2015 CAFR City of Fresno, California Comprehensive Annual Financial Report For the fiscal year ended June 30, 2015 2015 CAFR Comprehensive Annual Financial Report City of Fresno, California For the fiscal year ended June 30, 2015 Prepared by The City of Fresno Finance Department Michael Lima, Finance Director/City Controller Financial Reporting Staff Karen M. Bradley, CPA, Assistant Controller S. Kim Jackson, Administrative Manager Margaret Bell, CPA, Principal Accountant Roberta Cope, CPA, Principal Accountant Greg Wiles, CPA, Treasury Officer Phillip Hardcastle, Principal Accountant Anita Villarreal, Management Analyst II Gilbert Elizondo, Senior Accountant-Auditor Corrina Barbarite, Senior Accountant-Auditor Mary Boyajian, Accountant-Auditor II Karen Hillius, Accountant-Auditor II Jose Barboza, Accounting Technician Lilly A. Bañuelos, Executive Assistant Special Thanks to Renona Sawatzky, Accountant-Auditor II Janice Denman, Accountant-Auditor II CAFR, Single Audit and Capital Asset Leads in all City Departments throughout the City City of Fresno ● www.fresno.gov This page intentionally left blank. 2015 CAFR Comprehensive Annual Financial Report City of Fresno, California For the fiscal year ended June 30, 2015 INTRODUCTORY SECTION City of Fresno ● www.fresno.gov 2015 CAFR Comprehensive Annual Financial Report City of Fresno, California For the fiscal year ended June 30, 2015 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Controller’s Transmittal Letter ...................................................................................................................................... I City Operating Fund Structure .................................................................................................................................... XI City Organizational Chart ........................................................................................................................................... XII Directory of City Officials ........................................................................................................................................... XIII Certificate of Achievement – Government Finance Officers Association ............................................................... XV FINANCIAL SECTION Independent Auditor’s Report ..................................................................................................................................... 1 Management’s Discussion and Analysis (Unaudited) ................................................................................................ 5 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Position ........................................................................................................................................ 49 Statement of Activities .............................................................................................................................................. 50 Fund Financial Statements: Balance Sheet – Governmental Funds .................................................................................................................... 54 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position ............................. 55 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ........................ 56 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ..................................................................................... 57 Statement of Net Position – Proprietary Funds ....................................................................................................... 58 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ............................... 62 Statement of Cash Flows – Proprietary Funds ........................................................................................................ 64 Statement of Fiduciary Net Position – Fiduciary Funds – Trust and Agency Funds .............................................. 68 Statement of Changes in Fiduciary Net Position – Fiduciary Funds – Trust Funds .............................................. 69 City of Fresno ● www.fresno.gov 2015 CAFR Comprehensive Annual Financial Report City of Fresno, California For the fiscal year ended June 30, 2015 TABLE OF CONTENTS - CONTINUED PAGE Notes to Financial Statements: Note 1 Summary of Significant Accounting Policies ............................................................................................... 71 Note 2 Cash and Investments .................................................................................................................................. 97 Note 3 Property Taxes ............................................................................................................................................. 109 Note 4 Receivables ................................................................................................................................................. 110 Note 5 Property, Plant and Equipment – Capital Assets ...................................................................................... 112 Note 6 Long-Term Liabilities ................................................................................................................................... 118 Note 7 Interfund Activity ......................................................................................................................................... 130 Note 8 Defeasance and Refunding of Long-Term Debt ........................................................................................ 137 Note 9 Risk Management Fund ............................................................................................................................. 138 Note 10 Employee Benefit Programs ..................................................................................................................... 139 Note 11 No-Commitment Debt ............................................................................................................................... 163 Note 12 Commitments and Contingencies ........................................................................................................... 164 Note 13 Securities Lending .................................................................................................................................... 174 Note 14 Other Information ..................................................................................................................................... 174 Note 15 Change in Accounting Estimate and Cumulative Effect of Accounting Change ................................... 174 Note 16 Subsequent Events................................................................................................................................... 176 Note 17 Restated Financial Results Due to a Correction of an Error .................................................................. 179 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP Budgetary Basis) General Fund ................................................................................................................................................... 182 Grants Special Revenue Fund......................................................................................................................... 184 Notes to the Required Supplementary Information .............................................................................................. 186 Schedule of Investment Returns – Employees, Fire and Police Retirement Systems ........................................ 189 Schedules of Funding Progress .............................................................................................................................. 190 Schedule of Changes in Net Pension Liability and Related Ratios– Employees, Fire and Police Retirement Systems ............................................................................................................................................................ 191 Schedule of Employer Contributions – Employees, Fire and Police Retirement Systems .................................. 192 Retirees Healthcare Plan – Other Postemployment Benefits – Schedule of Funding Progress ........................ 193 City of Fresno ● www.fresno.gov 2015 CAFR Comprehensive Annual Financial Report City of Fresno, California For the fiscal year ended June 30, 2015 TABLE OF CONTENTS - CONTINUED PAGE OTHER SUPPLEMENTARY INFORMATION: COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES: Nonmajor Governmental Funds: Combining Balance Sheet – Nonmajor Governmental Funds .............................................................................. 196 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ....................................................................................................................... 198 Schedule of Revenues and Expenditures – Budget and Actual (Non-GAAP Budgetary Basis) High Speed Rail ................................................................................................................................................ 200 Special Gas Tax ...............................................................................................................................................