ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
G LENDALE CITY HALL
G LENDALE CITY HALL
THE JEW EL CITY
INCORPORA TED
1906
CITY OF GLENDALE, CALIFORNIA
Fiscal Y ear Ended June 30, 2023
Public Safety is an unwavering priority for the City of Glendale. It plays an essential role in cultivating a secure community. The welfare of Glendale’s residents, businesses, and visitors is one of our top focus areas. Glendale pours substantial resources into fortifying public safety, spanning law enforcement, fire services, emergency medical assistance, and rapid response units. This robust commitment not only neutralizes immediate threats but also establishes an atmosphere of security, compelling people to live, work, and engage in our city while enticing businesses to invest, thereby fueling economic growth and financial stability.
The Glendale Police and Fire Departments acquire top-tier equipment, implement rigorous training regimens, and engage in community outreach initiatives. The Glendale Fire Department, renowned for its fast response times, adeptly handles everything from blazing fires to medical emergencies.
Their fire teams boast an average response time of 5 minutes and 19 seconds, while the Emergency Medical Teams aren’t far behind with a response time of approximately 5 minutes. Meanwhile, the Glendale Police Department upholds and safeguards the city, thereby fostering unwavering trust and a sense of security within the community, with response rates averaging around 3 minutes and 18 seconds. In Glendale, public safety maintains a non-negotiable priority. Our first responders can be seen highlighted on the cover of the FY2022-23 Annual Comprehensive Financial Report, and we appreciate their commitment to serve our Jewel City.
ANNUAL COMPREHENSIVE FINANCIAL REPORT
Fiscal Y ear Ended June 30, 2023
Daniel Brotman
MAYOR
Ara Najarian
COUNCILMEMBER
Paula Devine
COUNCILMEMBER
Ardy Kassakhian
COUNCILMEMBER
Elen Asatryan
COUNCILMEMBER
CITY COUNCIL
CITY OF GLENDALE, CALIFORNIA
November 2023
Prepared by the Finance Department - Accounting Section Jason
Bradford,
CPA,
Director
of
Finance
and
Information
T echnology
City of Glendale, California
Table of Contents
Exhibit Page
INTRODUCTORY SECTION
(Not Covered by Independent Auditors’ Report)
Letter of Transmittal ...................................................................... i Officials of the City of Glendale ..................................................... xiii Organizational Chart of the City of Glendale ................................ xiv Certificate of Achievement for Excellence in Financial Reporting.. xv
FINANCIAL SECTION
Independent Auditors’ Report ....................................................... 1 Management’s Discussion and Analysis ....................................... 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Posi tion ................................................ Exhibit A-1 21 Statement of Activities ...................................................... Exhibit A-2 23
Fund Financial Statements:
Balance Sheet – Governmental Funds ............................ Exhibit B-1 27 Reconciliation of Balance Sheet to the Statement of
Net Position ................................................................. Exhibit B-2 29 Statement of Revenues, Expenditures, and Changes in
Fund Balances – Go vernmental Funds ..................... Exhibit C-1 31 Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances to
the Statement of Activiti es ......................................... Exhibit C-2 32 Statement of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual –
General Fund ............................................................. Exhibit D-1 33 Statement of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual –
Housing Assistance Fund ........................................... Exhibit D-2 34 Statement of Net Position – Proprietary Funds ............... Exhibit E-1 37 Statement of Revenues, Expenses, and Changes in
Net Position – Proprietary F unds .............................. Exhibit E-2 39 Statement of Cash Flows – Proprietary Funds ................ Exhibit E-3 40 Statement of Fiduciary Net Position – Fiduciary Funds ... Exhibit F-1 45 Statement of Changes in Fiduciary Net Position –
Fiduciary Funds .......................................................... Exhibit F-2 46
Notes to the Basic Financial Statements ................................. 47
Exhibit Page
Required Supplementary Information:
Schedule of Changes in Net Position Liability and Related ...........
Ratios – Miscellane ous Plan ................................................... 109 Schedule of Changes in Net Position Liability and Related ...........
Ratios – Safety Plan ................................................................ 111 Schedule of Pension Plan Contributions – Miscellaneous Plan .... 113 Schedule of Pension Plan Contributions – Safety Plan ................. 115 Schedule of Changes in Total OPEB Liability and Related ...........
Ratios ....................................................................................... 117
Combining and Individual Fund Statements:
Combining Governmental Balance Sheet –
Nonmajor Governmental Funds ............................................. Exhibit G-1 119 Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances –
Nonmajor Governmental Funds .............................................. Exhibit G-2 120 Combining Balance Sheet –
Nonmajor Special Revenue Funds ........................................ Exhibit H-1 123 Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances –
Nonmajor Special Revenue Funds ......................................... Exhibit H-2 133 Schedule of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual –
Nonmajor Special Revenue Funds ......................................... Exhibit H-3 143 Combining Balance Sheet –
Nonmajor Debt Service Funds ............................................... Exhibit I-1 181 Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances –
Nonmajor Debt Service Funds ................................................ Exhibit I-2 182 Schedule of Revenues, Expenditures, and Changes in
Fund Balances – Budget and Actual –
Nonmajor Debt Service Funds ................................................ Exhibit I-3 183 Combining Balance Sheet –
Nonmajor Capital Projects Funds ........................................... Exhibit J-1 187 Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances –
Nonmajor Capital Projects Funds ........................................... Exhibit J-2 190 Combining Statement of Net Position –
Nonmajor Enterprise Funds .................................................... Exhibit K-1 195 Combining Statement of Revenues, Expenditures, and
Changes in Net Position –
Nonmajor Enterprise Funds .................................................... Exhibit K-2 196 Statement of Cash Flows –
Nonmajor Enterprise Funds .................................................... Exhibit K-3 197 Combining Statement of Net Position –
Internal Service Funds ............................................................ Exhibit L-1 201 Combining Statement of Revenues, Expenditures and
Changes in Net Position –
Internal Service Funds ............................................................ Exhibit L-2 205 Statement of Cash Flows –
Internal Service Funds ............................................................ Exhibit L-3 209 Combining Statement of Fiduciary Net Position –
Custodial Funds ...................................................................... Exhibit M-1 215 Combining Statement of Changes in Fiduciary Net
Position – Custodial Funds .................................................... Exhibit M-2 216
Schedule Page
STATISTICAL SECTION
(Not Covered by Independent Auditors’ Report)
Net Position by Component .......................................................... Schedule 1 217 Changes in Net Position ................................................................ Schedule 2 218 Fund Balances of Governmental Funds ....................................... Schedule 3 224 Changes in Fund Balances of Governmental Funds .................... Schedule 4 226 Electric Revenue by Type of Customers ....................................... Schedule 5 228 Electric Rates ................................................................................ Schedule 6 230 Principal Electric Payer Groups .................................................... Schedule 7 231 Assessed Value and Actual Value of Taxable Property ............... Schedule 8 232 Direct and Overlapping Property Tax Rates ................................. Schedule 9 233 Principal Property Tax Payers ...................................................... Schedule 10 235 Property Tax Levies and Collections ............................................ Schedule 11 236 Ratios of Outstanding Debt by Type ............................................. Schedule 12 237 Direct and Overlapping Governmental Activities Debt .................. Schedule 13 239 Legal Debt Margin Information ...................................................... Schedule 14 240 Pledged-Revenue Coverage ......................................................... Schedule 15 241 Demographic and Economic Statistics ......................................... Schedule 16 243 Principal Employers ...................................................................... Schedule 17 244 Authorized Salaried Positions by Department .............................. Schedule 18 245 Operations Indicators by Function/Program ................................. Schedule 19 247 Capital Asset Statistics by Function/Program ............................... Schedule 20 251
INTRODUCTORY SECTION
The Introductory Section of the Annual Comprehensive Financial Report provides general information of the City of Glendale, California’s structure and its personnel, as well as information useful in assessing the City’s financial condition. This section includes:
• Letter of Transmittal
• City’s Organizational Chart and List of Principal Officials • Government Finance Officer Association Certificate of Achievement for Excellence in Financial Reporting
i
GLENDALE CITY HALL
GLENDALE CITY HALL
THE JEWEL CITY
INCORPORATED
1906
CITY OF GLENDALE, CALIFORNIA
Fin an ce
141 N. Glendale Ave. , Suite 346
Glendale, CA 91 206-4975
Tel. (818) 548-20 85
Fax (818) 956-3286
glendaleca. gov
November 20, 2023
Honorable Mayor and Members of the City Council:
It is our pleasure to submit the Annual Comprehensive Financial Report of the City of Glendale (the City) for the fiscal year ended June 30, 2023.
This report consists of management’s representations concerning the finances of the City. 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 provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed to both protect the City’s assets from loss, theft, or misuse, and compile sufficient reliable information for the preparation of the City’s financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
GAAP requires 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 Glendale’s MD&A can be found immediately following the independent auditors’ report.
The financial reporting entity includes all the funds of the primary government (The City of Glendale), as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are in substance, part of the primary government. Accordingly, the Glendale Housing Authority and the Glendale Municipal Financing Authority are reported in the appropriate funds of the City’s financial report.
Profile of the City of Glendale
The City of Glendale is located northeast of Los Angeles in the foothills of the San Gabriel Mountains. The City was incorporated on February 16, 1906 under the general laws of the state of California. The City Charter was adopted on March 29, 1921. The City provides the full range of municipal services. This includes police, fire, emergency medical services, streets, refuse collection, sewer, hazardous disposal, electric, water, parking, parks and recreation, library, public improvements, planning, zoning, housing, community development and administrative services.
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Noted for its high quality of life and fiscal stability, Glendale is the fourth largest city in Los Angeles County, encompassing 30.6 square miles and serving over 191,000 residents. The City operates under a council- manager form of government, with a five-member council elected at large to four-year overlapping terms, in addition to an elected City Clerk and City Treasurer. The mayor is elected by the City Council for a one- year term and is the presiding officer of the Council. The City Council is responsible for passing ordinances, adopting the budget, appointing various boards and commissions, and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the Council, for overseeing the day-to-day operations of the City, and for appointing the heads of the various departments.
Factors Affecting the Glendale Economy
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Glendale operates.
The Local Economy – Continued capital investment is seen throughout the City through business expansion and attraction to Glendale’s central location, public safety record, and robust business environment. Implementing the Glendale Tech Strategy continues to strengthen local tech firms such as Service Titan, Age of Learning, Legal Zoom, DISQO, Cisco Systems, Phonexa, dot818, and Beyond Limits.
Also of note are Glendale’s regional shopping centers, the Glendale Galleria, Americana at Brand, and Brand Boulevard of Cars. The Glenmark Hotel and Residence Inn by Marriot Los Angeles joins top- performing hotels like Embassy Suites and Hilton. Hotels are supported by a solid corporate presence and the three local hospitals. Such investments by the business community indicate continued confidence in Glendale. Glendale’s economy is one of the most diverse within the Los Angeles region primarily due to a healthy mix of business and industry that operates within its borders.
Economic Development Highlights – The City focuses on collaborative strategies to create jobs, generate revenue, support entrepreneurs, and improve the quality of life for residents, businesses and visitors.
Throughout the years, the City has encouraged economic development through proactive efforts to target and attract businesses, reduce Class A office vacancies, provide support to existing businesses through concierge services, support workforce development program via the Verdugo Jobs Center, promote City- wide branding and marketing efforts, and adopt strategic planning methods. Economic Development accomplishments for FY 2022-23 were focused on three main goals:
1. Asset Management – Glendale actively employs ways to provide additional value of City assets through proactive, profitability-focused management practices. The priority was to achieve the highest and best use of City facilities through an effective asset management strategy.
Accomplishments include:
Implemented a pop-up retail program in the Artsakh Retail Units at 117-131 N. Artsakh Avenue featuring:
Round 1 (August 2021 – January 2022) participants included:
Mkrtchyan Art Gallery – a fine arts gallery specializing in paintings from European and Russian artists
Glendale Cultural & Art Center – a gallery providing art instruction lessons and musical programming
The Glendale Room – a comedy/improv/podcast center by day and performance venue by night
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Naked Frankie – a beauty retailer specializing in natural products
Round 2 (February 2022 – March 2023) participants included:
Chez Gagne – a gift shop showcasing one-of-a-kind products with a wry sense of humor
Rock Photography Museum – a gallery showcasing the work of photographers covering the rock music scene over the decades
The Glendale Room – a comedy/improv/podcast center by day and performance venue by night
Rolling Robots Innovation Lab – a robotics academy specializing in programming for ages 5 to 17
Round 3 (April 2023 – Present) participants include:
Union Jack’s Tea – a woman-owned business dedicated to selling loose tea, plants, and imported goods from the United Kingdom
The Glendale Room – a comedy/improv/podcast center by day and performance venue by night
Rolling Robots Innovation Lab – a robotics academy specializing in programs for ages 5 to 17 Paperback Brewing Artsakh – a tap room.
2. Business Attraction – The City is committed to attracting business and investment to Glendale to create a diverse economy. This is done through Business Concierge services and fast-track permitting, broker relationships, site selection assistance, utility consultation, and connecting potential businesses with resource marketing campaigns and support. Accomplishments in business attraction include:
Glendale Tech Week 2022 returned for its sixth year attracting over 800 local and regional attendees. Events featured a job fair, educational panels and signature events to network with stakeholders and community partners in the tech and innovation ecosystem as well as presented an opportunity to celebrate the innovation throughout the Los Angeles region.
Economic Development continued to build on the 18-hour city concept by assisting new businesses to open their doors in Glendale: Yves Saint Laurent, eLABNEXT, Bath and Body Works, Epique, and more exciting retailers and restaurants are in the pipeline for 2023-2024.
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3. Business Services – Recognizing that most job growth in any community is generated by the businesses already located there, Glendale focuses on services to businesses to propel economic growth. Accomplishments this past year continued to be centered around helping businesses remain open and prosper post COVID-19. Accomplishments include:
Finalized the design concept to implement a permanent Al Fresco Program in the Downtown Glendale Association area to allow expansion of outdoor restaurant dining.
Hosted the first ever Small Business Summit, attracting over 200 small businesses to showcase resources and opportunities that can help small businesses flourish in today’s competitive economic climate.
The City of Glendale contracted with the California Employers Association to provide a new free human resources hotline and series of trainings to assist local employers with human resources issues.
Employment – According to the data obtained from the California State Department of Finance Demographic Research Unit, the population for the City of Glendale as of January 1, 2023 is 191,284, representing a year over year decline of 0.95%. However, the City of Glendale remains the fourth largest city in the Los Angeles Basin and ranks 24 in California. As of August 2023, the Glendale labor force includes 101,700 residents (16 years of age or over), an increase of 800 workers from August 2022, as noted by the Employment Development Department Labor Market Information Division (EDD-LMID).
Overall, the City of Glendale has lost 3,900 workers from its labor force since the beginning of the pandemic (March 2020), representing 3.9% of its labor force.
According to 2022 U.S. Census, American Consumer Survey (ACS) One-Year Estimates, occupational employment data shows the following results for residents of Glendale:
45,873 Glendale residents were employed in management, business, arts, or science occupations
18,556 were employed in sales and office occupations
15,624 were employed in service occupations
6,367 were employed in production and transportation
4,971 were employed in natural resources, construction, and maintenance occupations
The median household income for Glendale residents recorded at $77,483, and the poverty rate is at
13.0%, according to 2022 U.S. Census, American Consumer Survey One-Year Estimates. In comparison, Glendale holds a lower median income than Los Angeles County which records $82,516 median income and lower than California at $91,551 median income. Glendale’s poverty rate is lower than Los Angeles County with a 13.9% poverty rate, but is higher than California’s rate of 12.2% poverty rate.
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Median Household Income Comparison
2022 U.S. Census ACS, One-Year Estimates
Poverty Rate Comparison
2022 U.S. Census ACS, One-Year Estimates
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
Glendale Los Angeles
County
California USA
11.00%
11.50%
12.00%
12.50%
13.00%
13.50%
14.00%
14.50%
Glendale Los Angeles County California USA
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Unemployment Levels – Due to the economic impact of the COVID-19 pandemic that started in March 2020, Glendale’s unemployment peaked in May 2020 at 21.7%, which was double the peak rate during the Great Recession (December 2007 to June 2010). The unemployment rate declined to 10.2% in August 2021. Recovery from the impact of the pandemic continues and as of August 2023, the unemployment rate for Glendale was 5.8%. While much lower than the peak rate recoded in May 2020 of 21.7%, Glendale has yet to reach its pre-pandemic unemployment of 3.9%.
Glendale’s unemployment is at the same level as the Los Angeles County rate (5.8%) for August 2023; however, it is higher than California (5.1%) and the national rate of 3.8%. Furthermore, it is important to note that the decline in labor force has slowed the recovery from the COVID-19 pandemic.
Industry Employment Status – According to Dunn & Bradstreet, the top industries by employment are identified for 2023. The top six Glendale industries are:
Industry Employment Median Annual Salary
1. Healthcare 21,280 $52,010
2. Professional Services 12,840 $113,950
3. Retail 11,080 $42,690
4. Public Administration / Educational Service 10,440 $78,320
5. Eating & Dining 8,320 $25,700
6. Other Services 7,000 $47,130
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Fastest Growing Occupations – Current EDD-LMID projections delineate the 2020-2030 projections with the top 25 fastest growing occupations based on the highest percentage change in Los Angeles County.
The table also delineates the numeric and percentage increase.
Occupational Title Numeric
Change
Percentage
Change
1. Gaming Surveillance Officers and Gaming Investigators 120 100.0%
2. First-Line Supervisors of Gambling Services Workers 190 100.0%
3. Manicurists and Pedicurists 6,410 78.9%
4. Entertainment Attendants and Related Workers 8,400 78.7%
5. Cooks, Restaurant 26,330 78.6%
6. Bartenders 6,340 75.0%
7. Amusement and Recreation Attendants 4,170 70.9%
8. Ushers, Lobby Attendants, and Ticket Takers 1,080 70.1%
9. Fitness Trainers and Aerobics Instructors 4,730 69.2%
10. Massage Therapists 1,840 68.4%
11. Personal Appearance Workers 11,250 59.3%
12. Barbers 340 56.7%
13. Dining Room and Cafeteria Attendants and Bartender Helpers 5,040 55.9%
14. Nurse Practitioners 2,160 55.8%
15. Chefs and Head Cooks 2,260 55.5%
16. Food Preparation and Serving Related Workers, All Other 3,190 52.0%
17. Hairdressers, Hairstylists, and Cosmetologists 3,200 51.6%
18. Nonfarm Animal Caretakers 4,170 51.0%
19. Animal Care and Service Workers 4,430 50.7%
20. Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop 3,390 49.9%
21. Other Food Preparation and Serving Related Workers 17,990 48.8%
22. Cooks, All Other 300 47.6%
23. Baggage Porters and Bellhops 280 47.5%
24. Athletes and Sports Competitors 60 46.2%
25. Supervisors of Food Preparation and Serving Workers 14,260 46.1% viii
Housing – Based on the “2023 Assessed Values Report” issued by the Los Angeles Office of the Assessor, Glendale experienced a net taxable property value increase of 4.3%, which was less than the increase experienced countywide at 5.9%. According to the City’s property tax consultant, HdL, Glendale’s attached single-family housing market showed a decrease in sales volume (number of units sold) and an increase in average price, from $667,022 in FY 2021-22 to $726,413 in FY 2022-23. The detached single-family sales also decreased in sales volume (number of units sold) but increased in average price, from $1,364,759 in FY 2021-22 to $1,437,723 in FY 2022-23.
$667,022
$1,364,759
$726,413
$1,437,723
Attached Single Family Detached Single Family
Attached/Detached Single Family Average Sales Price
(Year Ending June 30)
2022 2023
466
815
285
500
Attached Single Family Detached Single Family
Attached/Detached Single Family Sales (in units)
(Year Ending June 30)
2022 2023
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Long-term Financial Planning and Major Initiatives
In March 2023, the City Council held a governance workshop to discuss best practices, governance norms, and review and establish a consensus on priorities for the FY 2023-24 budget year. The workplan that resulted from the workshop identifies various projects, programs, and initiatives beyond the regular workload, intended to execute the Council’s four highest priority areas that were identified below:
As Glendale continues to streamline its operations and enhance its quality of service, the City must maintain balance by looking at long-term sustainability, closely monitoring cost-drivers, and adapting to changes.
The City’s continued goal is to restore, build, and maintain the programs, infrastructure, and services, and not to revert to traditional patterns and processes. With the City Council’s vision and a team of high-quality, ethical professionals, the City will continue to provide exceptional customer service and uphold the quality of life that is unique to Glendale.
The City Council has also requested that the City continue making strategic capital investments in the community that align with the Council’s priorities stated above. Some of these planned capital improvements include:
Replastering the pool, renovating the deck as well as replacing the tables at the Pacific Community Pool
Continue cleaning and inspecting Citywide sewer lines
Major Glendale Water & Power projects in renewable power generation and transmission, solar, as well as water distribution and Fiber Network Backbone
Renovation of the Fire Station 24 restrooms to be gender friendly as well as the addition of ambulance operator dorms at Fire Station 27
Various pedestrian safety projects throughout the City to ensure the public has safe areas to access for leisure activities
Upgrade the Beeline bus fleet with an overall integrated bus technology system
Capital improvements for capturing and treating stormwater
These projects, in addition to regular maintenance of City-owned facilities, streets, parkway trees, sewers, parklands, and water and power equipment, are just a sample of the many City improvements planned in FY 2023-24 and echo the City Council’s sense of responsible stewardship over community assets. In
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Glendale, departments work together to achieve one main goal: a community that is safe, prosperous, and rich in cultural offerings. There is no one way to do it – but in Glendale, it means teamwork and effective communication between departments, a combination of people and skills, and community support.
In recent years, forecasting has taken a crucial role in Glendale’s budget planning, prompting the City to make appropriate budget adjustments during the year to successfully meet upcoming challenges. During the FY 2023-24 budget study sessions, a Five-Year General Fund Forecast was presented to the City Council. As always, many variables were taken into consideration including but not limited to historical trends, economic forecasts, and use of consultants for major revenue sources such as property and sales taxes. Based on this information, revenue estimates are conservative and assume no future voter-approved revenue increases or potential new tax revenue from new businesses relocating to Glendale. Expenditure estimates factored in increases for major cost drivers such as cost of living adjustments, PERS, medical benefits, capital improvement projects and internal services. Below is a graph that depicts the City’s most recently updated five-year forecast:
Independent Audit
The City’s financial statements have been audited by the firm of CliftonLarsonAllen LLP, a public accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The goal of the independent audit was to provide an opinion on whether the financial statements of the City of Glendale, California for the fiscal year ended June 30, 2023, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by
xi
managemen
t; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Glendale, California’s basic financial statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. Their unmodified opinion on the City’s basic financial statements is included within this report.
The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of Federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and other financial reporting and compliance with legal requirements, and on compliance and internal control over compliance for each major federal program selected. These reports are available in the City’s separately issued Single Audit Report.
Award
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its annual comprehensive financial report for the past twenty-eight fiscal years ended June 30, 1995 through June 30, 2022. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Annual Comprehensive Financial Report, whose contents conform to program standards. Such Annual Comprehensive Financial Report must satisfy both Generally Accepted Accounting Principles and applicable legal requirements. This award is valid for a period of one year. The City believes the current annual comprehensive financial report continues to meet the Certificate of Achievement for Excellence requirements and will be submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments
The preparation of this Annual Comprehensive Financial Report was made possible by the dedicated service of the entire staff of the Finance Department, especially the Accounting section. Each member of the department has my sincere appreciation for their contribution in the preparation of this report.
In closing, without the leadership and support of the Glendale City Council and the City Manager, the preparation of this report, as well as the favorable financial results of the past year, would not have been possible.
R
ESPECTFULLY SUBMITTED,
JASON BRADFORD, CPA
DIRECTOR OF FINANCE AND INFORMATION TECHNOLOGY
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Administration and Executive Management T eam
City Manager Roubik Golanian
Assistant City
Manager John T
akhtalian
City Clerk Suzie Abajian
Chief Human Resources Officer P
aula Adams
Chief Innovation Officer Elena Bolbolian
Director of Finance & Information T echnology Jason Bradford, CPA Director of Community Services & Parks Onnig Bulanikian A
cting Director of Library
, Arts & Culture Onnig Bulanikian
Director of Community Development Bradley Calvert
P
olice Chief Manuel Cid
Director of Public Works Y
azdan Emrani
Fire
Chief Timothy
Ernst
City A
ttorney Michael J.
Garcia
City T reasurer R
afi Manoukian, CPA
General Manager of Glendale W ater & Power Mark Y oung
OFFICIALS OF THE
CITY OF GLENDALE
CITY OF GLENDALE, CALIFORNIA
November 2023
xiii
Fire
Boards and Commissions
Community
Services & Parks
Community
DevelopmentFinance
Glendale
Water & Power Human Resources Information
Technology
Police Public WorksLibrary, Arts &
Culture
City Manager
City Attorney
City ClerkCity CouncilCity Treasurer
Electorate
City of Glendale, California
Organizational Chart
City of Glendale, California
ORGANIZATIONAL CHART
xiv
CERTIFICATE OF ACHIEVEMENT FOR
EXCELLENCE IN FINANCIAL REPORTING
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 Glendale for its annual comprehensive
financial report for the fiscal year ended June
30, 2022. This was the 28th consecutive year
that the City of Glendale has achieved this
prestigious award. In order to be awarded
a Certificate of Achievement, a government
must publish an easily readable and
efficiently organized annual comprehensive
financial report. This report must satisfy both
generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a
period of one year only. We believe that
our current annual comprehensive financial
report continues to meet the Certificate of
Achievement Program’s requirements and we
are submitting it to the GFOA to determine its
eligibility for another certificate.
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Glendale
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
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FINANCIAL SECTION
The Financial Section of the Annual Comprehensive Financial Report contains the following:
• I ndependent Auditors’ Report
• R equired Supplementary Information-
M anagement’s Discussion and Analysis (MD & A)
• C ity’s basic financial statement, which includes the following:
- T he Government-wide Financial Statements
- F und Financial Statements
- N otes to the Basic Financial Statements
INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS’ REPORT
Hono
rable Mayor and
Members of the City Council
City of Glendale
Glendale, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Glendale (the City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise 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 remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and Housing Assistance special revenue fund 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 (GAAS) 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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City 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.
Emphasis of Matter
Change in Accounting Principle
As described in Note 15 to the financial statements, effective July 1, 2022, the City adopted new accounting guidance,
Governmental Accounting Standards Board Statement (GASB Statement) No. 94, Public- Private and Public-Public Partnerships and Availability Payment and GASB Statement No. 96, Subscription-based Information Technology Arrangements. Our opinions are not modified with respect to this matter.
CLA(CliftonLarsonAllenLLP)isanindependentnetworkmemberofCLAGlobal.SeeCLAglobal.com/disclaimer. CliftonLarsonAllenLLP
CLAconnect.com
1 Honorable Mayor and
Members of the City Council
City of Glendale
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 twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance abou t whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a hi gh level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS 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 GAAS and Government Auditing Standards, we:
x Exercise professional judgment and maintain professional skepticism throughout the audit.
x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perfor m audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x 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 City of Glendale’s internal control. Accordingly, no such opinion is expressed.
x 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.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about City of Glendale’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.
2 Honorable Mayor and
Members of the City Council
City of Glendale
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedules of changes in net pension liability and related ratios of the pension plans and schedules of pension plan contributions and schedule of changes in total OPEB liability and related ratio 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 GAAS, 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Glendale’s basic financial statements. The combining and individual non-major fund financial statements and schedules are presented for pur poses 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. The information has been subjected to t he 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 GAAS. In our opinion, the combining and individual non-major fund financial statements and schedules 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 and statistical sections but does not include the basic financial statements and our auditors’ 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 inconsisten cy exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
3 Honorable Mayor and
Members of the City Council
City of Glendale
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 2 0, 2023, on our consideration of the City’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 the City’s 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 the City’s internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Irvine, California
November 20, 2023
4 MANAGEMENT’S DISCUSSION
AND ANALYSIS
CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
As management of the City of Glendale (the 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, 2023.
We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i – xi of this report.
Financial Summary
The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of FY 2022-23 by $1,792,043 (net position), which was comprised of net investment in capital assets of $1,317,113, restricted net position of $322,049 and unrestricted net position of $152,881. The unrestricted net position consisted of a negative $143,194 for governmental activities and $296,075 for business-type activities. The negative unrestricted net position for governmental activities was primarily due to the recognition of net pension liability.
The City’s total net position increased by $59,910, which consists of an increase of $81,231 for Governmental activities, and a decrease of $21,321 for Business-type activities. The increase for Governmental activities was mainly attributable to the higher property tax and utility users tax revenues, and the use of American Rescue Plan Act (ARPA) grant funding. The decrease for Business-type activities was mainly attributable to higher expenses from pension and fuel cost.
As of the close of FY 2022-23, the City’s governmental funds reported combined ending fund balances of $556,932, an increase of $63,853 in comparison with the prior year. About 12.5% of this total amount, $69,554 was unassigned and available for spending at the government’s discretion.
At the end of FY 2022-23, City Charter Article XI Section 15 general reserve of $38,527, and unassigned fund balance of $84,742 for the General Fund totaled $123,269, representing about 42.9% of the FY 2022-23 expense of $287,092. The City Council’s current General Fund Reserve policy is a minimum of 25% of the annual expense, with a target of 35%.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements.
The City’s basic financial statements are comprised of three components:
1) Government-wide financial statements
2) Fund financial statements
3) Notes to the basic financial statements
This report also contains other supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements
The government-wide financial statements, which are comprised of the statement of net position and statement of activities, are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all the City’s assets and deferred outflows of resources, and liabilities and deferred inflows of resources, with the difference reported as net position.
5 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
The statement of activities presents information showing how the government’s net position changed during the 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.
Both the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, police, fire, public works, transportation, housing, health, and community development, employment programs, public service, parks, recreation, and community services, library, and interest and fiscal charges. The business-type activities of the City include electric, fiber optic, fire communication, refuse disposal, sewer and water.
The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate housing authority and municipal financing authority for which the City is financially accountable. The housing authority and the municipal financing authority, although legally separate, function for all practical purposes as departments of the City, and therefore have been included as an integral part of the primary government.
The government-wide financial statements can be found on pages 21-23 of this report.
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, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: (1) governmental funds, (2) proprietary funds, and (3) fiduciary 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 statement, governmental fund financial statements focus on near-term inflows and outflows 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 a government’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 government’s near-term financing decisions. 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 50 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 General Fund, Housing Assistance Fund, and Capital Improvement Fund, all of which are reported as major funds. Data from the other 47 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 elsewhere in this report.
6 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
The City adopts an annual budget for its General Fund, special revenue and debt service fund types.
Budgetary comparison information has been provided for the above fund types to demonstrate compliance with the budget.
The basic governmental fund financial statements can be found on pages 27-34 of this report.
Proprietary funds are used to account for services for which the City charges external customers or internal departments of the City, the City maintains two types of proprietary funds: enterprise & internal service.
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 activities, such as electric, water, refuse, sewer, and fire communications. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for activities, such as fleet maintenance, information technology, joint helicopter operation, building maintenance, employee benefits, and insurance.
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 sewer, electric, and water operations, all of which are major funds of the City. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the non-major enterprise and internal service funds is provided in the form of combining statements elsewhere in this report.
The basic proprietary fund financial statements can be found on pages 37-41 of this report.
Fiduciary funds are used to account for resources held for the benefit of others outside of the City’s own programs. The City maintains two different types of fiduciary funds: private-purpose trust and custodial funds.
Private-purpose trust funds are used to report all fiduciary activities that (a) are not required to be reported in pension and other employee benefits trust funds or investment trust funds and (b) are held in the trust that meets certain criteria. The City uses private-purpose trust fund to account for its Glendale Successor Agency Fund. Custodial funds are used to report fiduciary activities that are not required to be reported in pension and other employee benefits trust funds, investment trust funds, or private-purpose trust funds. The City uses custodial funds to account for the ICI System, unclaimed evidence and regional housing trust JPA.
Since the resources of fiduciary fund are not available to support the City’s own programs, it is not reflected in the government-wide financial statements. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statement can be found on pages 45-46 of this report.
Notes to the Basic 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 on pages 47-108 of this report.
The combining statements referred to earlier in connection with nonmajor governmental and enterprise funds, internal service funds and custodial funds are presented immediately following the required supplementary information, which can be found on pages 109-118 of this report. Combining and individual fund statements can be found on pages 119-216 of this report.
7 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
Government-wide Financial Analysis
For fiscal year ending June 30, 2023, the City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $1,792,043, which is the City’s net position. The largest portion of the City’s net position, $1,317,113 (73.5%), is the net investment in capital assets (e.g., infrastructure, land, buildings, machinery, and equipment) less any related debt used to acquire those assets that was still outstanding. The City uses these capital assets to provide services to the community; therefore, 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.
City of Glendale’s Net Position
As of June 30,
Governmental
activities
Business-type
activities
Total
2023 2022 2023 2022 2023 2022
Non-capital assets $ 829,064 773,886
484,076 482,346
1,313,140 1,256,232
Capital assets 997,448 985,508 550,734 570,005 1,548,182 1,555,513 Total assets 1,826,512 1,759,394 1,034,810 1,052,351 2,861,322 2,811,745 Deferred outflows of resources 171,0 26 67,499 44,769 18,986 215,795 86,485 Total assets and deferred
outflows of resources 1,997,538 1,826,893
1,079,579 1,071,337
3,077,117 2,898,230
Current liabilities 79,650 92,664
64,184 50,731
143,834 143,395
Noncurrent liabilities 763,641 525,3 44 314,008 267,687 1,077,649 793,031 Total liabilities 843,291 618,008 378,192 318,418 1,221,483 936,426 Deferred inflows of resources 54,637 190,506 8,954 39,165 63,591 229,671 Total liabilities and deferred
inflows of resources 897,928 808,514
387,146 357,583
1,285,074 1,166,097
Net investment in capital assets 965,218 958,053
351,895 367,455
1,317,113 1,325,508
Restricted 277,586 280,842 44,463 41,417 322,049 322,259 Unrestricted (143,194) (220,516) 296,075 304,882 152,881 84,366 Total net position $ 1,099,610 1,018,379
692,433 713,754
1,792,043 1,732,133
The restricted portion of the City’s net position are resources that are subject to external restrictions on how they may be used, is $322,049 (18.0%). The remaining balance of the City’s net position, $152,881 (8.5%) is unrestricted and may be used to meet the government’s ongoing obligations to citizens and creditors.
8 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
City of Glendale’s Change in Net Position
For the Fiscal Year Ended June 30,
Governmental
activities
Business-type
activities
Total
2023 2022 2023 2022 2023 2022
Revenues:
Program revenues:
Charges for services $ 87,527 79,576 367,532 348,190 455,059 427,766 Operating grants and contributions 142,711 100,480 1,852 7,662 144,563 108,142 Capital grants and contributions 20,179 13,223 3,014 2,401 23,193 15,624 General revenues:
Taxes:
Property taxes 77,054 72,115 - - 77,054 72,115
Sales taxes 92,458 88,976 - - 92,458 88,976
Utility users tax 29,891 26,943 - - 29,891 26,943
Other taxes 21,090 17,997 - - 21,090 17,997
Investment income 1,445 (12,020) 4,005 (17,761) 5,450 (29,781) Other 3,409 5,328 3,175 6,760 6,584 12,088
Total revenues 475,764 392,618 379,578 347,252 855,342 739,870 Expenses:
General government 21,139 16,143 - - 21,139 16,143
Police 114,706 84,436 - - 114,706 84,436
Fire 78,279 60,535 - - 78,279 60,535
Public works 49,416 51,167 - - 49,416 51,167
Transportation 21,926 22,083 - - 21,926 22,083
Housing, health and community
development 78,508 67,287
- -
78,508 67,287
Employment program 6,818 5,983 - - 6,818 5,983
Public service 5,525 5,159 - - 5,525 5,159
Parks, recreation and community
services 25,094 20,563
- -
25,094 20,563
Library 14,421 12,105 - - 14,421 12,105
Interest and fiscal charges 638 581 - - 638 581
Fiber optic - - 144 100 144 100
Fire communications - - 5,945 5,003 5,945 5,003
Sewer - - 25,018 23,734 25,018 23,734
Refuse disposal - - 21,654 20,998 21,654 20,998
Electric - - 276,142 227,985 276,142 227,985
Water - - 50,059 49,279 50,059 49,279
Total expenses 416,470 346,042 378,962 327,099 795,432 673,141 Excess before transfers 59,294 46,576 616 20,153 59,910 66,729 Transfers 21,937 20,672 (21,937) (20,672) - -
Change in net position 81,231 67,248 (21,321) (519) 59,910 66,729 Net position – beginning 1,018,379 951,131 713,754 714,273 1,732,133 1,665,404 Net position – ending $ 1,099,610 1,018,379 692,433 713,754 1,792,043 1,732,133
9 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
Governmental Activities
Governmental activities increased the City’s net position by $81,231. Key elements of this increase are as follows:
Compared to prior fiscal year, charges for services increased by $7,951 (10.0%). The increase was primarily driven by revenue increases in the following categories: building permits, urban art fees, parks mitigation fees, and parking tickets.
Operating grants and contributions increased by $42,231 (42.0%) compared to prior fiscal year. The increase was primarily driven by the use of American Rescue Plan Act (ARPA) grant funding for public safety services.
Investment income increased by $13,465 (112.0%) during the current fiscal year. The increase was mainly due to a significant increase in fair value of investments in accordance of GASB 31.
Governmental activities expense increased by $70,428 (20.4%) during the current fiscal year. The increase is mainly due to the higher pension expense and liability.
10 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
2023 Expenses and Program Revenues – Governmental Activities
2023 Revenues and Transfers by Source – Governmental Activities
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
General
government
Police Fire Public
works
Transportation Housing,
health &
community
development
Employment
programs
Public
service
Parks,
recreation &
community
services
Library Interest &
fiscal
charges
Expenses Program Revenues
Charges for services
17.59%
Operating grants &
contributions
28.67%
Utility users tax
6.00%
Other
0.69%
Other taxes
4.24%
Investment income
0.29%
Capital grants &
contributions
4.05%
Transfers
4.41%
Sales taxes
18.58%
Property taxes
15.48%
11 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
Business-Type Activities
Business-type activities net position decreased by $21,321. Key elements of this decrease are as follows:
Investment income increased by $21,766 (122.5%) during the current fiscal year, primarily due to a $3,470 increase in interest revenue and an $18,296 net increase in fair value of investments in accordance with GASB 31 and GASB 53.
Operating grants and contributions decreased by $5,810 (75.8%) during the current fiscal year, primarily due to reduced grant funding received compared to prior fiscal year for the California Arrearage Payment Program (CAPP), which was used to pay for past-due customer utility bills.
Charges for services increased by $19,342 (5.6%) during the current fiscal year mainly due to increase in electric retail sales and rates, as well as natural gas sales to other utilities. In addition, there was an increase in AB 939 imposed solid waste compliance permit fees.
Business-type activities expense increased by $51,863 (15.8%), primarily due to increase in natural gas purchase cost, pension expense and the write-off of Grayson Power Plant’s net book value due to plant’s demolition.
Other Income decreased by $3,585 (53.0%). The decrease is primarily due to reduction in miscellaneous and sale of property revenues.
12 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
2023 Expenses and Program Revenues – Business-type Activities
2023 Revenues by Source – Business-type Activities
Charges for services &
Investment income
96.82%
Operating grants &
contributions
0.49%
Capital grants &
contributions
0.79%
Investment income
1.06%
Other
0.84%
$0
$25,000
$50,000
$75,000
$100,000
$125,000
$150,000
$175,000
$200,000
$225,000
$250,000
$275,000
$300,000
Fiber optic Fire
communications
Sewer Refuse disposal Electric Water
Expenses Program Revenues
13 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
Government’s Funds Financial Analysis
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 spending resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $556,932, an increase of $63,853 in comparison with the prior year. About 12.5% of this total amount, $69,554, constituted unassigned fund balance, which was available for spending at the government’s discretion. The remainder of fund balance in the amount of $487,378 was not available for new spending because it was either nonspendable, restricted, committed or assigned. Nonspendable fund balance was $4,074. Restricted fund balance was $337,090, which was constrained by external creditors, grantors, laws or regulations of other governments and enabling legislation. Committed fund balance was $85,527 and the assigned fund balance was $60,687.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance and the City Charter Article XI Section 15 general reserve of the General Fund were $84,742 and $38,527 respectively, while total fund balance was $183,158.
The fund balance of the City’s General Fund had a net increase of $38,003 during the current fiscal year. This net increase is primarily due to the following reasons:
Compared to the prior year, property taxes reve nue increased by $4,939, primarily due to increased market valuations as homes were sold during the fiscal year. Compared to the prior fiscal year, sales tax revenue increased by $15,590, since COVID-19 restrictions were lifted, the City experienced healthy sales tax growth in categories such as general consumer goods, restaurants, fuel and auto-transportation.
Compared to the prior fiscal year, other taxes rev enue increased by $3,093, which consists of occupancy taxes, property transfer taxes, landfill host assessment and franchise taxes. The increase was mainly due to franchise taxes in the amount of $2,089, as a result of a full year franchising of solid waste collection services for commercial establishments and multi-family residential establishments with 5 units or more in FY 2022-23 compared to a partial year of FY 2021-22. Compared to the prior fiscal year, revenue from other agencies increased by $33,094, primarily due to the use of American Rescue Plan Act (ARPA) grant funding for public safety services. Compared to the prior fiscal year, use of money and property revenue increased by $13,562. The increase was mainly due to a significant increase in fair value of investments in accordance of GASB 31.
The Housing Assistance Fund (Section 8 grant) had a fund balance of $11,304, an increase of $2,895 during the current fiscal year. The main reason was that the City spent less administrative expenditures than the earned administrative revenue due to efficient and effective administrative operations.
14 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
The Capital Improvement Fund had a fund balance of $60,375. During the current fiscal year, the fund balance decreased by $3,282, primarily due to more capital projects’ expense incurred.
Proprietary Funds
The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the year, net position was composed of $222,945 for the Sewer Fund, $325,953 for the Electric Fund, $138,531 for the Water Fund, and $26,757 for the nonmajor enterprise funds.
The net position of the Sewer Fund increased by $2,097 during the current fiscal year. Sewer revenues remained largely consistent with the prior year, with a net increase in the fair value of investments in accordance with GASB 31 offset by a reduction in charges for services. Expenses also remained mostly in line with the prior year, with a slight increase in pension costs.
The net position of the Electric Fund decreased by $15,606 during the current fiscal year. The decrease was mainly attributable to higher fuel and pension costs and write-off of Grayson Power Plant net book value, partially offset by increase in electric retail sales, higher electric rates, and increase in natural gas sales to other utilities.
The net position of the Water Fund increased by $2,151 during the current fiscal year. The increase in net position was mainly due to stable revenue earnings, which were mostly on par with the prior fiscal year; however, there was a slight decrease in single-family water sales revenue. The water fund expenses remained largely unchanged compared to the prior fiscal year, with a slight increase in pension costs.
The net position of nonmajor enterprise funds decreased by $9,195 during the current fiscal year. This decrease is primarily attributed to a reduction in Refuse Disposal Fund revenues due to the full-year franchising of solid waste collection services for commercial establishments and multi-family residential establishments with 5 units or more. Additionally, there was a decrease in Refuse Disposal Fund miscellaneous revenue due to a one-time reimbursement of a host fee received in the prior year compared to this fiscal year, although it was partially offset by a net increase in the fair value of investments in accordance with GASB 31. Operating expenses remained largely consistent with the previous year, with the exception of a slight increase in pension expenses across all nonmajor enterprise funds.
General Fund Budgetary Highlights
In comparison to the FY 2022-23 final General Fund revenue budget, the actual revenue received inclusive of transfers in, came in higher by $48,834, mainly due to the recording of the use of American Rescue Plan Act (ARPA) funds in the amount of $38,422 under the revenue from other agencies category. Some of the other major revenue categories to highlight that ended the fiscal year with higher revenues than anticipated were property taxes by $1,593, utility users taxes (UUT) by $2,411, other taxes by $2,250 and charges for services by $1,263. For the property taxes, although number of home sales have been seeing a decline due to rising concerns over higher interest rates, the City has continued to experience growth in its assessed property valuation resulting in continued but modest growth in revenues collected. For the utility users taxes, the variance was mainly due to Gas UUT and Electric UUT both coming in higher than anticipated. The other taxes category ended the fiscal year with higher revenues for franchise fees, landfill host assessment fees and transient occupancy taxes (TOT). With loosened restrictions and increasing personal and business travel, hotel services have seen significant recovery since the pandemic, translating to a continuous growth in TOT revenues. In addition, the charges for services ended the year with higher revenues received, mainly due to larger receipts in emergency medical response fees, plan check fees and in Community Services & Parks’ fees
15 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
resulting from higher than anticipated participation in various activities such as camps and facility rentals. In addition, while the sales tax category (inclusive of Measure S sales tax) only recorded $151 more in revenues than the final General Fund budget, a large portion of the Measure S sales tax revenue was deposited in the Capital Improvement Fund to cover Council approved Measure S funded capital projects. Between the two funds, the City has experienced a healthy sales tax growth with the total sales tax revenues coming in higher by $1,263 compared to the final budget.
For the use of money and property, the revenue recorded is lower than what was anticipated due to the unrealized losses in interest revenue, recorded in accordance with GASB 31 in the amount of $4,845, offset by additional realized interest income revenue in the amount of $1,544 and the unbudgeted interest income and unrealized gains recorded for the Section 115 PERS Stabilization Trust Fund in the amount of $2,518.
On the expenditure side, the FY 2022-23 final expense and transfers out budget increased during the year by $18,427 in comparison to the original expense budget. The increase was driven by Council approved budget carryovers in the amount of $8,765, of which $4,198 were for Measure S programs, and for various Council approved budget amendments in the amount of $9,662. Compared to the FY 2022-23 final General Fund expense budget, the actual expenditures and transfers out were underspent by $11,831. The variance is partially due to Measure S appropriations for various Council approved programs that were unspent in the amount of $5,951. Excluding Measure S appropriations, the remaining variance is mainly due to salaries and benefits savings in the amount of $3,121 as a result of additional vacancy savings and less hourly wages spent; savings in contractual services throughout various departments in the amount of $1,721; and savings in other maintenance & operations and capital outlay categories in the amount of $1,038.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-type activities, as of June 30, 2023, is $1,548,182. This investment in capital assets includes land, natural gas reserve, buildings and improvements, machinery and equipment, infrastructure, intangible assets, construction in progress, right- to-use lease, and subscription. The total decrease in the City’s investment in capital assets for the current fiscal year was 0.5%, and this represents 1.2% increase for governmental activities and a 3.4% decrease for business-type activities.
Major capital asset events during the current fiscal year included the following:
The City purchased various properties for $11,903 to develop affordable housing.
The following construction in progress projects contributing to the capital assets increase in government wide: $3,767 for PMP Implementation Phase I, $2,428 for Traffic Signal Modification at Honolulu, Pennsylvania and Montrose Avenue, $1,942 for Broadway Avenue Rehabilitation and $1,296 for Maintenance District 6 Pavement Rehabilitation.
The following assets contributed to the increase in the Sewer Fund and Refuse Fund: $1,699 intangible assets for the Hyperion Wastewater System in the Sewer Fund. The City is upgrading Hyperion Wastewater Treatment Plant and Conveyance System Facilities to meet federal and state mandates. The Refuse Fund purchased $3,789 of side loader trucks in FY 2022-23.
The following construction in progress projects in Electric Fund contributed to the increase in the business-type capital assets activities: $4,941 Grayson Internal and Combustion Engineering, $4,592 Grayson Unit 9 Separation, $4,325 Fiber Plan, and $3,918 Biogas Renewable Generation.
16 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
Business-type activities
retired $82,406 of the Grayson capital assets. $55,364 of the capital asset was fully depreciated and $27,042 was written off.
The right-to-use lease asset increase due to Community Service, and Parks renew their building lease in the amount of $2,026.
GASB 96 Subscription-Based Information Technology Agreement (SBITA) is implemented on July 1, 2022. The following subscription assets contribute to the increase in governmental activities: $2,946 Microsoft O365, $3,464 Tyler EnerGov, and $599 ArcGIS Explorer.
City of Glendale’s Capital Assets
(Net of Depreciation, Depletion and Amortization)
Governmental
Activities
Business-type
Activities Total
2023 2022 2023 2022 2023 2022
$ 459,19 5 447,292 9,557 9,557 468,752 456,849
21,053 14,103 32,733 11,589 53,786 25,692
244,899 251,175 181,076 189,661 425,975 440,836
38,133 40,988 156,451 188,079 194,584 229,067
219,780 226,284 109,936 107,802 329,716 334,086
- - 7,013 7,690 7,013 7,690
5,006 4,312 53,631 55,355 58,637 59,667
2,570 1,354 272 272 2,842 1,626
Land
Construction in progress
Buildings and improvements
Machinery and equipment
Infrastructure
Natural gas reserve
Intangible assets
Right-to-use lease assets
Subs
cription assets 6,812 - 65 6,877 -
Total capital assets, net $ 997,448 985,508 550,734 570,005 1,548,182 1,555,513 Additional information on the City’s
capital assets can be found in Note 6 on pages 71-73.
Long-term debt. The City’s total long-term debt has a net decrease of $5,693 (2.4%) in FY 2022-23. The net decrease was mainly due to the regular annual bond debt retirements of $12,116 (5.2%). The net decrease was offset by an increase in leases payable by $1,170 (72.7%) due to re-signing of Verdugo Jobs Center office space lease for another three years, and an increase in subscriptions payable by $5,253 (100.0%) due to the implementation of GASB 96 (Subscription-Based Information Technology Agreements) in FY 2022-23. 17 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
Governmental
Activities
Business-type
Activities
Total
2023 2022 2023 2022 2023 2022
Bonds payable:
GMFA lease revenue bonds,
2019 refunding $ 20,655 23,164
- -
20,655 23,164
Electric revenue bonds, 2013 refunding - - 15,119 16,465 15,119 16,465 Electric revenue bonds, 2013 series - - 52,734 54,321 52,734 54,321 Electric revenue bonds, 2016 refunding - - 65,676 69,869 65,676 69,869 Water revenue bonds, 2012 series - - 32,432 33,034 32,432 33,034 Water revenue bonds, 2020 refunding - - 34,625 36,504 34,625 36,504 Total bonds payable 20,655 23,164 200,586 210,193 221,241 233,357
Leases payable 2,615 1,391 164 218 2,779 1,609
Subscriptions payable 5,235 - 18 - 5,253 -
Total long-term debt $ 28,505 24,555 200,768 210,411 229,273 234,966
Additional information on the City’s long-term debt can be found in Note 7 on pages 73-82 of this report.
Credit ratings
Municipal bond ratings provide investors with a simple way to compare the relative investment quality of different bonds. Bond ratings express the opinions of the rating agencies as to the issuer’s ability and willingness to pay debt service when it is due. In general, the credit rating analysis includes the evaluation of the relative strengths and weaknesses of the following four factors as they affect an issuer’s ability to pay its debt service: fiscal, economic, debt and administrative/management factors. The City continues to receive high general credit ratings from all three national rating agencies, despite the difficult financial and economic conditions the national and local economy has been faced with and continues to have a strong capacity to meet its financial commitments on obligations.
The City's bond ratings as of June 30, 2023 are as follows:
Debt Issue Moody’s S&P Fitch
Issuer credit rating (Implied General Obligation) Aa2 AA+ AA+ 2019 Lease revenue refunding bonds - AA AA
Electric revenue bonds, 2013 refunding Aa3 A+ A+
Electric revenue bonds, 2013 series Aa3 A+ A+
Electric revenue bonds, 2016 refunding - A+ A+
Water revenue bonds, 2012 series Aa3 AA- AA-
Water revenue bonds, 2020 refunding - AA- AA-
Debt Administration
The City’s debt administration obligations are as follows:
Pay debt service timely;
Monitor trustee-held accounts and guaranteed investment contracts;
18 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
Comply with bond covenants and Internal Revenue Service (IRS) rules and regulations;
Provide continuing disclosure and other reports to the municipal bond market;
Manage liquidity and credit enhancement contracts.
Continuing Disclosure
On November 10, 1994, the Securities and Exchange Commission (“SEC”) adopted amendments to existing federal regulations (“Rule 15c-12” or the “Rule”) under which municipalities issuing securities on or after July 3, 1995 are required to:
Prepare official statements meeting current requirements of the Rule;
Annually file certain financial information and operating data with national and state repositories;
Prepare announcements of the significant events enumerated in the Rule.
As of June 30, 2023, the City has six series of bonds subject to Continuing Disclosure requirements. The City prepares the Continuing Disclosure (financial and operating information) for its three Electric and two Water series bonds, and engaged a financial advisor, Harrell & Company Advisors, LLC to prepare the Continuing Disclosure for the one GMFA bond. The City also engaged Harrell & Company Advisors, LLC as dissemination agent to post all six series of bonds’ Continuing Disclosure annual reports and the City financial statements on the MSRB’s Electronic Municipal Market Access (“EMMA”) website. The dissemination agent will also prepare any notices of material events and post such notices on EMMA. Timely and accurate communication with the municipal marketplace is vital in retaining the City’s creditworthiness and market access. Continuing Disclosure and compliance reporting constitute a significant part of Debt Management’s compliance activity for the life of each series of bonds.
Next Year’s Budget and Rates
The total citywide adopted appropriation for FY 2023-24 is $1,200,000, with $314,500 of that amount in the General Fund. The FY 2023-24 adopted General Fund budget reflects an increase of approximately $24,300 when compared to the FY 2022-23 revised budget.
The FY 2023-24 adopted General Fund resource estimates are $336,400, inclusive of $16,100 in projected use of Measure S unallocated fund balance, and $20,400 in projected use of American Rescue Plan Act (ARPA) funding.
Property tax receipts are estimated to be approximately $80,300, which is $3,400, or 4.4%, above the prior year’s revised estimate. The City continues to experience growth in its assessed property valuation, however, has seen an overall decrease in the number of home sales in calendar year 2022 compared to 2021, mainly due to rising concerns over higher interest rates and inflation. Thus, the City’s property tax consultants have forecasted conservative growth in Property Taxes for FY 2023-24 and outward.
Sales tax revenues are estimated to be approximately $56,900 for Bradley Burns, with an additional $34,200 in Measure S Sales tax. While the revenue for this category has recovered from the pandemic, it is projected that a slowdown in the upcoming fiscal year and the outer years, resulting in little to no growth in anticipated revenues for FY 2023-24. Thus, this category is only expected to grow by $103, or 0.2%. For FY 2023-24, the
19 CITY OF GLENDALE
Management’s Discussion and Analysis
June 30, 2023
(in thousands)
entire Measure S Sales Tax revenue estimate has been included within the proposed revenues as well as the resource for the projected Measure S unallocated Fund Balance, while the FY 2022-23 amount only reflects the Measure S Sales Tax portion that was used mostly to fund Measure S revenue supported recurring General Fund programs.
Utility users tax (UUT) is estimated to be approximately $29,600, which is a 7.9% increase from the FY 2022-23 estimate. For FY 2023-24, an anticipated increase for Electric UUT was accounted for due to an expected increase in Electric operating revenues as a direct result of the Cost-of-Service Assessment (COSA) being completed by GWP. However, as in years past, the City anticipates a continued decline in telecommunication revenues based on a decrease in consumers’ usage of voice and text and increasing data usage (internet access and internet access-based apps). Data services have been deemed as exempt from taxation by courts in California and other jurisdictions nationwide. Cable revenue also continues to slowly decline as customers cancel traditional cable television services in favor of streaming services, which results in a lower bill and corresponding tax collection.
Occupancy & other Taxes receipts are estimated to be approximately $10,000, which is a 15.9% increase from the prior year’s estimate. Hotel services have shown significant growth since the pandemic, resulting in the Transient Occupancy Tax (TOT) revenues, showing a month-over-month growth in recent quarters. Also, the City factored in the anticipated revenue to be received from the newly opened Holiday Inn Express & Suites hotel in Downtown Glendale within the FY 2023-24 estimated revenues.
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021, guaranteeing direct financial relief to Local Governments. The total City of Glendale allocation was $43,500. All funds received must be expended by December 31, 2024. Approximately $23,100 of the amount has been accounted for FY 2021-22 and FY 2022-23.
The net increase in the salaries and benefits category is approximately $17,900 of this, $11,500 is in salaries mainly as a result of approved Memorandum of Understanding cost of living Adjustments, normal step progression and reallocation of employees; $3,900 is in PERS costs (net of employee cost sharing); and a net increase of $2,500 in hourly wages, overtime, and other benefits. These costs are inclusive of $8,000 in estimated vacancy savings.
As anticipated, the cost for PERS is one of the largest expense obligations for the City. To mitigate the continuously rising PERS costs, during the FY 2017-18 budget adoption, the City Council took a proactive step by voting to establish a Section 115 Pension Rate Stabilization Trust. Since the establishment of the Trust, the City Council authorized the initial deposit of $26,500 in FY 2017-18 and an additional deposit of $5,500 in FY 2019-20, for a total deposit of $32,000 of one-time surplus revenues. The total ending balance as of June 30, 2023, is $37,000 which provides a 2.95% average annual rate of return since inception. As presented in FY 2023-24 budget study session, the trust will be used as a budget balancing strategy starting in FY 2025-26.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Director of Finance and Information Technology, 141 North Glendale Avenue, Suite 346, Glendale, CA 91206.
20 BASIC FINANCIAL STATEMENTS
Exhibit A-1
CITY OF GLENDALE
Statement of Net Position
June 30, 2023
(amounts expressed in thousands)
Governmental
Activities
Business-Type
Activities Total
ASSETS
Pooled cash and investments 601,068$ 193,580$ 794,648$ Cash and investments with fiscal agent - 10,236 10,236 Accounts receivable, net 55,746 42,277 98,023
Interest receivable 2,807 2,549 5,356
Internal balances 21,753 (21,753) -
Investment-gas/electric commodity - 8,018 8,018
Inventories 1,069 11,484 12,553
Prepaid items 6,833 28,652 35,485
Restricted cash and investments 96,534 44,463 140,997 Designated cash and investments - 162,735 162,735
Leases receivable 34,283 1,711 35,994
Loans receivable 6,760 - 6,760
PPP receivable 2,211 124 2,335
Capital assets, net 517,200 508,172 1,025,372
Capital assets, not being depreciated 480,248 42,562 522,810 Total assets 1,826,512 1,034,810 2,861,322
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to OPEB 2,267 558 2,825 Deferred outflows of resources related to pensions 168,759 40,820 209,579 Loss on refunding - 3,391 3,391
Total deferred outflows of resources 171,026 44,769 215,795 Total assets and deferred outflows of resources 1,997,538 1,079,579 3,077,117
LIABILITIES
Current liabilities:
Accounts payable 18,133 45,818 63,951
Accrued wages and withholding 8,381 2,473 10,854
Bonds payable 2,609 9,992 12,601
Claims payable 16,393 - 16,393
Compensated absences 3,132 - 3,132
Deposits 7,934
2,576 10,510
Interest payable 72 3,253 3,325
Leases payable 777 54 831
Subscriptions payable 2,558 18 2,576
Unearned revenues 19,661 - 19,661
Total current liabilities 79,650$ 64,184$ 143,834$
Primary Government
See accompanying notes to basic financial statements
(Continued)
21 Exhibit A-1
CITY OF GLENDALE
Statement of Net Position
June 30, 2023
(amounts expressed in thousands)
Governmental
Activities
Business-Type
Activities Total
Primary Government
Noncurrent liabilities:
Bonds payable 18,046$ 190,594$ 208,640$
Claims payable 67,306 - 67,306
Compensated absences 29,294 - 29,294
Landfill postclosure 78,707 - 78,707
Leases payable 1,838 110 1,948
Subscriptions payable 2,677 - 2,677
OPEB liability 9,330 3,097 12,427
Net pension liability 556,443 120,207 676,650
Total noncurrent liabilities 763,641 314,008 1,077,649 Total liabilities 843,291 378,192 1,221,483
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases 33,382 1,625 35,007 Deferred inflows of resources related to PPP 2,133 122 2,255 Deferred inflows of resources related to OPEB 4,876 1,258 6,134 Deferred inflows of resources related to pensions 14,246 5,154 19,400 Gain on refunding - 795 795
Total deferred inflows of resources 54,637 8,954 63,591 Total liabilities and deferred inflows of resources 897,928 387,146 1,285,074
NET POSITION
Net investment in capital assets 965,218 351,895 1,317,113 Restricted for:
Air quality improvement 1,148 - 1,148
Cable access 4,010 - 4,010
Capital projects 73,038 - 73,038
Carbon emissions - 37,160 37,160
Electric public benefit AB1890 10,857 - 10,857
Federal and state grants 13,479 - 13,479
Impact fee funded projects 32,585 - 32,585
Landscaping district 285 - 285
Low and moderate housing 9,430 - 9,430
Low carbon fuel standard - 1,634 1,634
Pension stabilization 37,030 - 37,030
Public safety 4,477 - 4,477
Public works 4,506 - 4,506
SCAQMD emission controls - 5,669 5,669
State gas tax mandates 21,521 - 21,521
Transportation 55,529 - 55,529
Urban art 9,680 - 9,680
Youth employment 11 - 11
Unrestricted (143,194) 296,075 152,881
Total net position 1,099,610$ 692,433$ 1,792,043$
See accompanying notes to basic financial statements
22 Exhibit A-2
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-
Type
Activities Total
Governmental activities:
General government 21,139 $ 20,150 $ 356 $ -$ (633)$ $ - (633)$ Police 114,706 2,279 25,025 766 (86,636) - (86,636) Fire 78,279 11,398 16,183 491 (50,207) - (50,207) Public works 49,416 22,594 12,274 13,573 (975) - (975) Transportation 21,926 170 29,458 2 7,704 - 7,704 Housing, health and
community development 78,508 12,336 52,774 4,873 (8,525) - (8,525) Employment programs 6,818 2,318 4,841 - 341 - 341 Public service 5,525 7,675 - - 2,150 - 2,150 Parks, recreation and
community services
25,094 7,068 1,174 474 (16,378) - (16,378) Library 14,421 1,539 626 - (12,256) - (12,256) Interest and fiscal charges 638 - - - (638) - (638) Total governmental activities 416,470 87,527 142,711 20,179 (166,053) - (166,053) Business-type activities:
Sewer Fund 25,018 27,203 9 - - 2,194 2,194 Refuse Disposal Fund 21,654 12,122 50 - - (9,482) (9,482) Fiber Optic Fund 144 231 - - - 87 87 Fire Communication Fund 5,945 5,469 - - - (476) (476) Electric Fund 276,142 271,732 1,786 2,236 - (388) (388) Water Fund 50,059 50,775 7 778 - 1,501 1,501 Total business-type activities 378,962 367,532 1,852 3,014 - (6,564) (6,564) Total primary government 795,432$ 455,059 $ 144,563$ 23,193$ (166,053)$ (6,564)$ (172,617)$ 1,445 4,005 5,450
77,054 - 77,054
92,458 - 92,458
29,891 - 29,891
21,090 - 21,090
3,409 3,175 6,584
21,937
(21,937) -
247,284 (14,757) 232,527
81,231 (21,321) 59,910
1,018,379 713,754 1,732,133
1,099,610$ 692,433$ 1,792,043$
CITY OF GLENDALE
Statement of Activities
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Net (Expense) Revenue and
Changes in Net Position
Program Revenues Primary Government
General revenues:
Investment income
Property taxes
Sales taxes
Utility users tax
Other taxes
Other
Transfers
Total general revenues, and transfers
Change in net position
Net position - beginning
Net position - ending
See accompanying notes to basic financial statements
23 This page is left blank intentionally.
24 MAJOR GOVERNMENTAL FUNDS
1010-1070 – General Fund - To account for all financial res ources, except those required to be accounted for in another fund.
2020 – Housing Assistance Fund - To account for monies received and expended by the City under Section 8 of the Federal Housing and Urban Development Act for housing assistance to low and moderate income families.
4010-4011 – Capital Improvement Fund - To account for financial resources used for major capital projects of the general government operations.
25 This page is left blank intentionally.
26 Exhibit B-1
General Fund
1010-1070
Housing
Assistance
Fund
2020
Capital
Improvement
Fund
4010-4011
Total
Nonmajor
Funds
Total
Governmental
Funds
ASSETS
Pooled cash and investments 124,883$ 7,703$ 61,944$ 270,914$ 465,444$ Restricted cash and investments 37,030 - - 59,504 96,534 Leases receivable 12,216 - - 22,067 34,283 PPP receivable 2,211 - - - 2,211
Accounts receivable, net 28,027 1,551 - 25,186 54,764 Interest receivable 1,324 - - 571 1,895 Loans receivable - - - 6,760 6,760
Due from other funds 11,375 - - - 11,375 Inventories 251 - - - 251
Prepaid items 448 3,299 - 76 3,823
Total assets 217,765 12,553 61,944 385,078 677,340
LIABILITIES
Accounts payable 4,332 1,068 1,568 6,994 13,962 Deposits 7,819 - - 114 7,933
Due to other funds - - - 11,375 11,375 Unearned revenues 31 - - 19,630 19,661 Wages and benefits payable 8,443 103
1 684 9,231
Total liabilities 20,625 1,171 1,569 38,797 62,162
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases 11,792 - - 21,590 33,382 Deferred inflows of resources related to PPP 2,133 - - - 2,133 Unavailable revenues 57 78 - 22,596 22,731
Total deferred inflows of resources 13,982 78 - 44,186 58,246 Total liabilities and deferred inflows of resources 34,607$ 1,249$ 1,569$ 82,983$ 120,408$
CITY OF GLENDALE
Balance Sheet
Governmental Funds
June 30, 2023
(amounts expressed in thousands)
See accompanying notes to basic financial statements
(Continued)
27 Exhibit B-1
General Fund
1010-1070
Housing
Assistance
Fund
2020
Capital
Improvement
Fund
4010-4011
Total
Nonmajor
Funds
Total
Governmental
Funds
CITY OF GLENDALE
Balance Sheet
Governmental Funds
June 30, 2023
(amounts expressed in thousands)
FUND BALANCES (DEFICITS)
Nonspendable
Inventory 251$ -$ -$ -$ 251$
Prepaid 448 3,299 - 76 3,823
Restricted
Air quality improvement - - - 1,148 1,148 Cable access - - - 4,010 4,010
Capital projects - - - 73,038 73,038
Electric public benefit AB1890 - - - 10,857 10,857 Federal and state grants - 8,005 - 5,474 13,479
Impact fee funded projects - - - 32,585 32,585 Landfill postclosure - - - 59,504 59,504 Landscaping district - - - 285 285
Low and moderate housing - - - 9,430 9,430 Pension stabilization 37,030 - - - 37,030 Public safety - - - 4,477 4,477
Public works - - - 4,506 4,506
State gas tax mandates - - - 21,521 21,521 Transportation - - - 55,529 55,529
Urban art - - - 9,680 9,680
Youth employment - - - 11 11
Committed
Capital projects - - 60,375 2,194 62,569 Debt service - - - 10,281 10,281
Hazardous materials - - - 3,704 3,704 Parking - - - 8,474 8,474
Public safety - - - 499 499
Assigned
City Charter - Article XI Sec. 15 general reserve 38,527 - - - 38,527 Quality of life - affordable housing,
infrastructure improvements, and
other essential services 22,160 - - - 22,160 Unassigned 84,742 - - (15,188) 69,554 Total fund balances (deficits) 183,158 11,304 60,375 302,095 556,932 Total liabilities, deferred inflows of resources
and fund balances (deficits) 217,765$ 12,553$ 61,944$ 385,078$ 677,340$ See accompanying notes to basic financial statements
28 Exhibit B-2
CITY OF GLENDALE
Reconciliation of Balance Sheet
to the Statement of Net Position
June 30, 2023
(amounts expressed in thousands)
$ 556,932
Amounts reported for governmental activities in the statement of net position are different because:
Capital, lease and subscription assets are not included as financial resources in the governmental funds:
Land $ 459,195
Buildings and improvements 243,290
Equipment 13,874
Infrastructure 219,781
Intangible 492
Construction in progress 20,811
Lease Building 2,038
Subscription 604
960,085
Long-term debt not included in the governmental funds (due within one year) 2019 GMFA lease revenue refunding bonds (2,609)
Long-term debt not included in the governmental funds (due more than one year) 2019 GMFA lease revenue refunding bonds (18,046)
Accrued interest payable for the current portion of interest due is not included in the governmental funds:
2019 GMFA lease revenue refunding bonds (72)
Long-term lease not included in the governmental funds (due within one year) (734) Long-term lease not included in the governmental funds (due more than one year) (1,325) Long-term subscription not included in the governmental funds (due within one year) (304) Long-term subscription not included in the governmental funds (due more than one
year) (310)
Landfill postclosure liability not included in the governmental funds (78,707) Unavailable revenue in the governmental funds is revenue in the statement of activities 22,730 Deferred outflows of resources related to pensions 168,759 Deferred inflows of resources related to pensions (14,246) Net pension liability (556,443)
Deferred outflows of resources related to OPEB 2,267
Deferred inflows of resources related to OPEB (4,876)
OPEB Liability (9,330)
Internal service funds are used to charge the cost of certain activities to individual funds, such as self insurance, and post employment benefits. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position 75,839
$ 1,099,610Net position of governmental activities
Fund balances of governmental funds
See accompanying notes to basic financial statements
29 This page is left blank intentionally.
30 Exhibit C-1
CITY OF GLENDALE
Governmental Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
General Fund
1010-1070
Housing
Assistance
Fund
2020
Capital
Improvement
Fund
4010-4011
Total
Nonmajor
Funds
Total
Governmental
Funds
REVENUES
Property taxes 77,054$ -$ -$
$ - 77,054$
Sales tax 78,706 - 13,752 - 92,458
Utility users tax 29,891 - - - 29,891
Other taxes 21,090 - - - 21,090
Revenue from other agencies 39,153 45,536 - 58,420 143,109 Licenses and permits 11,454 - - 4,743 16,197 Fines and forfeitures 3,380 - - 4,361 7,741 Charges for services 19,743 - - 33,912 53,655 Interfund revenue 18,675 - - - 18,675
Miscellaneous revenue 1,311 18 - 1,169 2,498 Use of money and property 2,701 132 - 4,536 7,369 Total revenues 303,158 45,686 13,752 107,141 469,737
EXPENDITURES
Current:
General government 22,951 - -
165 23,116
Police 107,617 - 10 2,248 109,875
Fire 73,136 - - 2,701 75,837
Public works 16,360 - 825 13,613 30,798 Transportation - - - 19,927 19,927
Housing, health and community development 21,913 42,791 3,122 8,185 76,011 Employment programs - - - 6,171 6,171
Public service - - - 5,429 5,429
Parks, recreation and community services 21,087 - 137 1,121 22,345 Library 12,555 - - 1,179 13,734
Debt service:
Principal retirement - Bonds - - - 2,025 2,025 Interest - Bonds - - - 967 967
Principal retirement - Leases 67 - - 693 760 Interest - Leases 1 - - 11 12
Principal retirement - Subscription 138 - - 137 275 Interest - Subscription 8 - - 7 15
Capital outlay:
Capital outlay 597 - 14,043 20,000 34,640 Total expenditures 276,430 42,791 18,137 84,579 421,937 Excess (deficiency) of revenues over
expenditures 26,728
2,895 (4,385) 22,562 47,800
OTHER FINANCING SOURCES (USES)
Transfers in 21,937 - 1,103 1,649 24,689 Transfers out (10,662) - - - (10,662)
Lease issuance - - - 2,026 2,026
Total other financing sources (uses) 11,275 - 1,103 3,675 16,053 Net change in fund balances 38,003 2,895 (3,282) 26,237 63,853 Fund balances - beginning 145,155 8,409 63,657 275,858 493,079 Fund balances - ending 183,158$ 11,304$ 60,375$ 302,095$ 556,932$ Statement of Revenues, Expenditures and Changes in Fund Balances See accompanying notes to basic financial statements
31 Exhibit C-2
CITY OF GLENDALE
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Net change in fund balances - total government funds $ 63,853 Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures 35,351 In the statement of activities, the cost of capital, lease and subscription assets are allocated over their estimated useful lives as depreciation and amortization expenses (25,457) Repayment of principal for 2019 GMFA lease revenue refunding bonds is an expenditure in the governmental funds, but the repayment reduces long-term debt in the statement of net position 2,025
2019 GMFA lease revenue refunding bonds accrued interests 8 2019 GMFA lease revenue refunding bonds premium 484
Repayment of lease principals are expenditures in the governmental funds, but the repayment reduces lon
g-term liabilities in the statement of net position 760 Lease issuance is an other financing source in the governmental funds, but the lease issuance increases lon
g-term liabilities in the statement of net position (2,026) Repayment of subscription principals are expenditures in the governmental funds, but the repa
yment reduces long-term liabilities in the statement of net position 275 Landfill postclosure liability changed from prior year (7,257) Unavailable revenue in the governmental funds are recognized as revenues in the statement of activities 6,029
Governmental funds report pension contributions as expenditures. However, in the statement of activities, pension expense is measured as the change in net pension liability and the amortization of deferred outflows and inflows related to pensions. This amount represents the net chan
ge in pension related amounts (1,561)
Governmental funds report OPEB benefits paid to retirees as expenditures. However, in the statement of activities, OPEB expense is measured as the change in total OPEB liability and the amortization of deferred outflows and inflows related to OPEB. This amount represents the net chan
ge in OPEB related amounts 1,384
Change in net position of internal service funds allocated to governmental activities 7,363 Change in net position of governmental activities $ 81,231 See accompanying notes to basic financial statements
32 Exhibit D-1
1010-1070
Original Budget Final Budget Actual
Variance with
Final Budget
REVENUES
Property taxes 75,461$ 75,461$ 77,054$ 1,593$
Sales tax 69,759 78,555 78,706 151
Utility users tax 24,993 27,480 29,891 2,411
Other taxes 18,210 18,840 21,090 2,250
Revenue from other agencies 220 220 39,153 38,933
Licenses and permits 9,499 10,499 11,454 955
Fines and forfeitures 3,005 3,005 3,380 375
Charges for services 17,880 18,480 19,743 1,263
Interfund revenue 18,698 18,698 18,675 (23)
Miscellaneous revenue 1,161 1,211 1,311 100
Use of money and property 2,320 3,111 2,701 (410)
Total revenues 241,206 255,560 303,158 47,598
EXPENDITURES
Current:
City Clerk 1,234 1,368 927 441
City Manager 7,123 7,435 6,610 825
City Treasurer 1,064 1,089 1,019 70
Finance 6,964 7,102 6,428 674
Legal 5,067 5,209 4,684 525
Personnel 3,550 3,628 3,283 345
Non-Departmental* (5,460) (5,460) - (5,460)
Police 109,190 112,395
107,617 4,778
Fire 72,268 73,121 73,136 (15)
Public Works 17,574 18,974 16,360 2,614
Community Development 23,767 25,953 21,913 4,040
Community Services and Parks 22,334 23,371 21,087 2,284 Library, Arts and Culture 12,540 12,773 12,555 218
Total current 277,215 286,958 275,619 11,339
Debt service:
Principal retirement - Leases - - 67 (67)
Interest - Leases - - 1 (1)
Principal retirement - Subscription - - 138 (138)
Interest - Subscription - - 8 (8)
Total debt service - - 214 (214)
Capital outlay:
Police 600 639 39 600
Fire - 139 82 57
Public Works - 30 27 3
Community Development 100 601 433 168
Community Services and Parks - - 16 (16)
Total capital outlay 700 1,409 597 812
Total expenditures 277,915 288,367 276,430 11,937
Excess (deficiency) of revenues over
(under) expenditures (36,709) (32,807) 26,728 59,535
OTHER FINANCING SOURCES (USES)
Transfers in 20,701
20,701 21,937 1,236
Transfers out (2,581) (10,556) (10,662) (106)
Total other financing sources (uses) 18,120$ 10,145$ 11,275$ 1,130$ Note:
*Vacancy savings were incorporated in the adopted FY2022-23 budget.
CITY OF GLENDALE
Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Fund
For the Year Ended June 30, 2023
(amounts expressed in thousands)
See accompanying notes to basic financial statements
33 Exhibit D-2
2020
Original Budget Final Budget Actual
Variance with
Final Budget
REVENUES
Revenue from other agencies 49,944 $ 50,377 $ 45,536 $ (4,841) $ Miscellaneous revenue - - 18 18
Use of money and property 76 76 132 56
Total revenues 50,020 50,453 45,686 (4,767)
EXPENDITURES
Current:
Housing, health and community development 49,951 51,061 42,791 8,270 Total expenditures 49,951$ 51,061$ 42,791$ 8,270$
CITY OF GLENDALE
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Assistance Fund
For the Year Ended June 30, 2023
(amounts expressed in thousands)
See accompanying notes to basic financial statements
34 MAJOR ENTERPRISE FUNDS
5250 - Sewer Fund - To account for op erations and maintenance of the sewer system. This service is primarily contracted with City of Los Angeles.
5810 - 5880 - Electric Fund - To account for the operati ons of the City-owned electric utility services.
5910 - 5980 - Water Fund - To account for the operations of the City-owned water utility services.
35 This page is left blank intentionally.
36 Exhibit E-1
CITY OF GLENDALE
Statement of Net Position
Proprietary Funds
June 30, 2023
(amounts expressed in thousands)
Sewer
Fund
Electric
Fund
Water
Fund
5250 5810-5880 5910-5980
ASSETS
Current assets:
Pooled cash and investments $ 59,346 85,662$
$ 24,188 24,384$ 193,580 $ 135,624$
Cash and investments with fiscal agent - 4,941 5,295 - 10,236 - Investment-gas/electric commodity - 8,018 - - 8,018 - Accounts receivable, net 3,990 28,314 7,289 2,684 42,277 2,898 Interest receivable 415 1,709 249 176 2,549 914 Inventories - 11,484 - - 11,484 818 Prepaid items - 28,652 - - 28,652 3,009 Total current assets 63,751 168,780 37,021 27,244 296,796 143,263 Noncurrent assets:
Designated cash and investments - 151,435 11,300 - 162,735 - Restricted cash and investments - 44,463 - - 44,463 - Leases receivable - 993 718 - 1,711 - PPP receivable - - - 124 124 - Capital assets, net 172,666 141,127 178,989 15,390 508,172 37,121 Capital assets, not being depreciated 812 36,213 3,898 1,639 42,562 242
Total noncurrent assets 173,478 374,231 194,905 17,153 759,767 37,363 Total assets 237,229 543,011 231,926 44,397 1,056,563 180,626
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to OPEB
7 408 122 21 558 - Deferred outflows of resources related to pensions 2,362 25,077 6,751 6,630 40,820 - Loss on refunding - 3,391 - - 3,391 - Total deferred outflows of resources 2,369 28,876 6,873 6,651 44,769 - Total assets and deferred outflows of
resources 239,598$ 571,887 $ 238,799$ 51,048 $ 1,101,332 $ 180,626 $ Business - Type Activities
Total
Nonmajor
Funds
Total
Enterprise
Funds
Internal
Service
Funds
See accompanying notes to basic financial statements
(Continued)
37 Exhibit E-1
CITY OF GLENDALE
Statement of Net Position
Proprietary Funds
June 30, 2023
(amounts expressed in thousands)
Sewer
Fund
Electric
Fund
Water
Fund
5250 5810-5880 5910-5980
Business - Type Activities
Total
Nonmajor
Funds
Total
Enterprise
Funds
Internal
Service
Funds
LIABILITIES
Current liabilities:
Accounts payable $ 9,289 27,704$ $ 7,246 $ 1,579 45,818$ $ 4,171 Bonds payable - 7,431 2,561 - 9,992 - Claims payable - - - - - 16,393 Compensated absences - - - - - 3,132 Deposits 306 1,726 450 94 2,576 - Interest payable - 2,447 806 - 3,253 - Leases payable - 42 12 - 54 44 Subscriptions payable - - - 18 18 2,255 Wages and benefits payable 158 1,490 376 449 2,473 1,066 Total current liabilities 9,753 40,840 11,451 2,140 64,184 27,061 Noncurrent liabilities:
Bonds payable - 126,097 64,497 - 190,594 - Claims payable - - - - - 67,306 Compensated absences - - - - - 29,294 Leases payable - 86 24 - 110 513 Subscriptions payable - - - - - 2,367 OPEB liability 170 1,781 587 559 3,097 - Net pension liability 6,415 72,144 21,128 20,520 120,207 - Total noncurrent liabilities 6,585 200,108 86,236 21,079 314,008 99,480 Total liabilities 16,338 240,948 97,687 23,219 378,192 126,541
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases - 942 683 - 1,625 - Deferred inflows of resources related to OPEB 28 897 243 90 1,258 - Deferred inflows of resources related to pensions 287 3,147 860 860 5,154 - Deferred inflows of resources related to PPP - - - 122 122 - Gain on refunding - - 795 - 795 - Total deferred inflows of resources 315 4,986 2,581 1,072 8,954 - Total liabilities and deferred inflows of
resources 16,653 245,934 100,268 24,291 387,146 126,541
NET POSITION
Net investment in capital assets 173,421 43,249 118,618 16,607 351,895 31,485 Restricted for:
Carbon emissions - 37,160 - - 37,160 - Low carbon fuel standard - 1,634 - - 1,634 - SCAQMD emission controls - 5,669 - - 5,669 - Unrestricted 49,524 238,241 19,913 10,150 317,828 22,600 Total net position 222,945$ 325,953 $ 138,531$ 26,757 $ 714,186 54,085$ because the net adjustment pertains to items on the statement of net position of certain internal service funds reported with business-type activities. (21,753) Total net position of business-type activities 692,433$ Some amounts reported for business-type activities in the statement of net position are different See accompanying notes to basic financial statements
38 Sewer
Fund
Electric
Fund
Water
Fund
5250 5810-5880 5910-5980
OPERATING REVENUES
Charges for services 27,203 $ 259,483 $ 49,501 $ 17,823 $ 354,010 $ 117,725 $ Miscellaneous revenue 57 13,802 1,288 147 15,294 98 Total operating revenues 27,260 273,285 50,789 17,970 369,304 117,823
OPERATING EXPENSES
Salaries and benefits 4,072 38,755 9,902 12,010 64,739 19,868
Claims and settlement - - - - - 59,930
Maintenance and operation 20,900 226,106 38,355 15,667 301,028 40,005 Total operating expenses 24,972 264,861 48,257 27,677 365,767 119,803 Operating income (loss) 2,288 8,424 2,532 (9,707) 3,537 (1,980)
NONOPERATING REVENUES
(EXPENSES)
Intergovernmental grants 9 1,786 7 50 1,852 462 Use of money and property (200) 4,607 541 462 5,410 337 Interest expense - (5,214) (1,707) - (6,921) (137) Litigation settlement - (5,508) - - (5,508) -
Total nonoperating revenues
(expenses) (191) (4,329) (1,159) 512 (5,167) 662 Income (loss) before contributions
and transfers 2,097 4,095 1,373 (9,195) (1,630) (1,318)
Transfers in - - - - - 10,910
Capital grants and contributions - 2,236 778 - 3,014 - Transfers out - (21,937) - - (21,937) (3,000)
Change in net position 2,097 (15,606) 2,151 (9,195) (20,553) 6,592 Total net position - beginning 220,848 341,559 136,380 35,952 734,739 47,493 Total net position - ending 222,945$ 325,953$ 138,531$ 26,757$ 714,186$ 54,085$ Some amounts reported for business-type activities in the statement of activities are different because the net revenue (expense) of certain internal service funds are reported with business-type activities.
(768)
Changes in net position of business-type activities (21,321)$ Exhibit E-2
Total
Nonmajor
Funds
Total
Enterprise
Funds
Internal
Service
Funds
Business - Type Activities
CITY OF GLENDALE
Statement of Revenues, Expenses, and
Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
See accompanying notes to basic financial statements
39 Exhibit E-3
CITY OF GLENDALE
Statement of Cash Flows
Proprietary Funds
June 30, 2023
(amounts expressed in thousands)
Sewer
Fund
Electric
Fund
Water
Fund
5250 5810-5880 5910-5980
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 27,584 $ 278,381 $ 52,325 $ 21,759 $ 380,049 $ 116,303 $ Payments to employees (4,163) (40,165) (10,380) (11,828) (66,536) (25,678) Payments to suppliers (11,605) (215,623) (30,189) (12,940) (270,357) (83,285) Intergovernmental grants received (returned) (43) 1,786 7 50 1,800 462 Net cash provided (used) by operating activities 11,773 24,379 11,763 (2,959) 44,956 7,802
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Litigation settlement - (5,508) - - (5,508) - Lease and PPP revenue received - 846 250 1 1,097 41 Amounts received from (paid to) other funds - - - - - (55) Transfers in (out), net - (21,937) - - (21,937) 7,910 Net cash provided (used) by
noncapital financing activities - (26,599) 250 1 (26,348) 7,896
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (2,685) (3,550) (7,688) (4,524) (18,447) (5,614) Interest paid on long-term debt - (6,233) (2,015) - (8,248) - Principal payments - (5,995) (2,260) -
(8,255) -
Proceeds from sales of capital assets 62 95 36 116 309 185 Capital grants and contributions received - 2,236 778 - 3,014 - $ Net cash provided (used) by capital and
related financing activities (2,623) (13,447) (11,149) (4,408) (31,627) (5,429)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment - gas/electric commodity - (8,018) - - (8,018) - Interest received (431) 3,379 184 324 3,456 (169) Net cash provided (used) by investing activities (431) (4,639) 184 324 (4,562) (169) Net increase (decrease) in cash and cash equivalents 8,719 (20,306) 1,048 (7,042) (17,581) 10,100 Balances - beginning of year 50,627 304,409 39,735 31,426 426,197 125,524 Balances - end of the year 59,346$ 284,103$ 40,783$ 24,384$ 408,616$ 135,624$ Nonmajor
Enterprises
Funds
Total
Enterprise
Funds
Internal
Service
Funds
Business - Type Activities
See accompanying notes to basic financial statements
(Continued)
40 Exhibit E-3
CITY OF GLENDALE
Statement of Cash Flows
Proprietary Funds
June 30, 2023
(amounts expressed in thousands)
Sewer
Fund
Electric
Fund
Water
Fund
5250 5810-5880 5910-5980
Nonmajor
Enterprises
Funds
Total
Enterprise
Funds
Internal
Service
Funds
Business - Type Activities
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating Income (loss) 2,288$ 8,424$ 2,532$ (9,707)$ 3,537$ (1,980)$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 3,627 20,402 7,331 2,441 33,801 8,222 Amortization 3,031 35 10 118 3,194 677 Depletion - 681 - - 681 -
Intergovernmental grants received 9 1,786 7 50 1,852 462 (Increase) Decrease Accounts receivable, net 214 4,772 1,436 3,933 10,355 (1,512) (Increase) Decrease Inventories - (1,780) - - (1,780) (211) (Increase) Decrease Prepaid expenses - (20,088) - - (20,088) (1,010) (Increase) Decrease Deferred outflows from OPEB (6) 60 18 (21) 51 - (Increase) Decrease Deferred outflows from pension (1,503) (16,179) (4,206) (4,180) (26,068) - Increase (Decrease) Accrued wages payable 23 196 38 60 317 137 Increase (Decrease) Compensated absences - - - - - 304 Increase (Decrease) Accounts payable 2,498 9,787 563 (470) 12,378 (885) Increase (Decrease) Deposits 110 371 99 (14) 566 - Increase (Decrease) Unearned revenues (52) -
- - (52) -
Increase (Decrease) Claims payable - - - - - 3,598
Increase (Decrease) OPEB liability 170 (374) (99) 559 256 - Increase (Decrease) Deferred inflows from OPEB 28 214 54 90 386 - Increase (Decrease) Deferred inflows from pension (1,745) (18,271) (5,221) (5,301) (30,538) - Increase (Decrease) Deferred inflows from leases - (48) (78) - (126) - Increase (Decrease) Deferred inflows from PPP - - - 122 122 - Increase (Decrease) Net pension liability 3,081 34,391 9,279 9,361 56,112 - Net cash provided (used) by operating activities 11,773 24,379 11,763 (2,959) 44,956 7,802 Reconciliation of Statement of Cash Flows
to Statement of Net Position:
Pooled cash and investments 59,346 85,662 24,188 24,384 193,580 135,624 Cash with fiscal agent - 2,543 5,295 - 7,838 - Designated cash and investments - 151,435 11,300 - 162,735 - Restricted cash and investments - 44,463 - - 44,463 - Cash and cash equivalents at June 30 $ 59,346 $ 284,103 $ 40,783 $ 24,384 $ 408,616 $ 135,624 See accompanying notes to basic financial statements
41 This page is left blank intentionally.
42 PRIVATE-PURPOSE TRUST FUND
8060-8490 – Glendale Successor Agency Private-Purpose Trust Fund - To account for the activities of Glendale Successor Agency.
43 This page is left blank intentionally.
44 Exhibit F-1
CITY OF GLENDALE
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
(amounts expressed in thousands)
Glendale Successor
Agency
Private-Purpose
Trust Fund
8060-8490
Total Custodial
Funds
ASSETS
Cash and investments 35,583 $ 27,594$
Restricted cash and investments 29 -
Interest receivable - 15
Loans receivable 20 -
Capital assets, net - 130
Capital assets, not being depreciated - 2,795
Total assets 35,632 30,534
DEFERRED OUTFLOWS OF RESOURCES
Loss on refunding 250 -
Total assets and deferred outflows of resources 35,882 30,534
LIABILITIES
Accounts payable 9 33
Bonds payable 14,782 -
Interest payable 53 -
Wages and benefits payable 11 -
Total liabilities 14,855 33
NET POSITION
Net investment in capital assets - 2,925
Restricted for:
Glendale Successor Agency 21,027 -
ICI system - 2,022
Regional Housing Trust JPA - 23,005
Unclaimed evidence - 2,549
Total net position 21,027$ 30,501$
See accompanying notes to basic financial statements
45 Exhibit F-2
CITY OF GLENDALE
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year Ended June 30, 2023
(amounts expressed in thousands)
Glendale Successor
Agency
Private-Purpose
Trust Fund
8060-8490
Total Custodial
Funds
ADDITIONS
Revenue from other agencies -$ 23,000$
Charges for services - 2,998
Interest income 1,038 (1)
Property tax 7,971 -
Unclaimed deposits - 968
Total additions 9,009 26,965
DEDUCTIONS
Depreciation - 26
Interest and amortization expense on bonds 476 -
Operating expenses 444 2,773
Escheatment - 23
Refunds - 267
Total deductions 920 3,089
Net increase (decrease) in fiduciary net position 8,089 23,876 Net Position - beginning of the year 12,938 6,625
Net Position - end of the year 21,027$ 30,501$
See accompanying notes to basic financial statements
46 NOTES TO THE
BASIC FINANCIAL STATEMENTS
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
N o t e P
a g e
(1)
Summary of Significant Accounting Policies 48
(2)
Stewardship, Compliance, and Accountability
58 (3)
Cash and Investments
60 (4)
Loans Receivable 68
(5)
Interfund Transactions 70
( 6 ) C a p i t a l A s s e t s 7 1
(7)
Long-Term Debt
73 (8)
Pension Plans
83 (9)
Other Post Employment Benefits Than Pensions (OPEB)
9 3
(10) Net Deficits of Individual Fund s
96 (11) Risk Manage ment
97 (12) Contingent Liabilities and Commitmen ts
98 (13) Jointly Governed Organiza tions 101
(14
) Pronouncements Issued But Not Yet Implemented 107
(15)
Implementation of Pronouncements
107
(16)
Subsequent Events 108
47 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
These financial statements present the financial results of the City of Glendale, California (the City) and its component units as required by generally accepted accounting principles in the United States of America.
Component units are legally separate entities for which the primary government is financially accountable.
The City has two component units: the Glendale Housing Authority (the Housing Authority) and the Glendale Municipal Financing Authority (the Municipal Financing Authority). The City Council serves as the Board of the Housing Authority and the Municipal Financing Authority. Management of the City has operational responsibility for the Housing Authority and the Municipal Financing Authority as these component units are essentially managed in the same manner as other City departments. Also, the Municipal Financing Authority provide financial services entirely to the City. Therefore, these entities are reported as blended component units within the City’s annual comprehensive financial report. Both the City and its blended component units have a June 30 year-end.
Component Units
The Housing Authority was established by the Glendale City Council in 1975. The Housing Authority administers nine affordable housing program funds on behalf of the City, including (1) the Department of Housing and Urban Development (HUD) Housing Assistance Fund (often called “Section 8”), (2) the HUD HOME Grant Fund, (3) the HUD Continuum of Care Grant Fund, (4) the Affordable Housing Trust Fund that receives density bonus, inclusionary and other local affordable housing funds, (5) the state funded BEGIN Affordable Homeownership Fund, (6) the Low and Moderate Income Housing Asset Fund, (7) 2011 TABs Housing Fund, and (8) the Housing Development Impact Fee Fund, and (9) the Permanent Local Housing Allocation Fund. The Housing Authority’s mission is to provide decent, safe, and sanitary dwellings for low to moderate income families, to preserve existing affordable housing, and to increase the supply and quality of new affordable housing. The Housing Authority's financial data and transactions are included within special revenue funds and capital project fund, and no separate financial report is issued for the Authority.
The Municipal Financing Authority was established on April 9, 2019, by a joint powers authority between the City of Glendale and the Housing Authority. The stated purpose was to assist in refinancing the 2000 Variable Rate Demand Certificates of Participation under the Financing Authority. On June 25, 2019, the Municipal Financing Authority issued $24,925 fixed-rate bonds to refinance the 2000 Variable Rate Demand Certificates of Participation.
The Municipal Financing Authority’s financial data and transactions are included within the Police Building 2019 Lease Revenue Refunding Bonds Fund, and no separate financial report is issued for the Municipal Financing Authority.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the City except for the fiduciary fund. The effect of interfund activity has been removed from these statements except for the interfund services provided and used. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services.
The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are clearly identifiable with a specific function. 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, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not included in program revenues are reported as general revenues.
Separate fund financial statements are provided for governmental, proprietary, and the fiduciary funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements.
48 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
The accounts of the City are organized by funds, each of which is considered to be a separate accounting entity.
The operations of each fund are accounted for by providing a separate set of self-balancing accounts which are comprised of its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balance or net position, revenues, and expenditures or expenses, as appropriate. The City reports a total of 75 funds, which are comprised of the General Fund, 4 fiduciary funds, 37 special revenue funds, 1 debt service fund, 11 capital project funds, 6 enterprise funds and 15 internal service funds.
Governmental Fund Types
Governmental fund types are those funds through which most governmental functions typically are financed.
Governmental fund reporting focuses on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used, current liabilities are assigned to the fund from which they are paid, and the difference between governmental fund assets and deferred outflows, and liabilities and deferred inflows is the fund balance.
The following comprise the City's major governmental funds:
General Fund: Used to account for all financial resour ces, except those required to be accounted for in another fund.
Housing Assistance - Special Revenue Fund: Used to account for monies received and expended by the City under Section 8 of the Federal Housing and Urban Development Act for housing assistance to low and moderate income families.
Capital Improvement - Capital Project Fund: Used to account for financial resources used for major capital projects of the general government operations. The City has categorized the capital improvement fund as a major fund for public interest reasons. The City believes that this judgmentally determined major fund is particularly important to the financial statements users.
Other governmental funds consist of debt service funds which are used to account for the accumulation and disbursement of financial resources that will be used to make principal and interest payments on long-term debt of the City of Glendale, special revenue funds which account for revenue derived from specific sources as required by law, regulation or commitment, and capital projects funds which are used to account for financial resources used for the acquisition of major capital facilities other than those financed by special revenue and proprietary funds.
Proprietary Fund Types
Proprietary fund types are used to account for a government's ongoing organizations and activities which are similar to those often found in the private sector.
Enterprise funds are used to finance and account for the acquisition, operation, and maintenance of the City's facilities and services which are supported primarily by user charges. The following comprise the City's major enterprise funds:
Sewer Fund – Used to account for operations and maintenance of the sewer system. This service is primarily contracted with the City of Los Angeles.
Electric Fund – Used to account for the operatio ns of the City-owned electric utility services.
Water Fund – Used to account for the operations of the City-owned water utility services.
49 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Other nonmajor enterprise funds consist of Refuse Disposal, Fiber Optic and Fire Communication Funds. The Refuse Disposal Fund is used for the operations of the City-owned refuse collection and disposal services. The Fiber Optic Fund is used for the design and construction of the City-owned fiber-optic network backbone. The Fire Communication Fund is used for the monies received and expended, for the tri-city (Burbank, Glendale, and Pasadena) fire communication operations as the lead City.
Additionally, Internal service funds account for fleet management, technology and wireless equipment management and replacement, building maintenance, compensated absences, retiree health savings plan, other post-employment benefits, and risk management services (including claims for workers’ compensation, general liability, medical, dental, vision, and unemployment) provided to other departments or agencies of the government, or to other governments on a cost-reimbursement basis.
Fiduciary Fund Type
The fiduciary fund is used to account for resources held for the benefit of parties outside the City. The City maintains two different types of fiduciary funds. Private-purpose trust funds are used to report all fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds and (b) are held in the trust that meets certain criteria. The City uses private-purpose trust fund to account for its Glendale Successor Agency Fund. Custodial funds are used to report fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private-purpose trust funds. The City uses custodial funds to account for its ICI System Fund, Unclaimed Evidence Fund and Regional Housing Trust JPA Fund. Please see detailed fund descriptions in the Custodial Funds section.
Since the resources of the fiduciary fund are not available to support the City’s programs, it is not reflected in the City’s government-wide financial statements. The accounting used for the fiduciary fund is based on the economic measurement focus and the accrual basis of accounting.
In accordance with the provisions of the State of California AB X1 26 (Bill) and the California Supreme Court’s decision to uphold the Bill, the assets and liabilities of the former redevelopment agency are being reported in a Fiduciary Private-Purpose Trust Fund. The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of local government will agree to serve as the “Successor Agency” to hold the assets until they are distributed to other units of state and local government. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and liabilities of the former Redevelopment Agency (Agency) were transferred to the Successor Agency to the City of Glendale Redevelopment Agency on February 1, 2012, as a result of the dissolution of the Agency. The City is acting in a fiduciary capacity for the assets and liabilities.
Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary 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 provider have been met.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
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 after to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are
50 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
collected within 60 days of the end of the current fiscal period. Under the modified accrual basis of accounting, expenditures are generally recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences, other post employment benefits (OPEB), claims and judgments, are recorded only when payment is due.
Intergovernmental revenues are recognized in the period when all eligibility requirements imposed by the provider are met, and amounts are available.
Licenses and permits, fines and forfeitures, and miscellaneous revenues are recorded as revenue when received in cash because they are generally not measurable until actually received. In the category of use of money and property, property rentals are recorded as revenue when received in cash. However, since investment earnings are measurable and available, they are recorded as earned.
All property taxes are collected and allocated by the County of Los Angeles to the various taxing entities. Property taxes are determined annually on January 1st and assessed as enforceable liens on real property as of July 1st.
Taxes are levied on both secured and unsecured property as it exists on record as of January 1 st. The tax levy
covers the fiscal period July 1 to June 30. The secured property taxes are due November 1st and February 1st and are delinquent if not paid by December 10th and April 10th, respectively. Property taxes on the unsecured roll are due upon receipt and become delinquent if unpaid on August 31st. Property tax revenues are recognized in the fiscal period for which they are levied and collected.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds’ principal ongoing operations. The principal operating revenues of the City's enterprise and internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Fund Balance or Net Position
Pooled Cash and Investments
The City combines the cash and investments of all funds into a pool except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Each fund’s portion of the pooled cash and investments is displayed on the governmental funds’ balance sheets, the proprietary funds’ statement of net position, or the fiduciary fund’s statement of net position.
The City values its cash and investments at fair value in the statement of net position and recognizes the corresponding change in the fair value of investments in the year in which the change occurred. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: 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.
The City manages its pooled idle cash and investments under a formal investment policy that is reviewed by the Investment Committee, adopted by the City Council and follows the guidelines of the State of California Government Code. Individual investments cannot be identified with any single fund because the City may be required to liquidate its investments at any time to cover large outlays required more than normal operating needs.
Interest income from the pooled cash and investments is allocated to all applicable funds on a monthly basis based upon the prior month-end cash balance of the fund and as a percentage of the month-end total pooled cash balance.
51 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
For purposes of the statement of cash flow of the proprietary fund types, cash and cash equivalents include all pooled cash and investments, restricted cash, designated cash, and cash with fiscal agents with an original maturity of three months or less. The City considers the cash and investments pool to be a demand deposit account where funds may be withdrawn and deposited at any time without prior notice or penalty.
Cash and Investments with Fiscal Agents
The City hired Bank of New York Mellon as its trustee or fiscal agent to oversee the implementation of a bond or trust indenture for the Glendale Municipal Financing Authority 2019 Lease Revenue Bonds, Electric Revenue Bonds and Water Revenue Bonds.
Investment-gas/electric commodity
As of June 30, 2023, the City holds $8,018 of investment that involves simultaneous purchase and sell of physical California Carbon Allowances (CCAs) through an exchange traded platform that removes the majority of credit and financial risk from counterparties. The City purchases and holds the CCAs for a period of time and earn a fixed rate of return, and this derivative instrument is considered an investment and not hedging for accounting purposes.
Restricted Cash and Investments
Governmental Activities have $96,534 in restricted cash and investments as of June 30, 2023. $37,030 in the General Fund is for investments in the pension rate stabilization program that is invested in an Internal Revenue Code Section 115 Trust Fund. $59,504 in the Landfill Postclosure capital project fund is for the post-closure maintenance cost of Scholl Canyon landfill.
Electric Fund has $44,463 in restricted cash and investments as of June 30, 2023. $5,669 is for the environmental compliance mandated by South Coast Air Quality Management District (SCAQMD) dedicated to the reduction of emission of nitrogen oxides for the utility boilers/gas turbines. $37,160 is for the environmental compliance mandated by the California Air Resources Board (CARB) dedicated to the reduction of carbon emissions and provide educational programs for the improvement of public health in Glendale. $1,634 is for low carbon fuel standard program offered by the California Air Resources Board (CARB) to reduce the carbon intensity of transportation fuels used in California and provide local EV programs, including education, outreach, installation of public EV charging infrastructure and EV rebate programs.
Designated Cash and Investments
The cash reserve policies for the Electric Fund and Water Fund were adopted by the City Council in 2003 and subsequently revised in 2006 to ensure long-term sustainable financial health for electric and water operations.
Its provisions call for an annual review of the cash reserves to determine if the recommended levels are sufficient.
The currently approved cash reserve levels are $124,100 for the Electric Fund and $11,300 for the Water Fund as adopted by the City Council on August 29, 2006. As of June 30, 2023, $124,100 was designated for the Electric Fund in the following categories: $57,700 for operating reserve, $40,400 for contingency reserve; $10,000 for rate stabilization reserve, and $16,000 for gas reserve project. As of June 30, 2023, $11,300 was designated for the Water Fund in the following categories: $3,800 for operating reserve, $6,500 for contingency reserve, and $1,000 for rate stabilization reserve. As part of the Electric and Water cost of service and rate studies conducted in FY 2017-18, the consultants determined the existing cash reserve funding levels are sufficient in the five-year rate plan effective on July 1, 2018. GWP management also reviews the funding level annually and determined that the reserve levels are sufficient for FY 2022-23.
52 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
As of June 30, 2023, the City has designated cash and investments of $8,032 with Southern California Public Power Authority (SCPPA) for future use in power purchase projects. As of June 30, 2023, the City has designated cash deposits of $19,303 with ADM Investor Services, Inc. for physical and financial transactions (exchange traded) to help offset and manage overall exposure to price fluctuations in power, gas, and emission commodities, which represents the City’s implementation of a program to purchase and sell options, calls and puts, in natural gas futures contracts and power and emission commodities at strike prices and allow the City to stabilize the ultimate price of natural gas and emission commodities for the City’s power plant.
Receivables
Interest Receivable – The City accrues interest earned but not received.
Accounts Receivable – These are comprised primarily of revenues that have been earned but not yet received by the City as of June 30th from individual customers, private entities, and government agencies. This account includes accrued revenues due from other agencies for expenditure driven types of grants whereby the City accrues grant revenues for expenditures or expenses incurred but not yet reimbursed by the grantors. Also, included in this amount are property taxes, sales taxes, to name a few, are earned but not received as of June 30th of each year.
In addition, it includes charges for utility and other services provided to customers prior to year-end but not billed as of June 30th because of the billing cycle timing. Management determines the allowance for doubtful accounts by evaluating individual customer accounts. Utility customer closed accounts are written off when deemed uncollectible.
Recoveries to utility customer receivables previously written off are recorded when received. For non-utility accounts receivable, delinquent notices are sent out to customers with outstanding balances after 30 days. Outstanding accounts over 60 days are forwarded to a collection agency.
Loans Receivable – The City has loans receivable from the various Glendale residents and organizations for affordable housing assistance. The Glendale Successor Agency has one loans receivable from Glendale Unified School District. See Note 4 for more information.
Lease Receivable – The City measures lease receivable at the present value of lease payments expected to be received during the lease term. Interest revenue is recognized ratably over the contract term.
PPP (Public-Private and Public-Public Partnership) Receivable – The City measures PPP receivable at the present value of the installment payments expected to be received during the PPP term. Interest revenue is recognized ratably over the contract term.
Interfund Transactions
Interfund services provided and used would be treated as revenues and expenditures or expenses if the funds are involved. External organizations to the City’s government are accounted for as revenues, referred to as seller funds, and expenditures or expenses, referred to as purchaser funds, in the funds involved. For the fiscal year ended June 30, 2023, the General Fund recorded $18,675 as interfund revenue for general government services provided to other funds.
Due to/from Other Funds are used when a fund has a temporary cash overdraft. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
Transfers in or out are authorized budgetary exchanges of cash between funds.
Inventories and Prepaid Items
Inventories, consisting primarily of construction and maintenance materials as well as tools held by the Electric Fund, are stated at cost, using the weighted average cost method or disposal value. Inventory shown in the General Fund and the Fleet/Equipment Management Fund consists of expendable supplies held for consumption. The consumption method of accounting is used where inventory acquisitions are recorded in inventory accounts initially
53 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
and charged as expenditures when used. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements using the consumption method, such as insurance, energy purchases, rent, etc.
Capital Assets
Capital assets including land, buildings, improvements, mobile equipment, equipment, intangible, and infrastructure assets (e.g. roads, sidewalks, traffic lights and signals, street lights, etc.), are reported in the applicable governmental or business-type activities columns in the government-wide and respective proprietary fund financial statements.
Capital assets are defined by the City as assets with an initial, individual cost of $10 or $100 in aggregate and an estimated useful life 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. Capital outlay is recorded as expenditures of the General Fund, special revenue and capital project funds, and as assets in the government-wide financial statements to the extent the City’s capitalization is met. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Building and improvements, infrastructure and equipment assets are depreciated using the straight-line depreciation at the beginning of the following fiscal year over the following estimated useful lives:
Capital Assets Years
Building and Improvements
General Structure and Parking Lot Landscaping Improvements 10 Building and Parking Lot Improvements 20
Land Improvements 30
Buildings, Parks and Wastewater Capacity Upgrades 40
Transmission-Off System 50
Reservoir 65
Local Sewer System 80
Machinery and Equipment
Copier, Computer Systems 3-5
Police Patrol Cars 3-4
SUV, Motorcycles, Passenger Cars 3-8
Trucks, Cargo Vans, Street Sweepers 6-10
Dump/Tractor Trucks 10-12
Helicopters 20
Trailer Trucks/Emergency Response Engines 10-20
Intangible
Wastewater Treatment Plan and Conv eyance System Facilities 40 Computer Software 2-8
Infrastructure (non-sewer)
Traffic Signals 15
Potable-Services 20
Supply-Mains and Wells 25
Supply-Structure Improvements 30
Supply-Springs, Tunnels, and Potable-Hydrants 40
Streets, Paved Streets, Paved Alleys and Sidewalks 50
Potable-Mains 75
54 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
In June 2005, the City elected to participate in the Natural Gas Reserve Project through SCPPA and entered into a 25-year Gas Sales Agreement with SCPPA for up to 2,000 MMBtu per day. The project calls for the acquisition and development of gas resources, reserves, fields, wells, and related facilities to provide a long-term supply of natural gas for its participants. The first acquisition was completed on July 1, 2005, with the total cost to the participants at $306,100. The City’s initial share in the project was $13,178 or 4.26%. Subsequently, capital drilling costs of $8,997 had been capitalized. As of June 30, 2023, the balance for Natural Gas Reserve Project, net of accumulated natural gas depletion was $7,013.
Lease assets represent the City’s control of the right to use an underlying asset for the lease term, as specified in the contract, in an exchange or exchange-like transaction. Lease assets, which include land, structures, mobile equipment, and equipment, follow the same capitalization threshold of $10 as capital assets. Lease assets are reported in the applicable governmental and business-type activities columns in the government-wide and respective proprietary fund financial statements. Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentive received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease asset into service. Lease assets are amortized using a straight-line amortization over the shorter of the lease term or useful life of the underlying asset.
SBITA (Subscription-Based Information Technology Arrangements) assets represent the City’s control of the right to use another party’s Information technology software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction. SBITA assets, follow the same capitalization threshold of $10 as capital assets. SBITA assets are reported in the applicable governmental and business-type activities columns in the government-wide and respective proprietary fund financial statements.
SBITA assets are recorded at the amount of the initial measurement of the SBITA liabilities and modified by any SBITA payments made to the SBITA vendor at or before the commencement of the SBITA term, less any SBITA incentive received from the SBITA vendor at or before the commencement of the SBITA term along with any initial direct costs that are ancillary charges necessary to place the SBITA asset into service. SBITA assets are amortized using a straight-line amortization over the shorter of term of the arrangement or useful life of the underlying asset.
Long-term Debt
In the government-wide financial statements and the proprietary fund types in the fund financial statements, long- term debt, and other obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary and fiduciary fund statements of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred. In the governmental funds’ statement of revenues, expenditures and changes in fund balances, issuance of debt is recorded as other financing source or use in the respective fund. Issuance costs and payment of principal are reported as debt service expenditures.
Lease Payable
Lease payable represents the City’s obligation to make lease payments arising from the lease. Lease payable is recognized at the commencement date based on the present value of expected lease payments over the lease term, less any lease incentives. Interest expense is recognized ratably over the contract term.
Subscription Payable
Subscription payable represents the City’s obligation to make subscription payments arising from subscription-based information technology arrangements (SBITA). Subscriptions payable is recognized at the commencement date based on present value of expected SBITA payments over the SBITA term, less any SBITA incentives. Interest expense is recognized ratably over the contract term.
55 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Pension
For purposes of measuring the net pension liability and deferred outflows or inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plan’s) and additions to or deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments, including refunds of employee contributions, are recognized when due and payable by the benefit terms.
Investments are reported at fair value. All pensions are liquidated out of each respective funds that the payroll time was allocated to during that payroll period. Pension liabilities are liquidated from the related employees’ home programs, with the majority funded out of the General Fund and the Electric Fund. See Note 8 for more information.
Compensated Absences
The total compensated absences liability for the City is $32,426 which is comprised of liabilities from two internal service funds: Employee Benefits Fund and Retiree Health Savings Plan Benefits Fund.
The City records the expense and liability for its employees’ earned but unused accumulated vacation and overtime in the Employee Benefits Fund. As of June 30, 2023, the liability is $19,075, and the City has $16,908 available in cash dedicated to this liability in the fund.
The City also provides sick leave conversion benefits through the Retiree Health Savings Plan (RHSP).
Employees’ unused sick leave hours can be converted to a dollar amount and deposited in the employees’ RHSP account at retirement or termination with 15 or 20 years of City service, based on the memoranda of understanding agreements between the City and the unions. The account is used to pay healthcare insurance premiums and eligible medical expenses for the retiree and dependents. The sick leave conversion rates range from $0.025 to $0.033 for each hour of sick leave balance, based on the memoranda of understanding agreements between the City and the unions. The sick leave conversions related expense and liability are recorded in the Retiree Health Savings Plan Benefits Fund. As of June 30, 2023, the actuarial accrued liability is $13,351, and the City has $15,170 available in cash dedicated to this liability in the Fund. The actuarial accrued liability of June 30, 2023 is estimated based on most recent actuarial valuation report as of June 30, 2021, adjusted for actual benefit payments made in FY 2021-22 and FY2022-23, assuming no gains/losses and no changes in methods or assumptions.
Changes in the City’s compensated absences liability as of June 30, 2023 were as follows:
Compensated absences are primarily liquidated by the respective internal service funds.
Other Post Employment Benefits (OPEB)
The City’s defined benefit OPEB plan, City of Glendale Retiree Benefits Plan (Plan), provides OPEB for all permanent full-time general and public safety employees of the City. The Plan is a single-employer defined benefit OPEB plan administered by the City and governed by the City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. The General Fund, Electric Fund and Water Fund are generally used to liquidate the OPEB liability.
See Note 9 for more information.
Unearned Revenue
The unearned revenue liability reports amounts are received in advance of providing goods or services. When the goods or services are provided, this account balance is reduced, and revenue is recognized.
Balance
at June 30,
2022
Benefits
earned
Usage
Balance
at June 30,
2023
Due within
One Year
$ 32,002 6,827 6,403 32,426 3,132
56 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Property Held for Resale
Land and buildings acquired for future sale to developers have been capitalized and are shown as real property held for resale in the accompanying financial statements. Property held for resale is carried at the lower of cost or net realizable value (realizable value less cost to sell).
Fund Balance
Fund balance classifications for governmental fund types comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. In the fund financial statements, the governmental funds may report nonspendable, restricted, committed, assigned, and unassigned fund balances to show the level of constraint governing the use of the funds.
Nonspendable fund balances cannot be spent because t hey are in a nonspendable form, or are required to be maintained intact.
Restricted fund balances are restricted for specific purposes by third parties or enabling legislation.
Committed fund balances include amounts that can be used only for specific purposes determined by the formal action through a resolution of the City Council, as they are the highest level of decision-making authority. Council must have at least a 3 to 2 vote to pass a resolution for the specific purpose. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment.
Assigned fund balances comprise amounts intended to be used by the City for specific purposes but are not restricted or committed. The City Council, in the City’s most recently adopted budget resolutions, has delegated the authority to assign fund balances to the City Manager or his/her designee. The financial policies of the City are also updated to reflect this delegation of authority.
Unassigned fund balances are residual positive net re sources of the General Fund in excess of what can properly be classified in one of the other four categories and include all deficit amounts in all other governmental funds.
When both restricted and unrestricted resources are available for an incurred expenditure, it is the City's policy to spend restricted resources first then unrestricted resources as necessary. When unrestricted resources are available for incurred expenditures, it is the City's policy to use committed amounts first, followed by assigned amounts, and then unassigned amounts.
Net Position
The net position represents the difference between assets and deferred outflows of resources, and liabilities and deferred inflows of resources. Net investment in capital assets, consists of capital assets, net of accumulated depreciation and amortization, reduced by non-debt capital related liabilities, added or reduced any deferred outflows/inflows of resources that is capital debt related, and reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets, excluding unspent debt proceeds. The net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation externally adopted by the citizens of the City or through external restrictions imposed by creditors, grantors, or laws and regulations of other governments.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then the unrestricted resources as they are needed.
The government-wide statement reports $1,317,113 of net investment in capital assets, $322,049 of restricted net position, and $152,881 of unrestricted net position.
57 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Deferred Outflows and Inflows of Resources
In addition to assets, the statements of net position report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources or expenses until then. For current or advance refunding resulting in defeasance of debt, when the difference between the reacquisition price and the net carrying amount of the old debts (i.e., deferred charges) resulted in a loss, it is reported as a deferred outflow of resources and amortized to interest expense based on the straight line method over the remaining life of the old debt or the life of the new debt, whichever is shorter. When the City makes the pension contributions and OPEB payments after the measurement date, the City reports deferred outflows of resources. When there is an increase in pension and OPEB expenses arising from the recognition of changes in assumptions, differences between expected and actual experience, and difference between projected and actual earnings on pension plan investments, the City reports a deferred outflow of resources until the increase is recognized in expense. The City’s deferred outflows of resources as of June 30, 2023 is $215,795, which consists of $3,391 loss on refunding, $209,579 related to pensions, and $2,825 related to OPEB.
In addition to liabilities, the statement of net position and the governmental fund financial statements report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period and will not be recognized as an inflow of resources or revenues until then. For current or advance refunding resulting in defeasance of debt, when the difference between the reacquisition price and the net carrying amount of the old debts (i.e., deferred charges) resulted in a gain, it is reported as a deferred inflow of resources and amortized to interest expense based on the straight line method over the remaining life of the old debt or the life of the new debt, whichever is shorter. When there is a decrease in pension and OPEB expense arising from the recognition of changes in assumptions and differences between expected and actual experience, the City reports a deferred inflow of resources until the decrease is recognized in expense. For leases that the City is the lessor, the amount of the initial measurement of the lease receivable is reported as a deferred inflow of resources, and amortized to lease revenue based on the straight line method over the lease term. For PPP that the City is the transferor, the amount of the initial measurement of the PPP receivable is reported as a deferred inflow of resources, and amortized to PPP revenue based on the straight line method over the PPP term. In the government-wide statement of net position, the City’s deferred inflows of resources as of June 30, 2023 is $63,591, which consists of $795 gain on refunding, $19,400 related to pensions, $6,134 related to OPEB, $35,007 related to leases, and $2,255 to PPP. When a receivable is recorded in governmental fund financial statements but the revenue is not received within the availability period, the City reports a deferred inflow of resources until the revenue becomes available. The City has recorded deferred inflows of resources – unavailable revenues of $57 in the General Fund, $78 in the Housing Assistance Fund, and $22,596 in the nonmajor governmental funds.
NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Budgets and Budgetary Accounting
The City Council is required to adopt an annual budget for the general, debt service, special revenue, enterprise, and internal service fund types. The City Council also annually adopts the capital improvement program for the capital projects funds. While the capital improvement program is planned on a ten-year basis, the City Council only approves and authorizes the budget for one year of the Capital Improvement Projects. The unspent capital improvement projects in the prior years’ budget are carried forward into the new fiscal year. Therefore, an annual budget comparison on multi-year projects is impractical.
All proprietary fund types are accounted for on a cost of service method (net income); therefore, budget comparisons are impractical. Also, the City is not legally mandated to report the results of operations for these enterprise and internal service fund types on a budget comparison basis, and so budgetary data related to these funds have not been presented.
58 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
The City utilizes an “encumbrance accounting system,” which is used to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. Encumbrances outstanding at year-end do not constitute expenditures or liabilities, and appropriations in the General Fund lapse at the end of the year. Therefore, encumbrances are not reserved for commitments made, and year-end budget carryovers may be submitted for the remaining encumbrances. All commitments incurred will be paid with the new fiscal year’s budget and all approved budget carryovers from the prior fiscal year, including capital project appropriation carry overs.
The City, in establishing the budgetary data reflected in the basic financial statements and supplementary information, utilizes the following procedures:
The City Charter requires that the City Manager su bmits to the City Council a proposed budget for the coming year on or before June 1st. The operating budget includes both the sources and types of funds for the proposed expenditures.
In June, a public hearing is conducted to obtain citizen input, with the final budget being adopted on the same night as the public hearing or during a later date prior to July 1st.
The budget is revised during the fiscal year to reflect all Council approved transfers and amendments.
The level of appropriated budgetary control is at t he fund level except for the General Fund, and any department shared project funds, which are controlled at the department level. Within each department or fund budget, the appropriation is further distributed across different categories such as, salary and fringe benefits, maintenance and operation, and capital outlay. There is no limit as to how much can be shifted between categories administratively as long as the total appropriation does not exceed the Council approved budget for each Fund.
The following fund over expended its appropriation as of June 30, 2023:
Fund
Amounts Over Expended
General Fund Transfers Out $ 106
Supplemental Law Enforcement Fund 22
In FY 2022-23, 2% of the actual sales tax received in General Fund was transferred to Capital Improvement Fund.
The actual sales tax received was higher than budgeted, so the actual transfer out was also higher than budgeted.
In FY 2022-23, increase in police activities for the Citiz en’s Option for Public Safety (COPS) program contributed to the actuals being than higher than budgeted.
The General Fund Debt Service category related to leases and subscriptions have no budget, because budgets for the lease and subscriptions payments are appropriated at department level. Due to implementation of GASB 87 – Leases, and GASB 96 – Subscription-Based Information Technology Arrangements, the lease and subscription payments are reversed, and the principal and interest related to the leases and subscriptions are recorded at the debt service category.
59 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 3 – CASH AND INVESTMENTS
The City’s cash and investments as of June 30, 2023 consist of the following:
Governmental and business-type activities:
Investments $ 1,003,693
Investment-gas/electric commodity 8,018
Cash and investments with fiscal agents 10,236
1,021,947
Petty cash 13
Cash held in financial institutions 94,674
Total $ 1,116,634
The following amounts are reflected in the government-wide statement of net position:
Pooled cash and investments $ 794,648
Cash and investments with fiscal a
gents 10,236
Investment-gas/electric commodity 8,018
Restricted cash and investments 140,997
Desi
gnated cash and investments 162,735
Total $ 1,116,634
Fiduciary activities:
Cash and investments
$ 40,201
Cash held in financial institutions 23,005
Total $ 63,206
The following amounts are reflected in the fiduciary statement of net position:
Cash and investments
$ 63,177
Restricted cash and investments 29
Total $ 63,206
60 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Authorized Investments
Allowable investments for the portfolio of the City of Glendale are limited by California State Government Code Sections 53600 et seq. They are further restricted by the City Treasurer’s investment strategy. Percentages of Investment Participation and percentages of Maximum Participation apply at the time of purchase. Purchase transactions may not exceed $10,000, nor exceed five-year maturities. Exceptions can only be approved by the City Council. The City Treasurer may invest or deposit in the following types of investments:
Maximum
Maturit
y
Maximum
Investment
Participation
Maximum
Investment
Exposure
U.S. Treasury Notes 5 years 100% None
Federal Agencies Securities 5 years 100% None
State of California and California Local Agencies N/ A 15% 5% per issuer Obligation of Other States N/A 10% 5% per issuer
Medium Term Notes 5 years 30% 5% per issuer
Commercial Paper (A1, P1, F1 min. rating) 270 da ys 25% None Bankers’ Acceptances (A1, P1, F1 min. rating) 180 da ys 30% 10% per bank Time Deposits (FDIC Insured) 1 year 10% 5% per issuer Negotiable Certificates of Deposit (A1, P1, F1
min. ratin
g)
1 year 30% 5% per issuer
Local Agency Investment Fund (State Pool) N/A LAIF maximum ($75,000 per
account)
None
Money Market Mutual Funds 90 days 20% None
Los Angeles County Treasury Pool N/A 10% None
Investments Authorized by Debt Agreements
The provisions of debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy, govern investments of debt proceeds and reserve funds held by fiscal bond agents.
Permitted investments are specified in related trust agreements.
No maximum percentage of the related debt issue or maximum investment in one issuer is specified.
Interest Rate Risk
Interest rate risk is the risk that fluctuations in market rates may adversely affect the fair value of an investment.
The longer the maturity of an investment, the greater the sensitivity of its fair value to the changes in market interest rates. The City manages its exposure to interest rate risk by purchasing a combination of shorter term and longer term investments, and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
61 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Governmental and business-type activities:
Remaining Maturity (in Months) as of June 30, 2023
Total
12 Months
or Less
13 to 24
Months
25 to 60
Months
More than
60 Months
Federal Agency Term Notes $ 133,979 43,584 32,574 57,821 - Federal Agency Callable Bonds 255,398 4,860 24,042 226,496 - Commercial Paper 9,922 9,922 - - -
Medium Term Notes 168,142 34,879 14,904 118,359 -
Obligations of Other States 84,827 21,531 5,058 58,238 - State and Municipal Bonds 64,501 13,007 20,971 30,523 - State Investment Pool 73,213 73,213 - - -
Los Angeles County Pool 32,600 32,600 - - -
U.S. Treasury Notes 136,049 57,452 28,285 50,312 -
Investment Derivative Instrument 8,018 8,018 - - -
Held by Other Financial Institutions:
Federal Agency Term Notes 6,485 6,485 - - -
U.S. Treasury Notes 994 994 - - -
Money Market Accounts 553 553 - - -
Section 115 Trust Fund:
Money Market Accounts 1,757 1,757 - - -
Money Market Mutual Funds 35,273 35,273 - - -
Held by Fiscal Agents:
Mone y Market Accounts 7,838 7,838 - - -
Guaranteed Investment
Contracts 2,398
- - - 2,398
$ 1,021,947 351,966 125,834 541,749 2,398
Fiduciary activities:
Remaining Maturity
(in months)
as of June 30, 2023
Total 12 Months or Less
State Investment Pool $ 29,540 29,540
Money Market Accounts 10,661 10,661
$ 40,201 40,201
Credit Risks
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City purchases investments only in the most risk-adverse instruments, such as Aaa rated government securities, Aaa, Aa or A-rated corporate securities, A1, P1, F1 rated commercial paper, negotiable certificates of deposit, and banker’s acceptance securities. Investments in State of California and California Local Agencies must be rated “A” or better by a nationally recognized rating service. The City’s Investment Policy requires the City to sell medium-term notes with a credit rating below S&P’s and Fitch’s BBB grade or Moody’s Baa2 unless the City Council approves the City Treasurer’s recommendation that the security should be retained.
62 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Governmental and business-type activities:
Moody’s Rating as of June 30, 2023
Total A1 Aa1 Aa2 Aa3 Aaa P1 Unrated
Federal Agency Term Notes $ 133,979 - - - - 124,167 - 9,812 Federal Agency Callable Bonds 255,398 - - - - 246,382 - 9,016 Commercial Paper 9,922 - - - - - 9,922 -
Medium Term Notes 168,142 4,974 9,853 26,477 20,908 105,930 - - Obligations of Other States 84,8 27 - 27,835 30,011 - 19,688 - 7,293 State and Municipal Bonds 64,501 - 9,373 31,255 11,704 4,440 - 7,729 State Investment Pool 73,213 - - - - - - 73,213
Los Angeles County Pool 32,600 - - - - - - 32,600
U.S. Treasury Notes 136,049 - - - - 96,107 - 39,942
Investment Derivative Instrument 8,018 - - - - - - 8,018 Held by Other Financial Institutions:
Federal Agency Term Notes 6,485 - - - - 6,485 - -
U.S. Treasury Notes 994 - - - - - - 994
Money Market Accounts 553 - - - - - - 553
Section 115 Trust Fund:
Money Market Accounts 1,757 - - - - - - 1,757
Money Market Mutual Funds 35,273 - - - - - - 35,273
Held by Fiscal Agents:
Money Market Accounts 7,838 - - - - 7,838 - -
Guaranteed Investment Contracts 2,398 - - - - - - 2,398 $ 1,021,947 4,974 47,061 87, 743 32,612 611,037 9,922 228,598
Fiduciary activities:
Moody’s Rating
as of June 30, 2023
Total Unrated
State Investment Pool $ 29,540 29,540
Money Market Accounts 10,661 10,661
$ 40,201 40,201
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City’s investment in a single issuer.
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stated in the Authorized Investments.
63 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Investments in any one issuer (other than U.S. Treasury notes, mutual funds, and external investment pools) that represent 5% or more of total City investments at June 30, 2023 are as follows:
Governmental and business-type activities:
Issuer
Investment Type
Reported
Amount
FHLB Federal Agency Callable Bonds $ 255,398
Federal Agency Term Notes 124,532
Total $ 379,930
Custodial Credit Risk
Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, a government agency will not be able to recover its deposits or will not be able to recover investment securities that are in possession of an outside party. All of a depositor’s accounts at an insured depository institution, including non- interest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount of $250 for each deposit insurance ownership category. The amounts of deposits are collateralized under California law. The Code requires that a financial institution secures deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law unless waived by the governmental unit.
The custodial risk for investments is also twofold. An investment trade transaction occurs between a government agency and counterparty, such as a broker or a dealer. Counterparty risk is the risk that in the event of the failure of a brokerage or dealer to deliver securities after government agency has made payment. The City of Glendale prevents counterparty risk by requiring all trade transactions to be done on a delivery versus payment arrangement.
A government agency uses an independent third-party custodian or safe-keeper to domicile the securities in its portfolio. The City of Glendale uses Bank of America as its third-party safekeeping servicer, and prevents custodial or safekeeping risk by having all securities purchased and owned by the City of Glendale registered in the name of the City, separated from other client securities portfolios, and segregated from securities owned by the bank.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investment in this pool is reported in the accompanying financial statements at fair value based upon the City’s pro- rata share of the amortized cost basis provided by LAIF for the entire LAIF portfolio, in relation to the amortized cost of that portfolio. The balance available for withdrawal is based on the accounting records maintained by LAIF. LAIF is not registered with the Securities and Exchange Commission (SEC) and is not rated.
Investment in Los Angeles County Pool
The City is a voluntary participant in the Los Angeles County Pooled Investment Fund (LACPIF) that is regulated by California Government Code Section 27136 and managed by the Los Angeles County Treasurer. The City’s investment in this Pool is reported in the accompanying financial statements of net position and prepared using the accrual basis of accounting. Investments are reported at fair value. The cash flow needs of the participants are monitored daily to ensure that sufficient liquidity is maintained to meet the needs of participants. The balance available for withdrawal is based on the accounting records maintained by LACPIF. LACPIF is not registered with the Securities and Exchange Commission (SEC) and is not rated.
64 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Investment in Internal Revenue Code Section 115 Trust Fund
The City reviewed the City’s obligation to fund the pension obligations and determined that it served the City’s interests to prefund those benefits. In July 2017, the City Council approved and adopted the funding for a Pension Rate Stabilization Program IRC Section 115 Trust for $26,500. In December 2019, the City Council approved and adopted an additional funding of $5,500 into the Pension Rate Stabilization Program Trust Fund account held at U.S.
Bank. In May 2021, the City combined the initial and additional funding in the same account with moderate allocation investment strategy. The Pension Stabilization Trust is a tax-qualified irrevocable trust, organized under Internal Revenue Code (IRC) Section 115, established to pre-fund pension obligations. The Plan Discretionary Trustee is U.S. Bank and U.S. Bank has delegated investment management responsibilities to High Mark Capital Management, and Public Agencies Retirement Services (PARS) is the Trust Administrator. As of June 30, 2023, the City elected the Moderate investment approach with a blended investment objective strategy and the asset target allocations for this objective was 5% cash source, 48% equity and 47% fixed income.
The City’s Section 115 trust fund account is reported as restricted assets and fund balance in the General Fund. The value of the trust as of June 30, 2023, was $37,030 of which all was placed in cash, money market and money market mutual fund accounts.
Fair Value Measurement
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.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access.
Level 2 – Inputs to the valuation methodology include:
• Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City's own data.
The asset's level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the City's management. City management considers observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management's perceived risk of that investment.
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
65 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Deposits and withdrawals in governmental investment pools, such as LAIF and LACPIF are made on the basis of $1 and not fair value. Accordingly, the City’s proportionate share in these types of investments is an uncategorized input not defined as a Level 1, Level 2, or Level 3 input.
The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. There have been no changes in the methods and assumptions used at June 30, 2023. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. City management believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The City’s treasury pools asset market prices are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated fair value.
Prices that fall between data points are interpolated. Non-negotiable FDIC-insured bank certificates of deposit are priced at par.
For investments classified within Level 2 of the fair value hierarchy, the City's custodians generally use a multi- dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others.
The City does not have any investments that are measured using Level 1 and Level 3 inputs.
66 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
As of June 30, 2023, the City has the following fair value measurements:
Governmental and business-type activities:
Fair Value Measurements
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by fair value level:
Federal A gency Term Notes $ 133,979 - 133,979 -
Federal A gency Callable Bonds 255,398 - 255,398 -
Commercial Paper 9,922 - 9,922 -
Medium Term Notes 168,142 - 168,142 -
Obli gations of Other States 84,827 - 84,827 -
State and Municipal Bonds 64,501 - 64,501 -
U.S. Treasur y Notes 136,049 - 136,049 -
Investment Derivative Instrumen t 8,018 - 8,018 -
Held b y Other Financial Institutions:
Federal Agency Term Notes 6,485 - 6,485 -
U.S Treasur y Notes 994 - 994 -
Section 115 Trust Fund:
Mone y Market Mutual Funds 35,273 - 35,273 -
Total investments b y fair value level 903,588 - 903,588 -
Investments not subject to fair value
hierarch
y:
State Investment Pool 73,213
Los An geles County Pool 32,600
Held b y Other Financial Institutions:
Mone y Market Accounts 553
Section 115 Trust Fund:
Mone y Market Accounts 1,757
Held b y Fiscal Agents:
Mone y Market Accounts 7,838
Guaranteed Investment Contracts 2,398
Total investments not subject to fair
value hierarchy 118,359
$ 1,021,947
67 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Fiduciary activities:
Fair Value Measurements
Total
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Investments by fair value level:
Money Market Mutual Funds $ 10,661 - 10,661 -
Total investments by fair value level 10,661 - 10,661 -
Investments not subject to fair value
hierarchy:
State Investment Pool 29,540
Total investments not subject to
fair value hierarchy 29,540
$ 40,201
NOTE 4 – LOANS RECEIVABLE
Due from Glendale Unified School District – Glendale Successor Agency Private-Purpose Trust Fund
In November 2003, under the provisions of SB 211, the Successor Agency extended the time limit to incur debt for the Central Glendale Project Area. Due to this extension, under state law, the Glendale Unified School District (GUSD) is entitled to receive a portion of the Central Project Area tax increment. As a means to fund an artificial turf/all-weather track renovation project for Moyse Field at Glendale High School, a proposal was made to loan the GUSD the net present value of their share of the Central Project Area tax increment, or approximately $1,800. The increment that would have otherwise gone to the GUSD. As of June 30, 2023, the outstanding loan total is $20.
Housing Loans Receivable
The Housing Authority has offered various housing loans to the residents of the City to create and maintain affordable housing for low and moderate income households. Four different types of housing loans are currently or were formerly funded from Community Development Block Grant (CDBG grant), HOME grant, Low and Moderate Income Housing Asset Fund (LMIHA) program income, and Building Equity and Growth in Neighborhoods Grant (BEGIN grant) funds. Certain Housing Authority loans will be forgiven or restructured when all requirements are met.
Because of the uncertainty of collectability, the City has established a policy not to record forgivable loans on the financial statements. The non-forgivable loans are recorded on the financial statements.
• Single Family Home Rehabilitation Loan
The program was funded by the CDBG grant, HOME grant, and LMIHA. It provided funds for moderate rehabilitation of owner-occupied homes for low and moderate income households. The deferred payment loan is interest-bearing with simple interest rates ranging from 0% to 4% annually for up to 10 years, and with a loan amount up to $25. Generally, the loan is repaid at the time of sale or transfer of the property and is secured by a deed of trust on the property. This program was eliminated in February 2012; however, there are existing loans receivable. As of June 30, 2023, $1,040 is outstanding and recorded as loans receivable: $96 is recorded in the CDBG Fund, $172 is recorded in the Home Grant Fund, and $772 is recorded in the Low & Moderate Income Housing Asset Fund.
68 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
• First Time Home Buyer Loan
The program is funded by the HOME grant, LMIHA, and BEGIN grant, and has two categories.
Down Payment Assistance – Resale Homes Purchase. The program provided funds for down payment and affordability gap assistance for the purchase of a resale home by a low or moderate income first time home buyer household. Loan terms varied from 30 to 45 years and required either a 5% simple annual interest rate paid monthly, or a 0% simple annual interest rate with no monthly payments. All loans are second mortgage deferred payment and forgivable up to $75. If the property is sold, transferred, or no longer owner-occupied before the term expires, the borrower must repay the original principal amount plus an appreciation share. This program was eliminated in February 2012; however, there are existing loans receivable. As of June 30, 2023, the forgivable loan amount of $2,846 is outstanding, and is not recorded in the financial statements. As of June 30, 2023, the non- forgivable amount is $0.
Down Payment Assistance – New Construction Homes Purchase. For new construction units, the amount of the loan is based on the amount of the affordability gap. The loan is secured by a deed of trust on the property and affordable housing covenants. Loans fall into two types. One type is the deferred payment forgivable loan with a loan term of 30 to 45 years; the loan is forgiven at the end of the loan term. If the property is sold, transferred, or no longer owner-occupied before the term expires, the borrower must repay the original principal amount plus an appreciation share. A small set of loans funded through the American Dream Down Payment Assistance Program are forgiven at a set percentage of the principal amount each year. A second type of loan is a deferred payment loan with resale restrictions. This includes the most recent HOME funded loans that are subject to resale restrictions and must be resold to low-income home buyers if sold before the end of the term. As of June 30, 2023, the forgivable loan amount at the end of the term is $12,962 and is not recorded on the financial statements. The Doran Gardens project loans funded through the BEGIN grant are deferred loans and are to be repaid at the end of the 30-year term. As of June 30, 2023, the non-forgivable amount is $5,720 and is recorded as loans receivable in the BEGIN Affordable Homeownership Fund.
• New Construction and Acquisition/Rehabilitation Rental Development Loan
The program is funded by the HOME grant and LMIHA and provides funds for new construction, acquisition or rehabilitation of affordable rental housing. Loan terms and loan underwriting requirements are negotiated with the developer on a project-by-project basis. The loan is secured by a deed of trust and affordable housing covenants on the property. Loans provide gap assistance to make housing units affordable to low and moderate income households, and units must be rented at an affordable rent. Leveraging of funds with other sources and contribution of developer equity is required. Loans may be second mortgage deferred payment loans, which require loan principal plus interest to be repaid at the end of the loan term, and residual receipt payments are required on some deferred loans. Also, loans may be permanent financing first mortgage loans at below-market interest rates, and monthly amortized payments are required. Such loans would be provided when credit conditions or loan costs are not feasible for the project. As of June 30, 2023, the forgivable loan amount at the end of the term is $3,717 and is not recorded on the financial statements. As of June 30, 2023, there are non-forgiven (no recourse) loans, these types of agreements are very long term (55 years+). There are no loan amortization schedules because the loan will only be paid back if there is enough residue receipt. Therefore, the loan agreement has a no recourse term, and the loan collectability is uncertain. As of June 30, 2023, the non-forgivable (no recourse) amount is $141,504 and is recorded as loans receivable and as allowance for uncollectible.
Accordingly, the net loans receivable is zero.
69 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 5 – INTERFUND TRANSACTIONS
The composition of interfund balances consists of due to/from other funds, advances to/from other funds, and transfers. Due to/from other funds are temporary cash overdrafts between funds. Advances to/from other funds represent an interfund loan extending beyond one year and some advances are formal lending agreements between funds.
Due to/from other funds as of June 30, 2023 consist of the following:
Due to General Fund from:
Nonma jor governmental funds $ 11,375
The City reports transfers between many of its funds. The sum of all transfers presented in the following table agrees with the sum of interfund transfers presented in the government-wide, governmental and proprietary fund financial statements. Transfers are used to (1) subsidize the activities of other funds and (2) move revenues from the fund that budget requires to collect them to the fund that budget requires to expend them.
Amount Purpose
Transfers to General Fund from:
Electric Fund $ 21,937 Fund General Fund operations per Charter
Transfer to Capital Improvement Fund from:
General Fund 1,103 Fund Capital Improvement pro jects
Transfers to nonmajor governmental funds from:
General Fund 119 Fund Nutritional Meals Grant matching General Fund 1,500 Fund debt service payments
General Fund 30 Fund Assistance to Firefighters Grant 1,649
Transfers to internal service fund from:
General Fund 7,800
Fund Fleet Management Fund for
replacement of General Fund vehicles
General Fund 110
Fund ITD Infrastructure Fund for wireless
service expansion implementation
7,910
Transfers to internal service fund from:
RHSP Benefits Fund 3,000 Fund Liability Insurance Fund
Total Interfund Transfers $ 35,599
70 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 6 – CAPITAL ASSETS
Capital asset for Governmental activities for the year ended June 30, 2023 was as follows:
Balance at
July 1,as
restated Increases Decreases Reclass
Balance at
June 30*
Capital assets, not bein
g depreciated:
Land $ 447,292 11,903 - - 459,195
Construction in pro gress 14,103 16,088 (1,636) (7,502) 21,053 Total assets not bein g depreciated 461,395 27,991 (1,636) (7,502) 480,248
Depreciable and amortizable capital
a s s e t s :
Buildin g and improvements 465,134 2,825 - 3,088 471,047 M a c h i n e ry and equipment 131,259 4,718 (2,140) 501 134,338 Infrastructure 370,930 851 - 2,598 374,379
Intan gible 7,304 207 (38) 1,190 8,663
R i ght-to-use lease asset - building 2,169 2,026 (1,219) - 2,976 Subscription assets 9,345 - - - 9,345
Total other capital assets at cos t 986,141 10,627 (3,397) 7,377 1,000,748
Less accumulated depreciation and
amortization:
Buildin g and improvements 213,959 12,189 - - 226,148
M a c h i n e ry and equipment 90,271 8,182 (2,123) (125) 96,205 Infrastructure 144,646 9,953 - - 154,599
Intan gible 2,992 688 (23) - 3,657
R i ght-to-use lease asset - building 815 810 (1,219) - 406 Subscription assets - 2,533 - - 2,533
Total accumulated depreciation and
amortization 452,683 34,355 (3,365) (125) 483,548
Total assets being depreciated and
amortized, net 533,458
(23,728) (32) 7,502 517,200
Governmental activities capital assets, net $ 994,853 4,263 (1,668) - 997,448
*$91,134 of buildings, improvements, machinery, equipment, construction in progress, intangible assets, lease, and subscription from internal service funds are included in governmental activities. $53,771 of accumulated depreciation and amortization from internal service funds are included in governmental activities.
Depreciation and amortization expense was charged to functions of the City’s governmental activities for the year ended June 30, 2023 as follows:
General Government $ 3,829
Police 2,160
Fire 742
Public Works 19,172
Parks, Recreation and Communit
y Services 3,430
Library 1,439
Transportation 1,938
Housing, Health and Community Development 955
Employment Programs 690
Total depreciation and amortization expense $ 34,355
71 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Capital asset for Business-type activities for the year ended June 30, 2023 was as follows:
Balance
at July 1,
as restated Increases Decreases Reclass
Balance at
June 30
Capital assets, not being depreciated:
Land $ 9,557 - - - 9,557
Construction in progress 11,589 24,013 (804) (2,065) 32,733 Right-to-use lease asset - land 272 - - - 272
Total assets not being depreciated 21,418 24,013 (804) (2,065) 42,562
Depreciable, depletable, and
amortizable capital assets:
Building and improvements 320,498 1,443 (9,790) - 312,151 Machinery and equipment 591,113 12,494 (84,060) 2,456 522,003 Infrastructure 177,980 5,692 - 183 183,855
Natural gas reserve 22,171 4 - - 22,175
Intangible 116,940 1,699 - (574) 118,065
Subscription assets 130 - - - 130
Total other capital assets at cost 1,228,832 21,332 (93,850) 2,065 1,158,379
Less accumulated depreciation,
depletion, and amortization:
Building and improvements 130,837 6,708 (6,470) - 131,075 Machinery and equipment 403,034 23,287 (61,114) 345 365,552 Infrastructure 70,178 3,741 - - 73,919
Natural gas reserve 14,481 681 - - 15,162
Intangible 61,585 3,194 - (345) 64,434
Subscription assets - 65 - - 65
Total accumulated depreciation,
depletion and amortization 680,115 37,676 (67,584) - 650,207
Total assets being depreciated,
depleted, and amortized, net 548,717 (16,344) (26,266) 2,065 508,172
Business-type activities capital assets, net $ 570,135 7,669 (27,070) - 550,734
Depreciation, depletion, and amortization expense was charged to functions of the City’s Business-type activities for the year ended June 30, 2023 as follows:
Sewer $ 6,658
Electric 21,118
Water 7,341
Refuse Disposal 1,915
Verdu
go Fire Communication 644
Total depreciation, depletion, and amortization expense $ 37,676
72 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Capital asset for Fiduciary Fund for the year ended June 30, 2023 was as follows:
Balance
at July 1 Increases Decreases Reclass
Balance at
June 30
Capital assets, not being depreciated:
Intangible assets $ 2,795 - - - 2,795
Total assets not being depreciated 2,795 - - - 2,795
Depreciable capital assets:
Machinery and equipment 356 - - - 356
Total other capital assets at cost 356 - - - 356
Less accumulated depreciation:
Machinery and equipment 200 26 - - 226
Total accumulated depreciation 200 26 - - 226
Total assets being depreciated, net 156 (26) - - 130
Fiduciary fund capital assets, net $ 2,951 (26) - - 2,925
Depreciation expense was charged to functions of the City’s fiduciary fund for the year ended June 30, 2023 as follows:
Depreciation
ICI S
ystem $ 26
NOTE 7 – LONG-TERM DEBT
The City’s long-term debt as of June 30, 2023 consists of the following:
Bonds payable
Issuance
Amount
Balance
at July 1 Additions Retirements
Balance
at
June 30
Due
within
one year
Governmental activities:
GMFA 2019 lease revenue refunding bonds $ 24,925 19,330 - 2,025 17,305 2,125 GMFA 2019 lease revenue bonds premium - 3,834 - 484 3,350 484 Total Governmental activities $ 24,925 23,164 - 2,509 20,655 2,609
73 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Issuance
Amount
Balance
at July 1 Additions Retirements
Balance
at
June 30
Due
within
one year
Business-type activities:
Electric revenue bonds, 2013 refunding series $ 20,510 14,540 - 1,145 13,395 1,210 Electric revenue bonds, 2013 series 60,000 51,085 - 1,430 49,655 1,500 Electric revenue bonds, 2016 refunding series 72,615 57,820 - 3,420 54,400 3,590 Electric revenue bonds premium - 17,210 - 1,132 16,078 1,131 Water revenue bonds, 2012 series 35,000 32,610 - 580 32,030 615 Water revenue bonds, 2020 refunding series 36,625 33,405 - 1,680 31,725 1,725 Water revenue bonds premium - 3,523 - 220 3,303 221
Total Business-type activities
$ 274,750 210,193 - 9,607 200,586 9,992
Issuance
Amount
Balance
at July 1 Additions Retirements
Balance
at
June 30
Due
within
one year
Fiduciary activities:
2016 GSA tax allocation bonds refunding $ 20,810 20,81 0 - 6,665 14,145 6,935 GSA tax allocation bonds discount/premium - 1,08 6 - 449 637 449 Total Fiduciary activities $ 105,928 21,89 6 - 7,114 14,782 7,384
Leases payable
Balance
at July 1 Additions Retirements
Balance
at
June 30
Due
within
one year
Governmental activities $ 1,391 2,026 802 2,615 777 Business-type activities 218 - 54 164 54
Total Leases payable $ 1,609 2,026 856 2,779 831
Subscriptions payable
Balance
at July 1
Additions Retirements
Balance
at
June 30
Due
within
one year
Governmental activities $ 7,481 - 2,246 5,235 2,558 Business-type activities 35 - 17 18 18
Total Subscriptions payable $ 7,516 - 2,263 5,253 2,576
Bonds payable
Governmental activities:
The City has outstanding long-term bonded-debt for governmental activities of $20,655 of which has no direct borrowing and no direct placements related to governmental activities as of June 30, 2023. The City also has no outstanding or unused line of credit related to long-term debt of governmental activities as of June 30, 2023. The governmental activities bonds payable contains a provision that Glendale Municipal Financing Authority will not pledge to collateral any assets owned by the City, but the Lease Agreement permits the Glendale Municipal Financing Authority and its Trustee to take possession of and re-lease the Police Building in the event of a default by
74 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
the City. The governmental activities bonds payable has no remedy of acceleration of any lease payments which has not come due and payable in accordance with the Lease Agreement. The governmental activities bonds payable contains an event of default that changes the timing of repayment of outstanding principal and interest to become immediately due if the City is unable to make payment.
Glendale Municipal Financing Authority (GMFA) 2019 Lease Revenue Refunding Bonds
The GMFA 2019 Lease Revenue Refunding Bonds were issued pursuant to a resolution adopted by the City Council and Joint Exercise of Powers Agreement with the Glendale Housing Authority to establish the Glendale Municipal Financing Authority on April 9, 2019 and a resolution adopted by the City Council authorizing GMFA to issue bonds to refinance the City’s 2000 Variable Rate Certificates of Participation on April 16, 2019.
The City of Glendale Municipal Financing Authority issued $24,925 in lease revenue bonds on June 25, 2019 to refinance the existing lease relating to the City’s outstanding Variable Rate Demand Certificates of Participation (2000 Police Building Project). The bond proceeds were deposited in an escrow account and were used to refund and redeem all of the outstanding COPs on June 25, 2019 at a redemption price equal to 100% of the principal amount plus accrued interest up to the redemption date. There was no difference between the reacquisition price of the refunding bonds and the net carrying amount of the refunded bonds. The refunding also resulted in cash flow savings of $3,710 which is the difference between the cash flows required to service the old COPs and the cash flows required to service the new 2019 bonds.
The GMFA does not require the trustee to establish and maintain a reserve fund for the bonds. Interest rates are
5.00% and paid semiannually on December 1 and June 1. Principal payments are made annually on June 1. The bonds will mature in regularly increasing amounts ranging from $2,125 to $2,850 annually from FY 2023-24 to FY 2029-30. Outstanding principal balance at June 30, 2023 was $17,305.
The bonds are not subject to optional redemption prior to their respective stated maturities.
The bonds are payable and secured from the revenues pledged under the Indenture of Trust, dated June 1, 2019.
Pursuant to a Site Lease, dated June 1, 2019, by and between the GMFA and the City, the City has leased the Police building to GMFA. GMFA has subleased the Police building back to the City under the Lease Agreement, dated June 1, 2019, by and between the City and GMFA. The revenues consist primarily of lease payments to be made by the City under the terms of the Lease Agreement. The annual lease payments from the City are to be made at a rate sufficient to meet the debt service requirements of the outstanding bond indebtedness on the leased property.
Business-type activities:
The City has outstanding long-term bonded-debt for business activities of $200,586, has no direct borrowings, and no direct placements related to business-type activities as of June 30, 2023. The City also has no outstanding or unused line of credit related to long-term debt of business-type activities as of June 30, 2023. The business-type activities bonds payable contains a provision that none of the electric utility and water utility assets owned by the City will be sold or leased if the City is unable to satisfy the debt service requirement. The business-type activities bonds payable contains a provision that, in an event of default, the owners of 25% in aggregate Bond Obligations of Bonds then outstanding, may call a meeting of the bond owners for the purpose of electing a bond owners’ committee. The business-type activities bonds payable contains a subjective acceleration clause that allows the bond owners’ committee to accelerate payment of the entire principal and interest amounts to become immediately due in an event of default by the City.
Enterprise Fund – Electric utility
The Electric utility has pledged future electric customer revenues, net of specified operating expenses, to pay the remaining total principal and interest on the Electric revenue bonds of $172,040 through FY 2042-43. The bonds are payable solely from Electric utility’s net income and are expected to require the net income to be at least equal to
1.10 times the amount of the annual debt services as they become due each fiscal year. The rates to be charged for services furnished by the Electric utility should incorporate the debt service requirements to provide revenues
75 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
sufficient to pay, as the principal and interest become due. The Electric revenue bonds are secured with amounts on deposit in account established under the indenture, including the reserve account. As of June 30, 2023, the parity reserve fund has a balance of $4,941 held by the Trustee. Total debt service paid and total net available revenues for debt service coverage for FY 2022-23 were $12,167 and $30,236, respectively.
Electric Revenue Bonds, 2013 Refunding Series
The Electric utility of Glendale Water & Power issued $20,510 in revenue bonds in March 2013 to provide funds to refund all of the City’s outstanding Electric Revenue Bonds, 2003 Series (2003 Bonds) and pay cost of issuance.
The bond proceeds were deposited in an escrow account and were used to refund the Refunded Bonds through a legal defeasance. Such proceeds were made available to pay on April 22, 2013 (Redemption Date) all of the outstanding principal amount of the 2003 Bonds at a redemption price of 100% of the principal amount thereof plus accrued interest thereon to the Redemption Date. The 2003 Bonds is no longer considered outstanding.
The refunding resulted in the recognition of a deferred loss on refunding of $71 as of June 30, 2023, and is being amortized through FY 2031-32. The refunding also resulted in cash flow savings of $3,699 which is the difference between the cash flows required from the prior debt service and the cash flows required for the new refunding debt service.
Interest rates range from 4.00% to 5.00% and paid semiannually on August 1 and February 1. Principal payments are made annually on February 1. The 2013 Refunding Bonds will mature in regularly increasing amounts ranging from $1,210 to $1,805 annually from FY 2023-24 to FY 2031-32. Outstanding principal balance at June 30, 2023 was $13,395.
The 2013 Refunding Bonds have an optional redemption on and after February 1, 2024.
Electric Revenue Bonds, 2013 Series
The Electric utility of Glendale Water & Power issued $60,000 in revenue bonds in December 2013 to finance the costs of acquisition and construction of certain improvements to the City’s electric public utility including the rebuilding of Grandview substation and other reliability improvements to the distribution system, make a deposit to the Parity Reserve Fund and pay the cost of issuance.
Interest rates range from 3.00% to 5.00% and paid semiannually on August 1 and February 1. Principal payments are made annually on February 1. The 2013 Bonds will mature in regularly increasing amounts ranging from $1,500 to $3,795 annually from FY 2023-24 to FY 2042-43. Outstanding principal balance at June 30, 2023 was $49,655.
The 2013 Bonds have an optional redemption on and after February 1, 2024. The 2013 Bonds maturing on February 1, 2039 and February 1, 2043 are subject to mandatory sinking fund redemption from mandatory sinking account payments set aside in the Parity Obligation Payment Fund.
Electric Revenue Bonds, 2016 Refunding Series
The Electric utility of Glendale Water & Power issued $72,615 in revenue bonds in May 2016 to provide moneys for the refunding of all of the City’s outstanding Electric Revenue Bonds, 2006 Refunding Series (2006 Bonds), a portion of the City’s outstanding Electric Revenue Bonds, 2008 Series (2008 Bonds), to finance the costs of acquisition and construction of certain improvements to the City’s electric public utility and paying the costs of issuance of the 2016 Bonds. The bond proceeds were deposited in an escrow account and were used to refund the Electric Revenue Bonds, 2006 Refunding Series and a portion of the outstanding Electric Revenue Bonds, 2008 Series through a legal defeasance. The 2006 Bonds and 2008 Bonds were redeemed on June 3, 2016 and February 1, 2018, respectively both at a redemption price of 100% of the principal amount thereof plus accrued interest thereon to the redemption date. Both 2006 Bonds and 2008 Bonds are no longer considered outstanding.
76 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
The refunding resulted in the recognition of a deferred loss on refunding of $3,321 as of June 30, 2023, and is being amortized through FY 2037-38. The refunding also resulted in cash flow savings of $13,026 which is the difference between the cash flows required from the prior debt service and the cash flows required for the new refunding debt service.
Interest rates are 5.00% and paid semiannually on August 1 and February 1. Principal payments are made annually on February 1. The 2016 Refunding Bonds will mature in regularly increasing amounts ranging from $2,700 to $4,715 annually from FY 2023-24 to FY 2037-38. Outstanding principal balance at June 30, 2023 was $54,400.
The 2016 Refunding Bonds have an optional redemption on and after February 1, 2027. The 2016 Refunding Bonds maturing on February 1, 2038 are subject to mandatory sinking fund redemption from mandatory sinking account payments set aside in the Parity Obligation Payment Fund.
Enterprise Fund – Water utility
The Water utility has pledged future water customer revenues, net of specified operating expenses, to pay the remaining total principal and interest on the Water revenue bonds of $85,690 through FY 2041-42. The bonds are payable solely from Water utility’s net revenues and is expected to require the net revenues to be at least equal to
1.25 times the amount of the annual debt services as they become due each fiscal year. The rates to be charged for services furnished by the Water utility should incorporate the debt service requirements to provide revenues sufficient to pay, as the principal and interest become due. The Water revenue bonds are secured with amounts on deposit in account established under the indenture, including the reserve account. As of June 30, 2023, the parity reserve fund has a balance of $5,295 held by the Trustee. Total debt service paid and total net available revenues for debt service coverage for FY 2022-23 were $4,275 and $10,597, respectively.
Water Revenue Bonds, 2012 Series
The Water utility of Glendale Water & Power issued $35,000 in revenue bonds in December 2012 to finance the costs of certain improvements to the City’s water public utility including construction and development of Rockhaven Well, construction of a new energy and asset management system, Supervisory Control and Data Administration (SCADA), Glorietta Well improvements and pump station and water quality improvements, make a deposit to the Parity Reserve Fund and pay the cost of issuance.
Interest rates range from 2.75% to 5.00% and paid semiannually on August 1 and February 1. Principal payments are made annually on February 1. The bonds will mature in regularly increasing amounts ranging from $615 to $4,945 annually from FY 2023-24 to FY 2041-42. Outstanding principal balance as of June 30, 2023 was $32,030.
The 2012 Bonds have an optional redemption on and after February 1, 2023. The 2012 Bonds maturing on February 1, 2042 are subject to mandatory sinking fund redemption from mandatory sinking account payments set aside in the Parity Obligation Payment Fund.
Water Revenue Bonds, 2020 Refunding Series
The Water utility of Glendale Water & Power issued $36,625 in revenue bonds in August 2020 to provide moneys for refunding the City’s outstanding Water Revenue Bonds, 2008 Series (2008 Bonds), making a deposit to the Parity Reserve Fund, and paying the costs of issuance of the 2020 Bonds. The bond proceeds were deposited in an escrow account and were used to refund the 2008 Bonds. The 2008 Bonds was redeemed on September 5, 2020 at a redemption price of 100% of the principal amount plus accrued and unpaid interest to such redemption date. The 2008 Bonds is no longer considered outstanding.
The refunding resulted in the recognition of a deferred gain on refunding of $795 as of June 30, 2023, and is being amortized through FY 2037-38. The refunding also resulted in cash flow savings of $12,031 which is the difference between the cash flows required from the prior debt service and the cash flows required for the new refunding debt service.
77 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Interest rates range from 2.00% to 4.00% and paid semiannually on August 1 and February 1. Principal payments are made annually on February 1. The 2020 Refunding Bonds will mature in regularly increasing amounts ranging from $1,725 to $2,475 annually from FY 2023-24 to FY 2037-38. Outstanding principal balance at June 30, 2023 was $31,725.
The 2020 Refunding Bonds have an optional redemption on and after August 1, 2030.
Fiduciary activities:
The Successor Agency has outstanding long-term debt of $14,782, and no direct placements related to fiduciary activities as of June 30, 2023. The Successor Agency also has no outstanding or unused line of credit related to long-term debt of fiduciary activities as of June 30, 2023. The fiduciary activities bonds payable did not contain a provision to pledge as collateral for debt any assets or properties owned by the Successor Agency in the event of default by the Successor Agency. The fiduciary activities bonds payable contain a provision that in an event of default, the majority owners in aggregate principal amount of the Bonds at the time outstanding can accelerate payment of the entire principal and interest amounts to become immediately due if the Successor Agency is unable to make payment, with the exception of Subordinate Tax Allocation Bonds, 2016 Refunding Series that have bond insurance with Build America Mutual Assurance Company, these bond insurers may elect at its sole discretion to pay the accelerated principal and interest payments to the extent unpaid by the Successor Agency.
The fiduciary activities bonds payable contain a provision to comply with the requirements of the Redevelopment Law and shall take all actions required to prepare and file the Recognized Obligation Payment Schedules in order for the Los Angeles County Auditor-Controller to distribute from the Redevelopment Property Tax Trust Fund to Redevelopment Obligation Retirement Fund all amounts required to enable the Successor Agency to pay timely principal and interest on the 2016 Bonds when due including any amounts due to Bond insurers in respect of the Bond Insurance Policy. Total debt service paid and total net available revenues for debt service coverage for FY 2022-23 were $7,436 and $37,338, respectively.
Subordinate Tax Allocation Bonds, 2016 Refunding Series
The Glendale Successor Agency (the “GSA”) issued $20,810 in 2016 tax allocation refunding bonds with an average rate of 1.74% to refinance the former Glendale Redevelopment Agency’s (the “Agency”) outstanding Central Glendale Redevelopment Project Tax Allocation Bonds, 2010 Series. The advance refunding of Tax Allocation Bonds, 2010 Series resulted in a difference between the reacquisition price of refunding bonds and the net carrying amount of the refunded bonds. The deferred loss on refunding as of June 30, 2023 for $250 is recognized and reported in the financial statements as a deferred outflows of resources and is being amortized through FY 2024-25. The refunding also resulted in cash flow savings of $5,231 which is the difference between the cash flows required to service the prior debt service and the cash flows required to service the new 2016 refunding bonds.
The refunding of the 2010 Tax Allocation Bonds was approved by the Oversight Board and the DOF, to provide savings until the Refunding Bonds are repaid. The property tax derived from the former Agency’s Central Project Area is pledged to repay these Bonds until they are paid in full. The funds are distributed by the County of Los Angeles semi-annually through the ROPS process, subject to the approval by the Successor Agency’s Oversight Board and the DOF. As of June 30, 2023, the principal balance is $14,145. The 2016 Bonds will mature in regularly increasing principal amounts ranging from $6,935 to $7,210 from FY 2023-24 to FY 2024-25. The reserve requirement of the bond issue is satisfied by a surety bond policy with a fair market value of $2,081. The 2016 Refunding Bonds are not subject to redemption prior to their stated maturities.
78 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Leases payable
Governmental activities:
The Verdugo Workforce Development Board has entered into a lease for office space that commenced in April 1, 2023 and expires on March 31, 2026. The agreement has monthly payments of $58 with interest rate of 2.24%.
The City has entered into an extended lease for ground floor space for the property known as the Library Connection @ Adams Square that commenced in April 1, 2021 and expires on March 21, 2024. The City has an option to renew the lease until March 31, 2026. The agreement has annual payments of $67 with interest rate of 0.54%. The annual payment is subject to an annual increase of 2.50%.
The City has entered into an extended lease for a space at a telecommunications facility known as Mt. Lukens with Crown Castle International that commenced in July 23, 2018 and expires on July 22, 2023. The City has an option to renew the lease until July 22, 2033. The agreement has monthly payments of $3 with interest rate of 1.25%. The monthly payment is subject to a 3.50% annual increase starting July 23, 2019.
Business-type activities:
The City has entered into a lease for a space at a telecommunications facility known as Flint Peak T1 CA with American Tower Corporation that commenced on April 1, 2021 and expires on March 31, 2026. The lease has an automatic renewal until March 31, 2031 and the City has an option to renew the lease until March 31, 2041. The agreement has annual payments of $4 with interest rate of 1.47%. The annual payment is subject to an annual increase of 5.00%.
The City has entered in its last five-year extension term of a land lease for the property known as Airspace Lease owned by the State of California – Department of Transportation in August 1, 2019 and expires on July 31, 2024.
The agreement has monthly payment of $4 with interest rate of 0.28%.
Subscriptions payable
Governmental activities:
The City has entered into a contract with West Publishing Corporation for an online legal software subscription and legal book subscriptions that commenced on July 1, 2022 and expires on June 30, 2025. The monthly subscription payment is $2 with interest rate of 2.24%. The monthly payment is subject to an annual increase of 3.00%.
The City has entered into a contract with Insight Public Sector Inc for Visual Lease enterprise lease platform software that commenced on January 1, 2022 and expires on December 31, 2024. The annual subscription payment is $10 with interest rate of $2.08%.
The City has entered into a contract with Qualtrax for compliance software used by Police department that commenced on January 1, 2023 and expires on December 31, 2025. The annual subscription payment is $10 with interest rate of 2.24% and subject to an annual increase of 10.00%.
The City has entered into a contract with Crayon Software for Microsoft licensing on server and desktop that commenced on January 1, 2022 and expires on December 31, 2024. The annual subscription payment is $288 with interest rate of 2.08%.
The City has entered into a contract with Central Square Technologies for software licensing of Police department’s computer-aided dispatch and automated records management system that commenced on September 29, 2022 and expires on September 28, 2027. The annual subscription payment of $29 is due after the first year with interest rate of 2.40% and subject to an annual increase of 5.00%.
79 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
The City has entered into a contract with Environmental System Research Institute for Geographic Information System (GIS) software that commenced on October 1, 2021 and expired on September 30, 2022. The City has exercised its option to renew until September 30, 2025. The minimum annual subscription payment is $194 with interest rate of 2.32%.
The City has entered into a contract with Granicus for DisclosureDocs software used by City Clerk department for Form 700 (Conflict of Interest) reporting that commenced on October 1, 2022 and expires on September 30, 2025.
The annual subscription payment is $18 with interest rate of 2.32% and subject to an annual increase of 7.00%.
The City has entered into a contract with State of California – California Department of Technology for Microsoft Office 365 Government Suite cloud-based productivity software that commenced on April 1, 2021 and expires on March 31, 2026. The minimum annual subscription payment is $885 with interest rate of 2.32%.
The City has entered into a contract with Axelliant LLC for Adobe Acrobat Sign SaaS solution platform that commenced on April 1, 2023 and expires on March 31, 2026. The annual subscription payment is $25 with interest rate of 2.32%.
The City has entered into a contract with JusticeTrax Inc. for Police department’s crime laboratory information management system that commenced on May 14, 2021 and expires on May 13, 2025. The annual subscription payment is $47 with interest rate of 2.24% and subject to an annual increase not exceeding 5.00%.
The City has entered into a contract with Genus Technologies LLC for Kofax paper and electronic documents capturing solution software that commenced on July 1, 2022 and expires on June 30, 2025. The annual subscription payment is $12 with interest rate of 2.24%.
The City has entered into a contract with Tyler Technologies Inc. for EnerGov land management software solution that commenced on April 1, 2021 and expires on March 31, 2026. The subscription has an automatic renewal until March 31, 2027. The annual subscription payment is $415 with interest rate of 2.32% and subject to an annual increase of 5.00% on its renewal term.
The City has entered into a contract with Axon Enterprise Inc. for an in-car and body-worn camera video storage application software used by Police department that commenced on July 11, 2019 and expires on July 10, 2024.
The annual subscription payment is $230 with interest rate of 2.08%.
The City has entered into a contract with Axon Enterprise Inc. for taser data storage application software used by Police department that commenced in September 25, 2020 and expires on September 24, 2025. The minimum annual subscription payment is $159 with interest rate of 2.24%.
The City has entered into a contract with Innovative Interfaces Inc. for an integrated library resource management system used by Library, Arts & Culture department for Glendale residents that commenced in July 1, 2020 and expires on June 30, 2025. The annual subscription payment is $76 with interest rate of 2.24%. Starting July 1, 2022, the annual subscription payment is subject to a 2.50% increase, then 3.00% and 3.50% increases on July 1, 2023 and July 1, 2024 respectively.
The City has entered into a contract with Innovative Interfaces Inc. for a resource sharing application system used by Library, Arts & Culture department to provide Glendale residents access to a consortium of over 70 area libraries to easily borrow books and materials and have them delivered to Glendale library location of the customer’s choice. The contract commenced on November 1, 2020 and expires on June 30, 2025. The annual subscription payment is $15 with interest rate of 2.24%. Starting July 1, 2022, the annual subscription payment is subject to a 2.50% increase, then 3.00% and 3.50% increases on November 1, 2023 and July 1, 2024 respectively.
80 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Business-type activities:
The City has entered into a contract with PulsePoint Foundation for a location-aware application system used by Fire department that citizens can download and use to send an alert with the dispatch of local paramedics to assist victims of sudden cardiac arrest. The contract is in its last amended three additional one-year terms effective November 21, 2021 and expires on November 20, 2024. The annual subscription payment is $18 with interest rate of 2.08%.
Annual Requirement Schedules
The City’s annual debt service requirement schedules as of June 30, 2023 are as follows:
Governmental and business-type activities:
GMFA 2019 Lease Revenue
Refunding Bonds
Fiscal Year Interes t Principal
2024 $ 865 2,125
2025 759 2,230
2026 648 2,345
2027 530 2,460
2028 407 2,585
2029-2030 421 5,560
$ 3,630 17,305
Electric Revenue Bonds Water Revenue Bonds
Fiscal Year Interes t Principal Interest Principal
2024 $ 5,873 6,300 1,935 2,340
2025 5,558 6,600 1,853 2,415
2026 5,228 6,930 1,785 2,485
2027 4,881 7,270 1,712 2,560
2028 4,518 7,630 1,636 2,635
2029-2033 16,833 35,000 6,730 14,960
2034-2038 9,027 30,470 4,611 17,560
2039-2043 2,672 17,250 1,673 18,800
$ 54,590 117,450 21,935 63,755
Total Governmental
Activities
Total Business-type
Activities
Total
Debt Service Fiscal Year Interes t Principal Interes t Principal 2024 $ 865 2,125 7,808 8,640 19,438
2025 759 2,230 7,411 9,015 19,415
2026 648 2,345 7,013 9,415 19,421
2027 530 2,460 6,593 9,830 19,413
2028 407 2,585 6,154 10,265 19,411
2029-2033 421 5,560 23,563 49,960 79,504
2034-2038 - - 13,638 48,030 61,668
2039-2043 - - 4,345 36,050 40,395
$ 3,630 17,305 76,525 181,205 278,665
81 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Fiduciary activities:
GSA Tax Allocation
Bonds
Total
Fiduciary
Activities
Debt Service
Fiscal
Year Interes
t
Principal
2024 $ 499
6,935
7,434
2025 180 7,210 7,390
$ 679 14,145 14,824
The City's total future minimum lease payments under lease agreements as of June 30, 2023 are as follows:
Governmental Activities Business-type Activities
Total Fiscal Year Interes t Principal Interes t Principal 2024 $ 41 777 2 54 874
2025 25 797 2 8 832
2026 9 623 1 4 637
2027 5 51 1 4 61
2028 4 53 1 4 62
2029-2033 10 310 6 26 352
2034-2038 - 4 3 38 45
2039-2042 - - 1 26 27
$ 94 2,615 17 164 2,890
The City's total future minimum subscription payments under subscriptions-based information technology agreements (SBITA) as of June 30, 2023 are as follows:
Governmental Activities Business-type Activities
Total Fiscal Year Interes t Principal Interes t Principal 2024 $ 93 2,558 - 18 2,669
2025 42 2,183 - - 2,225
2026 9 460 - - 469
2027 - 34 - - 34
$ 144 5,235 - 18 5,397
82 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 8 – PENSION PLANS
California Public Employees’ Retirement System
General Information about the Pension Plans
Plan Description
All eligible employees participate in the City’s agent multiple employer defined benefit pension plans, either Safety (police and fire sworn members) or Miscellaneous (all other members), administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website at http://www.calpers.ca.gov.
Benefits Provided
CalPERS provides service retirement and disability retirement benefits, annual cost of living adjustments, and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 for Classic members and age 52 for PEPRA members, with statutorily reduced benefits. Members may be eligible for disability retirement benefits after a minimum of 5 years of service. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The death benefit is as follows:
If eligible to retire, the Pre-retirement Option 2W Death Benefit; or the Basic Death Benefit of a refund of contributions, plus interest; and up to six months’ pay (one month’s salary rate for each year of current service to a maximum of six months); and 1959 Survivor Benefit Program Level 4* (may not be payable if the Special Death Benefit is elected).
If not eligible to retire, the Basic Death Benefit of a refund of contributions, plus interest; and up to six months’ pay (one month’s salary rate for each year of current service to a maximum of six months); and 1959 Survivor Benefit Program Level 4* (may not be payable if the Special Death Benefit is elected).
*1959 Survivor Benefit Program Level 4 may not be applicable if there is no eligible Spouse/Registered Domestic Partner (must have been married/registered for at least one year prior to retirement) and an unmarried eligible dependent child under age 22. An eligible surviving spouse/registered domestic partner may be entitled to the 1959 Survivor Benefit Program Level 4 benefits as long as they have care of an eligible child (unmarried dependent child of the member living with the member in a parent-child relationship, while under age 22) or the surviving spouse/registered domestic partner is at least age 62 (age 60 at Level 4 and under the Indexed Level). An eligible surviving spouse/registered domestic partner may remarry and continue to receive the allowance.
83 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
The Plans’ provisions and benefits in effect at the measurement date ended June 30, 2022, are summarized as follows, which remain the same for FY 2022-23.
Miscellaneous
Hire date
Prior to
Januar
y 1, 2011
Between
January 1, 2011 and
December 31, 2012
On or after
January 1, 2013
Benefit formula 2.5% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthl y for life monthly for life monthl y for life Retirement age 50-55+ 50-63+ 52-67+
Monthly benefits, as a % of
eligible compensation 2.0% to 2.5% 1.426% to 2.418% 1.0% to 2.5%
Safety
Hire date
Prior to
January 1, 2011
Between
January 1, 2011 and
December 31, 2012
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthl y for life monthly for life monthl y for life Retirement age 50-55+ 50-55+ 50-57+
Monthly benefits, as a % of
eligible compensation 3.0% 2.4% to 3.0% 2.0% to 2.7%
Employees Covered
At the measurement date ended June 30, 2022, the following employees were covered by the benefit terms:
Miscellaneous Safet
y
Inactive employees or beneficiaries currently receiving benefits 1,871 635 Inactive employees entitled to but not yet receiving benefits 2,152 102 Active employees 1,365 383
Total 5,388 1,120
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.
The City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements are identified by the pension plan terms as plan member contribution
84 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
requirements are classified as plan member contributions. Since FY 2017-18, the contribution for the unfunded liability is a fixed amount, rather than a rate of the payroll. The City converts the fixed amount into a rate based on the payroll, and combines it with the normal cost rate to calculate the total employer contribution rate.
At the fiscal year ended June 30, 2023, for the Miscellaneous Plan, the normal cost rate is 9.86%, the amount for the unfunded liability is $32,005, and the prepayment amount for the unfunded liability is $30,940. The City chose the prepayment option to pay the $30,940 in July 2022, instead of paying 1/12 th of $32,005 on a monthly basis. For
FY 2022-23, the City calculates the rate for the unfunded liability to be 31.188%. Accordingly, the total employer contribution rate is 41.048%.
The City’s Miscellaneous Plan member contribution rates and employer contribution rates for FY 2022-23, including the employees’ cost sharing toward the employer rates, are shown in the table below:
Miscellaneous Plan
Employee
Group
CalPERS
Membership
Retirement
Formula
Member
Contribution
Rate
Employer
Contribution
Rate
Employees'
Cost Sharing City Portion Total
Council
Member
Classic (1st Tier) 2.5% @ 55 8.00% 3.00% 38.048% 41.048% Classic (2nd Tier) 2.0% @ 55 7.00% 3.00% 38.048% 41.048% PEPRA (3rd Tier) 2.0% @ 62 7.00% 3.00% 38.048% 41.048%
Executive
Classic (1st Tier) 2.5% @ 55 8.00% 3.00% 38.048% 41.048% Classic (2nd Tier) 2.0% @ 55 7.00% 3.00% 38.048% 41.048% PEPRA (3rd Tier) 2.0% @ 62 7.00% 3.00% 38.048% 41.048%
GCEA
Classic (1st Tier) 2.5% @ 55 11.00% 0.00%* 38.048% 38.048% Classic (2nd Tier) 2.0% @ 55 10.00% 0.00%* 38.048% 38.048% PEPRA (3rd Tier) 2.0% @ 62 10.00% 0.00%* 38.048% 38.048% IBEW
Classic (1st Tier) 2.5% @ 55 8.00% 3.00% 38.048% 41.048% Classic (2nd Tier) 2.0% @ 55 7.00% 3.00% 38.048% 41.048% PEPRA (3rd Tier) 2.0% @ 62 7.00% 3.00% 38.048% 41.048%
GMA
Classic (1st Tier) 2.5% @ 55 11.00% 0.00%** 38.048% 38.048% Classic (2nd Tier) 2.0% @ 55 10.00% 0.00%** 38.048% 38.048% PEPRA (3rd Tier) 2.0% @ 62 10.00% 0.00%** 38.048% 38.048%
GCEA - Glendale City Employee Association
IBEW - International Brotherhood of Electrical Workers
GMA - Glendale Management Association
*Since May 2013, GCEA members' cost sharing rate became part of their member contribution rate.
In FY 2022-23, the cost sharing rate is 3%.
**Since November 2018, GMA members' cost sharing rate became part of their member contribution rate.
In FY 2022-23, the cost sharing rate is 3%.
85 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
At the fiscal year ended June 30, 2023, for the Safety Plan, the normal cost rate is 20.62%, the amount for the unfunded liability is $24,657, and the prepayment amount for the unfunded liability is $23,837. The City chose the prepayment option to pay the $23,837 in July 2022, instead of paying 1/12th of $24,657 on a monthly basis. For FY 2022-23, the City calculates the rate for the unfunded liability to be 44.8%. Accordingly, the total employer contribution rate is 65.42%.
The City’s Safety Plan member contribution rates and employer contribution rates for FY 2022-23, including the employees’ cost sharing toward the employer rates, are shown in the table below:
Safety Plan
Employee
Group
CalPERS
Membership
Retirement
Formula
Member
Contribution
Rate
Employer
Contribution
Rate
Employees'
Cost Sharing City Portion Total
Executive - Fire
Classic (1st Tier) 3.0% @ 50 9.00% 3.00% 62.420% 65.420% Classic (2nd Tier) 3.0% @ 55 9.00% 3.00% 62.420% 65.420% PEPRA (3rd Tier) 2.7% @ 57 11.50% 3.00% 62.420% 65.420% Executive - Police
Classic (1st Tier) 3.0% @ 50 9.00% 3.00% 62.420% 65.420% Classic (2nd Tier) 3.0% @ 55 9.00% 3.00% 62.420% 65.420% PEPRA (3rd Tier) 2.7% @ 57 11.50% 3.00% 62.420% 65.420% GMA - Fire
Classic (1st Tier) 3.0% @ 50 16.50% 0.00%* 57.920% 57.920% Classic (2nd Tier) 3.0% @ 55 16.50% 0.00%* 57.920% 57.920% PEPRA (3rd Tier) 2.7% @ 57 19.00% 0.00%* 57.920% 57.920% GMA - Police
Classic (1st Tier) 3.0% @ 50 12.50% 0.00%* 61.920% 61.920% Classic (2nd Tier) 3.0% @ 55 12.50% 0.00%* 61.920% 61.920% PEPRA (3rd Tier) 2.7% @ 57 15.00% 0.00%* 61.920% 61.920% GFFA
Classic (1st Tier) 3.0% @ 50 9.00% 4.50% 60.920% 65.420% Classic (2nd Tier) 3.0% @ 55 9.00% 4.50% 60.920% 65.420% PEPRA (3rd Tier) 2.7% @ 57 11.50% 3.50% 61.920% 65.420% GPOA
Classic (1st Tier) 3.0% @ 50 9.00% 3.50% 61.920% 65.420% Classic (2nd Tier) 3.0% @ 55 9.00% 3.50% 61.920% 65.420% PEPRA (3rd Tier) 2.7% @ 57 11.50% 1.75% 63.670% 65.420%
GMA - Glendale Management Association
GFFA - Glendale Fire Fighter Association
GPOA - Glendale Police Officer Association
*Effective November 2018, GMA members' cost sharing rates became part of their member contribution rate.
In FY 2022-23, the cost sharing rate for GMA – Fire is 7.5%.
In FY 2022-23, the cost sharing rate for GMA – Police is 3.5%.
86 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
At the fiscal year ended June 30, 2023, as shown in the rates tables, in addition to the required member contributions, the City employees also contribute a portion of the required employer contribution, based on bargaining units’ MOUs. The employees’ cost sharing in the table below include the cost sharing that belong to the member contribution: $2,566 for the Miscellaneous Plan, and $229 for the Safety Plan. The breakdown of the required employer contribution between the City portion and the employee cost sharing is as follows:
Plan
Annual Required
Emplo
yer Contribution
City
Contribution
Employees’
Cost Sharing
Miscellaneous $ 40,691 37,724 2,967
Safety
Police 20,897 19,909 988
Fire 14,541 13,526 1,015
Total Safety 35,438 33,435 2,003
Total $ 76,129 71,159 4,970
Net Pension Liability
The City’s net pension liability for each plan was measured as of June 30, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures.
Actuarial Assumptions
The June 30, 2021 valuation was rolled forward to measure the June 30, 2022 total pension liability, based on the following actuarial methods and assumptions:
Valuation date June 30, 2021
Measurement date June 30, 2022
Actuarial cost method Entry Age Actuarial Cost Method
Actuarial assumptions:
Discount rate 6.90%
Inflation 2.30%
Salary increase Varies by Entry Age and Service
Mortality rate table Derived using CalPERS' Membership Data for all Funds
Post retirement
benefit increase
The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvements using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
87 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns of all the funds’ assets classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. The expected real rates of return by asset class are as followed:
Asset Class* Assumed asset allocation Real return**
Global equity – Cap-weighted 30.00% 4.54%
Global equity – Non-cap-weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corporates 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage (5.00%) (0.59%)
Total 100.00%
*An expected inflation of 2.30% used for this period.
**Figures are based on the 2021 Asset Liability Management Study.
Discount Rates
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the 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 plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
88 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Changes in the Net Pension Liability
The changes in the Net Pension Liability measured as of June 30, 2022 for each plan is as follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(c) = (a) – (b)
Balance at June 30, 2022 $ 1,262,140 1,083,436 178,704 Changes in the year:
Service cost 18,657 - 18,657
Interest on the total pension liabilit
y 86,698 - 86,698
Chan ges of assumptions 37,616 37,616
Differences between actual and expected
experience
(19,997)
-
(19,997)
Contribution from the emplo yer - 38,620 (38,620) Contribution from the emplo yees - 10,491 (10,491) Net investment income - (81,807) 81,807 Benefit payments, including refunds of employee
contributions (65,188)
(65,188)
-
Administrative expense - (675) 675 Net changes 57,786 (98,559) 156,345
Balance at June 30, 2023 $ 1,319,926 984,877 335,049
Safety Plan:
Increase
(Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(c) = (a) – (b)
Balance at June 30, 2022 $ 955,815 745,703 210,112
Changes in the year:
Service cost 17,490 - 17,490
Interest on the total pension liabilit y 66,942 - 66,942 Chan ges of assumptions 33,196 33,196
Differences between actual and expected
experience
(2,699)
-
(2,699)
Contribution from the emplo yer - 35,100 (35,100) Contribution from the emplo yees - 5,499 (5,499) Net investment income - (56,694) 56,694 Benefit payments, including refunds of employee
contributions (49,777)
(49,777)
-
Administrative expense - (465) 465 Net changes 65,152 (66,337) 131,489
Balance at June 30, 2023 1,020,967 679,366 341,601
Total for both plans at June 30, 2023 $ 2,340,893 1,664,243 676,650
89 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the net pension liability of each Plan, calculated using the discount rate of 6.90%, as well as what the City’s 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:
Miscellaneous
Safety
Total
1% Decrease 5.90%
5.90%
5.90%
Net Pension Liability $ 511,987 481,939 993,926
Current Discount Rate 6.90%
6.90%
6.90%
Net Pension Liability $ 335,049 341,601 676,650
1% Increase 7.90%
7.90%
7.90%
Net Pension Liability $ 189,438 226,694 416,132
Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the City reported net pension liability, deferred outflows of resources and deferred inflows of resources for both Miscellaneous and Safety Plans as follows:
Net Pension
Liabilit
y
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension
Expense
Governmental activities:
Miscellaneous plan $ 214,842 72,641 9,185 21,344
Safety plan 341,601 96,118 5,061 40,656
Total Governmental activities 556,443 168,759 14,246 62,000
Business-type activities:
Miscellaneous plan 120,207 40,820 5,154 12,405
Total $ 676,650
209,579
19,400
74,405
Miscellaneous Plan:
At June 30, 2023, the City 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
Pension contributions subsequent to measurement date $ 38,126 - Changes of assumptions 25,482 -
Differences between expected and actual experience 210 14,339 Net differences between projected and actual earnings
on plan investments 49,643
-
Total $ 113,461 14,339
90 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
The amount of $38,126 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024.
Other amounts reported as deferred outflows/(inflows) of resources related to pensions will be recognized as pension expense as follows:
Year endin
g June 30, Amounts
2024 $ 13,067
2025 12,767
2026 3,974
2027 31,188
Total $ 60,996
Safety Plan:
At June 30, 2023, the City 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
Pension contributions subsequent to measurement date $ 35,210 - Changes of assumptions 25,100 -
Differences between expected and actual experience 1,467 5,061 Net differences between projected and actual earnings
on plan investments 34,341
-
Total $ 96,118 5,061
The amount of $35,210 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2024.
Other amounts reported as deferred outflows/(inflows) of resources related to pensions will be recognized as pension expense as follows:
Year endin
g June 30, Amounts
2024 $ 12,967
2025 10,899
2026 9,675
2027 22,306
Total $ 55,847
Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
91 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Supplemental Retirement Plan
In May 2012, in an effort to substantially reduce staffing levels to address a projected $15,400 General Fund shortfall for FY 2012-13, the City contracted with Public Agency Retirement Services (PARS) to offer an early retirement incentive plan to provide supplemental retirement benefit payments to eligible employees in addition to the benefit payments the employees will receive from the California Public Employees’ Retirement System (CalPERS). To be eligible to participate in the plan, the employees must have been a Glendale City Employee Association (GCEA) or Glendale Management Association (GMA) employee, be at least 50 years of age as of September 1, 2012, and have a minimum 5 years of CalPERS service credit. The employees needed to resign from the City by August 31, 2012.
The plan offered 5% of the employees’ final pay, which the employees could choose various options to receive the payment, such as unmodified lifetime monthly payment, or higher fixed monthly payment for a fixed number of years.
There were 122 employees who participated in the plan.
In October 2012, the City provided the same early retirement incentive plan to the employees represented by International Brotherhood of Electrical Workers Association (IBEW), and also offered an extension of the incentive program to employees represented by GCEA and GMA. The same parameters were applied for the extension of the incentive program, with the exception of the retirement eligibility date and date of separation advancing to October 31, 2012. There were 30 additional employees participating in the second phase. The plan is closed. As of June 30, 2023, there are five remaining participants and the liability is not material. Therefore, the liability is not reported in the accompanying financial statements. During the fiscal year, the City paid $44 to PARS.
Public Agency Retirement Services (PARS)
The PARS Trust, created in 1991, is a trust arrangement established to provide economies of scale and efficiencies of administration to public agencies that adopt it to hold the assets of their agency retirement plans maintained for the benefit of their employees. The Omnibus Budget Reconciliation Act of 1990 (OBRA 90) amended the Internal Revenue Code to mandate that employees of public agencies, who are not members of their employer’s existing retirement system as of January 1, 1992, be covered under Social Security or an alternate plan. The PARS ARS Plan satisfies the OBRA 90 Federal Requirements. It is intended that this plan and the trust established to hold the assets of the plan shall be qualified under Section 401(a) and tax-exempt under Section 501(a) of the Internal Revenue Code of 1986, as amended, and meet the requirements of California Government Code Sections 53215 through 53224 providing how pension trusts must be established by public agencies. Through PARS, agencies have the ability to design and control retirement plans according to their own specific needs, including specific collective bargaining requirements. The City adopted the PARS ARS Plan, effective September 1, 1999 as an alternate plan to Social Security for the hourly employees who are not eligible for participation in the City’s CalPERS retirement plan.
Any City hourly employee who is not eligible to enroll in the CalPERS retirement plan is enrolled in PARS ARS instead of social security. After completing 1,000 work hours within a fiscal year, hourly employees are eligible to enroll in CalPERS retirement plan. For each pay period, employees contribute 6.2%, and the City contributes 1.3% of employee earnings into employees’ PARS account. Both contributions are made on pre-tax basis. For FY 2022-23, PARS payments were $55 and $12 for employee portion and employer portion, respectively. Since the plan is a 401(a) Defined Contribution, there is no unfunded liability to the City. A participant in the PARS ARS Plan (or their beneficiary in the event of death) becomes eligible to receive their funds when one of the following events occurs: Separation of Employment, Retirement, Permanent and Total Disability, or change of employment status to a position covered by another retirement system. For active employees, if there are no contributions into their PARS ARS account for two years, they may be eligible for a distribution of their account.
92 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 9 – Other Post Employment Benefits Than Pensions (OPEB) Plan Description
The City’s defined benefit OPEB plan, City of Glendale Retiree Benefits Plan (Plan), provides OPEB for all permanent full-time general and public safety employees of the City. The Plan is a single-employer defined benefit OPEB plan administered by the City and governed by the City Council. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
Benefits Provided
The City provides Medicare Part A reimbursements to retirees and their spouses if the retirees were hired in the City prior to April 1, 1986, and ineligible for premium-free Medicare Part A.
The City also provides cash subsidy for medical insurance premiums to three groups of retirees: (1) retirees who retired before July 1, 2001, and the length of the subsidy was pre-determined based on the retirees’ sick leave balances at the time of retirement. The subsidy is capped by the actual premium, and the unreduced city-paid amount continues to surviving spouses if the retirees die prior to the pre-determined payment period; (2) retirees who retired before June 1, 2016 with a minimum of 10 years of City service, enroll in a City sponsored medical plan and meet the annual income requirement. The eligibility and subsidy amount are evaluated on an annual basis. This is a lifetime subsidy for the eligible retirees except it will discontinue at age 65 for the retirees with enhanced pension benefits. The benefit will continue to surviving spouses, if applicable; (3) the surviving spouses and dependents of deceased retirees if the retirees retired before June 1, 2008 and enrolled in Anthem Blue Cross PPO at the time of the death, and the length of subsidy is two years.
The City also provides cash subsidy for medical insurance premium to surviving spouses and dependents of active non-safety employees who pass away during their employment with the City. The subsidy is two years for the City Council, the Executives and the GMA employees, regardless of the medical insurance plans enrolled at the time of the death. The subsidy is two years for GCEA and IBEW employees if enrolled in Anthem Blue Cross PPO at the time of the death. The subsidy is two years for GCEA and IBEW employees if enrolled in HMO plans at the time of the death and if the employees’ death is a result of injuries incurred in the performance of his/her assigned duties. At the same time, the City provides cash subsidy for dental insurance premium to surviving spouses and dependents of active safety employees who pass away during their employment with the City. The subsidy continues until the spouses turn 65 and the children turn 26 (if applicable).
The above benefits offered to retirees are no longer available to new entrants because of the restriction of the retirement dates. Benefits payments made by the City for the year ended June 30, 2023 were $509.
Employees Covered by Benefit Terms
At June 30, 2022, the most recent measurement date, the following current and former employees were covered by the benefit terms under the Plan:
Inactive emplo
yees or beneficiaries currently receiving benefit payments 72 Inactive employees entitled to but not yet receiving benefit payments 118 Active employees 1,362
Total 1,552
Total OPEB Liability
The City’s total OPEB liability of $12,427 was measured as of June 30, 2022, and was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the total OPEB liability is shown below.
93 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Actuarial Assumptions and Other Inputs
The total OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Actuarial valuation date June 30, 2021
Measurement date June 30, 2022
Discount rate 3.54%
General inflation 2.50% annually
Medicare Part A trend 3.50% annually (inflation + 1%)
Not related to health care trend
Medical Trend Non-Medicare – 6.5% for 2023, decreasing to an ultimate rate of 3.75% in 2076
Medicare (Non-Kaiser) – 5.65% for 2023, decreasing to
an ultimate rate of 3.75% in 2076
Medicare (Kaiser) – 4.6% for 2023, decreasing to an
ultimate rate of 3.75% in 2076
The discount rate was based on the Bond Buyer 20-Bond index.
Mortality information was derived from data collected during CalPERS 2000-2019 Experience Study. Mortality improvement scale was updated to Scale MP-2021.
Changes in the Total OPEB Liability
The changes in the total OPEB liability measured as of June 30, 2022 is as follows:
Total OPEB Liabilit
y
Balance at June 30, 2020 $ 15,015
Changes in the year:
Service cost 43
Interest 319
Assumption changes (2,420)
Benefit payments (530)
Net changes (2,588)
Balance at June 30, 2021 $ 12,427
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 discount rate:
2.54% 3.54% 4.54%
Total OPEB Liabilit
y $ 14,113 12,427 11,037
94 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
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 healthcare cost trend rates:
1% Decrease
(Trend -1%)
Current
Healthcare Cost
Trend Rates
1% Increase
(Trend +1%)
Total OPEB Liability $ 12,327
12,427
12,545
Non-Medicare trend rate of 6.5% for 2023, decreasing to an ultimate rate of 3.75% in 2076. Medicare trend rate (Non-Kaiser) of 5.65% for 2023, decreasing to an ultimate rate of 3.75% in 2076. Medicare trend rate (Kaiser) of
4.6% for 2023, decreasing to an ultimate rate of 3.75% in 2076.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2023, the City recognized OPEB income of $183. At June 30, 2023, 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
OPEB payments made subsequent to the measurement date $ 509 - Changes of assumptions 2,316 3,494
Differences between expected and actual experience - 2,640
Total $ 2,825 6,134
The amount of $509 reported as defer red outflows of resources related to OPEB payments subsequent to the measurement date will be recognized as a reduction of the total OPEB liability in the year ending June 30, 2024.
Other amounts reported as def erred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year endin
g June 30, Amounts
2024 $ (545)
2025 (545)
2026 (545)
2027 (365)
2028 (307)
Thereafter (1,511)
Total $ (3,818)
Change in Assumption
Discount rate was changed from 2.16% to 3.54%.
95 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 10 – NET DEFICITS OF INDIVIDUAL FUNDS
As of June 30, 2023, the following funds have negative fund balances or net position:
Governmental funds:
Special revenue funds:
CDBG Fund $ 298
Continuum of Care Grant Fund 2,182
Emergency Solutions Grant Fund 588
Grant Fund 1,141
Measure M Subregional Fund 226
Permanent Local Housing Allocation Fund 3,513
PW Special Grants Fund 36
Measure R Regional Return Fund 1,882
Police Fund 2,067
Fire Grant Fund 783
Capital projects funds:
CIP Reimbursement Fund $ 1,922
Measure A Fund 474
Proprietary funds:
Internal service funds:
Compensation Insurance Fund $ 12,095
Employee Benefits Fund 1,965
The CDBG Fund, Continuum of Care Grant Fund, Emergency Solutions Grant Fund, Grant Fund, Measure M Subregional Fund, Permanent Local Housing Allocation Fund, PW Special Grants Fund, Measure R Regional Return Fund, Police Fund, Fire Grant Fund, CIP Reimbursement Fund and Measure A Fund are reimbursement type funds.
The City requests reimbursement of actual expenditures. As such, there will always be a timing difference between revenues and expenditures resulting in a deficit, as revenues do not represent available resources.
Compensation Insurance Fund and Employee Benefits Fund – The City will continue to increase the future charges to other funds to eliminate the deficit.
96 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 11 – RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees, and natural disasters. The City retains risks for the following types of liabilities:
workers’ compensation, unemployment insurance, general, auto, dental, medical and vision as well as public liability through separate internal service funds. The City purchased several commercial insurance policies from third-party insurance companies for errors and omissions of its officers and employees, and destruction of assets as well as excess workers’ compensation and general public liability claims. The City also purchases property, aviation, employee dishonesty, law enforcement liability, cyber, DNA lab E & O and fine art insurance. There were no significant settlements or reductions in insurance coverage from settlements for the past three years. The insurance schedule for FY 2022-23 is as follows:
Insurance T
ype
Program
Limits
Deductible/SIR (self-insured retention)
Excess Liability Insurance $ 27,000
$5,000 SIR per occurrence
E & O Employment Practices 2,000 $250 SIR non-safety; $500 SIR safety Excess Workers’ Comp Employer’s Liability Insurance Statutor y $2,000 SIR per occurrence Property Insurance (GWP) 185,431 Various deductibles
Property Insurance (Non-GWP) 531,208 $25 property, $100 flood damage Aviation Insurance (Police Helicopter) 50,000 Various deductibles Employee Dishonesty – Crime Policy, Excess Crime 6,000 $2,000 Single Loss Limit Law Enforcement Liability 3,000 $2,000 per occurrence Cyber Insurance 5,000 $150
DNA Lab – E & O 2,000 $10 Each claim
Art Policy (Fine Arts) 3,000 $1 Each Claim
Operating funds are charged a premium and the internal service funds recognize the corresponding revenue. Claims expenses are recorded in the internal service funds. Premiums are evaluated periodically and increases are charged to the operating funds to reflect recent trends in actual claims experience and to provide sufficient reserve for catastrophic losses.
Claims payable liability has been established in these funds based on estimates of incurred but not reported and litigated claims. Management believes that provisions for claims at June 30, 2023 are adequate to cover the cost of claims incurred to date. However, such liabilities are, by necessity, based upon estimates and there can be no assurance that the ultimate cost will not exceed such estimates. A reconciliation of the changes in the aggregate liabilities for Liability Insurance Fund, Compensation Insurance Fund and Medical Insurance Fund for claims for the current fiscal and the prior fiscal year are as follows:
The City has numerous claims and pending legal proceedings that generally involve accidents regarding its citizens on City property and employment issues. These proceedings are, in the opinion of management, ordinary routine matters incidental to the normal business conducted by the City. In the opinion of management, such proceedings are substantially covered by insurance, and the ultimate disposition of such proceedings are not expected to have a material adverse effect on the City's financial position, results of operations, or cash flows.
Claims payable is primarily liquidated by the respective internal service funds.
Fiscal Year
Beginning
Balance
Claims and
Char
ges
Claim
Payments
Ending
Balance
Due within
One Year
2021-22 $ 75,465 53,199 48,563 80,101 13,159
2022-23 $ 80,101 54,449 50,851 83,699 16,393
97 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 12 – CONTINGENT LIABILITIES AND COMMITMENTS
Power Purchase Agreements
Since 1937, the City has held capacity and energy rights to the hydropower generation from the Hoover Power Plant through contracts with the U.S. Bureau of Reclamation (Bureau) and the U. S. Department of Energy Western Area Power Administration (Western). As a contractual partner with the Bureau and Western, the City has the right to a share of the power generated by the Hoover Power Plant.
The City’s long-term contract for Hoover Power, last renewed in 1987, expired on September 30, 2017. However, as approved by the City Council on August 23, 2016, they were replaced by a new Electric Services Contract with the United States Department of Energy Western Area Power Administration (“Western”) and an Amended and Restated Implementation Services Agreement with Western, the United States Bureau of Reclamation, and the Boulder Canyon Project contractors, for the purchase of energy and capacity from the Boulder Canyon Project (commonly known as Hoover Dam). The current Electric Services Contract allows the City continued ownership share in the Hoover Power Plant and the continued right to purchase power and capacity from the Hoover Power Plant, for a term of fifty years beginning on October 1, 2017 through September 30, 2067. The City is entitled to 33 MW.
In August 2003, the City entered into a 25-year contract, cancelable after 20 years, with PPM Energy, Inc. for the purchase of 9 megawatts of capacity from wind-powered resources in California. The City began taking delivery of the energy on September 1, 2003. The project will terminate on December 31, 2023.
In November 2007, City Council approved a power purchase agreement with SCPPA for the purchase of 20 megawatts of renewable energy from Pebble Springs Wind Generation Facility for a term of 18-years. The project began commercial operation in January 2009.
In September 2014, the City entered into a 25-year contract with Skylar Resources L.P. for the purchase of 50 megawatts of firmed solar-generated electric power generated from a solar facility within Western Electricity Coordinating Council (WECC) designated by Skylar, with a guarantee by the seller that at least fifty percent of 50 MW/hour to qualify as Portfolio Content Category 1 (PCC1) renewable energy on an annual basis. In November 2015, the transaction was bifurcated into 2 separate agreements. The first agreement was a four-year contract with Morgan Stanley Capital Group, Inc. (MSCG) from December 1, 2015 through December 31, 2019. The second agreement was a 21-year contract with Skylar from January 1, 2020 through November 30, 2040. In October 2017, the existing power purchase agreement was terminated and replaced with a 21-year Western Systems Power Pool (WSPP) Power Purchase Agreement (PPA) to increase renewable and carbon-free energy deliveries from 50% to 75%.
As of October 1st, 2021, the 21-year agreement executed in October 25, 2017 was assigned to Townsite Solar, LLC (“Townsite”), for the remaining 19 years of the PPA term. Under the Agreement, Townsite will continue to provide Glendale with 292,000 MWh of renewable and carbon-free energy per year, through November 30, 2040.
In February 2020, City Council approved a power purchase agreement with SCPPA for the purchase of 3 megawatts of renewable energy from Whitegrass No. 1 Geothermal Energy Project for a term of 25-years. The project began commercial operation in April 2020.
In February 2020, City Council approved a power purchase agreement with SCPPA for the purchase of 12.5 megawatts of renewable energy from Star Peak Geothermal Energy Project for a term of 24-years. The project began commercial operation in September 2022.
In December 2019, the City Council authorized a 25-year Power Sales Agreement (PSA) with the Southern California Public Power Authority (SCPPA) for the purchase of 12.5% renewable solar energy, battery energy storage system (BESS), and environmental attributes of the Eland 1 Solar and Storage Center.
98 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Upon execution of the Agreement, the City’s entitlement share was 25 MW of solar energy and 12.5MW/50MWh of BESS. In January 2020, the project participants exercised the option to increase the BESS to 150 MW/600 MWh, augmenting the City’s share of the BESS to 18.75MW/75MWh. The facility is located in Kern County, California, with point of delivery at Barren Ridge. In August 2021, Glendale City Council approved to execute a Firm Point-To-Point Transmission Service Agreement with the City of Los Angeles under LADWP’s Open Access Transmission Tariff to provide 25 megawatts (MW) of capacity to transmit Eland Solar and Storage energy to the City of Glendale. The anticipated commercial operation date is in 2025.
Scholl Canyon Landfill
Pursuant to Assembly Bill 2448 and the regulations established by the California Integrated Waste Management Board (Board), landfill operators are required to submit an initial cost estimate of postclosure maintenance and to establish a financial mechanism to demonstrate the availability of funding to conduct postclosure maintenance activities. The City selected a trust fund as the financial mechanism and the Board approved this. The City Treasurer was designated as the trustee to ensure that the City set aside annual required deposits. The City contracts with Los Angeles County Sanitation District (Sanitation District) to operate Scholl Canyon and as part of this contract, the County is responsible for the closure cost of Scholl Canyon. The City is responsible for the postclosure maintenance cost of Scholl Canyon. According to Los Angeles County Sanitation District's records, the permitted capacity filled between August 18, 1989 and July 10, 2022 was 13.56 million tons. The permitted capacity filled between July 11, 2022 and July 10, 2023 was 0.40 million tons. The total permitted capacity as of August 18, 1989 remains 14.75 million tons. Therefore, the City has 0.79 million tons unfilled capacity remaining. Using an inflation factor from the Sanitation Districts of 1.070, the total estimated care postclosure cost is $83,161. Using the data above, the amount of $78,707 is recognized as a long-term liability on the Statement of Net Position.
Accordingly, the portion of the estimated total obligation for landfill postclosure costs that has not been recognized in the financial statements is $4,454. The City records the annual provision for the required landfill deposits as restricted cash in the Landfill Postclosure Fund. At the end of June 30, 2023, the City has set aside $59,504 in the Landfill Postclosure Fund. The total current cost of landfill postclosure care is an estimate subject to changes resulting from inflation, deflation, technology, or changes in applicable laws or regulations.
The Los Angeles County Sanitation Districts operates the Scholl Canyon Landfill through a Joint Powers Agreement (JPA). The City receives revenue from the County Sanitation Districts in the form of quarterly lease payments that is 40% of the Gross Receipts from the operation of the landfill. Gross Receipts is defined in the JPA and excludes diverted materials, and the amount is reduced by any fee, duty, or other charge imposed by the Federal, State, or Local agencies. The JPA also defines Surplus Revenue as Gross Receipts minus operation and maintenance expenses and states that if the Surplus Revenue in any quarter is less than 40% of Gross Receipts, then such discrepancy shall be deemed to be deficient and shall be paid to the City in subsequent quarters. The Los Angeles County Sanitation Districts recently determined that this deficiency occurred which the City currently disputes. There is potential future city obligation of $0 - $3,650 related to this dispute.
General Fund Transfer and Electric Rates Litigation
Background
As of October 31, 2022, the lawsuits challenging the City’s 2013 electric rate plan and the transfer of revenues from the Glendale Water & Power (GWP) Electric Fund to the General Fund have concluded. In 2014, Juan Saavedra and I.B.E.W. Local 18 filed a lawsuit in Los Angeles Superior Court (the “2014 IBEW Lawsuit”) challenging the 2013 electric rate plan and the City’s general fund transfer (“GFT”). The Glendale Coalition for a Better Government (“Coalition”) also filed a lawsuit in 2014 challenging the 2013 electric rate plan and GFT (“2014 Coalition Lawsuit”).
The 2014 IBEW Lawsuit and 2014 Coalition lawsuit were consolidated for purposes of trial (and are sometimes referred to herein collectively as the “2014 Lawsuits”). In October 2020, the City received a favorable ruling in the remand trial of the 2014 Lawsuits, resulting in a determination that the City will not have to make any refunds of electric rate revenues or general fund transfers. That decision has been appealed by IBEW.
99 CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
In addition, the Coalition filed a petition for writ of mandate in July 2018 challenging the City’s 2018 electric rates on similar grounds as the 2014 Lawsuit (“2018 Coalition Lawsuit”). The 2018 Coalition Lawsuit was dismissed without prejudice and the statute of limitations tolled until there was a final non-appealable judgment in the 2014 Coalition Lawsuit.
Trial in 2014 Lawsuits
The 2014 Lawsuits challenged GWP’s 2013 electric rate plan which included GFTs. The City Charter provides that the City shall transfer 25% of electric operating revenues to the General Reserve Fund, which may be then transferred to the General Fund, unless the City Council chooses to transfer a lesser percentage to insure the sound financial position of GWP. The City has made the GFT under the authority of its City Charter since it was approved in 1921, although for many years, if not decades, it has chosen to transfer less than 25%.
The 2013 electric rates were challenged primarily on the grounds they violated Proposition 26, in that they constituted a “tax” since they exceeded the cost of providing electric service by including the GFT. In 2016, the trial court concluded that the 2013 electric rates violated Proposition 26 because of the GFT and ordered the City to credit ratepayers in the cumulative amount of the GFTs beginning with FY 2013-14, plus interest. The trial court ordered that credits for any subsequent years would accrue. The trial court also issued a writ of mandate commanding the City to cease to include the GFT in the electric rates charged to consumers unless and until a majority of the Glendale electorate approved the “tax” in the rates.
Appeal in 2014 Lawsuit
The City appealed the trial court’s 2016 decision. While the appeal was pending, the California Supreme Court decided Citizens for Fair REU Rates v. City of Redding (2018) 6 Cal.5th 1, which upheld a similar transfer the City of Redding imposed on its electric utility. Redding’s key holding was that, regardless of transfers, rates do not violate Proposition 26 if total projected rate revenue does not exceed all permissible service costs the utility could charge or if non-rate revenue, such as wholesale revenue, rental income or interest, is sufficient to cover the GFT.
In 2018, the 2nd District Court of Appeal reversed the trial court decision and remanded the judgments to the trial court. Among other things, the appellate court – relying on Redding - found that any invalid “tax” in the 2013 rates was not necessarily equivalent to the GFT but instead existed only to the extent that rate revenues exceed lawful expenses of the utility.
The appellate court also found that to the extent the City maintained a "tax" prior to Propositions 26's adoption in 2010, it could continue to maintain said “tax” at the same rate going forward. In other words, any tax that existed in the City’s rates in 2010 was grandfathered. The appellate court reversed the portion of the trial court’s judgement declaring the 2013 rates invalid and requiring rebates in the amount of the annual transfers, and remanded the 2014 Lawsuit to the trial court to make certain factual determinations regarding the amount of the tax, if any, and consideration of the impacts of non-rate and other revenues to fund the transfer.
Remand Trial
On August 6, August 20, and October 8, 2020, the trial court held the remand trial. The trial court found that the City’s 2013 rates did not increase the tax implicit in the electric rates beyond what was grandfathered in 2006 (when the Council approved the last rate plan prior to the adoption of Proposition 26) and therefore no monetary refunds are warranted. First, the court found that the grandfathered tax implicit in the 2006 electric rates was 9.42%. Second, the court considered what rate the City imposed in 2013. The court also found that the City intended the rate increase to substantially increase its reserves, which were depleted at the time.
Third, the court agreed with the City that it could use its non-rate miscellaneous revenue from rents and grants to partially fund the GFT under Redding. Using staff’s projections for the utility’s net income, the court found the implicit tax was never projected to exceed approximately 8% over each of the five years the 2013 rates would be in place.
The 2013 rates therefore did not exceed the amount grandfathered from 2006 (9.42%) and therefore the court would not order the credits it had previously, or in any amount.
100
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
In sum, rather than being required to refund some $20,000 over five years (e.g., some $100,000), the trial court ordered no monetary remedy whatsoever. Additionally, there is no longer any order in effect requiring the City to cease making GFTs or requiring voter approval to make such transfers. The trial court entered in the remand trial on November 20, 2020.
Settlement of 2014 Coalition Lawsuit and 2018 Coalition Lawsuit
On January 22, 2021, the City and the Coalition entered a settlement agreement that resolved the 2014 Coalition Lawsuit and the 2018 Coalition Lawsuit. In exchange for payment of Coalition’s attorneys’ fees and costs in the amount of $200, the Coalition agreed to forego an appeal of the judgment in the 2014 Coalition Lawsuit and not to re- file a lawsuit for its claims made in the 2018 Coalition Lawsuit. The settlement resolved any legal challenges to the 2018 rates.
IBEW Appeal and Conclusion of Case
The Saavedra/IBEW petitioners appealed the judgment in the remand trial in the 2014 IBEW Lawsuit. On October 31, 2022, the Court of Appeal, in an unpublished decision, upheld the decision of the trial court, finding that there were no errors in the trial court’s methodology or calculation in determining that City was not required to provide any monetary refunds or credits. IBEW did not seek rehearing or Supreme Court review of the Court of Appeal’s October 31, 2022 decision; thus the Saavedra case is final. There are no ongoing challenges to the City’s GFT.
NOTE 13 – JOINTLY GOVERNED ORGANIZATIONS
Joint Powers Agreement for Interagency Communications Interoperability System Authority
The Interagency Communications Interoperability System Authority (ICI System) was created through a Joint Powers Agreement in 2003. The City is an active governance member of the ICI System Authority. Other governance member jurisdictions include the cities of Beverly Hills, Burbank, Culver City, Montebello, Pasadena, Pomona, Santa Monica, the Interoperability Network of South Bay (INSB) JPA, and the ComNet JPA of the San Gabriel Valley. The goal of the ICI System is to enable all regional emergency resources to communicate with one another. The ICI System Authority supports more than 70 Fire and Police agencies and 30 9-1-1 Dispatch Centers in the region by providing their primary mission critical communications, all of which are seamlessly networked through a System Master Site based in Glendale. With more than 22,000 local government radios affiliated to the network, the ICI System is one of the largest in the nation.
Joint Powers Authority - California Community Housing Agency
The California Community Housing Agency (CalCHA) is a joint power agency created in January 2019 to provide housing for low and moderate income households. CalCHA issues tax-exempt government bonds to acquire existing market-rate apartment complexes. CalCHA generally targets Class A apartment complexes valued at $100,000 or greater, similar to market-rate projects recently constructed in Glendale’s Downtown Specific Plan. Once owned by CalCHA, these complexes are converted to income and rent-restricted units for low and moderate income households. CalCHA is able to competitively bid on these market rate projects due in large part to their tax-exempt status and below market-rate financing costs.
In Glendale, CalCHA’s program would generally address households with annual incomes ranging from $44 (1-person household at 60% AMI) to $135 (5-person household at 120% AMI). Under CalCHA’s program, no existing tenants are displaced. As market-rate units naturally turnover, they are re-leased to low and moderate income households with income and rent restrictions for the life of the bonds. The restricted rents are capped at no more than 35% of the applicable percentage of AMI (i.e. 60%, 80%, 100% and 120%). Additionally, annual rent increases are capped at no more than 4%. This is less than the rent increases under AB1482, the recently adopted State tenant protection legislation. The bonds issued by CalCHA to acquire properties in Glendale do not affect the City’s bonding capacity nor is the City or Housing Authority responsible in any way for the debt service of the bond.
101
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
The City of Glendale has the option of acquiring the property from the JPA beginning in year 15 for the amount of the outstanding debt. The City can also wait until the bonds are paid off, typically in year 30, and assume ownership of the asset at no expense other than transactional costs.
To date, CalCHA has acquired two market-rate projects in Glendale. These projects include Next on Lex with 494 apartment units and Brio Apartments with 205 units, for a total of 699 rental apartment units.
Joint Powers Authority – California Statewide Communities Development Authority – Community Improvement Authority
The California Statewide Communities Development Authority – Community Improvement Authority (CSDCA-CIA) is a joint power agency created in October 2020 to provide housing for low and moderate income households. Like CalCHA, CSCDA-CIA also issues tax-exempt government bonds to acquire existing market-rate apartment complexes, targeting Class A properties valued at $100,000 or greater. Once owned by CSCDA-CIA, these complexes are converted to income and rent-restricted units for low and moderate income households. CalCHA is able to competitively bid on these market rate projects similarly to CalCHA because of their tax-exempt status and below market-rate financing costs.
In Glendale, CSCDA-CIA’s program targets households with annual incomes ranging from $44 (1-person household at 60% AMI) to $135 (5-person household at 120% AMI). Under the program, no existing tenants are displaced. As market-rate units naturally turnover, they are re-leased to low and moderate income households with income and rent restrictions for the life of the bonds. The restricted rents are capped at no more than 35% of the applicable percentage of AMI (i.e. 60%, 80%, 100% and 120%). Additionally, annual rent increases are capped at no more than 4%. This is less than the rent increases under AB1482, the recently adopted State tenant protection legislation. The bonds issued by CalCHA to acquire properties in Glendale do not affect the City’s bonding capacity nor is the City or Housing Authority responsible in any way for the debt service of the bond.
The City of Glendale has the option of acquiring the property from the JPA beginning in year 15 for the amount of the outstanding debt. The City can also wait until the bonds are paid off, typically in year 30, and assume ownership of the asset at no expense other than transactional costs.
To date, CSCDA-CIA has acquired three market-rate projects in Glendale. These projects include Altana with 507 apartment units, hue39 (formerly Brio) with 143 units, and Towne at Glendale with 126 units, for a total of 776 rental apartment units.
As of January 1, 2022 CSDCA-CIA has issued bonds for the acquisition of Towne at Glendale. The CSCDA Community Improvement Authority Essential Housing Senior Lien Revenue Bonds, Series 2022A (Towne-Glendale) (Social Bonds) (the “Series A Bonds”), (ii) the CSCDA Community Improvement Authority Essential Housing Mezzanine Lien Revenue Bonds, Series 2022B (Towne-Glendale) (Social Bonds) (the “Series B Bonds”), and (iii) the CSCDA Community Improvement Authority Essential Housing Subordinate Lien Revenue Bonds, Series 2022C (the “Series C Bonds”), with such other series and sub-series designations as may be set forth in the Indenture, originally issued to finance Owner’s acquisition of the Project and related transaction costs.
Joint Powers Authority – Burbank-Glendale-Pasadena Regional Housing Trust
SB 1177 was signed into law by Governor Newsom and became effective January 1, 2023. The bill authorized the creation of the Burbank-Glendale-Pasadena Regional Housing Trust, a joint powers authority, of the Cities of Burbank, Glendale, and Pasadena, with the stated purpose of funding housing to assist the homeless population and persons and families of extremely low, very low, low, and moderate income. The bill also authorized the Burbank- Glendale-Pasadena Regional Housing Trust to fund the planning and construction of housing, receive public and private financing and funds, and authorize and issue bonds. The governance structure of the Trust consists of a Board of Directors with one elected official from each of the three cities.
102
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Joint Power Agreement for San Fernando Valley Council of Governments
The San Fernando Valley Council of Governments (SFVCOG) was created through a Joint Power Agreement in 2010. The City is an active member of the SFVCOG. Other member jurisdictions currently participating include the City of Los Angeles with seven board representatives for each City Council district located entirely or partially in the San Fernando Valley, two board representatives from each of the Los Angeles County Supervisorial Districts located entirely or partially in the San Fernando Valley, and one representative each from the Cities of Burbank, Glendale, San Fernando and Santa Clarita. In its official capacity, the SFVCOG acts as a planning sub-region for the Southern California Association of Governments (SCAG) and focuses on promoting better regional coordination of planning and transportation planning efforts in the San Fernando Valley. The SFVCOG also engages in local, regional, state and federal grant development programming for the region.
Joint Power Agreement for Arroyo Verdugo Communities
The Arroyo Verdugo Communities was created through a Joint Power Agreement in 2017. The City is an active member of the Arroyo Verdugo Communities. Other members include City of Burbank, City of La Canada Flintridge, City of Pasadena, City of South Pasadena and County of Los Angeles. The purpose of the creation of the Joint Power Authority is to provide a vehicle for the members to coordinate regional and cooperative planning, primarily in the area of transportation and determining how to prioritize regional transportation projects and allocation of Measure M sub-regional funds and other public monies, including building a more connective transportation system between the member agencies.
Joint Power Agreement for Verdugo Consortium
The City, along with the Cities of Burbank and La Canada Flintridge, established a joint power agreement on December 14, 1999, named the Verdugo Consortium (the Consortium) for the purpose of receiving a Workforce Innovation and Opportunity Act (WIOA) allocation and administering the WIOA program as a single participation jurisdiction. This agreement designates an approved entity which consists of one elected official from each of the three cities, to ratify appointments for members of the Verdugo Workforce Development Board (VWDB). The City, as the Consortium’s designated administrative entity, has assumed the overall responsibility for ensuring that the Consortium is compliant with all of VWDB’s grant funded program requirements, including the receipt, disbursement, accounting for all grant funded programs, and matching funds, including WIOA.
“Take or Pay” Contracts
The City has entered into twelve “Take or Pay” contracts, which require payments to be made whether or not projects are completed or operable, or whether output from such projects is suspended, interrupted or terminated. Such payments represent the City’s share of current and long-term obligations. Payment for these obligations is expected to be made from operating revenues received during the year that payment is due. These contracts provide for current and future electric generating capacity and transmission of energy for City residents. Through these contracts, the City purchased approximately 46% of its total energy requirements during FY 2022-23. With a few exceptions, the City is obligated to pay the amortized cost of indebtedness regardless of the ability of the counterparty to provide electricity. The original indebtedness will be amortized by adding the financing costs to purchase energy over the life of the contract. All of these agreements contain “step-up” provisions obligating the City to pay a share of the obligations of any defaulting participant.
103
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
• The Intermountain Power Agency (IPA), a subdivision of the State of Utah, was formed in January 1974 to finance the construction of a 1,400 megawatt coal-fired generating plant, consisting of two generating units located near Delta, Utah and associated transmission lines, called the Intermountain Power Project (IPP). The project began uprating of the two generating units in early 2003. When the uprating was finished in March 2004, it increased the capacity of the plant from 1,400 megawatts to 1,800 megawatts. The City through contract is obligated for 30 megawatts or 1.70% of the generation. In addition, the City entered into an “Excess Power Sales Agreement” with the IPA, agent for the Utah Municipal Purchasers and the Cooperative Purchasers, which entitles the City to additional shares that can vary from year to year. As of June 30, 2023, Glendale’s excess entitlement share is 0.50%. The City’s total obligation from IPP is up to 39 megawatts. The current agreement expires in 2025.
Activities to repower the 1,800 megawatts coal-fired generation facility with 840 megawatts natural gas-fired combined cycle generation commenced in 2019. On July 23, 2019, the City Council approved GWP’s recommendation for continued participation in the IPP project which enabled Glendale to retain its 4.166% share of the plant and increase its share of the Southern Transmission System (STS) to 5.278%, providing Glendale 35 megawatts of generation and 127 megawatts of transmission capacity through 2077. The IPP Repowering project also includes the plan to fuel the plant entirely with green hydrogen by 2045, beginning with 30% in 2025.
The City joined the Southern California Public Power Authority (SCPPA) on November 1, 1980. This authority, consisting of the California cities of Anaheim, Azusa, Banning, Burbank, Cerritos, Colton, Glendale, Los Angeles, Pasadena, Riverside, Vernon, and the Imperial Irrigation District, was formed for the purpose of financing future power resources. The City has entered into eleven projects with SCPPA.
• The first of the SCPPA projects is a 3,810 megawatt nuclear fuel generation plant in Arizona. The Palo Verde (PV) nuclear project consists of 3 units, each having an electric output of approximately 1,270 megawatts.
SCPPA has purchased approximately 225 megawatts of capacity and associated energy (approximately 5.91% of total Palo Verde output), of which the City receives 9.9 megawatts or 4.40% of SCPPA’s entitlement. As of June 30, 2023, Glendale’s share is 4.40%.
• The second project financed through SCPPA is the Southern Transmission System (STS) that transmits power from the coal-fired IPP to Southern California. The 500 kV DC line is currently rated at 2,400 megawatts. The City’s share of the line is 2.27% or approximately 55 megawatts. As of June 30, 2023, Glendale’s share is 2.27%.
In October 2022, the City Council approved Motion authorizing execution of the Renewal Agreement for the Acquisition of Capacity, and Renewal Transmission Service Contract with SCPPA for STS, including any ancillary documents to administer and effectuate the implementation of these agreements. As a result, the City will acquire in 2027, transmission capacity of 5.278% through 2077.
• The third project financed through SCPPA is the acquisition of 41.80% ownership interest in a coal-fired 497 megawatt unit in San Juan Generating Station, Unit 3 (SJ), located in New Mexico. SCPPA members are entitled to 208 megawatts. The City is obligated for 20 megawatts or 9.80% of the SCPPA entitlement. In July 2015, the City Council authorized the SCPPA to execute, on Glendale’s behalf, a set of three agreements that collectively shut down Unit 3 at the coal-fired San Juan Power Plant in New Mexico at the end of December 2017. The termination of operations at San Juan Unit 3 will help GWP achieve California state goals regarding the reduction of greenhouse gas emissions. Under the Mine Reclamation and Plant Decommissioning Agreements, Glendale shares the responsibility for any liability arising from operations after the December 2017 exit date. As such a liability for decommissioning the power plant cannot be determined at this time. As of June 30, 2023, Glendale’s share is 9.80%.
• The fourth project financed through SCPPA is Mead-Adelanto Project (MA). The project consists of a 202-mile 500 kV AC transmission line extending between the Adelanto Substation in Southern California and the Marketplace Substation in Nevada, and the development of the Marketplace Substation at the southern Nevada terminus approximately 17 miles southwest of Boulder City, Nevada. The initial transfer capability of
104
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
the Mead-Adelanto Project is estimated at 1,200 megawatts. SCPPA members in the project are entitled to 815 megawatts. The City is obligated for 90 megawatts or 11.04% of the SCPPA entitlement. As of June 30, 2023, Glendale’s share is 11.04%.
• The fifth project financed through SCPPA is Mead-Phoenix Project (MP). The project consists of a 256-mile long 500 kV AC transmission line from the Westwing Substation in the vicinity of Phoenix, Arizona to the Marketplace Substation approximately 17 miles southwest of Boulder City, Nevada with an interconnection to the Mead Substation in southern Nevada. The project consists of three separate components: the Westwing- Mead Component, the Mead Substation Component, and the Mead-Marketplace Component. The City’s participation shares in the components range from 11.76% to 22.73%. The Mead-Phoenix Project in conjunction with the Mead-Adelanto Project provides an alternative path for the City’s purchases from the Palo Verde Nuclear Generating Station, San Juan Generating Station and Hoover Power Plant. These transmission lines also provide access to the southwest U.S. where economical coal energy is readily available. As of June 30, 2023, Glendale’s share is 14.80%.
• The sixth project financed through SCPPA is the Magnolia Power Project (MPP) located on Burbank Water and Power’s generation station complex adjacent to Magnolia Boulevard in Burbank, California. The project consists of a combined cycle natural gas-fired generating plant with a nominally rated net base capacity of 242 megawatts. The City is obligated for 40 megawatts or 16.53% of the project’s output. As of June 30, 2023, Glendale’s generation cost share is 16.53% and indenture cost share is 17.25%.
• The seventh project financed through SCPPA is Natural Gas Prepaid Project (NGPP). In August 2007, the City entered into a 30-year Prepaid Natural Gas Agreement with the SCPPA. The agreement will provide a secure and long-term supply of natural gas up to 3,500 MMBtu per day at a discounted price below a spot market price index. The delivery of natural gas started in July 2008. As of June 30, 2023, Glendale’s share is 23.00%.
• The eighth project financed through SCPPA is the Linden Wind Energy Project (LIN) located in Klickitat County in the state of Washington. The facility is a 50 megawatts capacity wind farm. The 25-year power purchase agreement with SCPPA is for the purchase of 10.00% (approximately 5 megawatts) of the capacity of the project. The City has sold its output entitlement share to Los Angeles Department of Water and Power (LADWP) but remains responsible for all the obligations associated with its participation in the Power Sales Agreements in the event LADWP should default. As of June 30, 2023, Glendale’s share is 10.00%.
• The ninth project financed through SCPPA is the Tieton Hydropower Project (THP) located near the town of Tieton in Yakima County, Washington. The Project has a capacity of approximately 14 megawatts. The Project includes a 115 kV transmission line, approximately 22-miles long, connecting the generating station with PacifiCorp’s Tieton Substation. The Electric Utility is obligated for approximately 6.8 megawatts or 50.00% of the project’s output. As of June 30, 2023, Electric Utility’s share is 50.00% (THP).
• The tenth project financed through SCPPA is Windy Point/Windy Flats project (WP) located in Klickitat County in the state of Washington. The Project has a maximum capacity of approximately 262.2 megawatts. The City Council approved a 20-year power purchase agreement with SCPPA for the purchase of approximately 20 megawatts or 7.63% of the renewable energy output from the Project. The City has sold its output entitlement share to Los Angeles Department of Water and Power (LADWP) but remains responsible for all the obligations associated with its participation in the Power Sales Agreements in the event LADWP should default. As of June 30, 2023, Glendale’s share is 7.63%.
• The eleventh project financed through SCPPA is the Milford II Wind Project (MIL2) located near Beaver and Millard County, Utah. The Project has a capacity of approximately 102 megawatts. The City Council approved a 20-year power purchase agreement with SCPPA for the purchase of approximately 5 megawatts or 4.90% of the Project’s output. The City has sold its output entitlement sha re to Los Angeles Department of Water and
Power (LADWP) but remains responsible for all the obligations associated with its participation in the Power Sales Agreements in the event LADWP should default. As of June 30, 2023, Glendale’s share is 4.90%.
105
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
Take-or-Pay commitments expire upon contract expiration date or final maturity of outstanding bonds for each project, whichever is later. Final fiscal year contract expirations are as follows:
Project
Contract
Expiration
Date
Glendale’s
Share
Intermountain Power Project (IPP) * 2027 2.12%
Palo Verde Project (PV) 2030 4.40%
Southern Transmission System (STS) 2027 2.27%
Mead-Adelanto Project (MA) 2030 11.04%
Mead-Phoenix Project (MP) 2030 14.80%
Magnolia Power Project (MPP) 2036 17.25%
Natural Gas Prepaid Project (NGPP) 2035 23.00%
Linden Wind Energy Project (LIN) 2035 10.00%
Tieton Hydropower Project (THP) 2040 50.00%
Windy Point/Windy Flats Project (WP) 2030 7.63%
Milford II Wind Project (MIL2) 2031 4.90%
*IPP debt service share
A summary of the City’s “Take or Pay” debt service commitment and the final maturity date as of June 30, 2023:
Fiscal Year IPP STS MPP NGPP LIN THP WP MIL2 Total 2024 $ 984 1,594 3,335 2,950 933 1,382 1,866 495 13,539 2025 850 730 3,363 5,760 4,379 1,383 13,002 495 29,962 2026 850 729 3,388 6,043 246 2,130 286 495 14,167 2027 1,355 727 3,418 6,054 246 1,232 286 494 13,812 2028 1,877 728 3,448 6,334 246 1,233 286 494 14,646 2029 - 2033 13,130 - 17,736 35,048 2,707 6,142 6,437 1,969 83,169 2034 - 2038 13,095 - 17,619 16,296 2,819 6,118 - - 55,947 2039 - 2043 13,033 - - - - 3,675 - - 16,708 2044 - 2046 7,787 - - - - - - - 7, 787 Total $ 52,961 4,508 52,307 78,485 11,576 23,295 22,163 4,442 249,737
In addition to debt service, the City’s entitlement requires the payment for fuel costs, operating and maintenance (O&M), administrative and general (A&G), and other miscellaneous costs associated with the generation and transmission facilities discussed above. These costs do not have a similar structured payment schedule as debt service and vary each year. The costs incurred for fiscal year 2023 and 2022 are as follows:
Fiscal
Year IPP PV STS SJ M
A MP MPP NGPP LIN THP WP MIL2 Total
2023 $6,907 2,795 588 2 338 204 5,635 8,085 - 958 - - 25,512 2022 $6,912 2,895 334 7 322 268 6,328 4,682 - 1,046 - - 22,794
106
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 14 – PRONOUNCEMENTS ISSUED BUT NOT YET IMPLEMENTED
The Governmental Accounting Standards Board (GASB) has issued several pronouncements that may impact future financial presentations. Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statements of the City.
• GASB Statement No. 99 – Omnibus 2022. The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practices issues that have been identified during implementation and application of certain GASB statements and (2) accounting and financial reporting for financial guarantees. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023 (FY 2023-24).
• GASB Statement No. 100 – Accounting Changes and Error Corrections-an amendment of GASB Statement NO. 62. The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This statement is effective for fiscal years beginning after June 15, 2023 (FY 2023-24).
• GASB Statement No. 101 – Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. This statement is effective for fiscal years beginning after December 15, 2023 (FY 2024-25).
NOTE 15 – IMPLEMENTATION OF PRONOUNCEMENTS
The city has adopted and implemented, where applicable, the following GASB Statements during the year ended June 30, 2023:
• GASB Statement No. 93 – Replacement of Interbank Offered Rates. The objective of this statement is to address those and other accounting and financial reporting implications that result from the replacement of an IBOR. The statement, except for paragraphs 11b,13, and 14, is effective for periods beginning after June 15, 2020. The paragraph 11b is effective for fiscal years ending after December 31, 2021.
• GASB Statement No. 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). The statement is effective for fiscal years beginning after June 15, 2022. The implementation of this statement did not affect the net position on July 1, 2022.
• GASB Statement No. 96 – Subscription-Based Information Technology Arrangements. The objective of this statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The statement is effective for fiscal years beginning after June 15, 2022. The implementation of this statement did not affect the net position on July 1, 2022.
• GASB Statement No. 99 – Omnibus 2022. The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practices issues that have been identified during implementation and application of certain GASB statements and (2) accounting and financial reporting for financi
al guarantees. The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022.
107
CITY OF GLENDALE
Notes to the Basic Financial Statements
Fiscal Year Ended June 30, 2023
(in thousands)
NOTE 16 – SUBSEQUENT EVENTS
In an effort to lower its liability insurance premium cost and lower its Self-Insured Retention, on June 27, 2023, Council approved the authorization to Join Public Risk Innovation, Solutions, and Management (PRISM) Joint Powers Authority and the annual Insurance Policy Renewals for Fiscal Year 2023-24 (effective July 1, 2023). This would result in lowering its self-insured retention from $5 million back down to $2 million and increase coverage limits for a couple of years.
108
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
2023 2022 2021 2020
Total pension liability
Service cost $ 18,657 17,002 16,683 16,372
Interest on the total pension liability 86,698 85,712 83,093 80,133 Differences between expected and actual experience (19,997) (2,379) 3,355 10,478 Changes of assumptions 37,616 - - - Benefit payments, including refunds of
employee contributions (65,188) (61,690) (60,158) (57,071) Net change in total pension liability 57,786 38,645 42,973 49,912 Total pension liability - beginning 1,262,140 1,223,495 1,180,522 1,130,610 Total pension liability - ending (A) 1,319,926 1,262,140 1,223,495 1,180,522 Plan fiduciary net position
Plan to plan resource movement - - (8) - Contributions from the employer 38,620 36,495 29,257 24,992 Contributions from employees 10,491 11,011 11,249 10,176 Net investment income (81,807) 202,381 43,263 54,849 Benefit payments, including refunds of
employee contributions (65,188) (61,690) (60,158) (57,071) Administrative expense (675) (895) (1,232) (600) Other miscellaneous income/(expense) - - - 2 Net change in fiduciary net position (98,559) 187,302 22,371 32,348 Plan fiduciary net position - beginning 1,083,436 896,134 873,763 841,415 Plan fiduciary net position - ending (B) 984,877 1,083,436 896,134 873,763 Net pension liability - ending (A) - (B) $ 335,049 178,704 327,361 306,759 Plan fiduciary net position
as a percentage of the total pension liability 74.62% 85.84% 73.24% 74.01% Covered payroll $ 101,450 101,565 99,009 95,277 Net pension liability as a percentage of covered payroll 330.26% 175.95% 330.64% 321.97% Measurement date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Note:
Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Fiscal Year
109
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
2019 2018 2017 2016 2015
Total pension liability
Service cost $ 15,956 15,513 13,413 14,372 14,951 Interest on the total pension liability 76,746 74,508 73,104 71,411 69,351 Differences between expected and actual experience 1,240 (11,313) (12,487) (8,835) - Changes of assumptions (6,403) 62,163 - (17,578) - Benefit payments, including refunds of
employee contributions (54,969) (52,599) (51,297) (50,059) (47,552) Net change in total pension liability 32,570 88,272 22,733 9,311 36,750 Total pension liability - beginning 1,098,040 1,009,768 987,035 977,724 940,974 Total pension liability - ending (A) 1,130,610 1,098,040 1,009,768 987,035 977,724 Plan fiduciary net position
Plan to plan resource movement (2) 2 - (25) - Contributions from the employer 22,006 18,558 16,517 13,344 14,431 Contributions from employees 8,996 8,518 8,092 8,142 8,202 Net investment income 67,307 82,439 3,709 17,215 117,615 Benefit payments, including refunds of
employee contributions (54,969) (52,599) (51,297) (50,059) (47,552) Administrative expense (1,249) (1,101) (469) (881) - Other miscellaneous income/(expense) (2,372) - - - - Net change in fiduciary net position 39,717
55,817 (23,448) (12,264) 92,696 Plan fiduciary net position - beginning 801,698 745,881 769,329 781,593 688,897 Plan fiduciary net position - ending (B) 841,415 801,698 745,881 769,329 781,593 Net pension liability - ending (A) - (B) $ 289,195 296,342 263,887 217,706 196,131 Plan fiduciary net position
as a percentage of the total pension liability 74.42% 73.01% 73.87% 77.94% 79.94% Covered payroll $ 92,799 90,627 86,558 91,786 91,275 Net pension liability as a percentage of covered payroll 311.64% 326.99% 304.87% 237.19% 214.88% Measurement date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Note:
FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous Plan Fiscal Year
110
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan 2023 2022 2021 2020
Total pension liability
Service cost $ 17,490 15,510 15,682 15,196 Interest on the total pension liability 66,942 64,856 62,988 60,331 Differences between expected and actual experience (2,699) (5,898) 5,391 4,900 Changes of assumptions 33,196 - - - Benefit payments, including refunds of
employee contributions (49,777) (47,743) (45,366) (42,663) Net change in total pension liability 65,152 26,725 38,695 37,764 Total pension liability - beginning 955,815 929,090 890,395 852,631 Total pension liability - ending (A) 1,020,967 955,815 929,090 890,395 Plan fiduciary net position
Plan to plan resource movement - - 8 - Contributions from the employer 35,100 33,085 28,464 25,371 Contributions from employees 5,499 5,285 5,116 5,008 Net investment income (56,694) 139,596 29,762 37,580 Benefit payments, including refunds of
employee contributions (49,777) (47,743) (45,366) (42,663) Administrative expense (465) (615) (844) (410) Other miscellaneous income/(expense)
- - - 1
Net change in fiduciary net position (66,337) 129,608 17,140 24,887 Plan fiduciary net position - beginning 745,703 616,095 598,955 574,068 Plan fiduciary net position - ending (B) 679,366 745,703 616,095 598,955 Net pension liability - ending (A) - (B) $ 341,601 210,112 312,995 291,440 Plan fiduciary net position
as a percentage of the total pension liability
66.54% 78.02% 66.31% 67.27%
Covered payroll $ 54,640 53,408 53,105 51,155 Net pension liability as a percentage of covered payroll 625.18% 393.41% 589.39% 569.72% Measurement date June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 Note:
FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Fiscal Year
111
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
2019 2018 2017 2016 2015
Total pension liability
Service cost $ 14,872 14,641 12,975 13,038 13,249 Interest on the total pension liability 57,734 56,003 54,489 52,434 50,558 Differences between expected and actual experience (3,943) (7,654) (3,055) (5,684) - Changes of assumptions (3,509) 47,703 - (13,128) - Benefit payments, including refunds of
employee contributions (40,017) (38,186) (36,522) (34,522) (32,654) Net change in total pension liability 25,137 72,507 27,887 12,138 31,153 Total pension liability - beginning 827,494 754,987 727,100 714,962 683,809 Total pension liability - ending (A) 852,631 827,494 754,987 727,100 714,962 Plan fiduciary net position
Plan to plan resource movement (1) (2) - - - Contributions from the employer 22,548 19,843 18,266 16,789 14,887 Contributions from employees 4,602 4,305 4,517 4,394 4,716 Net investment income 45,731 55,289 2,584 11,489 77,826 Benefit payments, including refunds of
employee contributions (40,017) (38,186) (36,522) (34,522) (32,654) Administrative expense (847) (743) (314) (579) - Other miscellaneous income/(expense) (1,609) - - - - Net change in fiduciary net position 30,407
40,506 (11,469) (2,429) 64,775 Plan fiduciary net position - beginning 543,661 503,155 514,624 517,053 452,278 Plan fiduciary net position - ending (B) 574,068 543,661 503,155 514,624 517,053 Net pension liability - ending (A) - (B) $ 278,563 283,833 251,832 212,476 197,909 Plan fiduciary net position
as a percentage of the total pension liability 67.33% 65.70% 66.64% 70.78% 72.32% Covered payroll $ 49,624 48,322 48,245 48,174 47,373 Net pension liability as a percentage of covered payroll 561.35% 587.38% 521.99% 441.06% 417.77% Measurement date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 Note:
Schedule of Changes in Net Pension Liability and Related Ratios - Safety Plan FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Fiscal Year
112
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
Schedule of Pension Plan Contributions - Miscellaneous Plan 2023 2022 2021 2020
Actuarially determined contributions $ 38,126 35,174 32,308 29,240 Contributions in relation to the actuarially
determined contribution (38,126) (38,613) (32,308) (29,240) Contribution deficiency (excess) - (3,439) - - Covered payroll $ 99,204 101,450 101,565 99,009 Contributions as a percentage of covered payroll 38.432% 34.671% 31.810% 29.533% Notes to Schedule:
Valuation date:
Actuarially determined contribution rates are calculated as of June 30th, three years prior to the end of fiscal year in which contribution are reported.
Actuarial cost method Entry age actuarial cost method
Amortization method
Asset valuation method
Discount rate 7% (net of investment and administrative expenses) Projected salary increases
Inflation
Payroll growth
Retirement age
Note:
FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Fiscal Year
59 A new policy adopted effective for the June 30, 2019 actuarial valuation.
Level percentage of payroll for bases established prior to June 30, 2019.
Level dollar amount for bases established on or after June 30, 2019.
Equal to the fair value of assets.
0.40% to 8.50%, depending on category, entry age, and duration of service.
2.50%
2.75%
113
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
2019 2018 2017 2016 2015
Actuarially determined contributions $ 27,791 23,741 18,972 16,519 13,357 Contributions in relation to the actuarially
determined contribution (27,791) (23,741) (18,972) (16,519) (13,357) Contribution deficiency (excess) - - - - - Covered payroll $ 95,277 92,799 90,627 86,558 91,786 Contributions as a percentage of covered payroll 29.169% 25.583% 20.934% 19.084% 14.552% Notes to Schedule:
Valuation date:
Actuarially determined contribution rates are calculated as of June 30th, three years prior to the end of fiscal year in which contribution are reported.
Actuarial cost method Entry age actuarial cost method
Amortization method
Asset valuation method
Discount rate 7% (net of investment and administrative expenses) Projected salary increases
Inflation
Payroll growth
Retirement age
Note:
FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Schedule of Pension Plan Contributions - Miscellaneous Plan 59 2.75%
2.50%
0.40% to 8.50%, depending on category, entry age, and duration of service.
Equal to the fair value of assets.
A new policy adopted effective for the June 30, 2019 actuarial valuation.
Level percentage of payroll for bases established prior to June 30, 2019.
Level dollar amount for bases established on or after June 30, 2019.
Fiscal Year
114
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
Schedule of Pension Plan Contributions - Safety Plan
2023 2022 2021 2020
Actuarially determined contributions $ 35,210 33,879 31,033 28,471 Contributions in relation to the actuarially
determined contribution (35,210) (35,103) (31,033) (28,471) Contribution deficiency (excess) - (1,224) - - Covered payroll $ 53,207 54,640 53,408 53,105 Contributions as a percentage of covered payroll 66.176% 62.004% 58.106% 53.613% Notes to Schedule:
Valuation date:
Actuarially determined contribution rates are calculated as of June 30th, three years prior to the end of fiscal year in which contribution are reported.
Actuarial cost method Entry age actuarial cost method
Amortization method
Asset valuation method
Discount rate 7% (net of investment and administrative expenses) Projected salary increases
Inflation
Payroll growth
Retirement age
Note:
FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Fiscal Year
54 A new policy adopted effective for the June 30, 2019 actuarial valuation.
Level percentage of payroll for bases established prior to June 30, 2019.
Level dollar amount for bases established on or after June 30, 2019.
Equal to the fair value of assets.
0.97% to 17%, depending on category, entry age, and duration of service.
2.50%
2.75%
115
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
Schedule of Pension Plan Contributions - Safety Plan
2019 2018 2017 2016 2015
Actuarially determined contributions $ 25,487 22,470 19,984 18,257 16,772 Contributions in relation to the actuarially
determined contribution (25,487) (22,470) (19,984) (18,257) (16,772) Contribution deficiency (excess) - - - - - Covered payroll $ 51,155 49,624 48,322 48,245 48,174 Contributions as a percentage of covered payroll 49.823% 45.281% 41.356% 37.842% 34.815% Notes to Schedule:
Valuation date:
Actuarially determined contribution rates are calculated as of June 30th, three years prior to the end of fiscal year in which contribution are reported.
Actuarial cost method Entry age actuarial cost method
Amortization method
Asset valuation method
Discount rate 7% (net of investment and administrative expenses) Projected salary increases
Inflation
Payroll growth
Retirement age
Note:
FY 2015 is the first year of implementation of GASB 68; therefore, only nine years of data are shown.
Fiscal Year
54 A new policy adopted effective for the June 30, 2019 actuarial valuation.
Level percentage of payroll for bases established prior to June 30, 2019.
Level dollar amount for bases established on or after June 30, 2019.
Equal to the fair value of assets.
0.97% to 17%, depending on category, entry age, and duration of service.
2.5%
2.75%
116
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
2023 2022 2021
Total OPEB liability
Service cost $ 43 46 38 Interest on the total OPEB liability 319 400 524 Changes of assumptions (2,420) (520) 2,947 Actual vs. expected experience - (2,760) - Benefit payments (530) (372) (423) Net change in total OPEB liability (2,588) (3,206) 3,086 Total OPEB liability - beginning 15,015 18,221 15,135 Total OPEB liability - ending 12,427 15,015 18,221 Covered-employee payroll $ 168,994 169,684 165,230 Total OPEB liability as a percentage
of covered employee payroll 7.35% 8.85% 11.03%
Measurement date June 30, 2022 June 30, 2021 June 30, 2020 Notes:
(1) FY 2018 is the first year of implementation of GASB 75; therefore, only six years of data is shown. (2) There are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan.
Schedule of Changes in Total OPEB Liability and Related Ratios Fiscal Year
117
CITY OF GLENDALE
Required Supplementary Information
Last Ten Fiscal Years
(in thousands)
2020 2019 2018
Total OPEB liability
Service cost $ 44
46 57
Interest on the total OPEB liability 582 556 493
Changes of assumptions 543 (619) (1,790)
Actual vs. expected experience (772) - -
Benefit payments (476) (507) (487)
Net change in total OPEB liability (79) (524) (1,727) Total OPEB liability - beginning 15,214 15,738 17,465 Total OPEB liability - ending 15,135 15,214 15,738
Covered-employee payroll $ 160,653 156,117 150,107
Total OPEB liability as a percentage
of covered employee payroll 9.42% 9.75% 10.48%
Measurement date June 30, 2019 June 30, 2018 June 30, 2017 Notes:
(1) FY 2018 is the first year of implementation of GASB 75; therefore, only six years of data is shown. (2) There are no assets accumulated in a trust that meets the criteria of GASB codification P22.101 or P52.101 to pay related benefits for the OPEB plan.
Schedule of Changes in Total OPEB Liability and Related Ratios Fiscal Year
118
NONMAJOR GOVERNMENTAL FUNDS
This section of the Annual Comprehensive Financial Report provides information on each individual governmental fund, except for those major governmental funds reported in the basic financial statements:
General Fund, Housing Assistance Fund, and Capital Improvement Fund. This section includes special revenue funds, debt service funds, and capital projects funds.
Exhibit G-1
CITY OF GLENDALE
Combining Governmental Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
(amounts expressed in thousands)
Special Revenue
Funds
Debt Service
Fund
Capital Projects
Funds
Total Nonmajor
Governmental Funds
ASSETS
Pooled cash and investments 123,245 $ 10,281$ 137,388$ 270,914$ Restricted cash and investments -
-
59,504 59,504
Leases receivable 22,067 -
-
22,067
Accounts receivable, net 21,803 -
3,383 25,186
Interest receivable 188
-
383
571
Loans receivable 6,760 -
-
6,760
Prepaid items 76
-
-
76 Total assets 174,139 10,281 200,658 385,078
LIABILITIES
Accounts payable 6,144 -
850
6,994
Deposits 114
-
-
114
Due to other funds 10,902 -
473
11,375
Unearned revenues 9,176 -
10,454 19,630
Wages and benefits payable 647
-
37 684
Total liabilities 26,983 -
11,814 38,797
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases 21,590 -
-
21,590
Unavailable revenues 20,198 -
2,398 22,596
Total deferred inflows of resources 41,788 -
2,398 44,186
Total liabilities and deferred inflows of
resources 68,771 - 14,212 82,983
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid 76
-
-
76 Restricted
Air quality improvement 1,148 -
-
1,148
Cable access 4,010 -
-
4,010
Capital projects -
-
73,038 73,038
Electric public benefit AB1890 10,857 -
-
10,857
Federal and state grants 5,474 -
-
5,474
Impact fee funded projects -
-
32,585 32,585
Landfill postclosure -
-
59,504 59,504
Landscaping district 285
-
-
285
Low and moderate housing 9,430
-
-
9,430
Public safety 4,477 -
-
4,477
Public works 4,506 -
-
4,506
State gas tax mandates -
-
21,521 21,521
Transportation 55,529
-
-
55,529
Urban art 9,680 -
-
9,680
Youth employment 11
-
-
11 Committed
Capital projects -
-
2,194 2,194
Debt service -
10,281 -
10,281
Hazardous materials 3,704 -
-
3,704
Parking 8,474
-
-
8,474
Public safety 499
-
-
499
Unassigned (12,792) -
(2,396) (15,188)
Total fund balances (deficits) 105,368 10,281 186,446 302,095 Total liabilities, deferred inflows of resources
and fund balances (deficits) 174,139$ 10,281$ 200,658$ 385,078$ 119
Exhibit G-2
CITY OF GLENDALE
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Special
Revenue
Funds
Debt Service
Fund
Capital
Projects Funds
Total Nonmajor
Governmental
Funds
REVENUES
Revenue from other agencies 42,044$ - $ 16,376$ 58,420$ Licenses and permits 972 - 3,771 4,743 Fines and forfeitures 4,361 - - 4,361 Charges for services 28,217 - 5,695 33,912 Miscellaneous revenue 1,169 - - 1,169 Use of money and property 1,998 229 2,309 4,536 Total revenues 78,761 229 28,151 107,141
EXPENDITURES
Current:
General government 165 - - 165 Police 2,243 5 - 2,248 Fire 2,701 - - 2,701 Public works 11,925 - 1,688 13,613 Transportation 19,927 - - 19,927 Housing, health and community development 8,172 - 13 8,185 Employment programs 6,171 - - 6,171 Public service 5,429 - - 5,429 Parks, recreation and community services 1,070 - 51 1,121 Library 1,088 - 91 1,179 Debt service:
Principal retirement - Bonds
- 2,025 - 2,025 Interest - Bonds - 967 - 967 Principal retirement - Leases 693 - - 693 Interest - Leases 11 - - 11 Principal retirement - Subscription 137 - - 137 Interest - Subscription 7 - - 7 Capital outlay:
Capital outlay 14,406 - 5,594 20,000 Total expenditures 74,145 2,997 7,437 84,579 Excess (deficiency) of revenues over
(under) expenditures 4,616 (2,768) 20,714 22,562
OTHER FINANCING SOURCES (USES)
Transfers in 149 1,500 - 1,649 Lease issuance 2,026 - - 2,026 Total other financing sources (uses) 2,175 1,500 - 3,675 Net change in fund balances 6,791 (1,268) 20,714 26,237 Fund balances - beginning 98,577 11,549 165,732 275,858 Fund balances - ending 105,368$ 10,281$ 186,446$ 302,095$
120
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue resources that are restricted or committed to expenditures for specified purposes, as required by law or administrative regulation.
SPECIAL REVENUE FUNDS
2010 - CDBG Fund - To account for monies received and expended by the City as a participant in the Federal Community Development Block Grant (CDBG) Program.
2030 - Home Grant Fund - To account for monies received and expended by the City under the HOME Investment Partnerships Program to strengthen public-private partnerships and to preserve and provide affordable housing.
2040 - Continuum of Care Grant Fund - To account for monies received and expended by the City under the Continuum of Care Grant Program to address the homeless needs of the City. 2050 - Emergency Solutions Grant Fund - To account for monies received and expended by the City under the Emergency Solutions Grant Program to address the homeless needs of the City. 2060 - Workforce Fund - To account for monies received and expended for the federal, state and local-funded job training programs.
2090 - Affordable Housing Trust Fund - To account for monies received from inclusionary housing fees in the San Fernando Road Corridor Redevelopment Project Area, from affordable housing density bonus fees and miscellaneous program income, and expended for affordable housing development, monitoring, and administration. 2100 - Urban Art Fund - To account for the art fees collected from the City developments that are restricted to support the public art installation and maintenance, in accordance with the City’s Urban Art Program Guidelines. 2110 - Glendale Youth Alliance Fund - To account for monies received and expended in the youth employment programs.
2120 - BEGIN Affordable Homeownership Fund - To account for monies received and expended by the City under the Building Equity and Growth in Neighborhoods (BEGIN) grant to provide down payment assistance or homeo
wner rehabilitation loans to low and moderate income homebuyers
2130 - Low & Moderate Income Housing Asset Fund - To account for monies received and expended for low and moderate income housing activities pursuant to AB1484.
2160 - Grant Fund - To account for miscellaneous grant monies received and expended by the City that are not accounted for in other specific grant funds.
2190 - Hazardous Disposal Fund - To account for the revenues from hazardous permits and waste disposal fees that are committed to recycle household hazardous waste, in order to divert this waste from landfill.
2210 – Parking Fund - To account for the parking revenues collected from the operations of City owned public parking lots and garages that are committed to operate City owned parking structures, public parking lots and the admini
stration of the residential preferential parking program. 2220 - Measure M Local Return Fund - To account for monies received from the ½ cent sales tax increase approved in November 2016 by Los Angeles County voters and the related transportation and traffic congestion exp
enses for the Measure M Local Return Program.
2230 - Measure M Subregional Fund - To account for monies received from the ½ cent sales tax increase approved in November 2016 by Los Angeles County voters and the related transportation and traffic congestion exp
enses for Measure M Multi-Year Subregional Programs.
2240 - Measure H Fund - To account for monies received from the ¼ cent sales tax increase approved in March 2017 by Los Angeles County voters and the related homeless services and prevention expenses.
2250 - 2011 TABs Housing Fund - To account for housing project expenses funded by the Glendale Successor Agency 2011 Tax Allocation Bonds.
121
2260 - Measure W Fund – To account for monies received from the 2.5 cents per SF of impermeable area Los Angeles County Flood Control District parcel tax for stormwater management.
2280 – Permanent Local Housing Allocation Fund – PLHA fund accounts for monies received and expended by the City under the Permanent Local Housing Allocation Program, a State of California funded program created to provide an ongoing source of funding to local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities.
2510 - Air Quality Improvement F und - To account for monies received from South Coast Air Quality Management District and expended on air pollution reduction.
2520 - PW Special Grants F und - To account for various grants received and expended by the City in the Public Works (PW) department.
2530 - San Ferna ndo Landscape District Fund - To account for assessments and expenditures associated with the San Fernando Road Corridor (SFRC) Landscape & Maintenance District Project.
2540 - Measure R Local Return Fund - To account for monies received from the ½ cent sales tax increase approved in November 2008 by Los Angeles County voters, and the related transportation and street expenses.
2550 - Measure R Regional Return F und - To account for monies received from the various grants that are funded by the Measure R, which is the ½ cent sales tax increase approved in November 2008 by Los Angeles County voters, and the related transportation and street project expenses.
2560 - Transit Prop A Local Return F und - To account for monies received from a portion of the sales tax via Prop A which is restricted to transportation-related activities.
2570 - Transit Prop C Local Return F und - To account for monies received from a portion of the sales tax via Prop C which is restricted to transportation-related activities.
2580 - Transit Ut ility Fund - To capture the revenues and expenses associated with the operation of fixed route and demand response transit services for reporting to state and federal regulators.
2600 - Asset Forfeiture Fund - To account for the proceeds of money or property seized as a result of illegal activity which is restricted to law enforcement uses.
2610 - Police F und - To account for the various grants, donations and other funding sources received and expended by the City for the Police programs.
2620 - S upplemental Law Enforcement Fund - To account for monies received from the State of California to provide funding for local agencies for the Citizen’s Option for Public Safety (COPS) program.
2650 - Fire Grant Fund - To account for grant monies received and expended for fire prevention programs.
2660 - Fire Mutual Aid Fund - To account for the reimbursements received from either the Federal government or the State of California that are committed for the City’s fire strike team labor costs, fire equipment charges as well as overhead costs incurred by the City in assisting fire incidents outside of the City’s jurisdiction.
2700 - Nutriti onal Meals Grant Fund - To account for monies received from Federal assistance programs for senior citizen services.
2750 - Library F und - To account for the various grants, donations, and other library fees that are restricted for library services.
2800 - Cable Access Fund - To account for the cable access fee that is restricted to provide for resources to broadcast the City Council meetings and other various commissions, forums, etc.
2910 - Electric Public Benefit F und - To account for the fee assessed on the electric customers to fund public benefit programs such as low-income projects, research and development and demonstration program as mandated by State of California, AB 1890.
122
Exhibit H-1
CDBG
Fund
Home
Grant Fund
Continuum of
Care Grant
Fund
Emergency
Solutions Grant
Fund
2010 2030 2040 2050
ASSETS
Pooled cash and investments - $ 714$ -$ -$
Leases receivable - - - -
Accounts receivable, net 377 568 2,381 1,041
Interest receivable - - - -
Loans receivable 96 172 - -
Prepaid items - - 57 -
Total assets 473 1,454 2,438 1,041
LIABILITIES
Accounts payable 231 9 215 277
Deposits - - - -
Due to other funds 133 - 2,214 760
Unearned revenues - - - -
Wages and benefits payable 13 8 9 5
Total liabilities 377 17 2,438 1,042
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases - - - - Unavailable revenues 394 172 2,182 587
Total deferred inflows of resources 394 172 2,182 587 Total liabilities and deferred inflows
of resources 771 189 4,620 1,629
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid - -
57 -
Restricted
Air quality improvement - - - -
Cable access - - - -
Electric public benefit AB1890 - - - -
Federal and state grants - 1,265 - -
Landscaping district - - - -
Low and moderate housing - - - -
Public safety - - - -
Public works - - - -
Transportation - - - -
Urban art - - - -
Youth employment - - - -
Committed
Hazardous materials - - - -
Parking - - - -
Public safety - - - -
Unassigned (298) - (2,239) (588)
Total fund balances (deficits) (298) 1,265 (2,182) (588) Total liabilities and fund balances (deficits) 473$ 1,454$ 2,438$ 1,041$
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
(Continued)
123
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
Workforce
Fund
Affordable
Housing Trust
Fund
Urban
Art Fund
Glendale Youth
Alliance Fund
2060 2090 2100 2110
1,518$ 2,445$ 9,691$ -$
- - - -
2,300 - - 255
- - - -
- - - -
- - - -
3,818 2,445 9,691 255
336 - 11 3
- - - -
- - - 156
- - - -
93 9 - 85
429 9 11 244
- - -
-
448 - - -
448 - - -
877 9 11 244
- - - -
- - - -
- - - -
- - - -
2,941 - - -
- - - -
- 2,436 - -
- - - -
- - - -
- - - -
- - 9,680 -
- - - 11
- - - -
- - - -
- - - -
- - - -
2,941 2,436 9,680 11
3,818$ 2,445$ 9,691$ 255$
(Continued)
124
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
BEGIN
Affordable
Homeownership
Fund
Low & Moderate
Income
Housing Asset
Fund
Grant
Fund
Hazardous
Disposal Fund
2120 2130 2160 2190
89$ 5,561$ -$ 3,475$
- - - -
- - 1,141 957
- - - 26
5,720 772 - -
- - - -
5,809 6,333 1,141 4,458
- 11 128 81
- - - -
- - 355 -
- - 651 622
- 14 7 51
- 25 1,141 754
- - - -
5,721 772 1,141 -
5,721 772 1,141 -
5,721 797 2,282 754
- - - -
- - - -
- - - -
- - - -
88 - - -
- - - -
- 5,536 - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - 3,704
- - - -
- - - -
- - (1,141) -
88 5,536 (1,141) 3,704
5,809$ 6,333$ 1,141$ 4,458$
(Continued)
125
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
Parking
Fund
Measure M
Local Return
Fund
Measure M
Subregional
Fund
Measure H
Fund
2210 2220 2230 2240
9,027$ 14,655 $ - $ - $ 21,865 - - - 854 285 226 - 61 - - - - - - - - - - - 31,807 14,940 226 - 1,666 88 - - - - - - - - 226 - 107 - - - 128 19 - - 1,901 107 226 - 21,396
- - - 36 - 226 - 21,432 - 226 - 23,333 107 452 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14,833 - - - - - - - - - - - - - - 8,474 - - - - - - - - - (226) - 8,474 14,833
(226) -
31,807$ 14,940$ 226$ - $ (Continued)
126
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
2011 TABs
Housing Fund
Measure W
Fund
Permanent Local
Housing Allocation
Fund
Air Quality
Improvement
Fund
2250 2260 2280 2510
1,458$ 4,779 $ - $ 1,162$ - - - - - - 3,513 - - - - - - - - - - - - - 1,458 4,779 3,513 1,162 - 241 - 14 - - - - - - 3,513 - - - - - - 32 - - - 273 3,513 14 -
- - - - - 3,513 - - - 3,513 - - 273 7,026 14 - - - - - - - 1,148 - - - - - - - - - - - - - - - - 1,458 - - - - - - - - 4,506 - - - - - - - - - - - - - - - - - - - - - - - - - - - - (3,513) - 1,458 4,506
(3,513) 1,148
1,458$ 4,779$ 3,513$ 1,162$ (Continued)
127
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
PW Special
Grants Fund
San Fernando
Landscape
District Fund
Measure R
Local Return
Fund
Measure R
Regional
Return Fund
2520 2530 2540 2550
-$ 294 $ 15,312 $ - $ - - - - 36 1 251 2,670 - - - - - - - - - - - - 36 295 15,563 2,670 - 10 - 316 - - - - 36 - - 2,329 - - - - - - - 25 36 10 - 2,670
- - - - 36 - - 1,882 36 - - 1,882 72 10 - 4,552 - - - - - - - - - - - - - - - - - - - - - 285 - - - - - - - - - - - - - - - - 15,563 - - - - - - - - - - - - - - - - - - - - - (36) - - (1,882) (36)
285 15,563 (1,882) 36$ 295$ 15,563$ 2,670$ (Continued)
128
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
Transit Prop A
Local Return
Fund
Transit Prop C
Local Return
Fund
Transit Utility
Fund
Asset Forfeiture
Fund
2560 2570 2580 2600
13,796$ 12,339 $ - $ 3,294$ - 187 - - 235 443 - 20 - - - - - - - - - - - - 14,031 12,969 - 3,314 957 529 - - - - - - - - - - - - - - 18 13 - - 975 542 - - -
179 - - 122 49 - - 122 228 - - 1,097 770 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,314 - - - - 12,934 12,199 - - - - - - - - - - - - - - - - - - - - - - - - - - 12,934 12,199
- 3,314
14,031$ 12,969$ - $ 3,314$ (Continued)
129
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
Police Fund
Supplemental
Law
Enforcement
Fund
Fire Grant
Fund
2610 2620 2650
-$ 1,182$ -$
- - -
2,197 - 840
- - -
- - -
- - 19
2,197 1,182 859
70 - 19
114 - -
397 - 783
1,589 - -
27 19 -
2,197 19 802
- - -
2,067 - 840
2,067 - 840
4,264 19 1,642
- -
19 - - -
- - -
- - -
- - -
- - -
- - -
- 1,163 -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
(2,067) - (802)
(2,067) 1,163 (783)
2,197$ 1,182$ 859$
(Continued)
130
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
Fire Mutual
Aid Fund
Nutritional
Meals Grant
Fund Library Fund
2660 2700 2750
499$ 334$ 7,411$
- - 15
- 113 10
- - -
- - -
- - -
499 447 7,436
- 347 74
- - -
- - -
- - 6,207
- 10 40
- 357 6,321
- - 15
- - 10
- - 25
- 357 6,346
- - -
- - -
- - -
- - -
- 90 1,090
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- - -
499 - -
- - -
499 90 1,090
499$ 447$ 7,436$
(Continued)
131
Exhibit H-1
ASSETS
Pooled cash and investments
Leases receivable
Accounts receivable, net
Interest receivable
Loans receivable
Prepaid items
Total assets
LIABILITIES
Accounts payable
Deposits
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to leases
Unavailable revenues
Total deferred inflows of resources
Total liabilities and deferred inflows
of resources
FUND BALANCES (DEFICITS)
Nonspendable
Prepaid
Restricted
Air quality improvement
Cable access
Electric public benefit AB1890
Federal and state grants
Landscaping district
Low and moderate housing
Public safety
Public works
Transportation
Urban art
Youth employment
Committed
Hazardous materials
Parking
Public safety
Unassigned
Total fund balances (deficits)
Total liabilities and fund balances (deficits)
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
(amounts expressed in thousands)
Cable Access
Fund
Electric Public Benefit
Fund
2800 2910
3,925$ 10,285$ 123,245$
- - 22,067
143 946 21,803
28 73 188
- - 6,760
- - 76
4,096 11,304 174,139
86 425 6,144
- - 114
- - 10,902
- - 9,176
- 22 647
86 447 26,983
- - 21,590
- - 20,198
- - 41,788
86 447 68,771
- - 76
- - 1,148
4,010 - 4,010
- 10,857 10,857
- - 5,474
- - 285
- - 9,430
- - 4,477
- - 4,506
- - 55,529
- - 9,680
- - 11
- - 3,704
- - 8,474
- - 499
- - (12,792)
4,010 10,857 105,368
4,096$ 11,304$ 174,139$
Total Nonmajor
Special
Revenue Funds
132
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
CDBG
Fund
Home
Grant Fund
Continuum of
Care Grant
Fund
Emergency
Solutions Grant
Fund
2010 2030 2040 2050
REVENUES
Revenue from other agencies 1,465$ 995$ 2,873$ 996$ Licenses and permits - - - - Fines and forfeitures - - - - Charges for services - - - - Miscellaneous revenue - 165 - - Use of money and property - 27 - - Total revenues 1,465 1,187 2,873 996
EXPENDITURES
Current:
General government - - - - Police - - - - Fire - - - - Public works - - - - Transportation - - - - Housing, health and community development 763 1,656 2,480 1,042 Employment programs - - - - Public service - - - - Parks, recreation and community services - - - - Library - - - -
Debt service:
Principal retirement - Leases - - - - Interest - Leases - - - - Principal retirement - Subscription - - - - Interest - Subscription - - - - Capital outlay:
Capital outlay 391 - - - Total expenditures 1,154 1,656 2,480 1,042 Excess (deficiency) of revenues
over (under) expenditures 311 (469) 393 (46)
OTHER FINANCING SOURCES (USES)
Transfers in - - - - Lease issuance
Total other financing sources (uses) - - - - Net change in fund balances 311 (469) 393 (46) Fund balances - beginning (609) 1,734 (2,575) (542) Fund balances - ending (298)$ 1,265$ (2,182)$ (588)$ (Continued)
133
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Workforce
Fund
Affordable
Housing Trust
Fund
Urban
Art Fund
Glendale Youth
Alliance Fund
2060 2090 2100 2110
4,779$ - $ -$ -$
- - 972 -
- - - -
48 27 - 2,270
- 1 - -
296 49 183 -
5,123 77 1,155 2,270
- - - -
- - - -
- - - -
- - - -
- - - -
- 186 - -
3,860 - -
2,304
- - - -
- - - -
- - 218 -
693 - - -
11 - - -
- - - -
- - - -
2,026 - - -
6,590 186 218 2,304
(1,467) (109) 937 (34)
- - - -
2,026
2,026 - - -
559 (109) 937 (34)
2,382 2,545 8,743 45
2,941$ 2,436$ 9,680$ 11$
(Continued)
134
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
BEGIN Affordable
Homeownership
Fund
Low & Moderate
Income
Housing Asset
Fund
Grant
Fund
Hazardous
Disposal Fund
2120 2130 2160 2190
-$ -$ 609$ -$ - - - - - - - - - - - 1,988 18 704 - 37 1 76 6 2 19 780 615 2,027 - - 97 - - - - - - - - 1,877 - - 95 - - - - - - 1,679 366 -
- - - - - - - - - - 320 - - - - - - - - - - - - - - - - - - - - - - 2,267 - - - 3,946 878 1,877 19 (3,166) (263) 150 - - - - - - - - 19 (3,166) (263) 150 69 8,702 (878) 3,554 88$ 5,536$ (1,141)$ 3,704$ (Continued)
135
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Parking
Fund
Measure M
Local Return
Fund
Measure M
Subregional Fund
Measure H
Fund
2210 2220 2230 2240
-$ 3,770$ 61 $ 7 $ - - - - 4,102 - - - 6,621 - - - (1) - - - 153 258 - - 10,875 4,028 61 7 - - - - - - - - - - - - 10,345 - 27 - - 663 - - - - - - - -
- 7
- - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,002 58 4 - 11,347 721 31 7 (472) 3,307 30 - - - - - - - - - (472) 3,307 30 - 8,946 11,526 (256) - 8,474$ 14,833$ (226)$ - $ (Continued)
136
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
2011 TABs
Housing Fund
Measure W
Fund
Permanent Local
Housing
Allocation Fund
Air Quality
Improvement
Fund
2250 2260 2280 2510
-$ 3,463$ - $ 258$ - - - - - - - - - - - - - - - - 28 60 - 20 28 3,523 - 278 - - - - - - - - - - - - - 847 - - - - - 127 - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 658 3,513 - - 1,505 3,513 127 28 2,018 (3,513) 151 - - - - - - - - 28 2,018 (3,513) 151 1,430 2,488 - 997 1,458$ 4,506$ (3,513)$ 1,148$ (Continued)
137
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
PW Special
Grants Fund
San Fernando
Landscape
District Fund
Measure R
Local Return
Fund
Measure R
Regional
Return Fund
2520 2530 2540 2550
-$ - $ 3,332$ 3,890 $ - - - - - - - - - 70 - - - - 2 - - 5 266 - - 75 3,600 3,890 - - - - - - - - - - - - - 56 - 555 - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,222 - 56 - 3,777 - 19 3,600 113 - - - - - - - - - 19 3,600 113 (36) 266 11,963 (1,995) (36)$ 285$ 15,563$ (1,882)$ (Continued)
138
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Transit Prop A
Local Return
Fund
Transit Prop C
Local Return
Fund
Transit Utility
Fund
Asset Forfeiture
Fund
2560 2570 2580 2600
5,358$ 4,444 $ 2,710 $ - $
- - - -
- - - 259
- - 8,837 -
- - - -
224 250 - 61
5,582 4,694 11,547 320
- - - -
- - - 33
- - - -
- - - -
5,111 2,479 11,547 -
- - - -
- -
- -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - 137
- - - 7
- - - -
5,111 2,479 11,547 177
471 2,215 - 143
- - - -
- - - -
471 2,215 - 143
12,463 9,984 - 3,171
12,934$ 12,199$ -$ 3,314$
(Continued)
139
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Police Fund
Supplemental
Law
Enforcement
Fund
Fire Grant
Fund
2610 2620 2650
1,061$ 503 $ 166$
- - -
- - -
136 - -
68 - -
27 22 -
1,292 525 166
- - -
1,768 442 -
- - 182
- - -
- - -
- - -
- - -
- - -
- - -
- - -
- -
-
- - -
- - -
- - -
803 - 309
2,571 442 491
(1,279) 83 (325)
- - 30
- - 30
(1,279) 83 (295)
(788) 1,080 (488)
(2,067)$ 1,163$ (783)$
(Continued)
140
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Fire Mutual
Aid Fund
Nutritional
Meals Grant Fund Library Fund
2660 2700 2750
153$ 693$ 458$
- - -
- - -
- - 27
- 30 144
20 5 47
173 728 676
- - -
- - -
642 - -
- - -
- - -
- - -
- - -
- - -
- 750 -
- - 870
- - -
-
- -
- - -
- - -
- 51 40
642 801 910
(469) (73) (234)
- 119 -
- 119 -
(469) 46 (234)
968 44 1,324
499$ 90$ 1,090$
(Continued)
141
Exhibit H-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Capital outlay:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Cable Access
Fund
Electric Public
Benefit Fund
2800 2910
-$ -$ 42,044$
- - 972
- - 4,361
434 7,759 28,217
- 1 1,169
(5) (83) 1,998
429 7,677 78,761
68 - 165
- - 2,243
- - 2,701
- - 11,925
- - 19,927
- - 8,172
- - 6,171
- 5,429 5,429
- - 1,070
- - 1,088
- - 693
- - 11
- - 137
- - 7
62 - 14,406
130 5,429 74,145
299 2,248 4,616
- - 149
2,026
- - 2,175
299 2,248 6,791
3,711 8,609 98,577
4,010$ 10,857$ 105,368$
Total Nonmajor
Special
Revenue Funds
142
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
REVENUES
Revenue from other agencies 1,798 $ 1,798 $ 1,465 $ (333) $ Licenses and permits - - - -
Fines and forfeitures - - - -
Charges for services - - - -
Miscellaneous revenue - - - -
Use of money and property - - - -
Total revenues 1,798 1,798 1,465 (333)
EXPENDITURES
Current:
General government - - - -
Police - - - -
Fire - - - -
Public works - - - -
Transportation - - - -
Housing, health and community development 1,573 4,085 763 3,322 Employment programs - - - -
Public service - - - -
Parks, recreation and community services - - - -
Library - - - -
Total current 1,573 4,085 763 3,322
Debt service:
Principal retirement - Leases - - - -
Interest - Leases - - - -
Principal retirement - Subscription - - - -
Interest - Subscription - - - -
Total debt service - - - -
Capital outlay:
Capital outlay 226 2,264 391 1,873
Total capital outlay 226 2,264 391 1,873
Total expenditures 1,799 6,349 1,154 5,195
OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Lease issuance - - - -
Total other financing sources (uses) -$ -$ -$ -$
CDBG Fund
2010
(Continued)
143
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
1,570$ 3,570 $ 995 $ (2,575)$ - - - - - - - - - - - - 130 130 165 35 - - 27 27 1,700 3,700 1,187 (2,513) - - - - - - - - - - - - - - - - - - - - 1,700 7,300 1,656 5,644 - - - - - -
- -
- - - - - - - - 1,700 7,300 1,656 5,644 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,700 7,300 1,656 5,644 - - - - - - - - -$ -$ -$ -$ Home Grant Fund
2030
(Continued)
144
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ 2,741$ 2,873 $ 132 $ - - - - - - - - - - - - - - - - - - - - - 2,741 2,873 132 - - - - - - - - - - - - - - - - - - - - - 6,304 2,480 3,824 - - - - - - - - - - - - - - - - - 6,304 2,480 3,824 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,304 2,480 3,824 - - - - - - - - -$ -$ -$ -$ Continuum of Care Grant Fund
2040
(Continued)
145
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
162$ 162 $ 996 $ 834 $ - - - - - - - - - - - - - - - - - - - - 162 162 996 834 - - - - - - - - - - - - - - - - - - - - 162 1,434 1,042 392 - - - - - -
- -
- - - - - - - - 162 1,434 1,042 392 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 162 1,434 1,042 392 - - - - - - - - -$ -$ -$ -$ Emergency Solutions Grant Fund
2050
(Continued)
146
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
6,582$ 6,582 $ 4,779 $ (1,803) $ - - - - - - - - 520 520 48 (472) - - - - - - 296 296 7,102 7,102 5,123 (1,979) - - - - - - - - - - - - - - - - - - - - - - - - 7,102 8,531 3,860 4,671 - -
- -
- - - - - - - - 7,102 8,531 3,860 4,671 - - 693 (693) - - 11 (11) - - - - - - - - - - 704 (704) - - 2,026 (2,026) - - 2,026 (2,026) 7,102 8,531 6,590 1,941 - - - - - - 2,026 2,026 -$ -$ 2,026$ 2,026$ Workforce Fund
2060
(Continued)
147
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$
- - - -
- - - -
73 73 27 (46)
- - 1 1
29 29 49 20
102 102 77 (25)
- - - -
- - - -
- - - -
- - - -
- - - -
260 260 186 74
- - - -
- - - -
- - - -
- - - -
260 260 186 74
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
260 260 186 74
- - - -
- - - -
-$ -$ -$ -$
Affordable Housing Trust Fund
2090
(Continued)
148
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ 562 562 972 410 - - - - - - - - - - - - 95 95 183 88 657 657 1,155 498 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,661 1,661 218 1,443 1,661 1,661 218 1,443 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,661 1,661 218 1,443 - - - - - - - - -$ -$ -$ -$ Urban Art Fund
2100
(Continued)
149
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$
- - - -
- - - -
3,081 3,081 2,270 (811)
- - - -
- - - -
3,081 3,081 2,270 (811)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
3,081 3,081 2,304 777
- - - -
- - - -
- - - -
3,081 3,081 2,304 777
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
3,081 3,081 2,304 777
- - - -
- - - -
-$ -$ -$ -$
Glendale Youth Alliance Fund
2110
(Continued)
150
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ - - - - - - - - - - - - 10 10 18 8 - - 1 1 10 10 19 9 - - - - - - - - - - - - - - - - - - - - 10 10 - 10 - - - - - - - - - - - - - - - - 10 10 - 10 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10 10 - 10 - - - - - - - - -$ -$ -$ -$ BEGIN Affordable Homeownership Fund
2120
(Continued)
151
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ - - - - - - - - - - - - 1,300 1,300 704 (596) 93 93 76 (17) 1,393 1,393 780 (613) - - - - - - - - - - - - - - - - - - - - 2,000 4,276 1,679 2,597 - - - - - - - - - - - - - - - - 2,000 4,276 1,679 2,597 - - - - - - - - - - - - - - - - - - - - - 5,780 2,267 3,513 - 5,780 2,267 3,513 2,000 10,056 3,946 6,110 - - - - - - - - -$ -$ -$ -$ Low & Moderate Income Housing Asset Fund
2130
(Continued)
152
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
690$ 3,904 $ 609 $ (3,295)$ - - - - - - - - - - - - - - - - - - 6 6 690 3,904 615 (3,289) - 525 97 428 - - - - - - - - - 1,848 95 1,753 - - - - - 2,752 366 2,386 - - - - - -
- -
327 1,356 320 1,036 - - - - 327 6,481 878 5,603 - - - - - - - - - - - - - - - - - - - - 423 2,609 - 2,609 423 2,609 - 2,609 750 9,090 878 8,212 - - - - - - - - -$ -$ -$ -$ Grant Fund
2160
(Continued)
153
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ - - - - - - - - 1,818 1,818 1,988 170 - - 37 37 19 19 2 (17) 1,837 1,837 2,027 190 - - - - - - - - 2,044 2,044 1,877 167 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,044 2,044 1,877 167 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,044 2,044 1,877 167 - - - - - - - - -$ -$ -$ -$ Hazardous Disposal Fund
2190
(Continued)
154
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ - - - - 3,000 3,000 4,102 1,102 6,540 6,540 6,621 81 - - (1) (1) 106 106 153 47 9,646 9,646 10,875 1,229 - - - - - - - - - - - - 12,317 12,869 10,345 2,524 - - - - - - - - - - - - - - - - - - - - - - - - 12,317 12,869 10,345 2,524 - - - - - - - - - - - - - - - - - - - - 500 4,492 1,002 3,490 500 4,492 1,002 3,490 12,817 17,361 11,347 6,014 - - - - - - - - -$ -$ -$ -$ Parking Fund
2210
(Continued)
155
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
3,506$ 3,506 $ 3,770 $ 264 $ - - - - - - - - - - - - - - - - 102 102 258 156 3,608 3,608 4,028 420 - - - - - - - - - - - - - - - - 1,696 5,475 663 4,812 - - - - - - - - - -
- -
- - - - - - - - 1,696 5,475 663 4,812 - - - - - - - - - - - - - - - - - - - - - 300 58 242 - 300 58 242 1,696 5,775 721 5,054 - - - - - - - - -$ -$ -$ -$ Measure M Local Return Fund
2220
(Continued)
156
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ 61$ 61 $ - - - - - - - - - - - - - - - - - - - - - - 61 61 - - - - - - - - - - - - - - 27 (27) - - - - - - - - - - - - - - - - - - - - - - - - - - 27 (27) - - - - - - - - - - - - -
- - -
- - - - - 6,735 4 6,731 - 6,735 4 6,731 - 6,735 31 6,704 - - - - - - - - -$ -$ -$ -$ Measure M Subregional Fund
2230
(Continued)
157
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
308$ 308 $ 7 $ (301)$ - - - - - - - - - - - - - - - - - - - - 308 308 7 (301) - - - - - - - - - - - - - - - - - - - - 308 547 - 547 - - 7 (7) - -
- -
- - - - - - - - 308 547 7 540 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 308 547 7 540 - - - - - - - - -$ -$ -$ -$ Measure H Fund
2240
(Continued)
158
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - 28 28
- - 28 28
- - - -
- - - -
- - - -
- - - -
- - - -
- 1,300 - 1,300
- - - -
- - - -
- - - -
- - - -
- 1,300 - 1,300
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 1,300 - 1,300
- - - -
- - - -
-$ -$ -$ -$
2011 TABs Housing Fund
2250
(Continued)
159
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
1,757$ 1,757 $ 3,463 $ 1,706 $ - - - - - - - - - - - - - - - - 12 12 60 48 1,769 1,769 3,523 1,754 - - - - - - - - - - - - 764 1,557 847 710 - - - - - - - - - - - - - -
- -
- - - - - - - - 764 1,557 847 710 - - - - - - - - - - - - - - - - - - - - 1,700 2,796 658 2,138 1,700 2,796 658 2,138 2,464 4,353 1,505 2,848 - - - - - - - - -$ -$ -$ -$ Measure W Fund
2260
(Continued)
160
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ 3,698$ -$ (3,698)$ - - - - - - - - - - - - - - - - - - - - - 3,698 - (3,698) - - - - - - - - - - - - - - - - - - - - - 185 - 185 - - - - - - - - - - - - - - - - - 185 - 185 - - - - - - - - - - - - - -
- -
- - - - - 3,513 3,513 - - 3,513 3,513 - - 3,698 3,513 185 - - - - - - - - -$ -$ -$ -$ Permanent Local Housing Allocation Fund
2280
(Continued)
161
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
268$ 268 $ 258 $ (10) $ - - - - - - - - 6 6 - (6) - - - - 9 9 20 11 283 283 278 (5) - - - - - - - - - - - - - - - - 350 350 127 223 - - - - - - - - - -
- -
- - - - - - - - 350 350 127 223 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 350 350 127 223 - - - - - - - - -$ -$ -$ -$ Air Quality Improvement Fund
2510
(Continued)
162
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$ -$ -$ -$ PW Special Grants Fund
2520
(Continued)
163
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ - - - - - - - - 70 70 70 - - - - - 3 3 5 2 73 73 75 2 - - - - - - - - - - - - 96 96 56 40 - - - - - - - - - - - - - - - - - - - - - - - - 96 96 56 40 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 96 96 56 40 - - - - - - - - -$ -$ -$ -$ San Fernando Landscape District Fund
2530
(Continued)
164
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
3,094$ 3,094 $ 3,332 $ 238 $ - - - - - - - - - - - - - - 2 2 108 108 266 158 3,202 3,202 3,600 398 - - - - - - - - - - - - - - - - 1,208 1,293 - 1,293 - - - - - - - - - -
- -
- - - - - - - - 1,208 1,293 - 1,293 - - - - - - - - - - - - - - - - - - - - 705 1,816 - 1,816 705 1,816 - 1,816 1,913 3,109 - 3,109 - - - - - - - - -$ -$ -$ -$ Measure R Local Return Fund
2540
(Continued)
165
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ 3,890$ 3,890 $ - - - - - - - - - - - - - - - - - - - - - - 3,890 3,890 - - - - - - - - - - - - - 4,187 555 3,632 - - - - - - - - - - - - - - - - - - - - - - - - - 4,187 555 3,632 - - - - - - - - - - - - -
- - -
- - - - - 6,999 3,222 3,777 - 6,999 3,222 3,777 - 11,186 3,777 7,409 - - - - - - - - -$ -$ -$ -$ Measure R Regional Return Fund
2550
(Continued)
166
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
4,973$ 4,973 $ 5,358 $ 385 $ - - - - - - - - - - - - - - - - 131 131 224 93 5,104 5,104 5,582 478 - - - - - - - - - - - - - - - - 5,852 5,852 5,111 741 - - - - - - - - - -
- -
- - - - - - - - 5,852 5,852 5,111 741 - - - - - - - - - - - - - - - - - - - - 940 1,451 - 1,451 940 1,451 - 1,451 6,792 7,303 5,111 2,192 - - - - - - - - -$ -$ -$ -$ Transit Prop A Local Return Fund
2560
(Continued)
167
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
4,125$ 4,125 $ 4,444 $ 319 $ - - - - - - - - - - - - - - - - 113 113 250 137 4,238 4,238 4,694 456 - - - - - - - - - - - - - - - - 3,939 4,133 2,479 1,654 - - - - - - - - - -
- -
- - - - - - - - 3,939 4,133 2,479 1,654 - - - - - - - - - - - - - - - - - - - - 1,300 1,317 - 1,317 1,300 1,317 - 1,317 5,239 5,450 2,479 2,971 - - - - - - - - -$ -$ -$ -$ Transit Prop C Local Return Fund
2570
(Continued)
168
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
3,803$ 3,803 $ 2,710 $ (1,093) $ - - - - - - - - 10,229 10,229 8,837 (1,392) - - - - - - - - 14,032 14,032 11,547 (2,485) - - - - - - - - - - - - - - - - 14,032 14,032 11,547 2,485 - - - - - - - - - -
- -
- - - - - - - - 14,032 14,032 11,547 2,485 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14,032 14,032 11,547 2,485 - - - - - - - - -$ -$ -$ -$ Transit Utility Fund
2580
(Continued)
169
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$ - - - - - - 259 259 - - - - - - - - - - 61 61 - - 320 320 - - - - 887 887 33 854 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 887 887 33 854 - - - - - - - - - - 137 (137) - - 7 (7) - - 144 (144) 460 494 - 494 460 494 - 494 1,347 1,381 177 1,204 - - - - - - - - -$ -$ -$ -$ Asset Forfeiture Fund
2600
(Continued)
170
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
928$ 3,566 $ 1,061 $ (2,505) $ - - - - - - - - 125 125 136 11 100 191 68 (123) - - 27 27 1,153 3,882 1,292 (2,590) - - - - 1,153 4,763 1,768 2,995 - - - - - - - - - - - - - - - - - - - - - -
- -
- - - - - - - - 1,153 4,763 1,768 2,995 - - - - - - - - - - - - - - - - - - - - - 1,085 803 282 - 1,085 803 282 1,153 5,848 2,571 3,277 - - - - - - - - -$ -$ -$ -$ Police Fund
2610
(Continued)
171
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
528$ 528 $ 503 $ (25) $ - - - - - - - - - - - - - - - - - - 22 22 528 528 525 (3) - - - - 420 420 442 (22) - - - - - - - - - - - - - - - - - - - - - -
- -
- - - - - - - - 420 420 442 (22) - - - - - - - - - - - - - - - - - - - - - - - - - - - - 420 420 442 (22) - - - - - - - - -$ -$ -$ -$ Supplemental Law Enforcement Fund
2620
(Continued)
172
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ 621$ 166$ (455)$
- - - -
- - - -
- - - -
- - - -
- - - -
- 621 166 (455)
- - - -
- - - -
- 699 182 517
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 699 182 517
- - - -
- - - -
- - - -
-
- - -
- - - -
- 423 309 114
- 423 309 114
- 1,122 491 631
- 30 30 -
- - - -
-$ 30.00$ 30.00$ -$
Fire Grant Fund
2650
(Continued)
173
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
1,200$ 1,200 $ 153 $ (1,047)$ - - - - - - - - - - - - - - - - - - 20 20 1,200 1,200 173 (1,027) - - - - - - - - 1,200 1,200 642 558 - - - - - - - - - - - - - - - - - -
- -
- - - - - - - - 1,200 1,200 642 558 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,200 1,200 642 558 - - - - - - - - -$ -$ -$ -$ Fire Mutual Aid Fund
2660
(Continued)
174
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
351$ 978 $ 693 $ (285) $ - - - - - - - - - - - - 41 41 30 (11) - - 5 5 392 1,019 728 (291) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- -
477 904 750 154 - - - - 477 904 750 154 - - - - - - - - - - - - - - - - - - - - - 234 51 183 - 234 51 183 477 1,138 801 337 85 119 119 - - - - - 85$ 119$ 119$ -$ Nutritional Meals Grant Fund
2700
(Continued)
175
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
32$ 12,504$ 458$ (12,046)$
- - - -
- - - -
39 39 27 (12)
- - 144 144
7 7 47 40
78 12,550 676 (11,874)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - -
-
- - - -
401 7,333 870 6,463
401 7,333 870 6,463
- - - -
- - - -
- - - -
- - - -
- - - -
- 5,738 40 5,698
- 5,738 40 5,698
401 13,071 910 12,161
- - - -
- - - -
-$ -$ -$ -$
Library Fund
2750
(Continued)
176
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$
- - - -
- - - -
450 450 434 (16)
- - - -
45 45 (5) (50)
495 495 429 (66)
92 92 68 24
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
92 92 68 24
- - - -
- - - -
- - - -
- - -
-
- - - -
50 333 62 271
50 333 62 271
142 425 130 295
- - - -
- - - -
-$ -$ -$ -$
Cable Access Fund
2800
(Continued)
177
Exhibit H-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Nonmajor Special Revenue Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Fines and forfeitures
Charges for services
Miscellaneous revenue
Use of money and property
Total revenues
EXPENDITURES
Current:
General government
Police
Fire
Public works
Transportation
Housing, health and community development
Employment programs
Public service
Parks, recreation and community services
Library
Total current
Debt service:
Principal retirement - Leases
Interest - Leases
Principal retirement - Subscription
Interest - Subscription
Total debt service
Capital outlay:
Capital outlay
Total capital outlay
Total expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Lease issuance
Total other financing sources (uses)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
-$ -$ -$ -$
- - - -
- - - -
6,800 6,800 7,759 959
- - 1 1
97 97 (83) (180)
6,897 6,897 7,677 780
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
7,535 7,557 5,429 2,128
- - - -
- - - -
7,535 7,557 5,429 2,128
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
7,535 7,557 5,429 2,128
- - - -
- - - -
-$ -$ -$ -$
Electric Public Benefit Fund
2910
178
DEBT SERVICE FUNDS
Debt Service Funds are used to account for financial resources that are restricted, committed or assigned to expenditures for principal and interest on general long-term debt of the City of Glendale.
DEBT SERVICE FUND
3031 - Police Building 2019 Lease Revenue Refunding Bonds Fund - To accumulate monies for the payment of interest and principal of the 2019 lease revenue refunding bonds. The debt service is financed via lease payments from the City
to the Municipal Financing Authority.
179
This page is left blank intentionally.
180
Exhibit I-1
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Debt Service Funds
June 30, 2023
(amounts expressed in thousands)
Police Building 2019
Lease Revenue
Refunding Bonds Fund
3031
ASSETS
Pooled cash and investments 10,281$
Total assets 10,281
LIABILITIES
Total Liabilities -
FUND BALANCES (DEFICITS)
Committed
Debt service 10,281
Total liabilities and fund balances (deficits) 10,281$
181
Exhibit I-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Debt Service Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Police Building 2019
Lease Revenue
Refunding Bonds Fund
3031
REVENUES
Use of money and property 229 $
Total revenues 229
EXPENDITURES
Current:
Police 5
Debt service:
Principal retirement 2,025
Interest 967
Total expenditures 2,997
Excess (deficiency) of revenues over expenditures (2,768)
OTHER FINANCING SOURCES (USES)
Transfers in 1,500
Total other financing sources (uses) 1,500
Net change in fund balances (1,268)
Fund balances - beginning 11,549
Fund balances - ending 10,281 $
182
Exhibit I-3
CITY OF GLENDALE
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Nonmajor Debt Service Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Original
Budget
Final
Budget Actual
Variance with
Final Budget
REVENUES
Use of money and property 141 $ 141 $ 229 $ 88 $ Total revenues 141 141 229 88
EXPENDITURES
Current:
Police 5 5 5 - Debt service:
Principal retirement 2,025 2,025 2,025 - Interest 967 967 967 - Total expenditures 2,997 2,997 2,997 -
OTHER FINANCING SOURCES (USES)
Transfers in 1,500 1,500 1,500 - Total other financing sources (uses) 1,500 $ 1,500 $ 1,500 $ - $ 3031
Police Building 2019 Lease Revenue Refunding Bonds Fund
183
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184
CAPITAL PROJECTS FUNDS
Capital Projects Funds are used to account for financial resources that are restricted, committed, or assigned to expenditures for capital outlays of major capital facilities other than those financed by Proprietary Funds.
CAPITAL PROJECTS FUNDS
4020 - State Gas Tax Fund - To account for monies received and expended from state gas tax allocations and Senate Bill 1 for street improvement purposes.
4030 - Landfill Postclosure Fund - To account for monies reserved for the post-closure maintenance cost of Scholl Canyon landfill.
4050 - Parks Mitigation Fee Fund - To account for the parks revenue collected as impact fees and usage of these funds for allowed projects. In addition, this fund will also be used to guarantee adequate interest accumulation and disbursements of unused funds.
4070 - Library Mitigation Fee Fund - To account for the library revenue collected as impact fees and usage of these funds for allowed projects. In addition, this fund will also be used to guarantee adequate interest accumulation and disbursement of unused
funds.
4080 - Parks Quimby Fee Fund - To account for the fees imposed for park or recreational purposes as a condition to the approval of a tentative map or parcel map and usage of these funds for allowed projects. In addition, this fund will a
lso be used to guarantee adequate interest accumulation and disbursements of unused funds.
4090 - CIP Reimbursement Fund - To account for monies received and expended for CIP projects that are funded by non-City money, such as grants and joint ventures.
4100 - SF Corridor Tax Share Fund - County of Los Angeles' contribution (passback) to City of Glendale of 60% of County’s share of tax increment (pass through) funds from the San Fernando Road Corridor Redevelopment Proje
ct Area to be used by the City to construct regional public improvement projects benefiting the County. 4110 - Housing Development Impact Fee - To account for fees imposed on new commercial developments to mitigate the cost of developing new affordable housing, and rehabilitating existing housing and/or performing adaptive re-use projects for affordable housing.
4120
- 2011 TABs Projects Fund - To account for capital improvement project expenses funded by the Glendale Successor Agency 2011 Tax Allocation Bonds (non-housing portion). 4130 - Measure A Fund – To account for grant revenue received from Los Angeles County Regional Park and Open Space District (RPOSD) and expenditures on projects that repair and upgrade parks and recreational facilities; create new parks; preserve and protect open spaces and beaches; and support recreational prog
ramming.
185
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186
Exhibit J-1
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2023
(amounts expressed in thousands)
State Gas Tax
Fund
Landfill
Postclosure
Fund
Parks Mitigation
Fee Fund
Library Mitigation
Fee Fund
4020 4030 4050 4070
ASSETS
Pooled cash and investments 21,052$ -$ 30,661$ 1,117$ Restricted cash and investments - 59,504 - -
Accounts receivable, net 765 - 9 1
Interest receivable 146 - 223 8
Total assets 21,963 59,504 30,893 1,126
LIABILITIES
Accounts payable 412 - 225 19
Due to other funds - - - -
Unearned revenues - - - -
Wages and benefits payable 30 - 5 -
Total liabilities 442 - 230 19
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - - - -
Total liabilities and deferred inflows of
resources 442 - 230 19
FUND BALANCES (DEFICITS)
Restricted
Capital projects - - - -
Impact fee funded projects - - 30,663 1,107
Landfill postclosure - 59,504 - -
State gas tax mandates 21,521 - - -
Committed
Capital projects - - - -
Unassigned - - - -
Total fund balances (deficits) 21,521 59,504 30,663 1,107 Total liabilities, deferred inflow of resources
and fund balances (deficits) 21,963$ 59,504$ 30,893$ 1,126$ (Continued)
187
Exhibit J-1
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2023
(amounts expressed in thousands)
ASSETS
Pooled cash and investments
Restricted cash and investments
Accounts receivable, net
Interest receivable
Total assets
LIABILITIES
Accounts payable
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total liabilities and deferred inflows of
resources
FUND BALANCES (DEFICITS)
Restricted
Capital projects
Impact fee funded projects
Landfill postclosure
State gas tax mandates
Committed
Capital projects
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflow of resources
and fund balances (deficits)
Parks Quimby
Fee Fund
CIP
Reimbursement
Fund
SF Corridor Tax
Share Fund
Housing
Development
Impact Fee
4080 4090 4100 4110
546$ 8,517$ 73,038$ 263$
- - - -
- 2,134 - -
4 - - 2
550 10,651 73,038 265
- 194 - -
- - - -
- 10,454 - -
- 1 - -
- 10,649 - -
- 1,924 - -
- 12,573 - -
- - 73,038 -
550 - - 265
-
- - -
- - - -
- - - -
- (1,922) - -
550 (1,922) 73,038 265
550$ 10,651$ 73,038$ 265$
(Continued)
188
Exhibit J-1
CITY OF GLENDALE
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2023
(amounts expressed in thousands)
ASSETS
Pooled cash and investments
Restricted cash and investments
Accounts receivable, net
Interest receivable
Total assets
LIABILITIES
Accounts payable
Due to other funds
Unearned revenues
Wages and benefits payable
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Total liabilities and deferred inflows of
resources
FUND BALANCES (DEFICITS)
Restricted
Capital projects
Impact fee funded projects
Landfill postclosure
State gas tax mandates
Committed
Capital projects
Unassigned
Total fund balances (deficits)
Total liabilities, deferred inflow of resources
and fund balances (deficits)
2011 TABs
Project Fund Measure A Fund
4120 4130
2,194$ -$ 137,388$
- - 59,504
- 474 3,383
- - 383
2,194 474 200,658
- - 850
- 473 473
- - 10,454
- 1 37
- 474 11,814
- 474 2,398
- 948 14,212
- - 73,038
- - 32,585
- - 59,504
- - 21,521
2,194 - 2,194
- (474) (2,396)
2,194 (474) 186,446
2,194$ 474$ 200,658$
Total
Nonmajor Capital
Projects
189
Exhibit J-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Capital projects funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
State Gas Tax
Fund
Landfill
Postclosure
Fund
Parks Mitigation
Fee Fund
Library
Mitigation
Fee Fund
4020 4030 4050 4070
REVENUES
Revenue from other agencies 9,261 $ -$ -$ - $ Licenses and permits - - 3,431 340
Charges for services - 5,678 - -
Use of money and property (173) 1,063 (89) 16
Total revenues 9,088 6,741 3,342 356
EXPENDITURES
Current:
Public works 1,658 - - -
Housing, health and community development - - - -
Parks, recreation and community services - - 50 -
Library - - - 91
Capital outlay 3,046 - 271 421
Total expenditures 4,704 - 321 512
Excess (deficiency) of revenues over
(under) expenditures 4,384 6,741 3,021 (156)
Net change in fund balances 4,384 6,741 3,021 (156)
Fund balances - beginning 17,137 52,763 27,642 1,263 Fund balances - ending 21,521$ 59,504$ 30,663$ 1,107$ (Continued)
190
Exhibit J-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Capital projects funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Charges for services
Use of money and property
Total revenues
EXPENDITURES
Current:
Public works
Housing, health and community development
Parks, recreation and community services
Library
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
Parks Quimby
Fee Fund
CIP
Reimbursement
Fund
SF Corridor Tax
Share Fund
Housing
Development
Impact Fee
4080 4090 4100 4110
-$ 546$ 6,569$ - $
- - - -
- - - 17
1 158 1,301 (10)
1 704 7,870 7
- 30 - -
- 13 - -
1 - - -
- - - -
- 1,382 - -
1 1,425 - -
- (721) 7,870 7
- (721) 7,870 7
550 (1,201) 65,168 258
550$ (1,922)$ 73,038$
265$
(Continued)
191
Exhibit J-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenditures and Changes in Fund Balances
Nonmajor Capital projects funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
REVENUES
Revenue from other agencies
Licenses and permits
Charges for services
Use of money and property
Total revenues
EXPENDITURES
Current:
Public works
Housing, health and community development
Parks, recreation and community services
Library
Capital outlay
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Net change in fund balances
Fund balances - beginning
Fund balances - ending
2011 TABs
Project Fund
Measure A
Fund
4120 4130
-$ -$ 16,376$
- - 3,771
- - 5,695
42 - 2,309
42 - 28,151
- - 1,688
- - 13
- - 51
- - 91
- 474 5,594
- 474 7,437
42 (474) 20,714
42 (474) 20,714
2,152 - 165,732
2,194$ (474)$ 186,446$
Total
Nonmajor
Capital Projects
192
NONMAJOR ENTERPRISE FUNDS
This section of the Annual Comprehensive Financial Report provides information on each individual enterprise fund, except for those major enterprise funds reported in the basic financial statements: Sewer Fund, Electric Fund and Water Fund. Nonmajor enterprise funds are used to account for operations that provide goods or services to the general public that are financed primarily by a user charge or where the periodic measurement of net income is deemed appropriate.
NONMAJOR ENTERPRISE FUNDS
5300 - Refuse Disposal Fund - To account for operations of the City-owned refuse collection and disposal service.
5400 - Fiber Optic Fund - To account for the design and construction of the City-owned fiber-optic network backbone.
5800 - Fire Communication Fund - To account for monies received and expended, as the lead city, for the tri-city (Burbank, Glendale and Pasadena) Verdugo Fire Communication operations. 193
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194
Exhibit K-1
CITY OF GLENDALE
Combining Statement of Net Position
Nonmajor Enterprise Funds
June 30, 2023
(amounts expressed in thousands)
Refuse
Disposal Fund
Fiber Optic
Fund
Fire
Communication
Fund
5300 5400 5800
ASSETS
Current assets:
Pooled cash and investments 16,968 $ 381 $ 7,035 $ 24,384 $ Accounts receivable, net 2,665 19 - 2,684 Interest receivable 123 2 51 176 Total current assets 19,756 402 7,086 27,244 Noncurrent assets:
PPP receivable 124 - - 124 Capital assets, net 13,314 - 2,076 15,390 Capital assets, not being depreciated 1,639 - - 1,639 Total noncurrent assets 15,077 - 2,076 17,153 Total assets 34,833 402 9,162 44,397
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to OPEB 15 - 6 21 Deferred outflows of resources related to pensions 4,540 - 2,090 6,630 Total assets and deferred outflows of
resources 39,388 402 11,258 51,048
LIABILITIES
Current liabilities:
Accounts payable 1,512 - 67 1,579 Deposits 94 - - 94 Subscriptions payable - - 18 18 Wages and benefits payable 307 3 139 449 Total current liabilities 1,913 3 224 2,140 Noncurrent liabilities:
OPEB liability
397 - 162 559 Net pension liability 16,070 - 4,450 20,520 Total noncurrent liabilities 16,467 - 4,612 21,079 Total liabilities 18,380 3 4,836 23,219
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to OPEB 62 - 28 90 Deferred inflows of resources related to pensions 573 - 287 860 Deferred inflows of resources related to PPP 122 - - 122 Total liabilities and deferred inflows of
resources 19,137 3 5,151 24,291
NET POSITION
Net investment in capital assets 14,549 - 2,058 16,607 Unrestricted 5,702 399 4,049 10,150 Total net position 20,251$ 399$ 6,107$ 26,757$ Total Nonmajor
Enterprise
Funds
195
Exhibit K-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenses, and Changes in Net Position
Nonmajor Enterprise funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Refuse
Disposal
Fund
Fiber Optic
Fund
Fire
Communication
Fund
5300 5400 5800
OPERATING REVENUES
Charges for services 12,122 $ 231 $ 5,470 $ 17,823 $ Miscellaneous revenue 147 - - 147 Total operating revenues 12,269 231 5,470 17,970
OPERATING EXPENSES
Salaries and benefits 8,126 104 3,780 12,010 Maintenance and operation 13,479 40 2,148 15,667 Total operating expenses 21,605 144 5,928 27,677 Operating income (loss) (9,336) 87 (458) (9,707)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental grants 50 - - 50 Use of money and property 474 (3) (9) 462 Total nonoperating revenues (expenses) 524 (3) (9) 512 Change in net position (8,812) 84 (467) (9,195) Total net position - beginning 29,063 315 6,574 35,952 Total net position - ending 20,251 $ 399 $ 6,107 $ 26,757 $ Total
Nonmajor
Enterprise
Funds
196
Exhibit K-3
CITY OF GLENDALE
Statement of Cash Flows
Nonmajor Enterprise Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Refuse
Disposal
Fund
Fiber Optic
Fund
Fire
Communication
Fund
5300 5400 5800
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 16,059 $ 231 $ 5,469 $ 21,759 $ Payments to employees (8,067) (106) (3,655) (11,828) Payments to suppliers (11,512) (37) (1,391) (12,940) Intergovernmental grants received 50 - - 50 Net cash provided (used) by operating activities (3,470) 88 423 (2,959)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Lease and PPP revenue received 1 - - 1 Net cash provided (used) by noncapital financing activities 1 - - 1
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Acquisition of capital assets (4,506) - (18) (4,524) Proceeds from sales of capital assets 116 - - 116 Net cash provided (used) by capital and related financing activities (4,390) - (18) (4,408)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 353 (4) (25) 324 Net cash provided (used) by investing activities 353 (4) (25) 324 Net increase (decrease) in cash and cash equivalents (7,506) 84 380 (7,042) Balances - beginning of year 24,474 297 6,655 31,426 Balances - end of the year 16,968 381 7,035 24,384 Reconciliation of operating income (loss) to net cash provided (used) by operating activities:
Operating Income (loss) (9,336) 87 (458) (9,707) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation
1,915 - 526 2,441 Amortization - - 118 118 Intergovernmental grants received 50 - - 50 (Increase) Decrease Accounts receivable, net 3,933 - - 3,933 (Increase) Decrease Deferred outflows from OPEB (15) - (6) (21) (Increase) Decrease Deferred outflows from pension (2,728) - (1,452) (4,180) Increase (Decrease) Accrued wages payable 39 1 20 60 Increase (Decrease) Accounts payable (460) - (10) (470) Increase (Decrease) Deposits (14) - - (14) Increase (Decrease) OPEB liability 398 - 161 559 Increase (Decrease) Deferred inflows from OPEB 62 - 28 90 Increase (Decrease) Deferred inflows from pension (3,503) - (1,798) (5,301) Increase (Decrease) Deferred inflows from PPP 122 - - 122 Increase (Decrease) Net pension liability 6,067 - 3,294 9,361 Net cash provided (used) by operating activities (3,470)$ 88$ 423$ (2,959)$ Total
Nonmajor
Enterprise
Funds
197
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198
INTERNAL SERVICE FUNDS
This section of the Annual Comprehensive Financial Report provides information on each individual internal service fund. Internal service funds are used by the City to centralize certain services and then allocate the cost of those services to the user departments on a cost reimbursement basis. User fund charges from internal service funds with capital assets typically consist of two components: a maintenance/service component and a capital replacement component. User fund charges from self- insurance internal service funds generally are based on claims experience of the user department.
INTERNAL SERVICE FUNDS
6010 - Fleet Management Fund - To account for fleet replacement resources which are derived from periodic charges to governmental operations to ensure timely replacement of fleet.
6020 - Joint Air Support Fund - To account for resources and expenses for the operation of the Joint Law Enforcement Air Support Unit between City of Glendale and City of Burbank.
6030 - ITD Infrastructure Fund - To account for technological equipment replacement resources which are derived from periodic charges to governmental operations to ensure timely replacement of the technological equipment.
6040 - ITD Applications Fund - To account for major ITD Applications resources which are derived from periodic charges to governmental operations to ensure timely replacement of the major application software.
6070 - Building Maintenance Fund - To account for maintenance, repairs or services necessary to sustain facility operations at approximately one hundred City owned facilities.
6100 - Unemployment Insurance Fund - To finance and account for unemployment claims. Resources are derived from unemployment insurance charges to various City operations. Unemployment claims are reimbursed to the Sta
te Employment Department which disburses the unemployment claims.
6120 - Liability Insurance Fund - To account for financing and disbursement of City self-insurance funds for uninsurable litigation activities, general liability and auto liability claims. Charges, in lieu of insurance premiums, are made periodically to City operations to provide the self-insurance resources.
6140 - Compensation Insurance Fund - To finance and account for the City's workers' compensation claims.
Funding is derived from charges in lieu of actual premiums to various City operations to provide the self-insurance resources.
6150 - Dental Insurance Fund - To finance and account for the City's dental insurance program for its employees.
Funding is derived from charges in lieu of actual premiums to various City operations to provide the self-insurance resources.
6160 - Medical Insurance Fund - To finance and account for the City's medical insurance program for its employees.
Funding is derived from charges in lieu of actual premiums to various City operations to provide the self-insurance resources.
6170 - Vision Insurance Fund - To finance and account for the City's vision insurance program for its employees.
Funding is derived from charges in lieu of actual premiums to various City operations to provide the self-insurance resources.
6400 - Employee Benefits Fund - To account for the resources and the liability for employees’ compensated absences (vacation and comp time).
6410 - Retiree Health Savings Plan (RHSP) Benefits Fund - To account for the resources and the liability for employees’ sick leave conversion under RHSP plan.
6420 - Post Employment Benefits Fund - To account for the resources and the liability for all the benefits provided after the employees’ separation from the City.
6600 - Wireless Fund - To account for the operation of the citywide radio system, including maintenance, replacement and acquisition of equipment.
199
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200
Exhibit L-1
CITY OF GLENDALE
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
(amounts expressed in thousands)
Fleet
Management
Fund
Joint Air
Support
Fund
ITD
Infrastructure
Fund
ITD Applications
Fund
6010 6020 6030 6040
ASSETS
Current assets:
Pooled cash and investments 8,241 $ 5,754 $ 5,016 $ 2,234 $ Accounts receivable, net 30 297 - -
Interest receivable 1 41 31 19
Inventories 818 - - -
Prepaid items 2,506 - - -
Total current assets 11,596 6,092 5,047 2,253 Noncurrent assets:
Capital assets, net 15,630 989 6,039 8,536 Capital assets, not being depreciated - - - -
Total noncurrent assets 15,630 989 6,039 8,536 Total assets 27,226 7,081 11,086 10,789
LIABILITIES
Current liabilities:
Accounts payable 751 38 1,266 201
Claims payable - - - -
Compensated absences - - - -
Leases payable - - - -
Subscriptions payable - - 1,290 965
Wages and benefits payable 187 7 149 130
Total current liabilities 938 45 2,705 1,296
Noncurrent liabilities:
Claims payable -
- - -
Compensated absences - - - -
Leases payable - - - -
Subscriptions payable - - 1,120 1,247
Total noncurrent liabilities - - 1,120 1,247
Total liabilities 938 45 3,825 2,543
NET POSITION
Net investment in capital assets 15,468 989 3,091 6,324 Unrestricted 10,820 6,047 4,170 1,922
Total net position 26,288$ 7,036$ 7,261$ 8,246$ (Continued)
201
Exhibit L-1
CITY OF GLENDALE
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
(amounts expressed in thousands)
ASSETS
Current assets:
Pooled cash and investments
Accounts receivable, net
Interest receivable
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Capital assets, net
Capital assets, not being depreciated
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Claims payable
Compensated absences
Leases payable
Subscriptions payable
Wages and benefits payable
Total current liabilities
Noncurrent liabilities:
Claims payable
Compensated absences
Leases payable
Subscriptions payable
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Building
Maintenance
Fund
Unemployment
Insurance
Fund
Liability
Insurance
Fund
Compensation
Insurance
Fund
6070 6100 6120 6140
2,840$ 324 $ 14,530 $ 55,510 $ - 15 404 911 17 2 100 403 - - - - - - - - 2,857 341 15,034 56,824 28 - - 9 - - - - 28 - - 9 2,885 341 15,034 56,833 436 24 148 32 - - 6,797 8,917 - - - - - - -
-
- - - - 129 - 15 387 565 24 6,960 9,336 - - 7,714 59,592 - - - - - - - - - - - - - - 7,714 59,592 565 24 14,674 68,928 28 - - 9 2,292 317 360 (12,104) 2,320$ 317$ 360$ (12,095)$ (Continued)
202
Exhibit L-1
CITY OF GLENDALE
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
(amounts expressed in thousands)
ASSETS
Current assets:
Pooled cash and investments
Accounts receivable, net
Interest receivable
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Capital assets, net
Capital assets, not being depreciated
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Claims payable
Compensated absences
Leases payable
Subscriptions payable
Wages and benefits payable
Total current liabilities
Noncurrent liabilities:
Claims payable
Compensated absences
Leases payable
Subscriptions payable
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Dental
Insurance Fund
Medical
Insurance
Fund
Vision
Insurance Fund
Employee
Benefits
Fund
6150 6160 6170 6400
354$ 4,492 $ 304 $ 16,908 $ 39 1,018 8 105 3 33 2 122 - - - - - 503 - - 396 6,046 314 17,135 - - - - - - - - - - - - 396 6,046 314 17,135 86 1,037 12 - - 679 - - - - - 2,029 - - - - -
- - -
- - - 25 86 1,716 12 2,054 - - - - - - - 17,046 - - - - - - - - - - - 17,046 86 1,716 12 19,100 - - - - 310 4,330 302 (1,965) 310$ 4,330$ 302$ (1,965)$ (Continued)
203
Exhibit L-1
CITY OF GLENDALE
Combining Statement of Net Position
Internal Service Funds
June 30, 2023
(amounts expressed in thousands)
ASSETS
Current assets:
Pooled cash and investments
Accounts receivable, net
Interest receivable
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Capital assets, net
Capital assets, not being depreciated
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Claims payable
Compensated absences
Leases payable
Subscriptions payable
Wages and benefits payable
Total current liabilities
Noncurrent liabilities:
Claims payable
Compensated absences
Leases payable
Subscriptions payable
Total noncurrent liabilities
Total liabilities
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Retiree Health
Savings Plan
(RHSP) Benefits
Fund
Post
Employment
Benefits
Fund
Wireless
Fund
6410 6420 6600
15,170$ 183 $ 3,764 $ 135,624 $ 40 31 - 2,898
113 1 26 914
- - - 818
- - - 3,009
15,323 215 3,790 143,263
- - 5,890 37,121
- - 242 242
- - 6,132 37,363
15,323 215 9,922 180,626
- 61 79 4,171
- - - 16,393
1,103 - - 3,132
- - 44 44
-
- - 2,255
- - 37 1,066
1,103 61 160 27,061
- - - 67,306
12,248 - - 29,294
- - 513 513
- - - 2,367
12,248 - 513 99,480
13,351 61 673 126,541
- - 5,576 31,485
1,972 154 3,673 22,600
1,972$ 154$ 9,249$ 54,085$ Total Internal
Service Funds
204
Exhibit L-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Fleet
Management
Fund
Joint Air
Support Fund
ITD
Infrastructure
Fund
ITD
Applications
Fund
6010 6020 6030 6040
OPERATING REVENUE
S
Charges for services 13,993$ 1,410$ 14,327$ 7,806$ Miscellaneous revenue 8 - - 7
Total operating revenues 14,001 1,410 14,327 7,813
OPERATING EXPENSES
Salaries and benefits 4,901 168 3,813 3,003 Claims and settlement - - - -
Maintenance and operation 9,681 809 7,857 7,929 Total operating expenses 14,582 977 11,670 10,932 Operating income (loss) (581) 433 2,657 (3,119)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental grants 3 - - -
Use of money and property 186 (12) (99) 119 Interest expense - - (73) (57)
Total nonoperating revenues (expenses) 189 (12) (172) 62 Income (loss) before contributions and
transfers (392) 421 2,485 (3,057)
Transfers in 7,800 - 110 -
Capital grants and contributions (expenses) - - - -
Transfers out - - - -
Change in net position 7,408 421 2,595 (3,057) Total net position - beginning 18,880 6,615 4,666 11,303 Total net position - ending 26,288$ 7,036$ 7,261$ 8,246$ (Continued)
205
Exhibit L-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
OPERATING REVENUE
S
Charges for services
Miscellaneous revenue
Total operating revenues
OPERATING EXPENSES
Salaries and benefits
Claims and settlement
Maintenance and operation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES
)
Intergovernmental grants
Use of money and property
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Transfers in
Capital grants and contributions (expenses)
Transfers out
Change in net position
Total net position - beginning
Total net position - ending
Building
Maintenance
Fund
Unemployment
Insurance Fund
Liability
Insurance
Fund
Compensation
Insurance
Fund
6070 6100 6120 6140
8,732$ 363 $ 10,446$ 20,485 $ - - 5 7 8,732 363 10,451 20,492 3,553 - 321 3,141 - 112 13,080 17,734 5,122 1 1,729 1,740 8,675 113 15,130 22,615 57 250 (4,679) (2,123) 459 - - - 6 (10) 257 (127) - - - - 465 (10) 257 (127) 522 240 (4,422) (2,250) - - 3,000 - - - (9) 9 - - - - 522 240 (1,431)
(2,241)
1,798 77 1,791 (9,854) 2,320$ 317$ 360$ (12,095)$ (Continued)
206
Exhibit L-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
OPERATING REVENUE
S
Charges for services
Miscellaneous revenue
Total operating revenues
OPERATING EXPENSES
Salaries and benefits
Claims and settlement
Maintenance and operation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES
)
Intergovernmental grants
Use of money and property
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Transfers in
Capital grants and contributions (expenses)
Transfers out
Change in net position
Total net position - beginning
Total net position - ending
Dental
Insurance
Fund
Medical
Insurance
Fund
Vision
Insurance
Fund
Employee
Benefits Fund
6150 6160 6170 6400
1,229$ 26,696 $ 200 $ 5,416 $ - 48 - - 1,229 26,744 200 5,416 - - - - 1,243 20,037 168 5,660 62 1,331 12 9
1,305 21,368 180 5,669
(76) 5,376 20 (253) - - - - 6 (146) - 33 - - - - 6 (146) - 33 (70) 5,230 20 (220) - - - - - - - - - - - - (70) 5,230 20
(220)
380 (900) 282 (1,745) 310$ 4,330$ 302$ (1,965)$ (Continued)
207
Exhibit L-2
CITY OF GLENDALE
Combining Statement of Revenues,
Expenses, and Changes in Net Position
Internal Service Funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
OPERATING REVENUE
S
Charges for services
Miscellaneous revenue
Total operating revenues
OPERATING EXPENSES
Salaries and benefits
Claims and settlement
Maintenance and operation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES
)
Intergovernmental grants
Use of money and property
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before contributions and
transfers
Transfers in
Capital grants and contributions (expenses)
Transfers out
Change in net position
Total net position - beginning
Total net position - ending
Retiree
Health
Savings Plan
(RHSP)
Benefits Fund
Post
Employment
Benefits Fund
Wireless
Fund
6410 6420 6600
1,019$ 802$ 4,801$ 117,725$ - 1 22 98 1,019 803 4,823 117,823 - - 968 19,868 1,193 703 - 59,930 6 8 3,709 40,005 1,199 711 4,677 119,803 (180) 92 146 (1,980) - - - 462 149 (2) (23) 337 - - (7) (137) 149 (2) (30) 662 (31) 90 116 (1,318) - - - 10,910 - - - - (3,000) - - (3,000) (3,031) 90 116
6,592
5,003 64 9,133 47,493 1,972$ 154$ 9,249$ 54,085$ Total Internal
Service
Funds
208
Exhibit L-3
CITY OF GLENDALE
Statement of Cash Flows
Internal service funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
Fleet
Management
Fund
Joint Air Support
Fund
ITD
Infrastructure
Fund
ITD Applications
Fund
6010 6020 6030 6040
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 14,101$ 1,254$ 14,327$ 7,822$ Payments to employees (5,036) (173) (3,926) (3,075) Payments to suppliers (7,189) (781) (5,369) (6,499) Intergovernmental grants received 3 - - -
Net cash provided (used) by operating activities 1,879 300 5,032 (1,752)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Lease and PPP revenue received - - - -
Amounts received from (paid to) other funds (55) - - - Transfers in (out), net 7,800 - 110 -
Net cash provided (used) by noncapital financing
activities 7,745 - 110 -
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (1,569) - (1,757) (1,435) Proceeds from sales of capital assets 185 - - -
Net cash provided (used) by capital and related
financing activities (1,384) - (1,757) (1,435)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 1 (26) (122) 127
Net cash provided (used) by investing activities 1 (26) (122) 127 Net increase (decrease) in cash and cash equivalents 8,241 274 3,263 (3,060) Balances - beginning of year - 5,480 1,753 5,294
Balances - end of the year 8,241 5,754
5,016 2,234
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating Income (loss) (581) 433 2,657 (3,119)
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 3,245 103 1,647 1,380
Amortization - - 44 633
Intergovernmental grants received 3 - - -
(Increase) Decrease Accounts receivable, net 100 (157) - 10 (Increase) Decrease Inventories (211) - - -
(Increase) Decrease Prepaid expenses (1,010) - - - Increase (Decrease) Accrued wages payable 24 1 20 34 Increase (Decrease) Compensated absences - - - -
Increase (Decrease) Accounts payable 309 (80) 664 (690) Increase (Decrease) Claims payable - - - -
Net cash provided (used) by operating activities 1,879$ 300$ 5,032$ (1,752)$ (Continued)
209
Exhibit L-3
CITY OF GLENDALE
Statement of Cash Flows
Internal service funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Payments to employees
Payments to suppliers
Intergovernmental grants received
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Lease and PPP revenue received
Amounts received from (paid to) other funds
Transfers in (out), net
Net cash provided (used) by noncapital financing
activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sales of capital assets
Net cash provided (used) by capital and related
financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation
Amortization
Intergovernmental grants received
(Increase) Decrease Accounts receivable, net
(Increase) Decrease Inventories
(Increase) Decrease Prepaid expenses
Increase (Decrease) Accrued wages payable
Increase (Decrease) Compensated absences
Increase (Decrease) Accounts payable
Increase (Decrease) Claims payable
Net cash provided (used) by operating activities
Building
Maintenance
Fund
Unemployment
Insurance Fund
Liability
Insurance
Fund
Compensation
Insurance Fund
6070 6100 6120 6140
8,731$ 361 $ 10,348 $ 20,261 $ (3,663) - (331) (3,073) (4,995) (106) (17,930) (12,670) 459 - - - 532 255 (7,913) 4,518 - - - - - - - - - - 3,000 - - - 3,000 - - - - - - - - - - - -
-
3 (12) 254 (271) 3 (12) 254 (271) 535 243 (4,659) 4,247 2,305 81 19,189 51,263 2,840 324 14,530 55,510 57 250 (4,679) (2,123) 5 - 3 - - - - - 459 - - -
- (3) (102) (225) - - - - - - - - 3 - 4 97 - - - - 8 8 (24) 28 - - (3,115) 6,741 532$ 255$ (7,913)$ 4,518$ (Continued)
210
Exhibit L-3
CITY OF GLENDALE
Statement of Cash Flows
Internal service funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Payments to employees
Payments to suppliers
Intergovernmental grants received
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Lease and PPP revenue received
Amounts received from (paid to) other funds
Transfers in (out), net
Net cash provided (used) by noncapital financing
activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sales of capital assets
Net cash provided (used) by capital and related
financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation
Amortization
Intergovernmental grants received
(Increase) Decrease Accounts receivable, net
(Increase) Decrease Inventories
(Increase) Decrease Prepaid expenses
Increase (Decrease) Accrued wages payable
Increase (Decrease) Compensated absences
Increase (Decrease) Accounts payable
Increase (Decrease) Claims payable
Net cash provided (used) by operating activities
Dental
Insurance
Fund
Medical
Insurance
Fund
Vision
Insurance
Fund
Employee
Benefits Fund
6150 6160 6170 6400
1,190$ 25,725 $ 193 $ 5,364 $ - - - (5,393) (1,407) (22,523) (183) (10) - - - - (217) 3,202 10 (39) - - - - - - - - - - - - - - - - - - - - - - - - - -
- -
5 (171) (1) (2) 5 (171) (1) (2) (212) 3,031 9 (41) 566 1,461 295 16,949 354 4,492 304 16,908 (76) 5,376 20 (253) - - - - - - - - - - - - (39) (1,018) (7) (53) - - - - - - - - - - - (37) - - - 304 (102) (1,128) (3) - - (28) - - (217)$ 3,202$ 10$ (39)$ (Continued)
211
Exhibit L-3
CITY OF GLENDALE
Statement of Cash Flows
Internal service funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers
Payments to employees
Payments to suppliers
Intergovernmental grants received
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Lease and PPP revenue received
Amounts received from (paid to) other funds
Transfers in (out), net
Net cash provided (used) by noncapital financing
activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets
Proceeds from sales of capital assets
Net cash provided (used) by capital and related
financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
Net cash provided (used) by investing activities
Net increase (decrease) in cash and cash equivalents
Balances - beginning of year
Balances - end of the year
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation
Amortization
Intergovernmental grants received
(Increase) Decrease Accounts receivable, net
(Increase) Decrease Inventories
(Increase) Decrease Prepaid expenses
Increase (Decrease) Accrued wages payable
Increase (Decrease) Compensated absences
Increase (Decrease) Accounts payable
Increase (Decrease) Claims payable
Net cash provided (used) by operating activities
Retiree Health
Savings Plan
(RHSP) Benefits
Fund
Post
Employment
Benefits Fund Wireless Fund
6410 6420 6600
1,006$ 797 $ 4,823 $ 116,303 $ - - (1,008) (25,678) (1,084) (673) (1,866) (83,285) - - - 462 (78) 124 1,949 7,802 - - 41 41 - - - (55) (3,000) - - 7,910 (3,000) - 41 7,896 - - (853) (5,614) - - - 185 - - (853) (5,429) 128
(3) (79) (169)
128 (3) (79) (169) (2,950) 121 1,058 10,100 18,120 62 2,706 125,524 15,170 183 3,764 135,624 (180) 92 146 (1,980) - - 1,839 8,222 - - - 677 - - - 462 (14) (4) - (1,512) - - - (211) - - - (1,010) - - (9) 137 - - - 304 116 36 (27) (885) - - - 3,598 (78)$ 124$ 1,949$ 7,802$ Total Internal
Service Funds
212
CUSTODIAL FUNDS
This section of the Annual Comprehensive Financial Report provides information on custodial funds. Custodial funds are fiduciary activities that are not held in a trust or equivalent arrangement.
CUSTODIAL FUNDS
7020 & 8020- ICI System Fund - To account for monies received and expended by the City under the Joint Powers Agreement for Interagency Communications Interoperability System Authority. 7030 - Unclaimed Evidence Fund - To account for monies seized by Police as evidence.
7040 – Regional Housing Trust JPA Fund - To account for monies received and expended by the City under the Burbank-Glendale-Pasadena Regional Housing Trust (BGPRHT). The creation of BGPRHT was authorized by the California Sta
te Legislature and signed into law by the Governor in August 2022, for the purpose of planning and con
structing housing, receiving public funds, and authorizing the issuance of bonds for the purposes of funding affordabl
e housing for people of extremely low, very low, low, and moderate-income households. 213
This page is left blank intentionally.
214
Exhibit M-1
CITY OF GLENDALE
Combining Statement of Fiduciary Net Position
Custodial Funds
June 30, 2023
(amounts expressed in thousands)
ICI System
Fund
7020 & 8020
Unclaimed
Evidence
Fund
7030
Regional
Housing Trust
JPA Fund
7040
Total
Custodial
Funds
ASSETS
Cash and investments 2,040 $ 2,549 $ 23,005 $ 27,594 $ Interest receivable 15 - - 15
Capital assets, net 130 - - 130
Capital assets, not being depreciated 2,795 - - 2,795 Total assets 4,980 2,549 23,005 30,534
LIABILITIES
Accounts payable 33 - - 33
NET POSITION
Net investment in capital assets 2,925 - - 2,925
Restricted for:
ICI system 2,022 - - 2,022
Regional Housing Trust JPA - - 23,005 23,005 Unclaimed evidence - 2,549 - 2,549
Total net position 4,947$ 2,549$ 23,005$ 30,501$ 215
Exhibit M-2
CITY OF GLENDALE
Custodial funds
For the Year Ended June 30, 2023
(amounts expressed in thousands)
ICI System
Fund
7020 & 8020
Unclaimed
Evidence
Fund
7030
Regional
Housing Trust
JPA Fund
7040
Total
Custodial
Funds
ADDITIONS
Revenue from other agencies - $ - $ 23,000$ 23,000$ Charges for services 2,998 - - 2,998 Interest income (6) - 5 (1) Unclaimed deposits - 968 - 968 Total additions 2,992 968 23,005 26,965
DEDUCTIONS
Depreciation 26 - - 26 Operating expenses 2,773 - - 2,773 Escheatment - 23 - 23 Refunds - 267 - 267 Total deductions 2,799 290 - 3,089 Net increase (decrease) in
fiduciary net position 193 678 23,005 23,876 Net Position - beginning of the year 4,754 1,871 - 6,625 Net Position - end of the year 4,947$ 2,549$ 23,005$ 30,501$ Combining Statement of Changes in Fiduciary Net Position