Extracted text (via pymupdf)
382769 characters
City of Chandler
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
“Innovation at Work”
2024
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Prepared by
Management Services Department
Dawn Lang, Deputy City Manager|CFO
Kristi Smith, Financial Services Director
Julie Goucher, Accounting Senior Manager
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................................
1
Elected and Appointed Officials ..................................................................................................................
9
Organizational Chart ......................................................................................................................................
10
Certificate of Achievement for Excellence in Financial Reporting .......................................................
11
FINANCIAL SECTION
Independent Auditor’s Report .....................................................................................................................
13
Management’s Discussion and Analysis (MD&A) ....................................................................................
19
Basic Financial Statements:
Government-wide Financial Statements -
Statement of Net Position ......................................................................................................................
32
Statement of Activities ............................................................................................................................
34
Fund Financial Statements:
Balance Sheet - Governmental Funds .................................................................................................
36
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Position ......................................................................................................................
37
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental
Funds ..........................................................................................................................................................
38
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Government-wide Statement of Activities ............................
39
Statement of Net Position - Proprietary Funds .................................................................................
40
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds .............
43
Statement of Cash Flows - Proprietary Funds ...................................................................................
44
Notes to the Financial Statements .........................................................................................................
46
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -
General Fund ............................................................................................................................................
93
Schedule of the Proportionate Share of the Net Pension Liability - Arizona State
Retirement System ..................................................................................................................................
94
Schedule of Contributions - All Pension Plans ..................................................................................
96
Schedule of Changes in the Net Pension Liability and Related Ratios - Public Safety
Personnel Retirement System - Police ................................................................................................
98
Schedule of Changes in the Net Pension Liability and Related Ratios - Public Safety
Personnel Retirement System - Fire ....................................................................................................
100
Schedule of Changes in OPEB Liabilities and Related Ratios - Single Employer Plan ..............
102
Notes to the Required Supplementary Information ........................................................................
104
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
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 ...........................................................................................
109
Non-Major Governmental Funds:
Combining Balance Sheet ....................................................................................................................
113
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..............
116
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Highway User Special Revenue .........................................................................................................
119
Local Transportation Assistance Special Revenue .......................................................................
120
Grants Special Revenue ......................................................................................................................
121
Community Development Special Revenue ..................................................................................
122
Police Confiscated Property Special Revenue ...............................................................................
123
Parks and Recreation Special Revenue ...........................................................................................
124
Museum Special Revenue ..................................................................................................................
125
Library Special Revenue .....................................................................................................................
126
Special Assessment Bond ..................................................................................................................
127
General Government Capital Projects ............................................................................................
128
Public Buildings Capital Projects ......................................................................................................
129
Grants Capital Projects .......................................................................................................................
130
Streets Capital Projects .......................................................................................................................
131
Community Services Capital Projects ..............................................................................................
132
Public Safety Buildings and Improvements Capital Projects .....................................................
133
Vehicle and Capital Equipment Replacement Capital Projects .................................................
134
Technology Replacement Capital Projects .....................................................................................
135
Municipal Arts Capital Projects .........................................................................................................
136
Non-Major Proprietary Funds:
Combining Statement of Net Position ..............................................................................................
138
Combining Statement of Revenues, Expenses and Changes in Net Position ..........................
141
Combining Statement of Cash Flows ................................................................................................
142
STATISTICAL SECTION
Financial Trends
Schedule 1, Net Position by Component .........................................................................................
147
Schedule 2a, Changes in Net Position ..............................................................................................
149
Schedule 2b, Changes in Net Position ..............................................................................................
151
Schedule 2c, Changes in Net Position ...............................................................................................
153
Schedule 3, Fund Balances of Governmental Funds .....................................................................
155
Schedule 4, Governmental Funds Revenues ...................................................................................
157
Schedule 5, Governmental Funds Expenditures and Debt Service Ratio .................................
159
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
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 ............................................................................................................................
161
Revenue Capacity
Schedule 7, Taxable Revenue by Category ......................................................................................
163
Schedule 8, Direct and Overlapping Sales and Use Tax Rates ....................................................
165
Schedule 9, Principal Sales and Use Taxpayers ..............................................................................
166
Debt Capacity
Schedule 10, Ratios of Outstanding Debt ........................................................................................
167
Schedule 11, Direct and Overlapping Governmental Activities Debt ........................................
168
Schedule 12, Legal Debt Margin Information .................................................................................
169
Schedule 13a, Pledged-Revenue Coverage .....................................................................................
171
Schedule 13b, Pledged-Revenue Coverage .....................................................................................
172
Schedule 14, Property Tax Assessment Ratios ...............................................................................
173
Schedule 15, Property Taxes Levied and Collected .......................................................................
174
Schedule 16, Direct and Overlapping Assessed Valuations and Tax Rates Per $100
Assessed Valuation ...............................................................................................................................
175
Schedule 17, Property Value by Property Classification ...............................................................
176
Schedule 18, Net Assessed Limited Property Assessed Value of Major Taxpayers ...............
177
Schedule 19, Estimated Net Full Cash Value and Assessed Values ............................................
178
Schedule 20, Direct and Overlapping General Obligation Bonded Debt Ratios .....................
179
Schedule 21, Population Statistics .....................................................................................................
180
Schedule 22, Excise Tax Collections ..................................................................................................
181
Schedule 23, Transaction Privilege (Sales) Tax Rates by Category .............................................
182
Schedule 24, State Sales Tax Taxable Activities, Tax Rates and Distribution Share ...............
183
Schedule 25, Combined Schedule of Water and Sewer System Revenues, Expenses, Net
Revenues and Debt Service Coverage ..............................................................................................
184
Schedule 26, Utility Rate Increase History .......................................................................................
185
Schedule 27, Top 10 Water and Wastewater Customers .............................................................
186
Schedule 28, Number of Water and Wastewater Customers .....................................................
187
Schedule 29, Direct and Overlapping General Obligation Bonded Debt Outstanding ..........
189
Demographic and Economic Information
Schedule 30, Demographic and Economic Statistics .....................................................................
190
Schedule 31, Principal Employers ......................................................................................................
192
Operating Information
Schedule 32, Employees by Function ................................................................................................
193
Schedule 33, Operating Indicators by Function/Program ............................................................
195
Schedule 34, Capital Asset Statistics by Function/Program .........................................................
197
CITY OF CHANDLER, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
iii
1
Introductory Section
Decades of award-winning budget,
financial management and purchasing
practices are indications of stability and
strength.
•
Letter of Transmittal
•
Elected and Appointed Officials
•
Organizational Chart
•
Certificate of Achievement for Excellence in Financial Reporting
December 20, 2024
Honorable Mayor, Members of the City Council, City Manager, and residents of the City of Chandler:
The Annual Comprehensive Financial Report of the City of Chandler, Arizona (the city), for the year ended June
30, 2024, 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 66 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 nearly 70 percent, from an
estimated 170,373 in 1999 to 288,088 in 2024, based on intercensal population estimates. 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 approximately 17,500 people in the city. Total
manufacturing employment is over 30,000 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 Toyota Financial Services establishing corporate offices in Chandler.
Information technology is another growth industry with Insight Enterprises Inc., a Fortune 500 company,
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 37.4 years, and the median household income is $107,339. In addition, 77 percent of the adult
population has a college degree or some college education. Nearly 27 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 3.0 percent
during fiscal year 2023-24 compared with 3.3 percent for Maricopa County and 3.7 percent for the State of
Arizona.
The city’s transaction privilege sales tax revenues, which comprise over 51 percent of its general fund, increased
by 3.5 percent for fiscal year 2023-24 from the prior year actuals. The city continues to strengthen its financial
position and has benefited 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 and increasing its
Moody's Excise Tax Revenue Obligation bond rating to AAA.
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: Parks 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.
In March 2023, the City Council re-established and/or altered six Focus Areas, identified below, to provide
guidance and direction as to what accomplishments the city should focus on and in what areas. The alterations
included an additional focus area added to delineate Community Safety from Quality of Life, and Mobility was
re-named Connectivity to focus on transportation and technology networks. Additional, Innovation and
Technology was changed to Sustainability and Technology to allow for better alignment of the advancements
being made toward sustainability. Good Governance continues to be a philosophy to support the overall goals
of the city, while other outlined focus areas concentrate efforts to make progress towards the City Council’s
vision.
•
Community Safety
Chandler is recognized among the safest cities in the nation. Our fire and police departments are
accredited and elite in their field. We ensure our community's safety with continued investment in
people, systems and technology. Innovative partnerships extend our ability to address emerging
community safety needs.
•
Connectivity
The ability to connect people, places and commerce through local, regional and virtual networks - is
essential. Chandler is served by three major highways, two railroad corridors, a well-planned street and
transit network, expending bike and shred-use paths and a municipal airport that efficiently connects
people and commerce. Chandler's advanced communication systems enhance our ability to connect
through technology and transportation networks.
2
•
Economic Vitality
Economic vitality includes the use of creative policies and marketing efforts that ensure Chandler
remains a world-class community for residents, visitors and businesses. Our approach preserves the
viability of employment corridors and positions properties for adaptive reuse, infill and redevelopment.
Chandler offers a business-focused environment for global industry leaders, exciting startups and
entrepreneurs through every stage of development. Our business climate, talented workforce and
lifestyle make Chandler a destination of choice for key industries.
•
Neighborhoods
To sustain an exceptional quality of life for Chandler residents, preservation and enhancement of
neighborhoods is paramount. These approaches ensure that all neighborhoods remain safe and vibrant.
Engaging residents, developers and community stakeholders provides opportunities to achieve this goal,
while maintaining each neighborhood's distinct character.
•
Quality of Life
Chandler's commitment to high standards has spanned generations of city leadership and resulted in
the safe and beautiful community residents and businesses enjoy today. Our innovative practices
maximize cost savings for taxpayers while enhancing the quality of city services. Our unparalleled quality
of life includes a focus on arts, culture, learning and recreation. High-quality developments, parks and
amenities shape the character of our neighborhoods and commercial centers.
•
Sustainability and Technology
Chandler's high-tech industries, businesses and talented workforce drive the local economy. We
recognize the importance of infrastructure, water and streamlined city services that support key
industries engaged in the development of current and future technologies. The pursuit of sustainable
and technological infrastructure and services advance our ability to meet the unique needs of the
community and equip our empowered, talented workforce to serve.
2023-2024 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;
•
Improved Excise Tax Revenue Obligation (ETRO) bond credit ratings from Aa1 to Aaa, making Chandler
the first city in Arizona to have AAA bond ratings for ETRO's from all three rating agencies.
•
Completed new sales of $117.4M in GO Bonds and $72M, including premiums, in ETROs to acquire and
construct improvements to city assets;
•
Achieved early pay-off of the Public Safety Personnel Retirement System (PSPRS) unfunded liability to
generate ongoing rate savings;
•
Increased State Major Manufacturing Fund from $100M to $200M to fund public infrastructure projects
related to Intel;
•
Completed the Airport's first Strategic Business Plan;
•
Conducted a comprehensive solar feasibility study, identifying the potential for over 9 megawatts of
power generation across 23 city facilities, translating to annual savings exceeding $1 million;
3
•
Partnered with Human Resources and Chandler Police to implement the Join Team Chandler marketing
campaign to promote career opportunities at the City of Chandler and Police department through
targeted communications and ads for prospective applicants about career opportunities;
•
Implemented a new point of sale system, Square, for Passport Services, and hosted a community
Passport Fair in partnership with the Western Passport Center and local congressional offices;
•
Increased court access by implementing live audio streaming for all courtroom proceedings to the
public, and enhanced criminal justice communication by partnering with Arizona Department of Public
Safety to report criminal history of individuals electronically;
•
Successfully secured $20,000 in mini-grants to promote youth diversity initiatives by providing over 20
mini-grants, impacting 11,000+ students, supporting diversity, equity and inclusion initiatives among
youth, aligning with the city's inclusive mission;
•
Created DEI Internal Speaker Series for employee education boosting employee development, aligning
with the new DEI Strategic Plan. A total of 18 sessions and over 500 attendees in FY2023-24, enhanced
understanding, and elicited employee DEI topic suggestions;
•
The Building Better Mental Health program involved 40+ organizations, 20+ experts, and drew 1,500+
attendees, advocating, educating and raising awareness for mental wellness through three impactful
community events;
•
Supported notable high-tech companies in opening new facilities and expanding operations in Chandler,
including ARM, Iridium Communications, EMD Electronics, and Saras Micro Devices;
•
Economic Development-assisted business locate projects included Wedgewood Pharmacy, Norwegian
Cruise Line, Trinity Air Medical, Keystone Medical, Penn Foster College, Dixon Golf, and Round1
Entertainment;
•
Supported the expansion of higher education opportunities in Chandler, including Grand Canyon
University opening its new nursing program site and the University of Arizona adding a Master of
Science in Business Analytics;
•
Continued operating Chandler Flex that since inception in July 2022, over 60,000 rides have been
provided to more than 2,500 unique riders. Extended First-Mile, Last-Mile Program (partnership with
Lyft), and provided 8,800 trips over ten months, and provided an estimated 600,000 boardings on bus,
24,000 trips on Paratransit, and 29,000 trips on RideChoice;
•
Awarded $7.3 million in federal grants for use on two transportation projects (Frye Road Protected Bike
Lanes and Alley Paving Phase II);
•
Completed 3 sessions of internship partnership with Chandler-Gilbert Community College (CGCC),
allowing 57 interns to work within various city departments, and city was awarded the CGCC FY 2023-24
League of Innovation Award for the partnership;
•
Implemented a new integrated benefits and wellness platform for employee and retirees;
•
The Chandler Center for the Arts (CCA) served over 155,000 people and continued its commitment to
diverse and inclusive programming with over 50 nonprofit and cultural institutions utilizing CCA for their
activities.
•
The Vision Gallery hosted eighty-five free activities, wrapped nine utility boxes, and brought additional
public art to the community at Fire Station 2 and Chandler Center for the Arts, and was recognized as
one of the ten best art galleries in metro Phoenix;
•
Downtown Redevelopment assisted with the opening of nine new concepts including two additional
multifamily developments;
•
Completed Tumbleweed renovations to the Tennis Center locker rooms, began construction of the
Tumbleweed Recreation Center expansion in January 2024, Tumbleweed Park Diamond Field project,
and design of the Tumbleweed Park Pickleball Facility;
4
•
Completed the remodel of Mesquite Groves Aquatic Center, installation of a new playground at Harris
Park, landscape enhancements to Jackrabbit Park, refreshed Sunset Park’s playground and landscape,
introduced a new StoryWalk and musical garden at Sunset Library, installed engineered wood fiber
safety surfacing at 17 playgrounds, and converted 21,000 sq. foot of natural turf to water-conserving
artificial turf at Police headquarters and City Courts building;
•
Chandler Parks Division received a grant from the US Forest Service. The project is a match-waived
$767,000 reimbursable grant over five years;
•
Implemented agreement to become a Certified Autism Center, training all staff in serving guests with
varying sensory needs. Achieved certification in April 2024;
•
Issued over 3,400 building permits for over $830 million in construction valuation in calendar year 2023
and conducted 11,769 building inspections;
•
Created Silk Stocking Historic Preservation District and Historic Preservation District zoning overlay;
•
Awarded 6th place nationally (population 250,000-499,000) by Digital Cities Survey for leveraging
technology in cybersecurity, transparency, privacy, equity, & addressing urban challenges;
•
Implemented automated scanning for security vulnerabilities in software, applications, OS, & network
devices. Introduced multi-factor authentication (MFA), to prevent unauthorized access;
•
The Public Housing Youth Program continues to be a Book Rich Environment PHA serving approximately
500 youth at our sites and providing over 2,000 books, and with the approval of the Villas on McQueen
project, the Public Housing Authority implemented the first phase of the plan to redevelop existing
public housing units;
•
The City of Chandler Family Self Sufficiency program is the 2nd highest program in the state of Arizona
to have the most participants, the current total being 134, and was able to graduate 15 families;
•
Allocated $2,301,051 of General Funds to support 49 nonprofit organizations providing human services
to residents;
•
Housing Choice Voucher (HCV) staff have worked diligently to increase utilization of the HCV program
with an average rate of 96%, and effectively managed Emergency Housing Voucher, Tenant Based Rental
Assistance, Veterans Affairs Supportive Housing voucher programs and provided support services with
housing stability team for a 99% utilization rate;
•
Assisted approximately 1,500 residents in crisis in connecting to resources for rent, utilities, food, and
other basic needs services, and provided outreach and engagement services, emergency shelter,
recovery services, and permanent housing to households experiencing homelessness;
•
Provided housing stability services including housing location and intensive case management to
residents transitioning from homelessness and housing instability to stable housing for over 100
households;
•
The Fire Department responded to over 29,000 emergency incidents;
•
Completed the rebuild of Fire Station 282 which will provide an additional response unit in the city and
will address high call volume demand;
•
Began the fifth re-accreditation process through the Center for Public Safety Excellence (CPSE). When
successful, it will ensure the Chandler Fire Department will maintain accredited agency status for 30
years, and received accreditation status for the Chandler Fire Department Paramedic Academy from the
Commission on Accreditation of Allied Health Education Programs (CAAHEP);
•
Received American Public Works Association & Arizona Department of Transportation Re-certification;
•
Treated and delivered 21.4 billion gallons (BG) of potable drinking water & treated and reclaimed 9.8BG
of Wastewater, 7.9BG of which were reused by our customers for irrigation and cooling;
5
•
Provided 839 residential water audit and high-water use checks, 87 landscape consultations and 168
smart controller conversions for a total water savings of over 57.4M gallons;
•
Awarded over $5.6M in WIFA grant funding to support new water conservation incentive programs, and
developed a new Water Efficiency Program for businesses with high water use and completed 14
evaluations and provided owners and facility managers with “Water Efficiency Strategies” workshop;
•
Completed 117 miles of asphalt repaving, surface seal, and slurry treatments & completed ADA
upgrades to 566 sidewalk/driveway locations and 717 corner ramps, and completed Chandler Heights
(McQueen Rd to Gilbert Rd) and Ocotillo Rd (Gilbert Rd to 148th St) improvements;
•
Completed the conversion of 28,500 streetlights to LED and control nodes through the LED Conversion
Program;
•
Developed a new grass removal incentive program for large landscape customers, resulting in over
60,500 sq ft of grass removed and an estimated 3M gallons per year saved;
•
The Volunteers in Policing program donated 8,123 hours valued at $227,038 in calendar year 2023,
satisfied $287,467 in warrants, and launched a therapy dog program, Paws for Police, to visit all
department facilities to enhance officer and civilian wellness;
•
Following an onsite assessment, the Forensic Services Section laboratory was re-accredited to the
International Organization for Standards (ISO) for forensic testing and calibration. They were also
awarded the prestigious Foresight Maximus Award for the 6th consecutive year recognizing top
performing laboratories around the world;
•
Opened a Real Time Crime Center, centralizing technology into a “single pane of glass.” Current
integrations include advanced mapping, access to Chandler Unified School District camera systems,
license plate reader technology, gunshot detection deployment, drone video feeds, and officer location;
•
Part I crime decreased to a historic low of 15.7 per 1,000 population making 2023 the safest year in
Chandler’s history in over 30 years.
FINANCIAL INFORMATION
Internal Control Structure
Management of the city is responsible for establishing and maintaining an internal control structure designed to
ensure that the assets of the city are protected from loss, theft, or misuse and to ensure that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The
internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by
management.
As a recipient of federal, state, and county financial assistance, the city is also responsible for ensuring that an
adequate internal control structure is in place to ensure and document compliance with applicable laws and
regulations related to these programs. This internal control structure is subject to periodic evaluation by
management and various other city staff, as needed.
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.
6
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 2023-24, $1.66 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, 2023, marking the forty-second consecutive year the city has
received the GFOA Certificate of Achievement. The Certificate of Achievement is a prestigious national award
recognizing conformance with the highest standards for preparation of a municipal government financial
report.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and
efficiently organized Annual Comprehensive Financial Report whose contents conform to program standards.
Such reports must satisfy both GAAP and applicable legal requirements.
Additionally, the city was also awarded the Distinguished Budget Presentation Award for the fiscal year
beginning July 1, 2023 from the GFOA, marking the thirty-sixth 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.
7
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 Director; Julie Goucher, Accounting Senior Manager; Tracy Schmidt, Accounting Supervisor; Lina Alam,
Accounting Supervisor; Debbie Motta, Senior Accountant; Joanne Chang, Senior Accountant; and Sara Story,
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
8
Kevin Hartke, Mayor
OD, Harris, Vice Mayor
Christine Ellis, Councilmember
Angel Encinas, Councilmember
Matt Orlando, Councilmember
Jane Poston, Councilmember
Mark Stewart, Councilmember
Executive Staff
Joshua H. Wright, City Manager
Tadd Wille, Assistant City Manager
Dawn Lang, Deputy City Manager I CFO
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
Kevin Snyder, 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, Deputy City Manager I CFO as Management Services Director
Leah Powell, Neighborhood Resources Director
Bryan Chapman, Chief of Police
John Knudson, Public Works & Utilities Director
CITY OF CHANDLER, ARIZONA
ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2024
9
10
11
12
A clear vision, strong reserves,
prudent spending and sound
financial management have enabled
Chandler to deliver a balanced
budget and maintain AAA bond
ratings with 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
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, 2024, and
the related notes to the financial statements, which collectively comprise the City’s basic financial
statements as listed in the table of contents.
In our opinion, the 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, as of June 30, 2024, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America 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, and to meet our other ethical
responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as
a going concern for one year beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter
13
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, as listed in the table of contents, be presented to supplement
the basic financial statements. Such information is the responsibility of management and, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
14
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 20, 2024, 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 20, 2024
15
16
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
17
18
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, 2024. 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 2024 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 $1.81 billion (net position). This represents an
increase of $110.9 million from the prior year. Factors that have contributed to the increase in net
position are increases in cash and investments due to favorable market conditions (although inflation
continues to impact spending), increases in capital assets due to capital projects placed in service and
offset by an increase in long term liabilities due to bond issuances during the fiscal year. Of this amount,
$434.8 million (unrestricted net position) may be used to meet the city’s obligations to residents and
creditors. However, $60.1 million is invested in a joint venture with the Town of Gilbert for the San Tan
Vista Water Treatment Plant, which decreased $4.6 million from the prior year, and is not available for
obligations.
•
At June 30, 2024, the city’s governmental funds reported combined ending fund balances of $551.8
million; an increase of $66.6 million in comparison with the prior year primarily due to increases in state
shared revenue collection and increased investment earnings.
•
Approximately 54.2 percent of the total combined fund balance amount, $299.1 million, is available for
spending at the city’s discretion (assigned or unassigned).
•
At June 30, 2024, total fund balance for the general fund was $319.0 million which represents an increase
of $3.0 million from the prior year; again this is primarily due to increases in state shared revenues and
increased investment earnings.
•
General revenues from governmental activities accounted for $437.4 million, or 80.5 percent of all
revenues from governmental activities as opposed to 75.9 percent in the prior year. Program specific
revenues in the form of charges for services and grants and contributions accounted for $106.2 million
or 19.5 percent of total governmental activity revenues, as opposed to 24.1 percent in the prior year. The
city had $183.9 million of program revenues ($157.9 million in the prior year) and $15.0 million in general
revenues and transfers ($19.7 million in the prior year) related to business-type activities.
•
At June 30, 2024, the city’s proprietary funds reported combined total net position of $819.2 million as
compared to $796.7 million in the prior year; an increase for the current year of $22.5 million. The
increase in net position is primarily driven by an increase in revenue from the prior year as a result of a
increased service fee revenues, investment earnings and developer capital contributions, combined with
keeping expenses in check year over year. This results in a total unrestricted net position of $264.1
million, of which $150.8 million of the unrestricted net position is in the water fund.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the city’s basic financial statements. The
city’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund
financial statements, and 3) notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide
readers with a broad overview of the city’s finances in a manner similar to a private-sector business.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
19
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 and general obligation bonds debt service fund, which are
considered to be major funds. Data from the other 18 governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is provided
in the form of combining statements and schedules in the financial section of this report.
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.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
20
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 $1.81 billion
as of June 30, 2024. This reflects continued strong operations in governmental activities, increased revenues
from interest income and state shared revenues, and careful monitoring of expenses in governmental activities.
A significant portion of the city’s net position (60.6 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 residents; 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 (15.4 percent) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position (24.0 percent) includes
$60.1 million which is invested in a joint venture with the Town of Gilbert for the San Tan Vista Water Treatment
Plant that may not be used to meet the city’s obligations to residents and creditors.
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.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
21
The following table presents a condensed statement of the city's net position for the fiscal years ended June 30,
2024 and 2023.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2024
2023
2024
2023
2024
2023
Current assets
$ 698,413,961
$ 629,040,493
$ 292,975,380
$ 270,218,712
$ 991,389,341
$ 899,259,205
Capital assets, net
763,039,535
732,098,852
836,174,421
783,391,742
1,599,213,956
1,515,490,594
Long-term assets
15,088,409
8,157,859
64,163,639
68,887,118
79,252,048
77,044,977
Total assets
1,476,541,905
1,369,297,204
1,193,313,440
1,122,497,572
2,669,855,345
2,491,794,776
Total deferred outflows of resources
170,056,278
143,138,970
10,114,194
11,931,414
180,170,472
155,070,384
Total assets and deferred
outflows of resources
1,646,598,183
1,512,436,174
1,203,427,634
1,134,428,986
2,850,025,817
2,646,865,160
Current liabilities
101,765,657
104,376,853
45,875,498
47,839,159
147,641,155
152,216,012
Long-term liabilities
526,235,366
475,590,860
331,653,355
282,418,414
857,888,721
758,009,274
Total liabilities
628,001,023
579,967,713
377,528,853
330,257,573
1,005,529,876
910,225,286
Total deferred inflows of resources
24,198,429
26,440,337
6,690,360
7,517,927
30,888,789
33,958,264
Total liabilities and deferred
inflows of resources
652,199,452
606,408,050
384,219,213
337,775,500
1,036,418,665
944,183,550
Net position:
Net investment in capital assets
$ 572,110,660
555,568,147
526,875,770
514,595,066
1,098,986,430
1,070,163,213
Restricted
251,642,729
182,068,932
28,190,997
31,119,667
279,833,726
213,188,599
Unrestricted
170,645,342
168,391,045
264,141,654
250,938,753
434,786,996
419,329,798
Total net position
$ 994,398,731
$ 906,028,124
$ 819,208,421
$ 796,653,486
$ 1,813,607,152 $ 1,702,681,610
$ (Millions)
Governmental Activities
Business-type Activities
$
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Total assets and deferred
outflows of resources
Total liabilities and deferred
inflows of resources
Total net position
Changes in net position. The city’s total revenues for the fiscal year ended June 30, 2024 were $741.4 million.
The total cost of all programs and services was $630.4 million, which results in an increase in net position of
$110.9 million. The following table presents a summary of the changes in net position for the fiscal years ended
June 30, 2024 and 2023.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
22
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2024
2023
2024
2023
2024
2023
Revenues:
Program revenues
Charges for services
$ 76,561,603
$ 80,733,033
$ 143,099,880
$ 135,318,941
$ 219,661,483
$ 216,051,974
Operating grants and contributions
13,304,466
26,999,694
12,460,952
9,124,544
25,765,418
36,124,238
Capital grants and contributions
16,299,587
16,237,742
28,318,640
13,482,347
44,618,227
29,720,089
General revenues
Property taxes
42,508,632
41,363,544
—
—
42,508,632
41,363,544
Sales taxes
208,766,241
210,027,766
23,363
22,063
208,789,604
210,049,829
Highway user taxes
21,430,580
20,835,558
—
—
21,430,580
20,835,558
Other taxes
—
201,799
—
—
—
201,799
Franchise Fees
3,691,281
3,838,738
—
—
3,691,281
3,838,738
State shared revenues
133,384,945
108,187,240
—
—
133,384,945
108,187,240
Investment income
25,508,647
5,427,207
10,854,527
3,832,676
36,363,174
9,259,883
Miscellaneous
2,109,152
1,380,596
3,033,563
15,051,582
5,142,715
16,432,178
Gain (loss) on sale of capital assets
—
—
4,401
—
4,401
—
Total revenues
543,565,134
515,232,917
197,795,326
176,832,153
741,360,460
692,065,070
Expenses:
General government
258,864,611
195,086,875
—
—
258,864,611
195,086,875
Public safety
85,894,534
95,958,948
—
—
85,894,534
95,958,948
Transportation and development
59,823,718
60,990,970
—
—
59,823,718
60,990,970
Community services
43,606,131
45,928,371
—
—
43,606,131
45,928,371
Interest and fiscal charges
5,935,673
5,292,655
—
—
5,935,673
5,292,655
Water
—
—
69,667,817
75,887,686
69,667,817
75,887,686
Wastewater
—
—
70,135,806
63,849,518
70,135,806
63,849,518
Solid waste
—
—
19,412,684
17,278,664
19,412,684
17,278,664
Airport
—
—
2,873,143
2,209,135
2,873,143
2,209,135
Chandler housing authority
—
—
14,220,801
10,877,168
14,220,801
10,877,168
Total expenses
454,124,667
403,257,819
176,310,251
170,102,171
630,434,918
573,359,990
Excess (deficiency) before transfers
89,440,467
111,975,098
21,485,075
6,729,982
110,925,542
118,705,080
Transfers in (out)
(1,069,860)
(761,263)
1,069,860
761,263
—
—
Change in net position
88,370,607
111,213,835
22,554,935
7,491,245
110,925,542
118,705,080
Beginning net position
906,028,124
794,814,289
796,653,486
789,162,241
1,702,681,610
1,583,976,530
Ending net position
$ 994,398,731
$ 906,028,124
$ 819,208,421
$ 796,653,486
$ 1,813,607,152
$ 1,702,681,610
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
23
Revenue Sources - Fiscal Year 2024
29.64%
3.48%
6.02% 5.73%
28.16%
2.89%
0.50%
17.99%
4.91%
0.69%
Charges for services
Operating grants and contributions
Capital grants and contributions
Property taxes
Sales taxes
Highway user fees
Franchise fees
State shared revenues
Investment income
Miscellaneous
Percent Of Total Revenue
Functional Expenses - Fiscal Year 2024
41.05%
13.62%
9.49%
6.92%
0.94%
11.05%11.12%
3.08%
0.46% 2.26%
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, 2024
24
As evidenced in the previous graph, the largest financing source for the city is charges for services at 29.64
percent, associated with the user fees (i.e., water, wastewater) and general government charges for services
such as permits and recreation/facility uses. Sales taxes and state shared revenues (i.e., sales tax, urban revenue
sharing) also comprise a significant portion of the city’s revenues at 28.16 percent and 17.99 percent,
respectively, of the total revenues with capital grants and contributions for an additional 6.02 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 41.05 percent of the total functional
expenses of the city. The next largest users of resources are public safety and wastewater at 13.62 percent and
11.12 percent, respectively, with water accounting for 11.05 percent of the city’s total expenses.
Governmental activities. The increase in governmental net position totaled $88.4 million for the year ended
June 30, 2024 compared with an increase of $111.2 million in the prior year. This increase is primarily in the state
shared revenues and interest earnings.
Business-type activities. The increase in business-type net position totaled $22.6 million for the year ended
June 30, 2024 compared with an increase of $7.5 million in the prior year. This increase primarily the result of
increases in service fee income, interest earnings and increased capital contributions.
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 $551.8 million, an increase of $66.6 million in
comparison with the prior year increase of $12.4 million. Approximately $299.1 million (54.2 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 $302.1 million represents a decrease of $3.0
million.
The remainder of the fund balance comprising of nonspendable and restricted balances amounts to $252.7
million (45.8 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 $183.1 million
represents an increase of $69.6 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 $308.1 million, while total fund balance reached $319.0
million. As a measure of the general fund’s liquidity, it may be useful to compare both assigned and unassigned
fund balance and total fund balance to total fund expenditures. Assigned and unassigned fund balance
represents 0.88 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 $3.0
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
25
million during the current fiscal year primarily due to increases in state shared revenues and interest earnings,
which have come in stronger than anticipated due to the quick rising of interest rates as the Federal Reserve
Board has sought to tame inflation. This has led to increased returns on the cities portfolio, helping to offset the
rising cost of goods and services used to provide services to city residents.
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 $0.8 million during the current fiscal year. The decrease is due to debt service payments made
during the fiscal year based on the defined debt service payment schedules having increased over prior fiscal
years and being offset by interfund transfers of $7.4 million due to system development fees debt repayment.
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 $819.2 million
and $44.3 million, respectively, compared to $796.7 million and $36.5 million in the prior fiscal year. The
enterprise funds increase is primarily due to increases in service fee income, interest earnings and capital
contributions.
The enterprise funds net position is 32.2 percent unrestricted compared to 31.5 percent in the prior fiscal year.
Unrestricted net position of the water fund at the end of the year amounted to $150.8 million, and those for the
wastewater fund amounted to $87.3 million, compared to $128.0 million and $99.8 million in the prior fiscal
year. The balances will support planned utility infrastructure and the related debt service.
BUDGETARY HIGHLIGHTS
For the 2023-24 budget year, the city continued to engage in fiscally responsible budgeting practices, adhered to
financial policies, and used conservative budgeting while resetting anticipated revenues based on a growing
economic trend. With a continued conservative mindset, the City Council adopted a balanced budget for fiscal
year 2023-24 that allowed for needed improved service levels in many areas adding 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. The city’s
major sources of General Fund revenues include Local Sales Tax (Transaction Privilege Tax-TPT), State Shared
TPT Revenue Urban Revenue Sharing (State Shared Income Tax).
The city projects current General Fund revenues and determines what portion can be sustained as ongoing
revenues to support ongoing operating expenditures. Ongoing current revenues are not expected to exceed
74% of total estimated revenues for fiscal year 2023-24, with 26% treated as one-time revenues. Each revenue is
reviewed for trends, development spikes, new economic additions, and economic events with temporary
impacts to determine ongoing levels each year that are available to support ongoing expenditures.
The fiscal year 2023-24 adopted budget increased the prior fiscal year Budget Stabilization Reserve of $10 million
to $20 million. This unappropriated reserve provides the opportunity to balance the budget for no more than
three consecutive years, until permanent ongoing reductions can be implemented, should State legislation,
unexpected decreases in property values, or other economic fluctuations cause operating revenues to decrease
more than anticipated.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
26
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. As of June 30, 2024, the city had invested $1.1 billion in capital assets net of related debt,
including buildings, system improvements, vehicles, machinery and equipment, subscription based Information
Technology (IT) arrangements, water rights and infrastructure assets. Total depreciation/amortization expense
for the year was $100.9 million.
During fiscal year 2023-24, the city achieved significant progress in advancing numerous capital improvement
projects, completing several key initiatives and concluding several noteworthy capital improvement projects.
Among the accomplishments are the completion of the Downtown Oregon Street parking structure ($32 million),
Cooper Road improvements ($23 million), new athletic fields at Tumbleweed Park ($22.7 million) and a newly
rebuilt Fire Station #2 ($10.8 million). Another key achievement was the $17 million utility relocation for the
future Salt River Project (SRP) 230kV transmission to Intel, which includes water and sewer pipeline adjustments.
Ongoing projects include the rehabilitation of Taxiway C, the southernmost parallel taxiway, addressing
extensive surface cracking. Additionally, the city has allocated funds for infrastructure improvements, including
the McClintock Drive and Kyrene Road bike lanes ($6 million), Alma School Road improvements ($11 million), and
the Chandler Heights utility relocation, which will feature a reclaimed water interconnect facility, estimated to
cost $45 million total.
The following table presents capital asset balances net of accumulated depreciation and amortization for the
fiscal years, ended June 30, 2024 and 2023:
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2024
2023
2024
2023
2024
2023
Land
$ 101,748,183
$
89,380,379
$
57,328,151
$
57,189,731
$ 159,076,334
$ 146,570,110
Land improvements
—
—
454,766
200,557
454,766
200,557
Infrastructure
319,459,158
292,559,802
—
—
319,459,158
292,559,802
System improvements
—
—
538,467,152
547,513,756
538,467,152
547,513,756
Buildings and improvements
193,287,979
144,530,547
6,275,727
6,912,776
199,563,706
151,443,323
Subscription based IT arrangements
5,064,643
946,490
—
—
5,064,643
946,490
Vehicles, machinery
and equipment
26,934,819
17,549,850
3,925,327
3,365,093
30,860,146
20,914,943
Water rights
—
—
41,360,140
41,788,743
41,360,140
41,788,743
Construction in progress
116,544,753
187,131,784
188,363,158
126,421,086
304,907,911
313,552,870
Total
$ 763,039,535
$ 732,098,852
$ 836,174,421
$ 783,391,742
$ 1,599,213,956 $ 1,515,490,594
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, 2024
27
Long-term debt. At the end of the current fiscal year, the city had total bonded debt outstanding of $548.9
million in long-term debt outstanding with $52.1 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, 2024 and 2023.
Governmental
Business-type
Total
Activities
Activities
(Primary Govt.)
2024
2023
2024
2023
2024
2023
General obligation bonds
$ 249,009,159
$ 176,702,193
$
49,480,841
$
59,712,807
$ 298,490,000
$ 236,415,000
Excise tax revenue obligations
—
—
250,405,000
202,930,000
250,405,000
202,930,000
Issuance premiums
22,348,687
12,825,886
19,965,864
12,344,938
42,314,551
25,170,824
Total bonds & obligations payable
$ 271,357,846
$ 189,528,079
$ 319,851,705
$ 274,987,745
$ 591,209,551
$ 464,515,824
Claims payable
23,813,895
19,771,275
—
—
23,813,895
19,771,275
Arbitrage liability
189,980
—
—
—
189,980
—
Subscription based IT arrangements
4,579,664
482,119
—
—
4,579,664
482,119
Landfill closure/post closure
—
—
4,340,000
4,340,000
4,340,000
4,340,000
Compensated absences
15,362,525
14,117,796
1,555,830
1,421,206
16,918,355
15,539,002
Net pension liability
199,488,891
237,933,742
19,344,718
19,295,830
218,833,609
257,229,572
Post-employment benefits
68,499,616
64,928,042
8,553,638
8,084,000
77,053,254
73,012,042
Total long-term liabilities
$ 583,292,417
$ 526,761,053
$ 353,645,891
$ 308,128,781
$ 936,938,308
$ 834,889,834
During fiscal year 2023-24, the city issued $106.4 million in general obligations bonds and $65.0 million in excise
tax revenue obligations to fund various capital projects. The city's total long-term liabilities increased by $102.0
million during the current fiscal year. The city reported a decrease in pension liability of $38.4 million, primarily
due to lump sum payments made to the Public Safety Personnel Retirement System (PSPRS) in fiscal year 2022-23
($50 million) and 2023-24 ($73 million), an increase in post-employment benefits of $4.0 million and a net
decrease of $109.6 million in bonds due to the impact of 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 $1.5 billion. The city
has $310.6 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 $442.9 million. The city has
$8.9 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 (ETROs)
were rated Aaa from Moody’s Investor Services (increased during fiscal year 2023-24; the only city in Arizona to
hold Aaa on ETROs), and AAA from Standard & Poor’s and AAA from Fitch.
Additional information on the city’s long-term debt can be found in Note 5 of the financial statements.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
28
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Adopting a balanced budget for the next fiscal year (2024-25) required the combined efforts of residents, the city
Council, Executive Leadership team, and staff members throughout the organization. As the financial impacts
anticipated during the fiscal year 2023-24 budget year were stronger than anticipated, additional thought and
measured change was incorporated into the fiscal year 2024-25 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. This year again included diligent monitoring of legislative bills that could
impact our ongoing revenues, and we included the first half of the impacts to the legislative removal of our
ability to tax residential rental transactions beginning in January 2025. Also, a focused review of expenditure
impacts that could potentially cause higher costs if not contained was accomplished. This included the Public
Safety Personnel Retirement System (PSPRS) rates and any remaining unfunded liability, retirement vacancies
which have been more difficult to fill in some cases, 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, the city is still conservative in its approach and continues to look for
efficiencies to manage expenditure growth.
The budget decreased from $1.656 billion in fiscal year 2023-24 to $1.629 billion (a decrease of 1.6 percent) in
fiscal year 2024-25. The bulk of the change in budget stems from the operating budget, which was reduced 5.9%
with a major contributor being the reduction of the amount being paid in the prior year for the public safety
retirement unfunded liability pay off. With that reduction of appropriation, the total department operating
budget is decreasing from $563 million to $527 million. The total new capital appropriation is decreasing from
$358 million to $239 million. There is also an additional $637 million in capital carryforward for projects started
but not yet complete as the city continues a healthy capital improvement program to ensure existing
infrastructure is well maintained and the needs of residents can be met. With a 5.3 percent increase in Limited
Property Values (including .6 percent of that from new growth), the City Council chose to reduce the primary
property tax rate from $0.2226 to $0.2126 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 fiscal year 2024-25 Budget does not include the sale of bonds, as the city sells bonds every other year.
Additionally, the City Council maintained the General Fund operating contingency at 15 percent of General Fund
ongoing 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 an ongoing focus on managing pension
costs, and continues to plan for additional funding the ensure the maintenance of the "paid-off" status of the
unfunded liability. Chandler remains in a solid financial position to continue its tradition of strong fiscal
management as reflected by its AAA GO and ETRO bond ratings with all three rating agencies which were
reaffirmed in November of 2023.
CONTACTING THE CITY’S FINANCE OFFICE
This financial report is designed to provide our residents, 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) 782-2250.
CITY OF CHANDLER, ARIZONA
Management’s Discussion and Analysis (MD&A)
Year Ended June 30, 2024
29
30
BASIC FINANCIAL STATEMENTS
31
City of Chandler
Statement of Net Position
June 30, 2024
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
$
655,026,096
$
269,061,947
$
924,088,043
$
—
$
—
$
—
Cash and investments
—
—
—
1,321,873
6,629,310
72,228
Accounts receivable
2,668,029
19,279,358
21,947,387
2,000
83,870
1,721
Privilege license tax receivable
26,067,829
—
26,067,829
—
—
—
Property taxes receivable
522,785
—
522,785
—
—
—
Due from other governments
6,136,695
1,871,954
8,008,649
—
—
—
Inventories
1,055,004
65,675
1,120,679
—
—
17,741
Prepaid items
—
423,885
423,885
—
78,066
—
Accrued interest receivable
3,327,580
1,352,622
4,680,202
—
63,600
—
Opioid settlement receivable
497,908
—
497,908
—
—
—
Notes receivable
417,320
—
417,320
—
—
—
Other receivables
2,694,715
919,939
3,614,654
—
—
—
Total current assets
698,413,961
292,975,380
991,389,341
1,323,873
6,854,846
91,690
Long-term assets:
Cash and investments - restricted
—
—
—
—
1,433,255
276,286
Leases receivable
6,339,030
3,876,162
10,215,192
—
—
—
Opioid settlement receivable
4,997,694
—
4,997,694
—
—
—
Notes receivable
—
154,750
154,750
—
—
—
Investment in joint venture
—
60,132,727
60,132,727
—
—
—
OPEB asset
3,751,685
—
3,751,685
—
—
—
Capital assets:
Non-depreciable
218,292,936
245,691,309
463,984,245
—
—
—
Depreciable/amortizable, net
544,746,599
590,483,112
1,135,229,711
—
5,926
—
Total capital assets
763,039,535
836,174,421
1,599,213,956
—
5,926
—
Total long-term assets
778,127,944
900,338,060
1,678,466,004
—
1,439,181
276,286
Total assets
1,476,541,905
1,193,313,440
2,669,855,345
1,323,873
8,294,027
367,976
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
166,335,692
5,059,250
171,394,942
—
—
—
Deferred amounts on refundings
3,720,586
5,054,944
8,775,530
—
—
—
Total deferred outflows of resources
170,056,278
10,114,194
180,170,472
—
—
—
32
LIABILITIES
Current liabilities:
Accounts payable
21,320,439
12,359,253
33,679,692
3,000
89,886
3,076
Accrued payroll
9,106,455
946,765
10,053,220
—
—
—
Trust liabilities and deposits
5,086,511
4,390,085
9,476,596
—
—
—
Accrued interest
5,289,170
5,301,271
10,590,441
—
—
—
Unearned revenue
3,906,031
—
3,906,031
—
1,042,786
150
Customer advances
—
885,588
885,588
—
—
—
Subscription based IT arrangement liability
2,200,163
—
2,200,163
—
—
—
Compensated absences payable
2,584,098
264,528
2,848,626
—
—
—
Bonds payable
36,437,368
21,633,562
58,070,930
—
—
—
Landfill closure and postclosure liability
—
94,446
94,446
—
—
—
Claims and judgements payable
15,835,422
—
15,835,422
—
—
—
Total current liabilities
101,765,657
45,875,498
147,641,155
3,000
1,132,672
3,226
Long-term liabilities:
Arbitrage liability
189,980
—
189,980
—
—
—
Subscription based IT arrangement liability
2,379,501
—
2,379,501
—
—
—
Compensated absences payable
12,778,427
1,291,302
14,069,729
—
—
—
Bonds payable
234,920,478
298,218,143
533,138,621
—
—
—
Net pension liability
199,488,891
19,344,718
218,833,609
—
—
—
OPEB liability
68,499,616
8,553,638
77,053,254
—
—
—
Landfill closure and postclosure liability
—
4,245,554
4,245,554
—
—
—
Claims and judgements payable
7,978,473
—
7,978,473
—
—
—
Total long-term liabilities
526,235,366
331,653,355
857,888,721
—
—
—
Total liabilities
628,001,023
377,528,853
1,005,529,876
3,000
1,132,672
3,226
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
18,380,445
2,930,916
21,311,361
—
—
—
Leases and Public-Private Partnerships (PPPs)
5,817,984
3,759,444
9,577,428
—
—
—
Total deferred inflows of resources
24,198,429
6,690,360
30,888,789
—
—
—
NET POSITION
Net investment in capital assets
572,110,660
526,875,770
1,098,986,430
—
5,926
—
Restricted for:
Transportation and development
146,457,190
—
146,457,190
—
—
—
Capital improvements
22,655,097
—
22,655,097
—
—
—
Community services
70,306,545
—
70,306,545
—
—
—
Community development
484,373
—
484,373
—
—
—
Debt service
1,646,322
28,190,997
29,837,319
—
—
—
OPEB benefits
3,751,685
—
3,751,685
—
—
—
Legal restrictions
6,341,517
—
6,341,517
—
1,433,255
276,286
Total restricted
251,642,729
28,190,997
279,833,726
—
1,433,255
276,286
Unrestricted
170,645,342
264,141,654
434,786,996
1,320,873
5,722,174
88,464
Total net position
$
994,398,731
$
819,208,421
$ 1,813,607,152
$
1,320,873
$
7,161,355
$
364,750
See accompanying Notes to the Financial Statements.
33
City of Chandler
Statement of Activities
For the year ended June 30, 2024
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Function/Programs
Expenses
Services
Contributions
Contributions
Total
Primary government:
Governmental activities:
General government
$ 258,864,611 $ 41,272,767
$
1,914,179
$
9,406,454
$ 52,593,400
Public safety
85,894,534
6,804,298
7,389,211
—
14,193,509
Transportation and development
59,823,718
12,947,005
2,666,794
6,003,951
21,617,750
Community services
43,606,131
15,537,533
1,334,282
889,182
17,760,997
Interest on long-term debt
5,935,673
—
—
—
—
Total governmental activities
454,124,667
76,561,603
13,304,466
16,299,587
106,165,656
Business-type activities:
Water
69,667,817
57,606,344
—
2,532,078
60,138,422
Wastewater
70,135,806
63,309,459
—
25,786,562
89,096,021
Solid waste
19,412,684
19,256,732
—
—
19,256,732
Airport
2,873,143
1,174,463
—
—
1,174,463
Chandler housing authority
14,220,801
1,752,882
12,460,952
—
14,213,834
Total business-type activities
176,310,251
143,099,880
12,460,952
28,318,640
183,879,472
Total primary government
$ 630,434,918 $ 219,661,483 $ 25,765,418
$ 44,618,227
$ 290,045,128
Component units
Chandler Industrial Development
Authority
$
17,051
$
144,540
$
—
$
—
$
144,540
Chandler Cultural Foundation
2,751,186
2,794,653
401,057
—
3,195,710
Chandler Museum Foundation
43,493
26,723
3,166
—
29,889
Total component units
$ 2,811,730
$ 2,965,916
$
404,223
$
—
$ 3,370,139
General revenues and transfers:
General revenues:
Property taxes, levied for general purposes
Sales taxes
Highway user taxes
Franchise fees
State shared revenues (unrestricted)
Investment income
Miscellaneous
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year
Net position - end of year
See accompanying Notes to the Financial Statements.
34
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
$
(206,271,211) $
—
$
(206,271,211) $
—
$
—
$
—
(71,701,025)
—
(71,701,025)
—
—
—
(38,205,968)
—
(38,205,968)
—
—
—
(25,845,134)
—
(25,845,134)
—
—
—
(5,935,673)
—
(5,935,673)
—
—
—
(347,959,011)
—
(347,959,011)
—
—
—
—
(9,529,395)
(9,529,395)
—
—
—
—
18,960,215
18,960,215
—
—
—
—
(155,952)
(155,952)
—
—
—
—
(1,698,680)
(1,698,680)
—
—
—
—
(6,967)
(6,967)
—
—
—
—
7,569,221
7,569,221
—
—
—
(347,959,011)
7,569,221
(340,389,790)
—
—
—
—
—
—
127,489
—
—
—
—
—
—
444,524
—
—
—
—
—
—
(13,604)
—
—
—
127,489
444,524
(13,604)
42,508,632
—
42,508,632
—
—
—
208,766,241
23,363
208,789,604
—
—
—
21,430,580
—
21,430,580
—
—
—
3,691,281
—
3,691,281
—
—
—
133,384,945
—
133,384,945
—
—
—
25,508,647
10,854,527
36,363,174
48,156
352,330
3,342
2,109,152
3,033,563
5,142,715
—
—
—
—
4,401
4,401
—
—
—
(1,069,860)
1,069,860
—
—
—
—
436,329,618
14,985,714
451,315,332
48,156
352,330
3,342
88,370,607
22,554,935
110,925,542
175,645
796,854
(10,262)
906,028,124
796,653,486
1,702,681,610
1,145,228
6,364,501
375,012
$
994,398,731
$
819,208,421
$
1,813,607,152
$
1,320,873
$
7,161,355
$
364,750
35
City of Chandler
Balance Sheet -
Governmental Funds
June 30, 2024
Major Funds
General
Obligation
Other
Bonds
Governmental
General
Debt Service
Funds
Total
ASSETS
Equity in pooled cash and investments
$
291,202,363
$
41,709,194
$
254,026,255
$ 586,937,812
Accounts receivable
2,603,006
—
64,413
2,667,419
Privilege license tax receivable
26,067,829
—
—
26,067,829
Property taxes receivable
113,291
409,494
—
522,785
Advances to other funds
5,630,833
—
—
5,630,833
Due from other funds
6,093,201
—
—
6,093,201
Due from other governments
1,865,938
—
4,270,757
6,136,695
Inventories
1,055,004
—
—
1,055,004
Accrued interest receivable
1,670,395
95,783
1,069,560
2,835,738
Opioid settlement receivable
5,495,602
—
—
5,495,602
Notes receivable
—
—
417,320
417,320
Leases and PPP receivable
6,339,030
—
—
6,339,030
Other receivables
1,882,700
—
812,015
2,694,715
Total assets
$
350,019,192
$
42,214,471
$
260,660,320
$ 652,893,983
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
5,541,200
$
1,690,947
$
13,888,146
$ 21,120,293
Accrued payroll
8,710,372
—
317,538
9,027,910
Trust liabilities and deposits
4,662,954
—
423,557
5,086,511
Accrued interest
—
5,289,170
—
5,289,170
Due to other funds
—
—
6,093,201
6,093,201
Advances from other funds
—
—
5,630,833
5,630,833
Unearned revenue
756,656
—
3,137,969
3,894,625
Arbitrage liability
—
189,980
—
189,980
Bonds payable
—
33,101,936
—
33,101,936
Total liabilities
19,671,182
40,272,033
29,491,244
89,434,459
Deferred inflows of resources
Unavailable revenues - property taxes
84,154
296,116
—
380,270
Leases and Public - Private Partnerships (PPPs)
5,817,984
—
—
5,817,984
Unavailable revenues - settlements
5,495,602
—
—
5,495,602
Total deferred inflows of resources
11,397,740
296,116
—
11,693,856
Fund balances:
Nonspendable
1,055,004
—
—
1,055,004
Restricted
9,786,830
1,646,322
240,209,577
251,642,729
Assigned
249,554,469
—
514,194
250,068,663
Unassigned
58,553,967
—
(9,554,695)
48,999,272
Total fund balances
318,950,270
1,646,322
231,169,076
551,765,668
Total liabilities, deferred inflows and fund balances
$
350,019,192
$
42,214,471
$
260,660,320
$ 652,893,983
See accompanying Notes to the Financial Statements.
36
City of Chandler
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Position
June 30, 2024
Total Fund Balances - Total Governmental Funds
$ 551,765,668
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
$ 218,292,936
Depreciable/Amortizable buildings, vehicles, machinery and equipment and
infrastructure, net
544,746,599
Total capital assets
763,039,535
OPEB assets are not current financial resources and, therefore, are not
reported in the Governmental Funds Balance Sheet.
3,751,685
Certain revenues are not available to pay for current period expenditures and,
therefore, are unavailable in the funds.
5,875,882
Deferred amounts on refundings are not financial resources and, therefore, are
not reported in the funds.
3,720,586
Deferred outflows related to pensions and OPEB are not financial resources
and, therefore, are not reported in the funds.
166,335,692
Deferred inflows related to pensions and OPEB represent a future acquisition
of net position that is not reported in the funds.
(18,380,445)
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.
44,339,301
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 $23,951,328 which are included above, the
long-term liabilities were adjusted as follows:
Bonds payable
(238,255,910)
Net pension liability
(199,488,891)
OPEB liability
(68,499,616)
Subscription based IT arrangement liability
(4,579,664)
Compensated absences
(15,225,092)
Total long-term liabilities
(526,049,173)
Net Position of Governmental Activities
$ 994,398,731
See accompanying Notes to the Financial Statements.
37
City of Chandler
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
For the year ended June 30, 2024
Major Funds
General
Other
Obligation Bonds
Governmental
General
Debt Service
Funds
Total
REVENUES:
Property taxes
$
8,638,574
$
33,811,272
$
—
$
42,449,846
Sales taxes
208,766,241
—
—
208,766,241
Highway user taxes
—
—
21,430,580
21,430,580
Franchise fees
3,691,281
—
—
3,691,281
State shared
133,384,945
—
—
133,384,945
Grants and entitlements
1,256,168
—
23,842,433
25,098,601
System development fees
—
—
2,277,282
2,277,282
Licenses and permits
5,103,244
—
—
5,103,244
Charges for services
27,360,667
—
1,168,191
28,528,858
Fines and forfeitures
4,296,570
—
725,712
5,022,282
Rentals
138,115
—
—
138,115
Contributions
—
—
2,145,416
2,145,416
Interest revenue
11,968,394
694,225
10,087,032
22,749,651
Miscellaneous
356,943
—
1,028,142
1,385,085
Total revenues
404,961,142
34,505,497
62,704,788
502,171,427
EXPENDITURES:
Current:
General government
141,529,560
1,880,927
9,418,069
152,828,556
Public safety
144,984,126
—
5,812,560
150,796,686
Transportation and development
19,081,690
—
22,537,956
41,619,646
Community services
31,692,129
—
2,478,801
34,170,930
Capital outlay
8,932,760
—
114,485,076
123,417,836
Debt service:
Principal
2,104,917
33,101,936
—
35,206,853
Bond issuance costs
—
—
399,177
399,177
Interest and fiscal charges
11,619
7,740,607
—
7,752,226
Total expenditures
348,336,801
42,723,470
155,131,639
546,191,910
Excess (deficiency) of revenues over
(under) expenditures
56,624,341
(8,217,973)
(92,426,851)
(44,020,483)
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
204,412
—
223,751
428,163
Bond premium
—
—
12,299,180
12,299,180
Face amount of bonds issued
—
—
106,415,000
106,415,000
SBITA agreements
6,202,462
—
—
6,202,462
Transfers in
—
7,436,432
46,113,648
53,550,080
Transfers out
(60,014,266)
—
(8,212,234)
(68,226,500)
Total other financing sources (uses)
(53,607,392)
7,436,432
156,839,345
110,668,385
NET CHANGE IN FUND BALANCE
3,016,949
(781,541)
64,412,494
66,647,902
FUND BALANCES:
Beginning of year
315,933,321
2,427,863
166,756,582
485,117,766
End of year
$
318,950,270
$
1,646,322
$
231,169,076
$
551,765,668
See accompanying Notes to the Financial Statements.
38
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, 2024
Net Change in Fund Balances - Total Governmental Funds
$
66,647,902
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.
78,239,136
Expenditures related to the implementation of subscription based IT
arrangements are recorded as an intangible right to use asset on the
government wide statements and amortized over the life of the contract.
146,094
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.
(52,507,727)
Subscription Based IT arrangements amortization expenses do not require
the use of current financial resources and therefore are not reported as
expenditures in governmental funds
(2,230,400)
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
35,206,853
Face amount of bonds issued
(106,415,000)
Bond premium
(12,299,180)
Pension related items
68,941,195
Other post employment benefits related items
668,078
(13,898,054)
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.
1,816,553
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 or expenditures in the governmental funds.
(125,000)
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.
(1,239,853)
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.
2,458,869
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.
1,216,121
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.
7,846,966
Change in Net Position of Governmental Activities
$
88,370,607
See accompanying Notes to the Financial Statements.
39
City of Chandler
Statement of Net Position -
Proprietary Funds
June 30, 2024
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
ASSETS
Current assets:
Equity in pooled cash and investments
$
123,678,984 $
109,584,859 $
35,798,104 $
269,061,947 $
68,088,285
Accounts receivable
8,667,201
8,008,074
2,604,083
19,279,358
610
Due from other governments
—
1,854,571
17,383
1,871,954
—
Inventories
52,702
—
12,973
65,675
—
Prepaid invoices
188,417
141,281
94,187
423,885
Accrued interest receivable
607,385
550,677
194,560
1,352,622
491,842
Other receivables
—
905,949
13,990
919,939
—
Total current assets
133,194,689
121,045,411
38,735,280
292,975,380
68,580,737
Long-term assets:
Notes receivable
—
—
154,750
154,750
—
Leases receivable
—
—
3,876,162
3,876,162
—
Investment in joint venture
60,132,727
—
—
60,132,727
—
Capital assets:
Non-depreciable
46,724,148
169,736,843
29,230,318
245,691,309
—
Depreciable, net
196,244,304
370,237,663
24,001,145
590,483,112
—
Total capital assets
242,968,452
539,974,506
53,231,463
836,174,421
—
Total long-term assets
303,101,179
539,974,506
57,262,375
900,338,060
—
Total assets
436,295,868
661,019,917
95,997,655
1,193,313,440
68,580,737
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan
items
2,441,044
1,477,573
1,140,633
5,059,250
—
Deferred amounts on refundings
2,435,765
2,619,179
—
5,054,944
—
Total deferred outflow of resources
4,876,809
4,096,752
1,140,633
10,114,194
—
40
LIABILITIES
Current liabilities:
Accounts payable
3,994,133
7,155,780
1,209,340
12,359,253
200,156
Accrued payroll
471,206
361,945
113,614
946,765
78,546
Trust liabilities and deposits
2,527,804
673,204
1,189,077
4,390,085
—
Accrued interest
2,598,479
2,702,792
—
5,301,271
—
Unearned revenue
—
—
—
—
11,406
Customer advances
325,092
303,420
257,076
885,588
—
Compensated absences payable
133,562
84,265
46,701
264,528
23,118
Bonds payable
10,207,867
11,425,695
—
21,633,562
—
Landfill closure and postclosure liability
—
—
94,446
94,446
—
Claims and judgements payable
—
—
—
—
15,835,422
Total current liabilities
20,258,143
22,707,101
2,910,254
45,875,498
16,148,648
Long-term liabilities:
Compensated absences payable
660,478
416,691
214,133
1,291,302
114,315
Bonds payable
134,831,381
163,386,762
—
298,218,143
—
Net pension liability
9,780,755
5,358,141
4,205,822
19,344,718
—
OPEB liability
3,887,995
3,070,985
1,594,658
8,553,638
—
Landfill closure and postclosure liability
—
—
4,245,554
4,245,554
—
Claims and judgements payable
—
—
—
—
7,978,473
Total long-term liabilities
149,160,609
172,232,579
10,260,167
331,653,355
8,092,788
Total liabilities
169,418,752
194,939,680
13,170,421
377,528,853
24,241,436
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
1,447,777
633,537
849,602
2,930,916
—
Deferred inflows of leases and PPP
—
—
3,759,444
3,759,444
Total deferred inflow of resources
1,447,777
633,537
4,609,046
6,690,360
—
NET POSITION
Net investment in capital assets
105,863,079
367,781,228
53,231,463
526,875,770
—
Restricted for:
Debt service
13,687,517
14,503,480
—
28,190,997
—
Unrestricted
150,755,552
87,258,744
26,127,358
264,141,654
44,339,301
Total net position
$
270,306,148 $
469,543,452 $
79,358,821 $
819,208,421 $
44,339,301
See accompanying Notes to the Financial Statements.
41
42
City of Chandler
Statement of Revenues, Expenses and Changes in Net Position -
Proprietary Funds
For the year ended June 30, 2024
Other
Governmental
Major Funds
Proprietary
Activities: Internal
Water
Wastewater
Funds
Total
Service Fund
OPERATING REVENUES:
Service fees
$
57,606,344
$
63,309,459
$ 20,431,519
$ 141,347,322
$
111,923
Grants and entitlements
—
—
12,460,952
12,460,952
—
Rentals
—
—
1,752,557
1,752,557
—
Sales taxes
—
—
23,363
23,363
—
Self insurance premiums
—
—
—
—
34,123,731
Miscellaneous
3,482
18,076
472,035
493,593
724,067
Total operating revenues
57,609,826
63,327,535
35,140,426
156,077,787
34,959,721
OPERATING EXPENSES:
General and administrative
3,834,741
3,152,718
1,100,564
8,088,023
—
Personnel services
11,840,002
9,991,614
5,252,823
27,084,439
2,418,541
Contractual services
13,161,379
6,976,527
15,425,571
35,563,477
4,586,427
Commodities
15,549,367
16,325,844
2,983,715
34,858,926
4,614,029
Claims expense
—
—
—
—
33,158,138
Housing assistance payments
—
—
9,600,501
9,600,501
—
Depreciation expense
15,970,711
28,037,517
2,143,454
46,151,682
—
Total operating expenses
60,356,200
64,484,220
36,506,628
161,347,048
44,777,135
OPERATING INCOME (LOSS)
(2,746,374)
(1,156,685)
(1,366,202)
(5,269,261)
(9,817,414)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
3,940,995
5,426,525
1,487,007
10,854,527
2,758,988
Interest and fiscal charges
(4,437,264)
(5,573,259)
—
(10,010,523)
—
Accretion of bond premiums
1,223,475
1,316,497
—
2,539,972
—
Bond issuance costs
(248,035)
(78,327)
—
(326,362)
—
Gain (loss) on disposal of capital assets
(8,000)
—
4,401
(3,599)
—
Equity interest in joint venture
(4,618,318)
—
—
(4,618,318)
—
Total Nonoperating
revenues (expenses)
(4,147,147)
1,091,436
1,491,408
(1,564,303)
2,758,988
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
(6,893,521)
(65,249)
125,206
(6,833,564)
(7,058,426)
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Capital contributions
2,532,078
25,786,562
1,298,832
29,617,472
—
Transfers in
1,388,800
1,325,116
1,116,617
3,830,533
14,935,000
Transfers out
(2,217,890)
(1,691,566)
(150,049)
(4,059,505)
(29,608)
Total capital contributions and transfers
1,702,988
25,420,112
2,265,400
29,388,500
14,905,392
CHANGE IN NET POSITION
(5,190,533)
25,354,863
2,390,606
22,554,936
7,846,966
NET POSITION:
Beginning of year
275,496,681
444,188,589
76,968,215
796,653,485
36,492,335
End of year
$ 270,306,148
$ 469,543,452
$ 79,358,821
$ 819,208,421
$
44,339,301
See accompanying Notes to the Financial Statements.
43
City of Chandler
Statement of Cash Flows -
Proprietary Funds
For the year ended June 30, 2024
Governmental
Other
Activities:
Major Funds
Proprietary
Internal
Water
Wastewater
Funds
Total
Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
56,432,379
$
64,024,916
$
22,612,130
$ 143,069,425
$
34,960,551
Cash received from grantors
—
—
12,443,569
12,443,569
—
Cash payments to suppliers
(33,215,773)
(25,410,052)
(29,196,315)
(87,822,140)
(38,193,864)
Cash payments to employees for services
(11,505,464)
(9,735,452)
(5,098,053)
(26,338,969)
(2,409,874)
Net cash provided (used) by operating activities
11,711,142
28,879,412
761,331
41,351,885
(5,643,187)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
1,388,800
1,325,116
1,116,617
3,830,533
14,935,000
Transfers out
(2,217,890)
(1,691,566)
(150,049)
(4,059,505)
(29,608)
Net cash provided (used) by noncapital financing activities
(829,090)
(366,450)
966,568
(228,972)
14,905,392
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
(26,472,787)
(47,754,573)
(302,283)
(74,529,643)
—
Proceeds from sale of excise tax bonds
49,117,765
15,510,873
—
64,628,638
—
Principal paid on bond maturities
(3,803,234)
(12,611,709)
—
(16,414,943)
—
Interest paid on bonds
(3,406,040)
(5,526,836)
—
(8,932,876)
—
Cash received from capital contributions
2,406,313
2,802,842
—
5,209,155
—
Net cash provided (used) by capital and related financing activities
17,842,017
(47,579,403)
(302,283)
(30,039,669)
—
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
3,593,215
5,279,353
1,401,245
10,273,813
2,563,305
Net cash provided (used) by investing activities
3,593,215
5,279,353
1,401,245
10,273,813
2,563,305
Net increase (decrease) in cash and cash equivalents
32,317,284
(13,787,088)
2,826,861
21,357,057
11,825,510
CASH AND CASH EQUIVALENTS:
Beginning of year
91,361,700
123,371,947
32,971,243
247,704,890
56,262,775
End of year
$ 123,678,984
$ 109,584,859
$
35,798,104
$ 269,061,947
$
68,088,285
44
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
(2,746,374) $
(1,156,685) $
(1,366,202) $
(5,269,261) $
(9,817,414)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
15,970,711
28,037,517
2,143,454
46,151,682
—
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
(856,794)
437,735
(121,842)
(540,901)
917
(Increase) decrease in due from other governments
—
237,160
(17,383)
219,777
—
(Increase) decrease in inventories
12,015
—
19,258
31,273
—
(Increase) decrease in prepaid items
(188,417)
(141,281)
(94,187)
(423,885)
—
Increase (decrease) in payables
(493,884)
1,186,318
(11,035)
681,399
122,110
Increase (decrease) in accrued payroll and compensated absences
114,784
66,480
50,565
231,829
8,667
Increase (decrease) in deposits
(334,023)
10,007
112,337
(211,679)
—
Increase (decrease) in claims payable
—
—
—
—
4,042,620
Increase (decrease) in unearned revenue
—
—
—
—
(87)
Increase (decrease) in customer advances
13,370
12,479
83,748
109,597
—
Increase (decrease) in net pension and OPEB items
14,814
15,735
13,454
44,003
—
Increase (decrease) in OPEB liability
204,940
173,947
90,751
469,638
—
Increase (decrease) in deferred inflow leases
—
—
(141,587)
(141,587)
—
Total adjustments
14,457,516
30,036,097
2,127,533
46,621,146
4,174,227
Net cash provided (used) by operating activities
$
11,711,142
$
28,879,412
$
761,331
$
41,351,885
$
(5,643,187)
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets from developers
$
125,765
$
22,983,720
$
—
$
23,109,485
$
—
Contributions of capital assets from city government
—
—
1,298,832
1,298,832
—
Gain (loss) on disposal of capital assets
(8,000)
—
4,401
(3,599)
—
Accretion of bond premiums
1,223,475
1,316,497
—
2,539,972
—
See accompanying Notes to the Financial Statements.
45
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 a 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 residents. 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, 2024
46
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 are normally 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, 2024
47
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 are generally recorded when a liability is incurred, as
under accrual accounting. However, debt service resources are provided during the current year for
payment of long-term debt principal and interest due early in the following year (not to exceed one month)
and, therefore, the expenditures and related liabilities have been recognized. Compensated absences and
claims and judgments are recorded only when payment is due.
Property taxes, sales taxes, franchise fees, licenses and permits, charges for services, special assessments
and investment income associated with the current fiscal period are all considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. Grants and similar awards are
recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. Miscellaneous revenues are not susceptible to accrual because generally they are not measurable until
received in cash.
Grants and similar awards received before the eligibility requirements are met are recorded as unearned
revenue. Cash receipts received in advance of being billed have also been reported as unearned revenue on
the governmental fund financial statements. Special assessments and delinquent property taxes have been
recorded as deferred inflows of resources. Grant and similar awards received more than 60 days after the
end of the current fiscal period have been recorded as deferred inflows of resources.
The city reports the following major governmental funds:
General Fund - This fund accounts for all financial resources of the city, except those required to be
accounted for in other funds.
General Obligation Bonds Debt Service Fund - This fund accumulates monies for the payment of principal
and interest requirements of the city’s tax supported general obligation bonds. Revenues for repayment are
generated from secondary property taxes.
The city reports the following major proprietary funds:
Water Fund - This fund is used to account for the provision of water services to the residents of the city and
certain county residents within the city’s municipal boundaries. All activities necessary to provide such
service are accounted for in this fund.
Wastewater Fund - This fund is used to account for the provision of wastewater services to the residents of
the city and certain county residents within the city’s municipal boundaries. All activities necessary to
provide such service are accounted for in this fund.
Additionally, the city reports the following fund type:
Internal Service Fund - Internal Service Funds are established to account for financing of goods and services
provided by one department or agency to other departments or agencies of the city on a cost
reimbursement basis. The Internal Service Fund consists of Self Insurance Funds that administer the city’s
self-insured property, liability, health, dental, short-term disability and workers’ compensation insurance
programs.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
48
NOTE 1 - Summary of Significant Accounting Policies, continued
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
city’s internal service fund are interfund transfers from the general fund for property and liability insurance
and charges to user departments for premiums related to health, dental, workers’ compensation and short-
term disability self-insurance. The principal operating revenues of the city’s enterprise funds are user fees
and charges to customers for water, wastewater, solid waste, airport services and public housing grants.
Operating expenses for these funds include the cost of sales and services, administrative expenses,
depreciation, claims and premiums. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the city’s policy to use restricted
resources first where allowable and then unrestricted resources as they are needed.
The focus of governmental fund financial statements is on major funds rather than reporting funds by type.
Each major fund is presented in a separate column. Non-major funds are aggregated and presented in a
single column. Internal service funds are combined and the totals are presented in a single column on the
face of the proprietary fund statements.
D. Budgeting and Budgetary Control
The City Council formally adopts an annual operating budget for the general, special revenue, debt service,
capital projects, enterprise and internal service funds, excluding the special assessment bonds debt service
fund.
The level of control at which expenditures may not exceed budget is by department. Upon written request
by the City Manager, the City Council has the authority to transfer part or all of any unencumbered
appropriation balance from one department to another per City Charter requirement. The City Manager and
department heads have the authority to transfer appropriations between divisions and expenditure
categories within departments. Appropriations totaling $5,701,473 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 $13,269,895, for
water enterprise fund are $31,967,297, for wastewater enterprise fund are $57,158,407, and for non-major
governmental funds are $91,642,807.
The budgets are adopted on a basis differing from generally accepted accounting principles in that for
budgetary purposes: (1) current year encumbrances are treated as expenditures; (2) bond proceeds for
proprietary funds are considered revenue; (3) capital outlays for enterprise funds are treated as
expenditures; (4) debt service principal payments are treated as expenditures for enterprise funds; (5)
accrued compensated absences are not recognized as expenditures; (6) depreciation and amortization are
not recognized as expenditures; (7) estimated landfill closure and post closure costs are not recognized as
expenditures until incurred; (8) sales tax collected by merchants but not yet required to be remitted at the
end of the fiscal year is not recorded as revenue; and (9) investments are recorded at cost.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
49
NOTE 1 - Summary of Significant Accounting Policies, continued
On June 3, 1980, the voters of Arizona approved an expenditure limitation for all local governments. This
limitation restricts the growth of expenditures to a percentage determined by population and inflation, with
certain expenditures excluded from the limitation. Through a Home Rule option, any city can adopt its own
alternative expenditure limitation if a majority of the qualified electors vote in favor of the issue at a regular
election. On August 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).
All accounts receivables are shown net of an allowance for uncollectible accounts.
Receivables not anticipated to be collected within a one year period are classified as long-term assets.
Significant long-term receivables at year-end included $4,997,694 in opioid settlements and $10,215,192 in
anticipated lease revenue.
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 $1,800,447 due from the
federal government for grants and $6,208,202 due from the State of Arizona for shared revenues and
grants.
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
50
NOTE 1 - Summary of Significant Accounting Policies, continued
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/amortized 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
Subscription based IT arrangements
varies based on length of contract
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 re-acquisition 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.
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
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
51
NOTE 1 - Summary of Significant Accounting Policies, continued
funds balance sheet. The governmental funds report unavailable revenues from property taxes, special
assessments, leases, settlements and public private partnerships. 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, leases
and public private partnerships.
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.
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
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
52
NOTE 1 - Summary of Significant Accounting Policies, continued
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 as 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.
T.
Leases
As lessor, 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
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
53
NOTE 1 - Summary of Significant Accounting Policies, concluded
discount rate to measure lease receivables.
U.
Subscription Based IT Arrangements (SBITA)
As the user of hosted software programs, the city recognizes those agreements that are calculated to have
initial estimated total current value of $100,000 or more for the life of the contract. If there is no stated rate
in the subscription 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 SBITA liabilities.
V. Public-Private, Public-Public (PPPs) and Availability Payment Arrangements (APAs)
The city may at times enter into agreements or arrangements with partners from other public agencies, or
private companies to accomplish goals of city leadership and provide services to the residents of Chandler.
The city recognizes any agreement that has been entered into and qualifies under the Governmental
Accounting Standards Board statement 94 to provide users of the financial statements with details on the
agreements.
W. Implementation of New Accounting Standards
During the year ended June 30, 2024, the city implemented the provisions of Governmental Accounting
Standards Board Statements No. 100, Accounting Changes and Error Corrections-An Amendment of GASB
Statement No. 62. This Statement is intended to enhance the financial accounting and reporting
requirements for accounting changes and error corrections to provide more understandable, reliable,
relevant, consistent, and comparable information for making decisions or assessing accountability. The city's
analysis of changes to and/or within the financial reporting entity 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, and the Chandler Museum Foundation
separately hold investments and are not included in the subsequent disclosures.
Deposits
At year-end, cash on hand was $44,840, the carrying amount of the city deposits was $23,667,156, and the
bank balance was $32,349,866. Of the bank balance, $250,000 was covered by federal depository insurance
and $32,099,866 was covered by collateral held in the pledging bank’s trust department in the city’s name. In
addition, at June 30, 2024, the city had $183,805,472 of restricted cash held by paying agent consisting of
$62,645,441 in July 1, 2024 debt service payments, $26,931,959 in unspent bond proceeds from the 2023
Excise Tax Revenue Obligation issuances, and $94,228,072 from the 2023 General Obligation Bond
issuances. The cash held by paying agent is in money market funds invested primarily in short-term U.S.
Treasury securities.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
54
NOTE 2 - Cash and Investments, continued
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
At June 30, 2024, 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
Credit Rating
U.S. Treasuries
Level 1
421,618,676
76,111,733 345,506,943
58.84 %
U.S. Agencies:
Fannie Mae
Level 2
12,697,639
5,683,743
7,013,896
1.77
AA+/Aaa
Federal Farm Credit Banks
Level 2
9,078,709
5,862,777
3,215,932
1.27
AA+/Aaa
Federal Home Loan Bank
Level 2
1,714,367
1,714,367
0.24
AA+/Aaa
Freddie Mac
Level 2
26,713,150
26,713,150
3.73
AA+/Aaa
Corporate Bonds:
Adobe Inc Corp
Level 2
3,211,900
—
3,211,900
0.45
A+/A1
Amazon.com Inc Corp
Level 2
1,432,546
1,339,526
93,020
0.20
AA/A1
Apple Inc Corp
Level 2
260,186
260,186
—
0.04
AA+/Aaa
Athene Global Funding
Level 2
5,203,769
—
5,203,769
0.73
A+/A1
Bank Of America Corp
Level 2
10,817,673
—
10,817,673
1.51
A-/A1
Bank Of New York Mellon Corp
Level 2
3,662,366
—
3,662,366
0.51
A/A1
Caterpillar Finl Service
Level 2
6,342,192
1,967,160
4,375,032
0.89
A/A2
Cisco Systems Inc
Level 2
2,991,887
—
2,991,887
0.42
AA-/A1
Citibank Na
Level 2
6,977,904
—
6,977,904
0.97
A+/Aa3
Goldman Sachs Group Inc
Level 2
3,961,965
—
3,961,965
0.55
A+/A1
Home Depot Inc Corp
Level 2
3,414,363
264,731
3,149,632
0.48
A/A2
IBM Corp
Level 2
2,070,192
—
2,070,192
0.29
A-/A3
Intel Corp
Level 2
147,461
—
147,461
0.02
A-/A3
John Deere Capital Corp
Level 2
2,958,804
—
2,958,804
0.41
A/A1
JP Morgan Chase & Co Corp
Level 2
11,442,715
—
11,442,715
1.60
A-/A1
Manufacturers And Traders Trust Co
Level 2
3,607,576
—
3,607,576
0.50
A-/Baa1
Mastercard Inc Corp
Level 2
2,748,597
—
2,748,597
0.38
A+/Aa3
Microsoft Corp
Level 2
3,013,943
—
3,013,943
0.42
AAA/Aaa
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
55
NOTE 2 - Cash and Investments, continued
Morgan Stanley Corp
Level 2
7,674,848
—
7,674,848
1.07
A-/A1
National Rural Utilities Cooperative Fin
Level 2
5,177,550
2,941,663
2,235,887
0.72
A-/A2
New York Life Global Funding
Level 2
3,949,474
—
3,949,474
0.55
AA+/Aaa
Novartis Captial Corp
Level 2
6,462,407
—
6,462,407
0.90
AA-/Aa3
Paccar Financial Corp
Level 2
5,178,671
—
5,178,671
0.72
A+/A1
Pepsico Inc Corp
Level 2
152,138
—
152,138
0.02
A+/A1
Qualcomm Inc Cor Corp
Level 2
1,603,341
—
1,603,341
0.22
A/A2
State Street Corp
Level 2
6,941,778
—
6,941,778
0.97
A/A1
Target Corp
Level 2
2,046,154
—
2,046,154
0.29
A/A2
Texas Instruments Inc Corp
Level 2
34,862
34,862
—
—
A+/Aa3
Toyota Motor Credit Corp
Level 2
1,877,896
—
1,877,896
0.26
A+/A1
Truist Financial Corp
Level 2
2,167,922
—
2,167,922
0.30
A-/Baa1
Wal Mart Stores Inc Global
Level 2
10,261,304
—
10,261,304
1.43
AA/Aa2
Wells Fargo Bank Na Bank
Level 2
6,006,208
—
6,006,208
0.84
A+/Aa2
Municipal Bonds:
Scottsdale, AZ TXBL GO Bonds
Level 2
1,570,301
—
1,570,301
0.22
AAA/Aaa
Tempe Ariz Ctfs Partn
Level 2
1,250,000
1,250,000
—
0.17
AA+/NA
Asset Backed:
Amxca 2022-4 A
Level 2
2,044,705
—
2,044,705
0.29
AAA/NA
Amxca 2024-1 A
Level 2
2,018,721
—
2,018,721
0.28
AAA/NA
Baat 2023-1A A3
Level 2
1,258,311
—
1,258,311
0.18
NR/Aaa
Baat 2023-2A A3
Level 2
2,329,654
—
2,329,654
0.33
NR/Aaa
Bacct 2023-A2 A2
Level 2
1,173,183
—
1,173,183
0.16
NR/Aaa
Bmwot 2022-A A3
Level 2
868,665
—
868,665
0.12
AAA/Aaa
Bmwot 2023-A A3
Level 2
2,206,893
—
2,206,893
0.31
AAA/NA
Carmx 2021-1 A3
Level 2
37,178
—
37,178
0.01
AAA/NR
Carmx 2021-2 A3
Level 2
166,393
—
166,393
0.02
AAA/NR
Carmx 2022-2 A3
Level 2
940,100
—
940,100
0.13
AAA/Aaa
Cccit 2023-A1 A1
Level 2
719,205
—
719,205
0.10
AAA/Aaa
Chait 2024-A1 A
Level 2
3,010,478
—
3,010,478
0.42
AAA/NR
Cnh 2021-A A3
Level 2
139,486
—
139,486
0.02
AAA/NR
Comet 2022-3 A
Level 2
1,989,967
—
1,989,967
0.28
AAA/NA
Copar 2023-1 A2A
Level 2
798,411
—
798,411
0.11
AAA/NA
Dcent 2021-A1 A1
Level 2
826,126
—
826,126
0.12
AAA/Aaa
Dcent 2022-2 A
Level 2
3,435,297
3,435,297
—
0.48
NA/Aaa
Investment Maturities (in Years)
Investment Type
Category
Fair Value
Less than 1
Year
1-5 Years
Concentration
of
Credit Risk %
S&P/Moody
Credit Rating
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
56
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
Credit Rating
Fitat 2023-1 A3
Level 2
2,114,408
—
2,114,408
0.30
AAA/Aaa
Gmcar 2023-3 A3
Level 2
4,915,518
—
4,915,518
0.69
AAA/Aaa
Gmcar 2024-1 A3
Level 2
312,122
—
312,122
0.04
NR/Aaa
Harot 2023-2 A3
Level 2
1,988,663
—
1,988,663
0.28
AAA/Aaa
Harot 2023-3 A3
Level 2
5,012,771
—
5,012,771
0.70
AAA/NA
Harot 2023-3 A3
Level 2
1,932,418
—
1,932,418
0.27
AAA/NR
Hart 2021-A A3
Level 2
20,538
—
20,538
—
AAA/NR
Hart 2021-C A3
Level 2
183,866
—
183,866
0.03
AAA/NR
Hart 2022-C A2A
Level 2
147,512
—
147,512
0.02
AAA/NA
Hart 2023-C A3
Level 2
895,684
—
895,684
0.12
AAA/NR
Hart 2024-A A3
Level 2
1,494,484
—
1,494,484
0.21
AAA/NA
Kcot 2023-2A A3
Level 2
775,988
—
775,988
0.11
NR/Aaa
Mbart 2021-1 A3
Level 2
1,243,578
—
1,243,578
0.17
AAA/Aaa
Narot 2021-A A3
Level 2
1,038,139
—
1,038,139
0.14
AAA/Aaa
Narot 2022-B A3
Level 2
1,982,552
—
1,982,552
0.28
AAA/Aaa
Taot 2021-C A3
Level 2
317,068
—
317,068
0.04
AAA/Aaa
Taot 2023-C A3
Level 2
598,154
—
598,154
0.08
AAA/NR
Taot 2023-D A3
Level 2
1,007,143
—
1,007,143
0.14
AAA/NA
Taot 2023-D A3
Level 2
609,874
—
609,874
0.09
AAA/NR
Taot 2024-B A3
Level 2
2,007,912
—
2,007,912
0.28
AAA/Aaa
Usaot 2022-A A3
Level 2
1,309,442
—
1,309,442
0.18
AAA/Aaa
Valet 2023-2 A3
Level 2
4,029,903
—
4,029,903
0.56
NA/Aaa
Woart 2023-A A2A
Level 2
297,018
—
297,018
0.04
AAA/NA
Bank Note:
Morgan Stanley Bank
Level 2
1,712,002
—
1,712,002
0.24
A+/Aa3
Wells Fargo Bank Na Bank
Level 2
4,501,383
—
4,501,383
0.63
A+/Aa2
Money Market - Certificates of Deposit
Level 2
6,368,907
—
6,368,907
0.89
A/A1
Money Market Fund
Level 1
36,912,861
36,912,861
—
5.15
AAAm/NR
Cash and cash equivalents
Level 1
434,461
434,461
—
0.06
AAA/Aaa
Total
$ 716,570,576 $ 136,499,000 $ 580,071,576
100 %
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
57
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 BBB+ or Baa1,
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 AA+, A- and AAAm by Standard &
Poor’s, respectively, as of June 30, 2024.
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 5 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, 2024
58
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 2023-24, current property tax collections were $41,765,178 or 98 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 2024 are not available for fiscal year 2023-24; accordingly, such taxes will not be recognized as
revenue until fiscal year 2024-25.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
59
NOTE 4 - Capital Assets
A summary of changes in capital assets for governmental activities is as follows:
Balance
Balance
Governmental Activities
June 30, 2023
Additions
Retirements
June 30, 2024
Capital assets, not being depreciated/
Amortized:
Land
$
89,380,379
$
12,367,804
$
—
$
101,748,183
Construction in progress
187,131,784
67,447,906
(138,034,937)
116,544,753
Total capital assets not being depreciated/
amortized
276,512,163
79,815,710
(138,034,937)
218,292,936
Capital assets, being depreciated/
amortized:
Infrastructure
781,242,271
54,147,370
(74,000)
835,315,641
Building and improvements
420,340,254
67,593,249
—
487,933,503
Subscription based IT arrangements
1,273,887
6,348,553
—
7,622,440
Vehicles, machinery and equipment
104,404,105
17,704,776
(3,348,476)
118,760,405
Total capital assets being depreciated/
amortized
1,307,260,517
145,793,948
(3,422,476)
1,449,631,989
Less accumulated depreciation/
amortization for:
Infrastructure
(488,682,469)
(27,174,014)
—
(515,856,483)
Building and improvements
(275,809,707)
(18,835,817)
—
(294,645,524)
Subscription based IT arrangements
(327,397)
(2,230,400)
—
(2,557,797)
Vehicles, machinery and equipment
(86,854,255)
(6,497,896)
1,526,565
(91,825,586)
Total accumulated depreciation/
Amortization
(851,673,828)
(54,738,127)
1,526,565
(904,885,390)
Total capital assets, being depreciated/
amortized, net
455,586,689
91,055,821
(1,895,911)
544,746,599
Governmental activities capital assets, net
$
732,098,852
$
170,871,531
$
(139,930,848) $
763,039,535
Construction in progress in the governmental activities capital assets is comprised of the following:
Expended to
Remaining
June 30, 2024
Commitments
Streets
$
61,995,976
$
49,089,822
Parks and recreation
27,229,800
21,363,155
Buildings and related improvements
27,318,977
18,348,465
Total
$
116,544,753
$
88,801,442
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
60
NOTE 4 - Capital Assets, continued
A summary of changes in capital assets for business-type activities is as follows:
Balance
Balance
Business-Type Activities
June 30, 2023
Additions
Retirements
June 30, 2024
Capital assets, not being depreciated:
Land
$
57,189,731
$
138,420
$
—
$
57,328,151
Construction in progress
126,421,086
64,080,391
(2,138,319)
188,363,158
Total capital assets not being depreciated
183,610,817
64,218,811
(2,138,319)
245,691,309
Capital assets, being depreciated:
System improvements
1,407,694,332
35,906,130
(949,114)
1,442,651,348
Building and improvements
27,070,713
96,628
—
27,167,341
Vehicles, machinery and equipment
23,031,225
1,366,384
—
24,397,609
Water rights
42,860,250
—
—
42,860,250
Land improvements
2,668,237
317,186
—
2,985,423
Total capital assets being depreciated
1,503,324,757
37,686,328
(949,114)
1,540,061,971
Less accumulated depreciation for:
System improvements
(860,180,576)
(44,003,620)
—
(904,184,196)
Buildings and improvements
(20,157,937)
(733,677)
—
(20,891,614)
Vehicles, machinery and equipment
(19,666,132)
(922,805)
116,655
(20,472,282)
Water rights
(1,071,507)
(428,603)
—
(1,500,110)
Land improvements
(2,467,680)
(62,977)
—
(2,530,657)
Total accumulated depreciation
(903,543,832)
(46,151,682)
116,655
(949,578,859)
Total capital assets, being depreciated, net
599,780,925
(8,465,354)
(832,459)
590,483,112
Business-type activities capital assets, net
$
783,391,742
$
55,753,457
$
(2,970,778) $
836,174,421
Construction in progress in the business-type activities capital assets is comprised of the following:
Expended to
Remaining
June 30, 2024
Commitments
Sewer system improvements
$ 145,086,487 $ 55,748,142
Water system improvements
41,222,306
29,926,506
Solid waste system improvements
333,061
36,217
Airport improvements
1,721,304
550,090
Total
$ 188,363,158 $ 86,260,955
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
61
NOTE 4 - Capital Assets, concluded
Depreciation/Amortization expense was charged to functions/programs as follows:
Governmental activities:
General government
$
9,538,301
Public safety
6,822,347
Community services
9,477,444
Transportation and development
28,900,035
Total depreciation/amortization expense -
governmental activities
$ 54,738,127
Business-type activities:
Water
$ 15,970,711
Wastewater
28,037,517
Solid waste
596,958
Airport
888,977
Chandler housing authority
657,519
Total depreciation expense - business-type activities
$ 46,151,682
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.
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 $345,907,130 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 94 percent of
total ad valorem taxes. The total principal and interest remaining to be paid on the governmental activities
portion of the bonds is $292,811,049. Principal and interest paid for the current year and total ad valorem
property taxes were $39,833,666 and $42,449,846 respectively.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
62
NOTE 5 - Long-Term Liabilities, continued
General obligation bonds outstanding as reported in governmental and business-type activities at June 30,
2024 were as follows:
Outstanding
Governmental Activities General Obligation Bonds:
June 30, 2024
$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.
$
26,725,000
$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.
32,790,000
$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.
24,800,000
$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.
26,629,159
$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.
6,150,000
$106,415,000 Capital Improvement Bonds, Series 2023, due in annual
installments of $6,750,000, to $15,625,000 beginning 7/1/24 through 7/1/38;
interest at 2.125 percent to 4 percent.
106,415,000
Total Governmental Activities General Obligation Bonds
$
249,009,159
Business-Type Activity General Obligation Bonds
Annual principal and interest payments on the business-type activities bonds were approximately 30
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 $53,096,081. Principal and interest
paid for the current year and total net water system, wastewater system revenues were $12,111,686 and
$40,083,611 respectively.
Outstanding
Business-Type Activities General Obligation Bonds:
June 30, 2024
$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.
$
16,370,000
$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.
19,560,841
Total Business-Type Activities General Obligation Bonds
$
49,480,841
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
63
NOTE 5 - Long-Term Liabilities, continued
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 58% percent of net system revenues. The total principal and
interest to be paid on the obligations is $314,550,268. Principal and interest paid for the current year and
net water and wastewater system revenues were $23,397,302 and $40,083,611 respectively. Total excise tax
revenues during the fiscal year were $355,242,281. Principal and interest payments were less than 7 percent
of total excise tax revenues.
Outstanding
Business-Type Activities Excise Tax Revenue Obligations:
June 30, 2024
$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.
49,850,000
$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.
13,590,000
$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.
31,100,000
$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.
8,195,000
$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.
82,715,000
$64,995,000 Water & Sewer Excise Tax Revenue Refunding Obligations, Series
2023, due in annual installments of $455,000 to $9,275,,000 beginning 7/1/25
through 7/1/38; interest at 5 percent.
64,955,000
Total Business-Type Activities Excise Tax Revenue Obligations
$
250,405,000
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
64
NOTE 5 - Long-Term Liabilities, continued
Changes in Long-Term Liabilities
Balance
Balance
Due within
Governmental Activities:
June 30, 2023
Additions
Reductions
June 30, 2024
One Year
Compensated absences
$ 14,117,796
$
3,551,981
$
(2,307,252) $ 15,362,525
$
2,584,098
Bonds payable:
General obligation bonds
176,702,193
106,415,000
(34,108,034) 249,009,159
33,101,936
Issuance premiums
12,825,886
12,299,180
(2,776,379)
22,348,687
3,335,432
Total bonds payable
189,528,079
118,714,180
(36,884,413) 271,357,846
36,437,368
Arbitrage Liability
—
189,980
—
189,980
—
Claims payable
19,771,275
33,448,291
(29,405,671)
23,813,895
15,835,422
Subscription based IT liability
482,119
6,202,462
(2,104,917)
4,579,664
2,200,163
Net pension liability
237,933,742
—
(38,444,851) 199,488,891
—
OPEB liability
64,928,042
3,571,574
—
68,499,616
—
Totals
$ 526,761,053
$ 165,678,468
$ (109,147,104) $ 583,292,417
$ 57,057,051
Balance
Balance
Due Within
Business-Type Activities:
June 30, 2023
Additions
Reductions
June 30, 2024
One Year
Compensated absences
$
1,421,206
$
368,290
$
(233,666) $
1,555,830
$
264,528
Bonds & obligations payable:
General obligation bonds
59,712,807
(10,231,966)
49,480,841
9,543,064
Excise tax revenue obligations
202,930,000
64,955,000
(17,480,000) 250,405,000
9,410,000
Issuance premiums
12,344,938
10,160,898
(2,539,972)
19,965,864
2,680,498
Total bonds & obligations
payable
274,987,745
75,115,898
(30,251,938) 319,851,705
21,633,562
Net pension liability
19,295,830
48,888
—
19,344,718
—
OPEB liability
8,084,000
469,638
—
8,553,638
—
Landfill closure/post closure
4,340,000
—
—
4,340,000
94,446
Totals
$ 308,128,781
$ 76,002,714
$ (30,485,604) $ 353,645,891
$ 21,992,536
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, 2024
65
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, 2024, the 6 percent debt limitation was $442,853,589,
providing a debt margin of $433,941,766 and the 20 percent debt limitation was $1,476,178,631, providing a
debt margin of $1,165,622,808.
Conduit Debt
To further economic development in the city, the Industrial Development Authority has issued bonds that
meet the definition of a conduit debt obligation. Those bonds have provided private-sector entities with
access to capital for the acquisition and construction of industrial and commercial facilities. The bonds are
secured by the property they finance and are payable solely from payments received from the private-
sector entities on the underlying mortgage or promissory notes. The Industrial Development Authority has
not extended any additional commitments for the debt service payments of the bonds beyond the collateral
and the payments from the private-sector entities on the underlying mortgage or promissory notes and
maintenance of the tax-exempt status of the conduit debt obligation. At June 30, 2024, the bonds have an
aggregate outstanding principal amount payable of $1,295,220,000, none of which was recognized as a
liability by the Industrial Development Authority.
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 the 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, 2024 is $189,980.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
66
NOTE 5 - Long-Term Liabilities, concluded
Debt Service Requirements to Maturity
The following is a summary of debt service requirements to maturity for all bonds payable as of June 30,
2024:
GOVERNMENTAL ACTIVITIES
Years
General
General
Ended
Obligation
Obligation
June 30
Principal
Interest
Total
2025
$ 33,101,936
$
6,777,724
$ 39,879,660
2026
37,975,023
7,834,637
45,809,660
2027
34,363,420
6,432,348
40,795,768
2028
27,237,390
5,197,053
32,434,443
2029
29,381,390
4,110,547
33,491,937
2030-2034
73,460,000
10,265,598
83,725,598
2035-2039
13,490,000
336,251
13,826,251
Total
$ 249,009,159
$ 40,954,158
$ 289,963,317
BUSINESS-TYPE ACTIVITIES
Years
General
General
Ended
Obligation
Obligation
Excise Tax
Excise Tax
June 30
Principal
Interest
Principal
Interest
Total
2025
$
9,543,064
$
1,401,616
$
9,410,000
$
6,910,336
$ 27,265,016
2026
9,979,977
1,251,250
15,025,000
8,052,900
34,309,127
2027
10,096,580
890,753
16,910,000
7,491,434
35,388,767
2028
8,737,610
584,115
16,120,000
6,906,332
32,348,057
2029
11,123,610
273,869
21,620,000
6,193,132
39,210,611
2030-2034
—
—
111,185,000
20,908,289
132,093,289
2035-2039
—
—
60,135,000
5,950,713
66,085,713
Total
$ 49,480,841
$
4,401,603
$ 250,405,000
$ 62,413,136
$ 366,700,580
NOTE 6 - Defeased Debt
In prior years, the city defeased certain general obligation bonds and certain excise tax obligations by
placing the proceeds of new bonds and obligations in an irrevocable trust to provide for all future debt
service payments on the old bonds or obligations. Accordingly, the trust account assets and the liability for
the defeased bonds and obligations are not included in the city's financial statements.
Bonds and obligations that have been advance refunded (defeased) as of June 30, 2024:
Refunded Debt Outstanding
Amount
General Obligation Bonds, Series 2014 (Final Redemption 7/1/24)
$ 43,320,000
Total Refunded Bonds and Obligations Outstanding
$ 43,320,000
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
67
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, 2024, the city estimates total costs related to landfill closure and postclosure
care is $17,113,106 and has recognized that entire amount since the landfill no longer accepts waste. To
date, $12,773,106 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, $17,113,106 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, 2024. 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, 2023. 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
$
2,406,313 $
125,765 $
— $
2,532,078
Wastewater
2,802,842
22,983,720
—
25,786,562
Airport
—
—
1,298,832
1,298,832
Total
$
5,209,155 $
23,109,485 $
1,298,832 $ 29,617,472
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
68
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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
69
NOTE 9 - Fund Balance, concluded
As of June 30, 2024 the constraints placed on fund balance for the major governmental funds and other
non-major governmental funds are presented in the following table:
General
Obligation
Other
Bonds Debt
Governmental
General
Service
Funds
Total
Nonspendable:
Inventories
$
1,055,004
$
—
$
—
$
1,055,004
Total nonspendable
1,055,004
—
—
1,055,004
Restricted for:
Court enhancement
436,920
—
—
436,920
Judicial enhancement
625,125
—
—
625,125
Weapons proceeds
146,935
—
—
146,935
Citing agency
69,688
—
306,372
376,060
Opioid Settlement Funds
1,546,802
—
—
1,546,802
Smart and Safe AZ
3,209,675
—
—
3,209,675
Transportation and development
—
—
146,457,190
146,457,190
Debt service reserve
—
1,646,322
—
1,646,322
Community development
—
—
484,373
484,373
Community services
—
—
70,306,545
70,306,545
OPEB asset
3,751,685
3,751,685
Other capital projects
—
—
22,655,097
22,655,097
Total restricted
9,786,830
1,646,322
240,209,577
251,642,729
Assigned to:
Domestic violence prevention
390,650
—
—
390,650
Self-insurance purposes
7,500,000
—
—
7,500,000
Traffic safety reserve
823,925
—
—
823,925
PSPRS contribution
7,000,000
—
—
7,000,000
Capital improvement projects
214,601,933
—
514,194
215,116,127
Economic development projects
14,223,000
—
—
14,223,000
ARPA related projects
5,014,961
—
—
5,014,961
Total assigned
249,554,469
—
514,194
250,068,663
Unassigned
58,553,967
—
(9,554,695)
48,999,272
Total unassigned
58,553,967
—
(9,554,695)
48,999,272
Total fund balances
$
318,950,270
$
1,646,322
$
231,169,076
$
551,765,668
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 2023-24. This amounts to $53,955,300
and is included in unassigned above.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
70
NOTE 10 - Retirement and Pension Plans
The city contributes to the pension plans described below. The city’s share of the Arizona State Retirement
System Health Benefit Supplement (HBS) Other Postemployment Benefit (OPEB) is recorded in the financial
statements but has not been presented in the note disclosures or required supplementary information due
to the relative insignificance to the financial statements. Additionally, the city contributes to the Elected
Officials Retirement Plan and non-city Other Post Employment Benefit (OPEB) plans; however the plans are
not described further because of the relative insignificance to the financial statements. The plans described
in this note are component units of the State of Arizona.
At June 30, 2024, the city 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
$ 199,488,891 $
19,344,718 $ 218,833,609
Pension deferred outflows of resources
148,975,633
2,826,383
151,802,016
Pension deferred inflows of resources
4,306,879
1,428,229
5,735,108
Pension expense
31,177,433
7,313,225
38,490,658
OPEB Plans
Governmental
Business-type
Activities
Activities
Total
Net OPEB asset
$
3,751,685 $
— $
3,751,685
Net OPEB liability
68,499,616
8,553,638
77,053,254
OPEB deferred outflows of resources
17,360,059
2,232,867
19,592,926
OPEB deferred inflows of resources
14,073,566
1,502,687
15,576,253
OPEB expense
6,071,753
738,882
6,810,635
The city reported $80,638,034 and $2,016,962 of pension/OPEB expenditures in its governmental and
enterprise funds, respectively, related to all pension/OPEB plans to which it contributed in the current fiscal
year.
Arizona State Retirement System
A.
Plan Description
The city 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, 2024
71
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 12.29 percent (12.14 percent for retirement and 0.15
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 12.29 percent (12.03 percent for
retirement, 0.11 percent for health insurance premium benefit, and 0.15 percent for long-term disability) of
the active members’ annual covered payroll.
In addition, the city was required by statute to contribute at the actuarially determined rate of 9.99 percent
(9.94 percent for retirement and .05 percent for long term disability) 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, 2024, 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’s contributions
for the year ended June 30, 2024, were $11,771,462. The city’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, 2024
72
NOTE 10 - Retirement and Pension Plans, continued
D. Pension Liability
At June 30, 2024, the city reported a liability of $110,384,963 for its proportionate share of the net pension
liability of the ASRS. The net pension liability was measured as of June 30, 2023. 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, 2022, to the measurement date of June 30, 2023.
The city’s proportion of the net pension liability was based on a projection of the city’s long-term share of
contributions to the pension plan relative to the projected contributions of all participating employers,
actuarially determined. At June 30, 2023, the city’s proportion was 0.68 percent, which was an increase of .01
from its proportion measured as of June 30, 2022.
E.
Pension Expense and Deferred Outflows/Inflows of Resources
For the year ended June 30, 2024, the city recognized pension expense for ASRS of $13,278,484 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
$
2,494,260 $
—
Net difference between projected and actual earnings
on pension plan investments
—
3,905,516
Changes in proportion and differences between
contributions and proportionate share of contributions
754,605
1,728,376
Contributions subsequent to the measurement date
11,771,462
—
Total
$
15,020,327 $
5,633,892
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, 2025. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to ASRS pensions will be recognized in pension expense as follows:
Year Ending June 30:
2024
$ (1,871,854)
2025
(4,236,842)
2026
4,208,911
2027
(485,322)
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
73
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, 2022
Actuarial roll forward date
June 30, 2023
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, 2022 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 4.66
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
44%
3.50%
Fixed Income - Credit
23%
5.90%
Fixed Income - Interest Rate Sensitive
6%
1.50%
Private Equity
10%
6.70%
Real estate
17%
5.90%
Total
100%
G. Discount Rate
The discount rate used to measure the ASRS total pension liability was 7.0 percent, which remained the
same when compared to the rated used for June 30, 2022. 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, 2024
74
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’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's proportionate share of the net pension liability
$ 165,340,462 $ 110,384,963 $ 64,561,798
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 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, 2024
75
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, 2024, the following employees were covered by the agent pension plan’s benefit terms:
PSPRS - Police
PSPRS - Fire
Inactive employees or beneficiaries
currently receiving benefits
231
100
Inactive employees entitled to but not
yet receiving benefits
81
39
Active employees
270
194
Total
582
333
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
76
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, 2024, are indicated below. Rates are a
percentage of active members’ annual covered payroll.
PSPRS - Police
PSPRS - Fire
Active members - pension
Tier 1
7.65 %
7.65 %
Tier 2
7.65 %
7.65 %
Tier 3 DB
8.68 %
9.16 %
Tier 3 DC
10.60 %
10.60 %
Employer rates - pension
Tier 1
43.59 %
37.18 %
Tier 2
43.59 %
37.18 %
Tier 3 DB
39.75 %
30.42 %
Tier 3 DC
40.81 %
30.98 %
In addition, the city was required by statute to contribute at the actuarially determined rate of 30.21 percent
for police and 20.38 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
$
64,251,229 $
30,895,099
E.
Pension Liability
At June 30, 2024, the city reported $73,540,862 in net pension liability for police and $34,907,784 in net
pension liability for fire. The net pension liabilities were measured as of June 30, 2023, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.
The total pension liability as of June 30, 2023 reflects changes of benefit terms and actuarial assumptions
from 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, 2024
77
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, 2023
Actuarial cost method
Entry age normal
Investment rate of return Tier 1/2
7.2%
Investment rate of return Tier 3
7.0%
Price inflation
2.5%
Wage inflation
3.5%
Projected salary increases
including inflation
2.75% - 15%
Cost of living adjustment
1.85%
Mortality rates
PubS-2010 tables
The long-term expected rate of return on PSPRS pension plan investments was determined to be 7.20
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
6%
1.90%
International Public Equity
16%
4.49%
Other Assets (Capital Appreciation)
7%
4.49%
Cash - Mellon
2%
0.69%
Diversifying Strategies
5%
3.68%
Global Private Equity
20%
7.28%
Private Credit
20%
6.19%
U.S. Public Equity
24%
3.98%
Total
100%
G. Pension Discount Rates
The discount rate of 7.20 percent was used to measure the total pension liability for Tier 1 and 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, 2024
78
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, 2023
$
347,488,701 $
248,188,100 $
99,300,601
Changes for the year:
Service cost
6,077,100
—
6,077,100
Interest on the total pension liability
24,895,921
—
24,895,921
Differences between expected and actual
experience in the measurement of the
pension liability
15,926,154
—
15,926,154
Contributions - employer
—
47,624,383
(47,624,383)
Contributions - employee
—
2,989,074
(2,989,074)
Net investment income
—
22,150,142
(22,150,142)
Benefit payments, including refunds of
employee contributions
(15,578,228)
(15,578,228)
—
Administrative expense
—
(106,671)
106,671
Other changes
—
1,986
(1,986)
Net changes
31,320,947
57,080,686
(25,759,739)
Balances at June 30, 2024
$
378,809,648 $
305,268,786 $
73,540,862
Increase/(Decrease)
Total Pension
Plan Fiduciary
Net Pension
Liability
Net Position
Liability
PSPRS - Fire
Balances at June 30, 2023
$
207,482,293 $
159,680,979 $
47,801,314
Changes for the year:
Service cost
4,818,001
—
4,818,001
Interest on the total pension liability
15,003,773
—
15,003,773
Differences between expected and actual
experience in the measurement of the
pension liability
7,784,656
—
7,784,656
Contributions - employer
—
24,643,731
(24,643,731)
Contributions - employee
—
2,063,374
(2,063,374)
Net investment income
—
13,853,029
(13,853,029)
Benefit payments, including refunds of
employee contributions
(7,829,127)
(7,829,127)
—
Administrative expense
—
(60,174)
60,174
Net changes
19,777,303
32,670,833
(12,893,530)
Balances at June 30, 2024
$
227,259,596 $
192,351,812 $
34,907,784
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
79
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’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
6.20
7.20
8.20
Net pension liability
$ 127,113,149 $
73,540,862 $
30,089,599
PSPRS - Fire:
Rate
6.20
7.20
8.20
Net pension liability
$
66,172,618 $
34,907,784 $
9,318,250
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, 2024, the city recognized the following as pension expense:
Pension
Expense
PSPRS - Police
$
16,500,840
PSPRS - Fire
8,712,310
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
80
NOTE 10 - Retirement and Pension Plans, concluded
K.
Pension Deferred Outflows/Inflows of Resources
At June 30, 2024, the city reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Police
Resources
Resources
Differences between expected and actual experience
$
23,136,069 $
36,836
Changes of assumptions or other inputs
4,251,972
—
Net difference between projected and actual earnings
on pension plan investments
932,079
—
Contributions subsequent to the measurement date
64,251,229
—
Total
$
92,571,349 $
36,836
Deferred
Deferred
Outflows of
Inflows of
PSPRS - Fire
Resources
Resources
Differences between expected and actual experience
$
10,204,810 $
64,380
Changes of assumptions or other inputs
2,259,643
—
Net difference between projected and actual earnings
on pension plan investments
850,788
—
Contributions subsequent to the measurement date
30,895,099
—
Total
$
44,210,340 $
64,380
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, 2025. Other
amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year Ending June 30:
PSPRS - Police
PSPRS - Fire
2025 $
7,113,488 $
2,045,542
2026
5,167,525
597,670
2027
9,889,915
5,665,099
2028
3,457,997
1,580,130
2029
2,654,359
1,194,669
Thereafter
—
2,167,751
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
81
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan
The cost of postemployment healthcare benefits, from an accrual accounting perspective, should be
associated with the periods in which the future costs are earned rather than in the future years when they
will be paid (similar to the cost of pension benefits). GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions requires the city to recognize the entire OPEB
liability and a comprehensive measure of OPEB expense. The comprehensive measure of OPEB expense
includes immediate recognition in OPEB expense of the effects of changes of benefit terms, as well as the
incorporation of the amortization of deferred inflows of resources and deferred outflows of resources
related to OPEB over a defined, closed period.
A.
Plan Description
The city provides post-employment health care (OPEB) for retired employees through a single employer
defined benefit health plan. The plan provides health benefits for eligible retirees, their spouses and
dependents though the city’s group health insurance plans, which covers active and retired members. The
benefits, benefit levels, and contribution rates are determined annually by the city’s Human Resources
Department and approved by the City Council. The plan is not accounted for as a trust fund, as an
irrevocable trust has not been established to account for the plan and no assets are accumulated. The plan
does not issue a separate financial report. Generally, resources from the general fund are used to pay for
post-employment benefits.
The city also provides a Retirement Health Savings Plan (RHSP) for active employees that may be used upon
separation from city employment. The city funds $15 per pay period during the term of employment. The
plan provides health expense reimbursements eligible under Internal Revenue Code Section 213, other than
direct long-term care expenses. The plan is not accounted for as a trust fund, as an irrevocable trust has not
been established to account for the plan. The plan does not issue a separate financial report. Generally,
resources from the general fund are used to pay for post-employment benefits.
B.
Benefits Provided
The city provides post-employment health care benefits to its retirees. To be eligible for benefits, an
employee must qualify for retirement under one of the state retirement plans for public employees and be
covered under the city’s health plan during their active status.
Upon retirement, the city deposits a one-time payment of $900 per year of city service in the retiree’s RHSP
account. The retiree must have a minimum of five years of city service to receive this contribution.
C.
Contributions
The plan premium rates are determined annually by the city’s Human Resources Department in
collaboration with an outside consulting firm, reviewed, and recommended by a five member Health Care
Benefits Trust Board, and approved by the City Council. The retiree’s contribution is 100 percent of the
actuarially determined blended premium rate. The city makes no contribution to the retirees’ premiums
other than allowing them to participate through the city’s pooled benefits. By providing retirees with access
to the city’s healthcare plans based on the same rates it charges to active employees, the city is in effect
providing a subsidy to retirees. This implied subsidy exists because, on average, retiree healthcare costs are
higher than active employee healthcare costs. The city contributes 0 percent of these premiums for
employees. By not contributing anything toward this plan in advance, the city employs a pay-as-you-go
method through paying the higher rate for active employees each year. A separate financial report is not
issued for the plan.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
82
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
D. Employees Covered by Benefit Terms
The following employees were covered as of the effective date of the OPEB valuation:
Inactive employees or beneficiaries
currently receiving benefits
797
Active members
1,717
Total
2,514
E.
Total OPEB Liability
The city’s total OPEB liability of $77,053,254 was measured as of June 30, 2023 and was determined by an
actuarial valuation as of that date.
F.
Actuarial Assumptions and Other Inputs
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit cost between the employer and plan
members to that point. The total OPEB liability in the June 30, 2023 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, 2023
Actuarial valuation date
June 30, 2023
Discount rate
3.65%
Inflation rate
2.3% - 2.5%
Projected salary increases
Vary depending on retirement plan and
years of service from 2.9% - 8.4%
Health care cost trend rates
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
PubS-2010 Headcount Weighted for disabled retirees.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
83
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, continued
G. Changes in the Total OPEB Liability
Total OPEB liability - beginning of year
$ 73,012,042
Changes for the year:
Service cost
3,516,892
Interest
2,654,511
Changes of benefit terms
1,330,772
Differences between expected and actual
experience
1,267,071
Changes in assumptions or other inputs
(1,615,465)
Estimated benefit payments
(3,112,569)
Net changes
4,041,212
Total OPEB liability - end of year
$ 77,053,254
Changes in assumptions reflect the following:
1.
The discount rate increased from 3.54% to 3.65% based on the changes in the Bond Buyer 20 GO
index municipal bond rate from June 30, 2022 to June 30, 2023.
2.
The future trend rates, per capita health costs and retiree contribution rates were updated.
3.
The actuarial factors used to estimate individual retiree and spouse costs by age and by gender
were updated.The new factors are based on a review of historical claims experience by age, gender
and status (active vs retired) from Segal's claims data warehouse.
4.
The methodology for projecting life insurance benefits for current active employees was refined to
better reflect future salary increases.
H. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the city, as well as what the city’s total OPEB liability would
be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher
than the current rate:
1% Decrease
(2.65%)
Current Discount
Rate (3.65%)
1% Increase
(4.65%)
Total OPEB liability
$
86,748,547 $
77,053,254 $
69,076,193
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
84
NOTE 11 - Post-Employment Benefits Other Than Pensions - Single Employer Plan, concluded
I.
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rates
The following presents the total OPEB liability of the city, as well as what the city’s total OPEB liability would
be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-
point higher than the current rate:
1% Decrease
(6.50%)
Current
Healthcare Cost
Trend Rates
(7.50%)
1% Increase
(8.50%)
Total OPEB liability
$
72,393,083 $
77,053,254 $
82,535,786
J.
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
OPEB
For the year ended June 30, 2024, the city recognized OPEB expense of $6,358,038. At June 30, 2024, the city
reported deferred outflows of resources and deferred inflows of resources related to OPEB from the
following sources:
Deferred
Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual experience
$
1,065,308 $
3,102,929
Changes of assumptions or other inputs
13,825,097
10,817,927
Contributions subsequent to measurement date
4,402,073
—
Total
$
19,292,478 $
13,920,856
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, 2025. 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:
2025
$
210,982
2026
1,503,851
2027
1,238,692
2028
(1,302,261)
2029
(666,183)
Thereafter
(15,532)
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
85
NOTE 12 - Commitments and Contingencies
The city is subject to a number of lawsuits, investigations, and other claims (some of which involve alleged
damages in substantial amounts) that are incidental to the ordinary course of its operations, including those
related to property damage and personal injury matters as well as alleged civil rights violations. All cases are
being vigorously defended by the City of Chandler both as to liability as well as the amount of damages
claimed. Although the City Attorney cannot reasonably estimate the actual results upon disposition of the
outstanding cases, some could be significant to the city’s operations, which is why the city not only self-
insures with a $1,750,000 liability retention, but carries an additional $30,000,000 in liability insurance
policies which are in excess of its self-insured retention. While the ultimate resolution of such lawsuits,
investigations and claims cannot be determined at this time, in the opinion of city management (based on
the advice of the City Attorney), the resolution of these matters will not have a material adverse effect on the
city’s financial position.
NOTE 13 - Risk Management
The city is exposed to various risks of loss related to litigation, claims and torts; theft of, damage to and
destruction of assets; errors and omissions; employee health claims; and natural disasters (for which the
city carries commercial insurance). The city established a Self-Insurance Fund (an Internal Service Fund) to
account for and finance its uninsured risks of loss. This fund is broken down into the following areas:
workers’ compensation insurance, property and liability insurance, health insurance, dental insurance and
short-term disability insurance.
Premiums are paid into the Internal Service Fund by all other funds with personnel services for workers’
compensation insurance and by the general fund for property and liability insurance. The premiums are
available to pay claims, fund claim reserves and pay administrative costs of the program. As with any risk
retention program, the city is contingently liable with respect to claims beyond those actuarially projected.
Interfund premiums are used to reduce the amount of claim expenditures reported in the Internal Service
Fund. In the opinion of city management, based on the advice of the City Attorney, the outcome of such
litigation and claims will not have a materially adverse effect on the city’s financial position.
In fiscal year 2023-24, the Self-Insurance Fund provided coverage for up to a maximum of $100,000 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 $1,500,000 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 2023-24, 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 $23,813,895 reported as claims payable in the Self-Insurance Fund at June 30, 2024, 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.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
86
NOTE 13 - Risk Management, concluded
Changes in the Funds' claims liability amount in fiscal years 2023 and 2024 were:
Current Year
Year
Beginning of
Claims and
Balance at
Ended
Fiscal Year
Changes in
Claim
Fiscal Year
June 30,
Risk of Loss
Balance
Estimates
Payments
End
2023
Workers' compensation
$ 10,544,362 $
2,046,987 $ (1,476,205) $ 11,115,144
Property and liability
1,772,560
1,332,130
(130,240)
2,974,450
Health
4,418,590
24,959,337 (23,870,356)
5,507,571
Dental
175,618
2,027,950
(2,029,458)
174,110
$ 16,911,130 $ 30,366,404 $ (27,506,259) $ 19,771,275
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
2024
Workers' compensation
$ 11,115,144 $
2,009,949 $ (1,406,687) $ 11,718,406
Property and liability
2,974,450
2,782,647
(226,805)
5,530,292
Health
5,507,571
26,512,800 (25,642,900)
6,377,471
Dental
174,110
2,142,895
(2,129,279)
187,726
$ 19,771,275 $ 33,448,291 $ (29,405,671) $ 23,813,895
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,
$21,118,057. The General Fund provides funding for various capital projects, $38,475,887, as well as annual
subsidies for the Airport and Public Housing Authority, $1,116,617. Bond payments totaling $7,436,432 to
General Obligation Bonds Debt Service Fund from Non-Major Governmental Funds for bond repayments.
$1,388,800 from Wastewater Enterprise Fund to Water Enterprise Fund for expenses paid that reclaimed
water programs benefit from and $1,325,116 from Water Enterprise Fund to Wastewater Enterprise Fund
for subsidies from the water fund as a result of a recent cost-of-service study.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
87
NOTE 14 - Interfund Transfers, concluded
The interfund transfers in and out at June 30, 2024 are as follows:
Transfers In:
Transfers out:
General
Obligation
Bonds Debt
Service
Fund
Non-Major
Govern-
mental Funds
Water
Enterprise
Fund
Wastewater
Enterprise
Fund
Non-Major
Enterprise
Funds
Internal
Service Fund
Total
General Fund
$
— $ 44,557,649 $
— $
— $ 1,116,617 $ 14,340,000 $ 60,014,266
Non-Major
Governmental
Funds
7,436,432
680,802
—
—
—
95,000
8,212,234
Water
Enterprise Fund
—
392,774
—
1,325,116
—
500,000
2,217,890
Wastewater
Enterprise Fund
—
302,766 1,388,800
—
—
—
1,691,566
Non-Major
Enterprise
Funds
—
150,049
—
—
—
—
150,049
Internal Service
Fund
—
29,608
—
—
—
—
29,608
Total
$ 7,436,432 $ 46,113,648 $ 1,388,800 $ 1,325,116 $ 1,116,617 $ 14,935,000 $ 72,315,613
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 $1,298,832 (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
$ 4,302,432
Capital projects - public buildings
1,328,401
Total governmental funds
$ 5,630,833
Interfund advances were made from governmental funds to capital projects funds to cover expenditures in
impact fee funds until impact fees are received. $550,000 of the public safety buildings and improvements
capital projects fund advances and $100,000 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, 2024
88
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
$ 5,897,267
Special revenue - community development
195,934
Total general fund
$ 6,093,201
Interfund balances at June 30, 2024 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, 2024, is:
City of Chandler's Share
$ 60,132,727
Town of Gilbert's Share
66,408,388
$ 126,541,115
NOTE 17 - Deficit in Fund Balances
The grants capital project fund had a deficit fund balance of $5,926,272. The public safety building and
improvement capital project fund had a deficit of $3,628,423. The deficit in these funds will be covered by
future 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 2023-24 is $414,330. Detailed information on such
commitments is prohibited from disclosure under Arizona Revised Statute 42-2002, Disclosure of
Confidential Information Prohibited, and City of Chandler Code, 62-510 Divulging of Information Prohibited.
In addition, the city enters into property tax abatement agreements under Arizona Revised Statute 42-6201
through 42-6210, Government Property Lease Excise Tax (GPLET) to enhance the economic viability of the
city. The recipients of the GPLET commit to conveying the property to the city upon the project completion
and the city will lease it back to the recipient for an agreed upon amount. State law imposes an excise tax on
buildings that are owned by the city, leased by a private party and occupied/used for commercial, residential
rental or industrial purposes. The city is allowed to abate the full tax for a period of eight years for both
existing and new projects within redevelopment area that are part of a single central business district. After
the abatement period the projects pay an excise tax in which the city receives a 7 percent distribution.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
89
NOTE 18 - Tax Abatements, concluded
For the fiscal year ended June 30, 2024, the city abated property taxes totaling $224,972 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 $146,903 of property tax abated.
NOTE 19 - Leases
As lessor, the city has entered into lease agreements involving land for wireless towers, 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 $325,082.
NOTE 20 - Subscription Based IT Arrangements
The city has obtained the right to use various desktop and server software, cloud backup services, risk
management software, budget and accounting reporting software, and other intangible right-to-use
software under the provisions of various subscription-based information technology arrangements (SBITAs).
The total of the city's subscriptions assets are recorded at $7,622,440 less accumulated amortization of
$2,557,797.
The future subscription payments under the SBITA agreements are as follows:
Principal
Interest
Total
2025 $
2,200,163
$
103,147
$
2,303,310
2026
2,249,669
58,735
2,308,404
2027
73,112
5,598
78,710
2028
44,026
1,314
45,340
2029
12,694
306
13,000
In addition to the amount presented above, the city had outflows of resources for the fiscal year totaling
$175,725 that were not included in the measurement of the subscription liability.
NOTE 21 - Public Private Partnerships (PPP)
The city as transferor has entered into a public-private partnership agreement to operate a golf course. The
city owns title to the premise and all improvements therein. The city uses its own estimated incremental
borrowing rate as the discount rate to measure PPP receivables. The city's estimated incremental borrowing
rate is calculated at 2.41%. The city received $13,993 in variable payments not included in the measurement
of the receivable that are determined based on the number of rounds of golf. The amount of asset and
deferred inflow of resources recognized during the fiscal year for the PPP were $101,356.
CITY OF CHANDLER, ARIZONA
Notes to the Financial Statements
June 30, 2024
90
REQUIRED SUPPLEMENTARY INFORMATION
91
92
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund
For the year ended June 30, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
8,731,611
$
8,731,611
$
8,638,574
$
(93,037)
Sales taxes
197,950,200
197,950,200
208,766,241
10,816,041
Franchise fees
3,779,200
3,779,200
3,691,281
(87,919)
State shared
126,000,000
126,000,000
133,384,945
7,384,945
Grants and entitlements
254,000
254,000
1,256,168
1,002,168
Licenses and permits
6,864,900
6,864,900
5,103,244
(1,761,656)
Charges for services
22,609,162
22,609,162
27,360,667
4,751,505
Fines and forfeitures
3,549,850
3,549,850
4,296,570
746,720
Rentals
69,400
69,400
138,115
68,715
Interest revenue
3,818,000
3,818,000
11,968,388
8,150,388
Miscellaneous
240,800
240,800
356,943
116,143
Total Revenues
373,867,123
373,867,123
404,961,136
31,094,013
EXPENDITURES:
City clerk
836,937
1,081,978
1,011,589
70,389
City magistrate
5,400,966
5,617,814
4,631,551
986,263
City manager
24,179,136
25,874,379
22,646,357
3,228,022
Communications and public affairs
3,779,435
4,275,116
3,612,555
662,561
Community services
33,254,368
35,744,230
33,644,527
2,099,703
Development services
10,909,200
11,384,185
9,879,838
1,504,347
Fire
44,718,000
50,431,220
49,313,966
1,117,254
Information technology
21,296,574
24,168,926
13,910,783
10,258,143
Law
4,687,089
4,831,140
4,764,898
66,242
Management services
176,838,766
145,531,851
85,091,501
60,440,350
Mayor and council
1,260,246
1,301,079
1,195,932
105,147
Neighborhood resources
7,235,057
10,864,014
8,900,276
1,963,738
Police
90,885,675
102,081,519
103,920,892
(1,839,373)
Public works
10,449,269
12,208,515
11,754,446
454,069
Total expenditures
435,730,718
435,395,966
354,279,111
81,116,855
REVENUES OVER (UNDER) EXPENDITURES
(61,863,595)
(61,528,843)
50,682,025
112,210,868
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
(300,000)
(300,000)
204,412
504,412
Transfers in
8,678,182
8,678,182
—
(8,678,182)
Transfers out
(157,941,465)
(157,899,207)
(60,014,266)
97,884,941
Total other financing sources (uses)
(149,563,283)
(149,521,025)
(59,809,854)
89,711,171
Net change in fund balance
(211,426,878)
(211,049,868)
(9,127,829)
201,922,039
Fund balance, July 1, 2023
315,933,321
315,933,321
315,933,321
—
Fund balance, June 30, 2024
$
104,506,443
$
104,883,453
$
306,805,492
$
201,922,039
See accompanying notes to this schedule.
93
City of Chandler
Schedule of the Proportionate Share of the Net Pension Liability -
Arizona State Retirement System
June 30, 2024
2024
2023
2022
2021
City's proportion of the net pension
liability (asset)
0.68 %
0.67 %
0.71 %
0.71 %
City's proportionate share of the net
pension liability (asset)
$ 110,384,963
$ 110,127,657
$ 93,397,278
$ 122,547,011
City's covered payroll
$ 89,064,154
$ 79,760,571
$ 79,544,042
$ 76,880,601
City's proportionate share of the net
pension liability (asset) as a
percentage of its covered payroll
123.94 %
138.07 %
117.42 %
159.40 %
Plan fiduciary net position as a
percentage of the total
pension liability
75.47 %
74.26 %
78.58 %
69.33 %
94
2020
2019
2018
2017
2016
2015
0.72 %
0.76 %
0.74 %
0.75 %
0.73 %
0.71 %
$ 104,541,379
$ 106,413,043
$ 115,691,952
$ 121,549,835
$ 113,885,153
$ 105,661,552
$ 75,407,689
$ 75,579,140
$ 72,284,183
$ 70,362,938
$ 67,230,465
$ 64,263,236
138.63 %
140.80 %
160.05 %
172.75 %
169.40 %
164.42 %
73.24 %
73.00 %
69.92 %
67.06 %
68.35 %
69.49 %
95
City of Chandler
Schedule of Contributions -
All Pension Plans
June 30, 2024
2024
2023
2022
2021
Arizona State Retirement System:
Actuarially determined contribution
$ 11,771,461
$ 10,615,589
$ 9,580,356
$ 9,267,255
Contributions in relation to the
actuarially determined contribution
11,771,461
10,615,589
9,580,356
9,267,255
Contribution deficiency (excess)
$
—
$
—
$
—
$
—
City's covered payroll
$ 98,335,614
$ 89,064,154
$ 79,760,571
$ 79,544,042
Contributions as a percentage
of covered payroll
11.97 %
11.92 %
12.01 %
11.65 %
Public Safety Personnel Retirement
System - Police:
Actuarially determined contribution
$ 47,624,383
$ 28,044,847
$ 22,596,733
$ 19,026,392
Contributions in relation to the
actuarially determined contribution
1
64,251,229
47,644,130
28,025,675
22,619,456
Contribution deficiency (excess)
$ (16,626,846)
$ (19,599,283)
$ (5,428,942)
$ (3,593,064)
City's covered payroll
$ 33,621,797
$ 30,351,106
$ 27,383,139
$ 26,480,082
Contributions as a percentage
of covered payroll
191.10 %
156.98 %
102.35 %
85.42 %
Public Safety Personnel Retirement
System - Fire:
Actuarially determined contribution
$ 24,643,731
$ 15,211,791
$ 13,299,020
$ 10,427,865
Contributions in relation to the
actuarially determined contribution
1
30,895,099
24,395,278
14,992,742
13,054,192
Contribution deficiency (excess)
$ (6,251,368)
$ (9,183,487)
$ (1,693,722)
$ (2,626,327)
City's covered payroll
$ 21,920,009
$ 20,259,508
$ 18,946,241
$ 18,187,540
Contributions as a percentage
of covered payroll
140.94 %
120.41 %
79.13 %
71.78 %
1Additional contributions above the actuarially determined contributions were made beginning with fiscal year
2016-17 and continue.
96
2020
2019
2018
2017
2016
2015
$ 8,844,068
$ 8,470,741
$ 8,268,029
$ 7,793,041
$ 7,634,805
$ 7,323,872
8,844,068
8,470,741
8,268,029
7,793,041
7,634,805
7,323,872
$
—
$
—
$
—
$
—
$
—
$
—
$ 76,880,601
$ 75,407,689
$ 75,579,140
$ 72,284,183
$ 70,362,938
$ 67,230,465
11.50 %
11.23 %
10.94 %
10.78 %
10.85 %
10.89 %
$ 15,572,686
$ 12,267,559
$ 10,950,501
$ 8,470,411
$ 8,561,143
$ 6,083,333
28,715,343
15,398,196
14,300,501
10,145,411
8,561,143
6,083,333
$ (13,142,657)
$ (3,130,637)
$ (3,350,000)
$ (1,675,000)
$
—
$
—
$ 28,589,014
$ 28,848,732
$ 28,294,661
$ 27,058,086
$ 27,946,237
$ 26,187,641
100.44 %
53.38 %
50.54 %
37.49 %
30.63 %
23.23 %
$ 8,004,060
$ 7,021,133
$ 6,392,313
$ 4,616,587
$ 4,438,495
$ 3,193,139
15,566,324
8,670,333
8,042,313
5,441,587
4,438,495
3,193,139
$ (7,562,264)
$ (1,649,200)
$ (1,650,000)
$
(825,000)
$
—
$
—
$ 19,154,805
$ 19,025,780
$ 18,200,175
$ 17,275,940
$ 16,874,362
$ 15,671,133
81.27 %
45.57 %
44.19 %
31.50 %
26.30 %
20.38 %
97
City of Chandler
Schedule of Changes in the Net Pension Liability and Related Ratios -
Public Safety Personnel Retirement System - Police
June 30, 2024
2024
2023
2022
2021
Total pension liability
Service cost
$
6,077,100
$
5,687,800
$
5,440,836
$
5,696,125
Interest
24,895,921
23,623,567
22,385,115
20,504,731
Changes of benefit terms
—
—
—
—
Differences between expected and actual
experience
15,926,154
4,884,171
3,894,134
12,866,840
Changes of assumptions
—
3,565,456
—
—
Benefit payments, including refunds
(15,578,228)
(16,390,013)
(13,613,884)
(12,493,545)
Net change in total pension liability
31,320,947
21,370,981
18,106,201
26,574,151
Total pension liability - beginning
347,488,701
326,117,720
308,011,519
281,437,368
Total pension liability - ending
$ 378,809,648
$ 347,488,701
$ 326,117,720
$ 308,011,519
Plan fiduciary net position
Contributions - employer
$
47,624,383
$
28,044,847
$
22,596,733
$
28,799,919
Contributions - employee
2,989,074
2,844,468
2,424,870
2,909,915
Net investment income
22,150,142
(10,549,363)
53,483,321
2,344,516
Benefit payments, including refunds
(15,578,228)
(16,390,013)
(13,613,884)
(12,493,545)
Administrative expense
(106,671)
(190,200)
(250,715)
(191,143)
Other
1,986
5,998
2,439
(2,317)
Net change in plan fiduciary net position
57,080,686
3,765,737
64,642,764
21,367,345
Plan fiduciary net position - beginning
248,188,100
244,422,363
179,779,599
158,412,254
Plan fiduciary net position - ending
$ 305,268,786
$ 248,188,100
$ 244,422,363
$ 179,779,599
Net pension liability - ending
$
73,540,862
$
99,300,601
$
81,695,357
$ 128,231,920
Plan fiduciary net position as a percentage of
the total pension liability
80.59 %
71.42 %
74.95 %
58.37 %
Covered payroll
$
30,351,106
$
27,383,139
$
26,480,082
$
28,859,014
Net pension liability as a percentage of
covered payroll
242.30 %
362.63 %
308.52 %
444.34 %
98
2020
2019
2018
2017
2016
2015
$
6,149,336
$
5,737,868
$
6,092,332
$
5,337,103
$
4,583,770
$
4,602,603
19,203,025
17,999,842
17,064,596
14,964,498
13,839,509
11,841,118
—
—
1,501,042
17,456,919
—
1,741,535
1,302,509
(671,252)
(6,211,672)
858,761
4,879,849
567,380
6,562,499
—
6,528,203
8,537,784
—
13,082,165
(10,261,998)
(9,913,263)
(8,254,947)
(13,015,625)
(5,681,836)
(7,054,499)
22,955,371
13,153,195
16,719,554
34,139,440
17,621,292
24,780,302
258,481,997
245,328,802
228,609,248
194,469,808
176,848,516
152,068,214
$ 281,437,368
$ 258,481,997
$ 245,328,802
$ 228,609,248
$ 194,469,808
$ 176,848,516
$
15,572,686
$
10,296,409
$
10,247,877
$
8,728,082
$
6,155,142
$
5,465,059
2,206,379
2,765,932
3,244,412
3,633,359
3,308,265
2,675,724
8,365,394
9,301,979
14,017,325
677,501
3,873,466
12,329,319
(10,261,998)
(9,913,263)
(8,254,947)
(13,015,625)
(5,681,836)
(7,054,499)
(146,042)
(142,274)
(124,430)
(97,889)
(94,891)
—
(102,911)
24,215
(167,280)
238,667
(70,777)
(2,733,237)
15,633,508
12,332,998
18,962,957
164,095
7,489,369
10,682,366
142,778,746
130,445,748
111,482,791
111,318,696
103,829,327
93,146,961
$ 158,412,254
$ 142,778,746
$ 130,445,748
$ 111,482,791
$ 111,318,696
$ 103,829,327
$ 123,025,114
$ 115,703,251
$ 114,883,054
$ 117,126,457
$
83,151,112
$
73,019,189
56.29 %
55.24 %
53.17 %
48.77 %
57.24 %
58.71 %
$
28,848,732
$
28,294,661
$
27,058,086
$
27,946,237
$
26,187,641
$
24,290,497
426.45 %
408.92 %
424.58 %
419.11 %
317.52 %
300.61 %
99
City of Chandler
Schedule of Changes in the Net Pension Liability and Related Ratios -
Public Safety Personnel Retirement System - Fire
June 30, 2024
2024
2023
2022
2021
Total pension liability
Service cost
$
4,818,001
$
4,265,733
$
3,923,796
$
4,025,473
Interest
15,003,773
14,270,752
13,243,975
12,453,112
Changes of benefit terms
—
—
—
—
Differences between expected and actual
experience
7,784,656
397,039
4,097,391
1,086,650
Changes of assumptions
—
1,375,658
—
—
Benefit payments, including refunds
(7,829,127)
(8,101,828)
(6,981,473)
(6,278,162)
Net change in total pension liability
19,777,303
12,207,354
14,283,689
11,287,073
Total pension liability - beginning
207,482,293
195,274,939
180,991,250
169,704,177
Total pension liability - ending
$ 227,259,596
$ 207,482,293
$ 195,274,939
$ 180,991,250
Plan fiduciary net position
Contributions - employer
$
24,643,731
$
15,211,791
$
13,299,020
$
15,654,338
Contributions - employee
2,063,374
1,610,854
1,778,804
1,432,043
Net investment income
13,853,029
(6,745,327)
34,335,848
1,488,011
Benefit payments, including refunds
(7,829,127)
(8,101,828)
(6,981,473)
(6,278,162)
Administrative expense
(60,174)
(121,595)
(160,215)
(121,320)
Other
—
—
4,795
5
Net change in plan fiduciary net position
32,670,833
1,853,895
42,276,779
12,174,915
Plan fiduciary net position - beginning
159,680,979
157,827,084
115,550,305
103,375,390
Plan fiduciary net position - ending
$ 192,351,812
$ 159,680,979
$ 157,827,084
$ 115,550,305
Net pension liability - ending
$
34,907,784
$
47,801,314
$
37,447,855
$
65,440,945
Plan fiduciary net position as a percentage of
the total pension liability
84.64 %
76.96 %
80.82 %
63.84 %
Covered payroll
$
20,259,508
$
18,946,241
$
18,187,540
$
19,154,805
Net pension liability as a percentage of
covered payroll
172.30 %
252.30 %
205.90 %
341.64 %
100
2020
2019
2018
2017
2016
2015
$
4,353,346
$
4,014,526
$
3,863,571
$
3,174,665
$
2,915,603
$
2,949,507
11,689,082
10,794,299
9,983,423
8,707,808
8,264,915
7,191,487
—
—
753,382
10,272,193
—
930,663
(171,678)
1,014,752
941,823
96,063
(1,037,307)
(409,426)
3,122,509
—
2,845,297
4,937,927
—
6,465,545
(5,792,594)
(6,363,418)
(5,049,317)
(5,647,270)
(3,614,319)
(3,258,846)
13,200,665
9,460,159
13,338,179
21,541,386
6,528,892
13,868,930
156,503,512
147,043,353
133,705,174
112,163,788
105,634,896
91,765,966
$ 169,704,177
$ 156,503,512
$ 147,043,353
$ 133,705,174
$ 112,163,788
$ 105,634,896
$
8,004,060
$
5,956,704
$
5,514,825
$
4,672,177
$
3,222,291
$
3,152,694
1,462,348
1,633,743
2,312,753
2,140,037
1,837,291
1,775,319
5,389,738
6,174,093
9,228,731
440,223
2,568,880
8,217,832
(5,792,594)
(6,363,418)
(5,049,317)
(5,647,270)
(3,614,319)
(3,258,846)
(94,355)
(94,669)
(82,059)
(63,746)
(63,063)
—
(42,251)
1,035
50,502
38,948
(55,142)
(1,798,718)
8,926,946
7,307,488
11,975,435
1,580,369
3,895,938
8,088,281
94,448,444
87,140,956
75,165,521
73,585,152
69,689,214
61,600,933
$ 103,375,390
$
94,448,444
$
87,140,956
75,165,521
73,585,152
69,689,214
$
66,328,787
$
62,055,068
$
59,902,397
$
58,539,653
$
38,578,636
$
35,945,682
60.92 %
60.35 %
59.26 %
56.22 %
65.61 %
65.97 %
$
19,025,780
$
18,200,175
$
17,275,940
$
16,874,362
$
15,671,133
$
15,691,213
348.63 %
340.96 %
346.74 %
346.91 %
246.18 %
229.08 %
101
City of Chandler
Schedule of Changes in OPEB Liabilities and Related Ratios -
Single Employer Plan
June 30, 2024
2024
2023
2022
Measurement date
6/30/2023
6/30/2022
6/30/2021
Total OPEB liability - beginning of year
$ 73,012,042
$ 81,921,795
$ 63,003,983
Changes for the year
Service cost
3,516,892
4,846,361
3,414,033
Interest
2,654,511
1,844,376
1,440,322
Changes of benefit terms
1,330,772
—
—
Differences between expected and actual experience
1,267,071
—
(2,181,125)
Changes in assumptions or other inputs
(1,615,465)
(12,824,888)
18,748,388
Benefit payments
(3,112,569)
(2,775,602)
(2,503,806)
Net changes
4,041,212
(8,909,753)
18,917,812
Total OPEB liability - end of year
$ 77,053,254
$ 73,012,042
$ 81,921,795
Total covered employee payroll
$ 157,665,425
$ 142,472,650
$ 130,254,557
Total OPEB liability as percentage of covered employee
payroll
48.87 %
51.25 %
62.89 %
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.
102
2021
2020
2019
2018
6/30/2020
6/30/2019
6/30/2018
6/30/2017
$ 53,112,727
$ 51,751,856
$ 52,838,811
$ 66,519,700
2,940,955
2,585,397
3,020,484
3,962,284
1,921,296
2,059,914
1,939,376
1,967,447
—
—
—
—
—
(5,086,575)
(883,708)
(8,539,064)
7,368,121
4,021,143
(1,789,527)
(8,174,073)
(2,339,116)
(2,219,008)
(3,373,580)
(2,897,483)
9,891,256
1,360,871
(1,086,955)
(13,680,889)
$ 63,003,983
$ 53,112,727
$ 51,751,856
$ 52,838,811
$ 116,931,839
$ 113,713,741
$ 108,862,317
$ 106,207,139
53.88 %
46.71 %
47.54 %
49.75 %
103
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
Statement of Revenues, Expenditures and Changes in
Fund Balances- Net change in fund balance
$
3,016,949
Reserved encumbrances at June 30, 2024 recognized as
budgetary expenditures in fiscal year ended June 30, 2024
(12,144,778)
Budgetary Comparison Schedule - Net change in fund
balance
$
(9,127,829)
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, 2022 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, 2021 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, 2023 valuation for PSPRS were based on the results of an
actuarial experience study for the period ending June 30, 2022. 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, 2023 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, 2024
104
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, 2023 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, 2024
105
106
OTHER FINANCIAL STATEMENTS
107
108
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Property taxes
$
34,130,824
$
34,130,824
$
33,811,272
$
(319,552)
Interest revenue
175,000
175,000
694,225
519,225
Total revenues
34,305,824
34,305,824
34,505,497
199,673
EXPENDITURES:
General government
375,152
375,152
—
(375,152)
Principal
36,464,231
36,464,231
33,101,936
(3,362,295)
Interest and fiscal charges
4,902,873
4,902,873
7,740,607
2,837,734
Total expenditures
41,742,256
41,742,256
40,842,543
(899,713)
Excess (deficiency) of revenues over
expenditures
(7,436,432)
(7,436,432)
(6,337,046)
1,099,386
OTHER FINANCING SOURCES (USES):
Transfers in
7,436,432
7,436,432
7,436,432
—
Total other financing sources (uses)
7,436,432
7,436,432
7,436,432
—
Net change in fund balance
—
—
1,099,386
1,099,386
Fund balance, July 1, 2023
2,427,863
2,427,863
2,427,863
—
Fund balance, June 30, 2024
$
2,427,863
$
2,427,863
$
3,527,249
$
1,099,386
Statement of Revenues, Expenditures and Changes in Fund
Balances - General Obligation Bonds Debt Service Fund
$
(781,541)
Settlements and liabilities at June 30, 2024 not recognized as
budgetary expenditures in fiscal year ended June 30, 2024
1,880,927
Budgetary Comparison Schedule for the General Obligation
Bonds Debt Service Fund
$
1,099,386
109
NON-MAJOR SPECIAL REVENUE FUNDS
A Special Revenue Fund is used to finance particular activities and is created out of receipts of specific taxes
or other earmarked revenues. Such funds are authorized by statutory or charter provisions to pay for
certain activities with some special form of continuing revenues.
Highway User
Used to account for the receipt and expenditure of the city’s allocation of state highway user taxes. State
law restricts the use of these monies to maintenance, construction and reconstruction of streets and
repayment of transportation-related debt.
Local Transportation Assistance
Used to account for the receipt and expenditure of the city’s allocation of state lottery monies. State law
restricts the use of these monies to street and highway projects in the public right-of-way and to mass
transportation purposes.
Grants
Used to account for the receipt and expenditure of miscellaneous federal, state and local grants awarded to
the city for various specific operational purposes.
Community Development
Used to account for monies received from the U.S. Department of Housing and Urban Development and
Maricopa County for affordable housing activities including housing rehabilitation and redevelopment
activities.
Police Confiscated Property
Used to account for monies confiscated by the Police Department and monies received from the sale of
confiscated property.
Parks and Recreation
Used to account for donations for park improvements and programs restricted pursuant to donor
covenants.
Museum
Used to account for donations for museum improvements and programs restricted pursuant to donor
covenants.
Library
Used to account for donations for library improvements and programs restricted pursuant to donor
covenants.
City of Chandler
Non-Major Governmental Funds
110
NON-MAJOR DEBT SERVICE FUNDS
Special Assessment Bonds
Accumulates monies for the payment of principal and interest on Special Assessment Bonds that were
issued to finance costs of improvements applicable to benefiting properties within certain improvement
districts.
NON-MAJOR CAPITAL PROJECTS FUNDS
General Government
Used to account for the acquisition, construction and improvements of general government projects.
Public Buildings
Used to account for 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
111
112
City of Chandler
Combining Balance Sheet -
Non-Major Governmental Funds
June 30, 2024
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Grants
Development
Property
Recreation
ASSETS
Equity in pooled cash and investments
$ 45,181,297
$
6,189,813
$ 12,599,923 $
—
$
724,267
$ 334,420
Receivables (net of allowance
for uncollectible):
Accounts
—
—
—
—
—
—
Notes
—
—
—
417,320
—
—
Accrued interest
246,032
34,205
—
—
3,257
1,846
Other
—
—
—
—
—
—
Due from other governments
2,185,205
—
302,805
319,071
2,400
—
Total assets
$ 47,612,534
$
6,224,018
$ 12,902,728 $
736,391
$
729,924
$ 336,266
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$ 1,716,712
$
166
$
95,415
$
24,430
$
—
$
—
Accrued payroll
199,270
1,160
82,114
31,654
—
3,340
Trust liabilities and deposits
—
—
—
—
423,552
—
Due to other funds
—
—
—
195,934
—
—
Advances from other funds
—
—
—
—
—
—
Unearned revenue
—
—
3,137,969
—
—
—
Total liabilities
1,915,982
1,326
3,315,498
252,018
423,552
3,340
Fund balances (deficits):
Restricted
45,696,552
6,222,692
9,587,230
484,373
306,372
332,926
Assigned
—
—
—
—
—
—
Unassigned
—
—
—
—
—
—
Total fund balances (deficits)
45,696,552
6,222,692
9,587,230
484,373
306,372
332,926
Total liabilities, deferred inflows
and fund balances
$ 47,612,534
$
6,224,018
$ 12,902,728 $
736,391
$
729,924
$ 336,266
(Continued)
113
City of Chandler
Combining Balance Sheet -
Non-Major Governmental Funds
June 30, 2024
Special Revenue
Debt Service
Capital Projects
Special
Assessment
General
Public
Museum
Library
Bonds
Government
Buildings
Grants
ASSETS
Equity in pooled cash and investments
$
38,612
$
225,277
$
—
$ 2,584,209
$ 1,779,637
$
—
Receivables (net of allowance
for uncollectible):
Accounts
—
—
—
64,413
—
—
Notes
—
—
—
—
—
—
Accrued interest
212
1,257
—
—
5,184
—
Other
—
—
—
464,513
122,746
224,756
Due from other governments
—
—
—
291,088
—
1,170,188
Total assets
$
38,824
$
226,534
$
—
$ 3,404,223
$ 1,907,567
$ 1,394,944
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
$
—
$
125
$
—
$ 2,890,029
$
220,130
$ 1,423,949
Accrued payroll
—
—
—
—
—
—
Trust liabilities and deposits
—
—
—
—
—
—
Due to other funds
—
—
—
—
—
5,897,267
Advances from other funds
—
—
—
—
1,328,401
—
Unearned revenue
—
—
—
—
—
—
Total liabilities
—
125
—
2,890,029
1,548,531
7,321,216
Fund balances (deficits):
Restricted
38,824
226,409
—
—
359,036
—
Assigned
—
—
—
514,194
—
—
Unassigned
—
—
—
—
—
(5,926,272)
Total fund balances (deficits)
38,824
226,409
—
514,194
359,036
(5,926,272)
Total liabilities, deferred inflows
and fund balances
$
38,824
$
226,534
$
—
$ 3,404,223
$ 1,907,567
$ 1,394,944
114
Capital Projects
Public Safety
Vehicle and
Total Other
Community
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Streets
Services
Improvements
Replacement
Replacement
Arts
Funds
$
87,230,094
$
72,657,134
$
1,098,741
$
12,567,158
$
9,829,355
$
986,318
$
254,026,255
—
—
—
—
—
—
64,413
—
—
—
—
—
—
417,320
374,314
267,364
5,550
70,072
54,849
5,418
1,069,560
—
—
—
—
—
—
812,015
—
—
—
—
—
—
4,270,757
$
87,604,408
$
72,924,498
$
1,104,291
$
12,637,230
$
9,884,204
$
991,736
$
260,660,320
$
2,653,687
$
4,207,848
$
430,282
$
166,707
$
58,666
$
—
$
13,888,146
—
—
—
—
—
—
317,538
5
—
—
—
—
—
423,557
—
—
—
—
—
—
6,093,201
—
—
4,302,432
—
—
—
5,630,833
—
—
—
—
—
—
3,137,969
2,653,692
4,207,848
4,732,714
166,707
58,666
—
29,491,244
84,950,716
68,716,650
—
12,470,523
9,825,538
991,736
240,209,577
—
—
—
—
—
514,194
—
—
(3,628,423)
—
—
—
(9,554,695)
84,950,716
68,716,650
(3,628,423)
12,470,523
9,825,538
991,736
231,169,076
$
87,604,408
$
72,924,498
$
1,104,291
$
12,637,230
$
9,884,204
$
991,736
$
260,660,320
(Concluded)
115
City of Chandler
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Non-Major Governmental Funds
For the year ended June 30, 2024
Special Revenue
Local
Police
Highway
Transportation
Community
Confiscated
Parks and
User
Assistance
Grants
Development
Property
Recreation
REVENUES:
Highway user taxes
$ 21,430,580
$
—
$
—
$
—
$
—
$
—
Grants and entitlements
—
702,551
9,544,356
1,779,518
—
91,601
System development fees
—
—
—
—
—
—
Charges for services
—
182,189
—
—
—
—
Fines and forfeitures
—
—
—
—
725,712
—
Contributions
—
—
—
—
—
—
Interest revenue
1,844,043
251,761
1,236,611
1
—
13,784
Miscellaneous
119,740
83,285
—
—
—
89
Total revenues
23,394,363
1,219,786
10,780,967
1,779,519
725,712
105,474
EXPENDITURES:
Current:
General government
—
—
1,824,716
1,598,153
—
11,874
Public safety
—
—
4,531,779
—
354,706
—
Transportation and development
8,488,131
664,281
2,060,815
—
—
—
Community services
—
—
1,037,477
—
—
69,475
Capital outlay
13,582,668
—
1,573,728
49,348
—
7,168
Debt service:
Bond issuance costs
—
—
—
—
—
—
Total expenditures
22,070,799
664,281
11,028,515
1,647,501
354,706
88,517
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
1,323,564
555,505
(247,548)
132,018
371,006
16,957
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
—
—
—
—
—
Bond premium
—
—
—
—
—
—
Face amount of bonds issued
—
—
—
—
—
—
Transfers in
—
—
—
—
—
—
Transfers out
(271,590)
(4,212)
(500,000)
—
—
—
Total other financing sources (uses)
(271,590)
(4,212)
(500,000)
—
—
—
NET CHANGE IN FUND BALANCE
1,051,974
551,293
(747,548)
132,018
371,006
16,957
FUND BALANCES (DEFICITS):
Beginning of year
44,644,578
5,671,399
10,334,778
352,355
(64,634)
315,969
End of year
$ 45,696,552
$
6,222,692
$ 9,587,230
$
484,373
$
306,372
$ 332,926
116
Special Revenue
Debt Service
Capital Projects
Special
Assessment
General
Public
Community
Museum
Library
Bonds
Government
Buildings
Grants
Streets
Services
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
2,663
196,469
—
—
—
11,525,275
—
—
—
—
—
—
76,048
—
1,445,446
518,846
—
—
—
464,513
122,746
224,756
—
—
—
—
—
—
—
—
—
—
—
—
—
2,145,416
—
—
—
—
1,540
2,993
—
1
37,432
1
3,260,313
2,235,436
—
—
—
744,563
—
10,883
—
—
4,203
199,462
—
3,354,493
236,226
11,760,915
4,705,759
2,754,282
—
—
—
3,959,415
4,194
249,527
295,689
11,592
—
—
—
559,572
—
—
—
—
—
—
—
5,202,132
—
3,519,794
2,602,803
—
—
56,411
—
18,300
—
—
—
1,297,138
—
—
—
29,912,182
873,630
13,525,955
18,588,245
25,989,744
—
—
—
—
8,567
—
150,182
225,384
—
56,411
—
39,651,601
886,391
17,295,276
21,636,919
27,523,858
4,203
143,051
—
(36,297,108)
(650,165)
(5,534,361) (16,931,160)
(24,769,576)
—
—
—
—
—
—
—
—
—
—
—
—
263,969
—
4,627,316
6,944,378
—
—
—
—
2,283,914
—
40,036,475
60,084,166
—
—
79,507
37,975,887
—
500,000
—
—
—
—
—
—
—
—
(2,750,000)
(4,686,432)
—
—
79,507
37,975,887
2,547,883
500,000
41,913,791
62,342,112
4,203
143,051
79,507
1,678,779
1,897,718
(5,034,361) 24,982,631
37,572,536
34,621
83,358
(79,507)
(1,164,585)
(1,538,682)
(891,911) 59,968,085
31,144,114
$
38,824
$
226,409
$
—
$
514,194
$
359,036
$
(5,926,272) $ 84,950,716
$
68,716,650
(Continued)
117
City of Chandler
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Non-Major Governmental Funds
For the year ended June 30, 2024
Capital Projects
Public Safety
Vehicle and
Total Other
Buildings and
Capital Equipment
Technology
Municipal
Governmental
Improvements
Replacement
Replacement
Arts
Funds
REVENUES:
Highway user taxes
$
—
$
—
$
—
$
—
$
21,430,580
Grants and entitlements
—
—
—
—
23,842,433
System development fees
236,942
—
—
—
2,277,282
Charges for services
—
—
—
173,987
1,168,191
Fines and forfeitures
—
—
—
—
725,712
Contributions
—
—
—
—
2,145,416
Interest revenue
91,359
586,718
484,711
40,328
10,087,032
Miscellaneous
—
69,049
—
533
1,028,142
Total revenues
328,301
655,767
484,711
214,848
62,704,788
EXPENDITURES:
Current:
General government
8,476
—
1,369,503
84,930
9,418,069
Public safety
366,503
—
—
—
5,812,560
Transportation and development
—
—
—
—
22,537,956
Community services
—
—
—
—
2,478,801
Capital outlay
3,212,691
4,388,234
2,750,318
31,165
114,485,076
Debt service:
Bond issuance costs
15,044
—
—
—
399,177
Total expenditures
3,602,714
4,388,234
4,119,821
116,095
155,131,639
EXCESS (DEFICIENCY) OF
REVENUES OVER EXPENDITURES
(3,274,413)
(3,732,467)
(3,635,110)
98,753
(92,426,851)
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
—
223,751
—
—
223,751
Bond premium
463,517
—
—
—
12,299,180
Face amount of bonds issued
4,010,445
—
—
—
106,415,000
Transfers in
—
3,306,294
4,251,960
—
46,113,648
Transfers out
—
—
—
—
(8,212,234)
Total other financing sources (uses)
4,473,962
3,530,045
4,251,960
—
156,839,345
NET CHANGE IN FUND BALANCE
1,199,549
(202,422)
616,850
98,753
64,412,494
FUND BALANCES (DEFICITS):
Beginning of year
(4,827,972)
12,672,945
9,208,688
892,983
166,756,582
End of year
$
(3,628,423) $
12,470,523
$
9,825,538
$
991,736
$
231,169,076
(Concluded)
118
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Highway user taxes
$
17,000,000
$
17,000,000
$
21,430,580
$
4,430,580
Interest revenue
606,000
606,000
1,844,036
1,238,036
Miscellaneous
—
—
119,740
119,740
Total revenues
17,606,000
17,606,000
23,394,356
5,788,356
EXPENDITURES:
General government
1,225,600
5,576,721
—
5,576,721
Transportation and development
23,703,284
9,918,060
9,031,655
886,405
Capital outlay
13,030,274
22,464,377
20,847,006
1,617,371
Total expenditures
37,959,158
37,959,158
29,878,661
8,080,497
Excess (deficiency) of revenues over expenditures
(20,353,158)
(20,353,158)
(6,484,305)
13,868,853
OTHER FINANCING SOURCES (USES):
Transfers out
(293,672)
(293,672)
(271,590)
22,082
Total other financing sources (uses)
(293,672)
(293,672)
(271,590)
22,082
Net change in fund balance
(20,646,830)
(20,646,830)
(6,755,895)
13,890,935
Fund balance, July 1, 2023
44,644,578
44,644,578
44,644,578
—
Fund balance, June 30, 2024
$
23,997,748
$
23,997,748
$
37,888,683
$
13,890,935
119
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
673,600
$
673,600
$
702,551
$
28,951
Charges for services
159,600
159,600
182,189
22,589
Interest revenue
85,000
85,000
251,759
166,759
Miscellaneous
—
—
83,285
83,285
Total revenues
918,200
918,200
1,219,784
301,584
EXPENDITURES:
General government
56,300
300
—
300
Transportation and development
2,480,751
1,866,372
664,281
1,202,091
Capital outlay
185,000
870,998
61,792
809,206
Total expenditures
2,722,051
2,737,670
726,073
2,011,597
Excess (deficiency) of revenues over expenditures
(1,803,851)
(1,819,470)
493,711
2,313,181
OTHER FINANCING SOURCES (USES):
Transfers out
(4,212)
(4,212)
(4,212)
—
Total other financing sources (uses)
(4,212)
(4,212)
(4,212)
—
Net change in fund balance
(1,808,063)
(1,823,682)
489,499
2,313,181
Fund balance, July 1, 2023
5,671,399
5,671,399
5,671,399
—
Fund balance, June 30, 2024
$
3,863,336
$
3,847,717
$
6,160,898
$
2,313,181
120
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Grants Special Revenue
For the year ended June 30, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
20,037,400
$
20,037,400
$
9,544,356
$ (10,493,044)
Interest revenue
—
—
1,236,600
1,236,600
Total revenues
20,037,400
20,037,400
10,780,956
(9,256,444)
EXPENDITURES:
General government
21,397,400
16,511,602
2,961,157
13,550,445
Public safety
—
6,524,661
4,562,369
1,962,292
Transportation and development
1,600,000
5,864,988
2,060,815
3,804,173
Community services
40,000
1,212,003
1,037,477
174,526
Capital outlay
—
596,564
1,584,875
(988,311)
Total expenditures
23,037,400
30,709,818
12,206,693
18,503,125
Excess (deficiency) of revenues over expenditures
(3,000,000)
(10,672,418)
(1,425,737)
9,246,681
OTHER FINANCING SOURCES (USES):
Transfers out
(500,000)
(500,000)
(500,000)
—
Total other financing sources (uses)
(500,000)
(500,000)
(500,000)
—
Net change in fund balance
(3,500,000)
(11,172,418)
(1,925,737)
9,246,681
Fund balance, July 1, 2023
10,334,778
10,334,778
10,334,778
—
Fund balance (deficit), June 30, 2024
$
6,834,778
$
(837,640) $
8,409,041
$
9,246,681
121
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
10,260,000
$
10,260,000
$
1,779,518
$
(8,480,482)
Total revenues
10,260,000
10,260,000
1,779,518
(8,480,482)
EXPENDITURES:
General government
10,260,000
10,296,364
1,884,406
8,411,958
Capital outlay
—
—
49,348
(49,348)
Total expenditures
10,260,000
10,296,364
1,933,754
8,362,610
Excess (deficiency) of revenues over expenditures
—
(36,364)
(154,236)
(117,872)
Net change in fund balance
—
(36,364)
(154,236)
(117,872)
Fund balance, July 1, 2023
352,355
352,355
352,355
—
Fund balance, June 30, 2024
$
352,355
$
315,991
$
198,119
$
(117,872)
122
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Fines and forfeitures
$
750,000
$
750,000
$
725,712
$
(24,288)
Total revenues
750,000
750,000
725,712
(24,288)
EXPENDITURES:
General government
33,000
—
—
—
Public safety
645,000
687,944
354,706
333,238
Capital outlay
105,000
105,000
324,515
(219,515)
Total expenditures
783,000
792,944
679,221
113,723
Net change in fund balance
(33,000)
(42,944)
46,491
89,435
Fund balance (deficit), July 1, 2023
(64,634)
(64,634)
(64,634)
—
Fund balance (deficit), June 30, 2024
$
(97,634) $
(107,578) $
(18,143) $
89,435
123
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
118,800
$
118,800
$
91,601
$
(27,199)
Interest revenue
5,000
5,000
13,783
8,783
Miscellaneous
500
500
89
(411)
Total revenues
124,300
124,300
105,473
(18,827)
EXPENDITURES:
General government
25,500
25,500
11,874
13,626
Community services
121,925
121,925
69,475
52,450
Capital outlay
—
—
7,168
(7,168)
Total expenditures
147,425
147,425
88,517
58,908
Net change in fund balance
(23,125)
(23,125)
16,956
40,081
Fund balance, July 1, 2023
315,969
315,969
315,969
—
Fund balance, June 30, 2024
$
292,844
$
292,844
$
332,925
$
40,081
124
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Museum Special Revenue
For the year ended June 30, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
1,100
$
1,100
$
2,663
$
1,563
Interest revenue
1,000
1,000
1,541
541
Total revenues
2,100
2,100
4,204
2,104
EXPENDITURES:
General government
36,833
36,833
—
36,833
Total expenditures
36,833
36,833
—
36,833
Net change in fund balance
(34,733)
(34,733)
4,204
38,937
Fund balance, July 1, 2023
34,621
34,621
34,621
—
Fund balance (deficit), June 30, 2024
$
(112) $
(112) $
38,825
$
38,937
125
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Library Special Revenue
For the year ended June 30, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$
85,300
$
85,300
$
196,469
$
111,169
Interest revenue
2,000
2,000
2,998
998
Total revenues
87,300
87,300
199,467
112,167
EXPENDITURES:
Community services
80,000
80,000
56,411
23,589
Capital outlay
50,000
135,000
134,519
481
Total expenditures
130,000
215,000
190,930
24,070
Net change in fund balance
(42,700)
(127,700)
8,537
136,237
Fund balance, July 1, 2023
83,358
83,358
83,358
—
Fund balance (deficit), June 30, 2024
$
40,658
$
(44,342) $
91,895
$
136,237
126
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Special Assessment Bond
For the year ended June 30, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
OTHER FINANCING SOURCES (USES):
Transfers in
—
—
79,507
79,507
Total other financing sources (uses)
— —
— —
79,507 —
79,507
Net change in fund balance
—
—
79,507
79,507
Fund balance (deficit), July 1, 2023
(79,507)
(79,507)
(79,507)
—
Fund balance, June 30, 2024
$
(79,507) $
(79,507) $
—
$
79,507
127
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Miscellaneous
$
—
$
—
$
744,563
$
744,563
Total revenues
—
—
744,563
744,563
EXPENDITURES:
General government
29,023,929
25,067,452
10,204,241
14,863,211
Public safety
8,774,655
823,069
709,867
113,202
Transportation and development
32,487,006
9,445,190
7,040,844
2,404,346
Community services
8,291,324
619,847
96,731
523,116
Capital outlay
49,402,213
88,867,601
49,626,279
39,241,322
Total expenditures
127,979,127
124,823,159
67,677,962
57,145,197
Excess (deficiency) of revenues over expenditures
(127,979,127) (124,823,159)
(66,933,399)
57,889,760
OTHER FINANCING SOURCES (USES):
Capital contributions
Transfers in
127,979,127
122,686,417
37,975,887
(84,710,530)
Total other financing sources (uses)
127,979,127
122,686,417
37,975,887
(84,710,530)
Net change in fund balance
—
(2,136,742)
(28,957,512)
(26,820,770)
Fund balance (deficit), July 1, 2023
(1,164,585)
(1,164,585)
(1,164,585)
—
Fund balance (deficit), June 30, 2024
$
(1,164,585) $
(3,301,327) $ (30,122,097) $ (26,820,770)
128
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
277,000
$
277,000
$
76,048
$
(200,952)
Charges for services
—
—
122,746
122,746
Interest revenue
4,200
4,200
37,433
33,233
Total revenues
281,200
281,200
236,227
(44,973)
EXPENDITURES:
General government
261,200
261,200
4,194
257,006
Capital outlay
2,520,000
2,520,000
2,692,598
(172,598)
Bond issuance costs
—
—
8,567
(8,567)
Total expenditures
2,781,200
2,781,200
2,705,359
75,841
Excess (deficiency) of revenues over expenditures
(2,500,000)
(2,500,000)
(2,469,132)
30,868
OTHER FINANCING SOURCES (USES):
Bond premium
—
—
263,969
263,969
Face amount of bonds issued
2,600,000
2,600,000
2,283,914
(316,086)
Transfers out
(100,000)
(100,000)
—
100,000
Total other financing sources (uses)
2,500,000
2,500,000
2,547,883
47,883
Net change in fund balance
—
—
78,751
78,751
Fund balance (deficit), July 1, 2023
(1,538,682)
(1,538,682)
(1,538,682)
—
Fund balance (deficit), June 30, 2024
$
(1,538,682) $
(1,538,682) $
(1,459,931) $
78,751
129
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Grants Capital Projects
For the year ended June 30, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Grants and entitlements
$ 46,510,193
$ 46,510,193
$ 11,525,275
$ (34,984,918)
Charges for services
157,000
157,000
224,756
67,756
Miscellaneous
—
—
10,883
10,883
Total revenues
46,667,193
46,667,193
11,760,914
(34,906,279)
EXPENDITURES:
General government
7,373,917
12,277,742
263,737
12,014,005
Transportation and development
47,326,173
10,971,653
6,272,519
4,699,134
Community services
9,755,689
—
—
—
Capital outlay
32,399,777
64,903,161
22,178,422
42,724,739
Total expenditures
96,855,556
88,152,556
28,714,678
59,437,878
Excess (deficiency) of revenues over expenditures
(50,188,363)
(41,485,363)
(16,953,764)
24,531,599
OTHER FINANCING SOURCES (USES):
Transfers in
500,000
500,000
500,000
—
Transfers out
—
(120,000)
—
120,000
Total other financing sources (uses)
500,000
380,000
500,000
120,000
Net change in fund balance
(49,688,363)
(41,105,363)
(16,453,764)
24,651,599
Fund balance (deficit), July 1, 2023
(891,911)
(891,911)
(891,911)
—
Fund balance (deficit), June 30, 2024
$ (50,580,274) $ (41,997,274) $ (17,345,675) $ 24,651,599
130
City of Chandler
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Streets Capital Projects
For the year ended June 30, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Regional transportation taxes
$
60,000
$
60,000
$
—
$
(60,000)
System development fees
6,000,000
6,000,000
1,445,446
(4,554,554)
Interest revenue
914,000
914,000
3,260,311
2,346,311
Total revenues
6,974,000
6,974,000
4,705,757
(2,268,243)
EXPENDITURES:
General government
1,539,573
10,054,805
862,451
9,192,354
Transportation and development
65,006,150
13,796,524
5,166,066
8,630,458
Capital outlay
29,014,614
71,709,008
34,768,771
36,940,237
Bond issuance costs
—
—
150,182
(150,182)
Total expenditures
95,560,337
95,560,337
40,947,470
54,612,867
Excess (deficiency) of revenues over expenditures
(88,586,337)
(88,586,337)
(36,241,713)
52,344,624
OTHER FINANCING SOURCES (USES):
Bond premium
—
—
4,627,316
4,627,316
Face amount of bonds issued
45,250,000
45,250,000
40,036,475
(5,213,525)
Transfers in
60,000
60,000
—
(60,000)
Transfers out
(2,810,000)
(2,810,000)
(2,750,000)
60,000
Total other financing sources (uses)
42,500,000
42,500,000
41,913,791
(586,209)
Net change in fund balance
(46,086,337)
(46,086,337)
5,672,078
51,758,415
Fund balance, July 1, 2023
59,968,085
59,968,085
59,968,085
—
Fund balance, June 30, 2024
$ 13,881,748
$ 13,881,748
$ 65,640,163
$ 51,758,415
131
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
564,000
$
564,000
$
518,846
$
(45,154)
Interest revenue
459,000
459,000
2,235,433
1,776,433
Total revenues
1,023,000
1,023,000
2,754,279
1,731,279
EXPENDITURES:
General government
201,211
1,445,105
10,221
1,434,884
Community services
37,383,146
10,333,951
1,829,880
8,504,071
Capital outlay
36,752,718
61,667,150
42,300,078
19,367,072
Bond issuance costs
—
—
225,384
(225,384)
Total expenditures
74,337,075
73,446,206
44,365,563
29,080,643
Excess (deficiency) of revenues over expenditures
(73,314,075)
(72,423,206)
(41,611,284)
30,811,922
OTHER FINANCING SOURCES (USES):
Bond premium
—
—
6,944,378
6,944,378
Face amount of bonds issued
66,650,000
66,565,000
60,084,166
(6,480,834)
Transfers out
(4,736,432)
(4,736,432)
(4,686,432)
50,000
Total other financing sources (uses)
61,913,568
61,828,568
62,342,112
513,544
Net change in fund balance
(11,400,507)
(10,594,638)
20,730,828
31,325,466
Fund balance, July 1, 2023
31,144,114
31,144,114
31,144,114
—
Fund balance, June 30, 2024
$ 19,743,607
$ 20,549,476
$ 51,874,942
$ 31,325,466
132
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
System development fees
$
865,000
$
865,000
$
236,942
$
(628,058)
Interest revenue
23,000
23,000
91,360
68,360
Total revenues
888,000
888,000
328,302
(559,698)
EXPENDITURES:
General government
269,000
5,320,961
8,476
5,312,485
Public safety
9,212,099
586,615
379,623
206,992
Capital outlay
—
3,573,523
3,952,925
(379,402)
Bond issuance costs
—
—
15,044
(15,044)
Total expenditures
9,481,099
9,481,099
4,356,068
5,125,031
Excess (deficiency) of revenues over expenditures
(8,593,099)
(8,593,099)
(4,027,766)
4,565,333
OTHER FINANCING SOURCES (USES):
Bond premium
—
—
463,517
463,517
Face amount of bonds issued
5,200,000
5,200,000
4,010,445
(1,189,555)
Transfers out
(600,000)
(600,000)
—
600,000
Total other financing sources (uses)
4,600,000
4,600,000
4,473,962
(126,038)
Net change in fund balance
(3,993,099)
(3,993,099)
446,196
4,439,295
Fund balance (deficit), July 1, 2023
(4,827,972)
(4,827,972)
(4,827,972)
—
Fund balance (deficit), June 30, 2024
$
(8,821,071) $
(8,821,071) $
(4,381,776) $
4,439,295
133
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
197,000
$
197,000
$
586,718
$
389,718
Miscellaneous
—
—
69,049
69,049
Total revenues
197,000
197,000
655,767
458,767
EXPENDITURES:
General government
3,568,116
1,641,597
—
1,641,597
Public safety
708,400
708,400
—
708,400
Capital outlay
6,152,000
8,354,313
7,978,226
376,087
Total expenditures
10,428,516
10,704,310
7,978,226
2,726,084
Excess (deficiency) of revenues over expenditures
(10,231,516)
(10,507,310)
(7,322,459)
3,184,851
OTHER FINANCING SOURCES (USES):
Proceeds from disposal of capital assets
300,000
300,000
223,751
(76,249)
Transfers in
3,306,294
3,306,294
3,306,294
—
Total other financing sources (uses)
3,606,294
3,606,294
3,530,045
(76,249)
Net change in fund balance
(6,625,222)
(6,901,016)
(3,792,414)
3,108,602
Fund balance, July 1, 2023
12,672,945
12,672,945
12,672,945
—
Fund balance, June 30, 2024
$
6,047,723
$
5,771,929
$
8,880,531
$
3,108,602
134
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Interest revenue
$
179,000
$
179,000
$
484,710
$
305,710
Total revenues
179,000
179,000
484,710
305,710
EXPENDITURES:
General government
4,229,050
3,007,674
1,425,489
1,582,185
Capital outlay
2,795,748
3,544,280
2,782,314
761,966
Total expenditures
7,024,798
6,551,954
4,207,803
2,344,151
Excess (deficiency) of revenues over expenditures
(6,845,798)
(6,372,954)
(3,723,093)
2,649,861
OTHER FINANCING SOURCES (USES):
Transfers in
4,238,302
4,238,302
4,251,960
13,658
Total other financing sources (uses)
4,238,302
4,238,302
4,251,960
13,658
Net change in fund balance
(2,607,496)
(2,134,652)
528,867
2,663,519
Fund balance, July 1, 2023
9,208,688
9,208,688
9,208,688
—
Fund balance, June 30, 2024
$
6,601,192
$
7,074,036
$
9,737,555
$
2,663,519
135
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, 2024
Non-GAAP
Over
Budgeted Amounts
Actual
(Under)
Original
Final
Amounts
Final Budget
REVENUES:
Charges for services
$
173,987
$
173,987
$
173,987
$
—
Interest revenue
12,800
12,800
40,328
27,528
Miscellaneous
—
—
533
533
Total revenues
186,787
186,787
214,848
28,061
EXPENDITURES:
General government
332,665
302,165
204,930
97,235
Capital outlay
—
56,165
31,165
25,000
Total expenditures
332,665
358,330
236,095
122,235
Net change in fund balance
(145,878)
(171,543)
(21,247)
150,296
Fund balance, July 1, 2023
892,983
892,983
892,983
—
Fund balance, June 30, 2024
$
747,105
$
721,440
$
871,736
$
150,296
136
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.
137
City of Chandler
Combining Statement of Net Position -
Non-Major Proprietary Funds
June 30, 2024
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
ASSETS
Current assets:
Equity in pooled cash and investments
$ 25,071,584 $
192,114
$ 10,534,406 $ 35,798,104
Accounts receivable
2,490,129
7
113,947
2,604,083
Due from other governments
—
—
17,383
17,383
Inventories
—
12,973
—
12,973
Prepaid invoices
94,187
—
—
94,187
Accrued interest receivable
137,108
—
57,452
194,560
Other receivables
148
—
13,842
13,990
Total current assets
27,793,156
205,094
10,737,030
38,735,280
Long-term assets:
Notes receivable
—
—
154,750
154,750
Leases receivable
—
3,876,162
—
3,876,162
Capital assets:
Non-depreciable
6,740,625
20,599,736
1,889,957
29,230,318
Depreciable, net
5,406,436
12,163,794
6,430,915
24,001,145
Total capital assets
12,147,061
32,763,530
8,320,872
53,231,463
Total long-term assets
12,147,061
36,639,692
8,475,622
57,262,375
Total assets
39,940,217
36,844,786
19,212,652
95,997,655
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of OPEB and pension plan items
428,239
220,172
492,222
1,140,633
138
LIABILITIES
Current liabilities:
Accounts payable
1,104,891
85,255
19,194
1,209,340
Accrued payroll
79,974
33,640
—
113,614
Trust liabilities and deposits
—
84,666
1,104,411
1,189,077
Customer advances
207,816
35,174
14,086
257,076
Compensated absences payable
22,415
8,399
15,887
46,701
Landfill closure and postclosure liability
94,446
—
—
94,446
Total current liabilities
1,509,542
247,134
1,153,578
2,910,254
Long-term liabilities:
Compensated absences payable
110,840
41,533
61,760
214,133
Net pension liability
936,786
1,152,899
2,116,137
4,205,822
OPEB liability
649,770
221,999
722,889
1,594,658
Landfill closure and postclosure liability
4,245,554
—
—
4,245,554
Total long-term liabilities
5,942,950
1,416,431
2,900,786
10,260,167
Total liabilities
7,452,492
1,663,565
4,054,364
13,170,421
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of OPEB and pension plan items
374,329
84,247
391,026
849,602
Deferred inflows of leases
—
3,759,444
—
3,759,444
Total deferred inflows of resources
374,329
3,843,691
391,026
4,609,046
NET POSITION
Net investment in capital assets
12,147,061
32,763,530
8,320,872
53,231,463
Unrestricted
20,394,574
(1,205,828)
6,938,612
26,127,358
Total net position
$ 32,541,635 $ 31,557,702 $ 15,259,484 $ 79,358,821
139
140
City of Chandler
Combining Statement of Revenues, Expenses and Changes in Net Position -
Non-Major Proprietary Funds
For the year ended June 30, 2024
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
OPERATING REVENUES:
Service fees
$ 19,256,732
$
1,174,462
$
325
$ 20,431,519
Grants and entitlements
—
—
12,460,952
12,460,952
Rentals
—
—
1,752,557
1,752,557
Sales taxes
—
23,363
—
23,363
Miscellaneous
11
5,661
466,363
472,035
Total operating revenues
19,256,743
1,203,486
14,680,197
35,140,426
OPERATING EXPENSES:
General and administrative
1,000,564
100,000
—
1,100,564
Personnel services
2,175,240
820,591
2,256,992
5,252,823
Contractual services
14,177,977
122,299
1,125,295
15,425,571
Commodities
1,461,945
941,276
580,494
2,983,715
Housing assistance payments
—
—
9,600,501
9,600,501
Depreciation and amortization expense
596,958
888,977
657,519
2,143,454
Total operating expenses
19,412,684
2,873,143
14,220,801
36,506,628
OPERATING INCOME (LOSS)
(155,941)
(1,669,657)
459,396
(1,366,202)
NONOPERATING REVENUES (EXPENSES):
Interest revenue
989,054
94,791
403,162
1,487,007
Gain (loss) on disposal of capital assets
—
—
4,401
4,401
Total nonoperating revenues (expenses)
989,054
94,791
407,563
1,491,408
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS
833,113
(1,574,866)
866,959
125,206
CAPITAL CONTRIBUTION AND TRANSFERS:
Capital contributions
—
1,298,832
—
1,298,832
Transfers in
—
685,617
431,000
1,116,617
Transfers out
(117,285)
(32,764)
—
(150,049)
Total capital contributions and transfers
(117,285)
1,951,685
431,000
2,265,400
CHANGE IN NET POSITION
715,828
376,819
1,297,959
2,390,606
NET POSITION
Beginning of year
31,825,807
31,180,883
13,961,525
76,968,215
End of year
$ 32,541,635
$ 31,557,702
$ 15,259,484
$ 79,358,821
141
City of Chandler
Combining Statement of Cash Flows -
Non-Major Proprietary Funds
For the year ended June 30, 2024
Chandler
Total Other
Housing
Proprietary
Solid Waste
Airport
Authority
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$
19,210,339
$
1,183,982
$
2,217,809
$
22,612,130
Cash received from grantors
—
—
12,443,569
12,443,569
Cash payments to suppliers
(16,660,940)
(1,187,497)
(11,347,878)
(29,196,315)
Cash payments to employees for services
(2,110,899)
(791,050)
(2,196,104)
(5,098,053)
Net cash provided (used) by operating activities
438,500
(794,565)
1,117,396
761,331
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in
—
685,617
431,000
1,116,617
Transfers out
(117,285)
(32,764)
—
(150,049)
Net cash provided (used) by noncapital financing activities
(117,285)
652,853
431,000
966,568
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition and construction of capital assets
168,227
119,671
(590,181)
(302,283)
Net cash provided (used) by capital and related financing activities
168,227
119,671
(590,181)
(302,283)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income
929,658
94,791
376,796
1,401,245
Net cash provided (used) by investing activities
929,658
94,791
376,796
1,401,245
Net increase (decrease) in cash and cash equivalents
1,419,100
72,750
1,335,011
2,826,861
CASH AND CASH EQUIVALENTS:
Beginning of year
23,652,484
119,364
9,199,395
32,971,243
End of year
$
25,071,584
$
192,114
$
10,534,406
$
35,798,104
142
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
$
(155,941) $
(1,669,657) $
459,396
$
(1,366,202)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation and amortization
596,958
888,977
657,519
2,143,454
Changes in assets, liabilities and deferred items:
(Increase) decrease in receivables
(132,167)
105,174
(94,849)
(121,842)
(Increase) decrease in due from other governments
—
—
(17,383)
(17,383)
(Increase) decrease in inventories
—
19,258
—
19,258
(Increase) decrease in prepaid items
(94,187)
—
—
(94,187)
Increase (decrease) in payables
73,733
(43,180)
(41,588)
(11,035)
Increase (decrease) in accrued payroll and compensated absences
31,133
6,871
12,561
50,565
Increase (decrease) in deposits
—
12,151
100,186
112,337
Increase (decrease) in customer advances
85,763
4,758
(6,773)
83,748
Increase (decrease) in net pension items
(4,267)
6,968
10,753
13,454
Increase (decrease) in OPEB liability
37,475
15,702
37,574
90,751
Increase (decrease) in lease deferred inflows
—
(141,587)
—
(141,587)
Total adjustments
594,441
875,092
658,000
2,127,533
Net cash provided (used) by operating activities
$
438,500
$
(794,565) $
1,117,396
$
761,331
NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES:
Contributions of capital assets from city government
$
—
$
1,298,832
$
—
$
1,298,832
Gain (loss) on disposal of capital assets
—
—
4,401
4,401
143
144
Strategic infrastructure investments
that facilitate business and
economic growth are paired with
facility, park and public safety
improvements that support the
quality of life enjoyed by residents.
3
Statistical Section
•
Financial Trends
•
Revenue Capacity
•
Debt Capacity
•
Demographic and Economic Information
•
Operating Information
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
147
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
163
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
167
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 14-29 provide additional information for continuing
disclosure purposes.
Demographic and Economic Information
190
Schedules 30-31 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
193
Schedules 32-34 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.
146
CITY OF CHANDLER, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
Governmental activities
Net investment in capital assets
$
567,041,560
$
579,591,241
$
587,213,640
$
536,086,249
Restricted
108,965,994
121,767,847
122,006,140
168,510,855
Unrestricted
7,709,550
(5,872,464)
(36,358,845)
(65,575,548)
Total governmental activities net
position
683,717,104
695,486,624
672,860,935
639,021,556
Business-type activities
Net investment in capital assets
380,427,606
342,252,306
439,823,546
467,799,036
Restricted
119,075
31,365,801
32,977,926
33,447,434
Unrestricted
217,824,645
258,806,679
176,390,803
243,735,547
Total business-type activities net
position
598,371,326
632,424,786
649,192,275
744,982,017
Primary government
Net investment in capital assets
947,469,166
921,843,547
1,027,037,186
1,003,885,285
Restricted
109,085,069
153,133,648
155,184,734
201,958,289
Unrestricted
225,534,195
252,934,215
139,831,290
178,159,999
Total primary government net
position
$ 1,282,088,430
$ 1,327,911,410
$ 1,322,053,210
$ 1,384,003,573
147
Schedule 1
Fiscal Year
2019
2020
2021
2022
2023
2024
$
575,953,033
$
547,511,826
$
555,107,220
$
536,775,941
$
555,568,147
$
572,110,660
173,490,725
191,839,529
189,214,016
194,380,531
182,068,932
251,642,729
(72,592,489)
(8,655,932)
(6,761,531)
63,657,816
168,391,045
170,645,342
676,851,269
730,695,423
737,559,705
794,814,288
906,028,124
994,398,731
481,911,949
477,329,239
458,616,595
473,953,519
514,595,066
526,875,770
31,523,149
33,750,526
32,154,205
31,745,566
31,119,667
28,190,997
249,131,813
267,005,635
299,755,652
283,463,157
250,938,753
264,141,654
762,566,911
778,085,400
790,526,452
789,162,242
796,653,486
819,208,421
1,057,864,982
1,024,841,065
1,013,723,815
1,010,729,460
1,070,163,213
1,098,986,430
205,013,874
225,590,055
221,368,221
226,126,097
213,188,599
279,833,726
176,539,324
258,349,703
292,994,121
347,120,973
419,329,798
434,786,996
$ 1,439,418,180
$ 1,508,780,823
$ 1,528,086,157
$ 1,583,976,530
$ 1,702,681,610
$ 1,813,607,152
148
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
Expenses
Governmental activities:
General government
$
104,456,315
$
112,514,903
$
104,998,802
$
113,587,478
Public safety
102,050,425
111,568,323
149,366,614
112,371,723
Transportation and development
51,714,085
55,012,081
56,752,197
55,287,494
Community services
31,784,321
31,441,019
32,599,549
36,824,102
Interest and fiscal charges
6,986,490
7,884,146
6,623,830
6,716,119
Total governmental activities
expenses
296,991,636
318,420,472
350,340,992
324,786,916
Business-type activities:
Water
55,470,724
54,075,742
63,236,746
61,513,990
Wastewater
50,823,497
51,034,921
58,112,931
60,605,779
Solid waste
14,087,780
13,925,017
14,380,178
14,531,558
Airport
1,860,057
2,011,880
1,893,830
1,841,718
Chandler housing authority
7,433,284
7,267,806
7,728,876
8,109,635
Total business-type activities
expenses
129,675,342
128,315,366
145,352,561
146,602,680
Total primary government expenses
$
426,666,978
$
446,735,838
$
495,693,553
$
471,389,596
149
Schedule 2a
Fiscal Year
2019
2020
2021
2022
2023
2024
$
114,373,302
$
138,850,297
$
162,849,542
$
157,127,919
$
195,086,875
$
258,864,611
124,906,187
109,544,169
122,146,366
104,673,550
95,958,948
85,894,534
53,806,473
59,777,330
58,847,053
56,403,523
60,990,970
59,823,718
36,990,853
38,195,563
39,565,719
41,563,661
45,928,371
43,606,131
7,046,655
6,885,184
6,653,197
6,014,168
5,292,655
5,935,673
337,123,470
353,252,543
390,061,877
365,782,821
403,257,819
454,124,667
58,297,769
60,330,758
62,049,102
61,264,619
75,887,686
69,667,817
61,218,775
66,788,084
62,753,454
63,037,577
63,849,518
70,135,806
15,221,985
16,522,728
17,040,309
16,727,814
17,278,664
19,412,684
2,038,417
2,382,288
2,186,724
1,956,786
2,209,135
2,873,143
8,478,235
8,710,570
9,207,531
9,955,131
10,877,168
14,220,801
145,255,181
154,734,428
153,237,120
152,941,927
170,102,171
176,310,251
$
482,378,651
$
507,986,971
$
543,298,997
$
518,724,748
$
573,359,990
$
630,434,918
150
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
Program Revenues
Governmental activities:
Charges for services:
General government
$ 39,207,061
$ 42,021,638
$ 41,400,079 $ 43,089,930
Public safety
6,469,215
7,471,344
6,561,052
6,100,584
Transportation and development
14,438,138
16,538,175
16,333,273
17,145,894
Community services
7,551,166
10,792,114
10,732,351
9,180,276
Operating grants and contributions
3,514,714
5,188,787
4,481,750
3,988,629
Capital grants and contributions
13,133,637
16,725,462
9,702,683
9,340,818
Total governmental activities program
revenues
84,313,931
98,737,520
89,211,188
88,846,131
Business-type activities:
Charges for services:
Water
48,045,103
50,483,097
53,251,020
54,031,592
Wastewater
45,666,777
51,321,346
53,563,934
56,367,650
Solid waste
14,140,246
14,940,591
15,648,992
16,307,409
Airport
1,010,288
946,419
950,294
963,827
Chandler housing authority
877,380
946,408
954,070
1,085,013
Operating grants and contributions
5,862,477
5,784,021
6,198,797
6,350,858
Capital grants and contributions
35,357,741
32,690,364
27,645,932
22,360,158
Total business-type activities program
revenues
150,960,012
157,112,246
158,213,039 157,466,507
Total primary government program
revenues
$ 235,273,943
$ 255,849,766
$ 247,424,227 $ 246,312,638
Net (expense)/revenue
Governmental activities
$ (212,677,705) $ (219,682,952) $ (261,129,804) $ (235,940,785)
Business-type activities
21,284,670
28,796,880
12,860,478
10,863,827
Total primary government net (expense)
$ (191,393,035) $ (190,886,072) $ (248,269,326) $ (225,076,958)
151
Schedule 2b
Fiscal Year
2019
2020
2021
2022
2023
2024
$
43,622,807
$
43,203,865
$
42,011,670
$
42,734,281
$
37,240,071
$
41,272,767
4,998,779
6,512,002
5,073,984
5,714,382
5,723,124
6,804,298
14,869,670
16,420,652
14,266,302
13,044,002
22,869,091
12,947,005
7,583,513
5,623,796
5,437,401
6,033,727
14,900,747
15,537,533
4,522,345
31,052,185
18,694,567
17,863,747
26,999,694
13,304,466
10,510,464
18,714,457
16,573,341
18,678,027
16,237,742
16,299,587
86,107,578
121,526,957
102,057,265
104,068,166
123,970,469
106,165,656
52,459,720
54,722,296
58,755,999
54,911,138
53,415,725
57,606,344
56,055,131
61,531,949
61,971,940
61,109,393
60,884,259
63,309,459
16,107,922
16,757,829
17,480,050
17,629,367
18,449,086
19,256,732
906,557
880,194
893,268
813,683
930,969
1,174,463
1,155,430
1,188,570
1,262,966
1,415,794
1,638,902
1,752,882
7,224,669
7,137,950
7,965,078
8,598,756
9,124,544
12,460,952
18,335,155
14,190,016
14,355,873
12,887,544
13,482,347
28,318,640
152,244,584
156,408,804
162,685,174
157,365,675
157,925,832
183,879,472
$
238,352,162
$
277,935,761
$
264,742,439
$
261,433,841
$
281,896,301
$
290,045,128
$ (251,015,892) $ (231,725,586) $ (288,004,612) $ (261,714,655) $ (279,287,350) $ (347,959,011)
6,989,403
1,674,376
9,448,054
4,423,748
(12,176,339)
7,569,221
$ (244,026,489) $ (230,051,210) $ (278,556,558) $ (257,290,907) $ (291,463,689) $ (340,389,790)
152
CITY OF CHANDLER, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
Governmental Revenues and
Other Changes in Net Position
Governmental activities:
Property taxes
$
28,708,033
$
29,214,103
$
29,837,763
$
30,816,495
Sales taxes
108,657,130
112,250,883
120,189,651
127,584,410
Highway user taxes
14,633,470
15,303,635
16,683,743
16,135,949
Other taxes
10,106,891
6,100,475
664,616
940,203
Franchise fees
3,300,129
3,344,817
3,285,267
3,571,744
State shared
59,236,588
60,712,442
65,924,228
64,723,211
Investment income
1,763,585
3,834,840
1,063,997
1,531,766
Miscellaneous
1,197,215
1,124,559
1,014,665
1,502,418
Transfers in (out)
(123,350)
(433,282)
(159,815)
(4,175,579)
Total governmental activities
227,479,691
231,452,472
238,504,115
242,630,617
Business-type activities:
Sales taxes
10,865
10,391
10,682
13,769
Investment income
819,556
2,180,447
938,491
854,848
Miscellaneous
2,475,760
2,632,460
2,798,023
14,923,212
Transfers in (out)
123,350
433,282
159,815
4,175,579
Total business-type activities:
3,429,531
5,256,580
3,907,011
19,967,408
Total primary government
$
230,909,222
$
236,709,052
$
242,411,126
$
262,598,025
Change in Net Position
Governmental activities
$
14,801,986
$
11,769,520
$
(22,625,689) $
6,689,832
Business-type activities
24,714,201
34,053,460
16,767,489
30,831,235
Total primary government
$
39,516,187
$
45,822,980
$
(5,858,200) $
37,521,067
153
Schedule 2c
Fiscal Year
2019
2020
2021
2022
2023
2024
$
32,550,250
$
34,419,182
$
36,371,978
$
39,560,904
$
41,363,544
$
42,508,632
139,851,355
140,644,918
157,513,686
182,028,630
210,027,766
208,766,241
17,301,902
16,996,911
18,108,310
19,460,326
20,835,558
21,430,580
866,267
1,153,237
2,226,568
2,210,634
201,799
—
3,567,184
3,441,225
3,823,524
3,861,042
3,838,738
3,691,281
67,156,430
70,769,943
80,699,253
87,038,075
108,187,240
133,384,945
14,822,135
16,951,295
584,026
(15,954,424)
5,427,207
25,508,647
1,261,279
2,085,020
1,820,520
1,916,550
1,380,596
2,109,152
(90,680)
(891,991)
105,991
(1,103,279)
(761,263)
(1,069,860)
277,286,122
285,569,740
301,253,856
319,018,458
390,501,185
436,329,618
17,347
15,521
16,516
21,379
22,063
23,363
7,742,589
9,974,135
249,448
(7,617,417)
3,832,676
10,854,527
2,842,825
2,962,466
2,833,025
2,811,515
15,051,582
3,033,563
90,680
891,991
(105,991)
1,103,279
761,263
1,069,860
10,693,441
13,844,113
2,992,998
(3,681,244)
19,667,584
14,981,313
$
287,979,563
$
299,413,853
$
304,246,854
$
315,337,214
$
410,168,769
$
451,310,931
$
26,270,230
$
53,844,154
$
13,249,244
$
57,303,803
$
111,213,835
$
88,370,607
17,682,844
15,518,489
12,441,052
742,504
7,491,245
22,554,935
$
43,953,074
$
69,362,643
$
25,690,296
$
58,046,307
$
118,705,080
$
110,925,542
154
CITY OF CHANDLER, ARIZONA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
General fund
Nonspendable
$
940,359
$
907,594
$
979,446
$
813,143
Restricted
1,792,180
1,566,618
1,451,061
1,980,807
Assigned
102,222,466
109,958,162
101,620,277
116,359,633
Unassigned
80,152,269
68,567,835
87,492,981
65,182,337
Total general fund
$
185,107,274
$
181,000,209
$
191,543,765
$
184,335,920
All other governmental funds
Nonspendable
$
—
$
—
$
7,422
$
—
Restricted
107,173,814
120,201,229
120,640,190
166,570,330
Assigned
—
—
—
—
Unassigned
(15,322,260)
(11,877,159)
(11,350,383)
(2,555,420)
Total all other governmental funds
$
91,851,554
$
108,324,070
$
109,297,229
$
164,014,910
155
Schedule 3
Fiscal Year
2019
2020
2021
2022
2023
2024
$
866,239
$
985,396
$
1,051,638
$
1,103,805
$
989,996
$
1,055,004
2,179,767
1,710,608
1,711,242
1,324,539
4,317,196
9,786,830
131,214,214
139,326,860
143,763,585
192,983,983
251,787,985
249,554,469
66,035,760
90,887,858
96,065,934
86,626,252
58,838,144
58,553,967
$
200,295,980
$
232,910,722
$
242,592,399
$
282,038,579
$
315,933,321
$
318,950,270
$
—
$
—
$
—
$
—
$
—
$
—
171,310,958
190,128,921
187,759,476
193,055,992
175,323,873
241,855,899
—
—
—
—
—
514,194
(5,758,986)
(7,697,792)
(7,226,577)
(2,361,250)
(8,567,291)
(9,554,695)
$
165,551,972
$
182,431,129
$
180,532,899
$
190,694,742
$
166,756,582
$
232,815,398
156
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS REVENUES
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
Property taxes
$
28,899,684
$
29,237,607
$
29,692,846
$
30,819,812
Sales taxes
108,657,130
112,250,883
120,189,651
127,584,410
Highway user taxes
14,633,470
15,303,635
16,683,743
16,135,949
Other taxes
10,106,891
6,100,475
664,616
940,203
Franchise fees
330,129
3,344,817
3,285,267
3,571,744
State shared revenues
59,236,588
60,712,442
65,924,228
64,723,211
Grants and entitlements
10,638,831
16,159,064
12,677,860
12,111,857
System development fees
10,585,623
16,217,004
14,683,327
13,982,674
Special assessments
573,438
606,757
607,191
611,499
Licenses and permits
5,146,556
6,634,161
7,075,996
6,394,322
Charges for services
20,110,036
19,705,786
20,869,517
21,827,375
Fines and forfeitures
4,601,501
4,828,174
3,908,387
4,865,783
Rentals
751,163
974,192
678,387
127,575
Contributions
150,000
200,000
200,000
200,000
Interest revenue
1,562,241
3,409,065
921,195
1,398,729
Miscellaneous
572,252
897,102
494,984
974,107
Total revenues
$
276,555,533
$
296,581,164
$
298,557,195
$
306,269,250
157
Schedule 4
Fiscal Year
2019
2020
2021
2022
2023
2024
$
32,526,357
$
34,334,216
$
36,409,345
$
39,540,557
$
41,404,976
$
42,449,846
139,851,355
140,644,918
157,513,686
182,028,630
210,027,766
208,766,241
17,301,902
16,996,911
18,108,310
19,460,326
20,835,558
21,430,580
866,267
1,153,237
2,226,568
2,210,634
201,799
—
3,567,184
3,441,225
3,823,524
3,861,042
3,838,738
3,691,281
67,156,430
70,769,943
80,699,253
87,038,075
108,187,240
133,384,945
11,911,639
49,719,415
29,417,028
36,022,070
38,834,325
25,098,601
9,023,678
8,730,973
8,207,728
5,031,031
8,235,336
2,277,282
610,501
508,485
587,020
610,719
565,411
—
7,268,592
7,760,403
6,656,737
6,915,745
8,754,471
5,103,244
21,512,737
20,355,702
19,631,389
22,565,072
27,125,038
28,528,858
4,234,286
5,571,322
2,920,173
3,439,778
4,420,532
5,022,282
127,206
213,345
174,766
119,710
253,543
138,115
200,000
596,153
5,201,737
254,874
1,040,240
2,145,416
13,268,020
15,017,352
533,383
(14,687,606)
4,864,418
22,749,651
923,369
1,471,977
1,105,070
1,310,929
1,047,372
1,385,085
$
330,349,523
$
377,285,577
$
373,215,717
$
395,721,586
$
479,636,763
$
502,171,427
158
CITY OF CHANDLER, ARIZONA
GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
2015
2016
2017
2018
General government
$ 46,895,106
$ 52,138,384
$ 50,892,490
$ 55,706,708
Public safety
93,773,306
104,605,663
103,167,906
109,736,277
Transportation and development
24,769,553
25,471,154
28,294,221
27,750,365
Community services
24,569,283
24,988,844
26,605,279
27,088,640
Capital improvements
56,539,116
50,009,243
44,712,255
71,268,257
Debt service:
Principal retirement
21,490,000
17,465,000
25,240,000
(1)
20,264,000
Interest and fiscal charges
7,737,974
8,635,631
7,689,305
7,918,081
Bond issuance costs
722,293
—
249,838
252,611
Total expenditures
$ 276,496,631
$ 283,313,919
$ 286,851,294
$ 319,984,939
Debt service as a percentage of
noncapital expenditures
12.3 %
10.2 %
12.9 %
10.4 %
(1) In FY 2017, the city called the remaining payments for the 2007 GO Refunding issuance totaling $8,110,000.
159
Schedule 5
Fiscal Year
2019
2020
2021
2022
2023
2024
$
58,070,201
$
79,624,174
$
93,482,842
$
90,412,233
$ 124,221,582
$ 152,828,556
111,496,663
113,166,600
119,357,759
123,991,198
137,400,323
150,796,686
25,871,080
30,117,735
63,281,132
27,995,477
33,058,041
41,619,646
27,712,871
28,344,665
29,084,081
30,855,014
35,906,234
34,170,930
69,006,722
77,024,413
61,907,124
63,832,358
85,239,000
123,417,836
22,820,000
21,340,000
19,980,000
32,887,716
34,892,929
35,206,853
8,270,161
8,073,320
7,801,885
7,102,529
6,561,091
7,752,226
—
319,631
—
401,284
—
399,177
$ 323,247,698
$ 358,010,538
$ 394,894,823
$ 377,477,809
$ 457,279,200
$ 546,191,910
11.2 %
9.7 %
7.8 %
11.7 %
10.5 %
9.2 %
160
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
2015
2016
2017
2018
Other Financing Sources (Uses)
Bond premium
$
17,045,635 $
— $
6,339,230 $
3,609,365
Face amount of bonds issued
128,254,000
—
25,500,000
58,740,000
Proceeds from disposal of capital
assets
103,964
463,709
652,882
213,829
Payment to escrow agent
(143,635,520)
—
(31,589,392)
—
SBITA agreements
—
—
—
—
Transfers in
28,717,990
27,885,557
28,116,369
46,032,351
Transfers out
(29,776,581)
(29,252,060)
(29,208,275)
(47,370,020)
Total other financing sources (uses)
709,488
(902,794)
(189,186)
61,225,525
Net change in fund balance
$
3,738,390 $
12,364,451 $
11,516,715 $
47,509,836
161
Schedule 6
Fiscal Year
2019
2020
2021
2022
2023
2024
$
—
$
2,927,904
$
—
$
2,160,918
$
—
$
12,299,180
—
30,400,000
—
58,244,909
—
106,415,000
1,356,796
396,924
225,081
1,566,455
3,229,367
428,163
—
—
—
(26,716,745)
—
—
—
—
—
—
—
6,202,462
45,484,505
39,282,296
44,961,787
28,249,623
45,052,169
53,550,080
(48,005,487)
(42,788,264)
(47,364,881)
(32,091,700)
(58,254,654)
(68,226,500)
(1,164,186)
30,218,860
(2,178,013)
31,413,460
(9,973,118)
110,668,385
$
5,937,639
$
49,493,899
$
7,783,447
$
49,657,237
$
12,384,445
$
66,647,902
162
CITY OF CHANDLER, ARIZONA
TAXABLE REVENUE BY CATEGORY
LAST TEN FISCAL YEARS
Fiscal Year
2015
2016
2017
2018
Amusements
$
895,730
$
1,019,939
$
1,019,938
$
1,083,161
Contracting
8,870,092
8,855,057
11,496,791
12,388,978
General Retail
49,740,000
51,191,162
53,137,169
56,605,561
Hotel/Motel
2,892,470
2,957,685
3,424,279
3,712,085
Miscellaneous Related Revenue (1)
2,815,040
2,745,130
2,527,981
2,328,030
Publishing
260,712
248,433
186,862
182,820
Rentals - Personal Property
3,261,716
3,125,459
3,611,180
3,676,196
Rentals - Real Property
11,967,509
13,217,561
13,647,156
15,134,275
Restaurant/Bar
10,188,718
10,752,479
11,341,714
11,872,941
Telecommunications
3,435,949
3,234,369
2,796,065
2,395,673
Use Tax
1,145,534
1,127,257
3,619,340
4,394,129
Proposition 207
—
—
—
—
Utilities
13,194,526
13,786,741
13,391,857
13,824,331
Total Sales and Use Taxes
$
108,667,996
$
112,261,272
$
120,200,332
$
127,598,180
City Direct Sales Tax Rate (2)
1.76%
1.76%
1.75%
1.74%
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.
163
Schedule 7
Fiscal Year
2019
(3)
2020
2021
2022
2023
2024
$
1,318,195
$
972,105
$
789,411
$
1,348,862
$
1,499,745
$
1,718,299
17,228,786
12,824,214
14,446,470
17,894,817
27,424,398
24,868,144
60,029,293
64,911,529
75,590,425
85,823,599
95,481,330
94,343,374
4,099,450
3,560,787
3,215,504
5,980,467
6,797,429
6,773,059
1,757,235
1,710,004
2,152,443
3,983,534
5,338,248
4,087,085
207,462
177,542
197,578
204,025
217,427
173,156
4,076,298
4,282,451
3,760,815
4,207,664
5,284,141
7,262,679
16,506,671
18,184,361
19,214,217
20,876,574
23,464,287
24,642,669
12,773,198
11,987,625
13,099,159
16,324,360
17,661,723
18,556,554
2,191,747
2,337,375
1,751,284
1,571,877
1,802,196
2,048,913
5,461,771
5,335,557
7,636,473
6,966,021
6,714,688
4,042,777
—
—
256,702
1,276,846
1,518,558
1,503,202
14,218,596
14,385,889
15,419,721
15,591,363 (4)
16,845,659
18,769,693
$ 139,868,702
$ 140,669,439
$ 157,530,202
$ 182,050,009
$ 210,049,829
$ 208,789,604
1.74%
1.73%
1.70%
1.70%
1.68%
1.71%
164
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)
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%
2023
1.68%
0.65%
5.45%
0.03%
2024
1.71%
0.66%
4.93%
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.
165
CITY OF CHANDLER, ARIZONA
PRINCIPAL SALES AND USE TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
Schedule 9
Fiscal Year 2024
Fiscal Year 2015
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
$ 14,761,098
1
7.02%
$
9,999,770
1
9.20%
Taxpayer B
Construction
Contracting
12,624,454
2
6.00%
Taxpayer C
Department Store
5,474,303
3
2.60%
3,461,960
2
3.19%
Taxpayer D
Retailer
4,251,942
4
2.02%
Taxpayer E
Department Store
3,785,797
5
1.80%
2,000,503
4
1.84%
Taxpayer F
Grocery Store
3,662,207
6
1.74%
2,182,473
3
2.01%
Taxpayer G
Retailer
2,658,452
7
1.26%
Taxpayer H
Retailer
2,556,981
8
1.22%
1,937,620
5
1.78%
Taxpayer I
Retailer
2,543,081
9
1.21%
Taxpayer J
Vehicle Dealer
2,222,524
10
1.06%
1,373,539
7
1.26%
Taxpayer K
Telecommunications
1,405,314
6
1.29%
Taxpayer L
Department Store
1,302,605
8
1.20%
Taxpayer M
Utility
1,274,998
9
1.17%
Taxpayer N
Department Store
1,064,700
10
0.98%
$ 54,540,839
25.93%
$
26,003,482
23.92%
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.
166
CITY OF CHANDLER, ARIZONA
RATIOS OF OUTSTANDING DEBT
LAST TEN FISCAL YEARS
Schedule 10
Governmental Activities
Special
General
Revenue
Assessment
General
Special
Subscription
Obligation
Bonds
Bonds
Fiscal
Obligation
Revenue
Assessment
Based IT
Bond Issuance
Issuance
Issuance
Year
Bonds
Bonds
Bonds
Arrangements
Premiums
Premiums
Premiums
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
2023
176,702,193
—
—
482,119
12,825,886
—
—
2024
249,009,159
—
—
4,579,664
22,348,687
—
—
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
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
8,772,310
—
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
2023
59,712,807
—
202,930,000
4,006,747
—
8,338,191
2024
49,480,841
—
250,405,000
3,159,465
—
16,806,399
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)
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
2023
253,247,633
2,427,863
250,819,770
61,704,952,635
0.41%
464,515,824
3.29%
1,642
2024
323,998,152
1,646,322
322,351,830
73,058,672,230
0.44%
591,209,551
3.88%
2,052
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.
167
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2024
Schedule 11
Estimated
Estimated Share
Debt
Percentage
of Overlapping
Governmental Unit
Outstanding
Applicable
Debt
Debt repaid with property taxes
State of Arizona
None
4.70 %
None
Maricopa County
None
7.13
None
Maricopa County Community College District
$
87,320,000
7.13
$
6,223,353
Maricopa County Special Healthcare District
574,205,000
7.13
40,923,964
Chandler Unified School District No. 80
180,475,000
19.37
34,958,169
Kyrene Elementary School District No. 28
264,330,000
4.42
11,692,948
Mesa Unified School District No. 4
131,680,000
2.61
3,433,169
Gilbert Unified School District No. 41
329,256,000
75.14
247,410,038
Tempe Union High School District No. 213
111,280,000
16.49
18,346,626
East Valley Institute of Technology
None
14.56
None
Subtotal, overlapping debt
362,988,267
City direct debt
275,937,510
100.00
275,937,510
Total direct and overlapping debt
$
638,925,777
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 2023-24 for the overlapping jurisdiction to the amount of such
valuation which lies within the City of Chandler.
168
CITY OF CHANDLER, ARIZONA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Fiscal Year
2015
2016
2017
2018
6% General Obligation Bond Limitation
Debt limit
$ 142,827,478 $ 190,024,847 $ 198,432,895 $ 209,370,282
Total net debt applicable to limit
9,848,400
9,427,250
8,952,650
14,974,350
Legal debt margin
$ 132,979,078 $ 180,597,597 $ 189,480,245 $ 194,395,932
Total net debt applicable to the limit as a
percentage of the debt limit
6.90%
4.96%
4.51%
7.15%
20% General Obligation Bond Limitation
Debt limit
$ 476,091,596 $ 633,416,159 $ 661,443,986 $ 697,900,943
Total net debt applicable to limit
352,366,600 323,442,750 300,592,650 324,166,628
Legal debt margin
$ 123,724,996 $ 309,973,409 $ 360,851,336 $ 373,734,315
Total net debt applicable to the limit as a
percentage of the debt limit
74.01%
51.06%
45.44%
46.45%
Fiscal Year 2014-15 through Fiscal Year 2018-19: Piper Jaffray Inc.
Fiscal Year 2019-20 through Fiscal Year 2022-23: 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).
169
Schedule 12
Legal Debt Margin Calculation for Fiscal Year 2024
Full Cash Assessed Valuation as of June 30, 2024
$ 7,380,893,156
Debt limit (6% of assessed value)
442,853,589
Debt applicable to limit:
6% general obligation bonds
8,437,480
Excess premium on bonds outstanding
474,343
Legal 6% debt margin
$
433,941,766
Debt limit (20% of assessed value)
$ 1,476,178,631
Debt applicable to limit:
20% general obligation bonds
290,052,520
Excess premium on bonds outstanding
20,503,303
Legal 20% debt margin
$ 1,165,622,808
Fiscal Year
2019
2020
2021
2022
2023
2024
$
232,258,669 $
258,505,031 $
280,953,536 $
300,769,253 $
376,810,629 $
442,853,589
12,511,300
9,772,578
6,759,506
6,121,222
5,522,089
8,911,823
$
219,747,369 $
248,732,453 $
274,194,030 $
294,648,031 $
371,288,540 $
433,941,766
5.39%
3.78%
2.41%
2.04%
1.47%
2.01%
$
774,195,564 $
861,683,439 $
936,511,789 $ 1,002,564,178 $ 1,256,035,431 $ 1,476,178,631
298,881,202
303,956,132
277,073,742
285,874,432
242,278,193
310,555,823
$
475,314,362 $
557,727,307 $
659,438,047 $
716,689,746 $ 1,013,757,238 $ 1,165,622,808
38.61%
35.27%
29.59%
28.51%
19.29%
21.04%
170
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
2015
$
14,633,470
$
8,257,078
$
6,376,392
$
3,970,000
$
462,046.67
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
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
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
2023
315,153,482
—
315,153,482
12,980,000
6,327,966
16.32
2024
339,503,392
—
339,503,392
9,410,000
6,910,336
20.80
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.
171
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
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.
172
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
2020
2021
2022
2023
2024
Mining, Utility, Commercial,
and Industrial
18.00 %
18.00 %
17.50 %
17.00 %
16.50 %
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
15.00
15.00
15.00
14.00
14.00
Source: Piper Sandler Companies as compiled from State and County Abstract of the Assessment Roll (Arizona
Department of Revenue).
173
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
2023-24
$
1.0926 $
42,198,604 $
41,767,411
98.98 %
2022-23
1.1026
40,823,212
40,571,534
99.11
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
Source: Piper Sandler Companies as compiled from County Department of Finance.
174
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING ASSESSED VALUATIONS AND TAX RATES PER $100 ASSESSED
VALUATION
JUNE 30, 2024
Schedule 16
FY 2023-24 Net
Limited Property
Assessed Valuation
FY 2023-24
Total Tax Rate
per $100
Assessed Valuation
State of Arizona (1)
$
83,026,514,349 $
—
Maricopa County
54,722,310,149
1.2044
Maricopa County Community College District
54,722,310,149
1.1388
Maricopa County Library District
54,722,310,149
0.0488
Maricopa County Flood Control District
50,354,573,089
0.1536
Maricopa County Fire District
54,722,310,149
0.0081
Maricopa County Special Health Care District
54,722,310,149
0.2916
Central Arizona Water Conservation District
55,027,363,791
0.1400
East Valley Institute of Technology District No. 401 (2)
26,795,538,826
0.0500
Chandler Unified School District No. 80
3,864,503,975
5.8419
Tempe Union High School District No. 213
4,582,133,019
2.4272
Kyrene Elementary School District No. 28
2,627,427,786
3.5199
Mesa Unified School District No. 4
3,879,526,341
7.0369
Gilbert Unified School District No. 41
2,652,529,469
5.6955
City of Chandler
3,900,094,692
1.0926
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 $0.3909 for fiscal year
2023-24 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.
175
CITY OF CHANDLER, ARIZONA
PROPERTY VALUE BY PROPERTY CLASSIFICATION
LAST FIVE FISCAL YEARS
Schedule 17
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 2022-23 Net
Full Cash
Assessed
Valuation
FY 2023-24 Net
Full Cash
Assessed
Valuation
FY 2023-24
Annual
Percentage
Change
Mining, Utility,
Commercial, and
Industrial
$ 1,246,170,328
$ 1,412,928,374
$ 1,488,882,870
$ 1,534,793,910
$ 1,800,359,153
14.75%
Agriculture and
Vacant Land
78,888,739
77,850,859
76,801,910
72,256,990
82,244,489
12.14%
Owner-Occupied
Residential
1,681,112,768
1,837,472,779
1,990,237,285
2,135,013,774
2,824,334,410
24.41%
Leased or Rented
Residential
738,411,405
847,104,454
946,787,996
1,052,393,288
1,346,567,408
21.85%
Railroad, Private
Car, and Airline
Flight Property
1,910,025
2,011,500
2,011,500
2,216,430
3,849,664
0.00%
Historical Property
124,084,500
130,572,188
177,317,246
215,617,419
222,807,895
3.23%
Commercial
Historic Property
400,055
477,042
520,137
529,079
14,138
(3642.25)%
TOTAL
$ 3,870,977,820
$ 4,308,417,196
$ 4,682,558,944
$ 5,012,820,890
$ 6,280,177,157
25.28%
Source: Piper Sandler Companies as compiled from State and County Abstract of the Assessment Roll (Arizona
Department of Revenue).
176
CITY OF CHANDLER, ARIZONA
NET ASSESSED LIMITED PROPERTY ASSESSED VALUE OF MAJOR TAXPAYERS
JUNE 30, 2024
Schedule 18
Taxpayer
Description
FY 2023-24 Net
Limited
Property
Assessed Value
As % of Total
FY 2023-24 Net
Limited
Property
Assessed
Value
Intel Corporation
Manufacturing Plant
$
247,120,632
6.34%
CyrusOne, LLC
Data Center
32,670,386
0.84
Wells Fargo Bank
Financial Services
27,063,923
0.69
Freescale Semiconductor, Inc.
Manufacturing Plant
19,766,297
0.51
CAZ 7, LLC
Manufacturing Plant
16,924,805
0.43
TWC Chandler, LLC
Commercial Rental Property
15,119,503
0.39
Microchip Technology, Inc.
Manufacturing Plant
14,788,615
0.38
Bank of America
Financial Services
11,925,092
0.31
CAZ 1 DE, LLC
Commercial Rental Property
11,883,228
0.30
Air Products and Chemicals
Manufacturing and Supply
11,160,698
0.29
$
408,423,179
10.48%
Total City Net Limited Property Assessed Valuation
$ 3,900,094,692
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.
177
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
2023-24
$61,704,952,635
2022-23
48,805,511,338
2021-22
40,751,143,934
2020-21
36,949,424,457
2019-20
33,312,389,044
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
2023-24
$
3,900,094,692 $
54,722,310,149 $
83,026,514,349
2022-23
3,702,957,065
51,575,018,189
78,415,651,028
2021-22
3,463,794,661
48,724,126,672
74,200,233,397
2020-21
3,243,434,243
45,704,969,813
69,914,521,042
2019-20
3,011,152,689
43,194,326,395
66,154,632,834
Comparative Net Full Cash Assessed Value History
Fiscal Year
City of Chandler
Maricopa County
State of Arizona
2023-24
$
6,280,177,157 $
91,557,158,472 $
129,473,530,919
2022-23
5,012,820,890
72,238,314,892
103,872,223,919
2021-22
4,682,558,944
67,535,008,138
97,282,221,465
2020-21
4,308,417,196
61,824,712,434
90,007,317,461
2019-20
3,870,977,820
56,588,192,576
82,730,928,616
Source: Piper Sandler Companies as compiled from State and County Abstract of the Assessment Roll (Arizona
Department of Revenue) and Arizona Tax Research Association.
178
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT RATIOS
JUNE 30, 2024
Schedule 20
Per Capital
As % of City's
As % of City's
Bonded Debt
2023-24
2023-24
Population
Net Full Cash
Estimated Net
Estimates @
Assessed
Full Cash
288,088 (1)
Value
Value
Direct General Obligation Bond Debt
$ 298,490,000 $
1,036.11
4.75
0.48
Direct Overlapping General Obligation Bond
Debt
$ 648,157,418 $
2,249.86
10.32
1.05
Source:
(1) City of Chandler, Development Services Department
179
CITY OF CHANDLER, ARIZONA
POPULATION STATISTICS
Schedule 21
Year
City of Chandler
Maricopa County
State of Arizona
2024 estimate
288,088 (1)
4,757,600 (2)
7,658,600 (2)
2023 estimate
282,891 (1)
4,672,900 (2)
7,534,922 (2)
2022 estimate
282,873 (1)
4,575,603 (2)
7,489,121 (2)
2021 estimate
280,178 (3)
4,506,505 (3)
7,387,800 (3)
2020 Census
275,987 (1)
4,420,568 (2)
7,151,502 (2)
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 (3)
4,155,302 (3)
6,866,195 (3)
2015 mid-decade
243,679 (1)
4,175,049 (2)
6,833,596 (2)
2014 estimate
241,264 (1)
4,008,651 (2)
6,662,486 (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
180
CITY OF CHANDLER, ARIZONA
EXCISE TAX COLLECTIONS
Schedule 22
2019-20 (1)
2020-21 (1)
2021-22 (1)
2022-23 (1)
2023-24 (1)
Adopted
2024-25
Transaction Privilege Tax
$
140,798,389
$ 155,638,444
$ 178,567,736
$ 205,020,881
$ 210,737,044
$ 197,930,400
State Shared Sales Tax
26,597,361
30,982,818
38,801,443
41,309,738
42,363,408
41,500,000
State Shared Income Tax
33,255,159
37,324,127
36,011,056
53,013,618
74,386,039
60,100,000
Franchise Fees
3,432,995
3,615,294
3,652,812
3,630,508
3,383,051
3,650,000
Licenses and Permits
7,908,291
6,835,817
7,086,928
8,742,071
5,095,759
6,978,300
Fines and Forfeitures
2,714,065
2,316,000
2,791,624
4,127,033
4,296,570
3,657,800
Totals
$
214,706,260
$ 236,712,500
$ 266,911,599
$ 315,843,849
$ 340,261,871
$ 313,816,500
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).
181
CITY OF CHANDLER, ARIZONA
TRANSACTION PRIVILEGE (SALES) TAX RATES BY CATEGORY
JUNE 30, 2024
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
182
CITY OF CHANDLER, ARIZONA
STATE SALES TAX TAXABLE ACTIVITIES, TAX RATES AND DISTRIBUTION SHARE
JUNE 30, 2024
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.
183
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
2019-20
2020-21
2021-22
2022-23
2023-24
System Revenues:
Service Fees
$ 116,254,245 $ 120,727,939 $ 116,020,531 $ 114,299,984 $ 120,915,803
Miscellaneous
97,652
35,573
568,571 12,832,795
21,558
Interest Income
8,772,310
264,558
(6,810,687)
3,442,281
9,367,520
Total System Revenues
$ 125,124,207 $ 121,028,070 $ 109,778,415 $ 130,575,060 $ 130,304,881
System Expenditures:
General and Administration
$ 6,511,083 $ 6,510,382 $ 6,533,212 $ 6,872,315 $ 6,987,459
Personnel Services
17,613,794 17,923,155 17,632,637 19,509,838 21,831,616
Contractual Services
13,240,678 14,338,257 16,597,926 18,544,747 20,137,906
Commodities
25,283,817 21,857,415 22,851,386 35,663,988 31,875,211
Total System Expenditures
$ 62,649,372 $ 60,629,209 $ 63,615,161 $ 80,590,888 $ 80,832,192
Net Income Available for Debt
Service
$ 62,474,835 $ 60,398,861 $ 46,163,254 $ 49,984,172 $ 49,472,689
Water and Sewer Revenues Bond
(Senior Obligation) Debt Service
$ 2,433,600 $
— $
— $
— $
—
Approximate Debt Service
Coverage for Senior Obligations
20.39x
N/A
N/A
N/A
N/A
184
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)
07/01/22
2.00 % (6)
9.20 % (6)
01/01/24
7.00 % (7)
8.00 % (7)
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.
(6) In January 2022, a Cost of Service Study was completed and base water rates increased 2.0%.
Additionally,base wastewater rates were increased by 9.2% cover debt service costs along with rising costs
for infrastructure and expansion of facilities. Rate increases were effective July 1, 2022.
(7) Water rates increased by 7.0% and wastewater rates were increased by 8% to cover debt service costs along
with rising costs for infrastructure and expansion of facilities. Rate increases were effective January 1, 2024.
185
CITY OF CHANDLER, ARIZONA
TOP 10 WATER AND WASTEWATER CUSTOMERS
JUNE 30, 2024
Schedule 27
Water
Customer name
Amount
Intel Corporation
$ 6,643,366
NXP Semiconductors
1,356,004
Chandler Unified School District
548,780
Air Products & Chemicals
435,284
Digital 2121 South Price, LLC
202,104
Gleiberman Property, Inc.
163,825
Chandler Regional Medical Center/Dignity Health
138,884
Townsquare Apartments
126,222
TWC Chandler, LLC
124,981
MG Country Brook Apartments, LLC
109,292
Wastewater
Customer name
Amount
Intel Corporation
$ 9,752,869
NXP Semiconductors
2,141,284
Air Products & Chemicals
1,468,487
Gila River Inadian Community (Lone Butte)
292,243
Chandler Unified School District
274,223
Chandler Regional Medical Center/Dignity Health
210,503
Gleiberman Property, Inc.
112,893
Microchip Technology
110,831
BMF IV AZ Lagunal Village, LLC
107,819
Digital 2121 South Price, LLC
103,781
Source: City of Chandler, Management Services Department
186
CITY OF CHANDLER, ARIZONA
NUMBER OF WATER AND WASTEWATER CUSTOMERS
LAST TEN FISCAL YEARS
2015
2016
2017
2018
WATER
Residential
75,035
75,883
77,062
77,674
Commercial
4,243
4,309
4,535
4,550
Multi-Unit
1,043
1,087
1,107
1,128
Industrial
58
61
63
66
Other
1,536
1,640
2,034
2,116
WASTEWATER
Residential
73,363
74,346
75,761
76,517
Commercial
2,033
2,201
2,138
2,329
Multi-Unit
887
920
915
952
Industrial
37
34
38
48
Other
477
475
590
592
Source: City of Chandler, Management Services Department
187
Schedule 28
2019
2020
2021
2022
2023
2024
78,244
78,928
79,961
79,873
79,970
80,163
4,927
2,546
2,577
4,919
4,898
4,577
1,134
1,115
1,124
1,151
1,191
1,199
67
63
63
54
55
57
2,389
647
647
800
800
1,092
77,089
77,797
78,794
79,294
79,127
78,595
2,371
2,420
2,450
2,540
2,528
2,137
956
965
974
999
1,002
831
48
48
48
49
48
23
598
603
603
604
598
431
188
CITY OF CHANDLER, ARIZONA
DIRECT AND OVERLAPPING GENERAL OBLIGATION BONDED DEBT OUTSTANDING
JUNE 30, 2024
Schedule 29
2023-24
2023-24
Overlapping
Proportion Applicable
General
to City of Chandler
Obligation
Approximate
Net Debt
Overlapping Jurisdiction
Bonded Debt
Percent
Amount
State of Arizona
None
4.70 %
None
Maricopa County
None
7.13
None
Maricopa County Community College District
$
87,320,000
7.13
$
6,223,353
Maricopa County Special Health Care District
574,205,000
7.13
40,923,964
Kyrene Elementary School District No. 28
180,475,000
19.37
34,958,169
Mesa Unified School District No. 4
264,330,000
4.42
11,692,948
Gilbert Unified School District No. 41
131,680,000
2.61
3,433,169
Chandler Unified School District No. 80
329,256,000
75.14
247,410,038
Tempe Union High School District No. 213
11,128,000,000
16.49
18,346,626
East Valley Institute of Technology District No.
401
None
14.56
None
City of Chandler
298,490,000
100.00
298,490,000
Total Direct and Overlapping General Obligation Bonded Debt Outstanding
$
661,478,267
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
$
9.9837
Inside Mesa Unified School District No. 4
$
11.3251
Inside Tempe Union High School District No. 213 and
Kyrene Elementary School District No. 28
$
10.2353
Inside Chandler Unified School District No. 80
$
10.1301
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 2023-24 for the overlapping jurisdiction to the amount of such
valuation which lies within the City of Chandler.
189
CITY OF CHANDLER, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Schedule 30
Total
Per Capita
Fiscal
Personal
Median
Unemployment
Personal
Year
Population (1)
Income (2)
Age (2)
Rate (3)
Income (2)
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
2022-23
282,891
14,130,122,559
36.1
2.9
49,949
2023-24
288,088
15,232,941,088
37.4
3.0
52,876
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.
190
191
CITY OF CHANDLER, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND TEN YEARS AGO
Schedule 31
2024
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
12,000
1
7.47%
Wells Fargo Bank
5,500
2
3.42%
Chandler Unified School District
4,900
3
3.05%
Bank of America
3,600
4
2.24%
Chandler Regional Medical Center/Dignity Health
3,000
5
1.87%
Northrop Grumman
2,150
6
1.34%
Chandler-Gilbert Community College
1,900
7
1.18%
City of Chandler
1,800
8
1.12%
Microchip Technology
1,700
9
1.06%
NXP Semiconductors
1,700
9
1.06%
PayPal
1,500
10
0.93%
Total
39,750
24.74%
2015
Percentage
of Total City
Employer
Employees
Rank
Employment
Intel Corporation
11,300
1
8.75%
Chandler Unified School District
4,900
2
3.79%
Bank of America
3,800
3
2.94%
Wells Fargo Bank
2,600
4
2.01%
Verizon Wireless
2,400
5
1.86%
City of Chandler
2,175
6
1.68%
Chandler Regional Medical Center/Dignity Health
2,100
7
1.63%
Paypal
2,000
8
1.55%
Orbital ATK
1,650
9
1.28%
Microchip Technology
1,626
10
1.26%
Total
34,551
26.75%
Source: City of Chandler, Economic Development Division, City of Chandler Human Resources Department and
Arizona Office of Employment and Population Statistics.
192
CITY OF CHANDLER, ARIZONA
EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2014-15
2015-16
(1)
2016-17
(2)
2017-18
Full Time Equivalent Personnel
Mayor and council
4
4
11
4
City clerk
6
6
7
6
City manager
176
240
206
199
Communications/public affairs
13
15
15
15
City magistrate
37
39
38
40
Law
31
31
31
30
Management services
69
67
64
67
Total General Government
336
402
372
361
Total Transportation and Development
165
150
152
160
Total Community Services
198
156
199
202
Police
483
490
491
501
Fire
237
240
222
233
Total Public Safety
720
730
713
734
Municipal utilities administration
5
8
7
7
Water
87
87
89
90
Wastewater
62
65
69
74
Solid waste
20
21
20
18
Total Municipal Utilities
174
181
185
189
Municipal utilities administration
—
—
—
—
Water
—
—
—
—
Wastewater
—
—
—
—
Solid waste
—
—
—
—
Public works administration
—
—
—
—
Streets
—
—
—
—
Total Public Works and Utilities
—
—
—
—
Total Primary Government
1,593
1,619
(1)
1,621
(2)
1,646
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.
(4) The significant changes between 2023 and 2024 are a result of the Cultural Development Department
consolidating into the City Manager 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.
193
2018-19
(3)
2019-20
2020-2021
2021-2022
2022-2023
2023-24
5
5
5
6
5
6
6
6
6
4
5
6
193
194
198
196
191
255
(4)
14
15
14
12
14
14
37
40
33
35
38
36
32
32
31
32
33
31
68
67
66
59
66
68
355
359
353
344
352
416
84
77
76
77
82
78
195
199
194
194
219
186
(4)
485
488
477
476
497
520
233
229
228
235
244
260
718
717
705
711
741
780
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6
6
7
5
8
8
90
90
89
28
91
97
66
68
71
47
74
73
19
21
21
21
21
21
1
2
2
2
2
2
70
78
79
58
82
81
252
265
269
161
278
282
1,604
(3)
1,617
1,597
1,487
1,672
1,742
(4)
194
CITY OF CHANDLER, ARIZONA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2014-15
2015-16
2016-17
2017-18
General Government
Meeting notices posted
544
565
535
681
City council actions and agenda items
prepared
867
844
860
838
Grant awards received
51
46
43
27
Inventory turnover ratio
1.57
1.74
1.81
1.79
Transportation & Development
Building permits issued
5,170
5,142
4,635
3,944
Community Services
Library circulation
2,163,076
2,101,421
2,059,429
2,041,574
Center for the Arts events & exhibits
939
985
1,048
1,177
Public Safety
Crime rate (per 1,000 population)
23
26
26
25
Total calls for police services (estimated)
139,177
145,466
156,186
159,301
Total calls for fire services
22,785
23,966
25,072
25,185
Fire inspections
4,692
5,814
4,635
5,135
Fire investigations
27
30
27
41
Municipal Utilities
Water connections
80,401
83,089
84,670
84,338
Operating wells
28
28
31
32
Daily pumping capacity - wells (gallons)
64,400,000
66,300,000
74,400,000
74,100,000
Daily pumping capacity - plants (gallons)
72,000,000
72,000,000
72,000,000
84,000,000
Sewer connections
76,492
78,144
78,972
79,841
Sanitary sewer (miles)
911
917
928
933
Solid waste customers served
71,860
73,162
73,288
75,018
Solid waste refuse collected (tons)
84,209
81,653
80,069
83,004
Solid waste refuse recycled (tons)
22,442
22,102
22,305
22,101
Source: City of Chandler Departments
195
Schedule 33
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
666
542
395
377
210
387
789
739
460
1,299
409
597
24
33
40
39
39
43
2.04
2.40
1.73
2.00
2.13
2.10
4,011
4,091
4,601
4,615
3,188
3,339
1,801,237
1,415,291
1,356,695
1,308,861
1,581,822
1,659,547
825
537
389
690
790
799
22
23
19
20
17
16
154,736
146,859
139,236
146,008
154,890
148,327
26,818
26,371
26,676
28,582
28,654
28,882
6,698
6,641
3,257
3,389
3,955
6,362
18
23
17
14
16
41
85,416
86,098
87,251
83,237
86,940
87,207
31
31
30
30
31
32
71,300,000
71,800,000
71,800,000
69,000,000
73,000,000
76,000,000
84,000,000
84,000,000
84,000,000
84,000,000
135,000,000
135,000,000
81,033
81,796
82,895
81,419
81,899
83,620
935
941
945
947
958
1,039
75,675
76,773
77,297
76,249
78,878
79,116
84,500
86,950
94,218
93,487
86,901
79,563
22,887
21,800
22,775
20,876
18,359
18,438
196
CITY OF CHANDLER, ARIZONA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Function/Program
2014-15
2015-16
2016-17
2017-18
Community Services
Developed parks
64
65
65
65
Developed acres
1,232
1,236
1,244
1,244
Undeveloped acres
309
302
299
299
Swimming pools
6
6
6
6
Lighted fields
41
41
43
43
Library bookstock
396,773 (1)
341,073
360,618
359,445
Transportation and Development
Total miles streets (center line)
841
855
855
857
Street lights
27,700
27,700
27,800
27,199
Signalized intersections
218
218
218
220
Public Safety
Police stations
3
3
3
3
Fire stations
10
10
10
11
General Government
Based aircraft
425
427
455
457
Municipal Utilities
Water mains (miles)
1,278
1,196 (2)
1,283
1,212
Fire hydrants
13,118
13,207
15,708
15,970
Average daily treatment (mgd)
28
29
29
28
Source: City of Chandler Departments
(1) The 2014-15 decrease in library bookstock is due to less demand from the increase usage of digital materials
and removal of damaged, outdated and obsolete material no longer being circulated.
(2) Beginning in 2015-16, city staff is updating the Geographic Information System through a review of over 700
As-builts, so a revised figure is reflected. The revised figure consists of active and city owned utilities.
(3) The significant changes in 2018 and 2019 are the result of the Streets and Municipal Utilities consolidating
into the Public Works and Utilities Department
(4) The significant changes between 2023 and 2024 is due to the Cultural Development Department
consolidating into the City Manager Department.
197
Schedule 34
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
67
67
67
68
69
69
1,281
1,281
1,301
1,309
1,317
1,317
231
231
219
209
201
201
6
6
6
6
6
6
41
43
50
51
60
64
310,888
310,812
294,276
295,573
302,599
307,862
857
858
858
858
1,020
2,090
29,500
29,500
29,731
28,515
28,462
28,538
225
226
232
234
238
238
3
3
3
3
3
3
11
11
11
11
11
11
523
440
448
441
449
452
1,218
1,228
1,232
1,237
1,250
1,242
16,159
16,296
16,492
13,780
13,371
13,930
54
31
31
28
84
84
198
199
Phone (480) 782-2333
www.chandleraz.gov/accounting
Mailing Address
Mail Stop 702
P.O. Box 4008
Chandler, Arizona 85244-4008
Accounting Division
Third Floor
175 S. Arizona Avenue Chandler,
Arizona 85225