997
245,328,802
Total pension liability - ending
$ 326,117,720
$ 308,011,519
$ 281,437,368
$ 258,481,997
Plan fiduciary net position
Contributions - employer
$
22,596,733
$
28,799,919
$
15,572,686
$
10,296,409
Contributions - employee
2,424,870
2,909,915
2,206,379
2,765,932
Net investment income
53,483,321
2,344,516
8,365,394
9,301,979
Benefit payments, including refunds
(13,613,884)
(12,493,545)
(10,261,998)
(9,913,263)
Administrative expense
(250,715)
(191,143)
(146,042)
(142,274)
Other
2,439
(2,317)
(102,911)
24,215
Net change in plan fiduciary net position
64,642,764
21,367,345
15,633,508
12,332,998
Plan fiduciary net position - beginning
179,779,599
158,412,254
142,778,746
130,445,748
Plan fiduciary net position - ending
$ 244,422,363
$ 179,779,599
$ 158,412,254
$ 142,778,746
Net pension liability - ending
$
81,695,357
$ 128,231,920
$ 123,025,114
$ 115,703,251
Plan fiduciary net position as a percentage of
the total pension liability
74.95 %
58.37 %
56.29 %
55.24 %
Covered payroll
$
26,480,082
$
28,859,014
$
28,848,732
$
28,294,661
Net pension liability as a percentage of
covered payroll
308.52 %
444.34 %
426.45 %
408.92 %
Note: This schedule is intended to show information for ten years. Additional years' information will be
displayed as it becomes available.
96
2018
2017
2016
2015
$
6,092,332
$
5,337,103
$
4,583,770
$
4,602,603
17,064,596
14,964,498
13,839,509
11,841,118
1,501,042
17,456,919
—
1,741,535
(6,211,672)
858,761
4,879,849
567,380
6,528,203
8,537,784
—
13,082,165
(8,254,947)
(13,015,625)
(5,681,836)
(7,054,499)
16,719,554
34,139,440
17,621,292
24,780,302
228,609,248
194,469,808
176,848,516
152,068,214
$ 245,328,802
$ 228,609,248
$ 194,469,808
$ 176,848,516
$
10,247,877
$
8,728,082
$
6,155,142
$
5,465,059
3,244,412
3,633,359
3,308,265
2,675,724
14,017,325
677,501
3,873,466
12,329,319
(8,254,947)
(13,015,625)
(5,681,836)
(7,054,499)
(124,430)
(97,889)
(94,891)
—
(167,280)
238,667
(70,777)
(2,733,237)
18,962,957
164,095
7,489,369
10,682,366
111,482,791
111,318,696
103,829,327
93,146,961
$ 130,445,748
$ 111,482,791
$ 111,318,696
$ 103,829,327
$ 114,883,054
$ 117,126,457
$
83,151,112
$
73,019,189
53.17 %
48.77 %
57.24 %
58.71 %
$
27,058,086
$
27,946,237
$
26,187,641
$
24,290,497
424.58 %
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, 2022
2022
2021
2020
2019
Total pension liability
Service cost
$
3,923,796
$
4,025,473
$
4,353,346
$
4,014,526
Interest
13,243,975
12,453,112
11,689,082
10,794,299
Changes of benefit terms
—
—
—
—
Differences between expected and actual
experience
4,097,391
1,086,650
(171,678)
1,014,752
Changes of assumptions
—
—
3,122,509
—
Benefit payments, including refunds
(6,981,473)
(6,278,162)
(5,792,594)
(6,363,418)
Net change in total pension liability
14,283,689
11,287,073
13,200,665
9,460,159
Total pension liability - beginning
180,991,250
169,704,177
156,503,512
147,043,353
Total pension liability - ending
$ 195,274,939
$ 180,991,250
$ 169,704,177
$ 156,503,512
Plan fiduciary net position
Contributions - employer
$
13,299,020
$
15,654,338
$
8,004,060
$
5,956,704
Contributions - employee
1,778,804
1,432,043
1,462,348
1,633,743
Net investment income
34,335,848
1,488,011
5,389,738
6,174,093
Benefit payments, including refunds
(6,981,473)
(6,278,162)
(5,792,594)
(6,363,418)
Administrative expense
(160,215)
(121,320)
(94,355)
(94,669)
Other
4,795
5
(42,251)
1,035
Net change in plan fiduciary net position
42,276,779
12,174,915
8,926,946
7,307,488
Plan fiduciary net position - beginning
115,550,305
103,375,390
94,448,444
87,140,956
Plan fiduciary net position - ending
$ 157,827,084
$ 115,550,305
$ 103,375,390
$
94,448,444
Net pension liability - ending
$
37,447,855
$
65,440,945
$
66,328,787
$
62,055,068
Plan fiduciary net position as a percentage of
the total pension liability
80.82 %
63.84 %
60.92 %
60.35 %
Covered payroll
$
18,187,540
$
19,154,805
$
19,025,780
$
18,200,175
Net pension liability as a percentage of
covered payroll
205.90 %
341.64 %
348.63 %
340.96 %
Note: This schedule is intended to show information for ten years. Additional years' information will be displayed as it
becomes available.
98
2018
2017
2016
2015
$
3,863,571
$
3,174,665
$
2,915,603
$
2,949,507
9,983,423
8,707,808
8,264,915
7,191,487
753,382
10,272,193
—
930,663
941,823
96,063
(1,037,307)
(409,426)
2,845,297
4,937,927
—
6,465,545
(5,049,317)
(5,647,270)
(3,614,319)
(3,258,846)
13,338,179
21,541,386
6,528,892
13,868,930
133,705,174
112,163,788
105,634,896
91,765,966
$ 147,043,353
$ 133,705,174
$ 112,163,788
$ 105,634,896
$
5,514,825
$
4,672,177
$
3,222,291
$
3,152,694
2,312,753
2,140,037
1,837,291
1,775,319
9,228,731
440,223
2,568,880
8,217,832
(5,049,317)
(5,647,270)
(3,614,319)
(3,258,846)
(82,059)
(63,746)
(63,063)
—
50,502
38,948
(55,142)
(1,798,718)
11,975,435
1,580,369
3,895,938
8,088,281
75,165,521
73,585,152
69,689,214
61,600,933
$
87,140,956
$
75,165,521
$
73,585,152
69,689,214
$
59,902,397
$
58,539,653
$
38,578,636
$
35,945,682
59.26 %
56.22 %
65.61 %
65.97 %
$
17,275,940
$
16,874,362
$
15,671,133
$
15,691,213
346.74 %
346.91 %
246.18 %
229.08 %
99
City of Chandler
Schedule of Changes in OPEB Liabilities and Related Ratios -
Single Employer Plan
June 30, 2022
2022
2021
2020
2019
2018
Measurement date
6/30/2021
6/30/2020
6/30/2019
6/30/2018
6/30/2017
Total OPEB liability -
beginning of year
$ 63,003,983
$ 53,112,727
$ 51,751,856
$ 52,838,811
$ 66,519,700
Changes for the year
Service cost
3,414,033
2,940,955
2,585,397
3,020,484
3,962,284
Interest
1,440,322
1,921,296
2,059,914
1,939,376
1,967,447
Differences between
expected and actual
experience
(2,181,125)
—
(5,086,575)
(883,708)
(8,539,064)
Changes in
assumptions or other
inputs
18,748,388
7,368,121
4,021,143
(1,789,527)
(8,174,073)
Benefit payments
(2,503,806)
(2,339,116)
(2,219,008)
(3,373,580)
(2,897,483)
Net changes
18,917,812
9,891,256
1,360,871
(1,086,955)
(13,680,889)
Total OPEB liability - end of
year
$ 81,921,795
$ 63,003,983
$ 53,112,727
$ 51,751,856
$ 52,838,811
Total covered employee
payroll
$ 130,254,557
$ 116,931,839
$ 113,713,741
$ 108,862,317
$ 106,207,139
Total OPEB liability as
percentage of covered
employee payroll
62.89 %
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.
General Fund
Grants Special
Revenue Fund
Statement of Revenues, Expenditures and Changes in
Fund Balances- Net change in fund balance
$
39,409,456
$
(4,258,502)
Reserved encumbrances at June 30, 2022 recognized as
budgetary expenditures in fiscal year ended June 30, 2022
(7,122,477)
(7,251,308)
Budgetary Comparison Schedule- Net change in fund
balance
$
32,286,979
$
(11,509,810)
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, 2020 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, 2021 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, 2021 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, 2022
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, 2021 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, 2022
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
30,310,000
$
30,310,000
$
30,917,639
$
607,639
Interest revenue
169,500
169,500
(548,003)
(717,503)
Total revenues
30,479,500
30,479,500
30,369,636
(109,864)
EXPENDITURES:
General government
334,584
334,584
—
(334,584)
Principal
33,145,240
33,145,240
32,277,716
(867,524)
Bond issuance costs
—
—
228,393
228,393
Interest and fiscal charges
6,999,676
6,999,676
7,064,929
65,253
Total expenditures
40,479,500
40,479,500
39,571,038
(908,462)
Excess (deficiency) of revenues over
expenditures
(10,000,000)
(10,000,000)
(9,201,402)
798,598
OTHER FINANCING SOURCES (USES):
Transfers in
10,000,000
10,000,000
7,500,000
(2,500,000)
Total other financing sources (uses)
10,000,000
10,000,000
7,500,000
(2,500,000)
Net change in fund balance
—
—
(1,701,402)
(1,701,402)
Fund balance, July 1, 2021
5,758,393
5,758,393
5,758,393
—
Fund balance, June 30, 2022
$
5,758,393
$
5,758,393
$
4,056,991
$
(1,701,402)
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.
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.
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.
City of Chandler
Non-Major Governmental Funds
106
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 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, 2022
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Development
Property
Recreation
Museum
ASSETS
Equity in pooled cash and investments
$ 36,547,493
$
5,491,022
$
—
$
180,998
$ 308,828
$
48,083
Receivables (net of allowance
for uncollectible):
Accounts
—
—
—
—
—
—
Special assessments
—
—
—
—
—
—
Notes
—
—
318,929
—
—
—
Accrued interest
75,140
10,669
—
432
636
98
Other
—
—
—
—
—
—
Due from other governments
2,008,825
—
351,030
—
—
—
Total assets
$ 38,631,458
$
5,501,691
$
669,959
$
181,430
$ 309,464
$
48,181
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
137,133
$
1,604
$
48,602
$
—
$
—
$
—
Accrued payroll
136,025
—
30,415
—
—
—
Trust liabilities and deposits
—
—
—
250,824
—
—
Accrued interest
—
—
—
—
—
—
Due to other funds
—
—
68,298
—
—
—
Advances from other funds
—
—
—
—
—
—
Total liabilities
273,158
1,604
147,315
250,824
—
—
Deferred inflows of resources:
Unavailable revenues - special
assessments
—
—
—
—
—
—
Total deferred inflows of resources
—
—
—
—
—
—
Fund balances (deficits):
Restricted
38,358,300
5,500,087
522,644
—
309,464
48,181
Unassigned
—
—
—
(69,394)
—
—
Total fund balances (deficits)
38,358,300
5,500,087
522,644
(69,394)
309,464
48,181
Total liabilities, deferred inflows
and fund balances
$ 38,631,458
$
5,501,691
$
669,959
$
181,430
$ 309,464
$
48,181
(Continued)
109
City of Chandler
Combining Balance Sheet -
Non-Major Governmental Funds
June 30, 2022
Special Revenue
Debt Service
Capital Projects
Special
Assessment
General
Public
Library
Bonds
Government
Buildings
Grants
ASSETS
Equity in pooled cash and investments
$
76,385
$
—
$
782,025
$
33,589
$
—
Receivables (net of allowance
for uncollectible):
Accounts
—
—
5,710
—
—
Special assessments
—
576,578
—
—
—
Notes
—
—
—
—
—
Accrued interest
156
—
—
589
—
Other
—
—
116,466
—
—
Due from other governments
—
—
—
—
6,634,089
Total assets
$
76,541
$
576,578
$
904,201
$
34,178
$
6,634,089
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
980
$
—
$
1,465,808
$
—
$
1,072,211
Accrued payroll
—
—
—
—
3,523
Trust liabilities and deposits
—
—
—
—
—
Accrued interest
—
12,700
—
—
—
Due to other funds
—
7,217
—
—
4,720,581
Advances from other funds
—
—
—
1,764,427
—
Total liabilities
980
19,917
1,465,808
1,764,427
5,796,315
Deferred inflows of resources:
Unavailable revenues - special
assessments
—
553,878
—
—
—
Total deferred inflows of resources
—
553,878
—
—
—
Fund balances (deficits):
Restricted
75,561
2,783
—
—
837,774
Unassigned
—
—
(561,607)
(1,730,249)
—
Total fund balances (deficits)
75,561
2,783
(561,607)
(1,730,249)
837,774
Total liabilities, deferred inflows
and fund balances
$
76,541
$
576,578
$
904,201
$
34,178
$
6,634,089
110
Capital Projects
Public Safety
Vehicle and
Total Other
Community
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Streets
Services
Improvements
Replacement
Replacement
Arts
Funds
$
73,616,087
$
37,467,780
$
7,578,064
$
11,117,545
$
7,682,256
$
749,479
$
181,679,634
—
—
—
—
—
—
5,710
—
—
—
—
—
—
576,578
—
—
—
—
—
—
318,929
125,955
66,678
1,977
22,721
15,704
1,551
322,306
—
—
—
—
—
—
116,466
265,161
—
—
—
—
—
9,259,105
$
74,007,203
$
37,534,458
$
7,580,041
$
11,140,266
$
7,697,960
$
751,030
$
192,278,728
$
1,036,849
$
737,761
$
83,150
$
33,148
$
97,401
$
300
$
4,714,947
8,569
2,766
754
—
—
—
182,052
5
—
—
—
—
—
250,829
—
—
—
—
—
—
12,700
—
—
—
—
—
—
4,796,096
—
—
5,596,432
—
—
—
7,360,859
1,045,423
740,527
5,680,336
33,148
97,401
300
17,317,483
—
—
—
—
—
—
553,878
—
—
—
—
—
—
553,878
72,961,780
36,793,931
1,899,705
11,107,118
7,600,559
750,730
176,768,617
—
—
—
—
—
—
(2,361,250)
72,961,780
36,793,931
1,899,705
11,107,118
7,600,559
750,730
174,407,367
$
74,007,203
$
37,534,458
$
7,580,041
$
11,140,266
$
7,697,960
$
751,030
$
192,278,728
(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, 2022
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Development
Property
Recreation
Museum
REVENUES:
Highway user taxes
$ 19,460,326
$
—
$
—
$
—
$
—
$
—
Regional transportation taxes
—
—
—
—
—
—
Grants and entitlements
—
697,052
2,118,430
—
75,044
1,939
System development fees
—
—
—
—
—
—
Special assessments
—
—
—
—
—
—
Charges for services
—
188,675
—
—
—
—
Fines and forfeitures
—
—
—
73,886
—
—
Contributions
—
—
—
—
—
—
Interest revenue
(1,074,885)
(155,448)
(2)
(1)
(9,209)
(1,427)
Miscellaneous
58,814
84,854
—
—
—
—
Total revenues
18,444,255
815,133
2,118,428
73,885
65,835
512
EXPENDITURES:
Current:
General government
—
—
2,195,934
—
—
—
Public safety
—
—
—
58,247
—
—
Transportation and development
7,320,610
180,479
—
—
—
—
Community services
—
—
—
—
55,868
1,240
Capital outlay
6,501,564
292,829
—
49,727
—
—
Debt service:
Principal
—
—
—
—
—
—
Bond issuance costs
—
—
—
—
—
—
Interest and fiscal charges
—
—
—
—
—
—
Total expenditures
13,822,174
473,308
2,195,934
107,974
55,868
1,240
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
4,622,081
341,825
(77,506)
(34,089)
9,967
(728)
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
—
—
—
—
—
Bond premium
—
—
—
—
—
—
Face amount of bonds issued
—
—
—
—
—
—
Transfers in
—
—
—
—
—
—
Transfers out
(267,704)
(4,212)
—
—
—
—
Total other financing sources (uses)
(267,704)
(4,212)
—
—
—
—
NET CHANGE IN FUND BALANCE
4,354,377
337,613
(77,506)
(34,089)
9,967
(728)
FUND BALANCES (DEFICITS):
Beginning of year, as restated
34,003,923
5,162,474
600,150
(35,305)
299,497
48,909
End of year
$ 38,358,300
$
5,500,087
$
522,644
$
(69,394) $ 309,464
$
48,181
112
Special Revenue
Debt Service
Capital Projects
Special
Assessment
General
Public
Community
Library
Bonds
Government
Buildings
Grants
Streets
Services
$
—
$
—
$
—
$
—
$
—
$
—
$
—
—
—
—
—
—
2,210,634
—
52,453
—
—
—
17,976,454
—
—
—
—
—
196,850
—
2,701,703
1,502,613
—
610,719
—
—
—
—
—
—
—
—
—
13,735
—
—
—
—
—
—
—
—
—
—
—
254,874
—
—
—
—
(2,074)
—
—
(8,416)
(3)
(2,128,778)
(1,075,790)
—
—
441,740
—
—
—
—
50,379
610,719
696,614
188,434
17,990,186
2,783,559
426,823
—
—
1,594,070
514
81,281
1,550
4,087
—
—
49,428
—
—
—
—
—
—
625,188
—
655,413
1,331,968
—
36,847
—
336,928
—
13,735
—
305,050
30
—
12,088,156
—
16,722,897
14,609,284
6,158,554
—
610,000
—
—
—
—
—
—
—
—
—
—
112,889
24,084
—
37,600
—
—
—
—
—
36,877
647,600
14,693,770
514
17,473,326
16,055,691
6,491,775
13,502
(36,881)
(13,997,156)
187,920
516,860
(13,272,132)
(6,064,952)
—
—
109,479
—
—
—
—
—
—
—
—
—
1,412,281
300,489
—
—
—
—
—
20,453,040
4,351,758
—
—
13,696,106
—
159,281
—
—
—
—
—
—
—
(3,026,096)
(4,473,904)
—
—
13,805,585
—
159,281
18,839,225
178,343
13,502
(36,881)
(191,571)
187,920
676,141
5,567,093
(5,886,609)
62,059
39,664
(370,036)
(1,918,169)
161,633
67,394,687
42,680,540
$
75,561
$
2,783
$
(561,607) $
(1,730,249) $
837,774
$
72,961,780
$
36,793,931
(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, 2022
Capital Projects
Public Safety
Vehicle and
Total Other
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Improvements
Replacement
Replacement
Arts
Funds
REVENUES:
Highway user taxes
$
—
$
—
$
—
$
—
$
19,460,326
Regional transportation taxes
—
—
—
—
2,210,634
Grants and entitlements
—
—
—
—
20,921,372
System development fees
629,865
—
—
—
5,031,031
Special assessments
—
—
—
—
610,719
Charges for services
—
—
—
117,411
319,821
Fines and forfeitures
—
—
—
—
73,886
Contributions
—
—
—
—
254,874
Interest revenue
(154,348)
(289,459)
(207,211)
(21,960)
(5,129,011)
Miscellaneous
—
20,467
—
—
605,875
Total revenues
475,517
(268,992)
(207,211)
95,451
44,359,527
EXPENDITURES:
Current:
General government
3,100
—
945,349
—
4,825,885
Public safety
535,274
—
—
—
642,949
Transportation and development
—
—
—
—
10,113,658
Community services
—
—
—
54,746
804,414
Capital outlay
36,803
1,360,083
84,686
—
57,904,613
Debt service:
Principal
—
—
—
—
610,000
Bond issuance costs
35,918
—
—
—
172,891
Interest and fiscal charges
—
—
—
—
37,600
Total expenditures
611,095
1,360,083
1,030,035
54,746
75,112,010
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(135,578)
(1,629,075)
(1,237,246)
40,705
(30,752,483)
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
183,901
—
—
293,380
Bond premium
448,148
—
—
—
2,160,918
Face amount of bonds issued
6,490,202
—
—
—
31,295,000
Transfers in
—
3,040,290
3,853,946
—
20,749,623
Transfers out
—
—
—
—
(7,771,916)
Total other financing sources (uses)
6,938,350
3,224,191
3,853,946
—
46,727,005
NET CHANGE IN FUND BALANCE
6,802,772
1,595,116
2,616,700
40,705
15,974,522
FUND BALANCES (DEFICITS):
Beginning of year, as restated
(4,903,067)
9,512,002
4,983,859
710,025
158,432,845
End of year
$
1,899,705
$
11,107,118
$
7,600,559
$
750,730
$
174,407,367
(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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Highway user taxes
$
17,373,409
$
17,373,409
$
19,460,326
$
2,086,917
Interest revenue
415,000
415,000
(1,074,881)
(1,489,881)
Miscellaneous
—
—
58,814
58,814
Total revenues
17,788,409
17,788,409
18,444,259
655,850
EXPENDITURES:
General government
1,693,400
3,505,351
—
3,505,351
Transportation and development
16,018,368
9,202,036
8,500,607
701,429
Capital outlay
5,981,065
8,078,304
7,468,926
609,378
Total expenditures
23,692,833
20,785,691
15,969,533
4,816,158
Excess (deficiency) of revenues over expenditures
(5,904,424)
(2,997,282)
2,474,726
5,472,008
OTHER FINANCING SOURCES (USES):
Transfers out
(297,286)
(297,286)
(267,704)
29,582
Total other financing sources (uses)
(297,286)
(297,286)
(267,704)
29,582
Net change in fund balance
(6,201,710)
(3,294,568)
2,207,022
5,501,590
Fund balance, July 1, 2021
34,003,923
34,003,923
34,003,923
—
Fund balance, June 30, 2022
$
27,802,213
$
30,709,355
$
36,210,945
$
5,501,590
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
673,600
$
673,600
$
697,052
$
23,452
Charges for services
153,600
153,600
188,675
35,075
Interest revenue
60,000
60,000
(155,448)
(215,448)
Miscellaneous
—
—
84,854
84,854
Total revenues
887,200
887,200
815,133
(72,067)
EXPENDITURES:
General government
54,200
36,744
—
36,744
Transportation and development
2,012,719
1,217,331
328,460
888,871
Capital outlay
172,000
954,879
533,933
420,946
Total expenditures
2,238,919
2,208,954
862,393
1,346,561
Excess (deficiency) of revenues over expenditures
(1,351,719)
(1,321,754)
(47,260)
1,274,494
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
(1,356,128)
(1,326,163)
(51,472)
1,274,691
Fund balance, July 1, 2021
5,162,474
5,162,474
5,162,474
—
Fund balance, June 30, 2022
$
3,806,346
$
3,836,311
$
5,111,002
$
1,274,691
116
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
2,975,950
$
2,975,950
$
2,118,430
$
(857,520)
Interest Revenue
29,000
29,000
—
(29,000)
Total revenues
3,004,950
3,004,950
2,118,430
(886,520)
EXPENDITURES:
General government
3,253,325
6,575,399
2,858,764
3,716,635
Capital outlay
—
—
163,617
(163,617)
Total expenditures
3,253,325
6,575,399
3,022,381
3,553,018
Net change in fund balance
(248,375)
(3,570,449)
(903,951)
2,666,498
Fund balance, July 1, 2021
600,150
600,150
600,150
—
Fund balance (deficit), June 30, 2022
$
351,775
$
(2,970,299) $
(303,801) $
2,666,498
117
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Fines and forfeitures
$
750,000
$
750,000
$
73,886
$
(676,114)
Total revenues
750,000
750,000
73,886
(676,114)
EXPENDITURES:
General government
22,000
—
—
—
Public safety
645,000
645,000
95,196
549,804
Capital outlay
105,000
105,000
49,727
55,273
Total expenditures
772,000
750,000
144,923
605,077
Net change in fund balance
(22,000)
—
(71,037)
(71,037)
Fund balance (deficit), July 1, 2021
(35,305)
(35,305)
(35,305)
—
Fund balance (deficit), June 30, 2022
$
(57,305) $
(35,305) $
(106,342) $
(71,037)
118
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
85,900
$
85,900
$
75,044
$
(10,856)
Interest revenue
4,000
4,000
(9,209)
(13,209)
Total revenues
89,900
89,900
65,835
(24,065)
EXPENDITURES:
Community services
151,036
151,036
55,868
95,168
Total expenditures
151,036
151,036
55,868
95,168
Net change in fund balance
(61,136)
(61,136)
9,967
71,103
Fund balance, July 1, 2021
299,497
299,497
299,497
—
Fund balance, June 30, 2022
$
238,361
$
238,361
$
309,464
$
71,103
119
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Museum Special Revenue
For the year ended June 30, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
—
$
—
$
1,939
$
1,939
Interest revenue
1,000
1,000
(1,428)
(2,428)
Total revenues
1,000
1,000
511
(489)
EXPENDITURES:
General government
4,000
4,000
—
4,000
Community services
24,710
24,710
8,659
16,051
Total expenditures
28,710
28,710
8,659
20,051
Net change in fund balance
(27,710)
(27,710)
(8,148)
19,562
Fund balance, July 1, 2021
48,909
48,909
48,909
—
Fund balance, June 30, 2022
$
21,199
$
21,199
$
40,761
$
19,562
120
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Library Special Revenue
For the year ended June 30, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
80,000
$
80,000
$
52,453
$
(27,547)
Interest revenue
1,000
1,000
(2,073)
(3,073)
Total revenues
81,000
81,000
50,380
(30,620)
EXPENDITURES:
General government
8,000
8,000
—
8,000
Community services
80,000
80,000
36,847
43,153
Capital outlay
—
—
30
(30)
Total expenditures
88,000
88,000
36,877
51,123
Net change in fund balance
(7,000)
(7,000)
13,503
20,503
Fund balance, July 1, 2021
62,059
62,059
62,059
—
Fund balance, June 30, 2022
$
55,059
$
55,059
$
75,562
$
20,503
121
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Special Assessment Bonds
For the year ended June 30, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Special assessments
$
—
$
—
$
610,719
$
610,719
Total revenues
—
—
610,719
610,719
EXPENDITURES:
Principal
—
—
610,000
(610,000)
Interest and fiscal charges
—
—
37,600
(37,600)
Total expenditures
—
—
647,600
(647,600)
Net change in fund balance
—
—
(36,881)
(36,881)
Fund balance, July 1, 2021
39,664
39,664
39,664
—
Fund balance, June 30, 2022
$
39,664
$
39,664
$
2,783
$
(36,881)
122
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Miscellaneous
$
—
$
—
$
441,740
$
441,740
Total revenues
—
—
441,740
441,740
EXPENDITURES:
General government
19,095,249
10,622,705
2,064,477
8,558,228
Public safety
5,578,513
1,448,627
91,537
1,357,090
Transportation and development
12,794,049
3,084,562
668,144
2,416,418
Community services
6,290,985
2,021,840
1,408,382
613,458
Capital outlay
11,243,819
48,482,461
22,186,982
26,295,479
Total expenditures
55,002,615
65,660,195
26,419,522
39,240,673
Excess (deficiency) of revenues over expenditures
(55,002,615)
(65,660,195)
(25,977,782)
39,682,413
OTHER FINANCING SOURCES (USES):
Capital contributions
—
—
254,874
254,874
Proceeds from sale of capital assets
—
—
109,479
109,479
Transfers in
55,002,615
55,002,615
13,696,106
(41,306,509)
Total other financing sources (uses)
55,002,615
55,002,615
14,060,459
(40,942,156)
Net change in fund balance
—
(10,657,580)
(11,917,323)
(1,259,743)
Fund balance, July 1, 2021
(370,036)
(370,036)
(370,036)
—
Fund balance (deficit), June 30, 2022
$
(370,036) $ (11,027,616) $ (12,287,359) $
(1,259,743)
123
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
184,300
$
184,300
$
196,850
$
12,550
Interest revenue
3,400
3,400
(8,417)
(11,817)
Total revenues
187,700
187,700
188,433
733
EXPENDITURES:
General government
17,000
17,000
13,700
3,300
Total expenditures
17,000
17,000
13,700
3,300
Excess (deficiency) of revenues over expenditures
170,700
170,700
174,733
4,033
OTHER FINANCING SOURCES (USES):
Transfers out
(250,000)
(250,000)
—
250,000
Total other financing sources (uses)
(250,000)
(250,000)
—
250,000
Net change in fund balance
(79,300)
(79,300)
174,733
254,033
Fund balance (deficit), July 1, 2021
(1,918,169)
(1,918,169)
(1,918,169)
—
Fund balance (deficit), June 30, 2022
$
(1,997,469) $
(1,997,469) $
(1,743,436) $
254,033
124
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Grants Capital Projects
For the year ended June 30, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$ 14,700,224
$ 14,700,224
$ 17,976,454
$
3,276,230
Charges for services
—
—
13,735
13,735
Total revenues
14,700,224
14,700,224
17,990,189
3,289,965
EXPENDITURES:
General government
2,879,122
1,838,965
81,281
1,757,684
Transportation and development
27,788,694
8,344,816
1,970,495
7,672,178
Community services
2,001,041
27,983
13,735
14,248
Capital outlay
11,977,382
56,692,567
32,790,496
23,902,071
Total expenditures
44,646,239
66,904,331
34,856,007
33,346,181
Excess (deficiency) of revenues over expenditures
(29,946,015)
(52,204,107)
(16,865,818)
36,636,146
OTHER FINANCING SOURCES (USES):
Transfers in
—
—
159,281
159,281
Transfers out
—
(120,000)
—
120,000
Total other financing sources (uses)
—
(120,000)
159,281
279,281
Net change in fund balance
(29,946,015)
(52,324,107)
(16,706,537)
36,915,427
Fund balance, July 1, 2021
161,633
161,633
161,633
—
Fund balance (deficit), June 30, 2022
$ (29,784,382) $ (52,162,474) $ (16,544,904) $ 36,915,427
125
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Streets Capital Projects
For the year ended June 30, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Regional transportation taxes
$
200,000
$
200,000
$
2,210,634
$
2,010,634
System development fees
4,440,700
4,440,700
2,701,703
(1,738,997)
Interest revenue
932,000
932,000
(2,128,790)
(3,060,790)
Total revenues
5,572,700
5,572,700
2,783,547
(2,789,153)
EXPENDITURES:
General government
47,799
2,539,625
15,300
2,524,325
Transportation and development
44,964,305
3,836,889
1,537,979
2,298,910
Capital outlay
10,978,702
49,614,292
42,830,190
6,784,102
Bond issuance costs
—
—
112,889
(112,889)
Total expenditures
55,990,806
55,990,806
44,496,358
11,494,448
Excess (deficiency) of revenues over expenditures
(50,418,106)
(50,418,106)
(41,712,811)
8,705,295
OTHER FINANCING SOURCES (USES):
Bond premium
—
—
1,412,281
1,412,281
Face amount of bonds issued
23,480,000
23,480,000
20,453,040
(3,026,960)
Transfers in
200,000
200,000
—
(200,000)
Transfers out
(8,450,000)
(4,218,415)
(3,026,096)
1,192,319
Total other financing sources (uses)
15,230,000
19,461,585
18,839,225
(622,360)
Net change in fund balance
(35,188,106)
(30,956,521)
(22,873,586)
8,082,935
Fund balance, July 1, 2021
67,394,687
67,394,687
67,394,687
—
Fund balance, June 30, 2022
$ 32,206,581
$ 36,438,166
$ 44,521,101
$
8,082,935
126
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
2,177,200
$
2,177,200
$
1,502,613
$
(674,587)
Interest revenue
595,000
595,000
(1,075,792)
(1,670,792)
Total revenues
2,772,200
2,772,200
426,821
(2,345,379)
EXPENDITURES:
General government
36,600
1,616,452
29,000
1,587,452
Community services
13,837,656
2,074,678
982,955
1,091,723
Capital outlay
3,862,376
14,039,738
9,650,734
4,389,004
Bond issuance costs
—
—
24,084
(24,084)
Total expenditures
17,736,632
17,730,868
10,686,773
7,044,095
Excess (deficiency) of revenues over expenditures
(14,964,432)
(14,958,668)
(10,259,952)
4,698,716
OTHER FINANCING SOURCES (USES):
Bond premium
—
—
300,489
300,489
Face amount of bonds issued
4,700,000
4,700,000
4,351,758
(348,242)
Transfers out
(1,750,000)
(5,981,585)
(4,473,904)
1,507,681
Total other financing sources (uses)
2,950,000
(1,281,585)
178,343
1,459,928
Net change in fund balance
(12,014,432)
(16,240,253)
(10,081,609)
6,158,644
Fund balance, July 1, 2021
42,680,540
42,680,540
42,680,540
—
Fund balance, June 30, 2022
$ 30,666,108
$ 26,440,287
$ 32,598,931
$
6,158,644
127
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
608,000
$
608,000
$
629,865
$
21,865
Interest revenue
20,000
20,000
(154,346)
(174,346)
Total revenues
628,000
628,000
475,519
(152,481)
EXPENDITURES:
General government
247,600
265,640
30,600
235,040
Public safety
1,772,835
1,750,714
1,019,657
731,057
Capital outlay
5,993,000
5,997,081
82,490
5,914,591
Bond issuance costs
—
—
35,918
(35,918)
Total expenditures
8,013,435
8,013,435
1,168,665
6,844,770
Excess (deficiency) of revenues over expenditures
(7,385,435)
(7,385,435)
(693,146)
6,692,289
OTHER FINANCING SOURCES (USES):
Bond premium
—
—
448,148
448,148
Face amount of bonds issued
6,980,000
6,980,000
6,490,202
(489,798)
Transfers out
(700,000)
(700,000)
—
700,000
Total other financing sources (uses)
6,280,000
6,280,000
6,938,350
658,350
Net change in fund balance
(1,105,435)
(1,105,435)
6,245,204
7,350,639
Fund balance (deficit), July 1, 2021
(4,903,067)
(4,903,067)
(4,903,067)
—
Fund balance (deficit), June 30, 2022
$
(6,008,502) $
(6,008,502) $
1,342,137
$
7,350,639
128
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
171,000
$
171,000
$
(289,460) $
(460,460)
Miscellaneous
—
—
20,467
20,467
Total revenues
171,000
171,000
(268,993)
(439,993)
EXPENDITURES:
General government
1,102,977
622,296
—
622,296
Capital outlay
2,705,683
3,364,587
2,777,772
586,815
Total expenditures
3,808,660
3,986,883
2,777,772
1,209,111
Excess (deficiency) of revenues over expenditures
(3,637,660)
(3,815,883)
(3,046,765)
769,118
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
300,000
300,000
183,901
(116,099)
Transfers in
3,040,289
3,040,289
3,040,290
1
Total other financing sources (uses)
3,340,289
3,340,289
3,224,191
(116,098)
Net change in fund balance
(297,371)
(475,594)
177,426
653,020
Fund balance, July 1, 2021
9,512,002
9,512,002
9,512,002
—
Fund balance, June 30, 2022
$
9,214,631
$
9,036,408
$
9,689,428
$
653,020
129
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
103,000
$
103,000
$
(207,211) $
(310,211)
Total revenues
103,000
103,000
(207,211)
(310,211)
EXPENDITURES:
General government
2,716,495
2,029,153
995,033
1,034,120
Capital outlay
1,253,240
1,911,769
1,876,282
35,487
Total expenditures
3,969,735
3,940,922
2,871,315
1,069,607
Excess (deficiency) of revenues over expenditures
(3,866,735)
(3,837,922)
(3,078,526)
759,396
OTHER FINANCING SOURCES (USES):
Transfers in
3,837,922
3,837,922
3,853,946
16,024
Total other financing sources (uses)
3,837,922
3,837,922
3,853,946
16,024
Net change in fund balance
(28,813)
—
775,420
775,420
Fund balance, July 1, 2021
4,983,859
4,983,859
4,983,859
—
Fund balance, June 30, 2022
$
4,955,046
$
4,983,859
$
5,759,279
$
775,420
130
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, 2022
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Charges for services
$
115,400
$
115,400
$
117,411
$
2,011
Interest revenue
9,400
9,400
(21,960)
(31,360)
Total revenues
124,800
124,800
95,451
(29,349)
EXPENDITURES:
General government
51,000
—
—
—
Community services
650,000
650,000
59,746
590,254
Total expenditures
701,000
650,000
59,746
590,254
Net change in fund balance
(576,200)
(525,200)
35,705
560,905
Fund balance, July 1, 2021
710,025
710,025
710,025
—
Fund balance, June 30, 2022
$
133,825
$
184,825
$
745,730
$
560,905
131
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, 2022
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
ASSETS
Current assets:
Equity in pooled cash and investments
$ 23,114,467 $
276,773
$ 8,549,326
$ 31,940,566
Accounts receivable
2,289,693
119
36,190
2,326,002
Due from other governments
—
—
104,862
104,862
Inventories
—
17,363
—
17,363
Accrued interest receivable
45,790
—
17,534
63,324
Other receivables
33
—
—
33
Total current assets
25,449,983
294,255
8,707,912
34,452,150
Long-term assets:
Notes receivable
—
—
154,750
154,750
Leases receivable
—
4,083,983
—
4,083,983
Capital assets:
Non-depreciable
6,844,102
20,611,880
1,751,537
29,207,519
Depreciable, net
6,439,919
11,730,503
6,794,639
24,965,061
Total capital assets
13,284,021
32,342,383
8,546,176
54,172,580
Total long-term assets
13,284,021
36,426,366
8,700,926
58,411,313
Total assets
38,734,004
36,720,621
17,408,838
92,863,463
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
576,589
330,901
725,096
1,632,586
134
LIABILITIES
Current liabilities:
Accounts payable
2,101,357
220,580
15,750
2,337,687
Accrued payroll
64,505
25,158
63,258
152,921
Trust liabilities and deposits
—
62,955
770,487
833,442
Customer advances
113,059
29,376
119,012
261,447
Compensated absences payable
16,013
7,732
15,867
39,612
Landfill closure and postclosure liability
94,446
—
—
94,446
Total current liabilities
2,389,380
345,801
984,374
3,719,555
Long-term liabilities:
Compensated absences payable
68,992
33,313
68,355
170,660
Net pension liability
766,909
983,022
1,776,383
3,526,314
OPEB liability
698,404
240,813
770,519
1,709,736
Landfill closure and postclosure liability
4,245,554
—
—
4,245,554
Total long-term liabilities
5,779,859
1,257,148
2,615,257
9,652,264
Total liabilities
8,169,239
1,602,949
3,599,631
13,371,819
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
591,829
318,899
854,238
1,764,966
Deferred inflows of leases
—
4,042,618
—
4,042,618
Total deferred inflows of resources
591,829
4,361,517
854,238
5,807,584
NET POSITION
Net investment in capital assets
13,284,021
32,342,383
8,546,176
54,172,580
Unrestricted
17,265,504
(1,255,327)
5,133,889
21,144,066
Total net position
$ 30,549,525 $ 31,087,056 $ 13,680,065 $ 75,316,646
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, 2022
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
OPERATING REVENUES:
Service fees
$ 17,629,367
$
800,482
$
175
$ 18,430,024
Grants and entitlements
—
—
8,598,756
8,598,756
Rentals
—
13,200
1,415,619
1,428,819
Sales taxes
—
21,379
—
21,379
Miscellaneous
520
5,880
42,564
48,964
Total operating revenues
17,629,887
840,941
10,057,114
28,527,942
OPERATING EXPENSES:
General and administrative
1,027,221
102,341
—
1,129,562
Personnel services
1,789,679
554,368
1,822,087
4,166,134
Contractual services
12,426,796
95,169
902,172
13,424,137
Commodities
869,095
190,735
810,100
1,869,930
Housing assistance payments
—
—
5,803,477
5,803,477
Depreciation and amortization expense
615,023
1,014,173
617,295
2,246,491
Total operating expenses
16,727,814
1,956,786
9,955,131
28,639,731
OPERATING INCOME (LOSS)
902,073
(1,115,845)
101,983
(111,789)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
(665,372)
99,731
(241,089)
(806,730)
Total nonoperating revenues (expenses)
(665,372)
99,731
(241,089)
(806,730)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS
236,701
(1,016,114)
(139,106)
(918,519)
CAPITAL CONTRIBUTION AND TRANSFERS:
Capital contributions
—
784,839
—
784,839
Transfers in
—
841,340
285,000
1,126,340
Transfers out
(113,831)
(31,996)
—
(145,827)
Total capital contributions and transfers
(113,831)
1,594,183
285,000
1,765,352
CHANGE IN NET POSITION
122,870
578,069
145,894
846,833
NET POSITION
Beginning of year
30,426,655
30,508,987
13,534,171
74,469,813
End of year
$ 30,549,525
$ 31,087,056
$ 13,680,065
$ 75,316,646
137
City of Chandler
Combining Statement of Cash Flows -
Non-Major Proprietary Funds
For the year ended June 30, 2022
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
17,738,008
$
808,006
$
1,519,789
$
20,065,803
Cash received from grantors
—
33,600
8,543,350
8,576,950
Cash payments to suppliers
(13,478,539)
(201,633)
(7,549,943)
(21,230,115)
Cash payments to employees for services
(1,833,706)
(567,830)
(1,871,748)
(4,273,284)
Net cash provided (used) by operating activities
2,425,763
72,143
641,448
3,139,354
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
—
841,340
285,000
1,126,340
Transfers out
(113,831)
(31,996)
—
(145,827)
Net cash provided (used) by noncapital financing activities
(113,831)
809,344
285,000
980,513
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(221,443)
(734,189)
(376,779)
(1,332,411)
Net cash provided (used) by capital and related financing activities
(221,443)
(734,189)
(376,779)
(1,332,411)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
(669,073)
99,731
(242,744)
(812,086)
Net cash provided (used) by investing activities
(669,073)
99,731
(242,744)
(812,086)
Net increase (decrease) in cash and cash equivalents
1,421,416
247,029
306,925
1,975,370
CASH AND CASH EQUIVALENTS:
Beginning of year
21,693,051
29,744
8,242,401
29,965,196
End of year
$
23,114,467
$
276,773
$
8,549,326
$
31,940,566
138
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
902,073
$
(1,115,845) $
101,983
$
(111,789)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
615,023
1,014,173
617,295
2,246,491
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
76,083
(4,083,714)
(50,274)
(4,057,905)
(Increase) decrease in due from other governments
—
33,600
—
33,600
(Increase) decrease in inventories
—
19,245
—
19,245
(Increase) decrease in other assets
—
—
(168,375)
(168,375)
Increase (decrease) in payables
844,573
167,367
(34,194)
977,746
Increase (decrease) in accrued payroll and compensated absences
(2,781)
12,268
(9,211)
276
Increase (decrease) in deposits
—
5,425
152,384
157,809
Increase (decrease) in customer advances
32,038
2,736
(96,085)
(61,311)
Increase (decrease) in net pension items
(223,624)
(84,980)
(59,431)
(368,035)
Increase (decrease) in OPEB liability
182,378
59,250
187,356
428,984
Increase (decrease) in lease deferred inflows
4,042,618
4,042,618
Total adjustments
1,523,690
1,187,988
539,465
3,251,143
Net cash provided (used) by operating activities
$
2,425,763
$
72,143
$
641,448
$
3,139,354
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets from city government
$
—
$
784,839
$
—
$
784,839
139
140
Statistical Section
“Moving Forward Together”
Decades of award-winning budget, financial
management, and procurement practices
are indications of our fiscal stability and
strength.
3 - Statistical Section
•
Financial Trends
•
Revenue Capacity
•
Debt Capacity
•
Demographic and Economic
Information
•
Operating Information
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
2013
2014
2015
2016
Governmental activities
Net investment in capital assets
$
558,279,485
$
563,033,503
$
567,041,560
$
579,591,241
Restricted
112,307,412
105,723,768
108,965,994
121,767,847
Unrestricted
179,518,042
183,088,676
7,709,550
(5,872,464)
Total governmental activities net
position
850,104,939
851,845,947
683,717,104
695,486,624
Business-type activities
Net investment in capital assets
355,015,004
388,837,444
380,427,606
342,252,306
Restricted
—
—
119,075
31,365,801
Unrestricted
176,961,822
206,284,498
217,824,645
258,806,679
Total business-type activities net
position
531,976,826
595,121,942
598,371,326
632,424,786
Primary government
Net investment in capital assets
913,294,489
951,870,947
947,469,166
921,843,547
Restricted
112,307,412
105,723,768
109,085,069
153,133,648
Unrestricted
356,479,864
389,373,174
225,534,195
252,934,215
Total primary government net
position
$ 1,382,081,765
$ 1,446,967,889
$ 1,282,088,430
$ 1,327,911,410
142
Schedule 1
Fiscal Year
2017
2018
2019
2020
2021
2022
$
587,213,640
$
536,086,249
$
575,953,033
$
547,511,826
$
555,107,220
$
536,775,941
122,006,140
168,510,855
173,490,725
191,839,529
189,214,016
194,380,531
(36,358,845)
(65,575,548)
(72,592,489)
(8,655,932)
(6,761,531)
63,657,816
672,860,935
639,021,556
676,851,269
730,695,423
737,559,705
794,814,288
439,823,546
467,799,036
481,911,949
477,329,239
458,616,595
473,953,519
32,977,926
33,447,434
31,523,149
33,750,526
32,154,205
31,745,566
176,390,803
243,735,547
249,131,813
267,005,635
299,755,652
283,463,157
649,192,275
744,982,017
762,566,911
778,085,400
790,526,452
789,162,242
1,027,037,186
1,003,885,285
1,057,864,982
1,024,841,065
1,013,723,815
1,010,729,460
155,184,734
201,958,289
205,013,874
225,590,055
221,368,221
226,126,097
139,831,290
178,159,999
176,539,324
258,349,703
292,994,121
347,120,973
$ 1,322,053,210
$ 1,384,003,573
$ 1,439,418,180
$ 1,508,780,823
$ 1,528,086,157
$ 1,583,976,530
143
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
Expenses
Governmental activities:
General government
$
90,143,339
$
99,231,501
$
104,456,315
$
112,514,903
Public safety
95,974,126
94,738,371
102,050,425
111,568,323
Transportation and development
55,846,316
52,183,052
51,714,085
55,012,081
Community services
30,979,208
32,331,286
31,784,321
31,441,019
Interest and fiscal charges
11,777,701
10,044,363
6,986,490
7,884,146
Total governmental activities
expenses
284,720,690
288,528,573
296,991,636
318,420,472
Business-type activities:
Water
55,440,712
55,877,774
55,470,724
54,075,742
Wastewater
40,401,849
41,969,764
50,823,497
51,034,921
Solid waste
13,974,858
14,131,202
14,087,780
13,925,017
Airport
1,960,788
1,980,706
1,860,057
2,011,880
Chandler housing authority
7,473,891
7,616,301
7,433,284
7,267,806
Total business-type activities
expenses
119,252,098
121,575,747
129,675,342
128,315,366
Total primary government expenses
$
403,972,788
$
410,104,320
$
426,666,978
$
446,735,838
144
Schedule 2a
Fiscal Year
2017
2018
2019
2020
2021
2022
$
104,998,802
$
113,587,478
$
114,373,302
$
138,850,297
$
162,849,542
$
157,127,919
149,366,614
112,371,723
124,906,187
109,544,169
122,146,366
104,673,550
56,752,197
55,287,494
53,806,473
59,777,330
58,847,053
56,403,523
32,599,549
36,824,102
36,990,853
38,195,563
39,565,719
41,563,661
6,623,830
6,716,119
7,046,655
6,885,184
6,653,197
6,014,168
350,340,992
324,786,916
337,123,470
353,252,543
390,061,877
365,782,821
63,236,746
61,513,990
58,297,769
60,330,758
62,049,102
61,264,619
58,112,931
60,605,779
61,218,775
66,788,084
62,753,454
63,037,577
14,380,178
14,531,558
15,221,985
16,522,728
17,040,309
16,727,814
1,893,830
1,841,718
2,038,417
2,382,288
2,186,724
1,956,786
7,728,876
8,109,635
8,478,235
8,710,570
9,207,531
9,955,131
145,352,561
146,602,680
145,255,181
154,734,428
153,237,120
152,941,927
$
495,693,553
$
471,389,596
$
482,378,651
$
507,986,971
$
543,298,997
$
518,724,748
145
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
Program Revenues
Governmental activities:
Charges for services:
General government
$ 35,898,378
$ 38,832,217
$ 39,207,061 $ 42,021,638
Public safety
7,375,050
5,861,044
6,469,215
7,471,344
Transportation and development
10,150,102
16,145,692
14,438,138
16,538,175
Community services
8,240,732
7,744,507
7,551,166
10,792,114
Operating grants and contributions
3,999,536
4,744,636
3,514,714
5,188,787
Capital grants and contributions
9,116,635
10,170,236
13,133,637
16,725,462
Total governmental activities program
revenues
74,780,433
83,498,332
84,313,931
98,737,520
Business-type activities:
Charges for services:
Water
48,258,282
49,588,376
48,045,103
50,483,097
Wastewater
37,690,400
40,509,289
45,666,777
51,321,346
Solid waste
13,836,363
14,034,894
14,140,246
14,940,591
Airport
976,102
961,067
1,010,288
946,419
Chandler housing authority
637,329
806,540
877,380
946,408
Operating grants and contributions
5,785,335
5,457,991
5,862,477
5,784,021
Capital grants and contributions
81,572,568
72,176,582
35,357,741
32,690,364
Total business-type activities program
revenues
188,756,379
183,534,739
150,960,012 157,112,246
Total primary government program
revenues
$ 263,536,812
$ 267,033,071
$ 235,273,943 $ 255,849,766
Net (expense)/revenue
Governmental activities
$ (209,940,257) $ (205,030,041) $ (212,677,705) $ (219,682,952)
Business-type activities
69,504,281
61,958,992
21,284,670
28,796,880
Total primary government net (expense)
$ (140,435,976) $ (143,071,049) $ (191,393,035) $ (190,886,072)
146
Schedule 2b
Fiscal Year
2017
2018
2019
2020
2021
2022
$
41,400,079
$
43,089,930
$
43,622,807
$
43,203,865
$
42,011,670
$
42,734,281
6,561,052
6,100,584
4,998,779
6,512,002
5,073,984
5,714,382
16,333,273
17,145,894
14,869,670
16,420,652
14,266,302
13,044,002
10,732,351
9,180,276
7,583,513
5,623,796
5,437,401
6,033,727
4,481,750
3,988,629
4,522,345
31,052,185
18,694,567
17,863,747
9,702,683
9,340,818
10,510,464
18,714,457
16,573,341
18,678,027
89,211,188
88,846,131
86,107,578
121,526,957
102,057,265
104,068,166
53,251,020
54,031,592
52,459,720
54,722,296
58,755,999
54,911,138
53,563,934
56,367,650
56,055,131
61,531,949
61,971,940
61,109,393
15,648,992
16,307,409
16,107,922
16,757,829
17,480,050
17,629,367
950,294
963,827
906,557
880,194
893,268
813,683
954,070
1,085,013
1,155,430
1,188,570
1,262,966
1,415,794
6,198,797
6,350,858
7,224,669
7,137,950
7,965,078
8,598,756
27,645,932
22,360,158
18,335,155
14,190,016
14,355,873
12,887,544
158,213,039
157,466,507
152,244,584
156,408,804
162,685,174
157,365,675
$
247,424,227
$
246,312,638
$
238,352,162
$
277,935,761
$
264,742,439
$
261,433,841
$ (261,129,804) $ (235,940,785) $ (251,015,892) $ (231,725,586) $ (288,004,612) $ (261,714,655)
12,860,478
10,863,827
6,989,403
1,674,376
9,448,054
4,423,748
$ (248,269,326) $ (225,076,958) $ (244,026,489) $ (230,051,210) $ (278,556,558) $ (257,290,907)
147
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
Governmental Revenues and
Other Changes in Net Position
Governmental activities:
Property taxes
$
29,656,415
$
28,348,952
$
28,708,033
$
29,214,103
Sales taxes
102,200,517
103,880,801
108,657,130
112,250,883
Highway user taxes
12,929,504
13,352,622
14,633,470
15,303,635
Other taxes
6,295,212
3,243,937
10,106,891
6,100,475
Franchise fees
2,936,533
3,145,449
3,300,129
3,344,817
State shared
51,347,206
55,423,759
59,236,588
60,712,442
Investment income
2,843,417
1,869,128
1,763,585
3,834,840
Miscellaneous
2,181,627
819,766
1,197,215
1,124,559
Transfers in (out)
(102,875)
(132,082)
(123,350)
(433,282)
Total governmental activities
210,287,556
209,952,332
227,479,691
231,452,472
Business-type activities:
Sales taxes
—
70,065
10,865
10,391
Investment income
1,180,290
788,025
819,556
2,180,447
Miscellaneous
1,409,437
1,683,332
2,475,760
2,632,460
Transfers in (out)
102,875
132,082
123,350
433,282
Total business-type activities:
2,692,602
2,673,504
3,429,531
5,256,580
Total primary government
$
212,980,158
$
212,625,836
$
230,909,222
$
236,709,052
Change in Net Position
Governmental activities
$
347,299
$
4,922,291
$
14,801,986
$
11,769,520
Business-type activities
72,196,883
64,632,496
24,714,201
34,053,460
Total primary government
$
72,544,182
$
69,554,787
$
39,516,187
$
45,822,980
148
Schedule 2c
Fiscal Year
2017
2018
2019
2020
2021
2022
$
29,837,763
$
30,816,495
$
32,550,250
$
34,419,182
$
36,371,978
$
39,560,904
120,189,651
127,584,410
139,851,355
140,644,918
157,513,686
182,028,630
16,683,743
16,135,949
17,301,902
16,996,911
18,108,310
19,460,326
664,616
940,203
866,267
1,153,237
2,226,568
2,210,634
3,285,267
3,571,744
3,567,184
3,441,225
3,823,524
3,861,042
65,924,228
64,723,211
67,156,430
70,769,943
80,699,253
87,038,075
1,063,997
1,531,766
14,822,135
16,951,295
584,026
(15,954,424)
1,014,665
1,502,418
1,261,279
2,085,020
1,820,520
1,916,550
(159,815)
(4,175,579)
(90,680)
(891,991)
105,991
(1,103,279)
238,504,115
242,630,617
277,286,122
285,569,740
301,253,856
319,018,458
10,682
13,769
17,347
15,521
16,516
21,379
938,491
854,848
7,742,589
9,974,135
249,448
(7,617,417)
2,798,023
14,923,212
2,842,825
2,962,466
2,833,025
2,811,515
159,815
4,175,579
90,680
891,991
(105,991)
1,103,279
3,907,011
19,967,408
10,693,441
13,844,113
2,992,998
(3,681,244)
$
242,411,126
$
262,598,025
$
287,979,563
$
299,413,853
$
304,246,854
$
315,337,214
$
(22,625,689) $
6,689,832
$
26,270,230
$
53,844,154
$
13,249,244
$
57,303,803
16,767,489
30,831,235
17,682,844
15,518,489
12,441,052
742,504
$
(5,858,200) $
37,521,067
$
43,953,074
$
69,362,643
$
25,690,296
$
58,046,307
149
CITY OF CHANDLER, ARIZONA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
General fund
Nonspendable
$
938,549
$
892,533
$
941,359
$
907,594
Restricted
939,867
1,166,105
1,792,180
1,566,618
Assigned
101,115,766
95,185,696
102,222,466
109,958,162
Unassigned
66,077,714
82,453,462
80,152,269
68,567,835
Total general fund
$
169,071,896
$
179,697,796
$
185,108,274
$
181,000,209
All other governmental funds
Nonspendable
—
—
—
—
Restricted
111,367,545
104,557,663
107,173,814
120,201,229
Unassigned
(13,646,428)
(11,034,021)
(15,322,260)
(11,877,159)
Total all other governmental funds
$
97,721,117
$
93,523,642
$
91,851,554
$
108,324,070
150
Schedule 3
Fiscal Year
2017
2018
2019
2020
2021
2022
$
979,446
$
813,143
$
866,239
$
985,396
$
1,051,638
$
1,103,805
1,451,061
1,980,807
2,179,767
1,710,608
1,711,242
1,324,539
101,620,277
116,359,633
131,214,214
139,326,860
143,763,585
192,983,983
87,492,981
65,182,337
66,035,760
90,887,858
96,065,934
86,626,252
$
191,543,765
$
184,335,920
$
200,295,980
$
232,910,722
$
242,592,399
$
282,038,579
$
7,422
$
—
$
—
$
—
$
—
$
—
120,640,190
166,570,330
171,310,958
190,128,921
187,759,476
193,055,992
(11,350,383)
(2,555,420)
(5,758,986)
(7,697,792)
(7,226,577)
(2,361,250)
$
109,297,229
$
164,014,910
$
165,551,972
$
182,431,129
$
180,532,899
$
190,694,742
151
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
Property taxes
$
29,841,739
$
28,442,823
$
28,899,684
$
29,237,607
Sales taxes
102,200,517
103,880,801
108,657,130
112,250,883
Highway user taxes
12,929,504
13,352,622
14,633,470
15,303,635
Other taxes
6,295,212
3,243,937
10,106,891
6,100,475
Franchise fees
2,936,533
3,145,449
3,300,129
3,344,817
State shared revenues
51,347,206
55,423,759
59,236,588
60,712,442
Grants and entitlements
9,480,090
10,187,895
10,638,831
16,159,064
System development fees
7,781,083
11,846,275
10,585,623
16,217,004
Special assessments
676,127
678,843
573,438
606,757
Licenses and permits
4,887,466
5,479,384
5,146,556
6,634,161
Charges for services
19,786,513
20,269,976
20,110,036
19,705,786
Fines and forfeitures
5,825,098
4,622,215
4,601,501
4,828,174
Rentals
570,638
732,807
751,163
974,192
Contributions
100,000
100,000
150,000
200,000
Interest revenue
2,529,078
1,623,973
1,562,241
3,409,065
Miscellaneous
1,384,123
650,117
572,252
897,102
Total revenues
$
258,570,927
$
263,680,876
$
279,525,533
$
296,581,164
152
Schedule 4
Fiscal Year
2017
2018
2019
2020
2021
2022
$
29,692,846
$
30,819,812
$
32,526,357
$
34,334,216
$
36,409,345
$
39,540,557
120,189,651
127,584,410
139,851,355
140,644,918
157,513,686
182,028,630
16,683,743
16,135,949
17,301,902
16,996,911
18,108,310
19,460,326
664,616
940,203
866,267
1,153,237
2,226,568
2,210,634
3,285,267
3,571,744
3,567,184
3,441,225
3,823,524
3,861,042
65,924,228
64,723,211
67,156,430
70,769,943
80,699,253
87,038,075
12,677,860
12,111,857
11,911,639
49,719,415
29,417,028
36,022,070
14,683,327
13,982,674
9,023,678
8,730,973
8,207,728
5,031,031
607,191
611,499
610,501
508,485
587,020
610,719
7,075,996
6,394,322
7,268,592
7,760,403
6,656,737
6,915,745
20,869,517
21,827,375
21,512,737
20,355,702
19,631,389
22,565,072
3,908,387
4,865,783
4,234,286
5,571,322
2,920,173
3,439,778
678,387
127,575
127,206
213,345
174,766
119,710
200,000
200,000
200,000
596,153
5,201,737
254,874
921,195
1,398,729
13,268,020
15,017,352
533,383
(14,687,606)
494,984
974,107
923,369
1,471,977
1,105,070
1,310,929
$
298,557,195
$
306,269,250
$
330,349,523
$
377,285,577
$
373,215,717
$
395,721,586
153
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2013
2014
2015
2016
General government
$ 44,512,533
$ 46,807,747
$ 46,895,106
$ 52,138,384
Public safety
89,587,613
90,068,218
93,773,306
104,605,663
Transportation and development
24,807,578
23,418,175
24,769,553
25,471,154
Community services
23,554,854
23,771,925
24,569,283
24,988,844
Capital improvements
41,793,319
45,657,265
56,539,116
50,009,243
Debt service:
Principal retirement
26,870,000
15,955,000
21,490,000
17,465,000
Interest and fiscal charges
11,908,025
10,682,206
7,737,974
8,635,631
Bond issuance costs
—
145,970
722,293
—
Total expenditures
$ 263,033,922
$ 256,506,506
$ 276,496,631
$ 283,313,919
Debt service as a percentage of
noncapital expenditures
16.4 %
11.7 %
12.3 %
10.2 %
(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
2017
2018
2019
2020
2021
2022
$ 50,892,490
$ 55,706,708
$ 58,070,201
$ 79,624,174
$ 93,482,842
$ 90,412,233
103,167,906
109,736,277
111,496,663
113,166,600
119,357,759
123,991,198
28,294,221
27,750,365
25,871,080
30,117,735
63,281,132
27,995,477
26,605,279
27,088,640
27,712,871
28,344,665
29,084,081
30,855,014
44,712,255
71,268,257
69,006,722
77,024,413
61,907,124
63,832,358
25,240,000
(1)
20,264,000
22,820,000
21,340,000
19,980,000
32,887,716
7,689,305
7,918,081
8,270,161
8,073,320
7,801,885
7,102,529
249,838
252,611
—
319,631
—
401,284
$ 286,851,294
$ 319,984,939
$ 323,247,698
$ 358,010,538
$ 394,894,823
$ 377,477,809
12.9 %
10.4 %
11.2 %
9.7 %
7.8 %
10.8 %
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
2013
2014
2015
2016
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
76,381
161,126
103,964
463,709
Payment to escrow agent
—
(9,061,800)
(143,635,520)
—
Transfers in
32,849,979
24,586,418
28,717,990
27,885,557
Transfers out
(33,997,394)
(25,653,741)
(29,776,581)
(29,252,060)
Total other financing sources (uses)
(1,071,034)
(745,945)
709,488
(902,794)
Net change in fund balance
$
(5,533,759) $
6,428,425 $
3,738,390 $
12,364,451
156
Schedule 6
Fiscal Year
2017
2018
2019
2020
2021
2022
$
6,339,230
$
3,609,365
$
—
$
2,927,904
$
—
$
2,160,918
25,500,000
58,740,000
—
30,400,000
—
58,244,909
652,882
213,829
1,356,796
396,924
225,081
1,566,455
(31,589,392)
—
—
—
—
(26,716,745)
28,116,369
46,032,351
45,484,505
39,282,296
44,961,787
28,249,623
(29,208,275)
(47,370,020)
(48,005,487)
(42,788,264)
(47,364,881)
(32,091,700)
(189,186)
61,225,525
(1,164,186)
30,218,860
(2,178,013)
31,413,460
$
11,516,715
$
47,509,836
$
5,937,639
$
49,493,899
$
7,783,447
$
49,657,237
157
CITY OF CHANDLER, ARIZONA
TAXABLE REVENUE BY CATEGORY
LAST TEN FISCAL YEARS
Fiscal Year
2013
2014
2015
2016
Amusements
$
717,442
$
728,110
$
895,730
$
1,019,939
Contracting
10,408,518
9,780,645
8,870,092
8,855,057
General Retail
45,331,307
47,454,682
49,740,000
51,191,162
Hotel/Motel
2,288,989
2,472,754
2,892,470
2,957,685
Miscellaneous Related Revenue (1)
2,937,426
2,660,201
2,815,040
2,745,130
Publishing
334,981
258,547
260,712
248,433
Rentals - Personal Property
2,884,618
2,949,421
3,261,716
3,125,459
Rentals - Real Property
10,817,611
11,058,203
11,967,509
13,217,561
Restaurant/Bar
9,069,109
9,542,714
10,188,718
10,752,479
Telecommunications
3,731,350
3,533,636
3,435,949
3,234,369
Use Tax
1,315,599
1,090,428
1,145,534
1,127,257
Proposition 207
—
—
—
—
Utilities
12,363,565
12,421,526
13,194,526
13,786,741
Total Sales and Use Taxes
$
102,200,515
$
103,950,867
$
108,667,996
$
112,261,272
City Direct Sales Tax Rate (2)
1.75%
1.75%
1.76%
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.
(4) In Fiscal Year 2021-22, the City did a restatement due to a utility customer being overbilled; prior years
have not been restated.
158
Schedule 7
Fiscal Year
2017
2018
2019
(3)
2020
2021
2022
$
1,019,938
$
1,083,161
$
1,318,195
$
972,105
$
789,411
$
1,348,862
11,496,791
12,388,978
17,228,786
12,824,214
14,446,470
17,894,817
53,137,169
56,605,561
60,029,293
64,911,529
75,590,425
85,823,599
3,424,279
3,712,085
4,099,450
3,560,787
3,215,504
5,980,467
2,527,981
2,328,030
1,757,235
1,710,004
2,152,443
3,983,534
186,862
182,820
207,462
177,542
197,578
204,025
3,611,180
3,676,196
4,076,298
4,282,451
3,760,815
4,207,664
13,647,156
15,134,275
16,506,671
18,184,361
19,214,217
20,876,574
11,341,714
11,872,941
12,773,198
11,978,625
13,099,159
16,324,360
2,796,065
2,395,673
2,191,747
2,337,375
1,751,284
1,571,877
3,619,340
4,394,129
5,461,771
5,335,557
7,636,473
6,966,021
—
—
—
—
256,702
1,276,846
13,391,857
13,824,331
14,218,596
14,385,889
15,419,721
15,591,363 (4)
$ 120,200,332
$ 127,598,180
$ 139,868,702
$ 140,660,439
$ 157,530,202
$ 182,050,009
1.75%
1.74%
1.74%
1.73%
1.70%
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)
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%
2022
1.70%
0.65%
4.94%
0.03%
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 2022
Fiscal Year 2013
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
$ 12,391,436
1
6.85%
$
9,485,155
1
9.28%
Taxpayer B
Department Store
5,026,561
2
2.78%
3,026,748
2
2.96%
Taxpayer C
Grocery Store
3,480,849
3
1.93%
2,318,356
3
2.27%
Taxpayer D
Department Store
3,453,166
4
1.91%
1,872,702
4
1.83%
Taxpayer E
Retailer
3,429,997
5
1.90%
Taxpayer F
Construction
3,006,417
6
1.66%
1,359,768
6
1.33%
Taxpayer G
Retailer
2,890,231
7
1.60%
1,442,618
5
1.41%
Taxpayer H
Retailer
2,366,238
8
1.31%
Taxpayer I
Vehicle Dealer
2,139,093
9
1.18%
Taxpayer J
Commercial Leasing
1,622,400
10
0.90%
Taxpayer K
Telecommunications
1,325,562
7
1.30%
Taxpayer L
Department Store
1,315,231
8
1.29%
Taxpayer M
Utility
1,288,135
9
1.26%
Taxpayer N
Department Store
1,198,573
10
1.17%
$ 39,806,388
22.02%
$
24,632,848
24.10%
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
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
2022
208,979,909
—
635,000
15,043,211
—
11,028
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
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
—
2015
140,072,000
31,610,000
142,200,000
11,567,086
1,324,131
8,502,636
2016
127,782,000
24,850,000
204,090,000
10,630,056
832,855
8,040,688
2017
115,722,000
9,595,000
198,520,000
12,263,924
624,642
11,447,974
2018
105,707,000
7,845,000
230,635,000
11,025,887
416,428
15,075,185
2019
95,901,000
4,685,000
222,575,000
9,898,570
202,401
17,271,299
2020
86,261,000
2,340,000
228,985,000
8,773,210
—
15,979,766
2021
76,936,000
—
219,780,000
7,647,850
—
15,312,526
2022
70,380,091
—
215,105,000
4,854,030
—
9,667,992
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)
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
2022
299,257,241
4,290,154
294,967,087
48,805,511,338
0.60%
524,676,261
3.95%
1,855
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, 2022
Schedule 11
Estimated
Estimated Share
Debt
Percentage
of Overlapping
Governmental Unit
Outstanding
Applicable
Debt
Debt repaid with property taxes
State of Arizona
None
4.67 %
None
Maricopa County
None
7.09
None
Maricopa County Community College District
$
184,715,000
7.09
$
13,099,988
Maricopa County Special Healthcare District
640,695,000
7.09
45,438,089
Chandler Unified School District No. 80
385,946,112
75.35
290,818,114
Kyrene Elementary School District No. 28
213,060,000
28.96
61,706,437
Mesa Unified School District No. 4
358,660,000
4.46
15,989,063
Gilbert Unified School District No. 41
156,110,000
2.74
4,271,170
Tempe Union High School District No. 213
76,755,000
16.63
12,764,357
East Valley Institute of Technology
None
14.43
None
Subtotal, overlapping debt
444,087,218
City direct debt
224,669,148
100.00
224,669,148
Total direct and overlapping debt
$
668,756,366
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 2021-22 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
2013
2014
2015
2016
6% General Obligation Bond Limitation
Debt limit
$ 130,522,600 $ 142,895,404 $ 142,827,478 $ 190,024,847
Total net debt applicable to limit
10,869,000
10,198,000
9,848,400
9,427,250
Legal debt margin
$ 119,653,600 $ 132,697,404 $ 132,979,078 $ 180,597,597
Total net debt applicable to the limit as a
percentage of the debt limit
8.33%
7.14%
6.90%
4.96%
20% General Obligation Bond Limitation
Debt limit
$ 435,075,335 $ 476,318,016 $ 476,091,596 $ 633,416,159
Total net debt applicable to limit
406,986,000 374,452,000 352,366,600 323,442,750
Legal debt margin
$ 28,089,335 $ 101,866,016 $ 123,724,996 $ 309,973,409
Total net debt applicable to the limit as a
percentage of the debt limit
93.54%
78.61%
74.01%
51.06%
Fiscal Year 2012-13 through Fiscal Year 2018-19: Piper Jaffray Inc.
Fiscal Year 2019-20 through Fiscal Year 2021-22: 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 2022
Full Cash Assessed Valuation as of June 30, 2022
$ 5,012,820,890
Debt limit (6% of assessed value)
300,769,253
Debt applicable to limit:
6% general obligation bonds
5,900,750
Excess premium on bonds outstanding
220,472
Legal 6% debt margin
$
294,648,031
Debt limit (20% of assessed value)
$ 1,002,564,178
Debt applicable to limit:
20% general obligation bonds
273,459,250
Excess premium on bonds outstanding
12,415,182
Legal 20% debt margin
$
716,689,746
Fiscal Year
2017
2018
2019
2020
2021
2022
$
198,432,895 $
209,370,282 $
232,258,669 $
258,505,031 $
280,953,536 $
300,769,253
8,952,650
14,974,350
12,511,300
9,772,578
6,759,506
6,121,222
$
189,480,245 $
194,395,932 $
219,747,369 $
248,732,453 $
274,194,030 $
294,648,031
4.51%
7.15%
5.39%
3.78%
2.41%
2.04%
$
661,442,986 $
697,900,943 $
774,195,564 $
861,683,439 $
936,511,789 $ 1,002,564,178
300,592,650
324,166,628
298,881,202
303,956,132
277,073,742
285,874,432
$
360,850,336 $
373,734,315 $
475,314,362 $
557,727,307 $
659,438,047 $
716,689,746
45.44%
46.45%
38.61%
35.27%
29.59%
28.51%
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
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
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
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
2022
266,906,299
—
266,906,299
12,175,000
7,326,414
13.69
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
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
25,520,769
36,451,171
—
—
—
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
2018
2019
2020
2021
2022
Mining, Utility, Commercial,
and Industrial
18.00 %
18.00 %
18.00 %
18.00 %
17.50 %
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
14.00
15.00
15.00
15.00
15.00
Tax Year 2018 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 2022 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
2021-22
$
1.1126 $
38,884,287 $
38,437,588
98.85 %
2020-21
1.1201
36,379,535
36,041,018
99.07
2019-20
1.1281
34,039,034
33,597,309
98.70
2018-19
1.1386
31,655,843
31,714,236
100.00
2017-18
1.1400
30,612,579
30,321,360
99.05
Fiscal Year 2017-18 through 2018-19 Source: Piper Jaffray Inc. as compiled from County Department of
Finance.
Fiscal Year 2019-20 through 2021-22 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, 2022
Schedule 16
FY 2021-22 Net
Limited Property
Assessed Valuation
FY 2021-22
Total Tax Rate
per $100
Assessed Valuation
State of Arizona (1)
$
74,200,233,397 $
—
Maricopa County
48,724,126,672
1.7722
Maricopa County Community College District
48,724,126,672
1.2257
Maricopa County Library District
48,724,126,672
0.0556
Maricopa County Flood Control District
42,084,633,673
0.1792
Maricopa County Fire District
48,724,126,672
0.0086
Maricopa County Special Health Care District
48,724,126,672
0.2970
Central Arizona Water Conservation District
48,834,616,505
0.1400
East Valley Institute of Technology District No. 401 (2)
23,998,252,082
0.0500
Chandler Unified School District No. 80
3,374,230,827
6.0780
Tempe Union High School District No. 213
4,201,600,213
2.4466
Kyrene Elementary School District No. 28
2,412,625,402
3.6784
Mesa Unified School District No. 4
3,544,450,333
7.0635
Gilbert Unified School District No. 41
2,356,761,360
6.0292
City of Chandler
3,463,794,661
1.1126
Source: Piper Sandler Companies as compiled from Maricopa County Tax Levy and 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 $0.4263 for fiscal year
2021-22 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 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 2021-22 Net
Full Cash
Assessed
Valuation
FY 2021-22
Annual
Percentage
Change
Mining, Utility,
Commercial, and
Industrial
$ 1,027,345,765
$ 1,102,515,089
$ 1,246,170,328
$ 1,412,928,374
$ 1,488,882,870
5.10%
Agriculture and
Vacant Land
74,055,978
75,266,539
78,888,739
77,850,859
76,801,910
(1.37)%
Owner-Occupied
Residential
1,472,336,280
1,574,405,659
1,681,112,768
1,837,472,779
1,990,237,285
7.68%
Leased or Rented
Residential
574,699,602
646,538,541
738,411,405
847,104,454
946,787,996
10.53%
Railroad, Private
Car, and Airline
Flight Property
1,910,025
1,782,690
1,910,025
2,011,500
2,011,500
0.00%
Historical Property
156,435,042
88,612,464
124,084,500
130,572,188
177,317,246
26.36%
Commercial
Historic Property
432,241
383,733
400,055
477,042
520,137
8.29%
TOTAL
$ 3,307,214,933
$ 3,489,504,715
$ 3,870,977,820
$ 4,308,417,196
$ 4,682,558,944
8.68%
Fiscal Year 2017-18 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 2021-22 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, 2022
Schedule 18
Taxpayer
Description
FY 2021-22 Net
Limited
Property
Assessed Value
As % of Total FY
2021-22 Net
Limited
Property
Assessed Value
Intel Corporation
Manufacturing Plant
$
228,775,877
6.60%
CyrusOne LLC
Data Center
32,821,538
0.95
Wells Fargo
Financial Services
23,782,384
0.69
TWC-Chandler LLC
Commercial Rental Property
20,416,068
0.59
CAZ 7 LLC
Manufacturing Plant
16,254,315
0.47
Microchip Technology
Manufacturing Plant
14,386,637
0.42
Bank of America
Financial Services
13,937,934
0.40
CAZ 1 DE LLC
Commercial Rental Property
12,571,668
0.36
NXP Semiconductors
Manufacturing Plant
11,331,274
0.33
Digital 2121 South Price LLC
Data Center
10,237,930
0.30
$
384,515,625
11.11%
Total City Net Limited Property Assessed Valuation
$ 3,463,794,661
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
2021-22
$40,751,143,934
2020-21
36,949,424,457
2019-20
33,312,389,044
2018-19
29,847,787,490
2017-18
28,994,768,811
Fiscal Year 2017-18 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 2021-22 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 2021-22
$
3,463,794,661 $
48,724,126,672 $
74,200,233,397
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
Comparative Net Full Cash Assessed Value History
Fiscal Year
City of Chandler
Maricopa County
State of Arizona
FY 2021-22
$
4,682,558,944 $
67,535,008,138 $
97,282,221,465
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
Fiscal Year 2017-18 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 2021-22 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, 2022
Schedule 20
Per Capital
As % of City's
As % of City's
Bonded Debt
2021-22
2021-22
Population
Net Full Cash
Estimated Net
Estimates @
Assessed
Full Cash
282,873 (1)
Value
Value
Direct General Obligation Bond Debt
$ 279,360,000 $
987.58
5.97
0.69
Direct Overlapping General Obligation Bond
Debt
$ 709,798,933 $
2,509.25
15.16
1.74
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
2022 estimate
282,873 (1)
4,575,603 (2)
7,489,121 (2)
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 and Arizona Commerce Authority
(3) U.S. Census Bureau
175
CITY OF CHANDLER, ARIZONA
EXCISE TAX COLLECTIONS
Schedule 22
2017-18 (1)
2018-19 (1)
2019-20 (1)
2020-21 (1)
2021-22 (1)
Adopted
2022-23
Transaction Privilege Tax
$
127,584,410
$ 138,888,825
$ 140,798,389
$ 155,638,444
$ 178,567,736
$ 174,940,200
State Shared Sales Tax
23,821,248
25,525,595
26,597,361
30,982,818
38,801,443
32,000,000
State Shared Income Tax
30,652,381
30,693,731
33,255,159
37,324,127
36,011,056
42,720,000
Franchise Fees
3,560,770
3,556,211
3,432,995
3,615,294
3,652,812
3,451,000
Licenses and Permits
6,512,930
7,398,669
7,908,291
6,835,817
7,086,928
6,903,500
Fines and Forfeitures
3,368,445
3,196,843
2,714,065
2,316,000
2,791,624
2,827,400
Totals
$
195,500,184
$ 209,259,874
$ 214,706,260
$ 236,712,500
$ 266,911,599
$ 262,842,100
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, 2022
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, 2022
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
2017-18
2018-19
2019-20
2020-21
2021-22
System Revenues:
Service Fees
$ 110,399,242 $ 108,514,851 $ 116,254,245 $ 120,727,939 $ 116,020,531
Miscellaneous
953,964
130,001
97,652
35,573
568,571
Interest Income
780,250
6,817,699
8,772,310
264,558
(6,810,687)
Total System Revenues
$ 112,133,456 $ 115,462,551 $ 125,124,207 $ 121,028,070 $ 109,778,415
System Expenditures:
General and Administration
$ 6,219,983 $ 6,400,086 $ 6,511,083 $ 6,510,382 $ 6,533,212
Personnel Services
16,343,098 16,548,508 17,613,794 17,923,155 17,632,637
Contractual Services
11,774,018 12,919,313 13,240,678 14,338,257 16,597,926
Commodities
30,463,463 23,034,508 25,283,817 21,857,415 22,851,386
Total System Expenditures
$ 64,800,562 $ 58,902,415 $ 62,649,372 $ 60,629,209 $ 63,615,161
Net Income Available for Debt
Service
$ 47,332,894 $ 56,560,136 $ 62,474,835 $ 60,398,861 $ 46,163,254
Water and Sewer Revenues Bond
(Senior Obligation) Debt Service
$ 3,473,800 $ 2,532,400 $ 2,433,600 $
— $
—
Approximate Debt Service
Coverage for Senior Obligations
13.63x
22.33x
20.39x
N/A
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, 2022
Schedule 27
Water
Customer name
Amount
Intel Corporation
$ 7,539,451
NXP Semiconductors
1,170,537
Chandler Unified School District
568,916
Air Products & Chemical
384,589
Digital 2121 South Price, LLC
170,484
Townsquare Apartments
132,287
TWC Chandler, LLC
118,593
Chandler Regional Medical Center/Dignity Health
113,566
Gleiberman Property inc.
109,229
MG Country Brook Apartments, LLC
89,340
Wastewater
Customer name
Amount
Intel Corporation
$ 10,525,045
NXP Semiconductors
1,778,410
Air Products & Chemical
666,212
Digital 2121 South Price, LLC
276,528
Chandler Unified School District
258,237
Gila River Indian Community (Lone Butte)
179,142
Chandler Regional Medical Center/Dignity Health
155,765
Microchip Technology
98,838
Ergon Asphalt and Emulsions
89,922
BMF IV AZ Laguna Village LLC
89,597
Source: City of Chandler, Management Services Department
181
CITY OF CHANDLER, ARIZONA
NUMBER OF WATER AND WASTEWATER CUSTOMERS
LAST TEN FISCAL YEARS
2013
2014
2015
2016
WATER
Residential
73,551
74,319
75,035
75,883
Commercial
4,406
4,158
4,243
4,309
Multi-Unit
991
1,032
1,043
1,087
Industrial
50
56
58
61
Other
226
1,317
1,536
1,640
WASTEWATER
Residential
72,067
72,862
73,363
74,346
Commercial
2,358
2,012
2,033
2,201
Multi-Unit
811
878
887
920
Industrial
39
37
37
34
Other
252
470
477
475
Source: City of Chandler, Management Services Department
182
Schedule 28
2017
2018
2019
2020
2021
2022
77,062
77,674
78,244
78,928
79,961
79,873
4,535
4,550
4,927
2,546
2,577
4,919
1,107
1,128
1,134
1,115
1,124
1,151
63
66
67
63
63
54
2,034
2,116
2,389
647
647
800
75,761
76,517
77,089
77,797
78,794
79,294
2,138
2,329
2,371
2,420
2,450
2,540
915
952
956
965
974
999
38
48
48
48
48
49
590
592
598
603
603
604
183
CITY OF CHANDLER, ARIZONA
DELINQUENCIES ON PAYMENTS FOR THE ASSESSMENTS
JUNE 30, 2022
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, 2022
Schedule 30
2021-22
2021-22
Overlapping
Proportion Applicable
General
to City of Chandler
Obligation
Approximate
Net Debt
Overlapping Jurisdiction
Bonded Debt
Percent
Amount
State of Arizona
None
4.668 %
None
Maricopa County
None
7.092
None
Maricopa County Community College District
$
184,715,000
7.092
$
13,099,988
Maricopa County Special Healthcare District
640,695,000
7.092
45,438,089
Chandler Unified School District No. 80
385,946,112
75.352
290,818,114
Kyrene Elementary School District No. 28
213,060,000
28.962
61,706,437
Mesa Unified School District No. 4
358,660,000
4.458
15,989,063
Gilbert Unified School District No. 41
156,110,000
2.736
4,271,170
Tempe Union High School District No. 213
7,675,500,000
16.630
12,764,357
East Valley Institute of Technology District No.
401
None
14.434
None
City of Chandler
279,360,000
100.000
279,360,000
Total Direct and Overlapping General Obligation Bonded Debt Outstanding
$
723,447,218
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
$
10.8701
Inside Mesa Unified School District No. 4
$
11.9044
Inside Tempe Union High School District No. 213 and
Kyrene Elementary School District No. 28
$
10.9659
Inside Chandler Unified School District No. 80
$
10.9189
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 2021-22 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)
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
2021-22
282,873
13,284,564,699
36.0
3.0
46,963
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
2022
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
12,000
1
7.92%
Wells Fargo Bank
5,500
2
3.63%
Chandler Unified School District
4,900
3
3.24%
Bank of America
3,800
4
2.51%
Chandler Regional Medical Center/Dignity Health
2,600
5
1.72%
Northrup Grumman
2,150
6
1.42%
NXP Semiconductors
1,700
7
1.12%
City of Chandler
1,700
7
1.12%
Microchip Technology
1,500
8
0.99%
PayPal
1,500
8
0.99%
Verizon Wireless
1,400
9
0.92%
Bashas Corporation
1,100
10
0.73%
Total
39,850
25.58%
2013
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
11,000
1
8.77%
Bank of America
3,600
2
2.87%
Chandler Unified School District
3,000
3
2.39%
Wells Fargo
2,600
4
2.07%
Chandler Regional Medical Center/Dignity Health
2,100
5
1.67%
PayPal
2,000
6
1.59%
Verizon Wireless
1,695
7
1.35%
City of Chandler
1,567
8
1.25%
Microchip Technology
1,540
9
1.23%
Freescale Semiconductor
1,450
10
1.16%
Total
30,552
24.35%
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
2012-13
2013-14
2014-15
2015-16
(1)
Full Time Equivalent Personnel
Mayor and council
4
4
4
4
City clerk
5
6
6
6
City manager
178
174
176
240
Communications/public affairs
19
13
13
15
City magistrate
39
35
37
39
Law
29
29
31
31
Management services
72
66
69
67
Total General Government
346
327
336
402
Total Transportation and Development
163
159
165
150
Total Community Services
192
199
198
156
Police
468
467
483
490
Fire
234
224
237
240
Total Public Safety
702
691
720
730
Municipal utilities administration
4
5
5
8
Water
85
87
87
87
Wastewater
46
46
62
65
Solid waste
18
16
20
21
Total Municipal Utilities
153
154
174
181
Municipal utilities administration
—
—
—
—
Water
—
—
—
—
Wastewater
—
—
—
—
Solid waste
—
—
—
—
Public works administration
—
—
—
—
Streets
—
—
—
—
Total Public Works and Utilities
—
—
—
—
Total Primary Government
1,556
1,530
1,593
1,619
(1)
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
2016-17
(2)
2017-18
2018-19
(3)
2019-20
2020-21
2021-22
11
4
5
5
5
6
7
6
6
6
6
4
206
199
193
194
198
196
15
15
14
15
14
12
38
40
37
40
33
35
31
30
32
32
31
32
64
67
68
67
66
59
372
361
355
359
353
344
152
160
84
77
76
77
199
202
195
199
194
194
491
501
485
488
477
476
222
233
233
229
228
235
713
734
718
717
705
711
7
7
—
—
—
—
89
90
—
—
—
—
69
74
—
—
—
—
20
18
—
—
—
—
185
189
—
—
—
—
—
—
6
6
7
5
—
—
90
90
89
28
—
—
66
68
71
47
—
—
19
21
21
21
—
—
1
2
2
2
—
—
70
78
79
58
—
—
252
265
269
161
1,621
(2)
1,646
1,604
(3)
1,617
1,597
1,487
189
CITY OF CHANDLER, ARIZONA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2012-13
2013-14
2014-15
2015-16
General Government
Privilege tax licenses
27,387
27,467
28,224
29,582
Meeting notices posted
584
564
544
565
City council actions and agenda items
prepared
834
780
867
844
Grant awards received
43
53
51
46
Inventory turnover ratio
1.89
2.10
1.57
1.74
Transportation & Development
Building permits issued
3,785
5,490
5,170
5,142
Community Services
Library circulation
2,395,192
2,332,758
2,163,076
2,101,421
Center for the Arts events & exhibits
1,003
938
939
985
Public Safety
Crime rate (per 1,000 population)
28
27
23
26
Total calls for police services (estimated)
137,485
145,400
139,177
145,466
Total calls for fire services
18,474
18,865
22,785
23,966
Fire inspections
5,029
5,442
4,692
5,814
Fire investigations
22
16
27
30
Municipal Utilities
Water connections
79,278
79,766
80,401
83,089
Operating wells
26
27
28
28
Daily pumping capacity - wells (gallons)
64,790,000
64,710,000
64,400,000
66,300,000
Daily pumping capacity - plants (gallons)
72,000,000
72,000,000
72,000,000
72,000,000
Sewer connections
74,606
75,564
76,492
78,144
Sanitary sewer (miles)
869
890
911
917
Solid waste customers served
70,667
71,269
71,860
73,162
Solid waste refuse collected (tons)
86,557
83,950
84,209
81,653
Solid waste refuse recycled (tons)
20,680
21,046
22,442
22,102
Source: City of Chandler Departments
190
Schedule 34
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
28,321
28,046
37,404
41,290
45,590
48,878
535
681
666
542
395
377
860
838
789
739
460
1,299
43
27
24
33
40
39
1.81
1.79
2.04
2.40
1.73
2.00
4,635
3,944
4,011
4,091
4,601
4,615
2,059,429
2,041,574
1,801,237
1,415,291
1,356,695
1,308,861
1,048
1,177
825
537
389
690
26
25
22
23
19
20
156,186
159,301
154,736
146,859
139,236
146,008
25,072
25,185
26,818
26,371
26,676
28,582
4,635
5,135
6,698
6,641
3,257
3,389
27
41
18
23
17
14
84,670
84,338
85,416
86,098
87,251
83,237
31
32
31
31
30
30
74,400,000
74,100,000
71,300,000
71,800,000
71,800,000
69,000,000
72,000,000
84,000,000
84,000,000
84,000,000
84,000,000
84,000,000
78,972
79,841
81,033
81,796
82,895
81,419
928
933
935
941
945
947
73,288
75,018
75,675
76,773
77,297
76,249
80,069
83,004
84,500
86,950
94,218
93,487
22,305
22,101
22,887
21,800
22,775
20,876
191
CITY OF CHANDLER, ARIZONA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2012-13
2013-14
2014-15
2015-16
Community Services
Developed parks
61
62
64
65
Developed acres
1,198
1,208
1,232
1,236
Undeveloped acres
336
325
309
302
Swimming pools
6
6
6
6
Lighted fields
39
39
41
41
Library bookstock
550,857
595,969
396,773 (1)
341,073
Transportation and Development
Total miles streets (center line)
831
838
841
855
Street lights
26,900
27,100
27,700
27,700
Signalized intersections
216
216
218
218
Public Safety
Police stations
3
3
3
3
Fire stations
10
10
10
10
General Government
Based aircraft
388
415
425
427
Municipal Utilities
Water mains (miles)
1,227
1,227
1,278
1,196 (2)
Fire hydrants
12,553
12,717
13,118
13,207
Average daily treatment (mgd)
26
26
28
29
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
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
65
65
67
67
67
68
1,244
1,244
1,281
1,281
1,301
1,309
299
299
231
231
219
209
6
6
6
6
6
6
43
43
41
43
50
51
360,618
359,445
310,888
310,812
294,276
295,573
855
857
857
858
858
858
27,800
27,199
29,500
29,500
29,731
28,515
218
220
225
226
232
234
3
3
3
3
3
3
10
11
11
11
11
11
455
457
523
440
448
441
1,283
1,212
1,218
1,228
1,232
1,237
15,708
15,970
16,159
16,296
16,492
13,780
29
28
54
31
31
28
193
194
Phone (480) 782-2333
www.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