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AGENDA
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
JANUARY 18, 2022
ORO VALLEY COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 4:00 PM
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
CALL TO AUDIENCE - at this time, any member of the public is allowed to address the Commission on any
issue not listed on today’s agenda. Pursuant to the Arizona open meeting law, individual Commission
members may ask Town staff to review the matter, ask that the matter be placed on a future agenda, or
respond to criticism made by speakers. However, the Commission may not discuss or take legal action on
matters raised during "Call to Audience." In order to speak during "Call to Audience", please specify what
you wish to discuss when completing the blue speaker card.
STAFF LIAISON REPORT
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE NOVEMBER 15, 2021 REGULAR SESSION MEETING MINUTES
2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE
THROUGH NOVEMBER 2021 (Please reference the attachments for the Town's monthly financial update)
3.PRESENTATION AND DISCUSSION OF TOWN ANNUAL COMPREHENSIVE FINANCIAL REPORT
AND SINGLE AUDIT FOR FISCAL YEAR ENDED JUNE 30, 2021
COUNCIL LIAISON COMMENTS
FUTURE AGENDA ITEMS
ADJOURNMENT
POSTED: 1/12/22 by P.P.
When possible, a packet of agenda materials as listed above is available for public inspection at least 24 hours prior
to the Commission meeting in the Town Clerk's Office between the hours of 8:00 a.m. – 5:00 p.m.
The Town of Oro Valley complies with the Americans with Disabilities Act (ADA). If any person with a disability needs
any type of accommodation, please notify the Town Clerk’s Office at least five days prior to the Commission meeting
at 229-4700.
INSTRUCTIONS TO SPEAKERS
Members of the public have the right to speak during any posted public hearing. However, those items not
listed as a public hearing are for consideration and action by the Commission during the course of their
business meeting. Members of the public may be allowed to speak on these topics at the discretion of the
Chair.
If you wish to address the Commission on any item(s) on this agenda, please complete a blue speaker card located
on the Agenda table at the back of the room and give it to the Recording Secretary. Please indicate on the
speaker card which item number and topic you wish to speak on, or if you wish to speak during “Call to
Audience,” please specify what you wish to discuss when completing the blue speaker card.
Please step forward to the podium when the Chair announces the item(s) on the agenda which you are interested in
addressing.
1. For the record, please state your name and whether or not you are a Town resident.
2. Speak only on the issue currently being discussed by the Commission. Please organize your speech, you will only
be allowed to address the Commission once regarding the topic being discussed.
3. Please limit your comments to 3 minutes.
4. During “Call to Audience”, you may address the Commission on any issue you wish.
5. Any member of the public speaking must speak in a courteous and respectful manner to those present.
In accordance with the Pima County Health Department’s most recent health advisory, the Town respectfully
asks all in-person meeting attendees, regardless of vaccination status, to please wear a mask while indoors.
COVID-19 remains a fluid situation, and the Town will adjust its safety guidelines in accordance with any
future health advisories from the Health Department.
Thank you for your cooperation.
“Notice of Possible Quorum of the Oro Valley Town Council, Boards, Commissions and Committees: In accordance
with Chapter 3, Title 38, Arizona Revised Statutes and Section 2-4-4 of the Oro Valley Town Code, a majority of the
Town Council, Board of Adjustment, Historic Preservation Commission, Parks and Recreation Advisory Board,
Stormwater Utility Commission, and Water Utility Commission may attend the above referenced meeting as a
member of the audience only.”
Budget and Finance Commission 1.
Meeting Date:01/18/2022
Submitted By:Alison Cote, Legal
SUBJECT:
REVIEW AND APPROVAL OF THE NOVEMBER 15, 2021 REGULAR SESSION MEETING MINUTES
RECOMMENDATION:
Staff recomends approval.
EXECUTIVE SUMMARY:
N/A
BACKGROUND OR DETAILED INFORMATION:
N/A
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
"I MOVE to approve (approve with changes) the November 15, 2021 regular session meeting minutes."
Attachments
Draft Minutes - 11/15/21
D R A F T
MINUTES
BUDGET AND FINANCE COMMISSION
REGULAR SESSION
NOVEMBER 15, 2021
COUNCIL CHAMBERS
11000 N. LA CAÑADA DRIVE
REGULAR SESSION AT OR AFTER 4:00 PM
CALL TO ORDER - Chair Latchford called the meeting to order at 4:03 P.M.
ROLL CALL
Present: John Latchford, Chairman
Cathy Solverson, Vice Chairman
James Beasley, Commissioner
David Newell, Commissioner
Absent:Michael Mason, Commissioner
Staff Present:David Gephart, Chief Financial Officer
Wendy Gomez, Finance and Budget Administrator
Chris Hutchison, Senior Budget Analyst
Tobin Sidles, Legal Services Director
PLEDGE OF ALLEGIANCE - Chair Latchford led the group in the Pledge of Allegiance.
CALL TO AUDIENCE - No comments were received.
STAFF LIAISON REPORT
Chief Financial Officer David Gephart reported on the following:
- the Town's investments with PFM Asset Management
- an opening on the Budget and Finance Commission
- budget season for next fiscal year will be starting soon
- status of the CAFR
- status of an ASRS update
- potentially canceling the next meeting for the holidays
REGULAR SESSION AGENDA
1.REVIEW AND APPROVAL OF THE OCTOBER 19, 2021 REGULAR SESSION MEETING MINUTES
Motion by Commissioner James Beasley, seconded by Commissioner David Newell to approve the
October 19, 2021 meeting minutes as written.
Vote: 4 - 0 Carried
2.PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE
THROUGH SEPTEMBER 2021
Finance and Budget Administrator Wendy Gomez presented on the Town of Oro Valley's FY 2021/2022
Financial Update through September 2021.
Discussion ensued amongst staff and commissioners.
Commission members thanked Commissioner Newell for his service to the Budget and Finance
Commission.
FUTURE AGENDA ITEMS
- Commission members decided to cancel the next meeting and reconvene on January 18, 2022.
ADJOURNMENT
Motion by Commissioner James Beasley, seconded by Vice Chairman Cathy Solverson to adjourn the
meeting at 4:53 P.M.
Vote: 4 - 0 Carried
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the regular session of the
Town of Oro Valley Budget and Finance Commission of Oro Valley, Arizona held on the 15th day of November,
2021. I further certify that the meeting was duly called and held and that a quorum was present.
Dated this 17 day of November, 2021.
___________________________
Alison Cote
Legal Secretary
Budget and Finance Commission 2.
Meeting Date:01/18/2022
Submitted By:Christopher Hutchison, Finance
SUBJECT:
PRESENTATION AND POSSIBLE DISCUSSION OF THE TOWN'S FY 21/22 FINANCIAL UPDATE THROUGH
NOVEMBER 2021 (Please reference the attachments for the Town's monthly financial update)
RECOMMENDATION:
N/A
EXECUTIVE SUMMARY:
Please reference attachments.
BACKGROUND OR DETAILED INFORMATION:
Please reference attachments.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Attachments
Council Memo - Nov 2021 Financial Update
Attachment A - General Fund
Attachment B - Highway Fund
Attachment C-1 - Community Center Fund
Attachment C-2 Golf Contractor P&L
Attachment D - Summary All Funds
Attachment E - Gen Fund Local Sales Tax
Attachment F - Gen Fund State Shared Revenues
Town Manager’s Office
TOWN COUNCIL REPORT
DATE: January 19, 2022
TO: Mayor and Council
THRU: Mary Jacobs, Town Manager
FROM: David Gephart, Chief Financial Officer
SUBJECT: November 2021 Financial Update
This financial update is intended to provide an overview and status of revenues and expenditures for the
Town’s selected funds through November 2021 for fiscal year 2021/22. Funds included in this financial
update are the General Fund, Highway Fund and Community Center Fund. All amounts are preliminary,
un-audited and subject to change based upon adjusting entries, as necessary.
EXECUTIVE SUMMARY:
Revenues are performing well compared to budget, and expenditures are trending as expected. A few
variances are noted at this time, which are discussed below.
General Fund
Overall, General Fund revenues are trending better than expected and expenditures are trending as
expected through November (See Attachment A). Revenues total $18.7 million or 39.7% of budget, while
expenditures are at $28.0 million or 45.7% of the total budget. Included in the expenditures is a $10 million
budgeted payment to PSPRS to pay down the Town’s unfunded liability.
Highway Fund
Revenues and expenditures for the Highway Fund are trending as expected through November (See
Attachment B). Revenues total $1.6 million or 44.4% of budget while expenditures total $1.4 million or
33.9% of budget.
Community Center Fund
Revenues for the Community Center Fund are trending higher than expected and expenditures are as
expected through November (See Attachment C-1 & C-2). Revenues total $3.3 million or 44.6% of budget
while expenditures total $2.6 million or 34.0% of budget.
BACKGROUND AND DETAILED INFORMATION:
GENERAL FUND
Attachment A shows General Fund revenues and expenditures through November, as well as year-end
estimates for each category. The estimated year-end projections in the General Fund are as follows:
Revenues: $51,864,379
Less:
Expenditures: ($60,123,472)
Preliminary Estimated Decrease in Fund Balance: ($8,259,093)*
*The estimated change in fund balance is primarily due to a one-time payment of $10 million to PSPRS to
pay down the unfunded liability.
General Fund Revenues
Local sales tax collections in the General Fund total $10.5 million or 49.6% of the budgeted amount
of $21.2 million and are performing better than anticipated. Retail collections total $3.4 million,
which is $367,870 or 12.2% higher than collections from the same time period last fiscal year. Both
restaurant/bar collections as well as bed tax collections are up 43.3% and 165.0% respectively
compared to collections from the same time period last fiscal year. Construction sales tax
collections total $2.9 million through November 2021, which is $428,461 or 17.1% higher than
collections from the same time period last fiscal year. Total local sales tax revenue is expected to
come in $2.4 million above budget due to strong performance across most tax categories. Please
see Attachment E for detailed information on General Fund local sales tax collections.
License and permit revenues total $673,000 or 36.4% of the budget amount of $1.8 million. Single
Family Residential (SFR) permits issued through November total 70 and are a large portion of this
revenue piece. This revenue category is expected to come in on budget at this time.
State shared revenues total $5.7 million or 41.2% of the budget amount of $13.7 million. These
revenues sources are comprised of state shared sales taxes, state shared income taxes and auto-
lieu fees. At this point in time, these revenues are forecasted to come in on budget.
Federal grants revenue is expected to be $2.2 million greater than originally budgeted due to
known, additional ARPA funding.
Charges for services revenues total $1,023,893 or 42.9% of the budget amount of $2.4 million. A
large portion of these revenues are associated with Parks & Recreation program revenues, which
are showing strong signs of recovery. Charges for services are forecasted to come in over budget
by $139,000, or 5.8%.
General Fund Expenditures
General Fund expenditures are trending as expected through November. In General
Administration, the Town has recorded a one-time, budgeted $10.0 million payment to PSPRS to
pay down the unfunded liability. Transfers out of the General Fund are expected to be $1.1 million
less than budgeted due to the pension obligation bonds that were issued in July. The Town
budgeted a full debt service payment; however, only an interest payment is due this year.
The General Fund is expected to end the fiscal year with a total fund balance of $24.1 million, or 44.8%
of budgeted expenditures
HIGHWAY FUND
Highway Fund Revenues
State shared highway user funds total $1.6 million or 44.3% of the budget amount of $3.6 million.
At this point in time, these revenues are estimated to come in at budgeted levels.
The year-end estimate for miscellaneous revenue reflects an unexpected insurance recovery
received in the amount of $4,069.
All other revenue sources for the fund are expected to come in on budget at this time.
Highway Fund Expenditures
Highway Fund expenditures are currently at $1.4 million or 33.9% of the adopted budget of $4.1
million. This is expected, due to the timing of the pavement preservation program. Highway Fund
expenditures are estimated to come in on budget.
The Highway Fund is expected to end the fiscal year with a fund balance of approximately $804,000.
COMMUNITY CENTER FUND
Attachment C-1 shows the consolidated financial status of the Community Center Fund with all revenues
and expenditures from contracted and Town-managed operations.
Attachment C-2 shows the monthly line-item detail for the contractor-managed operations, specifically
revenues and expenditures associated with the golf, food and beverage operations. The totals in the
revenue and expenditure categories in Attachment C-2 tie to the contracted operating revenues and
expenditures in Attachment C-1.
Community Center Fund Revenues
Revenues in the Community Center Fund through November total $3.3 million or 44.6% of the
budget amount of $7.4 million.
Contracted operating revenues total about $1.5 million through November. This is approximately
$178,000 or 13.5% higher than revenues from the same time period last fiscal year. At this time,
contracted revenues are estimated to come in about $318,000 or 8.8% higher than budgeted due
to anticipated, across-the-board outperformance compared to budget.
Town operating revenues for November are $477,380, a significant increase from the same time
period last year, due primarily to a recovery in recreation program revenue and member dues.
Town operating revenues are expected to end the fiscal year $266,000 or 38.1% over budget.
Local sales tax revenues for November total $1.3 million or 45.1% of the budget amount of $2.9
million. These collections are currently estimated to come in $331,434 or 11.3% over budget.
Community Center Fund Expenditures
Expenditures in the Community Center Fund total $2.6 million or 34.0% of the budgeted amount of
$7.8 million.
Contracted operating expenditures total $2.0 million, or 41.6% of the budgeted amount of $4.7
million. Contracted expenditures are estimated to come in approximately $205,000 or 4.4% under
budget, due to anticipated O&M and personnel savings.
Transfers out are expected to be $1.7 million less than budget. This is due to the Town having
budgeted a full debt service payment for the newly issued Parks and Recreation bonds whereas
only an interest payment is due this year.
At this time, the Community Center Fund is projected to end the fiscal year with a total fund balance
of $5.1 million.
The year-end sales tax support for golf operations is estimated to be $347,157. This figure includes a
projected ($555,233) for contracted golf operations, $125,000 in outside HOA contributions, and
approximately $83,000 in local sales taxes generated from golf related operations.
Please see Attachments A and B for additional details on the General Fund and Highway Fund. See
Attachments C-1 and C-2 for additional details on the Community Center Fund. See Attachment D for a
fiscal year-to-date consolidated summary of all Town Funds. See Attachment E for a breakdown of monthly
local sales tax collections for the General Fund. See Attachment F for a breakdown of state shared
revenues for the General Fund.
ATTACHMENT A
November YTD Financial Status
General Fund
% Budget Completion through November --- 41.7%
% Actuals YE % Variance
to Budget to Budget
REVENUES:`
LOCAL SALES TAX 10,485,965 21,157,707 49.6% 23,538,980 11.3%
LICENSES & PERMITS 673,082 1,849,000 36.4% 1,849,000 0.0%
FEDERAL GRANTS 52,609 5,990,290 0.9% 8,185,785 36.7%
STATE GRANTS 32,731 75,000 43.6% 75,000 0.0%
STATE/COUNTY SHARED 5,659,989 13,729,923 41.2% 13,729,923 0.0%
OTHER INTERGOVERNMENTAL 556,694 1,344,500 41.4% 1,419,500 5.6%
CHARGES FOR SERVICES 1,023,893 2,387,776 42.9% 2,527,191 5.8%
FINES 56,332 125,000 45.1% 125,000 0.0%
INTEREST INCOME 91,558 150,000 61.0% 150,000 0.0%
MISCELLANEOUS 39,354 264,000 14.9%264,000 0.0%
TOTAL REVENUES 18,672,207 47,073,196 39.7% 51,864,379 10.2%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES:
CLERK 142,654 383,833 37.2% 383,833 0.0%
COMMUNITY & ECON. DEV. 1,067,384 3,044,614 35.1% 2,975,428 -2.3%
COUNCIL 117,367 188,720 62.2% 188,720 0.0%
FINANCE 332,662 979,655 34.0% 979,655 0.0%
GENERAL ADMINISTRATION 11,048,876 14,459,559 76.4% 14,459,559 0.0%
HUMAN RESOURCES 169,319 535,390 31.6% 535,390 0.0%
INNOVATION & TECHNOLOGY 1,785,257 4,346,583 41.1% 4,346,583 0.0%
LEGAL 320,724 902,754 35.5% 902,754 0.0%
MAGISTRATE COURT 336,396 914,796 36.8% 914,796 0.0%
MANAGER 403,966 1,115,224 36.2% 1,115,224 0.0%
PARKS & RECREATION 1,327,092 3,446,361 38.5% 3,438,607 -0.2%
POLICE 6,327,591 18,171,000 34.8% 18,171,000 0.0%
PUBLIC WORKS 1,911,683 5,364,091 35.6% 5,449,091 1.6%
TRANSFERS OUT 2,685,314 7,408,264 36.2%6,262,832 -15.5%
TOTAL EXPENDITURES 27,976,285 61,260,844 45.7% 60,123,472 -1.9%
SURPLUS / (DEFICIT) (9,304,078) (14,187,648) (8,259,093)
BEGINNING FUND BALANCE **32,408,542
Plus: Surplus / (Deficit)(8,259,093)
ENDING FUND BALANCE **24,149,449
* Year-end estimates are subject to further revision
** Beginning and ending fund balance amounts are estimates and are subject to further revision
FY 2021/2022
Year End
Estimate *
Budget Year End
Estimate *
Actuals
thru 11/2021
Actuals
thru 11/2021
Budget
ATTACHMENT B
November YTD Financial Status FY 2021/2022
% Budget Completion through November --- 41.7%
Actuals
thru 11/2021 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
REVENUES:-
LICENSES & PERMITS 11,814 25,000 47.3% 25,000 0.0%
STATE/COUNTY SHARED 1,600,957 3,614,922 44.3% 3,614,922 0.0%
INTEREST INCOME 2,664 6,000 44.4% 6,000 0.0%
MISCELLANEOUS 4,171 2,000 208.6%6,069 203.5%
TOTAL REVENUES 1,619,606 3,647,922 44.4% 3,651,991 0.1%
Actuals
thru 11/2021 Budget % Actuals
to Budget
Year End
Estimate *
YE % Variance
to Budget
EXPENDITURES:
TRANSPORTATION ENGINEERING 1,129,467 3,766,525 30.0% 3,766,525 0.0%
STREET MAINTENANCE 127,830 324,000 39.5%324,000 0.0%
TOTAL EXPENDITURES 1,257,297 4,090,525 30.7% 4,090,525 0.0%
SURPLUS / (DEFICIT) 362,309 (442,603) (438,534)
BEGINNING FUND BALANCE ** 1,242,978
Plus: Surplus / (Deficit) (438,534)
ENDING FUND BALANCE ** 804,444
* Year-end estimates are subject to further revision
** Beginning and ending fund balance amounts are estimates and are subject to further revision
Highway Fund
ATTACHMENT C-1
November YTD Financial Status
% Budget Completion through November --- 41.7%
% Actuals YE % Variance
to Budget to Budget
REVENUES:
CONTRACTED OPERATING REVENUES
Golf Revenues, Trail and Cart Fees 728,603 1,966,245 37.1% 2,021,925 2.8%
Member Dues 451,976 957,000 47.2% 1,113,750 16.4%
Food & Beverage 225,778 473,465 47.7% 554,880 17.2%
Merchandise & Other 90,438 225,675 40.1%250,187 10.9%
1,496,796 3,622,385 41.3% 3,940,742 8.8%
TOWN OPERATING REVENUES
Daily Drop-Ins 18,942 30,000 63.1% 40,000 33.3%
Member Dues 298,281 526,480 56.7% 600,000 14.0%
Recreation Programs 123,123 82,500 149.2% 240,000 190.9%
Swim Team/Swim Lessons - 8,000 0.0% 8,000 0.0%
Facility Rental Income 37,034 50,500 73.3%75,000 48.5%
477,380 697,480 68.4% 963,000 38.1%
OTHER REVENUES
Local Sales Tax 1,323,240 2,932,798 45.1% 3,264,232 11.3%
Real Property Rental Income - 19,502 0.0% 19,502 0.0%
Interest Income 5,065 1,000 506.5% 1,000 0.0%
Miscellaneous 46 125,100 0.0%125,100 0.0%
1,328,351 3,078,400 43.2% 3,409,834 10.8%
TOTAL REVENUES 3,302,527 7,398,265 44.6% 8,313,576 12.4%
% Actuals YE % Variance
to Budget to Budget
EXPENDITURES:
CONTRACTED OPERATING EXPENDITURES
Personnel 578,104 1,641,903 35.2% 1,591,540 -3.1%
Food & Beverage 197,981 445,441 44.4% 508,395 14.1%
Operations & Maintenance 1,116,411 2,429,634 45.9% 2,225,047 -8.4%
Equipment Leases 65,205 184,550 35.3%170,993 -7.3%
1,957,701 4,701,528 41.6% 4,495,975 -4.4%
TOWN OPERATING EXPENDITURES
Personnel 353,282 875,291 40.4% 891,376 1.8%
Operations & Maintenance 132,127 211,290 62.5%211,290 0.0%
485,409 1,086,581 44.7% 1,102,666 1.5%
CAPITAL OUTLAY 35,286 132,500 26.6% 132,500 0.0%
TRANSFERS OUT 168,519 1,868,519 9.0% 168,519 -91.0%
TOTAL EXPENDITURES 2,646,915 7,789,128 34.0% 5,899,660 -24.3%
SURPLUS / (DEFICIT) 655,613 (390,863) 2,413,916
BEGINNING FUND BALANCE **2,676,793
Plus: Surplus / (Deficit)2,413,916
ENDING FUND BALANCE **5,090,709
* Year-end estimates are subject to further revision
** Beginning and ending fund balance amounts are estimates and are subject to further revision
FY 2021/2022
Actuals
thru 11/2021 Budget Year End
Estimate *
Community Center Fund
Actuals
thru 11/2021 Budget Year End
Estimate *
ATTACHMENT C-2
Budget Last Year Budget Last Year
Actual Budget Variance Last Year Variance Actual Budget Variance Last Year Variance
Rounds
3,013 2,750 263 2,921 92 Rounds ‐ Member 11,580 9,750 1,830 10,816 764
1,120 380 740 379 741 Rounds ‐ Outing 2,274 1,180 1,094 1,188 1,086
5,864 5,015 849 4,245 1,619 Rounds ‐ Public 17,380 17,765 (385)18,566 (1,186)
====================================================================================================================================================================
9,997 8,145 1,852 7,545 2,452 Total Rounds 31,234 28,695 2,539 30,570 664
Revenue
239,497 188,975 50,522 171,862 67,635 Green Fees 600,960 558,975 41,985 597,990 2,970
23,052 19,590 3,462 19,956 3,096 Cart Fees 111,583 96,185 15,398 98,285 13,298
3,110 5,000 (1,890)4,366 (1,256)Driving Range 16,060 19,000 (2,940)18,419 (2,359)
8,432 0 8,432 0 8,432 Golf Cards/Passes 8,432 0 8,432 0 8,432
22,572 23,600 (1,028)21,470 1,102 Pro Shop Sales 70,519 73,600 (3,081)71,260 (741)
34,157 28,200 5,957 15,200 18,957 Food (Food & Soft Drinks) 122,921 55,000 67,921 48,254 74,668
31,154 23,100 8,054 21,600 9,554 Beverages (Alcohol) 102,335 73,675 28,660 81,296 21,040
(28)0 (28) (218)189 Other Food & Beverage Revenue 522 0 522 339 182
3,591 1,800 1,791 1,941 1,650 Other Golf Revenues (Club Rent, Handica 8,668 4,150 4,518 6,878 1,790
1,749 1,000 749 1,927 (178)Clinic / School Revenue 8,493 2,000 6,493 5,577 2,916
93,534 82,500 11,034 79,933 13,601 Dues Income ‐ Monthly Dues 451,976 392,500 59,476 390,288 61,688
(5,201)0 (5,201) (448) (4,753)Miscellaneous Income and Discounts (5,673)0 (5,673)317 (5,989)
================================================================================= ============================================================= ================
455,618 373,765 81,853 337,590 118,028 Total Revenue 1,496,796 1,275,085 221,711 1,318,904 177,893
Cost of Sales
13,244 17,630 4,386 11,797 (1,447)COGS ‐ Pro Shop 52,311 55,130 2,819 47,062 (5,249)
10,467 7,557 (2,910)4,890 (5,577)COGS ‐ Food 33,914 12,177 (21,737)15,144 (18,770)
1,042 1,590 548 1,263 221 COGS ‐ Non‐Alcoholic Beverages 4,931 5,430 499 7,149 2,217
9,420 6,930 (2,490)6,678 (2,742)COGS ‐ Alcohol 31,662 22,103 (9,559)24,891 (6,771)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
34,172 33,707 (465)24,628 (9,544)Total Cost of Sales 122,818 94,840 (27,978)94,245 (28,573)
================================================================================= ============================================================= ================
421,446 340,058 81,388 312,962 108,484 GROSS INCOME 1,373,978 1,180,246 193,733 1,224,659 149,320
Labor
31,842 33,407 1,565 25,397 (6,445)Golf Operation Labor 122,871 133,532 10,661 108,659 (14,212)
8,913 10,513 1,599 8,654 (260)General and Administrative 45,448 61,663 16,214 49,399 3,951
57,109 64,374 7,265 52,912 (4,196)Maintenance and Landscaping 294,384 326,147 31,763 273,885 (20,498)
21,225 20,703 (522)19,223 (2,002)F&B 96,119 79,117 (17,002)76,200 (19,919)
12,398 6,671 (5,726)6,706 (5,691)Sales and Marketing 34,225 26,856 (7,369)28,104 (6,121)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
131,487 135,668 4,181 112,892 (18,594)Total Direct Labor 593,047 627,315 34,268 536,248 (56,799)
11,105 12,888 1,783 9,760 (1,346)Total Payroll Taxes 46,411 59,595 13,184 47,753 1,342
4,500 12,500 8,000 12,510 8,010 Total Medical/Health Benefits 42,524 62,500 19,976 51,883 9,359
1,860 2,080 220 314 (1,546)Total Workmans Comp 9,659 10,300 641 8,434 (1,225)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
17,465 27,468 10,004 22,583 5,119 Total Payroll Burden 98,594 132,395 33,801 108,070 9,476
================================================================================= ============================================================= ================
148,951 163,136 14,185 135,476 (13,476)Total Labor 691,641 759,709 68,068 644,318 (47,323)
Other Operational Expenses
5,852 2,920 (2,932)17,209 11,357 Golf Ops 34,552 24,575 (9,977)33,044 (1,508)
12,790 10,410 (2,380)9,878 (2,913)G&A 51,596 52,180 584 78,205 26,610
24,793 29,500 4,707 43,421 18,628 Maintenance 326,044 335,350 9,306 299,013 (27,031)
3,046 5,610 2,564 2,808 (237)F&B 13,936 27,850 13,914 9,736 (4,200)
3,303 1,050 (2,253)1,691 (1,612)Sales and Marketing 9,784 10,250 466 10,988 1,203
13,041 14,784 1,743 12,450 (591)Golf Cart Leases 65,205 73,920 8,715 62,250 (2,955)
0 0 0 0 0 Equipment Leases 0 0 0 41,928 41,928
87,280 88,800 1,520 74,667 (12,613)Utilities ‐ Maintenance 483,936 632,200 148,264 544,306 60,370
15,163 12,550 (2,613)12,699 (2,464)Utilities ‐ G&A 78,650 70,205 (8,445)69,683 (8,966)
10,200 10,200 0 10,000 (200)Management Fees 51,000 51,000 0 50,000 (1,000)
3,878 3,300 (578)9,115 5,237 Insurance ‐ P&C 18,322 16,500 (1,822)22,315 3,993
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
179,347 179,124 (223)193,938 14,592 Total Other Operational Expenses 1,133,025 1,294,030 161,005 1,221,468 88,443
================================================================================= ============================================================= ================
328,298 342,260 13,962 329,414 1,116 Total Expenses 1,824,666 2,053,739 229,073 1,865,786 41,120
================================================================================= ============================================================= ================
93,147 (2,202)95,350 (16,452)109,600 EBITDAR (450,688)(873,494)422,806 (641,128)190,440
================================================================================= ============================================================= ================
93,147 (2,202)95,350 (16,452)109,600 EBITDA (450,688)(873,494)422,806 (641,128)190,440
Interest Expense/Dep&Amt
0 0 0 0 0 Other Expense (343)0 343 12,590 12,933
0 0 0 0 0 Capital Improvements/Cap Reserve 10,560 0 (10,560)0 (10,560)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
0 0 0 0 0 Total Interest Expense 10,217 0 (10,217)12,590 2,373
================================================================================= ============================================================= ================
93,147 (2,202)95,350 (16,452)109,600 Net Income (460,905)(873,494)412,589 (653,717)192,813
El Conquistador Golf Club
For the Month Ending November 30th, 2021
November YTD
ATTACHMENT DConsolidated Year-to-Date Financial Report through November 2021FY 2021/2022FY 21/22 Capital Leases/Left in AccountsBegin Bal. Transfer OutThru Nov. 2021General Fund 32,408,542 18,672,207 18,672,207 2,685,314 11,073,957 14,084,236 132,778 27,976,285 23,104,464 Highway Fund 1,242,979 1,619,606 1,619,606 458,824 187,121 611,352 1,257,297 1,605,288 Grants and Contributions Fund - 106,357 106,357 22,822 22,822 83,535 Seizure & Forfeiture - Justice/State 266,810 15,903 15,903 60,599 60,599 222,114 Community Center Fund 2,676,793 3,302,527 3,302,527 233,724 931,386 1,446,519 35,286 2,646,915 3,332,405 Municipal Debt Service Fund 165,436 46,565 19,210,226 19,256,791 17,978,646 1,101,020 19,079,666 342,561 Oracle Road Debt Service Fund 4,194 9 9 - 4,203 Water Resource System & Dev. Impact Fee Fund 18,744,638 653,303 653,303 75,000 709,199 319,207 1,103,406 18,294,535 Townwide Roadway Dev Impact Fee Fund 1,978,878 79,933 79,933 8,663 8,663 2,050,148 Parks & Recreation Impact Fee Fund 316,645 41,918 41,918 - 358,563 Police Impact Fee Fund 168,764 21,757 21,757 117,750 117,750 72,771 Capital Fund 2,504,029 412,140 27,105,983 27,518,123 29,550 366,806 948,220 1,344,576 28,677,576 PAG/RTA Fund 1,248,618 14,453 14,453 224,422 224,422 1,038,649 Water Utility 13,666,981 8,374,702 8,374,702 2,402 1,281,813 3,090,636 442,370 4,215,022 9,032,243 13,009,440 Stormwater Utility 1,001,740 654,520 654,520 317,491 135,235 452,726 1,203,534 Benefit Self Insurance Fund 2,379,019 1,571,063 1,571,063 1,352,106 1,352,106 2,597,976 Recreation In-Lieu Fee Fund 17,045 37 37 - 17,082 Total 78,791,110 35,587,000 46,316,209 81,903,209 3,039,190 14,093,021 38,799,726 3,112,290 5,635,249 64,679,476 96,014,843 Total OutPersonnel O&M CapitalFund RevenueOther Fin Sources/TfrsTotal InDebt Service
ATTACHMENT EGeneral Fund Local Sales Tax Collections FY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 441,038 419,552 651,924 906,165 509,231 2,927,910 Utility Sales Tax 321,489 383,548 329,545 323,173 285,048 1,642,803 Retail Sales Tax 675,726 647,693 641,711 682,029 727,762 3,374,921 Bed Tax 130,217 117,012 93,538 108,884 392,162 841,813 Restaurant & Bar Sales Tax 172,386 162,947 172,178 195,482 227,724 930,718 All Other Local Sales Tax *181,767 180,252 164,385 191,016 284,083 1,001,503 TOTAL 1,922,624$ 1,911,004$ 2,053,282$ 2,406,749$ 2,426,009$ 10,719,668$ FY 2020/21CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALConstruction Sales Tax 643,435 471,705 517,101 483,032 384,176 321,621 305,338 241,562 254,568 450,343 409,924 442,859 4,925,664 Utility Sales Tax 267,771 337,260 350,040 360,019 286,715 249,286 245,891 271,681 241,698 227,632 221,458 205,402 3,264,853 Retail Sales Tax 647,068 579,089 560,008 613,570 607,315 709,153 889,306 606,222 620,243 748,368 700,138 692,038 7,972,518 Bed Tax 42,564 33,546 32,879 38,003 170,718 105,673 36,242 40,721 99,686 148,989 144,442 130,433 1,023,896 Restaurant & Bar Sales Tax 127,814 114,578 118,223 130,147 158,913 137,151 142,356 130,977 154,257 183,628 167,142 191,389 1,756,575 All Other Local Sales Tax *117,419 174,520 141,653 120,588 200,416 200,756 183,337 164,894 171,734 218,085 193,522 201,188 2,088,112 TOTAL 1,846,071$ 1,710,698$ 1,719,904$ 1,745,360$ 1,808,253$ 1,723,640$ 1,802,470$ 1,456,056$ 1,542,186$ 1,977,045$ 1,836,626$ 1,863,309$ 21,031,618$ * Note: Does not include cable franchise fees or sales tax audit revenues
ATTACHMENT FGeneral Fund State Shared RevenuesFY 2021/22CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 500,637 500,637 517,313 517,313 517,312 2,553,212 State Shared Sales Tax 291,674 534,620 464,795 538,626 428,065 2,257,780 County Auto Lieu100,364 178,439 214,084 179,539 176,572 848,998 TOTAL 892,675$ 1,213,696$ 1,196,192$ 1,235,478$ 1,121,949$ -$ -$ -$ -$ -$ -$ -$ 5,659,989$ FY 2020/21CATEGORY JULYAUGSEPOCTNOVDECJANFEBMARAPRMAYJUNETOTALState Shared Income Tax 548,361 548,361 548,361 548,361 548,361 548,360 548,361 548,361 548,361 548,361 548,361 548,361 6,580,331 State Shared Sales Tax 243,577 413,638 354,744 490,371 357,106 523,608 454,947 376,182 433,435 572,504 533,021 709,210 5,462,343 County Auto Lieu98,728 256,745 217,528 201,958 162,796 190,665 190,824 175,212 182,116 216,303 197,466 302,323 2,392,664 TOTAL 890,666$ 1,218,744$ 1,120,633$ 1,240,690$ 1,068,263$ 1,262,633$ 1,194,132$ 1,099,755$ 1,163,912$ 1,337,168$ 1,278,848$ 1,559,894$ 14,435,338$
Budget and Finance Commission 3.
Meeting Date:01/18/2022
Submitted By:David Gephart, Finance
SUBJECT:
PRESENTATION AND DISCUSSION OF TOWN ANNUAL COMPREHENSIVE FINANCIAL REPORT AND
SINGLE AUDIT FOR FISCAL YEAR ENDED JUNE 30, 2021
RECOMMENDATION:
Review and discuss as appropriate.
EXECUTIVE SUMMARY:
The Town's auditors, Henry+Horne, has completed its audits for last fiscal year ended June 30, 2021. The Town
received an unmodified (clean) opinion on its financial statements. The Annual Comprehensive Financial Report
and Single Audit Report containing those Town Financial Statements as well as relevant opinions has been
attached.
BACKGROUND OR DETAILED INFORMATION:
The audit of the Town’s Annual Comprehensive Financial Report (ACFR) for June 30, 2021 was completed on
January 6, 2022. The Town received an unmodified (clean) audit opinion. The Town was also subject to a Single
Audit for FY2021, as it easily exceeded $750,000 in federal expenditures due to the CARES act and ARPA.
The 2021 ACFR has been submitted to the Government Finance Officers Association (GFOA) Certificate of
Achievement for Excellence in Financial Reporting award program. The Town believes the current ACFR
continues to meet the Certificate of Achievement’s program requirements for another year.
An ACFR includes an introductory, financial and statistical sections. The introductory section includes a letter of
transmittal, organization chart and the previous year’s GFOA certificate. The financial section includes the Auditor’s
report, Management’s Discussion and Analysis, basic financial statements and the notes to the financial
statements. The statistical section includes, multi-year financial trends, revenue capacity, debt capacity, operating
and demographic information.
The Town auditor, Brian Hemmerle, will be present to address any questions regarding the audits.
FISCAL IMPACT:
N/A
SUGGESTED MOTION:
N/A
Attachments
FY 2021 Single Audit Report
FY 2021 ACFR
Prepared by: Finance Department of Town of Oro Valley
David Gephart, CPA
Chief Financial Officer
Wendy Gomez, MPA
Finance and Budget Administrator
Aaron Van Winkle
Senior Accountant
Nancy Arvizu, CPA
Senior Accountant
Suzy Molinar
Accounting Specialist
Town of Oro Valley, Arizona
11000 N. La Cañada Drive
Oro Valley, AZ 85737
(520)229-4700
https://www.orovalleyaz.gov
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal 1
Organizational Chart 8
List of Town Officials 9
GFOA Certificate of Achievement 10
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 12
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 17
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 31
Statement of Activities 32
Fund Financial Statements:
Balance Sheet – Governmental Funds 36
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position 39
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 40
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds to the
Statement of Activities 43
Statement of Net Position – Proprietary Funds 44
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
FINANCIAL SECTION Page
BASIC FINANCIAL STATEMENTS
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds 45
Statement of Cash Flows – Proprietary Funds 46
Notes to Financial Statements 47
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues Expenditures and Changes in Fund Balances –
Budget and Actual:
General Fund 87
Community Center Fund 88
Pension Schedules 89
Notes to Required Supplementary Information 96
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 100
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 101
Special Revenue Funds:
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 105
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 106
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
FINANCIAL SECTION Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Debt Service Fund:
Combining Balance Sheet 110
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 111
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual 112
Capital Projects Funds:
Combining Balance Sheet 116
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 117
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 118
STATISTICAL SECTION
Financial Trends:
Net Position by Component 125
Changes in Net Position 126
Fund Balances of Governmental Funds 128
Changes in Fund Balances of Governmental Funds 129
Revenue Capacity:
Principal Sales Taxpayers 130
Taxable Sales by Category 131
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
STATISTICAL SECTION Page
Direct and Overlapping Sales Tax Rates 132
Net Limited and Full Cash Assessed Value of Taxable Property 133
Historical and Projected Excise Tax Collections 134
Debt Capacity:
Ratio of Outstanding Debt by Type 135
Direct and Overlapping Governmental Activities Debt 136
Legal Debt Margin Information 137
Calculation of Legal Debt Margin 138
Pledged-Revenue Coverage 139
Historical and Projected Water System Revenues, Expenses,
Debt Service and Coverage 140
Demographic and Economic Information:
Demographic and Economic Statistics 141
Principal Employers 142
Operating Information:
Full-Time Equivalent Town Employees by Function 143
Water Utility Revenues by User Type 144
Operating Indicators by Function 145
Water Rates 146
Capital Assets Statistics by Function 147
INTRODUCTORY SECTION
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Page 1
January 6, 2022
Honorable Mayor, Members of Town Council
and Citizens of the Town of Oro Valley, Arizona:
State law mandates that cities publish a complete set of financial statements presented in
conformity with accounting principles generally accepted in the United States of America and
audited in accordance with auditing standards generally accepted in the United States of America
by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement,
we hereby issue the annual comprehensive financial report of the Town of Oro Valley, Arizona
(Town) for the fiscal year ended June 30, 2021.
This report consists of management’s representations concerning finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all
information presented in this report. To provide a reasonable basis for making these
representations, management of the Town has established a comprehensive internal control
framework designed both to protect the Town’s assets from loss, theft, or misuse and to compile
sufficient reliable information for the preparation of the Town’s financial statements in conformity
with accounting principles generally accepted in the United States of America. Because the cost
of internal controls should not outweigh their benefits, the Town’s comprehensive framework of
internal controls has been designed to provide reasonable, rather than absolute, assurance that the
financial statements will be free of material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all material
respects.
The Town’s financial statements have been audited by Henry & Horne, LLP, a certified public
accounting firm. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the Town for the fiscal year ended June 30, 2021, 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 management; and evaluating the overall financial statement
presentation. The independent auditors concluded, based upon the audit, that there was a
reasonable basis for rendering an unmodified opinion that the Town’s financial statements for the
fiscal year ended June 30, 2021, are fairly presented in conformity with accounting principles
generally accepted in the United States of America. The independent auditor’s report is presented
as the first component of the financial section of this report.
Accounting principles generally accepted in the United States of America require 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
Town of Oro Valley’s MD&A can be found immediately following the report of the independent
auditors.
It’s in our nature…
www.orovalleyaz.gov
11000 N. La Cañada Drive • Oro Valley, Arizona 85737
phone: (520) 229-4700 • fax: (520) 229-0428
Page 2
PROFILE OF THE TOWN
The Town of Oro Valley was incorporated in 1974. Located in northeastern Pima County, three
miles north of Tucson, it sits at an elevation of 2,620 feet. The Town currently occupies a land area
of more than 36 square miles and serves an estimated population of 47,070. The population of Oro
Valley has increased 58% since the 2000 population of 29,700.
Based on 2019 Census estimates, Oro Valley has a median household income of $83,341,
compared to the median household income for the state of Arizona of $62,055. Oro Valley
residents enjoy a comfortable hometown feel with a strong family orientation, excellent education
system and abundant opportunities in a safe environment.
The Town of Oro Valley operates under the Council-Manager form of government. Policymaking
and legislative authority is vested in the Town Council, which consists of a Mayor and six
Councilmembers. Councilmembers are elected to four-year staggered terms. The citizens of Oro
Valley elect the Mayor. The Council, from among its members, selects the Vice-Mayor. The Town
Council is responsible, among other things, for the adoption of local ordinances, budget adoption,
the development of citizen advisory committees, the hiring and removal of the Town Manager, the
Police Chief, Town Attorney and Town Magistrate. The Town Manager is responsible for
implementation of the policies of the Town Council. The Town Manager appoints all other
department directors except those mentioned above under Town Council responsibilities.
The Town of Oro Valley provides a full range of services including police protection; the
construction and maintenance of streets and related infrastructure; proper planning and economic
development; the provision of water and stormwater services; public transportation services;
recreational activities and cultural events.
As with all cities in the State of Arizona, the Town of Oro Valley is required to comply with Article
IX, Section 20 (1) of the Arizona Constitution, which sets limits on the Town’s legal budget
capacity. The Town currently operates under the Alternative Expenditure Limitation – Home Rule
Option. This option allows the Town Council to establish the budgetary limits locally, rather than
being restricted by the State-imposed expenditure limitation. The voters must authorize this option
every four years. It was last authorized by the citizens of Oro Valley in August of 2018.
The annual operating budget serves as the foundation for the Town’s financial planning and
control. The objective of these budgetary controls is to ensure compliance with legal provisions
embodied in the annual operating budget approved by the Town Council. The Town’s proposed
operating budget is presented to the Town Council for review throughout the budget cycle starting
in December and approved in June. The Town Council is required to hold a public hearing on the
proposed budget and to adopt the final budget by no later than the second Monday in August. Budget
amendments requiring the approval of the Town Council include the following: budget transfers
between funds; transfers to fund additional personnel or increased expenditures resulting from
personnel reclassifications; transfers that would reduce or eliminate funding for items designated
in the adopted Capital Improvement Plan; and transfers that would reduce or eliminate funding for
debt service. All other operational budget amendments that involve transfers between line items
or expenditure categories require approval by the Town Manager.
Page 3
MAJOR INITIATIVES AND ACCOMPLISHMENTS FOR THE YEAR
The Council adopted Strategic Leadership Plan for fiscal years 2019-20 through 2020-21 is the
culmination of an extensive four-month process involving Town Council, Town staff, and the Oro
Valley community. Rooted deeply in the values and priorities of the Your Voice, Our Future 10-
year General Plan, the two-year Strategic Leadership Plan provides organizational direction in
seven focus areas:
• Economic Vitality
• Culture and Recreation
• Public Safety
• Roads, Water and Town Assets
• Land Use
• Effective and Efficient Government
• Town Finances
While the Strategic Leadership Plan guides short-term decision-making, the General Plan provides
a longer term (up to 10 years) direction regarding the growth, development, and redevelopment of
the community. Oro Valley is a community defined by the highest standard of environmental
integrity, education, infrastructure, services, and public safety. It is a community of people working
together to create the Town’s future with a government that is responsive to residents and ensures
the long-term financial stability of the Town. Shown below are some of the Town’s
accomplishments during FY 2020-21.
• Issued $5.6 million in Water Utility refunding revenue bonds, resulting in net present value
savings of nearly $223,000 to the Town
• Received the Certificate of Achievement for Excellence in Financial Reporting Award,
Distinguished Budget Presentation Award with special recognition for the Town’s Capital
Improvement Program and Popular Annual Financial Reporting Award from the
Government Finance Officers Association
• Ended FY 2020-21 with a $14.8 million increase in the General Fund ending fund balance
• Received $5.3 million in federal CARES Act funding for COVID-19-related expenditures
• Received $7.7 million in federal American Rescue Plan Act funding
• Provided nearly $1 million in business assistance to local businesses through the
OVSafeSteps program to help mitigate impacts COVID-19 has had on businesses within
the Town
• Secured voter approval to move from a home rule alternative expenditure limitation to a
permanent base adjustment
• Issued 498 single family residential permits, an increase of 81% over the prior year and a
15-year high
• Successfully annexed the Westward Look Resort, resulting in an expected $750,000-
$1,200,000 in additional annual revenue to the Town
• Approved a $10 million contribution from Town excess reserves, plus $17 million in
pension obligation bond proceeds to apply toward the Town’s public safety personnel
retirement system unfunded pension liability
• Approved expanded use of the Town’s half cent sales tax collections to be used towards
debt service on the issuance of bonds for parks and recreation-related capital improvements
• Completed an 18-month long process to update the Town’s Parks and Recreation Master
Plan
Page 4
ECONOMIC CONDITIONS AND OUTLOOK
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 Town
operates.
Healthy economic growth is being observed at both the local and state levels, which has impacted
the Town’s revenue collections for FY 2020-21 and is expected to continue into FY 2021-22,
despite the ongoing impacts of COVID-19. The Town continues to provide services and programs
without a property tax to fund operations and, therefore, is dependent upon state shared revenues
and local sales tax as major sources of revenue for its operating and capital expenditures. These
sources accounted for approximately 64% of total General Fund revenue for FY 2020-21, which
is a lower percentage than past years due to significant federal stimulus monies received.
Total local sales tax collections totaled $24.1 million for FY 20-21, which represents a $1,299,390
or 5.7% increase over the last fiscal year. Given the persistence of the global COVID-19 pandemic
throughout FY 20-21, this increase was far greater than anticipated and a nice surprise. Major local
sales tax categories experiencing year-over-year increases or changes compared to amounts
collected in FY 2019-20 are as discussed below:
• Retail tax collections totaled $10.0 million for FY 20-21, up 9.8%, or nearly $891,000 over
last fiscal year.
• Remote seller collections totaled $1.7 million for the fiscal year, up 276.6%, or nearly $1.1
million over last fiscal year
• Restaurant and bar tax collections totaled $2.2 million for the fiscal year, up .7%,
or $16,000 over last fiscal year.
• Construction sales tax collections totaled $4.9 million for the fiscal year, down 11.6% or
$645,000 from last fiscal year.
The chart below is a look at the past five years’ local sales tax activity by category:
In FY 2020-21, the Town received $14.4 million for state shared revenues in the General Fund, up
14.2%, or $1.8 million over last fiscal year. The trend chart below depicts the performance of both
of these revenue categories since FY 2011-12:
$-
$2
$4
$6
$8
$10
Utility Taxes Retail Taxes Restaurant/Bar Taxes Construction TaxesMillionsSales Tax Activity by Sector -FY 16/17 through FY 20/21
FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21
Page 5
Critical to success in this area is the preparation of realistic growth assumptions that help guide
Town revenue projections. There continues to be healthy economic growth in Oro Valley, the
Tucson metropolitan region and State-wide. Arizona remains well-positioned to recover and
outpace the nation and most states in employment, income and population. With Oro Valley’s
proximity to the Tucson metro region, it is likely that the Town’s local economy will continue to
benefit with increased housing sales, retail and tourism growth, and overall personal income
growth.
April 1, 2020 marked the day in which the U.S. started its decennial census. The data collected in
this effort is a significant foundation for Oro Valley’s state-shared revenues, as well as other
economic considerations. The Town has actively participated in the regional census planning and
marketing efforts led by the Pima Association of Governments (PAG). However, because census
data has yet to be released, fiscal year 2021-22 state-shared revenue projections are conservative
with modest growth compared to the current year.
In the near term, projected residential development should be strong over the next two to three-year
period. In FY 2020-21, the Town estimated that 225 single family residential (SFR) building
permits would be issued; a total of 498 were issued by year-end. The FY 2021-22 budget assumes
275 SFRs will be issued during the year as the Town returns to a more normal historical growth
pattern.
The below chart depicts the local trends in single family residential (SFR) building permits issued
and annual permit revenues from both residential and commercial construction activity from FY
2011-12 through FY 2021-22 budget projections.
$-
$5
$10
$15
$20
$25
$30
11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21MillionsLocal Sales Tax Collections and State Shared Revenues
Sales Taxes State Shared Revenues
Page 6
Future Focus
During FY 2021-22, the Town will continue to identify and quantify both one-time revenues
derived from construction activity and recurring revenues derived from such areas as local sales
taxes and state- shared sources. The Town continues to dedicate one-time revenues to funding one-
time expenditures in the budget, specifically for capital improvement projects, while ensuring
sufficient recurring revenues exist to fund recurring expenditures. With the expectation of
sustained and moderate development activity continuing in future years, it will be important to
continue to analyze the budget in this manner to avoid future reliance on one-time revenues to fund
recurring costs.
For FY 2021-22, the Town will focus its efforts on supporting elements of the Town Council
adopted Strategic Leadership Plan all while navigating uncertainty and potential revenue
disruptions caused by COVID-19.
These strategies will be fulfilled in a number of ways as highlighted below:
• The FY 2021-22 budget includes issuance of $17 million in pension obligation bonds plus
a $10 million payment from reserves for the Town’s Public Safety Retirement System
(PSPRS) unfunded liability, while continuing to pay the same rate as the prior year on
pensionable wages.
• The FY 2021-22 budget includes $1,600,000 for the Pavement Preservation Program in the
Highway Fund, which maintains the current condition of Town streets.
• The FY 2021-22 budget includes a $25 million parks and recreation bond issuance,
demonstrating Town Council’s priority of investing in Town facilities and infrastructure
and increasing the quality of life for residents. Because the bond issuance has a dedicated
funding source via the Town’s half-cent sales tax in its Community Center Fund, there will
be no impact to the Town General Fund.
0
100
200
300
400
500
600
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
Budget SFR PermitsPermit RevenueSFR Permits and Building Activity Revenue
SFR Permits Residential Permit Revenues Commercial Permit Revenues
Page 7
The Town also continues to maintain strong investment grade ratings on its outstanding excise tax
bonds, rated “AA+” by Standard and Poor’s. This is largely achieved by the Council’s goal of
continuing to diversify the Town’s revenue base and maintaining strong fund balance reserves in
the General Fund, currently at $32.4 million, or 53% of FY 21-22 adopted expenditures of $61.3
million. This is well above the Council-adopted policy threshold of 25% of expenditures.
AWARDS AND ACKNOWLEDGMENTS
Award. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Oro
Valley for its annual comprehensive financial report for the year ended June 30, 2020. This was
the twenty-seventh consecutive year that the Town 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.
Acknowledgments. The preparation of this Annual Comprehensive Financial Report could not
have been accomplished without the efficient and dedicated services of the entire staff of the
Finance Department who assisted in and contributed to its preparation. We thank the Mayor and
members of the Town Council for their interest and support in planning and conducting the
financial affairs of the Town in a responsible and progressive manner.
Respectfully submitted,
Mary Jacobs David Gephart
Town Manager Chief Financial Officer
Page 8
Organizational Chart
Page 9
TOWN OF ORO VALLEY, ARIZONA
LIST OF TOWN OFFICIALS
ELECTED OFFICIALS
Mayor Mr. Joe Winfield
Vice-Mayor Ms. Melanie Barrett
Council Member Mr. Timothy Bohen
Council Member Mr. Harry Greene
Council Member Ms. Joyce Jones-Ivey
Council Member Mr. Josh Nicolson
Council Member Mr. Steve Solomon
TOWN MANAGEMENT
Town Manager Mary Jacobs
Assistant Town Manager Chris Cornelison
Chief Financial Officer David Gephart
Human Resources Director Judy Boros
Town Clerk Michael Standish
Magistrate James Hazel
Legal Services Director Tobin Sidles
Water Utility Director Peter Abraham
Chief of Police Kara Riley
Public Works Director/Town
Engineer
Paul Keesler
Community and Economic
Development Director
Paul Melcher
Parks and Recreation Director Kristy Diaz-Trahan
Chief Information Officer Chuck Boyer
Page 10
Page 11
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT
The Honorable Mayor and Town Council
Town of Oro Valley, Arizona
Oro Valley, Arizona
Report on the Financial Statements
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
Town of Oro Valley, Arizona, as of and for the year ended June 30, 2021, and the related notes
to the financial statements, which collectively comprise the Town’s basic financial statements as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes 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.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements 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 the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
Tempe • Scottsdale • Casa Grande www.hhcpa.comPage 12
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
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 Town of Oro Valley, Arizona,
as of June 30, 2021, and the respective changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter
As discussed in Note 16 to the financial statements, the 2020 financial statements have been
restated to correct a misstatement. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, and the pension
schedules as listed in the table of contents be presented to supplement the basic financial
statements. Such information, 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 auditing standards generally accepted in the
United States of America, 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town of Oro Valley, Arizona’s basic financial statements. The
introductory section, the combining and individual fund financial statements and schedules, and
statistical section are presented for purposes of additional analysis and are not a required part
of the basic financial statements.
Page 13
Other Information (Continued)
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to
the 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
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual fund financial statements and schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Compliance Over the Use of Highway User Revenue Fund and Other Dedicated State
Transportation Revenue Monies
In connection with our audit, nothing came to our attention that caused us to believe that the
Town of Oro Valley, Arizona failed to use highway user revenue fund monies received by the
Town pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2, and any other
dedicated state transportation revenues received by the Town of Oro Valley solely for the
authorized transportation purposes, insofar as they relate to accounting matters. However, our
audit was not directed primarily toward obtaining knowledge of such noncompliance.
Accordingly, had we performed additional procedures, other matters may have come to our
attention regarding the Town of Oro Valley’s noncompliance with the use of highway user
revenue fund monies and other dedicated state transportation revenues, insofar as they relate
to accounting matters.
The communication related to compliance over the use of highway user revenue fund and other
dedicated state transportation revenue monies in the preceding paragraph is intended solely for
the information and use of the members of the Arizona State Legislature, the Board of
Supervisors, management, and other responsible parties with the Town and is not intended to
be and should not be used by anyone other than these specified parties.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 6, 2022 on our consideration of the Town’s internal control over financial reporting and
our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is 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 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 Town of Oro Valley, Arizona’s, internal control over financial
reporting and compliance.
Tempe, Arizona
January 6, 2022
Page 14
Page 15
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
Page 16
(This page intentionally left blank)
Page 17
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
As management of the Town of Oro Valley, Arizona (Town), we offer readers of the Town’s
financial statements this narrative overview and analysis of the financial activities of the Town for
the fiscal year ended June 30, 2021. The management’s discussion and analysis is presented as
required supplementary information to supplement the basic financial statements. 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 in the introductory section of this
report.
FINANCIAL HIGHLIGHTS
The financial statements which follow the Management’s Discussion and Analysis, provide key
financial highlights for 2020-21 as follows.
• The Town’s total net position of governmental activities increased $25.5 million to $190.1
million and business-type activities increased $9.8 million to $111.8 million, representing 63
percent and 37 percent respectively, of the total net position of $301.9 million.
• General revenues from governmental activities accounted for $39.4 million in revenue, or 46
percent of all current fiscal year governmental activities revenues. Program specific revenues
in the form of charges for services and grants and contributions accounted for $46.4 million or
54 percent of total current fiscal year governmental activities revenues. The Town had $27.3
million of program revenues and $13,314 in general revenues related to business-type activities.
• The Town had $60.2 million in expenses related to governmental activities, an increase of 4.0
percent from the prior fiscal year. The Town had $17.5 million in expenses related to business-
type activities, an increase of 0.8 percent from the prior fiscal year.
• Among major funds, the General Fund had $53.6 million in revenues, which primarily
consisted of sales taxes and intergovernmental revenues. The total expenditures of the General
Fund were $39.5 million. The General Fund’s fund balance increased from $20.9 million to
$32.4 million.
• The Community Center Fund had $7.6 million in revenues, which consisted primarily of
charges for services and sales taxes. The total expenditures of the Community Center Fund
were $5.6 million.
• The General Government CIP Fund had $1.0 million in revenues, which consisted primarily
of charges for services and other revenues. The total expenditures of the General Government
CIP Fund were $2.7 million.
• The PAG/RTA Fund had $2.2 million in revenues, which consisted primarily of
intergovernmental revenues. The total expenditures of the PAG/RTA Fund were $1.3 million.
• The Water Fund operating revenues of $18.2 million exceeded operating expenses of $15.2
million.
Page 18
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-
sector business. The accrual basis of accounting is used for the government-wide financial
statements.
The statement of net position presents information on all Town assets liabilities, and deferred
inflows/outflows of resources with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the
Town is improving or deteriorating.
The statement of activities presents information showing how the Town’s net position changed
during the most 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 only result in cash
flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).
In the government-wide financial statements the Town’s activities are presented in the following
categories:
• Governmental activities – Most of the Town’s basic services are included here, such as
general government, public safety, highways and streets, transit, and culture and recreation.
Sales taxes, intergovernmental, and charges for services finance most of these activities.
• Business-type activities – The services provided by the Town included here are water and
stormwater utilities. The services are primarily financed through user fees and charges.
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 Town
uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the Town can be divided into two categories: governmental funds
and proprietary funds.
Governmental 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 statements, governmental fund financial
statements use the modified accrual basis of accounting and focus on near-term inflows 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 the Town’s near-term financing
requirements.
Page 19
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
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 Town’s
near-term financing decision. 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.
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 the
General, Community Center, General Government CIP, and PAG/RTA Funds, all of which are
considered to be major funds. Data from the other 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 and schedules.
Proprietary funds. The Town maintains two types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide
financial statements. The Town uses enterprise funds to account for its Oro Valley Water Utility
and Stormwater Drainage Utility. The Town uses an internal service fund to finance its self-
insured employee health benefits. Because these services predominately benefit governmental
rather than business-type functions, the internal service fund has been included within
governmental activities in the government-wide financial statements.
Notes to the 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 immediately following the basic financial
statements.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town’s budget
process, and pension plans. The Town adopts an annual expenditure budget for all governmental
funds. A schedule of revenues, expenditures and changes in fund balances – budget and actual has
been provided for the General Fund and the major Special Revenue Fund as required
supplementary information. Schedules for the pension plans have been provided as required
supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. In the
case of the Town, assets and deferred outflows exceeded liabilities and deferred inflows by $301.9
million as of the current fiscal year end.
The largest portion of the Town’s net position reflects its investment in capital assets (e.g., land,
water rights, buildings and improvements, improvements other than buildings, infrastructure,
vehicles, machinery and equipment and construction in progress), less any related outstanding debt
used to acquire those assets.
Page 20
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
The Town uses these capital assets to provide services to its citizens; consequently, these assets are
not available for future spending. Although the Town’s investment in its capital assets is reported
net of related outstanding debt, it should be noted that the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities. In addition, a portion of the Town’s net position represents resources that are subject to
external restrictions on how they may be used. The remaining balance is unrestricted and may be
used to meet the Town's ongoing obligations to its citizens and creditors.
The following table presents a summary of the Town’s net position for the fiscal years ended June
30, 2021 and June 30, 2020.
2021 2020 2021 2020 2021 Total 2020 Total
Current and other assets 55,130,944$ 39,867,203$ 36,037,009$ 34,960,112$ 91,167,953$ 74,827,315$
Capital assets, net 192,584,832 161,980,002 110,774,759 105,784,773 303,359,591 267,764,775
Total assets 247,715,776 201,847,205 146,811,768 140,744,885 394,527,544 342,592,090
Deferred outflows of resources 11,141,057 8,108,517 1,416,116 1,398,832 12,557,173 9,507,349
Current and other liabilities 12,654,541 6,817,895 8,391,565 3,392,461 21,046,106 10,210,356
Long-term liabilities 55,338,843 54,168,500 27,931,751 36,458,387 83,270,594 90,626,887
Total liabilites 67,993,384 60,986,395 36,323,316 39,850,848 104,316,700 100,837,243
Deferred inflows of resources 780,614 1,520,632 133,487 282,166 914,101 1,802,798
Net position
Net investment in capital assets 184,355,212 152,604,355 84,049,866 76,933,346 268,405,078 229,537,701
Restricted 5,392,323 6,601,283 - - 5,392,323 6,601,283
Unrestricted 335,300 (11,756,943) 27,721,215 25,077,357 28,056,515 13,320,414
Total net position 190,082,835$ 147,448,695$ 111,771,081$ 102,010,703$ 301,853,916$ 249,459,398$
Governmental Activities Business-type Activities
At the end of the current fiscal year the Town reported positive balances in all categories of net position.
The Town’s financial position is the product of several financial transactions including the net results
of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and
the depreciation of capital assets. The following are significant current year transactions that have
had an impact on the Statement of Net position.
• The addition of $15.2 million in current assets for governmental activities, of which $7.7
million is attributable to American Rescue Plan Act funding received in June 2021.
• The addition of $12.8 million and $3.7 million for governmental activities and
business-type activities, respectively, in accumulated depreciation due to depreciation
expense.
• The addition of $43.4 million and $8.7 million for governmental activities and business-
type activities, respectively, in capital assets related to buildings and improvements,
infrastructure, and water systems.
Page 21
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
Changes in net position. The Town’s total revenues for the current fiscal year were $113.0 million.
The total cost of all programs and services was $77.7 million. The following table presents a
summary of the changes in net position for the fiscal years ended June 30, 2021 and June 30, 2020.
2021 2020 2021 2020 2021 Total 2020 Total
Revenues
Program revenues
Charges for services 12,621,972$ 11,540,201$ 19,671,438$ 21,662,374$ 32,293,410$ 33,202,575$
Operating grants and contributions 8,171,190 3,621,830 - - 8,171,190 3,621,830
Capital grants and contributions 25,566,365 16,338,347 7,603,672 169,194 33,170,037 16,507,541
General revenues
Sales taxes 24,056,793 22,757,403 - - 24,056,793 22,757,403
Franchise taxes 722,700 662,048 - - 722,700 662,048
Unrestricted state shared revenues 14,435,336 12,638,148 - - 14,435,336 12,638,148
Miscellaneous - - 13,255 - 13,255 -
Investment earnings
Interest 558,400 863,822 400,225 681,901 958,625 1,545,723
Net increase in fair value (421,611) 234,445 (400,166) 229,019 (821,777) 463,464
Total revenues 85,711,145 68,656,244 27,288,424 22,742,488 112,999,569 91,398,732
Expenses
General government 19,633,975 17,210,855 - - 19,633,975 17,210,855
Public safety 18,291,873 19,416,010 - - 18,291,873 19,416,010
Highways and streets 11,629,477 10,201,832 - - 11,629,477 10,201,832
Transit 939,341 1,106,750 - - 939,341 1,106,750
Culture and recreation 9,396,975 9,551,170 - - 9,396,975 9,551,170
Interest on long-term debt 290,251 362,651 - - 290,251 362,651
Water - - 16,157,523 15,953,546 16,157,523 15,953,546
Stormwater - - 1,368,001 1,444,865 1,368,001 1,444,865
Total expenses 60,181,892 57,849,268 17,525,524 17,398,411 77,707,416 75,247,679
Excess/(Deficiency) before transfers 25,529,253 10,806,976 9,762,900 5,344,077 35,292,153 16,151,053
Transfers 2,522 2,472 (2,522) (2,472) - -
Change in net position 25,531,775 10,809,448 9,760,378 5,341,605 35,292,153 16,151,053
Beginning net position, as restated 164,551,060 136,639,247 102,010,703 96,669,098 266,561,763 233,308,345
Ending net position 190,082,835$ 147,448,695$ 111,771,081$ 102,010,703$ 301,853,916$ 249,459,398$
Governmental Activities Business-type Activities
Page 22
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
The following are significant current year transactions that have had an impact on the change in net
position.
• Total expenses increased $2.5 million, or 3.3 percent, primarily due to an increase in general
government costs related to COVID-19.
• Total revenues increased $21.6 million, or 23.6 percent, primarily due to a property donation
and American Rescue Plan Act funding.
Governmental and Business-type activities. The following table presents the cost of the Town’s
major functional activities. The table also shows each function’s net cost (total cost less charges for
services generated by the activities and intergovernmental aid provided for specific programs). The
net cost shows the financial burden that was placed on the Town’s taxpayers by each of these
functions.
Total Net (Expense)Total Net (Expense)
Expenses Revenue Expenses Revenue
General government 19,633,975$ 8,873,260$ 17,210,855$ (11,229,594)$
Public safety 18,291,873 (12,197,235) 19,416,010 (18,613,906)
Highways and streets 11,629,477 (5,116,531) 10,201,832 8,854,740
Transit 939,341 (938,878) 1,106,750 153,792
Culture and recreation 9,396,975 (4,152,731) 9,551,170 (5,151,271)
Interest on long-term debt 290,251 (290,251) 362,651 (362,651)
Total 60,181,892$ (13,822,365)$ 57,849,268$ (26,348,890)$
Water 16,157,523$ 9,493,072$ 15,953,546$ 4,434,406$
Stormwater drainage 1,368,001 256,514 1,444,865 (1,249)
Total 17,525,524$ 9,749,586$ 17,398,411$ 4,433,157$
Business-type Activities
Governmental Activities
June 30, 2021 June 30, 2020
• The cost of all governmental activities this year was $60.2 million. The increase of $2.3
million from the prior year was due primarily to an increase in general government expenses
due to COVID-19.
• The cost of all business-type activities this year was $17.5 million. The increase of
$127,113 from the prior year was primarily due to an increase in operating costs in the
water utility.
• Federal and State government grants, developer contributions, and charges for services
subsidized certain governmental programs and business-type programs with revenues of
$73.6 million.
• Net cost of governmental activities of $13.8 million was financed by general revenues,
which are made up of primarily sales taxes and state shared revenues of $38.5 million.
Page 23
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements.
Governmental funds. The focus of the Town’s governmental funds is to provide information on
near- term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as
a useful measure of the Town’s net resources available for spending at the end of the fiscal year.
The financial performance of the Town as a whole is reflected in its governmental funds. As the
Town completed the year, its governmental funds reported a combined fund balance of $43.0
million, an increase of $13.3 million. This was primarily due to an increase in intergovernmental
revenues from federal stimulus.
The General Fund comprises 75.4 percent of the total governmental fund balance. Approximately
$22.3 million, or 68.9 percent of the General’s Fund ending fund balance is unassigned. The
General Fund is the principal operating fund of the Town. The increase in fund balance of $11.5
million to $32.4 million as of fiscal year end was a result of increased intergovernmental revenues.
As a whole, General Fund revenues increased approximately $12.5 million. General Fund
expenditures increased $1.6 million, primarily due to planned capital outlay for needed building
renovations, as well as a $1.0 million business assistance program to support businesses impacted
from the COVID-19 pandemic.
The Community Center Fund’s ending fund balance increased from $862,818 to $2,676,793, due
to increased sales tax collections and contracted operating revenues, as well as a delay in budgeted
capital spending and a decrease in operational costs.
The General Government CIP Fund’s ending fund balance increased from $2.4 million to $2.5
million due to delays in budgeted capital projects.
The PAG/RTA Fund’s ending fund balance increased from $382,519 to $1,248,618 due to timing
of street projects and intergovernmental reimbursement agreements utilized to complete the
projects.
Proprietary funds. Net position of the Enterprise Funds at the end of the year amounted to $111.8
million. This increased by $9.8 million during the fiscal year to the extent that revenues exceeded
expenses in the fund and from capital contributions of water systems.
Net position of the Internal Service Fund at the end of the year amounted to $2.4 million. This
increased by $290,196 during the fiscal year to the extent that self-insurance premiums exceeded
claim payments and administrative expenses.
Page 24
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
BUDGETARY HIGHLIGHTS
There were no amendments to the Town of Oro Valley’s fiscal year 2020-21 operating and capital
budget. A schedule showing the original and final budget amounts compared to the Town’s actual
financial activity for the General Fund is provided in this report as required supplementary
information. The significant variances are summarized as follows:
• The favorable variance of $5.2 million in intergovernmental revenue was primarily the
result of $4.4 million in American Rescue Plan Act funding being recognized as revenue.
• The favorable variance of $3.6 million in sales taxes was a result of conservative budget
estimates as well as better-than-expected collections.
• The favorable expenditure variance of $8.6 million was primarily the result of unutilized
budgeted contingency in the fund of $6.1 million.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. At year end, the Town had invested $303.4 million in capital assets (net of
accumulated depreciation), including buildings, facilities, vehicles, computers, equipment, and
infrastructure assets. This amount represents a net increase of $35.6 million from last year. This
was primarily due to roadway and land donations, as well as expansion of the Town’s water system.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2021 and
June 30, 2020.
Increase/
2021 2020 (Decrease)
Land and improvements 33,972,221$ 19,518,801$ 14,453,420$
Infrastructure 214,156,442 191,788,060 22,368,382
Buildings 44,218,568 41,732,499 2,486,069
Machinery, equipment, and vehicles 18,616,508 17,628,436 988,072
Construction in progress 26,256,480 23,119,854 3,136,626
Accumulated depreciation (144,635,387) (131,807,648) (12,827,739)
Net capital assets 192,584,832$ 161,980,002$ 30,604,830$
Increase/
2021 2020 (Decrease)
Land and improvements 2,410,660$ 2,410,660$ -$
Water rights 8,534,490 8,534,490 -
Water system 143,246,169 139,052,402 4,193,767
Stormwater system 3,650,716 3,478,844 171,872
Machinery, equipment, and vehicles 6,017,146 5,887,424 129,722
Construction in progress 7,599,940 3,388,124 4,211,816
Accumulated depreciation (60,684,362) (56,967,171) (3,717,191)
Net capital assets 110,774,759$ 105,784,773$ 4,989,986$
Business-type
Activities
Governmental
Activities
Page 25
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
The estimated cost to complete current construction projects is $25.1 million. Additional
information on the Town’s capital assets can be found in Note 6.
Debt Administration. At year end, the Town had $35.5 million in long-term debt outstanding
with $5.3 million due within one year. Long-term debt decreased by $5.1 million due to $10.7
million in maturities and redemptions, offset with $5.6 million issued during the fiscal year. The
following table presents a summary of the Town’s outstanding long- term debt for the fiscal years
ended June 30, 2021 and June 30, 2020.
Increase/
2021 2020 (Decrease)
Revenue bonds 8,229,620$ 9,171,710$ (942,090)$
Special assessment bonds - 170,000 (170,000)
Capital leases - 33,937 (33,937)
8,229,620$ 9,375,647$ (1,146,027)$
Increase/
2021 2020 (Decrease)
Revenue bonds 24,528,378$ 24,736,288$ (207,910)$
Loans payable 2,713,108 6,448,759 (3,735,651)
27,241,486$ 31,185,047$ (3,943,561)$
Business-type
Activities
Governmental
Activities
State statutes currently limit the amount of general obligation debt a Town may issue to 20 percent
of its net full cash assessed valuation for water, sewer, lights, open space preserves, parks,
playgrounds and recreational facilities. The current debt limitation for the Town is $162.8 million.
State statutes also currently limit the amount of general obligation debt a Town may issue to six
percent of its net full cash assessed valuation for all other purposes. The current debt limitation
for the Town is $48.8 million. The Town does not have any general obligation debt.
The Town has a bond rating of “AA+” from Standard & Poor’s and “AA” from Fitch Ratings on
outstanding revenue bonds.
Additional information on the Town’s long-term debt can be found in Notes 7 through 10.
Page 26
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2021
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
Many factors were considered by the Town’s administration during the process of developing the
fiscal year 2021-22 budget. Among them:
• The unemployment rate for the Town of Oro Valley is currently 5.9 percent. Pima
County’s and the State of Arizona’s unemployment rates are 6.5 percent and 5.7 percent,
respectively.
• The Town’s net full cash assessed valuation for the current year is $813,753,982.
• Single family residential (SFR) building permits issued in this fiscal year totaled 498, as
compared to 275 SFR building permits issued last fiscal year. Projections for SFR building
permits are 275 for fiscal year 2021-22.
The adopted combined operating and capital expenditure budget for fiscal year 2021-22 totals
$162.0 million, an increase of $56.5 million, or 53 percent over last year’s budget of $105.4
million. This increase is primarily due a $28 million contribution towards the Town’s unfunded
liability in the Arizona Public Safety Pension Retirement System, comprised of a $10 million
contribution from excess General Fund reserves and an $18 million issuance of pension obligation
bonds, as well as a $25 million bond issuance for parks and recreation capital projects. The budget
for fiscal year 2021-22 continues to place emphasis on achieving the goals identified in the Town’s
adopted Strategic Plan, which was recently updated in fiscal year 2019-20 and includes the
following focus areas: economic vitality, culture and recreation, public safety, roads water and
Town assets, land use, effective and efficient government, and Town finances.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and
creditors with a general overview of the Town’s finances and to demonstrate the Town’s
accountability for the resources it receives. If you have questions about this report or need
additional information, contact the Finance Department, Town of Oro Valley, Arizona, 11000
North La Cañada Drive, Oro Valley, Arizona 85737.
Page 27
BASIC FINANCIAL STATEMENTS
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Page 29
GOVERNMENT-WIDE FINANCIAL STATEMENTS
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Page 31
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2021
ASSETS
Current assets:
Cash and investments $50,264,967 $33,413,360 $83,678,327
Taxes receivable 2,972,362 - 2,972,362
Accounts receivable 533,791 2,537,124 3,070,915
Interest receivable 60,151 66,483 126,634
Intergovernmental receivable 937,063 - 937,063
Inventories 56,820 - 56,820
Prepaid items 305,790 20,042 325,832
Total current assets 55,130,944 36,037,009 91,167,953
Noncurrent assets:
Capital assets, non-depreciable 60,228,701 18,545,090 78,773,791
Capital assets, depreciable (net)132,356,131 92,229,669 224,585,800
Total noncurrent assets 192,584,832 110,774,759 303,359,591
Total Assets 247,715,776 146,811,768 394,527,544
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 568,228 568,228
Pension plan items 11,141,057 847,888 11,988,945
Total Deferred Outflows of Resources 11,141,057 1,416,116 12,557,173
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 2,498,909 1,229,028 3,727,937
Accrued wages and benefits 1,118,594 162,936 1,281,530
Intergovernmental payable 170,659 1,307,336 1,477,995
Interest payable - 356,094 356,094
Unearned revenue 4,088,230 - 4,088,230
Claims payable 328,352 - 328,352
Customer deposits payable 354,900 702,726 1,057,626
Other accrued liabilities 1,193,550 - 1,193,550
Compensated absences 1,929,761 273,136 2,202,897
Loans payable - 308,895 308,895
Bonds payable 971,586 4,051,414 5,023,000
Total current liabilities 12,654,541 8,391,565 21,046,106
Noncurrent liabilities:
Noncurrent portion of long-term obligations 55,338,843 27,931,751 83,270,594
Total noncurrent liabilities 55,338,843 27,931,751 83,270,594
Total Liabilities 67,993,384 36,323,316 104,316,700
DEFERRED INFLOWS OF RESOURCES
Pension plan items 780,614 133,487 914,101
NET POSITION
Net investment in capital assets 184,355,212 84,049,866 268,405,078
Restricted for:
Capital projects 2,464,287 - 2,464,287
Debt service 169,630 - 169,630
Public safety 266,810 - 266,810
Highway and streets 2,491,596 - 2,491,596
Unrestricted 335,300 27,721,215 28,056,515
Total Net Position $190,082,835 $111,771,081 $301,853,916
Business-type
Activities
Governmental
Activities Total
The notes to the basic financial statements are an integral part of this statement.
Page 32
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Functions/Programs
Primary Government
Governmental activities:
General government $19,633,975 $6,305,121 $257,927 $21,944,187
Public safety 18,291,873 340,430 5,731,493 22,715
Highway and streets 11,629,477 739,936 2,173,547 3,599,463
Transit 939,341 463 - -
Culture and recreation 9,396,975 5,236,021 8,223 -
Interest on long-term debt 290,251 - - -
Total governmental activities 60,181,892 12,621,972 8,171,190 25,566,365
Business-type activities:
Water 16,157,523 18,199,075 - 7,451,520
Stormwater 1,368,001 1,472,363 - 152,152
Total business-type activities 17,525,524 19,671,438 - 7,603,672
Total Primary Government $77,707,416 $32,293,410 $8,171,190 $33,170,037
General revenues:
Taxes:
Sales taxes
Franchise taxes
Unrestricted state shared revenues
Investment income:
Interest
Net decrease in fair value of investments
Miscellaneous
Transfers
Total general revenues and transfers
Changes in net position
Net position, beginning of year, as restated
Net position, end of year
Expenses Services
Charges for
Operating
Grants and
Contributions
Program Revenues
Contributions
Grants and
Capital
The notes to the basic financial statements are an integral part of this statement.
Page 33
$8,873,260 $- $8,873,260
(12,197,235) - (12,197,235)
(5,116,531) - (5,116,531)
(938,878) - (938,878)
(4,152,731) - (4,152,731)
(290,251) - (290,251)
(13,822,365) - (13,822,365)
- 9,493,072 9,493,072
- 256,514 256,514
- 9,749,586 9,749,586
$(13,822,365) $9,749,586 $(4,072,779)
24,056,793 - 24,056,793
722,700 - 722,700
14,435,336 - 14,435,336
558,400 400,225 958,625
(421,611) (400,166) (821,777)
- 13,255 13,255
2,522 (2,522) -
39,354,140 10,792 39,364,932
25,531,775 9,760,378 35,292,153
164,551,060 102,010,703 266,561,763
$190,082,835 $111,771,081 $301,853,916
Totals
Net (Expense)
Revenue and
Changes in
Net Position
Net (Expense) Revenue and
Changes in Net Position
Activities
Governmental
Activities
Business-type
Page 34
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Page 35
FUND FINANCIAL STATEMENTS
Page 36
TOWN OF ORO VALLEY, ARIZONA
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2021
Community
ASSETS
Cash and investments $35,526,403 $3,477,261 $3,146,962
Taxes receivable 2,972,362 - -
Accounts receivable 387,366 57,321 72,516
Interest receivable 28,416 1,078 12,730
Intergovernmental receivable 599,453 - -
Inventories - 56,820 -
Prepaid items 204,193 34,921 65,756
Total Assets $39,718,193 $3,627,401 $3,297,964
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $1,218,917 $163,253 $793,936
Accrued payroll and related benefits 1,118,594 - -
Intergovernmental payable 170,659 - -
Unearned revenue 3,615,337 426,197 -
Customer deposits payable 354,900 - -
Other accrued liabilities 831,244 361,158 -
Total Liabilities 7,309,651 950,608 793,936
Fund balances:
Nonspendable 204,193 91,741 65,756
Restricted - - -
Committed 9,883,194 2,585,052 -
Assigned - - 2,438,272
Unassigned 22,321,155 - -
Total Fund Balances 32,408,542 2,676,793 2,504,028
Total Liabilities and Fund Balances $39,718,193 $3,627,401 $3,297,964
General
General Center Government CIP
The notes to the basic financial statements are an integral part of this statement.
Page 37
$1,249,766 $3,995,971 $47,396,363
- - 2,972,362
- 16,588 533,791
- 16,295 58,519
- 337,610 937,063
- - 56,820
- - 304,870
$1,249,766 $4,366,464 $52,259,788
$- $159,018 $2,335,124
- - 1,118,594
- - 170,659
- 46,696 4,088,230
- - 354,900
1,148 - 1,193,550
1,148 205,714 9,261,057
- - 361,690
1,248,618 4,143,705 5,392,323
- 17,045 12,485,291
- - 2,438,272
- - 22,321,155
1,248,618 4,160,750 42,998,731
$1,249,766 $4,366,464 $52,259,788
Total
Funds
Non-Major
Governmental Governmental
PAG/RTA Funds
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Page 39
TOWN OF ORO VALLEY, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental Fund Balances $42,998,731
Capital assets are not financial resources in governmental funds, but are
reported in the Statement of Net Position at their net depreciable value.
Governmental capital assets 337,220,219
Less accumulated depreciation (144,635,387) 192,584,832
Deferred outflows and inflows of resources related to pensions are
applicable to future periods and, therefore, are not reported in the funds.
Deferred outflows of resources related to pensions 11,141,057
Deferred inflows of resources related to pensions (780,614) 10,360,443
The Internal Service Fund is used by management to charge
the cost of insurance to the individual funds. The assets and
liabilities of the Internal Service Fund are included in the
Statement of Net Position.2,379,019
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported in the funds.
Compensated absences payable (2,403,311)
Revenue bonds payable (8,229,620)
Net pension liability (47,607,259) (58,240,190)
Net Position of Governmental Activities $190,082,835
The notes to the basic financial statements are an integral part of this statement.
Page 40
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
REVENUES
Sales taxes $21,109,373 $2,947,420 $-
Franchise taxes 722,700 - -
Development impact fees - - -
Special assessments - - -
Intergovernmental 25,937,729 - 119,868
Licenses, fees and permits 3,325,825 - -
Fines, forfeitures and penalties 135,547 - -
Charges for services 1,991,885 4,508,524 633,012
Investment income:
Interest 396,414 18,765 36,174
Net increase/(decrease) in fair value of investments (273,373) (14,312) (34,730)
Other 282,189 127,060 293,507
Total Revenues 53,628,289 7,587,457 1,047,831
EXPENDITURES
Current:
General government 17,610,897 - -
Public safety 16,383,136 - -
Highway and streets - - -
Transit 930,687 - -
Culture and recreation 2,980,570 5,383,094 -
Capital outlay 1,627,486 193,529 2,725,682
Debt service:
Principal retirement - 33,937 -
Interest and fiscal charges - 4,620 -
Total Expenditures 39,532,776 5,615,180 2,725,682
REVENUES OVER/(UNDER) EXPENDITURES 14,095,513 1,972,277 (1,677,851)
OTHER FINANCING SOURCES/(USES)
Transfers in/(out), net (2,586,519) (158,302) 1,771,143
Total Other Financing Sources (Uses)(2,586,519) (158,302) 1,771,143
NET CHANGE IN FUND BALANCES 11,508,994 1,813,975 93,292
FUND BALANCES, Beginning of year 20,899,548 862,818 2,410,736
FUND BALANCES, End of year $32,408,542 $2,676,793 $2,504,028
CenterGeneral Government CIP
Community General
The notes to the basic financial statements are an integral part of this statement.
Page 41
$- $- $24,056,793
- - 722,700
- 1,256,426 1,256,426
- 172,640 172,640
1,947,977 3,774,933 31,780,507
- 37,108 3,362,933
- 97,784 233,331
28,125 713 7,162,259
9,245 63,385 523,983
3,311 (72,506) (391,610)
216,069 105,465 1,024,290
2,204,727 5,435,948 69,904,252
- - 17,610,897
- 55,063 16,438,199
- 1,795,203 1,795,203
- - 930,687
- - 8,363,664
1,338,628 4,108,388 9,993,713
- 1,112,090 1,146,027
- 285,631 290,251
1,338,628 7,356,375 56,568,641
866,099 (1,920,427) 13,335,611
- 976,200 2,522
- 976,200 2,522
866,099 (944,227) 13,338,133
382,519 5,104,977 29,660,598
$1,248,618 $4,160,750 $42,998,731
PAG/RTA
Non-Major
Funds
Governmental
Funds
Governmental
Total
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Page 43
TOWN OF ORO VALLEY, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Net change in fund balances - total governmental funds $13,338,133
Amounts reported for governmental activities in the Statement of Activities are different
because:
Some receivables are not available to pay for current period expenditures
and, therefore, are reported as unavailable revenues in the funds.(1,299,887)
Governmental funds report the portion of capital outlay for capitalized assets as expenditures.
However, in the Statement of Activities, the costs of those assets are allocated over their
estimated useful lives as depreciation expense.
Expenditures for capital assets $9,558,710
Contributed capital 14,453,420
Less current year depreciation (10,487,561) 13,524,569
Governmental funds report pension contributions as expenditures. However, they are
reported as deferred outflows of resources in the Statement of Net Position. The
change in the net pension liability, adjusted for deferred pension items, is
reported as pension expense in the Statement of Activities.(1,431,681)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Loss on disposal of assets $(22,104)
Compensated absences (13,478) (35,582)
The Internal Service Fund is used by management to charge the cost of insurance to
the individual funds. The changes in net position of the Internal Service Fund
is reported with governmental activities in the Statement of Activities.290,196
Repayments of long-term debt principal are expenditures in the governmental funds,
but the repayment reduces long-term liabilities in the Statement of Net Position.
Capital lease principal retirement $33,937
Revenue bond principal retirement 942,090
Special assessment bond principal retirement 170,000 1,146,027
Change in net position of governmental activities.$25,531,775
The notes to the basic financial statements are an integral part of this statement.
Page 44
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
JUNE 30, 2021
ASSETS
Current assets:
Cash and investments $32,411,620 $1,001,740 $33,413,360 $2,868,604
Accounts receivable 2,339,964 197,160 2,537,124 -
Interest receivable 63,718 2,765 66,483 1,632
Prepaid items 19,394 648 20,042 920
Total current assets 34,834,696 1,202,313 36,037,009 2,871,156
Noncurrent assets:
Capital assets, non-depreciable 18,545,090 - 18,545,090 -
Capital assets, depreciable (net)88,851,415 3,378,254 92,229,669 -
Total noncurrent assets 107,396,505 3,378,254 110,774,759 -
Total Assets 142,231,201 4,580,567 146,811,768 2,871,156
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 568,228 - 568,228 -
Pension plan items 677,927 169,961 847,888 -
Total Deferred Outflows of Resources 1,246,155 169,961 1,416,116 -
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 1,022,746 206,282 1,229,028 163,785
Accrued wages and benefits 131,378 31,558 162,936 -
Intergovernmental payable 1,307,336 - 1,307,336 -
Interest payable 356,094 - 356,094 -
Claims payable - - - 328,352
Customer deposits payable 702,726 - 702,726 -
Compensated absences 255,421 17,715 273,136 -
Loans payable 308,895 - 308,895 -
Bonds payable 4,051,414 - 4,051,414 -
Total current liabilities 8,136,010 255,555 8,391,565 492,137
Noncurrent liabilities:
Noncurrent portion of long-term obligations 27,386,374 545,377 27,931,751 -
Total noncurrent liabilities 27,386,374 545,377 27,931,751 -
Total Liabilities 35,522,384 800,932 36,323,316 492,137
DEFERRED INFLOWS OF RESOURCES
Pension plan items 106,729 26,758 133,487 -
NET POSITION
Net investment in capital assets 80,671,612 3,378,254 84,049,866 -
Unrestricted 27,176,631 544,584 27,721,215 2,379,019
Total Net Position $107,848,243 $3,922,838 $111,771,081 $2,379,019
Water Enterprise Fund Total Service Fund
Internal
Activities:
GovernmentalEnterprise Funds
Non-Major
The notes to the basic financial statements are an integral part of this statement.
Page 45
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
OPERATING REVENUES:
Charges for services $18,159,301 $1,472,330 $19,631,631 $-
Intergovernmental - 152,152 152,152 -
Other 39,774 33 39,807 -
Self insurance premiums - - - 3,846,791
Total Operating Revenues 18,199,075 1,624,515 19,823,590 3,846,791
OPERATING EXPENSES:
Costs of sales and services 11,478,947 1,095,905 12,574,852 -
Contractual services 330,365 99,836 430,201 182,286
Depreciation and amortization 3,393,314 172,260 3,565,574 -
Claims payments - - - 2,716,901
Administrative - - - 661,824
Total Operating Expenses 15,202,626 1,368,001 16,570,627 3,561,011
OPERATING INCOME/(LOSS)2,996,449 256,514 3,252,963 285,780
NONOPERATING REVENUES (EXPENSES):
Development impact fees 4,100,556 - 4,100,556 -
Sales of assets 4,555 8,700 13,255 -
Investment income:
Interest 390,386 9,839 400,225 34,417
Net decrease in fair value of investments (391,597) (8,569) (400,166) (30,001)
Interest expense (954,897) - (954,897) -
Total Nonoperating Revenues (Expenses)3,149,003 9,970 3,158,973 4,416
INCOME/(LOSS) BEFORE TRANSFERS 6,145,452 266,484 6,411,936 290,196
CAPITAL CONTRIBUTIONS 3,350,964 - 3,350,964 -
TRANSFERS OUT (2,522) - (2,522) -
NET CHANGE IN NET POSITION 9,493,894 266,484 9,760,378 290,196
NET POSITION, Beginning of year 98,354,349 3,656,354 102,010,703 2,088,823
NET POSITION, End of year $107,848,243 $3,922,838 $111,771,081 $2,379,019
Enterprise Funds Governmental
Water Enterprise Fund Total Service Fund
Activities:
Non-Major Internal
The notes to the basic financial statements are an integral part of this statement.
Page 46
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 20 21
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from customers $18,209,855 $1,620,086 $19,829,941 $-
Cash received from premiums - - - 3,846,791
Cash payments to suppliers for goods and services (7,830,278) (252,322) (8,082,600) (829,772)
Cash payments to employees for services (3,369,880) (791,188) (4,161,068) -
Cash payments for claims - - - (2,640,253)
Net cash provided by (used for) operating activities 7,009,697 576,576 7,586,273 376,766
Cash flows from noncapital and related financing activities:
Interfund transfers (2,522) - (2,522) -
Net cash provided by (used for) noncapital financing activities (2,522) - (2,522) -
Cash flows from capital and related financing activities:
Development impact fees 4,100,556 - 4,100,556 -
Acquisition of capital assets (5,234,293) (214,196) (5,448,489) -
Proceeds from sale of bonds 5,582,000 - 5,582,000 -
Proceeds from sale of capital assets 4,555 8,700 13,255 -
Principal paid on long-term debt (9,525,561) - (9,525,561) -
Interest on long-term debt (1,084,939) - (1,084,939) -
Net cash provided by (used for) capital financing activities (6,157,682) (205,496) (6,363,178) -
Cash flows from investing activities:
Investment income 54,528 2,634 57,162 9,341
Net cash provided by (used for) investing activities 54,528 2,634 57,162 9,341
Net increase (decrease) in cash and cash equivalents 904,021 373,714 1,277,735 386,107
Cash and cash equivalents, beginning of year 31,507,599 628,026 32,135,625 2,482,497
Cash and cash equivalents, end of year $32,411,620 $1,001,740 $33,413,360 $2,868,604
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used for) Operating Activities
Operating income (loss)$2,996,449 $256,514 $3,252,963 $285,780
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization 3,393,314 172,260 3,565,574 -
Provision for bad debt 9,690 1,482 11,172 -
Change in assets and liabilities:
Accounts receivable 41,558 (5,911) 35,647 -
Prepaid items 97,564 (648) 96,916 (530)
Accounts payable 400,528 135,478 536,006 14,868
Claims payable - - - 76,648
Accrued wages and benefits 40,749 (228) 40,521 -
Customer deposits payable (40,468) - (40,468) -
Pension plan items 70,313 17,629 87,942 -
Total adjustments 4,013,248 320,062 4,333,310 90,986
Net cash provided by (used for) operating activities $7,009,697 $576,576 $7,586,273 $376,766
Non-cash capital and financing activities
Contribution of assets from developers $3,350,964 $- $3,350,964 $-
Governmental
Activities
Internal Service
FundWater
Non-major
Enterprise Fund Total
Enterprise Funds
The notes to the basic financial statements are an integral part of this statement.
Page 47
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Oro Valley, Arizona (Town) have been prepared in
conformity with accounting principles generally accepted in the United States of America as
applied to government units. The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
The more significant of the Town’s accounting policies are described below.
A. Reporting Entity
The Town is a municipal entity governed by an elected mayor and council. The financial
reporting entity consists of a primary government and its component units. A component unit
is a legally separate entity that must be included in the reporting entity in conformity with
generally accepted accounting principles. The Town is a primary government that has a
separately elected governing body, is legally separate, and is fiscally independent of other state
or local governments. Furthermore, there are no component units combined with the Town for
financial statement presentation purposes, and the Town is not included in any other
governmental reporting entity. Consequently, the Town’s financial statements include the funds
of those organizational entities for which its elected governing body is financially accountable.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) present financial information about the Town as a whole. The reported information
includes all of the nonfiduciary activities of the Town. For the most part, the effect of internal
activity has been removed from these statements. These statements are to distinguish between
the governmental and business-type activities of the Town. Governmental activities normally
are supported by sales taxes and intergovernmental revenues, and are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. 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 or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Sales taxes, franchise taxes, unrestricted state shared revenues, investment income and other
items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and the major individual enterprise fund are reported as separate
columns in the fund financial statements.
Page 48
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-wide Financial Statements – The government-wide financial statements are
reported using the economic resources measurement focus and the accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. As a general rule, the effect of internal activity has been eliminated from the government-
wide financial statements; however, the effects of interfund services provided and used between
functions are reported as expenses and program revenues at amounts approximating their
external exchange value.
Fund Financial Statements – 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 enough
thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Sales taxes, franchise taxes, licenses and permits, charges for services, special assessments and
investment income associated with the current fiscal period are all considered to be susceptible
to accrual and have been recognized as revenues of the current fiscal period. Miscellaneous
revenue is not susceptible to accrual because generally they are not measurable until received
in cash. Grants and similar awards are recognized as revenue as soon as all eligibility
requirements imposed by the grantor or provider have been met. Unearned revenue arises when
resources are received by the Town before it has legal claim to them, as when grant monies are
received prior to meeting all eligibility requirements imposed by the provider.
The Council adopts the budget at the fund level as a total amount of expenditures. Financial
control is administered by fund, with budgetary control for operating performance regulated at
the departmental level, e.g., finance, development services, police, and parks and recreation.
The legal level of budgetary control (i.e. the level at which expenditures may not legally exceed
appropriations) is at the fund level.
Page 49
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The focus of governmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column. Non-major funds are
aggregated and presented in a single column. The internal service fund is presented in a single
column on the face of the proprietary fund statements.
The Town reports the following major governmental funds.
General Fund – This fund accounts for all financial resources of the Town, except those
required to be accounted for in other funds.
Community Center Fund – This fund accounts for the activity of the Oro Valley
Community Center, including golf, tennis, food and beverage and fitness revenues and
expenditures. This fund also accounts for the half cent sales taxes revenues dedicated to
these operations.
General Government CIP Fund – This fund accounts for governmental capital asset
projects.
PAG/RTA Fund – This fund accounts for revenues dedicated to Town improvements
funded through Pima Association of Governments and the Regional Transportation
Authority.
The Town reports the following major proprietary funds.
Water Fund – This fund accounts for the costs to operate, construct and finance the Town
water system.
The Proprietary Fund financial statements are reported using the economic resources
measurement focus and accrual basis of accounting. Proprietary funds distinguish operating
revenues and expenses from nonoperating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the Town’s
internal service fund is charges for health benefits. The principal operating revenues of the
Town’s enterprise funds are charges to customers for water and stormwater drainage services.
Operating expenses for these funds include the cost of sales and services, administrative
expenses, depreciation, and amortization. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
D. Cash and Investments
For purposes of the Statement of Cash Flows, the Town considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. Cash and cash
equivalents at year end were cash on hand, cash in bank, and cash and investments held by
another governmental entity as the Town's fiscal agent.
Page 50
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Arizona statute requires a pooled collateral program for public deposits and a Statewide
Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of
the pooled collateral program is to ensure that governmental entities’ public deposits placed in
participating depositories are secured with collateral of 102 percent of the public deposits, less
any applicable deposit insurance. An eligible depository may not retain or accept any public
deposit unless it has deposited the required collateral with a qualified escrow agent or the
Administrator. The Administrator manages the pooled collateral program, including reporting
on each depository’s compliance with the program.
Nonparticipating interest-earning investment contracts are stated at cost. Money market
investments and participating interest investment contracts with a remaining maturity of one
year or less at time of purchase are stated at amortized cost. All other investments are stated at
fair value.
E. Investment Income
Investment income is composed of interest, dividends, and net changes in the fair value of
applicable investments.
F. Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at
the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current
portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of
interfund loans). All other outstanding balances between funds are reported as “due to/from
other funds.” Interfund balances between governmental funds are eliminated on the Statement
of Net Position
All receivables are shown net of an allowance for uncollectibles.
G. Inventory
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories consist
of expendable supplies held for consumption. Inventories are recorded as expenses when
consumed on the government-wide financial statements and the fund financial statements.
Page 51
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in the government-wide and fund financial statements. Prepaid items
are recorded as expenses when consumed in the government-wide financial statements and the
fund financial statements.
I. Capital Assets
Capital assets, which include land, water rights, buildings and improvements, improvements
other than buildings, infrastructure, vehicles, machinery, equipment, and construction in
progress, are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets are defined by the Town as assets with an
initial, individual cost of $5,000 or more and an estimated useful life of more than one year.
Capital assets are recorded at historical cost if purchased or constructed. Donated capital assets
are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized.
Certain capital assets of the Town are depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Buildings 50
Improvements other than buildings 20-30
Infrastructure 20-50
Vehicles 4-6
Machinery and equipment 7-20
J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position may report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period and so will
not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position may report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and so will not
be recognized as an inflow of resources (revenue) until that time.
Page 52
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Compensated Absences
The Town’s employee annual and sick leave policies generally provide for granting annual and
sick leave with pay. Full-time employees accrue annual leave based on the number of years
employed. Employees who terminate employment shall be paid in a lump sum. Full-time
employees accumulate sick leave at the rate of one work day per month. Part -time employees
whose normal week is twenty hours or more receive sick leave at half the rate of full-time
employees. Once an employee has exceeded 480 hours of accrued sick leave, one half of the
sick leave balance in excess of the 480 hours shall be paid to the employee upon separation
from employment. The current and long-term liabilities, including related benefits, for
accumulated vacation and sick leave are reported on the government-wide financial statements.
A liability for these amounts, including related benefits, is reported in governmental funds only
if they have matured, for example, as a result of employee leave, resignations and retirements.
Generally, resources from the General Fund are used to pay for compensated absences.
L. Pensions
For purposes of measuring the net pension liabilities, related deferred outflows of resources and
deferred inflows of resources, and related expenses, information about the pension plans’
fiduciary net position and additions to/deductions from the plans’ fiduciary net position have
been determined on the same basis as they are reported by the plan. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value.
M. Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities on the
statement of net position. Bond premiums and discounts are amortized over the life of the bonds
using the straight-line method. Deferred amounts on refunding result from the difference
between the carrying value of refunded debt and its reacquisition price. This amount is deferred
and amortized over the shorter of the life of the refunded or refunding debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
The Town's legal debt limit for water, sewer, lights, open space preserves, parks, playgrounds,
and recreational facilities is $162.8 million, and for all other purposes is $48.8 million. The
Town does not have any related debt.
Page 53
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as
interfund transfers. Interfund transfers between governmental funds are eliminated in the
Statement of Activities. Interfund transfers in the fund statements are reported as other
financing sources/uses in governmental funds and after nonoperating revenues/expenses in
proprietary funds.
O. Net Position Flow Assumption
In the government-wide and proprietary fund financial statements the Town applies restricted
resources first when outlays are incurred for purposes for which either restricted or unrestricted
amounts are available.
P. Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.
Page 54
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 2 – FUND BALANCE CLASSIFICATIONS
Fund balances of the governmental funds are reported separately within classifications based
on a hierarchy of the constraints placed on the use of those resources. The classifications are
based on the relative strength of the constraints that control how the specific amounts can be
spent. The classifications are nonspendable, restricted, and unrestricted, which includes
committed, assigned, and unassigned fund balance classifications.
Nonspendable. The nonspendable fund balance classification includes amounts that cannot be
spent because they are not in spendable form or are legally or contractually required to be
maintained intact.
Restricted. Fund balance is reported as restricted when constraints placed on the use of
resources are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments or is imposed by law through
constitutional provisions or enabling legislation.
Committed. The committed fund balance classification includes amounts that can be used only
for the specific purposes imposed by formal action of the Town Council through the approval
of a Town resolution. Those committed amounts cannot be used for any other purpose unless
the Town Council removes or changes the specified use by taking the same type of action it
employed to previously commit those amounts. The committed fund balance reported in the
General Fund is to be used for contingency reserve. The committed fund balance reported in
the Townwide Facilities Projects Fund is used for improvements to Town parks. The
committed fund balance reported in the Community Center Fund is used for the culture and
recreation activity of the Community Center.
Assigned. Amounts in the assigned fund balance classification are intended to be used by the
Town for specific purposes but do not meet the criteria to be classified as restricted or
committed. In governmental funds other than the General Fund, assigned fund balance
represents the remaining amount that is not restricted or committed. In the General Fund,
assigned amounts represent intended uses established by the Town Council or a management
official delegated that authority by the formal Town Council action. This authorization has
been given to the Town Manager through the approval of Resolution No. (R)18-25, which
amended the Town Financial and Budgetary Policies. The assigned fund balance in the General
Government CIP Fund is to be used for governmental capital asset projects.
Unassigned. Unassigned fund balance is the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. In other governmental
funds, the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had be restricted, committed, or
assigned.
The Town applies restricted resources first when outlays are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
Page 55
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 2 – FUND BALANCE CLASSIFICATIONS (Continued)
The table below provides detail of the major components of the Town’s fund balance
classifications at year end.
Fund Balances:
Nonspendable:
Inventory $- $56,820 $- $- $-
Prepaid items 204,193 34,921 65,756 - -
Restricted:
Roadway maintenance - - - - 1,242,978
Debt service - - - - 169,630
Capital projects - - - 1,248,618 2,464,287
Public safety - - - - 266,810
Committed:
Contingency reserve 9,883,194 - - - -
Culture & recreation - 2,585,052 - - -
Park improvements - - - - 17,045
Assigned:
Townwide capital - - 2,438,272 - -
Unassigned:22,321,155 - - - -
Total Fund Balances $32,408,542 $2,676,793 $2,504,028 $1,248,618 $4,160,750
PAG/RTA
Fund
Non-Major
Governmental
Funds
General
Fund
Community
Center Fund
General
Government
CIP Fund
NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Excess Expenditures Over Budget – At year end, the Town had expenditures in funds that
exceeded the budget, however, this does not constitute a violation of legal provisions.
NOTE 4 – CASH AND INVESTMENTS
A.R.S. authorize the Town to invest public monies in obligations of the U.S. Government and
its agencies, obligations of the State and certain local government subdivisions, interest-
bearing savings accounts and certificates of deposit, collateralized repurchase agreements,
certain obligations of U.S. corporations, and certain other securities. The statutes do not include
any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate
risk, or foreign currency risk for the Town’s investments.
Custodial Credit Risk – Deposits. Custodial Credit risk is the risk that in the event of bank
failure the Town’s deposits may not be returned to the Town. The Town does not have a deposit
policy for custodial credit risk. At year end, the carrying value of the Town’s deposits was
$20,019,441 and the bank balance was $20,378,704. Of the bank balance, $750,000 was covered by
Federal depository insurance and the remainder was covered by collateral held by the pledging
financial institution’s trust department or agent but not in the Town’s name and no amounts
were uninsured and uncollateralized. Additionally, the Town had cash on hand of $9,877.
Page 56
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 4 – CASH AND INVESTMENTS (Continued)
Fair Value Measurements. The Town 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.
• 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
Valuation Techniques. Equity and debt securities classified in Level 1 of the fair value
hierarchy are valued using prices quoted in active markets for those securities. Money markets
and certificates of deposit securities classified in Level 2 of the of the fair value hierarchy are
valued using a matrix pricing technique. Matrix pricing is used to value securities based on the
securities’ relationship to benchmark quoted prices.
The State Treasurer’s pools are external investment pools, the Local Government Investment
Pool (Pool 5) and Local Government Investment Pool – Government (Pool 7), with no
regulatory oversight. The pools are as an investment company are not registered with the
Securities and Exchange Commission. The activity and performance of the pools are reviewed
monthly by the State Board of Investment. The fair value of each participant’s position in the
State Treasurer investment pools approximates the value of the participant’s shares in the pool
and the participants’ shares are not identified with specific investments. Participants in the pool
are not required to categorize the value of shares in accordance with the fair value hierarchy.
The Arizona State Treasurer has a publicly available financial report that includes financial
statements and required supplementary information. Copies may be obtained by contacting the
Arizona State Treasurer, 1700 West Washington, Phoenix, AZ 85007 or at
www.aztreasury.gov.
The County Treasurer’s pool is an external investment pool with no regulatory oversight. The
pool is not required to register (and is not registered) with the Securities and Exchange
Commission. The fair value of each participants’ position in the County Treasurer investment
pool approximates the value of the participants’ shares in the pool and the participants’ shares
are not identified with specific investments. Participants in the pool are not required to
categorize the value of shares in accordance with the fair value hierarchy.
Custodial Credit Risk – Investments. The Town’s investment in the State and County
Treasurer’s investment pools represents a proportionate interest in the pool’s portfolio;
however, the Town’s portion is not identified with specific investments and is not subject to
custodial credit risk.
Page 57
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 4 – CASH AND INVESTMENTS (Continued)
All investments in which the fair value hierarchy is applicable are measured at fair value on a
recurring basis. At year end, the Town’s investments consisted of the following:
Investment Type Fair Value Category Less than 1 1-5 Moody's S&P's
Money Market - PFM Group 422,803 Level 2 422,803 N/A AAAm
Money Market - Wells Fargo 272,886 Level 2 272,886 N/A N/A
Money Market - Zion Bank 151,514 Level 2 151,514 N/A N/A
Money Market - US Bank 4,004,725 Level 2 4,004,725 N/A N/A
Money Market - BNY Mellon 2,060,500 Level 2 2,060,500 N/A N/A
U.S. Treasuries 36,629,663 Level 1 6,157,230 30,472,433 Aaa AA+
Supra-National Agency:
International Bank of Reconstruction and Dev.349,148 Level 1 349,148 Aaa AAA
Asian Development Bank 941,616 Level 1 941,616 Aaa AAA
Collateralized Mortgage Obligation
FHMS 106,697 Level 1 89,004 17,693 Aaa AA+
FNA 5,683 Level 1 5,683 Aaa AA+
Federal Home Loan Mortgage Corporation 461,327 Level 1 461,327 Aaa AA+
Asset-Backed Security
Credit Rating - Aaa and AAA 1,083,210 Level 1 1,083,210 Aaa AAA
Credit Rating - N/A and AAA 930,976 Level 1 930,976 N/A AAA
Credit Rating - Aaa and N/A 989,965 Level 1 989,965 Aaa N/A
U.S. Agencies:
Federal Home Loan Banks 998,539 Level 1 998,539 Aaa AA+
Corporate Notes:
Credit Rating - A3 and BBB+427,955 Level 1 427,955 A3 BBB+
Credit Rating - A3 and A+169,527 Level 1 169,527 A3 A+
Credit Rating - A3 and A-323,010 Level 1 323,010 A3 A-
Credit Rating - A3 and AA-123,616 Level 1 123,616 A3 AA-
Credit Rating - A2 and BBB+624,468 Level 1 624,468 A2 BBB+
Credit Rating - A2 and A 831,120 Level 1 831,120 A2 A
Credit Rating - A2 and A-1,543,044 Level 1 1,543,044 A2 A-
Credit Rating - A1 and BBB+652,730 Level 1 652,730 A1 BBB+
Credit Rating - A1 and A-200,743 Level 1 200,743 A1 A-
Credit Rating - A1 and A 360,547 Level 1 360,547 A1 A
Credit Rating - A1 and A+342,602 Level 1 342,602 A1 A+
Credit Rating - A1 and AA 429,064 Level 1 429,064 A1 AA
Credit Rating - Aa2 and AA-224,004 Level 1 224,004 Aa2 AA-
55,661,682 13,164,345 42,497,337
County Treasurer's Investment Pool 349,870 Not applicable 202 days average maturities N/A
State Treasurer's Investment Pool 5 7,637,457 Not applicable 47 days average maturities AAA/S1+
Total 63,649,009
Investment Maturities (in Years)Credit Quality Ratings
Page 58
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 4 – CASH AND INVESTMENTS (Continued)
Interest Rate Risk. The Town has implemented an investment policy that will minimize
interest rate risk, which is the risk that the market value of securities in the portfolio will fall
due to changes in market interest rates by the following.
1. Structuring the investment portfolio so that securities mature to meet cash requirements
for ongoing operations, thereby avoiding the need to sell securities on the open market
prior to maturity; and
2. Investing operating funds primarily in shorter-term securities, money market mutual
funds, or similar investment pools limiting the average maturity in the portfolio in
accordance with this policy.
Credit Risk. The Town has implemented an investment policy that will minimize credit risk,
which is the risk of loss due to the failure of the security or backer by the following:
1. Limiting investments to the types of securities listed in Section 6 of this investment
policy;
2. Pre-qualifying financial institutions, broker/dealers, intermediaries, and advisers with
which the Town will do business in accordance with Section 5; and
3. Diversifying the investment portfolio so that the impact of potential losses from any
one type of security or from any one individual issuer will be minimized.
Concentration of Credit Risk. The Town places no limit on the amount the Town may invest
in any one issuer. The investments in Money Markets, Certificates of Deposit, U.S. Treasuries,
Supranational Agency Bonds, Collateralized Mortgage Obligations, Asset-Backed
Securities, U.S. Agencies, Corporate Securities, County Treasurer’s Investment Pool, and
State Treasurer's Investment Pool 5, represent 11%, 0%, 58%, 2%, 1%, 5%, 2%, 10%, 1%, and
12% of the Town's total investments, respectively.
NOTE 5 – RECEIVABLES
Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and
presented separately in the financial statements with the exception of intergovernmental
receivables. Intergovernmental receivables, net of allowance for uncollectibles, as of year-end
for the Town’s individual major funds and non-major governmental funds in the aggregate,
were as follows:
Intergovernmental receivables:
Due from federal government $135,352 $-
Due from state government 464,100 337,610
Net intergovernmental receivables $599,453 $337,610
Non-Major
General
Fund Funds
Governmental
Page 59
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 6 – CAPITAL ASSETS
A summary of capital asset activity for the current fiscal year follows:
Governmental Activities:
NON-DEPRECIABLE
Land $19,518,801 $14,453,420 $- $33,972,221
Construction in progress 23,119,854 3,998,929 (862,303) 26,256,480
Total non-depreciable 42,638,655 18,452,349 (862,303) 60,228,701
DEPRECIABLE
Infrastructure 211,908,490 2,247,952 - 214,156,442
Buildings & improvements 41,732,499 2,486,069 - 44,218,568
Machinery, equipment & vehicles 17,628,436 1,688,063 (699,991) 18,616,508
Total depreciable 271,269,425 6,422,084 (699,991) 276,991,518
ACCUMULATED DEPRECIATION
Infrastructure (111,003,693) (8,229,580) - (119,233,273)
Buildings & improvements (10,057,652) (1,056,454) - (11,114,106)
Machinery, equipment & vehicles (13,764,368) (1,201,527) 677,887 (14,288,008)
Total accumulated depreciation (134,825,713) (10,487,561) 677,887 (144,635,387)
Total capital assets being depreciated 136,443,712 (4,065,477) (22,104) 132,356,131
Capital assets, net of depreciation $179,082,367 $14,386,872 $(884,407) $192,584,832
Business-type Activities:
NON-DEPRECIABLE
Land $2,410,660 $- $- $2,410,660
Water rights 8,534,490 - - 8,534,490
Construction in progress 3,388,124 4,381,911 (170,095) 7,599,940
Total non-depreciable 14,333,274 4,381,911 (170,095) 18,545,090
DEPRECIABLE
Water system 139,052,402 4,193,767 - 143,246,169
Stormwater system 3,478,844 171,872 - 3,650,716
Machinery, equipment & vehicles 5,887,424 192,531 (62,809) 6,017,146
Total depreciable 148,418,670 4,558,170 (62,809) 152,914,031
ACCUMULATED DEPRECIATION
Water system (51,704,098) (3,388,139) - (55,092,237)
Stormwater system (629,996) (73,678) - (703,674)
Machinery, equipment & vehicles (4,633,077) (318,183) 62,809 (4,888,451)
Total accumulated depreciation (56,967,171) (3,780,000) 62,809 (60,684,362)
Total capital assets being depreciated 91,451,499 778,170 - 92,229,669
Capital assets, net of depreciation $105,784,773 $5,160,081 $(170,095) $110,774,759
Beginning Ending
Balance Increases Decreases Balance
Beginning Ending
Balance Increases Decreases Balance
Page 60
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 6 – CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $598,666
Public safety 646,690
Highways & streets 8,355,859
Culture & recreation 886,346
Total depreciation expense - governmental activities $10,487,561
Business-type activities:
Water $3,607,740
Stormwater 172,260
Total depreciation expense - business-type activities $3,780,000
Construction Commitments – As of year-end, the Town had contractual commitments related
to road improvements and well construction. At year end the Town had spent $33.9 million on
the projects and had estimated remaining contractual commitments of $25.1 million.
NOTE 7 – LOAN PAYABLE
The Town has a loan from the Water Infrastructure Finance Authority (WIFA) of Arizona for
water system projects. The loan payable at current fiscal year end is presented below.
Interest Rate
(Including Remaining
Business-type activities:Fees)Maturities
WIFA Loan, 2014 2.65%7/1/21-28 $2,713,108 $308,895
Total $2,713,108 $308,895
Outstanding
Principal
June 30, 2021
Due Within
One Year
Page 61
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 7 – LOAN PAYABLE (Continued)
Principal and interest payments on the business-type activities loan payable at June 30, 2021
is summarized as follows:
Year ending June 30:
$308,895 $67,856
317,087 59,555
325,496 51,034
334,128 42,288
342,989 33,310
1,084,513 43,645
$2,713,108 $297,688 Total
2022
2023
2024
2025
2026
2027-2028
Principal Interest
NOTE 8 – REVENUE BONDS PAYABLE
Bonds payable at year end, consisted of the following outstanding revenue and refunding
bonds. The bonds are both callable and noncallable with interest payable semiannually. Taxes,
water revenues, and impact fees are used to pay bonded debt.
Purpose
Governmental activities:
Revenue bonds:
Excise Tax Revenue Obligations, 2010 $2,445,000 $1,085,000 $145,000
Revenue Bonds, 2012 2,580,000 1,390,000 175,000
Private placement revenue bonds:
Refunding Excise Tax Revenue Obligations, 2015 2,529,250 1,455,910 279,390
Excise Tax Revenue Obligations, 2016 2,000,000 1,681,000 133,000
Refunding Excise Tax Revenue Obligations, 2017 1,115,556 774,460 121,446
Excise Tax Revenue Obligations, 2018 2,035,000 1,843,250 117,750
Total $8,229,620 $971,586
Outstanding
Principal
June 30, 2021Issued
Amount
Original
Interest
Rates
7/1/21-27
7/1/21-27
7/1/21-25
7/1/21-31
7/1/21-26
7/1/21-33
5.49-6.59%
2.20%
2.43%
3.02%
Due Within
One Year
3.50-4.00%
1.91%
Remaining
Maturities
Purpose
Business-type activities:
Revenue bonds:
Refunding Revenue Bonds, 2012 $16,595,000 $3,545,000 $1,730,000
Private placement revenue bonds:
Refunding Revenue Bonds, 2015 1,245,750 717,090 137,610
Refunding Revenue Bonds, 2017 13,186,444 9,154,538 1,435,554
Excise Tax Revenue Obligations, 2018 6,105,000 5,529,750 353,250
Refunding Revenue Bonds, 2021 5,582,000 5,582,000 395,000
Total $24,528,378 $4,051,414
Original
Issued
Amount
1.91%7/1/21-25
2.43%7/1/21-26
3.02%7/1/21-33
1.16-1.27%7/1/21-30
3.00-5.00%7/1/21-28
Due Within
Outstanding
Rates Maturities June 30, 2021 One Year
PrincipalRemainingInterest
Page 62
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 8 – REVENUE BONDS PAYABLE (Continued)
Annual debt service requirements to maturity on revenue and refunding bonds for governmental
activities at year end are summarized as follows:
$320,000 $111,967 $651,586 $131,891
335,000 96,224 670,660 116,900
340,000 79,739 688,242 101,489
355,000 63,036 702,974 85,704
365,000 46,001 717,942 69,565
760,000 37,775 1,662,466 195,331
- - 660,750 24,394
$2,475,000 $434,742 $5,754,620 $725,274
Year ending June 30:
2022
2023
2024
2025
2026
2027-2031
2032-2034
Total
Principal Interest
Revenue Bonds
Principal Interest
Revenue Bonds
Private Placement
Governmental Activities
Annual debt service requirements to maturity on revenue and refunding bonds for business-type
activities at year end are summarized as follows:
$1,730,000 $172,282 $2,321,414 $354,970
1,815,000 81,532 2,430,340 367,863
- - 3,046,758 311,895
- - 2,836,026 248,084
- - 2,899,058 186,002
- - 5,977,532 412,233
- - 1,472,250 45,346
$3,545,000 $253,814 $20,983,378 $1,926,393
Year ending June 30:
2022
2023
2024
2025
2027-2031
2032-2034
Total
2026
Principal Interest Principal Interest
Business-type Activities
Private Placement
Revenue Bonds Revenue Bonds
Page 63
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 8 – REVENUE BONDS PAYABLE (Continued)
Pledged revenues – governmental activities. The Town has pledged future sales (excise) tax
revenues to repay outstanding revenue bonds and refunding revenue bonds of $8.2 million as of
June 30, 2021. Proceeds from the original bond issuances, including those subsequently refunded,
provided financing for land acquisition and facility construction. The bonds are paid solely from
the Town’s sales taxes and are payable through 2034. Total annual principal and interest payments
for all sales tax revenue bonds are expected to require less than seven percent of gross revenues.
The total principal and interest to be paid on the bonds is $9.4 million. The current total sales tax
revenues were $24.1 million, and the total principal and interest paid on the bonds was $1.2 million
or approximately five percent of gross revenues.
Pledged revenues – business-type activities. The Town has pledged future water revenues to
repay outstanding revenue bonds and refunding revenue bonds of $24.5 million as of June 30,
2021. Proceeds from the original bond issuances, including those subsequently refunded, provided
financing for the construction and improvements to the Town’s water systems and infrastructure.
The bonds are paid solely from water utility revenues and are payable through 2034. Total annual
principal and interest payments for all water revenue bond issuances are expected to require
approximately 25 percent of gross revenues. The total principal and interest to be paid on the bonds
is $26.7 million. The current total customer gross revenues were $22.3 million, and the total
principal and interest paid on the bonds was $6.5 million or 29 percent of gross revenues.
NOTE 9 – OBLIGATIONS UNDER LEASES
Operating Leases – The Town leases golf carts under the provisions of long-term lease agreements
classified as operating leases for accounting purposes. Rental expenditures under the terms of the
operating leases totaled $161,540 for the current fiscal year. The operating leases have a remaining
noncancelable lease term of .6 years. The future minimum rental payments required under the
operating leases at year end were as follows:
Operating Leases
Year ending June 30:
2022 91,287
Total minimum payments required $91,287
Page 64
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 10 – CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the current fiscal year was as follows:
Due Within
One Year
Governmental activities
Revenue bonds $2,790,000 $- $(315,000) $2,475,000 $320,000
Private placement revenue bonds 6,381,710 - (627,090) 5,754,620 651,586
Special assessment bonds 170,000 - (170,000) - -
Total bonds payable 9,341,710 - (1,112,090) 8,229,620 971,586
Capital leases payable 33,937 - (33,937) - -
Net pension liability 42,403,020 5,204,239 - 47,607,259 -
Compensated absences payable 2,389,833 1,936,500 (1,923,022) 2,403,311 1,929,761
Governmental activities long-term
liabilities $54,168,500 $7,140,739 $(3,069,049) $58,240,190 $2,901,347
Business-type activities
Revenue bonds $7,455,000 $- $(3,910,000) $3,545,000 $1,730,000
Private placement revenue bonds 17,281,288 5,582,000 (1,879,910) 20,983,378 2,321,414
Premium 933,420 - (551,963) 381,457 -
Total bonds payable 25,669,708 5,582,000 (6,341,873) 24,909,835 4,051,414
Loan payable 6,448,759 - (3,735,651) 2,713,108 308,895
Net pension liability 3,959,101 591,441 - 4,550,542 -
Compensated absences payable 380,819 278,582 (267,690) 391,711 273,136
Business-type activities long-term
liabilities $36,458,387 $6,452,023 $(10,345,214) $32,565,196 $4,633,445
Outstanding
July 1,
2020
Outstanding
June 30,
2021
Matured/
Redeemed
During YearIssued
July 1,Redeemed June 30,
2020
Outstanding
Issued
Matured/
During Year
Outstanding
2021
Due Within
One Year
Current and Advance Refunding – In the current fiscal year, the Town issued $5,582,000 in
private placement Water revenue bonds comprised of $3,631,000 taxable and $1,951,000 tax-
exempt components. The interest rate for the taxable component is 1.16%, while the rate for the
tax-exempt component is 1.27%. Proceeds were used to currently r efund a 2007 Water
Infrastructure Finance Authority (WIFA) of Arizona loan carrying an interest rate of 3.54%, as
well as advance refund a 2009 WIFA loan carrying interest at 3.17% and a 2012 Senior Lien Water
Revenue bond carrying interest ranging from 3.00-4.00%. The net proceeds of $5,510,346, after
issuance costs of $71,654, were deposited in an irrevocable trust with an escrow agent to provide
funds for the current and future debt payments on the refunded obligations. As a result, a portion
of the 2009 WIFA loan and 2012 Senior Lien Water Revenue bonds are considered defeased and
the liabilities for those obligations has been removed from the statement of net position. The
refunding reduced the Town’s total debt service payments by $263,806 and produced an economic
gain (difference between the present values of the debt service payments on the old and new debt)
of $250,861.
Page 65
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 11 – TRANSFERS
At year end, transfer activity in the funds was as follows:
Interfund transfers:
General Fund $- $2,586,519
Community Center Fund - 158,302
General Government CIP 1,771,143 -
Non-Major Governmental Funds 1,076,200 100,000
Water Fund - 2,522
$2,847,343 $2,847,343
Transfers In Transfers Out
Transfers were made from the General, Community Center, General Impact Fee and Water Funds
to the Municipal Debt Service Fund, a non-major governmental fund, for debt service. In addition,
transfers were made from the General Fund to the General Government CIP Fund to fund capital
projects.
NOTE 12 – CONTINGENT LIABILITIES
Compliance – Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the federal government. Any disallowed claims,
including amounts already collected, may constitute a liability of the applicable funds. The amount,
if any, of expenditures/expenses that may be disallowed by the grantor cannot be determined at this
time, although the Town expects such amounts, if any, to be immaterial.
Page 66
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 13 – RISK MANAGEMENT
The Town 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 Town’s insurance protection is provided by the Arizona Municipal Risk Retention Pool, of
which the Town is a participating member. The limit for basic coverage is for $2,000,000 per
occurrence on a claims made basis. Excess coverage is for an additional $10,000,000 per
occurrence on a follow form, claims made basis. The aggregate limit is also $10,000,000. No
significant reduction in insurance coverage occurred during the year and no settlements
exceeded insurance coverage during any of the past three fiscal years.
The Arizona Municipal Risk Retention Pool is structured such that member premiums are based
on an actuarial review that will provide adequate reserves to allow the Pool to meet its expected
financial obligations. The Pool has the authority to assess its members’ additional premiums
should reserves and annual premiums be insufficient to meet the Pool’s obligations.
The Town is insured by Arizona Municipal Workers Compensation Pool for potential worker
related accidents. The Town has established a Self-Insurance Fund to account for and finance
its uninsured risks of loss related to its employee health benefits program. The activity is
reported in an internal service fund in these financial statements. Under this program, the Fund
provides coverage for up to a maximum of $150,000 for each claim, not to exceed an annual
aggregate of $2,000,000. The Fund purchases commercial insurance for claims in excess of
this coverage. Settled claims have not exceeded this coverage for the past three fiscal years.
Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount
of the loss can be reasonably estimated. Liabilities include an amount for claims that have been
incurred but not reported (IBNRs). The result of the process to estimate the claims liability is
not an exact amount as it depends on many complex factors, such as inflation, changes in legal
doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider
the effects of inflation, recent claim settlement trends (including frequency and amount of pay-
outs), and other economic and social factors. The estimate of the claims liability also includes
amounts for incremental claim adjustment expenses related to specific claims and other claim
adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries,
for example from salvage or subrogation, are another component of the claims liability
estimate. Changes in the balances of claims liabilities during the past two years are as follows.
2020-21 $251,704 $2,715,039 $2,638,391 $328,352
2019-20 333,423 2,239,893 2,321,612 251,704
Claim
Payments
Claims Payable
at End of Year
Claims Payable
Beginning of
Year
Current Year Claims
and Changes in
Estimates
Page 67
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 14 – SUBSEQUENT EVENTS
On July 6, 2021, the Town issued $17.975 million in taxable pension obligation bonds, and
made a $10 million contribution from reserves, to fully fund its PSPRS unfunded pension
liability. The bonds are repayable over 17 years and carry an all-in total issuance cost of 2.39
percent. Town excise taxes are pledged as the repayment source for the bonds.
On November 4, 2021, the Town issued $21.12 million in tax-exempt parks and recreation
bonds for various parks and recreation improvements. The bonds are repayable over 20 years
and carry an all-in total issuance cost of 2.31 percent. Town excise taxes, including a half-cent
sales tax restricted for parks and recreation uses, are pledged as the repayment source for the
bonds.
Page 68
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS
The Town contributes to the plans described below. The plans are component units of the State
of Arizona.
Aggregate Amounts. On June 30, 2021, the Town reported the following aggregate amounts
related to pensions for all plans to which it contributes.
Net pension liability $47,607,259 $4,550,542 $52,157,801
Pension deferred outflows of resources 11,141,057 847,888 11,988,945
Pension deferred inflows of resources 780,614 133,487 914,101
Pension expense 5,958,506 437,336 6,395,842
Total
Business-type
Activities
Governmental
Activities
The Town reported $4.5 million of pension contributions as expenditures in the governmental
funds related to all plans to which it contributes.
A. Arizona State Retirement System
Plan Description. Town employees participate in the Arizona State Retirement System
(ASRS). The ASRS administers a cost-sharing multiple-employer defined benefit pension plan,
a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB)
plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan.
The Arizona State Retirement System Board governs the ASRS according to the provisions of
A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial
report that includes its financial statements and required supplementary information. The report
is available on the ASRS website at www.azasrs.gov. GASB Statement 75 has not been recorded
or further disclosed due to its relative insignificance to the Town’s financial statements.
Page 69
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Benefits Provided. The ASRS provides retirement, health insurance premium supplement,
long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement
benefits are calculated on the basis of age, average monthly compensation, and service credit as
follows:
Retirement Initial
Membership Date:
Before July 1, 2011 On or After July 1, 2011
Years of service and
age required to
receive benefit
Sum of years and age equals 80
10 years, age 62
5 years, age 50*
Any years, age 65
30 years, age 55
25 years, age 60
10 years, age 62
5 years, age 50*
Any years, age 65
Final average salary is
based on
Highest 36 months of last
120 months
Highest 60 months of last
120 months
Benefit percent per
year of service
2.1% to 2.3% 2.1% to 2.3%
*With actuarially reduced benefits
Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject
to automatic cost-of-living adjustments based on excess investment earnings. Members with a
membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments.
Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit
is determined by the retirement benefit option chosen. For all other members, the beneficiary is
entitled to the member’s account balance that includes the member’s contributions and
employer’s contributions, plus interest earned.
Retired and disabled members, with at least five years of credited service, are eligible to receive
health insurance premium benefits. The benefits are payable only with respect to allowable
health insurance premiums for which the member is responsible. For members with 10 or more
years of service, benefits range from $100 per month to $260 per month depending on the age
of the member and dependents. For members with five to nine years of service, the benefits are
the same dollar amounts as above multiplied by a vesting fraction based on completed years of
service.
Page 70
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Active members are eligible for a long-term disability benefit in the event they become unable
to perform their work. The monthly benefit is equal to two-thirds of their monthly earnings.
Members receiving benefits continue to earn service credit up to their normal retirement dates.
Members with long-term disability commencement dates after June 30, 1999 are limited to 30
years of service or the service on record as of the effective disability date, if their service is
greater than 30 years.
Contributions. In accordance with state statutes, annual actuarial valuations determine active
member and employer contribution requirements. The combined active member and employer
contribution rates are expected to finance the costs of benefits employees earn during the year,
with an additional amount to finance any unfunded accrued liability. For the current fiscal year,
active ASRS members were required by statute to contribute at the actuarially determined rate of
12.22 percent (12.04 percent for retirement and 0.18 percent for long-term disability) of the
members’ annual covered payroll, and the Town was required by statute to contribute at the
actuarially determined rate of 12.22 percent (11.65 percent for retirement, 0.39 percent for health
insurance premium benefit, and 0.18 percent for long-term disability) of the active members’
annual covered payroll. The Town’s contributions for the year ended June 30, 2021 were as
follows:
Pension $1,574,068
Contributions
Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members
who return to work in positions that would typically be filled by an employee who contributes
to ASRS. The Town was required by statute to contribute at the actuarially determined rate of
10.21 percent (10.14 for retirement, 0.00 percent for health insurance premium benefit, and 0.07
percent for long-term disability). ACR contributions are included in employer contributions
presented above.
The Town’s pension contributions are paid by the same funds as the employee’s salary, with
the largest component coming from the General Fund. Contributions from the Water Enterprise
Fund were 18%, and contributions from the non-major enterprise fund were 4%.
Page 71
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Pension Liability. The net pension liability was measured as of June 30, 2020. The total
liability used to calculate the net liability was determined using update procedures to roll
forward the total liability from an actuarial valuation as of June 30, 2019, to the measurement
date of June 30, 2020. The Town’s proportion of the net assets/liability was based on the
Town’s actual contributions to the applicable plan relative to the total of all participating
employers’ contributions to the plan for the year ended June 30, 2020.
At June 30, 2021, the Town reported the following amounts for its proportionate share of the
ASRS plans net assets/liability. In addition, at June 30, 2020, the Town’s percentage proportion
for each plan and the related change from its proportion measured as of June 30, 2019 was:
Pension $21,464,093 0.124 (0.005)
Net (Asset)/
Liability
Town %
Proportion
Increase
(Decrease)
Pension Expense and Deferred Outflows/Inflows of Resources. The Town has deferred
outflows and inflows of resources related to the net pension liability. Certain changes in the net
pension liability are recognized as pension expense over a period of time rather than the year
of occurrence. For the year ended June 30, 2021, the Town recognized pension expense as
follows:
Pension $1,986,614
Expense
Page 72
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
The Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows of Resources
Differences between expected and actual experience $194,180
Changes of assumptions or other inputs -
Net difference between projected and actual earnings
on pension investments 2,070,237
Changes in proportion and differences between
contributions and proportionate share of contributions -
Contributions subsequent to the measurement date 1,574,068
Total $3,838,485
Deferred Inflows of Resources
Differences between expected and actual experience $-
Changes of assumptions or other inputs -
Net difference between projected and actual earnings
on pension investments -
Changes in proportion and differences between
contributions and proportionate share of contributions 606,368
Total $606,368
Pension
Pension
The amounts of deferred outflows of resources resulting from contributions subsequent to the
measurement date as reported in the table above will be recognized as an adjustment of the net
pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
$(111,988)
380,897
748,827
640,313
-
-
2022
2023
2024
2025
2026
Thereafter
Pension
Page 73
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Actuarial Assumptions. The significant actuarial assumptions used to measure the total
pension liability are as follows:
Pension
Actuarial valuation date June 30, 2019
Actuarial roll forward date June 30, 2020
Actuarial cost method Entry age normal
Investment rate of return 7.5%
Projected salary increases 2.7-7.2%
Inflation 2.3%
Permanent base increases Included
Mortality rates 2017 SRA Scale U-MP
Healthcare cost trend rate Not applicable
The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an
actuarial experience study for the five-year period ended June 30, 2016. The purpose of the
experience study was to review actual experience in relation to the actuarial assumptions in
effect. The ASRS Board adopted the experience study recommended changes which were
applied to the June 30, 2019, actuarial valuation.
The long-term expected rate of return on ASRS plan investments was determined to be 7.5
percent using a building-block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation
percentage excluding any expected inflation. The target allocation and best estimates of
geometric real rates of return for each major asset class of ASRS are summarized in the
following table:
Asset Class
Equity 50%6.39%
Credit 20%5.44%
Interest rate sensitivity bonds 10%0.22%
Real estate 20%5.85%
Total 100%
Target
Long-term
Expected Real
Allocation Rate of Return
Page 74
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Discount Rate. The discount rate used to measure the ASRS total pension liability was 7.5
percent. The projection of cash flows used to determine the discount rate assumed that
contributions from participating employers will be made based on the actuarially determined
rates based on the ASRS Board’s funding policy, which establishes the contractually required
rate under Arizona statute. Based on those assumptions, the plans’ 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 investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate. The following table presents the Town’s proportionate share of the net pension
liability calculated using the discount rate of 7.5 percent, as well as what the proportionate share
of the 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:
$29,351,856 $21,464,093 $14,870,328
8.5%
Proportionate share of the net liability
Discount Rate
Current
Pension
Rate 6.5%7.5%
1% Decrease 1% Increase
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary
net position is available in the separately issued ASRS financial report. The report is available
on the ASRS website at www.azasrs.gov.
Page 75
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
B. Public Safety Personnel Retirement System and Corrections Officer Retirement Plan
Plan Descriptions. Town public safety employees who are regularly assigned hazardous duty
participate in the Public Safety Personnel Retirement System (PSPRS) or employees who
became members on or after July 1, 2017, may participate in the Public Safety Personnel
Defined Contribution Retirement Plan (PSDCRP). The PSPRS administers an agent and cost-
sharing multiple-employer defined benefit pension plan and an agent and cost-sharing
multiple-employer defined benefit health insurance premium benefit (OPEB) plan. A nine-
member board known as the Board of Trustees and the participating local boards govern the
PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. Employees who
were PSPRS members before July 1, 2017, participate in the agent plans, and employees who
became PSPRS members on or after July 1, 2017, participate in either the agent plans or cost-
sharing plans (PSPRS Tier 3 Risk Pool).
Town dispatchers participate in the Corrections Officer Retirement Plan (CORP) or the Public
Safety Personnel Defined Contribution Retirement Plan. The CORP administers an agent
multiple-employer defined benefit pension plan and an agent multiple-employer defined
benefit health insurance premium benefit (OPEB) plan for dispatchers (agent plans), which
were closed to new members as of July 1, 2018. Employees who were CORP members before
July 1, 2018, participate in CORP or PSDCRP. Dispatcher employees who became members
on or after July 1, 2018 participate in PSDCRP. The PSPRS Board of Trustees described above
and the participating local boards govern CORP according to the provisions of A.R.S. Title 38,
Chapter 5, Article 6.
The PSPRS and CORP issue a publicly available financial report that includes their financial
statements and required supplementary information. The report is available on the PSPRS
website at www.psprs.com.
The PSPRS Tier 3 Risk Pool plans and the PSPRS OPEB plans are not further disclosed
because of their relative insignificance to the Town’s financial statements.
Benefits Provided. The PSPRS and CORP provide retirement, health insurance premium
supplement, disability, and survivor benefits. State statute establishes benefits terms. Certain
retirement, disability, and survivor benefits are calculated on the basis of age, average monthly
compensation, and service credit as follows. See the publicly available PSPRS and CORP
financial report for additional benefits information.
Page 76
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Retirement and disability
Years of service and age required
to receive benefit
Final average salary is based on
Benefit percent
Normal retirement
Accidental disability retirement
Catastrophic disability retirement
Ordinary disability retirement
Survivor benefit
Retired members
Active members
(not to exceed 20 years) divided by 20, or 2.5% per year of credited service
80%-100% of retired member's pension benefit
80%-100% of accidental disability retirement benefit or 100% of average
monthly compensation if death was the result of injuries received on the job
50% or normal retirement, whichever is greater
90% for the first 60 months then reduced to either 62.5% or normal retirement,
whichever is greater
Normal retirement calculated with actual years of credited service or 20 years of
credited service, whichever is greater, multiplied by years of credited service
credited service less than 20
years OR plus 2-2.5% for each
year of credited service over
20 years, not to exceed 80%
1.5-2.5% per year of credited
service not to exceed 80%
Highest 36 consecutive
months of last 10-20 years
Highest 60 consecutive
months of last 10-20 years
50% less 2% for each year of
10 years, age 62 10 years, age 62
On or after January 1, 2012
and before July 1, 2017Before January 1, 2012
15 years of service, age 62
20-25 years of service, any age
of credited service, age 52.5
25 years of service or 15 years
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on
inflation. PSPRS also provides temporary disability benefits of 50 percent of the member's
compensation for up to 12 months.
Health insurance premium benefits are available to retired or disabled members with 5 years of
credited service. The benefits are payable only with respect to allowable health insurance
premiums for which the member is responsible. Benefits range from $100 per month to $260 per
month depending on the age of the member and dependents.
Page 77
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Employees Covered by Benefit Terms. As of June 30, 2021, the following employees were
covered by the agent plan’s benefit terms:
Retirees & beneficiaries 43 5
Inactive, non-retired members 18 4
Active members 78 3
Total 139 12
Police CORP-Dispatchers
Contributions. State statutes establish the pension contribution requirements for active PSPRS
and CORP employees. In accordance with state statutes, annual actuarial valuations determine
employer contribution requirements for PSPRS and CORP pension and health insurance
premium benefits. The combined active member and employer contribution rates are expected
to finance the costs of benefits employees earn during the year, with an additional amount to
finance any unfunded accrued liability. Contributions rates for the year ended June 30, 2021, are
indicated below. Rates are a percentage of active members’ annual covered payroll.
CORP -
PSPRS - Police Dispatchers
Active members – pension 7.65% to 11.65% 7.96%
Town:
Pension
41.62%
75.53%
Health insurance 0.03%
Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members
who return to work in positions that would typically be filled by an employee who contributes
to PSPRS or CORP. The Town was required by statute to contribute at the actuarially determined
rate of 27.67 percent for the PSPRS and 72.50 percent for the CORP. ACR contributions are
included in employer contributions presented above.
Page 78
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
The contributions to the pension plans for the year ended June 30, 2021 were:
Pension $3,165,578 $136,575
Contributions
PSPRS-Police CORP-Dispatchers
The Town’s pension contributions are paid by the same funds as the employee’s salary, with
the largest component coming from the General Fund.
Pension Liability. As of June 30, 2021, the Town reported the following liabilities.
Pension $28,732,945 $1,960,763
PSPRS-Police CORP-Dispatchers
Net Liability
The net pension liability was measured as of June 30, 2020. The total liability used to calculate
the net liability was determined by an actuarial valuation as of that date. The total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as
of that date. The total liabilities as of June 30, 20 20, reflect updated actuarial assumptions for
mortality rates and projected salary increases, and assume an investment rate of return of 7.3
percent.
Page 79
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Actuarial Assumptions. The significant actuarial assumptions used to measure the total
pension liability for both the PSPRS and CORP are as follows:
Pension
Actuarial valuation date June 30, 2020
Actuarial cost method Entry age normal
Investment rate of return 7.3%
Projected salary increases 3.5%
Inflation 2.5%
Cost-of-living adjustment 1.75%
Mortality rates PubS-2010 tables
Healthcare cost trend rate Not applicable
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2017.
The long-term expected rate of return on PSPRS and CORP plan investments was determined to be
7.30 percent using a building-block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of plan investment expenses and inflation) are developed for
each major asset class. The target allocation and best estimates of geometric real rates of return for
each major asset class are summarized in the following table:
Cash - Mellon 1%-0.60%
Core bonds 2%0.22%
Other assets (Capital Appreciation)7%5.61%
Diversifying strategies 12%3.22%
International equity 15%6.09%
Global private equity 18%8.42%
Private credit 22%5.31%
U.S. equity 23%4.93%
Total 100%
Expected Real
Long-term
Target
Allocation Rate of ReturnAsset Class
Page 80
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Changes in Net Liability
PSPRS - Police
Balances at June 30, 2020 $62,278,853 $36,587,342 $25,691,511
Changes for the year:
Service cost 1,418,920 - 1,418,920
Interest on the total liability 4,573,136 - 4,573,136
Differences between expected and actual
experience in the measurement of the
total liability 1,073,763 - 1,073,763
Changes of assumptions or other inputs - - -
Contributions - employer - 3,072,830 (3,072,830)
Contributions - employee - 563,652 (563,652)
Net investment income - 479,186 (479,186)
Benefit payments, including refunds of
employee contributions (2,104,146) (2,104,146) -
Administrative expense - (39,077) 39,077
Other - (52,206) 52,206
Net changes 4,961,673 1,920,239 3,041,434
Balances at June 30, 2021 $67,240,526 $38,507,581 $28,732,945
CORP - Dispatchers
Balances at June 30, 2020 $3,240,399 $1,378,623 $1,861,776
Changes for the year:
Service cost 22,224 - 22,224
Interest on the total liability 233,081 - 233,081
Differences between expected and actual
experience in the measurement of the
total liability 18,688 - 18,688
Changes of assumptions or other inputs - - -
Contributions - employer - 122,322 (122,322)
Contributions - employee - 16,244 (16,244)
Net investment income - 38,182 (38,182)
Benefit payments, including refunds of
employee contributions (139,459) (139,459) -
Administrative expense - (1,478) 1,478
Other - (264) 264
Net changes 134,534 35,547 98,987
Balances at June 30, 2021 $3,374,933 $1,414,170 $1,960,763
Liability Net Position Liability
Pension
Increase/(Decrease)
Total Pension Plan Fiduciary Net Pension
Plan Fiduciary
Net Position
Net Pension
Liability
Pension
Increase/(Decrease)
Total Pension
Liability
Page 81
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Discount Rate. On June 30, 2020, the discount rate used to measure the total pension liability
was 7.3 percent, unchanged from the discount rate used as of June 30, 2019.
The projection of cash flows used to determine the PSPRS and CORP discount rates assumed
that plan member contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between the actuarially determined
contribution rate and the member rate. Based on those assumptions, the plans’ 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 for these plans to determine the total pension
liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following
presents the Town’s net pension liability calculated using the discount rates noted above, as
well as what the net 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:
PSPRS-Police:
Net Pension Liability $38,783,065 $28,732,945 $20,623,908
CORP-Dispatchers:
Net Pension Liability $2,341,853 $1,960,763 $1,641,764
1% Decrease 1% IncreaseDiscount Rate
Current
8.3%6.3%7.3%
Plan Fiduciary Net Position. Detailed information about the plans’ fiduciary net position is
available in the separately issued PSPRS and CORP financial report. The report is available on
the PSPRS website at www.psprs.com.
Page 82
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
Expense. For the year ended June 30, 2021, the Town recognized the following as pension
expense:
Pension Expense $4,158,361 $250,867
PSPRS-Police CORP-Dispatchers
Deferred Outflows/Inflows of Resources. As of June 30, 2021, the Town reported deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
PSPRS-Police:
Differences between expected
and actual experience $1,068,186 $307,733
Changes of assumptions or other inputs 1,692,646 -
Net difference between projected and
actual earnings on plan investments 2,021,940 -
Contributions subsequent to the
measurement date 3,165,578 -
Total $7,948,350 $307,733
CORP-Dispatchers:
Differences between expected
and actual experience $9,344 $-
Changes of assumptions or other inputs - -
Net difference between projected and
actual earnings on plan investments 56,191 -
Contributions subsequent to the
measurement date 136,575 -
Total $202,110 $-
Inflows of
Deferred
Outflows of
Deferred
Resources Resources
Page 83
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 15 – PENSIONS (Continued)
The amounts of deferred outflows of resources resulting from contributions subsequent to the
measurement date as reported in the table above will be recognized as an adjustment of the net
pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
2022 $1,195,434 $17,377
2023 1,109,911 18,093
2024 973,185 17,595
2025 828,375 12,470
2026 368,134 -
Thereafter - -
Year Ending June 30:Pension Pension
CORP-DispatchersPSPRS-Police
NOTE 16 – PRIOR PERIOD ADJUSTMENT
The July 1, 2020 government-wide net position does not agree to the prior year financial
statements due to the addition of a roadway asset donated to the Town in fiscal year 2019-2020
from the Arizona Department of Transportation.
Net position, June 30, 2020, as previously reported $147,448,695
Capital asset, depreciable 20,120,430
Accumulated depreciation (3,018,065)
Net position, June 30, 2020, as restated $164,551,060
Governmental
Activities
Page 84
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Page 85
REQUIRED SUPPLEMENTARY INFORMATION
Page 86
(This page intentionally left blank)
Page 87
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 202 1
See notes to required supplementary information
Variance
Budgeted Amounts with Final
Original Final Actual Budget
REVENUES
Sales taxes $17,513,304 $17,513,304 $21,109,373 $3,596,069
Franchise taxes 615,000 615,000 722,700 107,700
Intergovernmental 20,732,407 20,732,407 25,937,729 5,205,322
Licenses, fees and permits 1,592,500 1,592,500 3,325,825 1,733,325
Fines, forfeitures and penalties 125,000 125,000 135,547 10,547
Charges for services 2,239,675 2,239,675 1,991,885 (247,790)
Investment income:
Interest 150,000 150,000 396,414 246,414
Net increase in fair value of investments - - (273,373) (273,373)
Other 262,500 262,500 282,189 19,689
Total Revenues 43,230,386 43,230,386 53,628,289 10,397,903
EXPENDITURES
General government:
General government 5,133,286 4,411,466 4,025,540 385,926
Town council 197,019 197,019 161,902 35,117
Town clerk 428,524 428,524 400,344 28,180
Town manager 1,026,534 1,026,534 944,417 82,117
Human Resources 457,347 457,347 437,350 19,997
Finance 832,888 832,888 836,613 (3,725)
Innovation and technology 3,658,698 3,658,698 3,309,146 349,552
Legal services 870,592 870,592 863,785 6,807
Community and economic development 2,779,661 2,779,661 2,696,251 83,410
Magistrate Court 864,826 864,826 802,123 62,703
Public works 3,679,963 3,679,963 3,133,426 546,537
Public safety:
Police 16,858,908 16,760,728 16,383,136 377,592
Transit:
Transit 1,202,128 1,202,128 930,687 271,441
Culture and recreation:
Parks and recreation 3,257,517 3,257,517 2,980,570 276,947
Capital outlay 738,000 1,558,000 1,627,486 (69,486)
Contingency 6,140,000 6,140,000 - 6,140,000
Total Expenditures 48,125,891 48,125,891 39,532,776 8,593,115
REVENUES OVER (UNDER) EXPENDITURES (4,895,505) (4,895,505) 14,095,513 18,991,018
OTHER FINANCING SOURCES (USES)
Transfers in 120,000 120,000 - (120,000)
Transfers out (2,589,520) (2,589,520) (2,586,519) 3,001
Total Other Financing Sources (Uses)(2,469,520) (2,469,520) (2,586,519) (116,999)
NET CHANGE IN FUND BALANCE (7,365,025) (7,365,025) 11,508,994 18,874,019
FUND BALANCE, Beginning of year - - 20,899,548 20,899,548
FUND BALANCE, End of year $(7,365,025) $(7,365,025) $32,408,542 $39,773,567
Page 88
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – COMMUNITY CENTER FUND
FOR THE YEAR ENDED JUNE 30, 202 1
Variance
Budgeted Amounts with Final
Original Final Actual Budget
REVENUES
Sales taxes $2,492,960 $2,492,960 $2,947,420 $454,460
Charges for services 4,479,650 4,479,650 4,508,524 28,874
Investment income:.
Interest 1,000 1,000 18,765 17,765
Net increase in fair value of investments - - (14,312) (14,312)
Other 125,000 125,000 127,060 2,060
Total Revenues 7,098,610 7,098,610 7,587,457 488,847
EXPENDITURES
Current:
Culture and recreation 5,474,582 5,474,582 5,383,094 91,488
Capital outlay 1,124,500 1,124,500 193,529 930,971
Debt service:
Principal retirement - - 33,937 (33,937)
Interest and fiscal charges - - 4,620 (4,620)
Contingency 578,611 578,611 - 578,611
Total Expenditures 7,177,693 7,177,693 5,615,180 1,562,513
REVENUES OVER (UNDER)
EXPENDITURES (79,083) (79,083) 1,972,277 2,051,360
OTHER FINANCING SOURCES (USES)
Transfers out (278,302) (278,302) (158,302) 120,000
NET CHANGE IN FUND BALANCE (357,385) (357,385) 1,813,975 2,171,360
FUND BALANCE, Beginning of year - - 862,818 862,818
FUND BALANCE, End of year $(357,385) $(357,385) $2,676,793 $3,034,178
See notes to required supplementary information
Page 89
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
ARIZONA STATE RETIREMENT SYSTEM
LAST SEVEN FISCAL YEARS
2021 2020 2019 2018 2017
Measurement date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016
Town's proportion of the net pension
(assets) liability 0.12%0.13%0.13%0.12%0.12%
Town's proportionate share of the net
pension (assets) liability 21,464,093$ 18,808,834$ 18,237,813$ 19,453,870$ 20,050,356$
Town's covered payroll 13,793,013$ 13,630,224$ 13,018,275$ 12,193,145$ 11,857,622$
Town's proportionate share of the net
pension (assets) liability as a percentage
of its covered payroll 155.62%137.99%140.09%159.55%169.09%
Plan fiduciary net position as a
percentage of the total pension liability 69.33%73.24%73.40%69.92%67.06%
2016 2015
Measurement date June 30, 2015 June 30, 2014
Town's proportion of the net pension
(assets) liability 0.12%0.11%
Town's proportionate share of the net
pension (assets) liability 18,575,537$ 16,642,712$
Town's covered payroll 11,826,486$ 11,086,887$
Town's proportionate share of the net
pension (assets) liability as a percentage
of its covered payroll 157.07%150.11%
Plan fiduciary net position as a
percentage of the total pension liability 68.35%69.49%
Note: The pension schedules in the required supplementary information are intended to show information for ten years,
and additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 90
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - POLICE
LAST SEVEN FISCAL YEARS
2021 2020 2019 2018
Measurement date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Total pension liability
Service cost $ 1,418,920 $ 1,552,240 $ 1,515,028 $ 1,638,736
Interest 4,573,136 4,264,774 3,922,057 3,615,210
Changes of benefit terms - - - 435,327
1,073,763 (303,721) 136,020 247,905
Changes of assumptions or other inputs - 1,627,934 - 747,786
(2,104,146) (1,884,430) (1,588,615) (2,061,668)
Net change in total pension liability 4,961,673 5,256,797 3,984,490 4,623,296
Total pension liability—beginning 62,278,853 57,022,056 53,037,566 48,414,270
Total pension liability—ending $ 67,240,526 $ 62,278,853 $ 57,022,056 $ 53,037,566
Plan fiduciary net position
Contributions—employer $ 3,072,830 $ 2,624,761 $ 1,278,293 $ 1,811,735
Contributions—employee 563,652 575,136 622,233 905,024
Net investment income 479,186 1,843,370 2,159,685 3,228,386
(2,104,146) (1,884,430) (1,588,615) (2,061,668)
Administrative expense (39,077) (33,037) (33,570) (28,966)
Other (52,206) 31,984 107,852 19,066
Net change in plan fiduciary net position 1,920,239 3,157,784 2,545,878 3,873,577
Plan fiduciary net position—beginning 36,587,342 33,429,558 30,883,680 27,010,103
Plan fiduciary net position—ending $ 38,507,581 $ 36,587,342 $ 33,429,558 $ 30,883,680
Net pension (assets) liability—ending $ 28,732,945 $ 25,691,511 $ 23,592,498 $ 22,153,886
57.27%58.75%58.63%58.23%
Covered payroll $ 6,672,512 $ 6,942,593 $ 7,209,721 $ 7,199,177
430.62%370.06%327.23%307.73%
Differences between expected and actual
experience
Benefit payments, including refunds of
employee contributions
Benefit payments, including refunds of
employee contributions
Plan fiduciary net position as a
percentage of the total pension liability
Net pension (assets) liability as a
percentage of covered payroll
Note: The pension schedules in the required supplementary information are intended to show information for ten years,
and additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 91
2017 2016 2015
June 30, 2016 June 30, 2015 June 30, 2014
$ 1,363,768 $ 1,224,807 $ 1,157,832
3,185,633 2,842,514 2,408,825
3,164,555 - 444,387
(548,533) 1,312,293 (356,776)
1,902,904 - 3,014,125
(1,106,968) (1,049,346) (1,304,993)
7,961,359 4,330,268 5,363,400
40,452,911 36,122,643 30,759,243
$ 48,414,270 $ 40,452,911 $ 36,122,643
$ 1,505,274 $ 1,669,125 $ 1,211,218
840,020 794,478 698,036
154,181 874,562 2,774,126
(1,106,968) (1,049,346) (1,304,993)
(22,586) (21,722) (22,342)
38,225 93,803 (93,142)
1,408,146 2,360,900 3,262,903
25,601,957 23,241,057 19,978,154
$ 27,010,103 $ 25,601,957 $ 23,241,057
$ 21,404,167 $ 14,850,954 $ 12,881,586
55.79%63.29%64.34%
$ 7,355,092 $ 7,004,292 $ 6,021,786
291.01%212.03%213.92%
Page 92
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - DISPATCHERS
LAST SEVEN FISCAL YEARS
2021 2020 2019 2018
Measurement date June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
Total pension liability
Service cost $ 22,224 $ 30,922 $ 34,542 $ 32,541
Interest 233,081 215,182 223,773 185,568
Changes of benefit terms - - (175,686) 395,457
18,688 124,217 (73,061) (12,524)
Changes of assumptions or other inputs - 61,495 - 85,035
(139,459) (136,724) (141,910) (132,788)
Net change in total pension liability 134,534 295,092 (132,342) 553,289
Total pension liability—beginning 3,240,399 2,945,307 3,077,649 2,524,360
Total pension liability—ending $ 3,374,933 $ 3,240,399 $ 2,945,307 $ 3,077,649
Plan fiduciary net position
Contributions—employer $ 122,322 $ 120,338 $ 87,566 $ 77,331
Contributions—employee 16,244 16,099 15,976 18,502
Net investment income 38,182 71,209 89,317 136,094
(139,459) (136,724) (141,910) (132,788)
Administrative expense (1,478) (1,971) (2,051) (1,591)
Other (264) - (24) (8)
Net change in plan fiduciary net position 35,547 68,951 48,874 97,540
Plan fiduciary net position—beginning 1,378,623 1,309,672 1,260,798 1,163,258
Plan fiduciary net position—ending $ 1,414,170 $ 1,378,623 $ 1,309,672 $ 1,260,798
Net pension (assets) liability—ending $ 1,960,763 $ 1,861,776 $ 1,635,635 $ 1,816,851
41.90%42.54%44.47%40.97%
Covered payroll $ 210,542 $ 202,262 $ 201,687 $ 233,934
931.29%920.48%810.98%776.65%
Differences between expected and actual
experience
Benefit payments, including refunds of
employee contributions
Benefit payments, including refunds of
employee contributions
Plan fiduciary net position as a
percentage of the total pension liability
Net pension (assets) liability as a
percentage of covered payroll
NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and
additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 93
2017 2016 2015
June 30, 2016 June 30, 2015 June 30, 2014
$ 32,257 $ 52,754 $ 53,985
182,053 174,403 154,443
14,504 - 29,545
(12,392) 14,554 (48,767)
64,514 - 174,536
(119,180) (148,851) (68,874)
161,756 92,860 294,868
2,362,604 2,269,744 1,974,876
$ 2,524,360 $ 2,362,604 $ 2,269,744
$ 52,583 $ 64,005 $ 63,179
18,982 30,272 32,699
7,237 45,101 146,441
(119,180) (148,851) (68,874)
(1,423) (1,490) (1,151)
(8) (926) -
(41,809) (11,889) 172,294
1,205,067 1,216,956 1,044,662
$ 1,163,258 $ 1,205,067 $ 1,216,956
$ 1,361,102 $ 1,157,537 $ 1,052,788
46.08%51.01%53.62%
$ 245,274 $ 380,303 $ 387,839
554.93%304.37%271.45%
Page 94
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF PENSION CONTRIBUTIONS - ALL PENSION PLANS
LAST SEVEN FISCAL YEARS
2021 2020 2019 2018
Arizona State Retirement System:
Actuarially determined contribution 1,574,068$ 1,579,300$ 1,523,859$ 1,418,992$
Contributions in relation to the
actuarially determined contribution 1,574,068 1,579,300 1,523,859 1,418,992
Contribution deficiency (excess)- - - -
Town's covered payroll 13,511,313$ 13,793,013$ 13,630,224$ 13,018,275$
Contributions as a percentage
of covered payroll 11.65%11.45%11.18%10.90%
Public Safety Personnel Retirement System - Police:
Actuarially determined contribution 2,572,830$ 2,552,903$ 2,548,626$ 2,485,191$
Contributions in relation to the
actuarially determined contribution 3,072,830 3,052,903 2,548,626 2,485,191
Contribution deficiency (excess)(500,000) (500,000) - -
Town's covered payroll 6,181,716$ 6,672,512$ 6,942,593$ 7,209,721$
Contributions as a percentage
of covered payroll 41.62%38.26%36.71%34.47%
Public Safety Personnel Retirement System - Dispatchers
Actuarially determined contribution 136,575$ 126,199$ 124,108$ 87,996$
Contributions in relation to the
actuarially determined contribution 136,575 126,199 124,108 87,996
Contribution deficiency (excess)- - - -
Town's covered payroll 180,822$ 210,542$ 202,262$ 201,687$
Contributions as a percentage
of covered payroll 75.53%59.94%61.36%43.63%
NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and
additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 95
2017 2016 2015
1,314,421$ 1,286,552$ 1,207,362$
1,314,421 1,286,552 1,207,362
- - -
12,193,145$ 11,857,622$ 11,826,486$
10.78%10.85%10.21%
1,679,568$ 1,554,131$ 1,354,630$
1,679,568 1,554,131 1,354,630
- - -
7,199,177$ 7,355,092$ 7,004,292$
23.33%21.13%19.34%
77,830$ 54,083$ 64,005$
77,830 54,083 64,005
- - -
233,934$ 245,274$ 380,303$
33.27%22.05%16.83%
Page 96
TOWN OF ORO VALLEY, ARIZONA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 202 1
NOTE 1 – BUDGETARY BASIS OF ACCOUNTING
The Town budget is prepared on a basis consistent with accounting principles generally
accepted in the United States of America.
NOTE 2 – PENSION SCHEDULES
Actuarial Assumptions for Valuations Performed. The information presented in the
required supplementary schedules was determined as part of the actuarial valuations at the
dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used
are disclosed in the notes to the financial statements.
Factors that Affect Trends. The actuarial assumptions used in the June 30, 2019, valuation
for ASRS were based on the results of an actuarial experience study for the five-year period
ended June 30, 2016. The purpose of the experience study was to review actual experience in
relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study
recommended changes which were applied to the June 30, 2017, actuarial valuation.
The actuarial assumptions used in the June 30, 2019, valuation for PSPRS were based on the
results of an actuarial experience study for the 5-year period ended June 30, 2017. The
purpose of the experience study was to review actual experience in relation to the actuarial
assumptions in effect. The PSPRS Board adopted the experience study recommended
changes which were applied to the June 30, 2018 actuarial valuation. The total liabilities as
of June 30, 2020 reflect an assumed investment rate of return of 7.3 percent and updated
mortality rates.
Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for
funding permanent pension benefit increases and increased employee pension contribution
rates were unconstitutional or a breach of contract because those provisions apply to
individuals who were members as of the law’s effective date. As a result, the PSPRS changed
benefit terms to reflect the prior mechanism for funding permanent benefit increases for those
members and revised actuarial assumptions to explicitly value future permanent benefit
increases. PSPRS also reduced those members’ employee contribution rates. These changes
are reflected in the plan’s or plans’ pension liabilities for fiscal year 2015 (measurement date
2014) for members who were retired as of the law’s effective date and fiscal year 2018
(measurement date 2017) for members who retired or will retire after the law’s effective date.
These changes also increased the PSPRS-required contributions beginning in fiscal year 2016
for members who were retired as of the law’s effective date. These changes increased the
PSPRS-required contributions beginning in fiscal year 2019 for members who retired or will
retire after the law’s effective date.
Page 97
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Page 98
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Page 99
GOVERNMENTAL FUNDS
Page 100
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
JUNE 30, 2021
ASSETS
Cash and investments $1,292,699 $169,587 $2,533,685 $3,995,971
Accounts receivable 16,588 - - 16,588
Interest receivable 509 43 15,743 16,295
Intergovernmental receivable 337,610 - - 337,610
Total Assets $1,647,406 $169,630 $2,549,428 $4,366,464
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $137,618 $- $21,400 $159,018
Unearned revenue - - 46,696 46,696
Total Liabilities 137,618 - 68,096 205,714
Fund balances:
Restricted 1,509,788 169,630 2,464,287 4,143,705
Committed - - 17,045 17,045
Total Fund Balances 1,509,788 169,630 2,481,332 4,160,750
Total Liabilities and Fund Balances $1,647,406 $169,630 $2,549,428 $4,366,464
Special Revenue Debt Service Capital Projects Funds
Total Non-Major
Governmental
Page 101
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
- ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
YEAR ENDED JUNE 30, 2021
REVENUES
Development impact fees $- $- $1,256,426 $1,256,426
Charges for Services 713 713
Special assessments - 172,640 - 172,640
Intergovernmental 3,731,160 43,773 - 3,774,933
Licenses, fees and permits 37,108 - - 37,108
Fines, forfeitures and penalties 97,784 - - 97,784
Investment income:
Interest 15,966 253 47,166 63,385
Net decrease in fair value of investments (12,334) - (60,172) (72,506)
Other 7,542 97,923 - 105,465
Total Revenues 3,877,226 314,589 1,244,133 5,435,948
EXPENDITURES
Current:
Public safety 55,063 - - 55,063
Highway and streets 1,795,203 - - 1,795,203
Capital outlay 1,580,328 - 2,528,060 4,108,388
Debt service:
Principal retirement - 1,112,090 - 1,112,090
Interest and fiscal charges - 285,631 - 285,631
Total Expenditures 3,430,594 1,397,721 2,528,060 7,356,375
REVENUES OVER/(UNDER) EXPENDITURES 446,632 (1,083,132) (1,283,927) (1,920,427)
OTHER FINANCING SOURCES/(USES)
Transfers in/(out)- 1,076,200 (100,000) 976,200
Total Other Financing Sources (Uses)- 1,076,200 (100,000) 976,200
NET CHANGE IN FUND BALANCES 446,632 (6,932) (1,383,927) (944,227)
FUND BALANCES, Beginning of year 1,063,156 176,562 3,865,259 5,104,977
FUND BALANCES, End of year $1,509,788 $169,630 $2,481,332 $4,160,750
Special Revenue Debt Service Capital Projects Funds
Total Non-Major
Governmental
Page 102
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Page 103
SPECIAL REVENUE FUNDS
The Special Revenue Funds account for the proceeds of specific revenue sources, other than major
capital projects, that are legally restricted to expenditures for specified purposes.
Highway User Revenue – accounts for the Town’s share of motor fuel tax revenues.
State Seizures and Forfeitures – accounts for state police seizures and forfeitures received by the
Town.
Federal Seizures and Forfeitures – accounts for federal police seizures and forfeitures received
by the Town.
Page 104
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2021
State Seizures
ASSETS
Cash and investments $1,024,982 $237,235 $30,482 $1,292,699
Accounts receivable 16,588 - - 16,588
Interest receivable 509 - - 509
Intergovernmental receivable 337,610 - - 337,610
Total Assets $1,379,689 $237,235 $30,482 $1,647,406
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $136,711 $- $907 $137,618
Total Liabilities 136,711 - 907 137,618
Fund balances:
Restricted 1,242,978 237,235 29,575 1,509,788
Total Fund Balances 1,242,978 237,235 29,575 1,509,788
Total Liabilities and Fund Balances $1,379,689 $237,235 $30,482 $1,647,406
Federal Seizures
HURF and Forfeitures and Forfeitures Totals
Page 105
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
- NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2021
REVENUES
Intergovernmental $3,731,160 $- $- $3,731,160
Licenses, fees and permits 37,108 - - 37,108
Fines, forfeitures and penalties - 53,798 43,986 97,784
Investment income:
Interest 13,356 2,077 533 15,966
Net decrease in fair value of investments (12,334) - - (12,334)
Other 7,542 - - 7,542
Total Revenues 3,776,832 55,875 44,519 3,877,226
EXPENDITURES
Current:
Public safety - 22,142 32,921 55,063
Highway and streets 1,795,203 - - 1,795,203
Capital outlay 1,557,613 18,955 3,760 1,580,328
Total Expenditures 3,352,816 41,097 36,681 3,430,594
NET CHANGE IN FUND BALANCES 424,016 14,778 7,838 446,632
FUND BALANCES, Beginning of year 818,962 222,457 21,737 1,063,156
FUND BALANCES, End of year $1,242,978 $237,235 $29,575 $1,509,788
State Seizures Federal Seizures
HURF and Forfeitures and Forfeitures Totals
Page 106
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2021
Variance
with
Actual Budget
REVENUES
Intergovernmental $3,668,929 $3,731,160 $62,231
Licenses, fees and permits 25,000 37,108 12,108
Fines, forfeitures and penalties - - -
Investment income:
Interest 5,000 13,356 8,356
Net decrease in fair value of investments - (12,334) (12,334)
Other 2,000 7,542 5,542
Total Revenues 3,700,929 3,776,832 75,903
EXPENDITURES
Current:
Public safety - - -
Highway and streets 2,035,713 1,795,203 240,510
Capital outlay 1,830,500 1,557,613 272,887
Contingency 200,000 - 200,000
Total Expenditures 4,066,213 3,352,816 713,397
NET CHANGE IN FUND BALANCE (365,284) 424,016 789,300
FUND BALANCE, Beginning of year - 818,962 818,962
FUND BALANCE, End of year $(365,284) $1,242,978 $1,608,262
HURF
Budget
Page 107
Variance
with
Actual Budget Actual
$- $- $- $- $- $-
- - - - - -
275,000 53,798 (221,202) 50,000 43,986 (6,014)
2,000 2,077 77 - 533 533
- - - - - -
- - - - - -
277,000 55,875 (221,125) 50,000 44,519 (5,481)
95,789 22,142 73,647 - 32,921 (32,921)
- - - - - -
- 18,955 (18,955) - 3,760 (3,760)
181,211 - 181,211 50,000 - 50,000
277,000 41,097 235,903 50,000 36,681 13,319
- 14,778 14,778 - 7,838 7,838
- 222,457 222,457 - 21,737 21,737
$- $237,235 $237,235 $- $29,575 $29,575
State Seizures and Forfeitures Federal Seizures and Forfeitures
Budget Budget
Variance
with
Budget
(Continued)
Page 108
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
- BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2021
Variance
with
Actual Budget
REVENUES
Intergovernmental $3,668,929 $3,731,160 $62,231
Licenses, fees and permits 25,000 37,108 12,108
Fines, forfeitures and penalties 325,000 97,784 (227,216)
Investment income:
Interest 7,000 15,966 8,966
Net decrease in fair value of investments - (12,334) (12,334)
Other 2,000 7,542 5,542
Total Revenues 4,027,929 3,877,226 (150,703)
EXPENDITURES
Current:
Public safety 95,789 55,063 40,726
Highway and streets 2,035,713 1,795,203 240,510
Capital outlay 1,830,500 1,580,328 250,172
Contingency 431,211 - 431,211
Total Expenditures 4,393,213 3,430,594 962,619
NET CHANGE IN FUND BALANCE (365,284) 446,632 811,916
FUND BALANCE, Beginning of year - 1,063,156 1,063,156
FUND BALANCE, End of year $(365,284) $1,509,788 $1,875,072
Totals
Budget
Page 109
MUNICIPAL DEBT SERVICE FUNDS
Municipal Debt Service - to account for the payments of debt service on the Series 2010 Excise
Tax Revenue Obligations, the Series 2012 Excise Tax Revenue Obligations, the Series 2015
Excise Tax Revenue Refunding Obligations, the Series 2016 Excise Tax Revenue Obligations, the
Series 2017 Refunding Excise Tax Revenue Obligations, and the Series 2018 Excise Tax Revenue
Obligations.
Oracle Road Debt Service – to account for the special assessment collections and payment of the
outstanding Oracle Road bond issue.
Page 110
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2021
ASSETS
Cash and investments $165,436 $4,151 $169,587
Interest receivable - 43 43
Total Assets $165,436 $4,194 $169,630
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $- $- $-
Total Liabilities - - -
Fund balances:
Restricted 165,436 4,194 169,630
Total Fund Balances 165,436 4,194 169,630
Total Liabilities and Fund Balances $165,436 $4,194 $169,630
Debt Service Debt Service Totals
Municipal Oracle Road
Page 111
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Totals
REVENUES
Special assessments $- $172,640 $172,640
Intergovernmental 43,773 - 43,773
Investment income:
Interest 89 164 253
Other 97,536 387 97,923
Total Revenues 141,398 173,191 314,589
EXPENDITURES
Debt service:
Principal retirement 942,090 170,000 1,112,090
Interest and fiscal charges 279,793 5,838 285,631
Total Expenditures 1,221,883 175,838 1,397,721
REVENUES OVER (UNDER)
EXPENDITURES (1,080,485) (2,647) (1,083,132)
OTHER FINANCING SOURCES
Transfers in 1,076,200 - 1,076,200
NET CHANGE IN FUND BALANCE (4,285) (2,647) (6,932)
FUND BALANCE, Beginning of year 169,721 6,841 176,562
FUND BALANCE, End of year $165,436 $4,194 $169,630
Debt Service Debt Service
Municipal Oracle Road
Page 112
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
Variance
with
Actual Budget
REVENUES
Special assessments $- $- $-
Intergovernmental 39,245 43,773 4,528
Investment income:
Interest 5,000 89 (4,911)
Other 100,000 97,536 (2,464)
Total Revenues 144,245 141,398 (2,847)
EXPENDITURES
Debt service:
Principal retirement 942,090 942,090 -
Interest and fiscal charges 283,355 279,793 3,562
Contingency 100,000 - 100,000
Total Expenditures 1,325,445 1,221,883 103,562
REVENUES OVER (UNDER)
EXPENDITURES (1,181,200) (1,080,485) 100,715
OTHER FINANCING SOURCES
Transfers in 1,076,200 1,076,200 -
NET CHANGE IN FUND BALANCE (105,000) (4,285) 100,715
FUND BALANCE, Beginning of year - 169,721 169,721
FUND BALANCE, End of year $(105,000) $165,436 $270,436
Municipal Debt Service
Budget
Page 113
Variance Variance
with with
Actual Budget Actual Budget
$174,038 172,640 $(1,398) $174,038 $172,640 $(1,398)
- - - 39,245 43,773 4,528
- 164 164 5,000 253 (4,747)
- 387 387 100,000 97,923 (2,077)
174,038 173,191 (847) 318,283 314,589 (3,694)
170,000 170,000 - 1,112,090 1,112,090 -
7,038 5,838 1,200 290,393 285,631 4,762
2,678 - 2,678 102,678 - 102,678
179,716 175,838 3,878 1,505,161 1,397,721 107,440
(5,678) (2,647) 3,031 (1,186,878) (1,083,132) 103,746
3,000 - - 1,079,200 1,076,200 -
(2,678) (2,647) 3,031 (107,678) (6,932) 103,746
- 6,841 6,841 - 176,562 176,562
$(2,678) $4,194 $9,872 $(107,678) $169,630 $280,308
Oracle Road Debt Service Totals
Budget Budget
Page 114
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Page 115
CAPITAL PROJECTS FUNDS
Capital Projects Funds are created to account for the purchase or construction of major capital
facilities which are not financed by the general, enterprise, or special revenue funds.
Townwide Roadway Development Impact Fees – to account for the collection and capital
expenditures of the Townwide Roadway Development Impact Fees.
General Impact Fees – accounts for the collection of development impact fees charged for new
residential and nonresidential growth to be used for future general government facilities, vehicles,
equipment, and other necessary general government infrastructure needed as a result of new
growth.
Townwide Facilities Projects – accounts for revenues dedicated to improvements to Town parks.
General Government CIP – to account for governmental capital asset projects.
PAG/RTA - to account for revenues dedicated to Town improvements funded through Pima
Association of Governments and the Regional Transportation Authority.
Energy Efficiency Project – to account for bond proceeds to fund energy improvements at the
Oro Valley Community Center.
Page 116
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2021
ASSETS
Cash and investments $1,980,925 $535,748 $17,012 $2,533,685
Interest receivable 13,873 1,837 33 15,743
Total Assets $1,994,798 $537,585 $17,045 $2,549,428
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $- $21,400 $- $21,400
Unearned revenue 15,920 30,776 - 46,696
Total Liabilities 15,920 52,176 - 68,096
Fund balances:
Restricted 1,978,878 485,409 - 2,464,287
Committed - - 17,045 17,045
Total Fund Balances 1,978,878 485,409 17,045 2,481,332
Total Liabilities and Fund Balances $1,994,798 $537,585 $17,045 $2,549,428
Impact Fees Fees Projects Totals
Roadway
Development
Townwide
TownwideGeneral
Impact Facilities
Page 117
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2021
REVENUES
Development impact fees $667,111 $589,315 $- $1,256,426
Charges for Services - - 713 713
Investment income:
Interest 38,993 7,941 232 47,166
Net decrease in fair value of investments (46,062) (14,110) - (60,172)
Total Revenues 660,042 583,146 945 1,244,133
EXPENDITURES
Capital outlay 1,647,352 880,708 - 2,528,060
Total Expenditures 1,647,352 880,708 - 2,528,060
REVENUES OVER (UNDER)
EXPENDITURES (987,310) (297,562) 945 (1,283,927)
OTHER FINANCING USES
Transfers out - (100,000) - (100,000)
NET CHANGE IN FUND BALANCES (987,310) (397,562) 945 (1,383,927)
FUND BALANCES, Beginning of year 2,966,188 882,971 16,100 3,865,259
FUND BALANCES, End of year $1,978,878 $485,409 $17,045 $2,481,332
Townwide
General Townwide
Impact Facilities
Roadway
Impact Fees Fees Projects Totals
Development
Page 118
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2021
Variance
with
Actual Budget
REVENUES
Development impact fees $314,320 $667,111 $352,791
Intergovernmental - - -
Charges for services - - -
Investment income:
Interest 30,000 38,993 8,993
Net decrease in fair value of investments - (46,062) (46,062)
Other - - -
Total Revenues 344,320 660,042 315,722
EXPENDITURES
Capital outlay 1,810,000 1,647,352 162,648
Contingency 300,000 - 300,000
Total Expenditures 2,110,000 1,647,352 462,648
REVENUES OVER (UNDER)
EXPENDITURES (1,765,680) (987,310) 778,370
OTHER FINANCING SOURCES (USES)
Transfers in (out)- - -
NET CHANGE IN FUND BALANCE (1,765,680) (987,310) 778,370
FUND BALANCE, Beginning of year - 2,966,188 2,966,188
FUND BALANCE, End of year $(1,765,680) $1,978,878 $3,744,558
Budget
Townwide Roadway Development Impact Fees
Page 119
Variance Variance
with with
Actual Budget Actual Budget
$405,579 $589,315 $183,736 $- $- $-
- - - - - -
- - - - 713 713
5,000 7,941 2,941 - 232 232
- (14,110) (14,110) - - -
- - - - - -
410,579 583,146 172,567 - 945 945
705,000 880,708 (175,708) - - -
391,035 - 391,035 16,004 - 16,004
1,096,035 880,708 215,327 16,004 - 16,004
(685,456) (297,562) 387,894 (16,004) 945 16,949
(100,000) (100,000) - - - -
(785,456) (397,562) 387,894 (16,004) 945 16,949
- 882,971 882,971 - 16,100 16,100
$(785,456) $485,409 $1,270,865 $(16,004) $17,045 $33,049
General Impact Fees
Budget
Townwide Facilities Projects
Budget
(Continued)
Page 120
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - ALL CAPITAL PROJECTS FUNDS (Continued)
YEAR ENDED JUNE 30, 2021
Variance
with
Actual Budget
REVENUES
Development impact fees $- $- $-
Intergovernmental 117,000 119,868 2,868
Charges for services - 633,012 633,012
Investment income:
Interest - 36,174 36,174
Net increase/(decrease) in fair value of investments - (34,730) (34,730)
Other 883,010 293,507 (589,503)
Total Revenues 1,000,010 1,047,831 47,821
EXPENDITURES
Capital outlay 4,744,666 2,725,682 2,018,984
Contingency - - -
Total Expenditures 4,744,666 2,725,682 2,018,984
REVENUES OVER (UNDER)
EXPENDITURES (3,744,656) (1,677,851) 2,066,805
OTHER FINANCING SOURCES (USES)
Transfers in (out)1,771,143 1,771,143 -
NET CHANGE IN FUND BALANCE (1,973,513) 93,292 2,066,805
FUND BALANCE, Beginning of year - 2,410,736 2,410,736
FUND BALANCE, End of year $(1,973,513) $2,504,028 $4,477,541
General Government CIP
Budget
Page 121
Variance Variance
with with
Actual Budget Actual Budget
$- $- $- $719,899 $1,256,426 $536,527
1,875,000 1,947,977 72,977 1,992,000 2,067,845 75,845
28,125 28,125 - 28,125 661,850 633,725
- 9,245 9,245 35,000 92,585 57,585
- 3,311 3,311 - (91,591) (91,591)
- 216,069 216,069 883,010 509,576 (373,434)
1,903,125 2,204,727 301,602 3,658,034 4,496,691 838,657
2,365,000 1,338,628 1,026,372 9,624,666 6,592,370 3,032,296
132,386 - 132,386 839,425 - 839,425
2,497,386 1,338,628 1,158,758 10,464,091 6,592,370 3,871,721
(594,261) 866,099 1,460,360 (6,806,057) (2,095,679) 4,710,378
- - - 1,671,143 1,671,143 -
(594,261) 866,099 1,460,360 (5,134,914) (424,536) 4,710,378
- 382,519 382,519 - 6,658,514 6,658,514
$(594,261) $1,248,618 $1,842,879 $(5,134,914) $6,233,978 $11,368,892
PAG/RTA Totals
Budget Budget
Page 122
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Page 123
STATISTICAL SECTION
The statistical section presents financial statement trends as well as detailed financial and
operational information not available elsewhere in the report. The statistical section is intended to
enhance the reader’s understanding of the information presented in the financial statements, notes
to the financial statements, and other supplementary information presented in this report. The
statistical section is comprised of the five categories of statistical information presented below.
Financial Trends
These schedules contain information on financial trends to help the reader understand how
the Town’s financial position and financial activities have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the
Town’s ability to generate property revenue.
Debt Capacity
These schedules present information to help the reader evaluate the Town’s current levels of
outstanding debt as well as assess the Town’s ability to make debt payments and/or issue
additional debt in the future.
Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the Town’s financial activities take place and to help
make comparisons with other municipalities.
Operating Information
These schedules contain information about the Town’s operations and various resources to
help the reader draw conclusions as to how the Town’s financial information relates to the
services provided by the Town.
Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved
by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal
year 2014-15 be based upon property values limited to five percent in annual growth. The
aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after apply ing
assessment ratios based on the use of a property), including property values with a growth limit, is
currently referred to as net limited assessed value and formerly as primary assessed value. In
accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year
2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash
assessed value and formerly as secondary assessed value. This remains the value utilized for
determining debt capacity limits.
Page 124
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Page 125
TOWN OF ORO VALLEY, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
2021 2020 2019 2018 2017
Governmental Activities:
Net investment in capital assets $184,355,212 $152,604,355 $141,506,384 $137,311,856 $133,414,691
Restricted 5,392,323 6,601,283 5,752,355 4,424,244 6,006,584
Unrestricted 335,300 (11,756,943) (10,619,492) (11,583,669) (15,397,688)
Total governmental activities net position $190,082,835 $147,448,695 $136,639,247 $130,152,431 $124,023,587
Business-type Activities:
Net investment in capital assets $84,049,866 $76,933,346 $73,170,068 $69,036,006 $66,755,370
Unrestricted 27,721,215 25,077,357 23,499,030 21,397,377 18,721,247
Total business-type activities net position $111,771,081 $102,010,703 $96,669,098 $90,433,383 $85,476,617
Primary Government:
Net investment in capital assets $268,405,078 $229,537,701 $214,676,452 $206,347,862 $200,170,061
Restricted 5,392,323 6,601,283 5,752,355 4,424,244 6,006,584
Unrestricted 28,056,515 13,320,414 12,879,538 9,813,708 3,323,559
Total primary government net position $301,853,916 $249,459,398 $233,308,345 $220,585,814 $209,500,204
2016 2015 2014 2013 2012
Governmental Activities:
Net investment in capital assets $132,419,826 $133,800,218 $133,714,821 $134,512,094 $135,336,862
Restricted 4,653,905 3,599,966 4,555,138 3,730,312 11,454,390
Unrestricted (10,883,206) (9,493,907) 18,430,146 18,901,112 10,808,596
Total governmental activities net position $126,190,525 $127,906,277 $156,700,105 $157,143,518 $157,599,848
Business-type Activities:
Net investment in capital assets $61,261,271 $54,858,448 $52,775,561 $48,802,267 $45,669,488
Unrestricted 19,504,748 20,092,694 21,541,202 19,501,676 19,067,780
Total business-type activities net position $80,766,019 $74,951,142 $74,316,763 $68,303,943 $64,737,268
Primary Government:
Net investment in capital assets $193,681,097 $188,658,666 $186,490,382 $183,314,361 $181,006,350
Restricted 4,653,905 3,599,966 4,555,138 3,730,312 11,454,390
Unrestricted 8,621,542 10,598,787 39,971,348 38,402,788 29,876,376
Total primary government net position $206,956,544 $202,857,419 $231,016,868 $225,447,461 $222,337,116
Source: Town of Oro Valley Finance Department
Page 126
TOWN OF ORO VALLEY, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Expenses
Governmental activities:
General government $19,633,975 $17,210,855 $14,727,150 $12,639,867 $12,130,905 $11,888,794 $11,533,702 $10,990,007 $9,861,131 $9,961,376
Public safety 18,291,873 19,416,010 18,958,436 17,683,197 22,251,172 16,123,500 16,587,168 13,814,914 12,770,224 12,349,948
Highways and streets 11,629,477 10,201,832 10,791,469 7,505,589 9,417,459 9,089,318 9,400,140 8,754,110 9,255,004 9,339,062
Transit 939,341 1,106,750 1,125,490 1,505,341 1,533,258 1,432,910 1,404,646 1,275,093 - -
Culture and recreation 9,396,975 9,551,170 9,699,357 10,111,731 10,204,276 9,695,639 4,572,490 3,399,623 2,783,633 3,227,895
Interest on long-term debt 290,251 362,651 355,545 350,404 511,502 494,732 439,027 656,260 522,917 654,262
Total governmental activities expenses 60,181,892 57,849,268 55,657,447 49,796,129 56,048,572 48,724,893 43,937,173 38,890,007 35,192,909 35,532,543
Business-type activities:
Water 16,157,523 15,953,546 15,089,673 15,568,288 14,753,418 14,406,074 13,608,931 13,572,677 13,047,373 11,984,829
Stormwater 1,368,001 1,444,865 1,291,490 1,190,898 1,115,494 917,898 854,510 749,038 983,975 636,966
Total business-type activities expenses 17,525,524 17,398,411 16,381,163 16,759,186 15,868,912 15,323,972 14,463,441 14,321,715 14,031,348 12,621,795
Total primary government expenses $77,707,416 $75,247,679 $72,038,610 $66,555,315 $71,917,484 $64,048,865 $58,400,614 $53,211,722 $49,224,257 $48,154,338
Program Revenues
Governmental activities:
Charges for services
General government $6,305,121 $5,205,012 $4,920,132 $5,084,396 $4,901,504 $4,096,927 $3,516,359 $3,978,117 $3,740,046 $3,079,526
Public safety 340,430 157,312 173,488 128,651 138,075 168,808 29,097 35,976 45,346 33,109
Highways and streets 739,936 1,675,929 754,388 1,039,542 1,052,167 764,397 496,098 546,066 1,052,581 329,420
Transit 463 110,309 138,125 119,536 100,052 88,684 72,783 71,078 - -
Culture and recreation 5,236,021 4,391,639 5,014,018 5,096,804 4,611,576 4,373,693 1,108,734 435,354 169,965 82,832
Operating grants and contributions 8,171,190 3,621,830 4,669,814 4,949,928 4,664,197 5,503,530 5,070,396 4,706,844 5,318,097 5,247,844
Capital grants and contributions 25,566,365 16,338,347 8,302,441 5,529,831 6,749,407 3,602,656 2,456,727 2,919,641 2,920,335 7,107,063
Total governmental activities program revenues 46,359,527 31,500,378 23,972,406 21,948,688 22,216,978 18,598,695 12,750,194 12,693,076 13,246,370 15,879,794
Business-type activities:
Charges for services
Water 18,199,075 20,218,758 17,519,158 19,455,685 18,158,385 16,739,580 16,088,681 19,286,794 16,732,600 15,817,345
Stormwater 1,472,363 1,443,616 1,426,246 1,386,278 1,314,787 828,258 771,594 759,428 813,400 752,212
Operating grants and contributions - - - - - 35,000.00 - - - -
Capital grants and contributions 7,603,672 169,194 2,899,213 870,920 1,097,285 3,334,372 1,979,037 179,675 48,871 245,607
Total business-type activities program revenues 27,275,110 21,831,568 21,844,617 21,712,883 20,570,457 20,937,210 18,839,312 20,225,897 17,594,871 16,815,164
Total primary government program revenues $73,634,637 $53,331,946 $45,817,023 $43,661,571 $42,787,435 $39,535,905 $31,589,506 $32,918,973 $30,841,241 $32,694,958
Net (expense)/revenue:
Governmental activities $(13,822,365) $(26,348,890) $(31,685,041) $(27,847,441) $(33,831,594) $(30,126,198) $(31,186,979) $(26,196,931) $(21,946,539) $(19,652,749)
Business-type activities 9,749,586 4,433,157 5,463,454 4,953,697 4,701,545 5,613,238 4,375,871 5,904,182 3,563,523 4,193,369
Total primary government net expense $(4,072,779) $(21,915,733) $(26,221,587) $(22,893,744) $(29,130,049) $(24,512,960) $(26,811,108) $(20,292,749) $(18,383,016) $(15,459,380)
Page 127
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Sales $24,056,793 $22,757,403 $22,924,400 $21,664,398 $19,767,720 $16,998,464 $16,132,159 $15,286,001 $14,241,065 $12,799,678
Franchise 722,700 662,048 635,494 656,664 647,830 621,546 582,064 571,731 539,477 525,427
Unrestricted state revenue sharing 14,435,336 12,638,148 11,879,950 11,577,834 11,177,729 10,549,196 10,413,464 9,636,906 9,048,365 3,461,359
Unrestricted state sales tax revenue sharing - - - - - - - - - 3,204,612
Unrestricted auto lieu tax revenue sharing - - - - - - - - - 1,479,094
Investment earnings 136,789 1,098,267 1,132,215 74,542 68,435 238,210 216,175 255,702 265,787 189,606
Special item - Capital asset conveyance - - - - - - - - (2,606,804) -
Transfers 2,522 2,472 2,581 2,847 2,942 3,030 3,119 3,178 2,319.00 -
Total governmental activities 39,354,140 37,158,338 36,574,640 33,976,285 31,664,656 28,410,446 27,346,981 25,753,518 21,490,209 21,659,776
Business-type activities:
Investment earnings 59 910,920 774,842 5,916 11,995 204,669 124,887 111,816 5,471 167,106
Miscellaneous 13,255 - - - - - - - - -
Transfers (2,522) (2,472) (2,581) (2,847) (2,942) (3,030) (3,119) (3,178) (2,319) -
Total business-type activities 10,792 908,448 772,261 3,069 9,053 201,639 121,768 108,638 3,152 167,106
Total primary government $39,364,932 $38,066,786 $37,346,901 $33,979,354 $31,673,709 $28,612,085 $27,468,749 $25,862,156 $21,493,361 $21,826,882
Change in Net Position
Governmental activities 25,531,775 10,809,448 4,889,599 6,128,844 (2,166,938) (1,715,752) (3,839,998) (443,413) (456,330) 2,007,027
Business-type activities 9,760,378 5,341,605 6,235,715 4,956,766 4,710,598 5,814,877 4,497,639 6,012,820 3,566,675 4,360,475
Total primary government $35,292,153 $16,151,053 $11,125,314 $11,085,610 $2,543,660 $4,099,125 $657,641 $5,569,407 $3,110,345 $6,367,502
Source: Town of Oro Valley Finance Department
Page 128
TOWN OF ORO VALLEY, ARIZONA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
General fund
Nonspendable $204,193 $45,553 $129,504 $141,676 $130,030 $97,269 $31,278 $- $- $-
Committed 9,883,194 10,485,304 13,608,565 - - - - - - -
Assigned - - 2,584,994 1,441,862 1,441,862 1,441,862 1,553,999 1,608,035 1,608,035 1,608,035
Unassigned 22,321,155 10,368,691 3,248,602 14,384,104 11,831,322 8,985,422 8,566,598 9,925,988 11,529,070 9,793,614
Total general fund $32,408,542 $20,899,548 $19,571,665 $15,967,642 $13,403,214 $10,524,553 $10,151,875 $11,534,023 $13,137,105 $11,401,649
All other governmental funds
Nonspendable $157,497 $73,201 $105,403 $130,202 $132,538 $127,600 $149,348 $- $- $-
Restricted 5,392,323 5,471,396 5,752,355 4,424,244 6,006,584 4,031,923 3,599,966 4,555,138 3,730,312 11,454,390
Committed 2,602,097 805,717 406,247 1,594,293 1,829,232 2,617,856 4,637,773 5,343,506 4,166,818 622,919
Assigned 2,438,272 2,410,736 3,611,045 2,209,618 1,716,361 1,340,991 1,421,593 1,500,000 - -
Unassigned - - - (201,765) (237,769) (29,198) - - - -
Total all other governmental funds $10,590,189 $8,761,050 $9,875,050 $8,156,592 $9,446,946 $8,089,172 $9,808,680 $11,398,644 $7,897,130 $12,077,309
Source: Town of Oro Valley Finance Department
Page 129
TOWN OF ORO VALLEY, ARIZONA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Revenues
Taxes $24,779,493 $23,419,451 $23,559,894 $22,321,062 $20,415,550 $17,620,010 $16,714,223 $15,857,732 $14,780,542 $13,325,105
Intergovernmental 31,780,507 30,840,092 24,375,992 21,634,143 22,118,633 19,488,066 17,714,991 16,732,631 16,817,756 19,723,086
Fines, forfeitures, & penalties 233,331 183,381 247,283 529,687 558,692 283,470 221,571 673,336 551,962 895,820
Licenses, fees, & permits 3,362,933 2,400,899 2,387,832 2,679,690 2,388,951 1,915,992 1,605,937 2,116,700 1,813,947 1,185,862
Charges for services 7,162,259 7,463,179 7,206,705 6,599,847 6,226,578 5,956,058 2,991,826 1,850,181 1,630,238 1,209,814
Contributions & donations - - - 133,928 150,000 149,513 - - 27,229 995
Special assessments 172,640 175,197 174,066 175,854 175,539 189,525 178,078 1,462,307 365,935 366,028
Development impact fees 1,256,426 980,302 1,039,763 1,346,402 1,348,528 795,471 439,637 569,338 988,342 417,742
Investment income 132,373 1,098,267 1,132,215 74,542 68,435 238,210 216,175 255,702 265,787 189,606
Other revenues 1,024,290 965,588 841,111 576,970 572,886 504,796 141,618 305,489 349,326 460,512
Total revenues $69,904,252 $67,526,356 $60,964,861 $56,072,125 $54,023,792 $47,141,111 $40,224,056 $39,823,416 $37,591,064 $37,774,570
Expenditures
General government $17,610,897 $16,531,008 $14,424,463 $11,998,586 $11,098,844 $11,426,687 $10,862,553 $10,610,673 $9,289,771 $9,212,866
Public safety 16,438,199 16,767,994 16,250,498 16,731,963 15,725,029 15,494,532 15,071,396 13,539,322 12,342,349 11,993,864
Highways & streets 1,795,203 1,904,698 2,999,923 3,092,143 2,993,402 2,754,413 2,602,321 3,710,577 3,513,479 3,191,654
Transit 930,687 1,110,444 1,150,322 1,536,294 1,528,654 1,432,910 1,404,646 - - -
Culture & recreation 8,363,664 8,735,394 8,880,611 9,399,598 9,433,339 9,097,752 4,078,817 2,445,131 2,468,129 2,954,549
Capital outlay 9,993,713 20,637,466 15,293,326 10,081,427 9,196,801 7,995,340 8,093,704 5,495,185 11,053,739 6,929,834
Debt service
Principal 1,146,027 1,262,487 1,124,885 1,304,226 1,075,466 897,637 649,840 1,867,901 571,910 3,052,953
Interest 290,251 365,454 327,421 356,661 314,914 336,510 436,010 472,268 498,729 554,274
Issuance cost on bonds - - 35,000 - 67,959 104,533 - - - 75,800
Total expenditures $56,568,641 $67,314,945 $60,486,449 $54,500,898 $51,434,408 $49,540,314 $43,199,287 $38,141,057 $39,738,106 $37,965,794
Excess of revenues over
(under) expenditures $13,335,611 $211,411 $478,412 $1,571,227 $2,589,384 $(2,399,203) $(2,975,231) $1,682,359 $(2,147,042) $(191,224)
Other financing sources (uses)
Premium on bonds issued - - - - - - - - - 113,835
Proceeds from capital lease agreements - - - - - 1,043,214 - 212,895 - -
Payment to bond escrow agent - - - - (1,171,447) (2,523,121) - - - -
Issuance of long-term debt - - 2,035,000 - 3,115,556 2,529,250 - - - 2,580,000
Transfers in 2,747,343 2,046,718 4,407,180 3,342,890 2,953,072 1,872,026 4,326,627 4,115,152 1,704,272 1,003,666
Transfers out (2,744,821) (2,044,246) (4,404,599) (3,640,043) (3,250,130) (1,868,996) (4,323,508) (4,111,974) (2,001,953) (1,003,666)
Total other financing sources (uses)2,522 2,472 2,037,581 (297,153) 1,647,051 1,052,373 3,119 216,073 (297,681) 2,693,835
Net change in fund balances $13,338,133 $213,883 $2,515,993 $1,274,074 $4,236,435 $(1,346,830) $(2,972,112) $1,898,432 $(2,444,723) $2,502,611
Debt service as a percentage
of noncapital expenditures 3.06%3.40%3.16%3.66%3.32%3.00%3.17%7.30%3.76%11.55%
Source: Town of Oro Valley Finance Department
Page 130
TOWN OF ORO VALLEY, ARIZONA
PRINCIPAL SALES TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS PRIOR
% of Total % of Total
Business Sales Tax Business Sales Tax
Taxpayer Type Rank Payments Taxpayer Type Rank Payments
Taxpayer A Utility $2,201,559 1 8.88%Taxpayer A Utility $1,440,824 1 11.36%
Taxpayer B Retail 1,540,861 2 6.22%Taxpayer B Accomodation 1,059,593 2 8.35%
Taxpayer C Retail 1,270,222 3 5.13%Taxpayer C Retail 812,589 3 6.41%
Taxpayer D Retail 1,248,273 4 5.04%Taxpayer D Retail 533,191 4 4.20%
Taxpayer E Construction 886,049 5 3.58%Taxpayer E Retail 399,395 5 3.15%
Taxpayer F Accomodation 832,376 6 3.36%Taxpayer F Utility 397,916 6 3.14%
Taxpayer G Construction 737,130 7 2.97%Taxpayer G Retail 330,603 7 2.61%
Taxpayer H Utility 656,279 8 2.65%Taxpayer H Retail 286,884 8 2.26%
Taxpayer I Retail 568,172 9 2.29%Taxpayer I Retail 250,360 9 1.97%
Taxpayer J Retail 547,008 10 2.21%Taxpayer J Utility 240,906 10 1.90%
$10,487,929 42.33%$5,752,261 45.35%
Sales Tax
Payments
Sales Tax
Payments
June 30, 2021 June 30, 2012
Source: Arizona Department of Revenue
Page 131
TOWN OF ORO VALLEY, ARIZONA
TAXABLE SALES BY CATEGORY
LAST TEN FISCAL YEARS ($000's)
2021 2020 2018 2017 2016 2015 2014 2013 2012
Construction $3,893 $4,363 $4,191 $4,653 $4,295 $2,131 $3,199 $3,338 $2,842 $1,738
Manufacturing 283 198 173 140 137 156 141 257 258 258
Transportation, Warehousing,
Communications & Utilities 3,593 3,288 3,335 3,384 3,171 3,133 3,068 2,959 2,785 2,450
Wholesale Trade 228 211 183 154 136 131 125 103 110 106
Retail Trade 10,890 9,830 8,430 7,733 7,086 6,844 5,808 5,243 5,153 4,925
Restaurants, Bars & Lodging 3,374 3,011 4,299 3,907 3,473 3,295 2,803 2,761 2,164 2,314
Finance, Insurance & Real Estate 313 442 1,114 646 562 443 270 75 335 333
Services 1,276 1,004 963 840 702 672 599 529 456 456
All Other 206 409 237 206 202 190 115 60 75 103
Cable Franchise 723 662 635 657 648 622 582 572 540 525
Total $24,779 $23,418 $23,560 $22,320 $20,412 $17,617 $16,710 $15,897 $14,718 $13,208
Town Sales Tax Rate*2.00%2.00%
2019
Fiscal Year
2.50%2.50%2.50%2.50%2.50%2.00%2.00%2.00%
Source: Arizona Department of Revenue
* Note:
2% Additional Utility Sales Tax Effective August 1, 2011
.5% Additional Sales Tax Effective March 1, 2015
Page 132
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
Fiscal Year
Ended Utility
June 30,Sales Tax Bed Tax Sales Tax Sales Tax
2012 2.00%6.00%4.00%4.00%7.10%
2013 2.00%6.00%4.00%4.00%6.10%
2014 2.00%6.00%4.00%4.00%6.10%
2015*2.50%6.00%4.00%4.00%6.10%
2016 2.50%6.00%4.00%4.00%6.10%
2017 2.50%6.00%4.00%4.00%6.10%
2018 2.50%6.00%4.00%4.00%6.10%
2019 2.50%6.00%4.00%4.00%6.10%
2020 2.50%6.00%4.00%4.00%6.10%
2021 2.50%6.00%4.00%4.00%6.10%
Town of Oro Valley
Construction
Pima County
Sales
Source: Arizona Department of Revenue
Page 133
TOWN OF ORO VALLEY, ARIZONA
NET LIMITED & FULL CASH ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year Net Full Estimated
Ended Assessed Cash Assessed Full Cash
June 30,Value Value Value
2012 $618,976,953 $629,340,548 $5,716,229,517 $-
2013 589,160,533 592,761,968 5,461,131,133 -
2014 553,366,744 556,259,856 5,175,406,955 -
2015 556,566,167 560,863,509 5,252,917,489 -
2016 572,696,599 593,299,222 5,616,655,680 -
2017 593,580,247 616,216,705 5,688,443,027 -
2018 612,684,205 633,479,221 6,058,189,523 -
2019 645,311,769 683,985,966 6,456,152,108 -
2020 678,873,768 730,293,104 6,937,292,543 -
2021 758,352,130 813,753,982 7,742,926,046 -
Net Limited Total Outstanding
General Obligation
Bond Debt
Source: State of Arizona Department of Revenue Abstract of the Assessment Roll
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015
(Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value
is used for determining the Town's bonding capacity and as the ceiling for net limited assessed value.
Page 134
TOWN OF ORO VALLEY, ARIZONA
HISTORICAL AND PROJECTED EXCISE TAX COLLECTIONS
JUNE 30, 2021
Fiscal Year Fiscal Year
Revenue Source
Town Sales & Franchise Fees $25,794,432 $24,090,505 $24,779,493 $23,418,101 $23,559,894 $22,321,148 $20,415,550 $17,620,010 $16,714,223 $15,857,732
Licenses & Permits 2,569,700 1,874,000 3,362,933 2,400,899 2,387,832 2,679,690 2,313,504 1,915,992 1,605,937 2,116,700
Fines 128,125 125,000 135,547 111,611 165,669 131,393 131,637 159,154 148,050 172,232
State-shared Sales Tax 5,711,710 5,406,272 5,462,343 4,694,491 4,469,774 4,210,168 3,989,179 3,887,673 3,747,944 3,569,711
State-shared Income Tax 6,908,781 6,007,636 6,580,331 5,870,231 5,370,779 5,422,693 5,329,864 4,937,719 4,964,635 4,571,196
Total $41,112,748 $36,667,505 $40,320,647 $36,495,333 $35,953,948 $34,765,092 $32,179,734 $28,520,548 $27,180,789 $26,287,571
Fiscal Year
2021 20192020
ActualProjected
Fiscal Year
2014
Fiscal Year
2022
Fiscal Year
2023
Fiscal Year Fiscal Year
20162017 2015
Fiscal YearFiscal Year
2018
(a) All revenue sources are presented on a modified accrual basis of accounting except for Town sales taxes which are presented on the cash basis of accounting per the Arizona Department of Revenue Standard
Industry Summary Local Taxes Collection Reports
Source: Oro Valley Finance Department
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
Page 135
TOWN OF ORO VALLEY, ARIZONA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Special Percentage
Fiscal Note Loan Assessment of Personal
Year Payable Payable Bonds Income
2012 $- $- $- $9,485,968 $2,685,000 $45,988,331 $- $5,893,122 $64,052,421 3.85%1,550
2013 - - - 9,155,743 2,435,000 43,349,121 185,307 5,575,041 60,700,212 3.59%1,409
2014 168,994 - - 8,703,428 1,055,000 40,811,243 93,593 6,371,529 57,203,787 3.41%1,366
2015 128,594 1,000,000 - 8,215,673 925,000 37,683,805 118,862 8,169,765 56,241,699 3.25%1,331
2016 966,962 700,000 - 7,716,638 780,000 34,517,647 80,423 8,879,907 53,641,577 2.95%1,231
2017 716,622 350,000 - 9,341,559 640,000 30,804,327 40,814 8,284,407 50,177,729 2.69%1,146
2018 458,744 - - 8,788,954 490,000 28,079,939 - 7,690,874 45,508,511 2.35%1,022
2019 254,070 - - 10,051,867 335,000 30,135,034 - 7,079,179 47,855,150 2.37%1,059
2020 33,937 - - 9,171,710 170,000 25,669,708 - 6,448,759 41,494,114 1.95%901
2021 - - - 8,229,620 - 24,909,835 - 2,713,108 35,852,563 1.62%762
Business-Type Activities
Total
Primary
Government
Capital
Leases
Excise Tax
Bonds
Governmental Activities
Revenue
Bonds
Per
Capita
Capital
Leases
Loan
Payable
Source: Town of Oro Valley Finance Department and U.S. Census Bureau
Page 136
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2021
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable Debt
Pima County $138,191,000 7.60%$10,496,884
Amphitheater Unified School District 82,255,000 42.47%34,931,696
Golder Ranch Fire District 54,100,838 69.95%37,845,903
Subtotal, overlapping debt 83,274,483
Town of Oro Valley 8,229,620 100.00%8,229,620
Total estimated direct and overlapping debt $91,504,103
Source: Pima County, Golder Ranch Fire District and Amphitheater Unified School District No. 10.
(1) Estimated percentage of debt outstanding applicable to the Town is calculated based on a portion of the Town's net limited as sessed
valuation as a percentage of the net limited assessed valuation of the overlapping jurisdiction.
Page 137
TOWN OF ORO VALLEY, ARIZONA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2021 2020 2019 2018 2017
Debt Limit $211,576,035 $189,876,207 $177,836,351 $164,704,598 $160,216,343
Total net debt applicable to limit - - - - -
Legal debt margin $211,576,035 $189,876,207 $177,836,351 $164,704,598 $160,216,343
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
2016 2015 2014 2013 2012
Debt Limit $154,257,798 $145,824,512 $144,627,563 $154,118,112 $163,628,543
Total net debt applicable to limit - - - - -
Legal debt margin $154,257,798 $145,824,512 $144,627,563 $154,118,112 $163,628,543
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
Source: Town of Oro Valley Finance Department
Page 138
TOWN OF ORO VALLEY, ARIZONA
CALCULATION OF LEGAL DEBT MARGIN
JUNE 30, 2021
Net Full Cash Assessed Valuation $813,753,982
Debt Limit - 20% of net full cash assessed valuation $162,750,796
Debt applicable to limit
General obligation bonds outstanding $
Less amount set aside for repayment of debt
Net debt applicable to limit
20% legal debt margin $162,750,796
Debt Limit - 6% of net full cash assessed valuation $48,825,239
Debt applicable to limit
General obligation bonds outstanding $
Less amount set aside for repayment of debt
Net debt applicable to limit
All other general obligation bonds debt margin $48,825,239
Total legal debt margin $211,576,035
Water, Sewer, Light, Parks, Open Space and
Recreational Facility Bonds
All other general obligation bonds
Source: Pima County Assessor’s Office
Page 139
TOWN OF ORO VALLEY, ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Water Utility Revenue Bonds
Fiscal
Year
2012 $15,983,999 $2,370,180 $2,190,894 $4,561,074 3.50
2013 16,732,600 2,536,840 1,732,008 4,268,848 3.92
2014 19,397,409 2,406,000 1,429,538 3,835,538 5.06
2015 16,213,273 2,995,560 1,372,024 4,367,584 3.71
2016 16,943,615 3,054,080 1,239,488 4,293,568 3.95
2017 18,169,402 3,054,060 870,547 3,924,607 4.63
2018 19,455,685 2,607,710 897,871 3,505,581 5.55
2019 17,519,158 3,933,228 839,823 4,773,051 3.67
2020 20,218,758 4,348,648 775,538 5,124,186 3.95
2021 22,304,186 5,789,910 661,932 6,451,842 3.46
Governmental Revenue Bonds
Fiscal
Year
2012 $25,085,767 $304,820 $314,703 $619,523 40.49
2013 28,135,868 321,910 371,951 693,861 40.55
2014 29,512,099 444,000 382,639 826,639 35.70
2015 31,739,256 479,440 367,991 847,431 37.45
2016 31,883,978 530,920 289,630 820,550 38.86
2017 31,739,256 334,940 281,475 616,415 51.49
2018 34,262,128 544,290 280,170 824,460 41.56
2019 36,414,803 763,772 284,213 1,047,985 34.75
2020 36,511,067 877,352 312,875 1,190,227 30.68
2021 37,951,105 942,090 273,354 1,215,444 31.22
Special Assessment
Fiscal
Year
2012 $366,028 $235,000 $132,423 $367,423 1.00
2013 365,935 250,000 117,576 367,576 1.00
2014 1,462,307 1,380,000 80,020 1,460,020 1.00
2015 178,078 130,000 45,917 175,917 1.01
2016 189,525 145,000 58,189 203,189 0.93
2017 175,539 140,000 33,203 173,203 1.01
2018 175,854 150,000 26,290 176,290 1.00
2019 174,066 155,000 21,363 176,363 0.99
2020 175,197 165,000 11,911 176,911 0.99
2021 172,640 170,000 4,038 174,038 0.99
Coverage
Principal Interest Total Coverage
Principal Interest Total Coverage
Debt Service
Revenues
Gross
Revenues
Debt Service
Debt Service
Gross
Revenues
Gross
Principal Interest Total
Source: Town of Oro Valley Finance Department
Page 140
TOWN OF ORO VALLEY, ARIZONA
HISTORICAL AND PROJECTED WATER SYSTEM REVENUES, EXPENSES, DEBT SERVICE AND COVERAGE
LAST TEN FISCAL YEARS
Revenues:
Water revenues $14,679,253 $13,764,702 $12,413,502 $13,586,667 $12,493,557 $12,018,429 $11,280,269 $12,169,375 $11,585,181 $11,578,981
Water connection fees - 810,689 621,106 816,045 816,353 544,852 591,045 1,413,047 706,159 462,762
Alternative water connection fees 4,100,556 1,627,435 1,246,838 1,638,175 1,638,792 1,094,460 1,172,170 2,376,682 1,253,055 759,958
Groundwater preservation fees 2,617,452 2,389,953 2,213,303 2,611,075 2,440,045 2,371,100 2,330,231 2,599,718 2,527,524 2,315,277
Other revenues 906,925 1,625,979 1,024,407 803,723 769,638 710,740 714,965 727,972 660,681 557,222
Interest income (1,211) 887,772 758,457 - 11,020 203,857 124,593 110,615 - 166,654
Total Revenues 22,302,975 21,106,530 18,277,613 19,455,685 18,169,405 16,943,438 16,213,273 19,397,409 16,732,600 15,840,854
Expenses:
Personnel 3,480,942 3,392,481 3,236,682 3,155,109 3,021,915 2,952,249 2,767,143 2,659,895 2,537,150 2,497,865
Operations & maintenance 4,133,238 4,288,975 3,445,511 3,838,409 4,719,579 5,059,998 4,530,436 4,303,230 4,564,894 3,559,807
CAP water costs 3,736,489 3,696,131 3,393,317 3,523,052 2,892,392 1,952,117 1,570,793 1,499,594 1,093,105 636,519
Total Expenses 11,350,669 11,377,587 10,075,510 10,516,570 10,633,886 9,964,364 8,868,372 8,462,719 8,195,149 6,694,191
Net water system revenues 10,952,306 9,728,943 8,202,103 8,939,115 7,535,519 6,979,074 7,344,901 10,934,690 8,537,451 9,146,663
Water supported debt service
2007 WIFA Loan 2,198,236 306,657 310,866 311,000 311,130 311,256 311,377 311,494 316,763 316,875
2009 WIFA Loan 1,310,973 147,425 149,175 149,226 149,275 149,322 149,367 150,471 186,817 182,268
2014 WIFA Loan 372,867 373,072 377,060 377,158 395,534 361,059 296,972 - - -
2003 Revenue bonds - - - - - - - - 980,000 2,545,435
2003 Refunding revenue bonds - - - - - - - - 1,243,058 1,238,996
2005 Excise tax bonds - - - - - - 152,516 152,565 151,245 152,099
2007 Excise tax bonds - - - - 1,245,403 1,197,678 1,255,948 790,822 791,111 791,203
2012 Refunding bonds 4,168,782 1,930,382 1,996,381 1,963,731 1,980,781 1,995,481 1,971,082 1,968,281 956,975 -
2013 Refunding bonds - 1,010,000 1,024,645 1,024,073 1,033,428 1,022,420 1,046,558 1,513,427 - -
2015 Refunding revenue obligations 148,666 149,924 152,339 150,259 25,101 17,116 - - - -
2017 Refunding revenue obligations 1,623,896 1,624,758 1,658,306 235,873 - - - - - -
2018 Excise tax revenue obligations 510,498 409,122 - - - - - - - -
2021 Refunding revenue bonds 18,838 - - - - - - - - -
2021 Refunding revenue bonds 11,081 - - - - - - - - - -
Total water supported debt service $10,363,837 $5,951,340 $5,668,772 $4,211,320 $5,140,652 $5,054,332 $5,183,820 $4,887,060 $4,625,969 $5,226,876
Debt service coverage 1.06 1.63 1.45 2.12 1.47 1.38 1.42 2.24 1.85 1.75
2021 2018 2017 2016 2015 2014 2013 201220202019
Source: Town of Oro Valley Finance Department
Page 141
TOWN OF ORO VALLEY, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal Year Per Capita
Ended Personal Unemployment
June 30,Population Income Rate
2012 41,335 1,661,839,665 40,204 6.4%
2013 43,070 1,692,780,210 39,303 6.4%
2014 41,887 1,679,965,408 40,107 6.2%
2015 42,259 1,728,773,431 40,909 5.2%
2016 43,565 1,817,844,597 41,727 5.3%
2017 43,781 1,863,394,821 42,562 4.6%
2018 44,517 1,932,614,654 43,413 4.8%
2019 45,184 2,014,980,480 44,595 4.9%
2020 46,044 2,128,752,252 46,233 8.6%
2021 47,070 2,213,843,310 47,033 5.5%
Income
Personal
Source: US Census Bureau, Arizona Employment statistics, and Pima Association of Governments
Page 142
1422
TOWN OF ORO VALLEY, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR
% of Total % of Total
Town Town
Employer Employees Rank Employment Employer Employees Rank Employment
Roche Tissue Diagnostics 1,400 1 7.41%Ventana Medical Systems 1,350 1 7.83%
Town of Oro Valley 520 2 2.75%Amphitheater Public Schools 733 2 4.25%
Oro Valley Hospital 421 3 2.23%Oro Valley Hospital 600 3 3.48%
Amphitheater Public Schools 395 4 2.09%Hilton El Conquistador Resort 458 4 2.66%
Walmart 325 5 1.72%Town of Oro Valley 404 5 2.34%
Casa De la Luz Hospice 264 6 1.40%Wal-Mart Supercenter 330 6 1.91%
SimpleView 234 7 1.24%Fry's Food & Drug 244 7 1.42%
Splendido at Rancho Vistoso 203 8 1.07%Splendido at Rancho Vistoso 190 8 1.10%
Hilton El Conquistador Resort 135 9 0.71%Target 170 9 0.99%
Meggitt Securaplane 128 10 0.68%Kohls 100 10 0.58% Total 4,025 0.212996772
4,025 21.30% Total 4,579 26.56%
June 30, 2012June 30, 2021
Source: Town of Oro Valley Finance Department
Page 143
TOWN OF ORO VALLEY, ARIZONA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
Administration
Town Clerk 4.73 4.73 4.73 4.69 4.54 4.56 4.56 4.90 4.54 4.44
Town Manager 8.38 10.38 10.38 7.38 7.38 7.38 8.00 7.00 7.00 7.10
Human Resources 4.00 4.00 4.00 3.48 3.48 3.50 3.50 2.00 5.00 5.00
Economic Development 1.00 1.00 1.00 3.00 3.00 3.00 2.00 2.00 3.00 1.00
Finance 7.20 8.00 8.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Information Systems 13.80 9.00 9.00 8.00 7.00 7.00 7.00 7.30 6.50 6.50
Legal 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 8.00
Development & Infrastructure Services 26.78 27.38 27.38 26.88 103.63 83.76 81.45 78.84 77.22 73.38
Parks & Recreation 63.10 63.10 63.10 60.78 48.02 49.36 36.20 37.61 27.26 20.62
Cultural Resources - - - - - 0.20 - - 1.35 1.30
Library - - - - - - - - - 18.55
Police
Civilians 30.25 31.25 31.25 30.25 31.25 30.25 30.25 25.93 30.25 30.25
Officers 106.88 106.88 101.88 104.88 101.88 102.88 102.88 101.91 101.44 97.96
Magistrate Court 8.48 8.48 8.00 8.00 8.00 8.00 8.00 8.70 8.00 8.00
Public Works 70.89 70.29 70.29 65.79 - - - - - -
Water Utility 40.48 39.48 39.48 39.48 39.48 38.48 37.48 37.00 36.00 36.00
Total 391.97 389.97 384.49 375.61 370.66 351.37 334.32 326.19 320.56 325.10
Source: Town of Oro Valley Finance Department
Page 144
162
TOWN OF ORO VALLEY, ARIZONA
WATER UTILITY REVENUES BY USER TYPE
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2012 $7,761,639 $954,472 $1,050,602 $13,466 $120,830 $653 $115,568 $1,561,750 $11,578,980
2013 7,752,934 962,824 1,040,793 19,000 196,354 884 135,720 1,507,574 11,616,083
2014 7,881,436 886,712 1,169,067 187,622 283,632 816 121,108 1,638,981 12,169,374
2015 7,649,136 779,877 981,545 214,848 271,815 - 115,955 1,267,093 11,280,269
2016 8,103,644 778,915 1,129,741 50,479 310,609 - 114,427 1,530,107 12,017,922
2017 8,416,714 814,041 1,170,946 51,373 224,532 8,733 104,880 1,702,338 12,493,557
2018 8,990,121 860,124 1,371,555 61,504 520,324 13,735 103,126 1,666,178 13,586,667
2019 8,849,732 856,941 1,087,648 69,363 302,780 9,627 69,091 1,168,322 12,413,504
2020 9,798,411 925,233 1,193,423 65,007 345,149 8,787 85,600 1,343,092 13,764,702
2021 10,394,919 902,536 1,513,518 65,537 228,950 8,575 65,356 1,499,862 14,679,253
TotalResidentialCommercialIrrigation
Irrigation
Reclaimed Construction
Construction
Reclaimed Turf
Turf
Reclaimed
Source: Town of Oro Valley Water Utility Department
Page 145
147
TOWN OF ORO VALLEY, ARIZONA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2020 2019 2018 2017 2016 2015 2014 2013 2012
Police
Burglaries 41 42 50 77 71 85 77 75 105 134
Citations (traffic)3,516 2,681 3,117 2,992 3,446 3,890 4,486 4,668 5,456 5,084
Investigations 1,164 932 963 915 818 824 832 765 681 711
Total arrests 1,438 1,251 1,488 1,786 1,458 1,598 1,721 1,679 1,564 1,716
Thefts 534 501 504 567 493 586 500 561 563 571
Development & Infrastructure Services
Street resurfacing (miles)54 51 88 44 89 92 101 73 31 22
Parks & Recreation
Recreation programs held annually 45 105 96 73 55 52 38 30 35 37
Months of public pool operations 11 12 12 12 12 12 12 12 10 12
Parks maintenance man-hours worked 18,720 18,220 18,311 17,842 15,463 15,083 16,255 20,000 17,000 16,016
Library
Collection volume - - - - - - - - - 97,364
Water
New connections 505 273 264 331 340 176 202 165 213 97
Total connections 20,966 20,461 20,188 19,924 19,588 19,355 19,179 18,977 18,812 18,599
Transit
Total route miles 350,248 455,777 454,277 468,346 568,657 529,170 392,071 439,512 353,936 200,058
Passengers 28,686 39,902 47,847 49,474 51,131 45,202 39,102 39,196 32,442 20,119
2021
Source: Town of Oro Valley Finance Department
Note: Oro Valley Library was transferred to Pima County Library District on January 1, 2013.
Page 146
TOWN OF ORO VALLEY, ARIZONA
WATER RATES
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2012 $14.19 $2.20 $2.99 $4.03 $5.38 $0.95 $14.19
2013 14.19 2.20 2.99 4.03 5.38 0.95 14.19
2014 14.19 2.23 3.01 4.07 5.49 0.95 14.19
2015 14.19 2.27 3.10 4.23 5.76 0.90 14.19
2016 14.19 2.32 3.19 4.40 6.05 0.90 14.19
2017 14.62 2.34 3.25 4.53 6.29 0.90 14.62
2018 16.45 2.34 3.25 4.53 6.29 0.90 14.62
2019 18.26 2.34 3.25 4.53 6.29 0.90 14.62
2020 18.26 2.34 3.25 4.53 6.29 0.90 14.62
2021 18.26 2.34 3.25 4.53 6.29 0.90 14.62
Per 1,000
Tier 2
Per 1,000
Base Rate
Monthly
Reclaimed
WaterPotable Water
Tier 3
Per 1,000
Tier 4
Per 1,000
GPF
Per 1,000
Base Rate
Monthly
Tier 1
Source: Town of Oro Valley Water Utility
Note: The rate for all reclaimed water is $2.27 per 1,000 gallons.
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TOWN OF ORO VALLEY, ARIZONA
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2020 2019 2018 2017 2016 2015 2014 2013 2012
Police
Stations 1 1 1 1 1 1 1 1 1 1
Substations 3 3 3 3 3 3 3 3 3 3
Patrol units 84 84 78 78 72 77 74 64 66 67
Other fleet 41 42 46 65 67 44 45 42 43 42
Development & Infrastructure Services
Streets (miles)421 421 421 421 421 421 421 421 205 204
Streetlights 95 95 95 95 95 95 95 95 95 93
Traffic signals 22 22 22 22 19 19 19 19 19 17
Parks & Recreation
Acreage 449 449 449 449 448 448 448 457 436 436
Playgrounds 3 3 2 2 2 2 2 2 2 2
Baseball/softball diamonds 7 7 7 7 7 7 7 7 7 7
Community centers 1 1 1 1 1 1 1 - - -
Golf course holes 36 45 45 45 45 45 45 - - -
Tennis courts 31 32 32 32 32 32 32 1 1 1
Swimming pools 2 2 3 4 4 4 4 2 2 2
Water
Number of Wells 18 18 19 20 20 20 20 18 22 22
Reservoir Storage Capacity 11 11 11 11 11 12 12 13 20 20
Number of Booster Stations 26 26 26 26 26 27 27 26 25 25
Transit
Transit vans 6 7 7 7 4 4 7 9 5 5
Transit mini buses 23 21 21 21 22 22 19 17 12 10
2021
Source: Town of Oro Valley Finance Department
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