HomeMy WebLinkAboutCity of Peoria - Public Financial ReportCity of Peoria, Arizona
FY21 POPULAR
ANNUAL FINANCIAL
REPORT (PAFR)
Fiscal Year Ended June 30, 2021
INTRODUCTION
TABLE OF CONTENTS
1- INTRODUCTION
2– CITY OF PEORIA COUNCIL
DISTRICTS
3– LIVABILITY INITIATIVES
5– OUR COMMUNITY: FAST FACTS AND
ACCREDITATIONS
6- FINANCIAL HIGHLIGHTS
7- WHERE THE MONEY COMES FROM:
GOVERNMENTAL REVENUES
8- WHERE THE MONEY GOES:
GOVERNMENTAL EXPENSES
9- WHERE THE MONEY COMES FROM:
BUSINESS-TYPE REVENUES
10- WHERE THE MONEY GOES: BUSINESS-
TYPE EXPENSES
11- WHAT WE HAVE: CAPITAL ASSETS
12- WHAT WE OWE: DEBT
13- WHAT WE OWE: RETIREMENT PLANS
To obtain a copy of the ACFR, visit
www.peoriaaz.gov. Type “ACFR” in the
search bar and select “Financial Reports
and Other Information”.
WHAT IS THE
POPULAR ANNUAL
FINANCIAL
REPORT (PAFR)?
The City’s PAFR is an easy
to understand summary of
its Annual Comprehensive
Financial Report (ACFR), a
detailed report showing its
financial condition. The
PAFR is a tool designed to
inform the residents of
Peoria about how the city
is doing financially. It is not
intended to be a substitute
for the ACFR. To obtain a
copy of the ACFR, visit
www.peoriaaz.gov. Both
the ACFR and the PAFR are
presented in accordance
with Generally Accepted
Accounting Principles, the
standard framework for
financial accounting.
$141,204
$37,543
$32,859
$89,267
$7,871
$6,369
$12,070
$167,129
$35,474
$25,440
$83,718
$4,980
$5,548
$778
$- $100,000 $200,000
Revenues
General Government
Expenditures
Culture and Recreation
Expenditures
Public Safety Expenditures
Development Services
Expenditures
Public Works Expenditures
Capital Outlay Expenditures
General Fund - Budget to Actual
Comparison
for the year ended June 30, 2021
(in thousands of dollars)
2021 Actual 2021 Budget
Page 1
CITY OF PEORIA GOVERNMENT
Peoria, chartered in 1954, has a
Council-Manager form of government
with the City Council consisting of the
Mayor and six Council Members.
Pursuant to an amendment to the City
Charter approved by the voters in
1997, the Mayor is elected at-large for
a four-year term. Council members
are elected, by district, for four-year
terms. The City Council is vested with
policy and legislative authority and is
responsible for passing ordinances;
adopting the budget; appointing
committee, commission, and board
members; and appointing the
positions of City Manager, City
Attorney, and Judge. 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.
Page 2
LIVABILITY INITIATIVES
Given the competing priorities for available resources, careful consideration is given to all projects and initiatives to ensure
investments of public funds achieve Council objectives and provide a long-term sustainable benefit to the community. The
Council has seven livability initiatives that drive this decision making process seeking to improve the community’s quality of life.
Page 3
LIVABILITY INITIATIVES
Page 4
LIVABILITY INITIATIVES
Page 5
OUR COMMUNITY
SQUARE MILES 179
24.0%GROWTH POPULATION 190,985
TOTAL PROPERTY FULL CASH
VALUE INCREASED BY
27.6%INCREASE
UNEMPLOYMENT DECREASED
2021 Unemployment rate of 6.6%
decreased from the prior year rate of 9.3%
1,437 NEW RESIDENTIAL
BUILDING PERMITS ISSUED
SINCE 2010
SINCE 2010
PER CAPITA PERSONAL
INCOME $48,065
20.7%OVER PRIOR YEAR
ACCREDITATIONS
In October 2020, the National Commission for the
Accreditation of Parks and Recreation Agencies reaccredited
Peoria as one of 186 agencies in the U.S. to have this national
designation.
In March 2021, the American Public Works Association
bestowed its reaccreditation upon Peoria’s Public Works and
Water Services Departments. This is Peoria’s third time
receiving the accreditation.
In May 2021, Peoria Fire celebrated its 100 year anniversary
by receiving reaccreditation from the Commission on Fire
Accreditation International.
Page 6
FINANCIAL HIGHLIGHTS
THE STATEMENT OF NET POSITION
The Statement of Net Position presents information on the City’s assets
and liabilities, with the difference between the two reported as net
position. Over time, increases or decreases in net position may serve as
a useful indicator as to whether the City’s financial position is
improving or weakening. The following table reflects the condensed
Statement of Net Position of the City for June 30, 2021, compared to
the prior year in millions of dollars
. Primary Government Increase/
2021 2020 (Decrease)Percentage
Current and other
assets 493.5 458.9 34.6 8%
Capital assets 1,665.8 1,615.3 50.5 3%
Total assets 2,159.3 2,074.2 85.1 4%
Total deferred outflows
of resources 60.7 46.1 14.6 32%
Other liabilities 46.8 54.8 (8.0) -15%
Long-term liabilities
outstanding 527.7 505.8 21.9 4%
Total liabilities 574.5 560.6 13.9 2%
Total deferred inflows
of resources 4.9 11.3 (6.4) -57%
Net position:
Net investment in
capital assets 1,368.5 1,310.4 58.1 4%
Restricted 155.5 125.8 29.7 24%
Unrestricted 116.6 112.2 4.4 4%
Total net position 1,640.6 1,548.4 92.2 6%
THE STATEMENT OF ACTIVITIES
The Statement of Activities provides an illustration of the
revenue received and spent by the City during the year.
Below is a summarized version of the Statement of
Activities in millions of dollars.
2021 2020 2019
Revenues 428.1 375.7 365.5
Expenses (335.9) (332.0) (308.9)
Changes in Net
position 92.2 43.7 56.6
Page 7
WHERE THE MONEY COMES FROM
GOVERNMENTAL ACTIVITIES REVENUES
In order for the City of Peoria to provide the many services it does for citizens, it needs to generate revenue. Governmental
activities revenues are used to fund the basic functions of the City such as police, fire, courts, streets, parks, libraries and
community centers.
City Sales Tax
$40
Property Tax
$10
State Shared
Revenues $22
Charges for
Services $11
Other Revenues
$17
Taxes are the primary source of governmental activities revenues and include:
City Sales Tax: Sales tax not only
includes retail sales tax, but also
hotel/motel taxes, commercial
rental, and construction contracting
among others. Retail sales make up
the majority of city sales tax
revenues.
State Shared Revenues: The State of
Arizona shares certain revenues with
cities, such as income tax, state sales
tax, vehicle license tax, and highway
user revenues (including gas tax), as
required by various state statutes.
Property Taxes: Arizona’s property tax system provides for
two separate tax systems. 1) Primary taxes are used to fund
general government operations including police, fire, and
recreation services. 2) Secondary taxes go toward interest
and principal payments on voter approved general
obligation bonds issued by the city for capital
improvements, such as streets, parks and public buildings.
CITY SALES TAX - LARGEST SOURCE
OF GOVERNMENTAL ACTIVITIES
REVENUE
City sales taxes makes up $40 of every $100 of
governmental activities revenues.
Sales tax is dependent on a strong economy
therefore the City must maintain a healthy fund
balance so the City can continue to operate
during a recession or economic downturn.
Page 8
WHERE THE MONEY GOES
GOVERNMENTAL ACTIVITIES EXPENSES
Each year, the City adopts its annual operating budget, which allocates limited dollars to the highest priorities as determined by
the City Council. Governmental funds are financed primarily by sales and property tax revenues, and support core services such
as public safety. The City provides many services to our citizens with the majority of our Governmental Funds being dedicated to
Public Safety and Highways and Streets.
$43
$23
$14 $11 $9
$-
$10.00
$20.00
$30.00
$40.00
$50.00
Public Safety Highways and Streets Culture and
Recreation
General Government Other
Governmental Activities Expenses
Per $100 Spent
Providing superior police, fire and
medical services is a priority of the
City Council and is reflected in the
allocation of resources. PUBLIC
SAFETY is the largest use of
governmental activities resources
accounting for $43 of every $100
spent.
Page 9
WHERE THE MONEY COMES FROM
BUSINESS-TYPE ACTIVITIES REVENUES
Business-type activities are different from
governmental activities as they perform much like
a normal business enterprise. While the stadium
fund receives a subsidy from the half-cent sales
tax, the Water, Wastewater, Solid Waste, and
Storm Drainage Utilities are self-supporting
enterprises.
Water Utility,
$54,100 , 55%
Wastewater Utility,
$24,100 , 25%
Solid Waste,
$14,700 , 15%
Stadium, $3,600 , 4%Storm Drain,
$1,400 , 1%
(In thousands of dollars)
Business-type funds collect service fees to
fund their operating, capital, and debt
expenses. In general, these revenues can
only be used to support the expenditures of
the fund in which it was earned. In addition
to service fees, the Water, Wastewater and
Storm Drain utilities receive capital grants
and contributions.
Water Utility
Revenues make up 55%of total business-
type activities revenues.
Page 10
WHERE THE MONEY GOES
BUSINESS-TYPE ACTIVITIES EXPENSES
Business-type activities expenses totaled $103 million in fiscal year 2021. This included not only the operating costs such
as labor, electricity, fuel and chemicals, but also the expenses to provide the capital assets such as vehicles and infrastructure
needed to provide service to the customers. Water Utility expenses accounted for $48 million of the total.
10.7 billion gallons of
water were delivered to
the City’s 63 thousand
customer accounts
Peoria wastewater
treatment plants treated
4.3 billion gallons of
sewage.
Solid Waste processed 67
thousand tons of residential
and 18 thousand tons of
commercial trash along with 18
thousand tons of recycling
Page 11
$47,883
29,013
15,039 6,866 3,919
$- $10,000 $20,000 $30,000 $40,000 $50,000
$60,000
Business-Type Activity Expenses
For the year ended June 30, 2021
(in thousands of dollars)
WHAT WE HAVE
As of June 30, 2021, the City owned $1.7 billion in capital assets, net of accumulated depreciation and related debt.
Governmental activities held $939 million in capital assets with land (such as parks and open spaces) and infrastructure (such as
the street system) making up the largest part of the assets. Business-type activities held $727 million in capital assets with
infrastructure (such as pipes for the water and wastewater systems) being the largest category.
Land;
$419,440 ;
45%
Work in Progress;
$28,750 ; 3%
Bulidings &
Improvements;
$105,262 ; 11%
Equipment and
Furniture;
$4,768 ; 1%Vehicles;
$13,432 ; 1%
Infrastructure;
$366,895 ; 39%
Land; $18,825 ;
3%
Work in
Progress;
$65,404 ; 9%
Bulidings &
Improvements;
$48,033 ; 7%
Equipment and
Furniture;
$3,432 ; 0%
Vehicles;
$13,940 ; 2%
Infrastructure;
$577,615 ; 79%
GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES
(dollars are in thousands)
2021 CAPITAL ASSET HIGHLIGHTS
Completed widening of Happy Valley
Parkway at a total cost of $23.3 million
$11.5 million into new construction
and improvements to parks around the
City, including $6.3 million at Paloma
Community Park
$22.4 million for
expansion of the Pyramid
Peak water treatment plant
Page 12
WHAT WE OWE
BONDS AND LOANS
The City utilizes general obligation bonds, revenue bonds, loans from direct borrowing, and community facilities district bonds.
Of the total outstanding bonds and loans of $272.2 million, $124.1 million is general obligation bonds backed by the full faith
and credit of the City. The outstanding debt also includes $27.6 million in Community Facilities District bonds where the City has
no obligation for payment. All other outstanding debt is secured by pledges of specific revenue sources of the City. This excludes
premium, net pension liability, and claims payable.
$132
$30 $31 $27
$63
$8
-
20
40
60
80
100
120
140
General
obligation
bonds
MDA bonds CFD bonds Direct
Purchase and
Loan
Obligations
WIFA loans Revenue
bonds
Mi
l
l
i
o
n
s
OUTSTANDING BONDS AND LOANS
June 30, 2021
The City’s Debt Ratings
General obligation debt ratings :
Aaa Moody’s; AAA Fitch ; AA+ Standard & Poor’s
Water and sewer revenue bond ratings:
Aa2 Moody’s; AA Fitch; AA Standard & Poor’s
Excise Tax revenue bond ratings:
Aa1 Moody’s; AA+ Fitch; AAA Standard & Poor’s
These highly favorable investment ratings allow
the city to pay less interest on its bond issuances.
General Obligation Bonds
Make up largest portion of outstanding debt
Require voter approval
Fund the capital projects of general government such as fire, police,
parks and recreation, and streets.
Page 13
WHAT WE OWE
RETIREMENT PLANS
The City contributes to the Arizona State Retirement System
(ASRS), the Public Safety Personnel Retirement System (PSRS)
and the Elected Officials Retirement Plan (EORP). The plans
provide retirement, long-term disability, and health insurance
premium benefits as established by state statute. Each is a
multi-employer plan administered independently of the City.
The City of Peoria and its employees contribute to the plans in
accordance with plan requirements.
69%
51%
62%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ASRS PSPRS - Police PSPRS - Fire
Funding Ratio by Plan
As of June 30, 2020
(most recent measurement date)
Funded Unfunded
A key measure of a retirement plan’s health is its funding
ratio, derived by comparing assets to liabilities. A pension
plan whose assets equal its liabilities is 100 percent funded.
A plan with assets that are less than its liabilities is
considered to be underfunded, or in a deficit position.
However, the financial health of a pension plan depends on
many factors in addition to funded status.
Page 14
ASRS
PSPRS - Police
PSPRS - Fire
$-
$50,000
$100,000
$150,000
$200,000
$250,000
Net Pension and Other Postemployment
Benefits Liability as of June 30, 2021
(in thousands)
City of Peoria
Finance and Budget
Department
8401 West Monroe Street
Peoria, Arizona 85345
www.peoriaaz.gov