CITY of ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2018
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Introductory Sect,ion ;. -- \ I I I I I 1'" .. i ! ,.• i :· _.... _-· ...... ·.. -·. _· ·._ .. _. _; ·:· ' .. ,,J ' \'--------•n_t_ro_d_u_c_to_r_y_s_e_c_t_1o_n___ _.J CITY OF ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2018 INTRODUCTORY SECTION Page Letter of Transmittal 1 GFOA Certificate of Achievement for Excellence in Financial Reporting 9 Organization Chart 11 Administrative Personnel 12 FINANCIAL SECTION lndependentAuditor's Report 13 Management's Discussion and Analysis 15 Basic Financial Statements Government-wide Statements Statement of Net Position 29 Statement of Activities 31 Fund Financial Statements Balance Sheet - Governmental Funds 33 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 34 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 35 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 36 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - General Fund 37 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Budgetary Basis Actual - Housing Authority 38 Statement of Net Position - Proprietary Funds 39 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 41 Statement of Cash Flows - Proprietary Funds 42 Statement of Fiduciary Net Position (Deficit) - Fiduciary Funds 44 Statement of Changes in Fiduciary Net Position (Deficit) - Fiduciary Funds 45 Notes to Financial Statements 47 Required Supplementary Information Schedule of Changes in the Net Pension Liability and Related Ratios 93 Schedule of Pension Plan Contributions 95 Schedule of Changes in the Net Other Postemployment Benefits (OPES) Liability and Related Ratios 96 Schedule of Other Postemployment Benefits (OPEB) Plan Contributions 97 Combining Individual Fund Statements and Schedules Government Funds Combining Balance Sheet - Nonmajor Governmental Funds by Fund Type 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds by Fund Type 100 Combining Balance Sheet- Nonmajor Special Revenue.Funds 101 Combining Statement of Revenues, Expenditures and Changes in Fund Balan.ces (Deficit) - Nonmajor_ Special Revenue Funds 102 Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Budget and Actual -All Nonmajor Special Revenue Funds 103 Combining Balance Sheet - Nonmajor Debt Service Funds 107 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - NonmajorDebt Service Funds 108 CITY OF ANAHEIM Comprehensive Annual Financial Report Table of Contents June 30, 2018 (continued) Page Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -All Debt Service Funds 109 Combining Balance Sheet - Nonmajor Capital Projects Funds 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Nonmajor Capital Projects Funds 111 Schedule of Revenues, Expenditures and Changes in Fund Balances (Deficits)- Budget and Budgetary Basis Actual -All Capital Projects Funds 112 Internal Service Funds Combining Statement of Net Position - Internal Service Funds 117 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 118 Combining Statement of Cash Flows - Internal Service Funds 119 Fiduciary Funds Statement of Changes in Fiduciary Assets and Liabilities - Agency Fund - Mello-Roos 121 STATISTICAL INFORMATION (Unaudited) Net Position by Component - Last Ten Fiscal Years 124 Changes in Net Position - Last Ten Fiscal Years 125 Governmental Activities Tax Revenues By Source - Last Ten Fiscal Years 127 Fund Balances of Governmental Funds - Last Ten Fiscal Years 128 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 129 General Government Tax Revenues By Source - Last Ten Fiscal Years 130 Assessed Value and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 131 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 132 Principal Property Tax Payers - Current Year an.ct Nine Years Ago 133 Property Tax Levies and Collections - Last Ten Fiscal Years 134 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 135 Ratios of Net General Bonded Debt Outstanding - Last Ten Fiscal Years 136 Direct and Overlapping Governmental Activities Debt -As of June 30, 2018 137 Legal Debt Margin - Last Ten Fiscal Years 139 Pledged-Revenue Coverage - Last Ten Fiscal Years 140 Demographic and Economic Statistics - Last Ten Fiscal Years 142 Principal Employers - Current Year and Nine Years Ago 143 Full-time Equivalent City Government Employees by Function/Program - Last Ten Fiscal Years 144 Operating Indicators by Function - Last Ten Fiscal Years 145 Capital Assets Statistics by Function - Last Ten Fiscal Years 147 OTHER INFORMATION 149 Summary of Pension Obligation Funding Progress Summary of Other Postemployment Benefits (OPEB) Funding Progress 150 151 City of Anaheim Map Center, the Anaheim Regional Transportation lntermodal Center (ARTIC), and two City of .Anaheim, California major league professional sports teams-the Angels,Major League Baseball team, Finance .o·epartment which utilizes Angel Stadium of Anaheim, and the Anaheim Ducks National· Hockey League team, which utilizes the Honda Center. Anaheim is a significant contributor to the diverse Orange County economy, which is home to more than 8,500 manufacturing plants. Product manufacturers include notable manufacturing businesses focused on defense and aerospace, biomedical, electronics, machinery, and computer products. The City has over 24,00d a'ctive business licenses, of which over 17,500 are businesses operating within the City's boundaries. December 19, 2018 The economy, continues to grow moderately and while there is little reason to believe that a recession is on the immediate horizon, we are cautious of. the possibility in the coming years. Job growth nationally and locally has had a ·significant impact on. the To the Honorable Mayor and City Council economy. and should continue to bolster the economic outlook over ·the next few City of Anaheim years. Anaheim, California The unemployment rate in Anaheim for June 2018 was 3.5%, while the national In accordance with the Charter of the City of Anaheim· (City), please.·accept average was at 4.0% and the state average at 4.5%. · submission of the Comprehensive Annual Financial Report (CAFR) for the fiscal achievements realized in ·the year ending June 30, 2018. Responsibility for the accuracy of the data, The City will continue to build on the successes and year,. and remain committed to efforts to' grow service levels. Tlie City's "Big completeness, and fairness. of the presentation, including all disclosures, rests with current Three" revenue sources of transient occupancy tax, property tax, and sales and use We believe the data included is accurate in all material aspects, and is the City. tax, have all shown-steady growth this year. As the City moves througn fiscal. year and presented in a manner designed to faidy set forth the financial position 2018/19, we are optimistic about continued growth but will remain attentive to the ·operational achievements of the City, as measured by the financial activity of its prevailing economic climate and mindful of managing enhanced services Within the various funds. In addition, all disclosures necessary to enable the reader to gain limits of the City's General Fund. maximum understanding of the City's financial activities have been included. MAJOR INITIATIVES The City Charter requires a'n annual audit of the City's financial statements by an independent Certified . Public Accountant. Accordingly, this year's audit was With direction from the Mayor and City Council, City Administration identifies the compieted by KPMG LLP. In addition to meeting the requirements set forth in the priorities that shapes the path for Anaheim's future. City initiatives are reevaluated City Charter, the audit was also. designed to meet the .requirements of the Single regularly, and new items are frequently added to ensure that City efforts are Audit Act Amendments of 1996' and the Uniform Guidance. The auditors' report on consistent with the priorities of our policy body and the commtmity. The City strives the basic·financial statements is included in the financial section.