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HomeMy WebLinkAboutCity of Glendale - Public Financial ReportFiscal Year Ended June 30, 2021 Popular Annual Financial Report CITY OF GLENDALE, CALIFORNIA GLENDALECITYHALLGLENDALECITYHALL THEJEWEL CITY INCORPORATED1906 TABLE OF CONTENTS Organizational Structure…………………………………………………………………………………………....1 Introduction & City by the Numbers……………………………………………………………………………...2 Economic Outlook & Financial Highlights…………………………………………………….………………...3 Financial Highlights (cont.) & General Fund Available Resources...……………………………………....4 General Fund Revenues…..………………………………………………...……………………………………....5 General Fund Expenditures & Measure S………...….……………………………………………….………....7 Enterprise Funds…….…………………………..…………………………………………………………………....8 Capital Asset & Cash & Debt………………....………….……………………………………………………..…..9 Appropriation An authorization by the City Council to make expenditures/expenses and to incur obligations for a specific purpose within a specific time frame. Assets Resources owned and controlled by the City that are expected to benefit future operations. Deferred Outflows of Resources Consumption of net position applicable to future reporting periods. Liabilities Debt or obligations that the City must pay. Deferred Inflows of Resources Acquisition of net position applicable to future reporting periods. Net Investment in Capital Assets City’s investment in capital assets, less any related outstanding debt used to acquire those assets. Net Position City’s net worth (Net position = Assets + Deferred outflows of resources – Liabilities – Deferred inflows of resources). Charges for Services Revenues generated from licenses, permits, other fees, fines, forfeitures, and charges paid by the recipients of goods and services offered by the City programs. Operating/Capital Grants and Contributions Grants and contributions received from other governments, organizations and individuals that are restricted in some manner. General Revenues Revenues that are not classified as program revenues, such as property taxes and other taxes. Glossary of Accounting Terms 1 City Council Ardy Kassakhian Councilmember Ara Najarian Councilmember Vrej Agajanian Councilmember Daniel Brotman Councilmember Paula Devine Mayor ORGANIZATIONAL STRUCTURE Roubik Golanian City Manager John Takhtalian Deputy City Manager Aram Adjemian City Clerk Elena Bolbolian Director of Innovation, Performance & Audit Jason Bradford Chief Information Officer Onnig Bulanikian Director of Community Services & Parks Matthew Doyle Director of Human Resources Yazdan Emrani Director of Public Works Michele Flynn, CPA Director of Finance Michael J. Garcia City Attorney Philip Lanzafame Director of Community Development Silvio Lanzas Fire Chief Executive Management Team (As of June 30, 2021) Glendale is a full-service Charter City governed by a Council-Manager form of government. Five Councilmembers are elected at-large and serve 4-year staggered terms. The mayor is elected by the City Council for a one-year term and is the presiding officer of the Council. Elections were last held in March 2020 and will take place in June every other year during even numbered years, starting in 2022. A variety of Boards, Commissions, and Committees assist the City Council in serving the Glendale community. These bodies identify specific needs and problems within their purview. Each body meets on a regular basis and each meeting is open to the public. The length of member terms and the interval of appointments vary. City of GlendaleForm of Government Rafi Manoukian, CPA City Treasurer Carl Povilaitis Police Chief Gary Shaffer Director of Library, Arts & Culture Mark Young General Manager of Glendale Water & Power The City Manager, who is appointed by the City Council, acts as the chief executive officer responsible for the daily operations of the City. The City Manager appoints all non-elected department heads who are responsible for the daily operations within their individual departments. The City provides the full range of municipal services. This includes public safety (police, fire and paramedic), streets, sanitation, refuse collection, sewer, hazardous disposal, electric and water utilities, parking, parks and recreation, library, public improvements, planning and zoning, housing and community development, and general administrative and support services. 2 INTRODUCTION & CITY BY THE NUMBERS As part of our continuous effort to keep you informed about how your tax dollars are being spent, we are pleased to present the 2021 Popular Annual Financial Report (PAFR). The PAFR is a summary of the financial activities of the City, and most of the information is drawn from the City’s 2021 Comprehensive Annual Financial Report. Both reports are available for public viewing at the Finance department and online at http://www.glendaleca.gov/government/departments/finance/accounting. It is important to note that the financial data in this report is unaudited and presented on a GAAP (Generally Accepted Accounting Principles) basis with selected funds. The information included in this report contains an overview of the City’s economic outlook, an analysis of the City’s financial position, and key financial information. In addition, the report highlights the City’s investments, capital assets and debts. Moreover, it provides in-depth analysis of the General Fund and how the monies are received and spent. We hope you enjoy reading this report and invite you to access our audited Comprehensive Annual Financial Report referenced above for more detailed information. Questions concerning either Comprehensive Annual Financial Report or PAFR can be addressed to Director of Finance and Information Technology, 141 North Glendale Avenue, Suite 346, Glendale, CA 91206. Property Tax Rate 1.0836%Net Position $1.7 billion Unemployment Rate 10.2%Population 203,834 Current Ratio 7.8 times Median Age 41.9 Debt Ratio 42.2%School Enrollment 40,137 Total Assets $2.7 billion Percent High School Graduate or Higher 87.2% Deferred Outflows of Resources $95.3 million Per Capita Personal Income $36,205 Total Liabilities $1.2 billion Total Personal Income $7.4 billion Deferred Inflows of Resources $5.1 million Adopted Annual Budget FY 2020-21 $906.8 million City Website www.glendaleca.gov City Address 613 E Broadway Glendale, CA 91206 CITY BY THE NUMBERS 3 ECONOMIC OUTLOOK & FINANCIAL HIGHLIGHTS The Local Government Finance The past year and a half has been one of the most challenging periods of time in recent history for many cities in our nation, including Glendale. The persistence of the COVID-19 pandemic has continued to impact the forecast of the City’s financial standing. Fortunately, several factors have allowed the City to be able to weather the storm, such as the implementation of a hiring freeze, departmental budget reductions, the continued strength of revenues not impacted by the pandemic, and the passage of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) based on the American Rescue Plan Act (ARPA). Employment In December 2019, the Glendale unemployment rate measured 3.9%. Due to economic impact of the COVID-19 pandemic that started in March 2020, Glendale’s unemployment peaked in May 2020, recording a 21.7% unemployment rate. The unemployment rate has declined since the peak and recorded 10.2% in August 2021. As of August 2021, the Glendale labor force includes 102,600 residents (16 years of age or over), a decline of 2.8% from December 2019. It is important to note that the decline in labor force, reflecting the number of residents who have left the labor force, also impacts the slow recovery resulting from the COVID-19 pandemic. Top seven Glendale industries Employment 1.Healthcare 20,627 2.Professional Services 14,383 3.Retail 14,372 4.Public Administration / Educational Service 11,232 5.Eating & Dining 8,804 6.Information 7,905 7.Finance 7,655 Housing Based on the “2020 Annual Report” issued by the Los Angeles Office of the Assessor, Glendale experienced a net taxable property value increase of 4.7%. According to the City’s property tax consultant, HdL, Glendale’s single-family housing market increased in sales volume and in average home price, from $1,002,551 in FY 2019-20 to $1,208,552 in FY 2020-21. The condominium sales also showed an increase in sales volume and in average price, rising from $559,551 in FY 2019-20 to $600,268 for FY 2020-21. FINANCIAL HIGHLIGHTS (In Thousands) The City’s net position or net worth as of June 2021 is $1,668,404. The largest portion of the City’s net position is net investment in capital assets in the amount of $1,345,030. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s net investment in its capital assets is reported as 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. 2021 2020 2019 Current and other assets $ 1,145,775 1,091,088 1,054,641 Capital assets 1,584,899 1,599,447 1,582,381 Deferred outflows of resources 95,283 85,992 107,026 Total assets and deferred outflows of resources 2,825,957 2,776,527 2,744,048 Current liabilities 114,655 97,379 108,012 Noncurrent liabilities 1,037,756 991,897 960,782 Deferred inflows of resources 5,142 17,696 21,028 Total liabilities and deferred inflows of resources 1,157,553 1,106,972 1,089,822 Net investment in capital assets 1,345,030 1,355,534 1,319,231 Restricted 297,769 264,089 181,423 Unrestricted 25,605 49,932 153,572 Total net position $ 1,668,404 1,669,555 1,654,226 Statement of Net Position As of June 30, 4 FINANCIAL HIGHLIGHTS (CONTINUED) GENERAL FUND AVAILABLE RESOURCES (In Thousands) (In Thousands) The statement of activities presents information showing how the government’s net position changed during the recent fiscal year. As of FY 2020-21, the City’s total net position decreased by $1,151, primarily due to decrease in the fair market value of investments (GASB 31) and the allocation of the net loss from the internal service funds. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the General Fund revenues exceeded its expenditures by $15,480. *A prior period adjustment of $3,199 was made to increase the beginning net position of the Electric Fund and business-type activities in FY 2019-20. *A prior period adjustment of $10,844 was made to increase the beginning fund balance of the General Fund in FY 2019-20. 2021 2020 2019 Revenues: Charges for services $ 394,529 391,185 391,053 Operating and capital grant and contributions 112,746 101,373 76,246 Taxes 184,704 171,850 170,233 Investment income and other 25,856 38,416 54,275 Reinstatement of loans - - 323 Special item - - 10,667 Total Revenues 717,835 702,824 702,797 Expenses: Governmental 383,940 376,415 344,368 Business-type 335,046 314,279 299,282 Total Expenses 718,986 690,694 643,650 Changes in net position (1,151) 12,130 59,147 Net position, July 1* 1,669,555 1,657,425 1,595,079 Total net position, June 30 $ 1,668,404 1,669,555 1,654,226 General Fund FY2021 FY2020 FY2019 Nonspendable $ 2,071 8,451 293 Restricted: City Charter - Article XI Sec. 15 gen. reserve (A) 35,869 32,584 30,769 Pension Stabilization 39,805 35,145 29,426 Assigned Fund Balance 20,162 6,988 7,252 Unassigned Fund Balance (B) 50,066 49,325 57,534 Total Fund Balance* 147,973 132,493 125,274 Sum of Charter and Unassigned Fund Balance (A + B) 85,935 81,909 88,303 Original Adopted Budget (C) $ 250,480 243,316 227,784 Reserve Ratio ((A + B) ÷ C) 34.3% 33.7% 38.8% 2021 2020 2019 Revenues: Charges for services $ 394,529 391,185 391,053 Operating and capital grant and contributions 112,746 101,373 76,246 Taxes 184,704 171,850 170,233 Investment income and other 25,856 38,416 54,275 Reinstatement of loans - - 323 Special item - - 10,667 Total Revenues 717,835 702,824 702,797 Expenses: Governmental 383,940 376,415 344,368 Business-type 335,046 314,279 299,282 Total Expenses 718,986 690,694 643,650 Changes in net position (1,151) 12,130 59,147 Net position, July 1* 1,669,555 1,657,425 1,595,079 Total net position, June 30 $ 1,668,404 1,669,555 1,654,226 General Fund FY2021 FY2020 FY2019 Nonspendable $ 2,071 8,451 293 Restricted: City Charter - Article XI Sec. 15 gen. reserve (A) 35,869 32,584 30,769 Pension Stabilization 39,805 35,145 29,426 Assigned Fund Balance 20,162 6,988 7,252 Unassigned Fund Balance (B) 50,066 49,325 57,534 Total Fund Balance* 147,973 132,493 125,274 Sum of Charter and Unassigned Fund Balance (A + B) 85,935 81,909 88,303 Original Adopted Budget (C) $ 250,480 243,316 227,784 Reserve Ratio ((A + B) ÷ C) 34.3% 33.7% 38.8% Statement ActivitiesFor the Year Ended June 30 General Fund Reserve Ratio 5 GENERAL FUND REVENUES (In Thousands) 1% Property Tax Breakdown Property tax is the General Fund’s largest revenue source. Personal property in California is subject to a basic levy equal to 1% of assessed value. The California Constitution, after passage of Proposition 13 in 1978, fixed valuations of real property at 1975 levels, with a maximum adjustment of 2% per year based on inflation. When a change of ownership or new construction occurs, the property is re-assessed to its current value. Subsequent legislation allowed for tax levies above the 1% Proposition 13 tax rate, but only if the levy was approved by a two-thirds vote. 0.36 Los Angeles County 0.20 School District 0.16 Educational Augmentation Fund Impound 0.14 Tax District #1 (City Share) 0.07 Educational Revenue Augmentation Fund 0.04 Community College District 0.03 Other Compared to prior fiscal year, the City’s General Fund Revenues increased $20,657 during the current fiscal year, primarily due to increases in property taxes and sales tax. Growth in home values and strong real estate market attributed to the increase in property taxes, while continued shift to online purchases as well as some financial recovery in major industries attributed to the increase in sales tax. Revenue by Source FY2020FY2021 FY2019 6 GENERAL FUND REVENUES (CONTINUED) Glendale Sales Tax is 10.25% Effective 04/01/2019 0.25% - Homeless Services (Measure H)0.25% - County-wide Transportation0.50% - County Health/Welfare 0.50% - Public Safety Augmentation Fund (Prop 172) 0.75% - Glendale Essential City Services Transactions & Use Tax (Measure S) 1.00% - Glendale Allocation (Bradley-Burns) 2.00% - L.A. County Transportation (includes Prop A, Prop C, Measure R, and Measure M Funds) 1.06% - County Corrections 3.94% - State General Fund The California Department of Tax and Fee Administration administers local taxes under the Bradley-Burns Uniform Local Sales and Use Tax Law and district taxes under the Transactions and Use Tax Law. Further information may be obtained at http://californiacityfinance.com and http://www.cdtfa.ca.gov. Utility Users Tax Breakdown Sales Tax Breakdown 1 In 2009 Glendale voters approved a rate reduction for Telecommunications and Video (reduced from 7% to 6.5%). Glendale Telecommunications 6.50% Video (Cable)1 6.50% Electricity 7.00% Water 7.00% Gas 7.00% 7 GENERAL FUND EXPENDITURES & MEASURE S (In Thousands) Expenditures by Function FY2021 FY2020 FY2019 General government $ 20,517 21,800 18,980 Police 91,507 87,920 86,265 Fire 59,829 59,419 58,665 Public works 13,903 14,629 14,481 Housing, health and community development 18,874 16,068 16,874 Parks, recreation and community services 15,220 16,132 12,157 Library 10,546 10,582 10,587 Capital 192 376 808 Transfers to other funds 1,585 3,695 9,619 Total Expenditures $ 232,173 230,621 228,436 Adopted Revised Actuals FY 2021 FY 2021* FY 2021 Revenues $ 22,170 24,075 27,440 Appropriations: Housing 12,695 24,503 2,578 Infrastructure 750 4,166 150 Recreation 1,832 1,872 540 Economic Recovery 3,400 3,136 1,896 Other Items - 200 74 Total Appropriations $ 18,677 33,877 5,238 Beginning Balance, 07/01/2020 $ 14,249 FY 2020-21 Surplus 22,202 Ending Balance, 06/30/2021 36,451 Carryovers into FY 2021-22 (24,324) Adjusted Ending Balance 06/30/2021 $ 12,127 Expenditures by Function FY2021 FY2020 FY2019 General government $ 20,517 21,800 18,980 Police 91,507 87,920 86,265 Fire 59,829 59,419 58,665 Public works 13,903 14,629 14,481 Housing, health and community development 18,874 16,068 16,874 Parks, recreation and community services 15,220 16,132 12,157 Library 10,546 10,582 10,587 Capital 192 376 808 Transfers to other funds 1,585 3,695 9,619 Total Expenditures $ 232,173 230,621 228,436 Adopted Revised Actuals FY 2021 FY 2021* FY 2021 Revenues $ 22,170 24,075 27,440 Appropriations: Housing 12,695 24,503 2,578 Infrastructure 750 4,166 150 Recreation 1,832 1,872 540 Economic Recovery 3,400 3,136 1,896 Other Items - 200 74 Total Appropriations $ 18,677 33,877 5,238 Beginning Balance, 07/01/2020 $ 14,249 FY 2020-21 Surplus 22,202 Ending Balance, 06/30/2021 36,451 Carryovers into FY 2021-22 (24,324) Adjusted Ending Balance 06/30/2021 $ 12,127 Measure S Resources and Appropriations Measure S Balance On November 6, 2018, Glendale voters approved Glendale Quality of Life and Essential Services Protection Measure, or Measure S, which enacted general sales tax of 0.75%. Every dollar raised by Measure S is used in Glendale on affordable housing, infrastructure, and local essential services for Glendale residents. The Measure S balance as of July 1, 2020 was $14,249. With the FY 2020-21 revenues received in the amount of $27,440 and expenditures recorded in the amount of $5,238, there is a surplus of $22,202, bringing the ending balance to $36,451 as of June 30, 2021. Accounting for the $24,324 in carryovers into FY 2021-22, brings the total adjusted ending balance to $12,127. *The Revised FY 2020-21 amounts include carryovers from FY 2019-20. Expenditures by Function FY2021 FY2020 FY2019 General government $ 20,517 21,800 18,980 Police 91,507 87,920 86,265 Fire 59,829 59,419 58,665 Public works 13,903 14,629 14,481 Housing, health and community development 18,874 16,068 16,874 Parks, recreation and community services 15,220 16,132 12,157 Library 10,546 10,582 10,587 Capital 192 376 808 Transfers to other funds 1,585 3,695 9,619 Total Expenditures $ 232,173 230,621 228,436 Adopted Revised Actuals FY 2021 FY 2021* FY 2021 Revenues $ 22,170 24,075 27,440 Appropriations: Housing 12,695 24,503 2,578 Infrastructure 750 4,166 150 Recreation 1,832 1,872 540 Economic Recovery 3,400 3,136 1,896 Other Items - 200 74 Total Appropriations $ 18,677 33,877 5,238 Beginning Balance, 07/01/2020 $ 14,249 FY 2020-21 Surplus 22,202 Ending Balance, 06/30/2021 36,451 Carryovers into FY 2021-22 (24,324) Adjusted Ending Balance 06/30/2021 $ 12,127 General Fund Expenditures (In Thousands) Overall, General Fund expenditures increased by $1,552 in FY 2021 compared to the prior year mainly driven by increases in workers’ compensation rates and the required PERS employer contribution. 8 ENTERPRISE FUNDS (In Thousands) FY2019 Operating revenues $ 345,174 328,015 321,016 Operating expenses 317,170 302,549 295,338 Operating income (loss) 28,004 25,466 25,678 Nonoperating revenues (expenses) (7,046) 8,343 6,967 Income before capital grants and contributions and transfers 20,958 33,809 32,645 Capital grants and contributions - - 8 Transfer In - 1,000 - Transfer out (18,653) (20,503) (20,172) Change in net position 2,305 14,306 12,481 Net position, July 1* 727,671* 716,503* 700,823 Net position, June 30 $ 729,976 730,809 713,304 Current and other assets $ 490,466 475,736 449,746 Capital assets 589,076 603,674 619,941 Deferred outflows of resources 20,495 17,227 22,788 Total assets and deferred outflows of resources 1,100,037 1,096,637 1,092,475 Current liabilities 38,872 34,393 44,607 Noncurrent liabilities 329,826 328,978 331,704 Deferred inflows of resources 1,363 2,457 2,860 Total liabilities and deferred outflows of resources 370,061 365,828 379,171 Net investment in capital assets 378,683 387,699 387,043 Restricted 24,031 14,375 5,669 Unrestricted 327,262 328,735 320,592 Total net position $ 729,976 730,809 713,304 Operating revenues $ 345,174 328,015 321,016 Operating expenses 317,170 302,549 295,338 Operating income (loss) 28,004 25,466 25,678 Nonoperating revenues (expenses) (7,046) 8,343 6,967 Income before capital grants and contributions and transfers 20,958 33,809 32,645 Capital grants and contributions - - 8 Transfer In - 1,000 - Transfer out (18,653) (20,503) (20,172) Change in net position 2,305 14,306 12,481 Net position, July 1* 727,671* 716,503* 700,823 Net position, June 30 $ 729,976 730,809 713,304 Current and other assets $ 490,466 475,736 449,746 Capital assets 589,076 603,674 619,941 Deferred outflows of resources 20,495 17,227 22,788 Total assets and deferred outflows of resources 1,100,037 1,096,637 1,092,475 Current liabilities 38,872 34,393 44,607 Noncurrent liabilities 329,826 328,978 331,704 Deferred inflows of resources 1,363 2,457 2,860 Total liabilities and deferred outflows of resources 370,061 365,828 379,171 Net investment in capital assets 378,683 387,699 387,043 Restricted 24,031 14,375 5,669 Unrestricted 327,262 328,735 320,592 Total net position $ 729,976 730,809 713,304 Statement of Revenues, Expenses and Changes in Net Position Statement of Net Position FY2021 FY2021 FY2020 FY2020 FY2019 FY2019 Enterprise funds are used to account for a government’s ongoing programs and activities which are similar to those often found in the private sector. The City uses enterprise funds to account for its refuse disposal, fire communications, fiber optics, sewer, electric and water operations. At the end of the year, net position was composed of $220,065 for the Sewer Fund, $343,451 for the Electric Fund, $129,221 for the Water Fund, and $37,239 for the nonmajor enterprise funds. Operating revenues increased during the current fiscal year mainly due to increase in water and electric retail sales. Conversely, the City experienced a net of nonoperating expenses during the current fiscal year as a result of decrease in the fair market value of investments (GASB 31). *A prior period adjustment of $3,199 was made to increase the beginning net position of the Electric Fund and business-type activities in FY 2019-20. *A prior period adjustment of $3,138 was made to decrease the beginning net position of the business-type activities (Electric Fund $2,398 and Water Fund $740) in FY 2020-21. 9 CAPITAL ASSET & CASH & DEBT (In Thousands) The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounts to $1,584,899 (net of $1,022,705 accumulated depreciation, $13,770 accumulated gas depletion and $60,576 accumulated amortization). This investment in capital assets includes land, natural gas reserve, buildings and improvements, machinery and equipment, infrastructure, intangible assets, and construction in progress. Major capital asset events during the current fiscal year includes the following: • The following capital improvement projects contributing to the capital assets increased in government wide: $1,657 for Beeline Maintenance and Operation Facility, $1,453 for Colorado Street and Columbus Avenue Rehabilitation, $1,821 for Glendale Train Station 1st/Last Mile Regional Improvement, and $2,122 for Verdugo Road Safety and Traffic Signal Improvement. • The following projects contributed to the increase in the intangible assets in the Sewer Fund: $1,535 for Los Angeles-Glendale Water Reclamation Plant and $2,450 for Hyperion Wastewater System. The City is upgrading the Los Angeles – Glendale Water Reclamation Plant and Hyperion Wastewater Treatment Plant and Conveyance System Facilities to meet federal and state mandates. FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 Land $ 447,259 447,259 9,557 9,557 456,816 456,816 Natural gas reserve - - 22,166 22,163 22,166 22,163 Buildings and improvements 458,769 423,943 317,943 309,751 776,712 733,694 Machinery and equipment 148,419 138,471 593,524 584,113 741,943 722,584 Infrastructure 358,326 344,782 173,740 162,341 532,066 507,123 Construction in progress 16,725 48,031 13,007 32,244 29,732 80,275 Intangible assets 7,304 7,122 115,211 112,761 122,515 119,883 Total capital assets 1,436,802 1,409,608 1,245,148 1,232,930 2,681,950 2,642,538 Less: Accumulated depreciation (438,779) (412,502) (583,926) (561,054) (1,022,705) (973,556) Less: Accumulated gas depletion - - (13,770) (12,978) (13,770) (12,978) Less: Accumulated amortization (2,200) (1,333) (58,376) (55,224) (60,576) (56,557) Net of depreciation, depletion, and amortization $ 995,823 995,773 589,076 603,674 1,584,899 1,599,447 Remaining Maturity Total 12 Months or Less 13 to 24 Months 25 to 60 Months More than 60 Months $ 840,089 443,545 151,004 243,142 2,398 100% 52.8% 18.0% 28.9% 0.3% FY2021 FY2020 HUD Section 108 loan $ - 474 Revenue Bonds 245,018 256,803 Total long-term debt and liabilities $ 245,018 257,277 Governmental Activities Business-typeActivities Total FY2021 FY2020 FY2021 FY2020 FY2021 FY2020 Land $ 447,259 447,259 9,557 9,557 456,816 456,816 Natural gas reserve - - 22,166 22,163 22,166 22,163 Buildings and improvements 458,769 423,943 317,943 309,751 776,712 733,694 Machinery and equipment 148,419 138,471 593,524 584,113 741,943 722,584 Infrastructure 358,326 344,782 173,740 162,341 532,066 507,123 Construction in progress 16,725 48,031 13,007 32,244 29,732 80,275 Intangible assets 7,304 7,122 115,211 112,761 122,515 119,883 Total capital assets 1,436,802 1,409,608 1,245,148 1,232,930 2,681,950 2,642,538 Less: Accumulated depreciation (438,779) (412,502) (583,926) (561,054) (1,022,705) (973,556) Less: Accumulated gas depletion - - (13,770) (12,978) (13,770) (12,978) Less: Accumulated amortization (2,200) (1,333) (58,376) (55,224) (60,576) (56,557) Net of depreciation, depletion, and amortization $ 995,823 995,773 589,076 603,674 1,584,899 1,599,447 Remaining Maturity Total 12 Months or Less 13 to 24 Months 25 to 60 Months More than 60 Months $ 840,089 443,545 151,004 243,142 2,398 100% 52.8% 18.0% 28.9% 0.3% FY2021 FY2020 HUD Section 108 loan $ - 474 Revenue Bonds 245,018 256,803 Total long-term debt and liabilities $ 245,018 257,277 FY2021 FY2020 HUD Section 108 loan $ - 474 Revenue Bonds 245,018 256,803 Total long-term debt and liabilities $ 245,018 257,277 City’s Investments (as of June 30, 2021) Long-Term Debt CASH MANAGEMENT (In Thousands) To obtain flexibility in cash management, the City employs a pooled cash system. Under the City’s pooling concept, all available cash is invested daily in various securities, while still maintaining reasonable liquidity to meet maturing obligations and maximizing return through the use of competitive rate comparisons from various investment sources. LONG-TERM DEBT (In Thousands) At June 30, 2021, the City’s total outstanding long-term debt is $245,018 a decrease of $12,259 or 4.8%. The decrease was mainly due to regular annual debt retirements. GLENDALECITYHALLGLENDALECITYHALL THEJEWELCITY INCORPORATED1906 Popular Annual Financial Report www.Glendaleca.gov @MyGlendale | #MyGlendale OUTSTANDING ACHIEVEMENT AWARD The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to the City of Glendale for its Popular Annual Financial Report for the fiscal year ended June 30, 2020. The Award for Outstanding Achievement in Popular Annual Financial Reporting is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government popular reports. In order to receive an Award for Outstanding Achievement in Popular Annual Financial Reporting, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability and reader appeal. An Award for Outstanding Achievement in Popular Annual Financial Reporting is valid for a period of one year only. City of Glendale has received a Popular Award for the last ten consecutive years. We believe our current report continues to conform to the Popular Annual Financial Reporting requirements, as we prepare for its submission to GFOA. Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to City of Glendale California For its Annual Financial Report for the Fiscal Year Ended June 30, 2020 Executive Director/CEO