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| City Manager Chris Brady |
Attachments for File #19-0003 are included below for you to use to see what the overview is as of December 10, 2018 by the city's Audit, Finance and Enterprise Committee [1].
It's a fast 12-page download.
[2] The Presentation takes a short while to download to open a 191-page document.. The Table of Contents alone is four pages long [copied and inserted below]
There's a 3-page [Pgs 17-19] INDEPENDENT AUDITORS’ REPORT from Clifton Larson Allen
REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Mesa, Arizona’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Mesa Finance Director, P.O. Box 1466, Mesa, Arizona, 85211-1466.
LIABILITIES Accounts Payable and Accrued Liabilities 24,358 9,722 34,080
Claims Payable 37,029 - 37,029
Customer and Defendant Deposits 7,190 - 7,190
Liabilities Payable from Restricted Assets 48,431 99,749 148,180
Noncurrent Liabilities, Due Within One Year 41,741 36,352 78,093
Noncurrent Liabilities, Due in More Than One Year 472,231 1,299,888 1,772,119
Net Pension and OPEB Liability 1,399,889 141,767 1,541,656
Total Liabilities 2,030,869 1,587,478 3,618,347
DEFERRED INFLOWS OF RESOURCES
Pensions and OPEB 67,124 8,526 75,650
Total Deferred Inflows of Resources 67,124 8,526 75,650
NET POSITION
Net Investment in Capital Assets 1,019,888 266,012 1,285,900 Restricted For: Bond Indentures - 29,505 29,505
Construction - 3,716 3,716
Debt Service 25,490 7,219 32,709
Public Safety 5,369 - 5,369
Transportation Programs 54,265 - 54,265
Other Programs 3,181 - 3,181
Unrestricted (858,392) 199,531 (658,861)
Total Net Position 249,801$ 505,983$ 755,784
_________________________________________________________________________
KKKK
| File #: | 19-0003 |
| Type: | Resolution | Status: | Agenda Ready |
| In control: | City Council |
| On agenda: | 1/7/2019 |
| Title: | Accepting the City's Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ended June 30, 2018. |
| Attachments: | 1. Overview of Fiscal Year 2018 Comprehensive Annual, 2. Presentation - Audit, Finance and Enterprise Committee, 3. City of Mesa June 30 2018 CAFR |
Audit, Finance and Enterprise Committee
December 10, 2018
845 KB [12 pages]
GASB STATEMENT NO. 75 ACCOUNTING AND FINANCIAL REPORTING FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
• New accounting standard for fiscal year 2018.
• Requires governments to record full amount of OPEB liabilities in the financial statements. Previously a portion of OPEB liabilities were recorded, and full amount included in footnote disclosure.
• Expanded the OPEB footnote disclosures and added several Required Supplementary schedules.
• OPEB liability on the City’s Net Position increased by $200.6 million as a result of implementing GASB 75
TOTAL ASSETS AT JUNE 30, 2018 $4.2 BILLION
TOTAL LIABILITIES AT JUNE 30, 2018 $3.6 BILLION
CITYWIDE LONG-TERM DEBT
Issue Type
Principal Outstanding General Obligation Bonds $ 366 M
Highway User Revenue Bonds 77
Revenue Bonds 1,227
Excise Tax Obligations 49
Special Assessment Bonds 1
Notes Payable 2
Total $1,722 M
[Note: Eastmark CFD bonds not included above $28.8 Million]
Questions ?
Irma Ashworth Finance Director Irma.Ashworth@mesaaz.gov (480) 644-2605
_______________________________________________________________________
TABLE OF CONTENTS
I
Exhibit Page
SECTION I – INTRODUCTORY SECTION Table of Contents I Letter of Transmittal V Certificate of Achievement for Excellence in Financial Reporting X
SECTION II - FINANCIAL SECTION Independent Auditors’ Report 1 Management’s Discussion and Analysis 4 Basic Financial Statements Government-wide Financial Statements
Statement of Net Position A-1 16 Statement of Activities A-2 17
Fund Financial Statements
Governmental Funds Financial Statements
Balance Sheet A-3 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position A-4 20 Statement of Revenues, Expenditures and Changes in Fund Balances A-5 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities A-6 22
Proprietary Funds Financial Statements
Statement of Net Position A-7 23 Statement of Revenues, Expenses and Changes in Net Position A-8 25 Statement of Cash Flows A-9 27
Fiduciary Funds Financial Statements
Statement of Fiduciary Assets and Liabilities A-10 29
TABLE OF CONTENTS (Continued)
II
Exhibit Page Notes to the Financial Statements
Note 1 – Summary of Significant Accounting Policies 30 Note 2 – Reconciliation of Governmental Fund Financial Statements to Government-wide Financial Statements 40 Note 3 – Fund Balance 47 Note 4 – Pooled Cash and Investments 48 Note 5 – Accounts Receivable and Due from Other Governments 53 Note 6 – Interfund Receivables, Payables and Transfers 54 Note 7 – Capital Assets 56 Note 8 – Long-term Obligations 59 Note 9 – Refunded, Refinanced and Defeased Obligations 71 Note 10 – Self-Insurance Internal Service Fund 72 Note 11 – Commitments and Contingent Liabilities 73 Note 12 – Net Position 73 Note 13 – Enterprise Activities Operations Detail 74 Note 14 – Joint Ventures 74 Note 15 – Retirement and Pension Plans 77 Note 16 – Post-Employment Benefits 93 Note 17 – Subsequent Events 93
Required Supplementary Information Schedule of the City’s Proportionate Share of Net Pension Liability Cost-Sharing Pension Plan B-1 94 Schedule of Changes in the City’s Net Pension/OPEB Liability and Related Ratios Agent Plans B-2 95 Schedule of City Pension Contributions B-3 98 Notes to Pension Plan Schedules 100 Schedule of Changes in the City’s Total OPEB Liability B-4 101 Budgetary Comparison Schedule – General Fund B-5 102 Notes to Budgetary Comparison Schedules 103
TABLE OF CONTENTS (Continued)
III
Exhibit Page Combining Statements Non-Major Governmental Funds
Combining Balance Sheet C-1 104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances C-2 108
Internal Service Funds Combining Statement of Net Position C-3 112 Combining Statement of Revenues, Expenses and Changes in Net Position C-4 113 Combining Statement of Cash Flows C-5 114
Agency Fund
Statement of Changes in Assets and Liabilities C-6 115
Supplemental Information Budgetary Comparison Schedules – Other Non-major Funds
Budgetary Comparison Schedule – Community Facilities District D-1 116 Budgetary Comparison Schedule – Environmental Compliance D-2 117 Budgetary Comparison Schedule – Grants and Special Programs D-3 118 Budgetary Comparison Schedule – Highway User Revenue D-4 119 Budgetary Comparison Schedule – Mesa Housing Authority D-5 120 Budgetary Comparison Schedule – Quality of Life Sales Tax D-6 121 Budgetary Comparison Schedule – Street Sales Tax D-7 122 Budgetary Comparison Schedule – General Capital Projects D-8 123 Budgetary Comparison Schedule – Streets D-9 124
TABLE OF CONTENTS (Concluded)
IV
Exhibit Page SECTION III – STATISTICAL SECTION Financial Trends
Net Position by Components – Last Ten Fiscal Years (Accrual Basis of Accounting) I 125 Changes in Net Position – Last Ten Fiscal Years (Accrual Basis of Accounting) II 127 Fund Balance, Governmental Funds – Last Ten Fiscal Years (Modified Accrual Basis of Accounting) III 133 Changes in Fund Balance, Governmental Funds – Last Ten Fiscal Years (Modified Accrual Basis of Accounting) IV 135
Revenue Capacity
Sales Tax Collections by Category – Last Ten Fiscal Years V 137 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years VI 139
Debt Capacity
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years VII 140 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years VIII 142 Direct and Overlapping Governmental Activities Debt IX 143 Legal Debt Margin Information – Last Ten Fiscal Years X 144 Pledged-Revenue Coverage – Last Ten Fiscal Years XI 146
Demographic and Economic Information Demographic and Economic Statistics – Last Ten Fiscal Years XII 148 Principal Employers – Current Year and Ten Years Ago XIII 149
Operating Information Full-Time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years XIV 150 Operating Indicators by Function/Program – Last Ten Fiscal Years XV 152 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years XVI 1
NOTE
The largest portion of net position, $1.3 billion, reflects the City’s investment in capital assets (land, buildings, equipment, infrastructure, etc.) less any outstanding related debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. The restricted portion of the City's net position, $128.7 million, represents resources that are subject to external restrictions on how they may be used. Such restrictions include debt service payments, transportation programs, other capital projects and required reserves.
The unrestricted net position of ($658.9) million is primarily due to the impact of the long-term liability associated with pensions and OPEB ($1.5 billion).
At the end of the current fiscal year, the City had total outstanding debt was $1.75 billion, which is an increase of $12.4 million.
Of this amount, $414.8 million comprises debt backed by the full faith and credit of the City and $1.3 billion represents bonds secured by specified revenue sources (i.e., Utility System Revenue and Highway User Revenue).
The City’s outstanding long-term debt (considering new borrowings, debt retirements, and defeasance) increased $12.4 million.
The change in debt includes new borrowings during the fiscal year totaling $138.9 million, defeasance of $15.2 million, and principal payments of $111.2 million.
Additional information on the City’s long-term obligations can be found in Note 8 of the notes to the basic financial statements and Table X in the Statistical Section.
