HomeMy WebLinkAboutFinancial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/2015TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
________________________________________________________________________________
11000 North La Canada Drive – Oro Valley, Arizona 85737-7015
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Prepared by:
Finance Department
Stacey Lemos, CPA
Finance Director
(This page intentionally left blank)
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal i
Organization Chart x
List of Town Officials xi
GFOA Certificate of Achievement xii
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 19
Statement of Activities 20
Fund Financial Statements:
Balance Sheet – Governmental Funds 24
Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position 25
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 26
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds to the
Statement of Activities 27
Statement of Net Position – Proprietary Funds 28
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS
FINANCIAL SECTION Page
BASIC FINANCIAL STATEMENTS
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds 30
Statement of Cash Flows – Proprietary Funds 32
Notes to Financial Statements 33
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues Expenditures and Changes in Fund Balances –
Budget and Actual:
General Fund 72
Schedule of Proportionate Share of the Net Pension Liability 73
Schedules of Changes in the Net Pension Liability and Related Ratios 74
Schedule of Contributions 76
Schedule of Funding Progress 77
Notes to Required Supplementary Information 78
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds
By Fund Type 82
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 84
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS
FINANCIAL SECTION Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Special Revenue Funds:
Combining Balance Sheet 88
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 90
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 92
Debt Service Fund:
Combining Balance Sheet 98
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 99
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual 100
Capital Projects Funds:
Combining Balance Sheet 104
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 106
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 108
Internal Service Funds:
Combining Statement of Net Position 114
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position 115
Combining Statement of Cash Flows 116
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS
STATISTICAL SECTION
Financial Trends:
Net Position by Component 119
Changes in Net Position 120
Fund Balances of Governmental Funds 123
Changes in Fund Balances of Governmental Funds 124
Revenue Capacity:
Principal Employers 126
Principal Sales Taxpayers 127
Taxable Sales by Category 128
Direct and Overlapping Sales Tax Rates 129
Primary and Secondary Assessed Property Values 130
Historical and Projected Excise Tax Collections 131
Debt Capacity:
Ratio of Outstanding Debt by Type 132
Direct and Overlapping Governmental Activities Debt 133
Legal Debt Margin Information 134
Calculation of Legal Debt Margin 135
Pledged-Revenue Coverage 136
Historical and Projected Water System Revenues, Expenses,
Debt Service and Coverage 137
Demographic and Economic Information:
Demographic and Economic Statistics 138
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS
STATISTICAL SECTION Page
Operating Information:
Full-Time Equivalent Town Employees by Function 139
Water Utility Revenues by User Type 140
Operating Indicators by Function 141
Water Rates 142
Capital Assets Statistics by Function 143
(This page intentionally left blank)
INTRODUCTORY SECTION
(This page intentionally left blank)
Caring for our heritage, our community, our future.
www.orovalleyaz.gov
11000 N. La Cañada Drive • Oro Valley, Arizona 85737
phone: (520) 229-4700 • fax: (520) 229-0428
Town of Oro Valley
November 20, 2015
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 comprehensive annual financial report of the Town of Oro Valley, Arizona (Town) for the
fiscal year ended June 30, 2015.
This report consists of management’s representations concerning the finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all of
the 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 that is 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 Heinfeld, Meech & Co., P.C., 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, 2015, 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, 2015, 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.
ii
PROFILE OF THE TOWN
The Town of Oro Valley was incorporated in 1974. It is located in northeastern Pima County, three
miles north of Tucson and 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 42,259. The population of Oro
Valley has increased 41% since the 2000 population of 29,700.
Based on the 2010 Census data, Oro Valley has a median household income of $71,628, compared to
the median household income for the state of Arizona of $50,296. 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 Council
Members. Council Members 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 heads 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; the provision of water and
stormwater services; public transportation services; recreational activities and cultural events. In
addition to general government activities, the governing body is financially accountable for the
Municipal Property Corporation; therefore, this activity is included in the reporting entity. Additional
information in regards to the Municipal Property Corporation can be found in Note 1 in the notes to
the basic financial statements.
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 2014.
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 as a result of 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.
iii
MAJOR INITIATIVES AND ACCOMPLISHMENTS FOR THE YEAR
Oro Valley’s Strategic Plan was updated during FY 2014/15 and is centered around the vision
expressed in the Council-adopted and voter-ratified Oro Valley General Plan. While the Strategic
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. The five main focus areas in the Strategic Plan are listed below. Also shown below are the
Town’s accomplishments in these areas during FY 2014/15.
Fiscal Responsibility
The Town Council and management are focused on efforts to maintain long-term
financial health through diversified revenue sources while strategically investing in
community initiatives.
o Conducted a successful primary election in 2014. All four seats were elected at the
primary, making a general election unnecessary, resulting in a decrease in election
costs from $73,451 to $33,061.
o Approved a balanced budget for FY 2015/16, with a projected General Fund surplus
of more than $500,000
o Collected approximately $1.2 million in plan review and permit fees
o Issued approximately 1,625 permits, including 65 commercial building permits, 285
residential building permits, 70 grading permits, 885 miscellaneous building permits,
185 sign permits, 90 pool permits, 35 model home plan permits and 10 wall permits
o Continued use of Arizona Dept. of Corrections (ADC) crew to perform maintenance
and minor repairs on small fleet equipment, vehicles and other equipment at
significant cost savings to the Town
o Secured over $700,000 in regional support for Stormwater repair projects
o Received Certificate of Achievement for Financial Reporting Excellence,
Distinguished Budget Presentation Award and Popular Annual Financial Reporting
Award from Government Finance Officers Association (GFOA)
o Implemented of 0.5% sales tax increase dedicated to funding the operational and
capital needs of the newly acquired Oro Valley Community and Recreation Center
o Received the Achievement of Excellence in Procurement award for the 7th
consecutive year
o Formal bid process resulted in an average savings of $102,000 per contract award
o Received Governor’s Office of Highway Safety funding for five DUI breath detection
devices and $30,000 reimbursement for DUI enforcement overtime and employee-
related expenses
Communication
The Town will ensure residents are educated about and highly engaged in Oro Valley
activities and moving community initiatives forward.
o Implemented Laserfiche, an electronic document management system to store,
manage and retrieve digitized paper documents, such as minutes, ordinances,
resolutions, etc.
o Implemented board and commission management software that allows residents to
apply for board and commission vacancies online, thereby streamlining the
recruitment process and improving the efficiency of board and commission
management
o Adopted the 2015 Strategic Plan
iv
o Committees for the Your Voice, Our Future project (General Plan update) completed
the first round of reviews, with their work compiled into a first draft of the General
Plan
o Held 29 neighborhood public outreach and awareness meetings for planning
amendments, including 7 for major General Plan amendments
o Developed online budget questionnaire, “5 Questions in 5 Minutes,” to solicit public
input during preparation of the FY 2015/16 Town Budget resulting in 124 responses
o Instituted a telephonic language access program to assist non-English speakers
visiting the front counter of the court
o Updated the Town’s constituent portal to be more aesthetically pleasing and user-
friendly
o Refreshed the Oro Valley Vista newsletter, allowing the Town to distribute
hardcopies six times annually instead of online-only format four times annually
o Received the 2014 Silver Circle Award in Citizen Participation from City-County
Communications & Marketing Association for the Your Voice, Our Future public
participation plan
o Increased frequency of postings and video promotions through social media to
communicate Town events and initiatives to the community
o Developed and implemented a digital regional marketing campaign through Tucson
News Now to promote Town amenities and special events to the Tucson metro region
Economic Development
The Town Council and management are focused on attracting and retaining globally-
competitive high technology and bioscience businesses and employers while maximizing
the Town’s visitor destination opportunities.
o Provided wide range of construction assistance for residential and commercial
projects, including Copper Health, Panera Bread, La Hacienda, Breadsmith, San
Dorado, El Corredor, and the opening of three new residential subdivisions
o Attracted LCMS Solutions, the first Clinical Laboratory Improvement Amendments
in Oro Valley, which will bring an estimated 30 new jobs
o Partnered with the Children’s Museum Tucson to open first-ever satellite museum in
Oro Valley
o Received fifth consecutive Playful City USA community designation
o Hosted numerous regional and state championship swim meets at new Oro Valley
Aquatic Center
o Town of Oro Valley survey noted the number one reason residents enjoy living in
Oro Valley is safety and low crime
o Implemented coffee with a cop program and have hosted 20 events at Oro Valley
restaurants and extended care facilities
o Reached 150 active business in the adopt-a-business program
o Added 155 new metered connections for a total water utility customer base of 19,176
Parks, Recreation and Cultural Development
The Town Council and management are focused on developing exceptional recreation and
cultural facilities and programs that attract visitors and events that enhance residents’ quality
of life and strengthen the economy.
o Approved funding of special events in the community, including the annual 4th of
July celebration, holiday tree lighting celebration, Oro Valley Meet Yourself,
seasonal festivals at Steam Pump Ranch, Oro Valley Festival of the Arts and three
music concert series programs
o Approved the acquisition of the El Conquistador Country Club and its related
amenities for $1 million to be converted into a municipal community and recreation
center
v
o Completed recruitment and hiring of 34 new employees in less than three months for
the Oro Valley Community and Recreation Center
o Hosted the first annual Oro Valley Meet yourself folk-life festival
o Completed the Parks & Recreation strategic facilities plan
o Completed construction on two new multi-sport fields, dog park, parking lot and
crucial infrastructure at Naranja Park
o Renovated the dog park at James D. Kriegh Park
o Increased summer camp participation average from 60 to 100 participants per week
o Added 200 new Community & Recreation Center members
Community Infrastructure and Services
The Town Council and management are focused on the Town serving as the model for
innovative partnerships, services and performance in providing basic town services.
o Approved funding for capital improvement projects benefiting the community,
including improvements to the Aquatic Center, Naranja Park, Riverfront Park, Steam
Pump Ranch, as well as street light reconstruction along Sun City’s Rancho Vistoso
Boulevard
o Approved continued funding for community-based public safety programs, including
school resource officers, dispose-a-med, adopt-a-business, coffee with a cop and
citizen volunteer assistance program
o Approved continued funding of Sun Shuttle dial-a-ride, providing direct transit
service for seniors and the disabled, as well as for all community members
o Implemented a new development permitting system
o Completed installation of traffic signal at Rancho Vistoso Blvd. and Vistoso
Highland Dr.
o Began construction on the Naranja Drive widening and improvement project
o Developed an Intergovernmental Agreement (IGA) with Pima County Dept of
Transportation and the Regional Transportation Authority (RTA) to design the La
Cholla Blvd. widening and improvement project.
o Fiscal year transit service ridership exceeded 39,000 passenger trips
o Sun Shuttle dial-a-ride offered over 31,000 hours of service and operated over
464,000 miles
o Completed design and began preparing for construction on the Lambert Lane Phase II
widening and improvement project
o Implemented a new permits and code enforcement system
o Implemented new e-citation program which automatically creates cases in court’s
case management system
o Citizen volunteer assistants program members contributed 14,878 volunteer hours
o Acquired 2,130 acre feet of groundwater extinguishment credits
o Recharged 9,000 acre feet of Central Arizona Project (CAP) water
o Water Utility completed phase 2 and 3 of the advanced metering infrastructure
project
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.
Fiscal year 2014/15 in Oro Valley saw sustained economic progress and recovery with year-over-
year increases in most of the Town’s revenue categories. The Town continues to provide services
and programs without a property tax to fund operations and, therefore, is dependent upon state shared
vi
revenues and local sales tax as major sources of operating revenue. These sources accounted for
approximately 79% of total General Fund revenue for FY 2014/15.
Most of the major local sales tax categories experienced year-over-year increases compared to
amounts collected in FY 2013/14, with the exception of construction sales tax, as discussed below:
Retail tax collections totaled $5.8 million for FY 14/15, up 11%, or $565,000 over last fiscal
year. Approximately $337,000 of this increase is due to the approved increase in the local
sales tax rate from 2% to 2.5% that became effective on March 1, 2015. The additional 0.5%
sales tax revenues are dedicated to funding the operating needs of the Town’s newly acquired
community and recreation center.
Restaurant and bar tax collections totaled $1.3 million for the fiscal year, up 14%, or
$156,000 over last fiscal year. Approximately $72,000 of this increase is due to the increase
in the local sales tax rate mentioned above.
Construction sales tax collections totaled $3.3 million for the fiscal year, down 6%, or nearly
$200,000 from last fiscal year. This slight decline was due to the completion of several large
multi-family housing complexes that were under construction during FY 2013/14, causing a
slight spike in construction sales tax collections during the previous year.
Utility tax collections totaled $2.8 million for the fiscal year, flat to collections from last
fiscal year.
The chart below is a look at the past five years’ local sales tax activity by category:
In FY 2014/15, the Town received $10.4 million for state shared revenues in the General Fund, up
8.1%, or $777,000 over last fiscal year. The trend chart below depicts the performance of both of
these revenue categories since FY 2005/06:
vii
Critical to the Town’s success in the area of fiscal responsibility is the preparation of realistic growth
assumptions that help guide our revenue projections. As mentioned, we continue to see modest
economic growth in Oro Valley and the surrounding region. The FY 2015/16 budget reflects a slight
softening of the forecasted growth trends included in prior years’ forecasts. The projected residential
development is considerable over the next five-year horizon; however, it will be spread out more
than originally projected as we saw production homes going vertical at a slower pace than originally
anticipated in FY 2014/15. Currently, there is an inventory of just over 1,600 residential lots
available in developments under construction town-wide. In FY 2014/15, we saw 141 single family
residential (SFR) building permits issued. The FY 2015/16 budget includes the assumption that 200
SFRs will be issued. We also expect modest commercial activity during FY 2015/16 with some new
construction and tenant improvements in previously-vacant space. We expect growth to be slow in
the short-term and gradually increase as more homes are added to the community. 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 2006/07 through FY
2016/17 projections.
viii
Future Focus
During FY 2015/16, the Town will continue to identify and quantify both one-time revenues derived
from increased 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 that
sufficient recurring revenues exist to fund recurring expenditures in the budget. With the expectation
of sustained and moderately increasing 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 2015/16, the Town will focus its efforts on supporting the elements of its recently updated
Strategic Plan as follows: fiscal responsibility; communication; economic development; parks,
recreation and cultural development; and community infrastructure and services.
These strategies will be fulfilled in a number of different ways as highlighted below:
Employee performance merit and step increases have been budgeted for FY 2015/16 to
maintain fair and competitive compensation provided to the Town’s most valuable assets, its
employees.
The FY 2015/16 budget includes continued funding for its vehicle replacement program,
which includes the replacement of several vehicles town-wide, as well as setting aside
funding for the future replacement of vehicles at the end of their useful lives.
The FY 2015/16 budget includes more than $1.35 million for the Pavement Preservation
Program in the Highway Fund, which maintains the current condition of our streets and
roads.
The largest addition to the FY 2015/16 budget is the acquisition of the former El
Conquistador Country Club for use as the Town’s new community and recreation center.
These operations will comprise a new division within the Parks and Recreation Department
and adds over $8 million in operational and capital expenditures and accompanying revenues
of over $7.4 million, including the 0.5% dedicated sales tax revenues of $2 million.
ix
The FY 2015/16 budget has dedicated funding to continue the process of updating the
General Plan, which is expected to go before voters in November of 2016.
The Town also continues to maintain strong investment grade ratings on its outstanding excise tax
bonds, rated “AA-“ by both Standard and Poor’s and Fitch Ratings. 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 $10.2 million, or 32% of FY 2015/16 adopted
expenditures of $31.6 million. This is well above the Council-adopted policy threshold of 25% of
adopted 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 comprehensive annual financial report for the year ended June 30, 2014. This was the
twenty-first 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 comprehensive annual 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
comprehensive annual 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 Comprehensive Annual Financial Report could not have
been accomplished without the efficient and dedicated services of the entire staff of the Finance
Department who assisted and contributed in 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,
Greg Caton, ICMA-CM Stacey Lemos, CPA
Town Manager Finance Director
x
Organizational Chart
Oro Valley Residents
Town MagistrateTown Manager’s Office
Town Council
Finance Human Resources DISParks & RecreationITWater Utility
Communications
Economic Development
Operations
Planning & Engineering
Development Services
Infrastructure Services
Recreation
Parks
Business Application & Development
Technical Services
GIS Services Utility Administration
Appointed Boards & Commissions
Contract Town Attorney
Chief of Police
Field Services
Support Services
Legal Services
Prosecution
Civil
Aquatics
Town Clerk
Trails
Cultural Resources
xi
TOWN OF ORO VALLEY, ARIZONA
LIST OF TOWN OFFICIALS
ELECTED OFFICIALS
Mayor Dr. Satish Hiremath
Vice-Mayor Mr. Lou Waters
Council Member Mr. Brendan Burns
Council Member Mr. William Garner
Council Member Mr. Joe Hornat
Council Member Ms. Mary Snider
Council Member Mr. Mike Zinkin
TOWN MANAGER
Town Manager Greg Caton
DEPARTMENT DIRECTORS
Finance Director Stacey Lemos, CPA
Human Resources Director Gary Bridget
Town Clerk Julie Bower
Magistrate George Dunscomb
Legal Services Director Tobin Sidles
Water Utility Director Philip Saletta
Chief of Police Daniel G. Sharp
Development & Infrastructure
Services Director/Town Engineer
Paul Keesler
Parks and Recreation Director Kristy Diaz-Trahan
Information Technology Director Chuck Boyer
xii
FINANCIAL SECTION
(This page intentionally left blank)
Page 1
INDEPENDENT AUDITOR’S REPORT
Honorable Mayor and Members of the Town Council
Town of Oro Valley, Arizona
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type
activities, each major fund, and the aggregate remaining fund information of Town of Oro Valley, Arizona
(Town), as of and for the year ended June 30, 2015, 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.
Auditor’s 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 auditor’s 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.
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, business-type activities, each major fund, and the aggregate
remaining fund information of the Town of Oro Valley, Arizona, as of June 30, 2015, 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.
Change in Accounting Principle
As described in Note 1, the Town implemented the provisions of the Governmental Accounting Standards
Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, for the
year ended June 30, 2015, which represents a change in accounting principle. Our opinion is not modified
with respect to this matter.
TUCSON • PHOENIX • FLAGSTAFFwww.heinfeldmeech.com
10120 N. Oracle RoadTucson, Arizona 85704Tel (520) 742-2611Fax (520) 742-2718
Page 2
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 net pension liability information, 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’s basic financial statements. The Introductory Section, 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.
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 Information is fairly stated in all material respects in
relation to the basic financial statements as a whole.
The Introductory Section and Statistical Section 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 20, 2015,
on our consideration of Town of Oro Valley, Arizona’s internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the 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 Town of Oro Valley, Arizona’s internal control over
financial reporting and compliance.
HEINFELD, MEECH & CO., P.C.
CPAs and Business Consultants
November 20, 2015
Page 3
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
Page 4
(This page intentionally left blank)
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 5
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, 2015. 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 those
significant key financial highlights for 2014-15 as follows.
The Town’s total net position of governmental activities decreased $3.8 million to $127.9 million
and business-type activities increased $4.5 million to $75.0 million representing 63 percent and
37 percent respectively, of the total net position of $202.9 million.
General revenues from governmental activities accounted for $27.3 million in revenue, or 68
percent of all revenues from governmental activities. Program specific revenues in the form of
charges for services and grants and contributions accounted for $12.8 million or 32 percent of
total governmental activities revenues. The Town had $18.8 million of program revenues and
$124,887 in general revenues related to business-type activities.
The Town had $43.9 million in expenses related to governmental activities, an increase of 13
percent from the prior fiscal year. The Town had $14.5 million in expenses related to business-
type activities, an increase of one percent from the prior fiscal year.
Among major funds, the General Fund had $31.7 million in revenues, which primarily consisted
of sales taxes and intergovernmental revenues. The total expenditures of the General Fund were
$29.3 million. The General Fund’s fund balance decreased from $11.5 million to $10.2 million,
primarily due to $2.6 million in transfers to capital projects funds for various improvements and
$1.2 million for the establishment of a Community Center Fund.
The Water Fund operating revenues of $14.3 million exceeded operating expenses of $12.0
million. The increase in net position of $4.6 million was primarily due to revenues from charges
for services exceeding operating expenses.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 6
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 statement of net position presents information on all of the Town’s assets liabilities, and deferred
inflows/outflows of resources with the difference between the two 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, 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 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.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 7
OVERVIEW OF FINANCIAL STATEMENTS
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 Fund, which is considered to be a major fund. 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 internal service funds to account for its fleet
maintenance services and to finance its self-insured employee health benefits. Because these
services predominately benefit governmental rather than business-type functions, the internal
service funds have 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. 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 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 $202.9
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,
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. The Town uses these capital assets to provide services to its citizens; consequently, these
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 8
GOVERNMENT-WIDE FINANCIAL ANALYSIS
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.
The following table presents a summary of the Town’s net position for the fiscal years ended
June 30, 2015 and June 30, 2014.
2015
Governmental
Activities
2014
Governmental
Activities
2015
Business-type
Activities
2014
Business-type
Activities 2015 Total 2014 Total
Current and other assets $ 27,920,274 $ 28,033,668 $ 25,242,566 $ 25,162,539 $ 53,162,840 $ 53,196,207
Capital assets, net 144,069,485 143,597,865 100,830,880 98,221,633 244,900,365 241,819,498
Total assets 171,989,759 171,631,533 126,073,446 123,384,172 298,063,205 295,015,705
Deferred outflows 5,837,919 135,085 2,354,675 2,153,646 8,192,594 2,288,731
Current and other liabilities 6,532,855 3,376,544 2,988,661 3,647,811 9,521,516 7,024,355
Long-term liabilities 39,372,914 11,689,969 49,764,066 47,573,244 89,136,980 59,263,213
Total liabilities 45,905,769 15,066,513 52,752,727 51,221,055 98,658,496 66,287,568
Deferred inflows 4,015,632 724,253 4,739,885
Net investment in capital assets 133,800,218 133,714,821 54,858,448 52,775,561 188,658,666 186,490,382
Restricted 3,599,966 4,555,138 3,599,966 4,555,138
Unrestricted (9,493,907) 18,430,146 20,092,694 21,541,202 10,598,787 39,971,348
Total net position $ 127,906,277 $ 156,700,105 $ 74,951,142 $ 74,316,763 $ 202,857,419 $ 231,016,868
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 $5.8 million in business-type activities capital assets through improvements
to the existing water system.
The addition of $9.0 million in governmental activities capital assets, mostly consisting of the
replacement of police force vehicles, Naranja Park improvements, purchase of the El
Conquistador Country Club, for use as a community and recreation center, and pavement
preservation upgrades.
The increase of $2.8 million in business-type activities long-term debt was due mainly to the
issuance of a $2.4 million Water Infrastructure Finance Authority (WIFA) loan and annual
debt service payments of $3.6 million.
The increase of $2.7 million in governmental activities long-term debt was due mainly to the
issuance of a $1.0 million note payable for the purchase of the El Conquistador Country Club
for use as a community and recreation center. This note payable will be paid off over the next
three fiscal years, with the first payment occurring in fiscal year 2015-16.
The implementation of new pension reporting standards increased total long-term liabilities
by $30.6 million.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 9
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Changes in net position. The Town’s total revenues for the current fiscal year were $59.1 million.
The total cost of all programs and services was $58.4 million. The following table presents a
summary of the changes in net position for the fiscal years ended June 30, 2015 and June 30, 2014.
2015
Governmental
Activities
2014
Governmental
Activities
2015
Business-type
Activities
2014
Business-type
Activities
2015
Total
2014
Total
Revenues:
Program revenues:
Charges for services $ 5,223,071 $ 5,066,591 $ 16,860,275 $ 20,046,222 $ 22,083,346 $ 25,112,813
Operating grants and contributions 5,070,396 4,706,844 5,070,396 4,706,844
Capital grants and contributions 2,456,727 2,919,641 1,979,037 179,675 4,435,764 3,099,316
General revenues:
Sales taxes 16,132,159 15,286,001 16,132,159 15,286,001
Franchise taxes 582,064 571,731 582,064 571,731
Unrestricted state shared revenues 10,413,464 9,636,906 10,413,464 9,636,906
Investment earnings 216,175 255,702 124,887 111,816 341,062 367,518
Total revenues 40,094,056 38,443,416 18,964,199 20,337,713 59,058,255 58,781,129
Expenses:
General government 11,533,702 10,990,007 11,533,702 10,990,007
Public safety 16,587,168 13,814,914 16,587,168 13,814,914
Highways and streets 9,400,140 8,754,110 9,400,140 8,754,110
Transit 1,404,646 1,275,093 1,404,646 1,275,093
Culture and recreation 4,572,490 3,399,623 4,572,490 3,399,623
Interest on long-term debt 439,027 656,260 439,027 656,260
Water 13,608,931 13,572,677 13,608,931 13,572,677
Stormwater drainage 854,510 749,038 854,510 749,038
Total expenses 43,937,173 38,890,007 14,463,441 14,321,715 58,400,614 53,211,722
Transfers 3,119 3,178 (3,119) (3,178)
Changes in net position (3,839,998) (443,413) 4,497,639 6,012,820 657,641 5,569,407
Net position, beginning, as restated 131,746,275 157,143,518 70,453,503 68,303,943 202,199,778 225,447,461
Net position, ending $ 127,906,277 $156,700,105 $ 74,951,142 $ 74,316,763 $ 202,857,419 $ 231,016,868
Total expenses increased $5.2 million, or 10 percent, primarily due to the completion of various
capital projects totaling $3.3 million, such as the on-site health clinic, Aquatic Center parking lot,
purchase of computer system module for permitting functions, upgrade to Town’s phone system,
funding for Children’s Museum Oro Valley, electric utility line undergrounding project, and
completion of Naranja Park. In addition, expenses include $1.2 million in operations and
maintenance costs for the newly acquired community and recreation center.
The increase of $1.6 million in total revenues was largely due to an increase in the local sales tax rate
from 2 percent to 2.5 percent that became effective March 1, 2015 ($850,000), as well as an increase
in year-over-year collections in state shared revenues ($777,000). The revenues from the additional
0.5 percent sales tax increase are dedicated to funding the operations and capital improvement needs
of the Town’s new community and recreation center acquired on May 1, 2015.
Business-type activities charges for services decreased by $3.2 million due to a decrease of $1.2
million in water sales and a decrease of $2.0 million in development impact fees year-over-year due
to the completion of several multi-family housing complex construction projects.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 10
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Business-type activities capital grants and contributions increased by $1.8 million due to loan
proceeds from the Water Infrastructure Finance Authority (WIFA) for the automated meter
replacement program.
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 State and Town’s taxpayers by each of
these functions.
2015 2014
Governmental Activities
Total
Expenses
Net (Expense)/
Revenue
Total
Expenses
Net (Expense)/
Revenue
General government $ 11,533,702 $ (7,800,394) $ 10,990,007 $ (6,861,756)
Public safety 16,587,168 (15,706,629) 13,814,914 (12,711,503)
Highways and streets 9,400,140 (3,661,685) 8,754,110 (3,006,384)
Transit 1,404,646 (141,068) 1,275,093 (28,716)
Culture and recreation 4,572,490 (3,438,176) 3,399,623 (2,932,312)
Interest on long-term debt 439,027 (439,027) 656,260 (656,260)
Total $ 43,937,173 $ (31,186,979) $ 38,890,007 $ (26,196,931)
Business-type Activities
Water $ 13,608,931 $ 4,458,787 $ 13,572,677 $ 5,893,792
Stormwater drainage 854,510 (82,916) 749,038 10,390
Total $ 14,463,441 $ 4,375,871 $ 14,321,715 $ 5,904,182
The cost of all governmental activities this year was $43.9 million. The increase of $5.0
million from the prior year was due primarily to the completion of several capital projects,
such as utility undergrounding costs, roadway widening projects and completion of Naranja
Park improvements, as well as operation and maintenance costs from the newly acquired
community and recreation center.
The cost of all business-type activities this year was $14.5 million. The increase of $432,093
from the prior year was primarily due to a slight increase in operation and maintenance costs.
Federal and State governments, developer contributions, and charges for services subsidized
certain governmental programs and business-type programs with revenues of $31.6 million.
Net cost of governmental activities of $31.2 million was financed by general revenues, which
are made up of primarily sales taxes and state shared revenues of $26.5 million.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 11
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 $20.0 million,
a decrease of $3.0 million. This was primarily due to the completion of several capital projects;
Naranja Park ($700,000), electric utility line undergrounding ($900,000), on-site health clinic
($200,000), Aquatic Center parking lot ($280,000) and the planned use of fund balance in the
Highway User Revenue Fund ($884,000).
The General Fund is the principal operating fund of the Town. The fund balance decreased by $1.4
million in the General Fund to $10.2 million for the current fiscal year due to primarily due to the
authorized transfer of $1.2 million from the General Fund to the Community and Recreation Fund to
fund personnel and operations and maintenance costs for the newly acquired community and
recreation center. In addition, the Mayor and Town Council also authorized a one-time, lump sum
payment of $300,000 toward reducing the Town’s pension liability with the Public Safety Personnel
System.
Proprietary funds. Net position of the Enterprise Funds at the end of the year amounted to $75.0
million. This increased by $4.5 million during the fiscal year to the extent that revenues exceeded
expenses in the fund and from capital contributions from developers.
BUDGETARY HIGHLIGHTS
There were amendments to the Town of Oro Valley’s fiscal year 2014-15 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 unfavorable variance of $499,905 in sales tax revenue was due to lower than anticipated
construction sales tax collections primarily from residential construction. The adopted budget
for fiscal year 2014-15 included the assumption that 200 single family residential (SFR)
building permits would be issued, and only 141 SFR permits were issued during the fiscal
year.
The favorable variance of $170,747 in general government expenditures was a result of
savings in personnel vacancies and operation and maintenance costs in various Town
departments.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 12
BUDGETARY HIGHLIGHTS
The unfavorable variance of $192,102 in culture and recreation expenditures was a result of
an increase in operations and maintenance costs at the Oro Valley Aquatic Center. This is
offset by a favorable variance in user fees collected for aquatic activities.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. At year end, the Town had invested $244.9 million in capital assets (net of
accumulated depreciation), including buildings, facilities, vehicles, computers, equipment, and
infrastructure assets. This amount represents a net increase of $3.1 million from last year. This was
primarily due to the purchase of the El Conquistador Country Club, repaving projects, park
improvements, and expansion of the Town's water system, as well as depreciation expense of $11.8
million.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2015 and
June 30, 2014.
Governmental Activities
As of
June 30, 2015
As of
June 30, 2014
Land $ 19,253,801 $ 18,878,468
Infrastructure 166,966,180 165,954,674
Buildings and improvements 28,715,296 25,018,388
Machinery, equipment, and vehicles 14,436,773 12,853,856
Construction in progress 3,414,286 1,853,653
Less: Accumulated depreciation (88,716,851) (80,961,174)
Total $ 144,069,485 $143,597,865
Business-type Activities
Land $ 2,410,660 $ 2,410,660
Water rights 8,534,490 8,534,490
Water system 120,915,619 114,922,175
Stormwater system 2,846,177 2,779,503
Equipment and vehicles 5,054,493 4,467,875
Construction in progress 457,559 1,297,414
Less: Accumulated depreciation (39,388,117) (36,190,485)
Total $ 100,830,881 $ 98,221,632
Additional information on the Town’s capital assets can be found in Note 6.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 13
CAPITAL ASSETS AND DEBT ADMINISTRATION
Debt Administration. At year end, the Town had $54.5 million in long-term debt outstanding, $4.7
million due within one year. The following table presents a summary of the Town’s outstanding
long-term debt for the fiscal years ended June 30, 2015 and June 30, 2014.
Governmental Activities 2015 2014
Revenue bonds $ 8,179,610 $ 8,659,050
Special assessment bonds 925,000 1,055,000
Note payable 1,000,000
Capital leases 128,594 168,994
Total $ 10,233,204 $ 9,883,044
Business-type Activities
Revenue bonds $ 35,985,390 $ 38,980,950
Loan payable 8,169,765 6,376,774
Capital leases 118,862 93,593
Total $ 44,274,017 $ 45,451,317
State statutes currently limit the amount of general obligation debt a Town may issue to 20 percent of
its total assessed valuation for water, sewer, lights, open space preserves, parks, playgrounds and
recreational facilities. The current debt limitation for the Town is $121.2 million.
The Town of Oro Valley has a bond rating of “AA-” rating from both Standard & Poor’s and Fitch
Ratings on its excise tax revenue bonds and an “AA” rating from Standard & Poor’s on outstanding
water revenue bonds.
Additional information on the Town’s long-term debt can be found in Notes 7 through 11.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The unemployment rate for the Town of Oro Valley is currently 5.2 percent. Pima County’s
and the State of Arizona’s unemployment rates are 5.9 percent and 5.9 percent, respectively.
The Town’s secondary assessed valuation for the current year is $560,863,509.
Single family residential (SFR) building permits issued in this fiscal year totaled 141, as
compared to 136 SFR building permits issued last fiscal year. Projections for SFR building
permits are 200 for fiscal year 2015-16.
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2015
Page 14
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The adopted combined operating and capital expenditure budget for fiscal year 2015-16 totals $119.7
million, an increase of $12.6 million, or 12 percent over last year’s budget of $107.1 million. This
increase is primarily attributed to increased outside funding from regional sources for roadway
widening projects and the addition of the newly acquired community and recreation center operations
to the town budget. The budget for fiscal year 2015-16 continues to place emphasis on the following:
objectives in the town’s updated Strategic Plan: fiscal responsibility; communication; economic
development; parks, recreation and cultural development; and community infrastructure and services.
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 15
BASIC FINANCIAL STATEMENTS
Page 16
(This page intentionally left blank)
Page 17
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Page 18
(This page intentionally left blank)
ASSETS
Current assets:
Cash and cash equivalents
Taxes receivable
Accounts receivable
Intergovernmental receivable
Special assessments
Inventories
Prepaid items
Total current assets
Noncurrent assets:
Capital assets, non-depreciable
Capital assets, depreciable (net)
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding
Pension plan items
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Accrued wages and benefits
Intergovernmental payable
Interest payable
Unearned revenue
Customer deposits payable
Other accrued liabilities
Note payable
Compensated absences
Capital leases payable
Loans payable
Bonds payable
Total current liabilities
Noncurrent liabilities:
Non-current portion of long-term obligations
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension plan items
NET POSITION
Net investment in capital assets
Restricted for:
Public safety
Capital outlay
Debt service
Unrestricted
Total net position
Governmental
Activities
$24,410,773
777,989
508,278
1,117,608
925,000
149,348
31,278
27,920,274
22,668,087
121,401,398
144,069,485
171,989,759
123,753
5,714,166
5,837,919
3,121,502
1,760,188
237,378
402,560
189,178
822,049
300,000
1,579,271
41,608
665,920
9,119,654
36,786,115
36,786,115
45,905,769
4,015,632
133,800,218
264,386
3,166,835
168,745
(9,493,907)
$127,906,277
Business-type
Activities
$23,143,367
1,961,700
137,499
25,242,566
11,402,709
89,428,171
100,830,880
126,073,446
1,923,123
431,552
2,354,675
341,826
177,710
1,133,374
802,628
533,123
193,768
38,439
556,811
3,054,080
6,831,759
45,920,967
45,920,967
52,752,726
724,253
54,858,448
20,092,694
$74,951,142
Total
$47,554,140
777,989
2,469,978
1,117,608
925,000
149,348
168,777
53,162,840
34,070,796
210,829,569
244,900,365
298,063,205
2,046,876
6,145,718
8,192,594
3,463,328
1,937,898
1,370,752
802,628
402,560
722,301
822,049
300,000
1,773,039
80,047
556,811
3,720,000
15,951,413
82,707,082
82,707,082
98,658,495
4,739,885
188,658,666
264,386
3,166,835
168,745
10,598,787
$202,857,419
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2015
The notes to the basic financial statements are an integral part of this statement.
Page 19
Program Revenues
Net (Expense)
Revenue and
Changes in Net
Position
Functions/Programs
Primary Government
Governmental activities:
General government
Public safety
Highway and streets
Transit
Culture and recreation
Interest on long-term debt
Total governmental activities
Business-type activities:
Water
Stormwater drainage
Total business-type activities
Total primary government
Expenses
$ 11,533,702
16,587,168
9,400,140
1,404,646
4,572,490
439,027
43,937,173
13,608,931
854,510
14,463,441
$58,400,614
Charges for
Services
$ 3,516,359
29,097
496,098
72,783
1,108,734
5,223,071
16,088,681
771,594
16,860,275
$22,083,346
Operating
Grants and
Contributions
$ 216,949
678,092
2,958,980
1,190,795
25,580
5,070,396
$5,070,396
Capital Grants
and
Contributions
$
173,350
2,283,377
2,456,727
1,979,037
1,979,037
$4,435,764
Governmental
Activities
$ (7,800,394)
(15,706,629)
(3,661,685)
(141,068)
(3,438,176)
(439,027)
(31,186,979)
(31,186,979)
General revenues:
Taxes:
Sales taxes
Franchise taxes
Unrestricted state shared revenues
Investment earnings
Transfers
Total general revenues and transfers
Changes in net position
Net position, beginning of year, as restated
Net position, end of year
16,132,159
582,064
10,413,464
216,175
3,119
27,346,981
(3,839,998)
131,746,275
$127,906,277
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2015
Page 20
The notes to the basic financial statements are an integral part of this statement.
Net (Expense) Revenue and
Changes in Net Position
Business-type
Activities
$
4,458,787
(82,916)
4,375,871
4,375,871
Totals
$ (7,800,394)
(15,706,629)
(3,661,685)
(141,068)
(3,438,176)
(439,027)
(31,186,979)
4,458,787
(82,916)
4,375,871
(26,811,108)
124,887
(3,119)
121,768
4,497,639
70,453,503
$74,951,142
16,132,159
582,064
10,413,464
341,062
27,468,749
657,641
202,199,778
$202,857,419
Page 21
Page 22
(This page intentionally left blank)
Page 23
FUND FINANCIAL STATEMENTS
ASSETS
Cash and cash equivalents
Taxes receivable
Accounts receivable
Intergovernmental receivable
Special assessments
Inventories
Prepaid items
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Intergovernmental payable
Sales tax payable
Unearned revenue
Customer deposits payable
Other accrued liabilities
Total liabilities
Deferred inflows of resources:
Unavailable revenues - special assessments
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
General Fund
$11,640,382
777,989
317,723
514,972
31,278
$13,282,344
$552,169
1,659,940
237,378
305,915
185,889
189,178
3,130,469
31,278
1,553,999
8,566,598
10,151,875
$13,282,344
Non-Major
Governmental
Funds
$12,038,502
190,555
602,636
925,000
149,348
$13,906,041
$2,502,009
100,248
216,671
353,433
3,172,361
925,000
149,348
3,599,966
4,637,773
1,421,593
9,808,680
$13,906,041
Total
Governmental
Funds
$23,678,884
777,989
508,278
1,117,608
925,000
149,348
31,278
$27,188,385
$3,054,178
1,760,188
237,378
305,915
402,560
189,178
353,433
6,302,830
925,000
180,626
3,599,966
4,637,773
2,975,592
8,566,598
19,960,555
$27,188,385
TOWN OF ORO VALLEY, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2015
Page 24
The notes to the basic financial statements are an integral part of this statement.
Total governmental fund balances 19,960,555$
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Governmental capital assets 232,786,336$
Less accumulated depreciation (88,716,851) 144,069,485
Special assessments receivable are not available to pay for current period
expenditures and therefore are reported as unavailable revenue in the funds. 925,000
Deferred items related to the issuance of bonds are amortized over the life of
the associated issuance in the government-wide statements but not
reported in the funds.
Deferred bond charges 123,753
Deferred bond premium (36,063) 87,690
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 5,714,166
Deferred inflows of resources related to pensions (4,015,632) 1,698,534
The Internal Service Funds are used by management to charge the cost of
services to the individual funds. The assets and liabilities of the Internal
Service Funds are included in the Statement of Net Position. 405,186
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds.
Special assessment bonds (925,000)
Revenue bonds (8,179,610)
Note payable (1,000,000)
Capital leases (128,594)
Net pension liability (26,982,262)
Compensated absences (2,024,707) (39,240,173)
Net position of governmental activities 127,906,277$
TOWN OF ORO VALLEY, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2015
Page 25 The notes to the basic financial statements are integral part of this statement.
Revenues:
Sales taxes
Franchise taxes
Development impact fees
Special assessments
Intergovernmental
Licenses, fees & permits
Fines, forfeitures & penalties
Charges for services
Investment earnings
Other
Total revenues
Expenditures:
Current -
General government
Public safety
Highway and streets
Transit
Culture and recreation
Capital outlay
Debt service -
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
General Fund
$14,637,000
582,064
12,456,454
1,551,289
1,850
2,341,850
168,749
31,739,256
10,233,468
14,737,153
1,404,646
2,914,719
40,400
5,053
29,335,439
2,403,817
185,000
(3,970,965)
(3,785,965)
(1,382,148)
11,534,023
$10,151,875
Non-Major
Governmental
Funds
$1,495,159
439,637
178,078
5,258,537
54,648
219,721
649,976
47,426
141,618
8,484,800
629,085
334,243
2,602,321
1,164,098
8,093,704
609,440
430,957
13,863,848
(5,379,048)
4,141,627
(352,543)
3,789,084
(1,589,964)
11,398,644
$9,808,680
Total
Governmental
Funds
$16,132,159
582,064
439,637
178,078
17,714,991
1,605,937
221,571
2,991,826
216,175
141,618
40,224,056
10,862,553
15,071,396
2,602,321
1,404,646
4,078,817
8,093,704
649,840
436,010
43,199,287
(2,975,231)
4,326,627
(4,323,508)
3,119
(2,972,112)
22,932,667
$19,960,555
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2015
Page 26
The notes to the basic financial statements are an integral part of this statement.
Net changes in fund balances - total governmental funds (2,972,112)$
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities,
the cost of those assets is allocated over their estimated useful lives as depreciation expense.
Expenditures for capital assets 8,958,475$
Less current year depreciation (8,462,938) 495,537
Special assessment revenues in the Statement of Activities do not provide current financial resources
and therefore are not reported as revenues in the governmental funds. (130,000)
Repayment of 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 40,400
Revenue bond principal retirement 479,440
Special assessment bond principal retirement 130,000 649,840
Issuance of obligations under note payables provide current financial resources to governmental
funds, but the issuance increases long term liabilities in the Statement of Net Position. (1,000,000)
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.
Current year pension contributions 2,365,755
Pension expense (2,794,180) (428,425)
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.
Amortization of premium on long-term debt 8,315
Amortization of deferred charge on refunded debt (11,332)
Loss on disposal of capital assets (23,917)
Compensated absences (262,160) (289,094)
The Internal Service Funds are used by management to charge the cost of services to the
individual funds. The changes in net position of the Internal Service Funds are reported with
governmental activities in the Statement of Activities. (165,744)
Change in net position in governmental activities (3,839,998)$
YEAR ENDED JUNE 30, 2015
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
The notes to the basic financial statements are integral part of this statement.
TOWN OF ORO VALLEY, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
Page 27
Enterprise Funds
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable
Prepaid items
Total current assets
Noncurrent assets:
Capital assets, non-depreciable
Capital assets, depreciable (net)
Total noncurrent assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding
Pension plan items
Total deferred outflows of resources
LIABILITIES
Current liabilities:
Accounts payable
Accrued wages and benefits
Intergovernmental payable
Interest payable
Customer deposits payable
Compensated absences
Capital leases payable
Loans payable
Bonds payable
Claims payable
Total current liabilities
Noncurrent liabilities:
Non-current portion of long-term obligations
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension plan items
NET POSITION
Net investment in capital assets
Unrestricted
Total net position
Water
$22,843,523
1,866,198
137,499
24,847,220
11,402,709
86,136,370
97,539,079
122,386,299
1,923,123
387,196
2,310,319
340,891
157,219
1,133,374
802,628
533,123
179,584
556,811
3,054,080
6,757,710
45,473,697
45,473,697
52,231,407
649,812
51,685,509
20,129,890
$71,815,399
Non-Major
Enterprise Funds
$299,844
95,502
395,346
3,291,801
3,291,801
3,687,147
44,356
44,356
935
20,491
14,184
38,439
74,049
447,270
447,270
521,319
74,441
3,172,939
(37,196)
$3,135,743
Totals
$23,143,367
1,961,700
137,499
25,242,566
11,402,709
89,428,171
100,830,880
126,073,446
1,923,123
431,552
2,354,675
341,826
177,710
1,133,374
802,628
533,123
193,768
38,439
556,811
3,054,080
6,831,759
45,920,967
45,920,967
52,752,726
724,253
54,858,448
20,092,694
$74,951,142
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2015
Page 28
The notes to the basic financial statements are an integral part of this statement.
Governmental
Activities:
Internal Service
Funds
$731,889
731,889
731,889
11,006
11,006
67,324
162,701
230,025
89,213
89,213
319,238
18,471
405,186
$405,186
Page 29
Enterprise Funds
Operating revenues:
Charges for services
Other
Self insurance premiums
Total operating revenues
Operating expenses:
Costs of sales and services
Depreciation and amortization
Claims payments
Administrative fees
Reinsurance premiums
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Development impact fees
Connection fees
Investment earnings
Interest expense
Total nonoperating revenues (expenses)
Income (loss) before capital contributions and transfers
Capital contributions
Transfers out
Changes in net position
Total net position, beginning of year, as restated
Total net position, end of year
Water
$14,271,442
54,024
14,325,466
8,865,253
3,174,709
12,039,962
2,285,504
1,172,170
591,045
124,593
(1,568,969)
318,839
2,604,343
1,979,037
(3,119)
4,580,261
67,235,138
$71,815,399
Non-Major
Enterprise Funds
$771,578
16
771,594
703,423
151,087
854,510
(82,916)
294
294
(82,622)
(82,622)
3,218,365
$3,135,743
Totals
$15,043,020
54,040
15,097,060
9,568,676
3,325,796
12,894,472
2,202,588
1,172,170
591,045
124,887
(1,568,969)
319,133
2,521,721
1,979,037
(3,119)
4,497,639
70,453,503
$74,951,142
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION -
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
Page 30
The notes to the basic financial statements are an integral part of this statement.
Governmental
Activities: Internal
Service Funds
$1,409,174
46,936
2,486,095
3,942,205
1,325,240
2,168,380
57,000
557,329
4,107,949
(165,744)
(165,744)
(165,744)
570,930
$405,186
Page 31
Governmental
Activities
Water
Non-Major
Enterprise Funds Total
Internal Service
Funds
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from customers 14,690,326$ 764,194$ 15,454,520$ 1,456,110$
Cash received from premiums 2,486,095
Cash payments to suppliers for goods and services (6,990,867) (18,468) (7,009,335) (1,837,190)
Cash payments to employees for services (2,821,306) (694,857) (3,516,163) (81,242)
Cash payments for claims (2,168,380)
Net cash provided by operating activities 4,878,153 50,869 4,929,022 (144,607)
Cash flows from noncapital and related financing activities:
Interfund transfers (3,119) (3,119)
Connection fees 591,045 591,045
Net cash provided by noncapital financing activities 587,926 587,926
Cash flows from capital and related financing activities:
Development impact fees 1,172,170 1,172,170
Acquisition of capital assets (3,581,621) (58,966) (3,640,587)
Proceeds from loans 2,353,843 2,353,843
Principal paid on long-term debt (3,556,411) (209,093) (3,765,504)
Interest on long-term debt (1,573,911) (1,573,911)
Net cash used for capital and related
financing activities (5,185,930) (268,059) (5,453,989)
Cash flows from investing activities:
Investment income 124,593 294 124,887
Net cash provided by investing activities 124,593 294 124,887
Net increase in cash and cash equivalents 404,742 (216,896) 187,846 (144,607)
Cash and cash equivalents, beginning of year 22,438,781 516,740 22,955,521 876,496
Cash and cash equivalents, end of year 22,843,523$ 299,844$ 23,143,367$ 731,889$
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used for) Operating Activities
Operating income (loss)2,285,504$ (82,916)$ 2,202,588$ (165,744)$
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization 3,174,709 151,087 3,325,796
Change in assets and liabilities:
Accounts receivable 250,718 (7,400) 243,318
Prepaid items (135,499) (135,499)
Accounts payable (811,569) (18,468) (830,037) (44,160)
Claims payable 67,146
Accrued payroll and employee benefits 54,461 7,225 61,686
Compensated absences payable 10,746 8,794 19,540
Deposits held for others 114,143 114,143
Pension items (65,060) (7,453) (72,513) (1,849)
Total adjustments 2,592,649 133,785 2,726,434 21,137
Net cash provided by (used for) operating activities 4,878,153$ 50,869$ 4,929,022$ (144,607)$
Non-cash capital and financing activities
Contribution of assets from developers 1,979,037$ $ 1,979,037$
Capital lease agreements 234,362 234,362
Enterprise Funds
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
Page 32 The notes to the basic financial statements are an integral part of this statement.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 33
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.
During the year ended June 30, 2015, the Town implemented the provisions of GASB
Statement No. 68, Accounting and Financial Reporting for Pensions, as amended by GASB
Statement No. 71, Pension Transition for Contributions Made Subsequent to the
Measurement Date. This Statement requires governments providing defined benefit pensions
to recognize the long-term obligation for pension benefits as a liability, and to more
comprehensively and comparably measure the annual costs of pension benefits. This
Statement also enhances accountability and transparency through revised note disclosures and
new required supplementary information.
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. As required by
accounting principles generally accepted in the United States of America, these financial
statements present the Town and its component units, entities for which the Town is
considered to be financially accountable. Blended component units, although legally separate
entities, are, in substance, part of the Town’s operations and so data from these units are
combined with data of the Town, the primary government. The blended component units
presented have a June 30 year end.
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, component units combined with the Town for
financial statement presentation purposes, and the Town, are 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.
Blended Component Unit – The financial reporting entity presented in these financial
statements consists of the Town and one blended component unit. This component unit,
discussed below, is included in the Town’s reporting entity because of the significance of its
operational relationship or financial relationship with the Town. The component unit is
governed by a board, substantially or wholly, comprised of the Town’s elected council.
Separate financial statements are not prepared for the component unit on a stand-alone basis.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 34
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Oro Valley Municipal Property Corporation’s (MPC) Board of Directors
consists of the three members which are appointed by the Town of Oro Valley Town Council.
The MPC, a non-profit corporation incorporated under the laws of the State of Arizona, was
originally formed for the purpose of assisting the Town in obtaining financing for acquiring
the Cañada Hills and Rancho Vistoso water companies. The Town has a contractual
obligation for the repayment of the MPC’s Excise Tax Refunding Bonds, Series 2007. The
activity of the 2007 MPC is reported in the applicable water enterprise and governmental
funds. All related receivables and payables between the Town and the MPC have been
eliminated.
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 activities of the Town and its component units. 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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 35
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
Grants and similar awards are recognized as revenue as soon as all eligibility requirements
imposed by the grantor or provider have been met. 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, economic development, 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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 36
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Town reports the following major governmental fund.
General Fund – This fund accounts for all financial resources of the Town, except those
required to be accounted for in other funds.
The Town reports the following major proprietary funds.
Water Fund – This fund accounts for the costs to operate, construct and finance the
Town’s water system.
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 are charges for health
benefits and charges to user departments for fleet maintenance services. The principal
operating revenues of the Town’s enterprise fund 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.
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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 37
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 trade 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
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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 38
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
I. Capital Assets
Capital assets, which include property, plant, and equipment, 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. Such assets are recorded
at historical cost or estimated historical cost if actual historical cost is not available. Donated
capital assets are recorded at estimated fair market 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.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed.
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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 39
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the
pension plan’s fiduciary net position and additions to/deductions from the plan’s 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 financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable business-
type activities and proprietary fund type statement of net position.
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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 40
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
NOTE 2 – 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 any legal provisions.
NOTE 3 – 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 legally or contractually required to be
maintained intact.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 41
NOTE 3 – FUND BALANCE CLASSIFICATIONS
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 Bed Tax Fund is to be used for local economic development
purposes. The committed fund balance reported in the Highway User Revenue Fund is to be
used for roadway maintenance and preservation purposes. The committed fund balance
reported in the Townwide Facilities Projects Fund is used for improvements to Town parks.
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)11-30, which
amended the Town Financial and Budgetary Policies. The assigned fund balance in the
General Fund is set aside for the payout of compensated absences and for unemployment
compensation claims. 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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 42
NOTE 3 – FUND BALANCE CLASSIFICATIONS
The table below provides detail of the major components of the Town’s fund balance
classifications at year end.
General
Fund
Non-Major
Governmental
Funds
Fund Balances:
Nonspendable:
Inventory $ $ 149,348
Prepaid items 31,278
Restricted:
Debt service 168,745
Capital projects 3,166,835
Public safety 264,386
Committed 4,637,773
Assigned:
Compensated absences 1,356,608
Unemployment claims 197,391
Townwide capital 1,421,593
Unassigned 8,566,598
Total fund balances $ 10,151,875 $ 9,808,680
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.
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 not required to register (and 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.
No regulatory oversight is provided for the County Treasurer’s investment pool and that
pool’s structure does not provide for shares.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 43
NOTE 4 – CASH AND INVESTMENTS
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.
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 $2,879,201 and the bank balance was $1,697,304.
At year end, the Town’s investments consisted of the following:
Investments Maturities
(in Years)
Investment Type Fair Value Less than 1 1-5
Money Market - U.S. Treasuries $ 4,889,890 $ 4,889,890 $
Municipal Securities 230,660 230,660
Commercial Paper 1,448,690 1,448,690
U.S. Treasury Bonds/Notes 28,339,147 709,843 27,629,304
U.S. Agencies Bonds/Notes 5,143,732 5,143,732
$ 7,048,423 $ 33,003,696
County Treasurer’s investment pool 401,570 223 days average maturities
State Treasurer’s investment pool 5 4,221,250 40 days average maturities
Total $44,674,939
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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 44
NOTE 4 – CASH AND INVESTMENTS
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 if 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.
As of year end, the Town’s investment in the State and County Treasurers’ investment pools
did not receive a credit quality rating from a national rating agency. The State Treasurer’s
investment pool 5 was rated AAAF/S1+ by Standard and Poor’s at year end. The Town’s
investments in U.S. agencies, municipal bonds, and commercial paper were rated AA+,
AAA, and A-1 respectively, by Standard and Poor’s.
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.
Concentration of Credit Risk. The Town places no limit on the amount the Town may invest
in any one issuer. More than five percent of the Town’s investments are in Federal Home
Loan Mortgage Corporation notes, which make up five percent of the Town’s total
investments.
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 fund in the aggregate, were as follows:
General
Fund
Non-Major
Governmental
Funds
Intergovernmental receivables:
Due from federal government $ 117,115 $
Due from state government 397,857 273,882
Due from other governments 328,754
Net intergovernmental receivables $ 514,972 $ 602,636
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 45
NOTE 6 – CAPITAL ASSETS
A summary of capital asset activity for the current fiscal year follows:
Governmental Activities
Beginning
Balance Increase Decrease
Ending
Balance
Capital assets, not being depreciated:
Land $ 18,878,468 $ 375,333 $ $ 19,253,801
Construction in progress 1,853,653 3,070,079 1,509,446 3,414,286
Total capital assets, not being depreciated 20,732,121 3,445,412 1,509,446 22,668,087
Capital assets, being depreciated:
Infrastructure 165,954,674 1,011,506 166,966,180
Buildings and improvements 25,018,388 3,711,618 14,710 28,715,296
Machinery, equipment, and vehicles 12,853,856 2,299,385 716,468 14,436,773
Total capital assets being depreciated 203,826,918 7,022,509 731,178 210,118,249
Less accumulated depreciation for:
Infrastructure (67,366,548) (6,431,907) (73,798,455)
Buildings and improvements (4,986,493) (665,673) (25) (5,652,141)
Machinery, equipment, and vehicles (8,608,133) (1,365,358) (707,236) (9,266,255)
Total accumulated depreciation (80,961,174) (8,462,938) (707,261) (88,716,851)
Total capital assets, being depreciated, net 122,865,744 (1,440,429) 23,917 121,401,398
Governmental activities capital assets, net $ 143,597,865 $ 2,004,983 $ 1,533,363 $ 144,069,485
Business-Type Activities
Beginning
Balance Increase Decrease
Ending
Balance
Capital assets, not being depreciated:
Land $ 2,410,660 $ $ $ 2,410,660
Water rights 8,534,490 8,534,490
Construction in progress 1,297,414 342,724 1,182,579 457,559
Total capital assets, not being depreciated 12,242,564 342,724 1,182,579 11,402,709
Capital assets, being depreciated:
Water system 114,922,175 5,993,444 120,915,619
Stormwater system 2,779,503 66,674 2,846,177
Equipment and vehicles 4,467,875 616,136 29,519 5,054,492
Total capital assets being depreciated 122,169,553 6,676,254 29,519 128,816,288
Less accumulated depreciation for:
Water system (32,898,940) (2,886,515) (35,785,455)
Stormwater system (251,227) (60,123) (311,350)
Equipment and vehicles (3,040,318) (274,890) (23,896) (3,291,312)
Total accumulated depreciation (36,190,485) (3,221,528) (23,896) (39,388,117)
Total capital assets, being depreciated, net 85,979,068 3,454,726 5,623 89,428,171
Business-type activities capital assets, net $ 98,221,632 $ 3,797,450 $ 1,188,202 $ 100,830,880
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 46
NOTE 6 – CAPITAL ASSETS
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $ 618,730
Public Safety 579,208
Highways and streets 6,759,864
Culture and recreation 505,136
Total depreciation expense – governmental activities 8,462,938
Business-type activities:
Water 3,070,442
Stormwater 151,086
Total depreciation expense –business-type activities $3,221,528
Construction Commitments – As of year end, the Town was involved in several
construction projects. The estimated cost to complete the construction projects is $5.5 million.
NOTE 7 – LOANS PAYABLE
The Town has loans from the Water Infrastructure Finance Authority of Arizona for water
system projects. The loans payable at current fiscal year end are presented below.
Business-type activities:
Interest Rate
(Including
Fees)
Remaining
Maturities
Outstanding
Principal
June 30, 2015
Due Within
One Year
WIFA Loan, 2007 2.04% 7/1/15-27 $ 3,235,941 $ 205,999
WIFA Loan, 2009 2.75% 7/1/15-29 1,777,300 94,462
WIFA Loan, 2014 2.65% 7/1/15-25 3,156,524 256,350
Total $ 8,169,765 $ 556,811
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 47
NOTE 7 – LOANS PAYABLE
Principal and interest payments on the business-type activities loans payable at June 30, 2015
are summarized as follows:
Business-type Activities
Year ending June 30: Principal Interest
2016 $ 556,811 $ 277,869
2017 577,857 310,070
2018 599,707 283,952
2019 622,395 256,817
2020 645,949 228,629
2021-25 3,615,883 680,485
2026-30 1,551,163 96,853
Total $ 8,169,765 $ 2,134,675
NOTE 8 – 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 and Impact Fees are used to pay bonded debt.
Purpose
Original
Amount
Issued
Interest
Rates
Remaining
Maturities
Outstanding
Principal
June 30, 2015
Due Within
One Year
Governmental activities:
Revenue Bonds, 2005 $ 4,164,050 3.50-4.25% 7/1/15-25 $ 2,690,050 $ 201,000
Refunding Revenue Bonds, 2007 1,389,180 4.25-5.00% 7/1/15-26 1,249,560 49,920
Excise Tax Revenue Obligations, 2010 2,445,000 3.72-6.59% 7/1/15-27 1,915,000 135,000
Revenue Bonds, 2012 2,580,000 2.00-4.00% 7/1/15-27 2,325,000 145,000
Total $ 8,179,610 $ 530,920
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 48
NOTE 8 – BONDS PAYABLE
Annual debt service requirements to maturity on revenue and refunding bonds for
governmental activities at year end are summarized as follows:
Governmental Activities
Year ending June 30: Principal Interest
2016 $ 530,920 $ 350,711
2017 539,960 330,665
2018 554,000 308,392
2019 581,390 283,392
2020 599,560 257,109
2021-25 3,661,090 813,377
2026-28 1,712,690 102,727
Total $ 8,179,610 $ 2,446,373
Purpose
Original
Amount
Issued
Interest
Rates
Remaining
Maturities
Outstanding
Principal
June 30, 2015
Due Within
One Year
Business-type activities:
Revenue Bonds, 2005 $ 2,050,950 3.50-4.25% 7/1/15-25 $ 1,324,950 $ 99,000
Refunding Revenue Bonds, 2007 16,420,820 4.25-5.00% 7/1/15-26 14,770,440 590,080
Refunding Revenue Bonds, 2012 16,595,000 2.00-5.00% 7/1/15-28 14,955,000 1,390,000
Refunding Revenue Bonds, 2013 6,355,000 1.45% 7/1/15-19 4,935,000 975,000
Total $ 35,985,390 $ 3,054,080
Annual debt service requirements to maturity revenue and refunding bonds for business-type
activities at year end are summarized as follows:
Business-type Activities
Year ending June 30: Principal Interest
2016 $ 3,054,080 $ 1,322,821
2017 3,155,040 1,236,878
2018 3,231,000 1,152,362
2019 3,323,610 1,047,297
2020 3,440,440 930,527
2021-25 14,798,910 2,434,493
2026-29 4,982,310 346,033
Total $ 35,985,390 $ 8,470,411
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 49
NOTE 8 – BONDS PAYABLE
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, 2015. 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 2028. 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 $10.6 million. The current total sales tax revenues were $16.1 million and the total
principal and interest paid on the bonds was $847,431, or 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 $36.0 million as of
June 30, 2015. 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 2029. 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 $44.5 million. The current total customer
gross revenues were $16.1 million and the total principal and interest paid on the bonds was
$4.3 million or 27 percent of gross revenues.
NOTE 9 – SPECIAL ASSESSMENT BONDS
Special assessment bonds at year end consisted of the following outstanding bonds. The
bonds are both callable and noncallable with interest payable semiannually. Special
assessments from the Oracle Road Debt Service Fund are used to pay bonded debt.
Purpose
Original
Amount
Issued
Interest
Rates
Remaining
Maturities
Outstanding
Principal
June 30, 2015
Due
Within
One Year
Governmental activities:
Special assessments debt $3,945,000 4.30-5.00% 1/1/16-21 $ 925,000 $ 135,000
Total $ 925,000 $ 135,000
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 50
NOTE 9 – SPECIAL ASSESSMENT BONDS
Annual debt service requirements to maturity on special assessment bonds at year end are
summarized as follows:
Governmental Activities
Year ending June 30: Principal Interest
2016 $ 135,000 $ 40,152
2017 145,000 33,557
2018 150,000 26,520
2019 160,000 19,428
2020 165,000 11,911
2021 170,000 4,037
Total $ 925,000 $ 135,605
NOTE 10 – OBLIGATIONS UNDER CAPITAL LEASES
The governmental activities of the Town have acquired police motorcycles under the
provisions of long-term lease agreements classified as capital leases. The lease agreements
qualify as capital leases for accounting purposes and, therefore, have been recorded at the
present value of their future minimum lease payments as of the inception date. Revenues
from the Federal Seizures and Forfeitures Fund are used to pay the capital lease obligations.
Amortization of assets recorded under capital leases is included with depreciation expense.
Governmental
Activities
Asset:
Vehicles $ 212,895
Less: Accumulated depreciation 59,024
Total $ 153,871
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 51
NOTE 10 – OBLIGATIONS UNDER CAPITAL LEASES
The future minimum lease obligations and the net present value of these minimum lease
payments at year end were as follows:
Year Ending June 30:
Governmental
Activities
2016 $ 45,453
2017 45,453
2018 45,453
Total minimum lease payments 136,359
Less: amount representing interest 7,764
Present value of minimum lease payments $ 128,595
Due within one year $ 41,608
The business-type activities of the Town have acquired a wheel loader under the provisions
of a long-term lease agreement classified as a capital lease. The lease agreement qualifies as
a capital lease for accounting purposes and, therefore, has been recorded at the present value
of its future minimum lease payments as of the inception date. Revenues from the
Stormwater Fund are used to pay the capital lease obligations. Amortization of assets
recorded under capital leases is included with depreciation expense.
The assets capitalized and acquired through capital leases are as follows:
Business-type
Activities
Asset:
Machinery, equipment, and vehicles $ 234,362
Less: Accumulated depreciation 18,028
Total $ 216,334
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 52
NOTE 10 – OBLIGATIONS UNDER CAPITAL LEASES
The future minimum lease obligations and the net present value of these minimum lease
payments at year end were as follows:
Year Ending June 30:
Business-type
Activities
2016 $ 42,055
2017 42,055
2018 42,055
Total minimum lease payments 126,165
Less: amount representing interest 7,303
Present value of minimum lease payments $ 118,862
Due within one year $ 38,439
NOTE 11 – CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the current fiscal year was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Governmental activities:
Revenue bonds payable $ 8,659,050 $ $ 479,440 $ 8,179,610 $ 530,920
Bond premium 44,378 8,315 36,063
Total bonds payable 8,703,428 487,755 8,215,673 530,920
Special assessments payable 1,055,000 130,000 925,000 135,000
Note payable 1,000,000 1,000,000 300,000
Capital leases payable 168,994 40,400 128,594 41,608
Net pension liability 24,953,830 2,125,110 27,078,940
Compensated absences payable 1,762,547 1,613,713 1,351,553 2,024,707 1,579,271
Governmental activity long-term
liabilities $ 36,643,799 $ 4,738,823 $ 2,009,708 $ 39,372,914 $ 2,586,799
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 53
NOTE 11 – CHANGES IN LONG-TERM LIABILITIES
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Business-type activities:
Revenue bonds payable $ 38,980,950 $ $ 2,995,560 $ 35,985,390 $ 3,054,080
Deferred bond premium 1,830,293 131,878 1,698,415
Total bonds payable 40,811,243 3,127,438 37,683,805 3,054,080
Loan payable 6,376,774 2,353,843 560,852 8,169,765 556,811
Capital leases payable 93,593 234,362 209,093 118,862 38,439
Net pension liability 3,863,260 365,214 3,498,046
Compensated absences payable 291,634 253,361 251,408 293,587 193,768
Business-type activities long-term
liabilities $ 51,436,504 $ 2,841,566 $ 4,514,005 $ 49,764,065 $ 3,843,098
NOTE 12 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Interfund transfers:
Transfers in
Transfers out
General
Fund
Non-Major
Governmental
Funds Total
General Fund $ $ 3,970,965 3,970,965
Non-Major Governmental Funds 185,000 167,543 352,543
Water Fund 3,119 3,119
Total $ 185,000 $ 4,141,627 4,326,627
Transfers were made from the General, Bed Tax, and Water Funds to the Municipal Debt
Service Fund for debt service. In addition, transfers were made from the General Fund to the
General Government CIP Fund to fund capital projects for the upcoming fiscal year,
2015-16. Transfers were also made from the General Fund to the Community Center Fund to
fund the operations of the new community and recreation center. Finally, transfers were
made from the Bed Tax Fund to the General Fund to subsidize the operating costs related to
the Aquatics Center.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 54
NOTE 13 – 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.
NOTE 14 – 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 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
$125,000 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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 55
NOTE 14 – RISK MANAGEMENT
The Town limits its exposure through specific and aggregate stop-loss coverage. All claims
handling procedures are performed by a third-party claims administrator. Reported unpaid
claims, as well as incurred but not reported claims, have been accrued as a liability based
upon monthly claims lag summary reports. These claims are expected to be fully paid within
one year of the financial statement date.
Claims
Payable
Beginning of
Year
Current Year
Claims and
Changes in
Estimates
Claim
Payments
Claims
Payable at
End of Year
2014-15 $ 95,555 $ 1,951,936 $ 1,884,790 $ 162,701
2013-14 87,134 1,592,726 1,584,305 95,555
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
The Town contributes to the pension plans described below. The plans are component units
of the State of Arizona.
The Town reported $2.4 million of pension expenditures in the governmental funds and
$260,000 in enterprise funds related to all pension plans to which it contributes.
A. Arizona State Retirement System
Plan Description. Town employees not covered by the other pension plans described after
this section 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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 56
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
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.
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 11.60 percent (11.48 percent for retirement and 0.12 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 11.60 percent (10.89 percent for
retirement, 0.59 percent for health insurance premium benefit, and 0.12 percent for long-term
disability) of the members’ annual covered payroll. The Town’s contributions to the pension
plan for the year ended June 30, 2015 were $1.2 million.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 57
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
The Town’s contributions for the current and two preceding years for the Arizona State
Retirement System OPEB, all of which were equal to the required contributions, were as
follows:
Health Benefit
Supplement
Fund
Long-Term
Disability
Fund
Year ending June 30:
2015 $ 65,413 $ 13,304
2014 61,821 24,728
2013 69,082 25,507
Pension Liability. At June 30, 2015, the Town reported a liability of $16.6 million for its
proportionate share of the net pension liability of the ASRS. The net pension liability was
measured as of June 30, 2014. The total pension liability used to calculate the net pension
liability was determined using update procedures to roll forward the total pension liability
from an actuarial valuation as of June 30, 2013, to the measurement date of June 30, 2014.
The Town’s proportion of the net pension liability was based on a projection of the Town’s
long-term share of contributions to the pension plan relative to the projected contributions of
all participating employers, actuarially determined. At June 30, 2014 and 2013, the Town’s
proportion was 0.11 percent.
Pension Expense and Deferred Outflows/Inflows of Resources. For the year ended
June 30, 2015, the Town recognized pension expense for ASRS of $862,365 and reported
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience $ 845,831 $
Changes of assumptions or other inputs
Net difference between projected and actual earnings on
pension plan investments 2,910,297
Changes in proportion and differences between
contributions and proportionate share of contributions 535,471
Contributions subsequent to the measurement date 1,207,362
Total $ 2,053,193 $ 3,445,768
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 58
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
The deferred outflows of resources related to ASRS pensions resulting from contributions
subsequent to the measurement date as reported in the table above will be recognized as a
reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to ASRS pensions
will be recognized in pension expense as follows:
Year Ending June 30:
2016 $ (592,635)
2017 (592,635)
2018 (687,092)
2019 (727,575)
Actuarial Assumptions. The significant actuarial assumptions used to measure the total
ASRS pension liability are as follows:
Actuarial valuation date June 30, 2013
Actuarial roll forward date June 30, 2014
Actuarial cost method Entry age normal
Investment rate of return 8.0%
Projected salary increases 3.0-6.75%
Inflation 3.0%
Permanent base increases Included
Mortality rates 1994 GAM Scale BB
The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an
actuarial experience study for the five-year period ended June 30, 2012. 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, 2013, actuarial valuation. The study did not include an analysis of the
assumed investment rate of return.
The long-term expected rate of return on ASRS pension plan investments was determined to
be 8.79 percent using a building-block method in which best-estimate ranges of expected
future real rates of return (expected returns, net of pension plan 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 and by adding expected inflation.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 59
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
The target allocation and best estimates of arithmetic real rates of return for each major asset
class of ASRS are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Equity 63% 7.03%
Fixed income 25% 3.20
Real estate 8% 4.75
Commodities 4% 4.50
Total 100%
Discount Rate. The discount rate used to measure the ASRS total pension liability was 8.0
percent, which is less than the long-term expected rate of return of 8.79 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 pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan 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 presents the Town’s proportionate share of the net pension
liability calculated using the discount rate of 8.0 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:
1% Decrease
(7.0%)
Current
Discount Rate
(8.0%)
1% Increase
(9.0%)
Proportionate share of the net
pension liability $21,035,535 $16,642,712 $14,259,385
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.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 60
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
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). The PSPRS
administers an agent multiple-employer defined benefit pension plan and an agent multiple-
employer defined benefit health insurance premium benefit (OPEB) plan. A seven-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.
Town dispatchers participate in the Corrections Officer Retirement Plan (CORP). The CORP
administers an agent multiple-employer defined benefit pension plan and an agent multiple-
employer defined benefit health insurance premium benefit (OPEB) plan. A seven-member
board known as the Board of Trustees 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 publicly available financial reports that include their financial
statements and required supplementary information. The reports are available on the PSPRS
website at www.psprs.com.
Benefits Provided. The PSPRS and CORP provide retirement, health insurance premium
supplement, disability, and survivor benefits. State statute establishes benefits terms. Certain
retirement and disability benefits are calculated on the basis of age, average monthly
compensation, and service credit as follows. See the publicly available PSPRS and CORP
financial reports for additional benefits information.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 61
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Public Safety Personnel Retirement System:
Retirement Initial
Membership Date:
Before January 1, 2012 On or After January 1, 2012
Years of service and age
required to receive benefit
20 years any age
15 years age 62
25 years and age 52.5
Final average salary is based on Highest 36 months of last
20 years
Highest 60 months of last
20 years
Normal retirement 50% less 2.0% for each year of
credited service less than 20 years or
plus 2.0% to 2.5% for each year of
credited service over 20 years, not to
exceed 80%
2.5% per year of credited service,
not to exceed 80%
Accidental disability retirement 50% or normal retirement, whichever is greater
Survivor benefit:
Retired members 80% of retired member’s pension benefit
Active members 80% of accidental disability retirement benefit or 100% of average monthly
compensation if death was the result of injuries received on the job
Corrections Officer Retirement Plan:
Retirement Initial
Membership Date:
Before January 1, 2012 On or After January 1, 2012
Years of service and age required
to receive benefit
Sum of years and age equals 80
25 years any age
10 years age 62
25 years and age 52.5
10 years age 62
Final average salary is based on Highest 36 months of
last 10 years
Highest 60 months of
last 10 years
Normal retirement 2.0% to 2.5% per year of credited service, not to exceed 80%
Accidental disability retirement 50% or normal retirement if more than
20 years of credited service
50% of normal retirement if more
than 25 years of credited service
Survivor benefit:
Retired members 80% of retired member’s pension benefit
Active members 40% of accidental disability retirement benefit or 100% of average monthly
compensation if death was the result of injuries received on the job
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 62
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on
excess investment earning. PSPRS also provides temporary disability benefits of 50 percent of
the member's compensation for up to 12 months.
Employees Covered by Benefit Terms. At June 30, 2015, the following employees were
covered by the agent pension plans’ benefit terms:
PSPRS –
Police
CORP –
Dispatchers
Retirees and beneficiaries 24 3
Inactive, non-retired members 10 2
Active members 96 8
Total 130 13
Contributions and Annual OPEB Cost. 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, 2015, are indicated below. Rates are a percentage of active members’
annual covered payroll.
PSPRS –
Police
CORP –
Dispatchers
Active members – pension 11.05% 7.96%
Town:
Pension 19.34% 16.83%
Health insurance 1.26 %1.15%
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 63
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
For the agent plans, the contributions to the pension plan and annual OPEB cost and
contributions for the health insurance premium benefit for the year ended were:
PSPRS –
Police
CORP –
Dispatchers
Pension:
Contributions made $ 1,354,630 $ 64,005
Health insurance premium benefit:
Annual OPEB cost 88,254 4,374
Contributions made 88,254 4,374
Pension Liability. At June 30, 2015, the Town reported the following net pension liabilities:
PSPRS – Police $ 12,881,586
CORP – Dispatchers 1,052,788
The net pension liabilities were measured as of June 30, 2014, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that
date. The total pension liability as of June 30, 2014, reflects changes of benefit terms and
actuarial assumptions for a court ruling for funding permanent benefit increases and a decrease
in the wage growth assumption.
Actuarial Assumptions. The significant actuarial assumptions used to measure the total
pension liability are as follows:
PSPRS CORP
Actuarial valuation date June 30, 2014 June 30, 2014
Actuarial cost method Entry age normal Entry age normal
Asset valuation
Discount rate 7.85% 7.85%
Projected salary increases 4.0 - 8.0% 4.0 - 7.25%
Inflation 4.0% 4.0%
Permanent benefit increase Included Included
Mortality rates RP-2000 mortality table,
adjusted by 105% for both
males and females
RP-2000 mortality table,
adjusted by 105% for both
males and females
Actuarial assumptions used in the June 30, 2014, valuation were based on the results of an
actuarial experience study for the 5-year period ended June 30, 2011.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 64
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
The long-term expected rate of return on PSPRS and CORP pension plan investments was
determined to be 7.85 percent using a building-block method in which best-estimate ranges of
expected future real rates of return (expected returns, net of pension 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 for all agent pension plans are summarized in the following table:
Asset Class
Target
Allocation
Long-Term
Expected Real
Rate of Return
Short-term investments 2% 3.25%
Absolute return 4% 6.75%
Risk parity 4% 6.04%
Fixed income 7% 4.75%
Real assets 8% 5.96%
GTAA 10% 5.73%
Private equity 11% 9.50%
Real estate 11% 6.50%
Credit opportunities 13% 8.00%
Non-U.S. equity 14% 8.63%
U.S. equity 16% 7.60%
Total 100%
Pension Discount Rates. The following discount rates were used to measure the total pension
liabilities:
PSPRS –
Police
CORP –
Dispatchers
Discount rates 7.85% 7.85%
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 rates and the member rate. Based on those assumptions, the PSPRS and CORP
pension plans’ fiduciary net position were projected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 65
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Changes in the Agent Plans Net Pension Liability: PSPRS – Police
Increase/Decrease
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balances at June 30, 2014 $ 30,759,243 $ 19,978,154 $ 10,781,089
Changes for the year:
Service cost 1,157,832 1,157,832
Interest on the total pension liability 2,408,825 2,408,825
Changes of benefit terms 444,387 444,387
Differences between expected and actual
experience in the measurement of the
pension liability (356,776) (356,776)
Changes of assumptions or other inputs 3,014,125 3,014,125
Contributions – employer 1,211,218 (1,211,218)
Contributions – employee 698,036 (698,036)
Net investment income 2,774,126 (2,774,126)
Benefit payments, including refunds of
employee contributions (1,304,993) (1,304,993)
Administrative expense (22,342) 22,342
Other (93,142) 93,142
Net changes 5,363,400 3,262,903 2,100,497
Balances at June 30, 2015 $ 36,122,643 $ 23,241,057 $ 12,881,586
Changes in the Agent Plans Net Pension Liability: CORP – Dispatchers
Increase/Decrease
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balances at June 30, 2014 $ 1,974,876 $ 1,044,662 $ 930,214
Changes for the year:
Service cost 53,985 53,985
Interest on the total pension liability 154,443 154,443
Changes of benefit terms 29,545 29,545
Differences between expected and actual
experience in the measurement of the
pension liability (48,767) (48,767)
Changes of assumptions or other inputs 174,536 174,536
Contributions – employer 63,179 (63,179)
Contributions – employee 32,699 (32,699)
Net investment income 146,441 (146,441)
Benefit payments, including refunds of
employee contributions (68,874) (68,874)
Administrative expense (1,151) 1,151
Net changes 294,868 172,294 122,574
Balances at June 30, 2015 $ 2,269,744 $ 1,216,956 $ 1,052,788
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 66
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following
presents the Town’s net pension liabilities calculated using the discount rates noted above, as
well as what 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:
1%
Decrease
Current
Discount
Rate
1%
Increase
PSPRS – Police:
Rate 6.85% 7.85% 8.85%
Net pension liability $ 17,864,009 $ 12,881,586 $ 8,784,432
CORP – Dispatchers:
Rate 6.85% 7.85% 8.85%
Net pension liability $ 1,355,148 $ 1,052,788 $ 801,092
Pension Plan Fiduciary Net Position. Detailed information about the pension plans’ fiduciary
net position is available in the separately issued PSPRS and CORP financial reports. The
reports are available on the PSPRS website at www.psprs.com.
Pension Expense. For the year ended June 30, 2015, the Town’s recognized the following
pension expense:
Pension
Expense
PSPRS – Police $ 1,985,055
CORP – Dispatchers 132,640
Pension Deferred Outflows/Inflows of Resources. At June 30, 2015, the Town reported
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
PSPRS – Police:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience $ $ 299,944
Changes of assumptions or other inputs 2,533,993
Net difference between projected and actual earnings on
pension plan investments 907,389
Contributions subsequent to the measurement date 1,354,630
Total $ 3,888,623 $ 1,207,333
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 67
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
CORP – Dispatchers:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual experience $ $ 39,089
Changes of assumptions or other inputs 139,897
Net difference between projected and actual earnings on
pension plan investments 47,695
Contributions subsequent to the measurement date 64,005
Total $ 203,902 $ 86,784
The amounts reported as deferred outflows of resources related to pension resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability (or an increase in the net pension asset) in the year ended June 30, 2016.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year Ending June 30:
PSPRS –
Police
CORP –
Dispatchers
2016 $ 196,453 $ 13,037
2017 196,453 13,037
2018 196,453 13,037
2019 196,453 13,037
2020 423,300 965
Thereafter 117,548 - 0 -
Agent Plan OPEB Trend Information. The table below presents the annual OPEB cost
information for the health insurance premium benefit for the current and two preceding
years:
Fiscal Year Ended
Annual
OPEB Cost
Percentage of
Annual Cost
Contributed
Net OPEB
Obligation
PSPRS – Police:
June 30, 2015 $ 88,254 $ 88,254 $- 0 -
June 30, 2014 75,539 75,539 - 0 -
June 30, 2013 84,632 84,362 - 0 -
CORP – Dispatchers:
June 30, 2015 4,374 4,374 $- 0 -
June 30, 2014 4,533 4,533 - 0 -
June 30, 2013 5,093 5,093 - 0 -
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 68
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Agent Plan OPEB Actuarial Assumptions. Actuarial valuations involve estimates of the
reported amounts’ value and assumptions about the probability of events in the future.
Amounts determined regarding the funded status of the plans and the annual required
contributions are subject to continual revision as actual results are compared to past
expectations and new estimates are made. The required schedule of funding progress for the
health insurance premium benefit presented as required supplementary information provides
multiyear trend information that shows whether the actuarial value of the plans’ assets are
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Projections of benefits are based on (1) the plans as understood by the Town and plans’
members and include the types of benefits inforce at the valuation date, and (2) the pattern of
sharing benefit costs between the Town and plans’ members to that point. Actuarial
calculations reflect a long-term perspective and employ methods and assumptions that are
designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value
of assets.
The significant actuarial methods and assumptions used are the same for all PSPRS and
CORP plans and related benefits (unless noted), and the actuarial methods and assumptions
used to establish the fiscal year 2015 contribution requirements, are as follows:
PSPRS CORP
Actuarial valuation date June 30, 2013 June 30, 2013
Actuarial cost method Entry age normal Entry age normal
Amortization method Level percent closed for
unfunded actuarial accrued
liability, open for excess
Level percent closed for
unfunded actuarial accrued
liability, open for excess
Remaining amortization period 23 years for unfunded
actuarial accrued liability,
20 years for excess
23 years for unfunded
actuarial accrued liability,
20 years for excess
Asset valuation method 7-year smoothed market
value (80%/120% market)
7-year smoothed market value
(80%/120% market)
Actuarial assumptions:
Investment rate of return 7.85% 7.85%
Projected salary increases
includes inflation at
4.5%-8.5%
4.5%
4.5%-7.75%
4.5%
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 69
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
The funded status of the all the PSPRS and CORP health insurance premium benefit plans in
the June 30, 2014, actuarial valuation was determined using the following actuarial methods
and assumptions, applied to all periods included in the measurement.
PSPRS CORP
Actuarial valuation date June 30, 2014 June 30, 2014
Actuarial cost method Entry age normal Entry age normal
Amortization method Level percent closed for
unfunded actuarial accrued
liability, open for excess
Level percent closed for
unfunded actuarial
accrued liability, open for
excess
Remaining amortization period 22 years for unfunded
actuarial accrued liability,
20 years for excess
22 years for unfunded
actuarial accrued liability,
20 years for excess
Asset valuation method 7-year smoothed market
value (80%/120% market)
7-year smoothed market
value (80%/120% market)
Actuarial assumptions:
Investment rate of return 7.85% 7.85%
Projected salary increases
includes inflation at
4%-8%
4%
4%-7.25%
4%
Agent Plan OPEB Funded Status. The following table presents the funded status of the health
insurance premium benefit plans as of the most recent valuation date, June 30, 2014.
PSPRS – Police
CORP –
Dispatchers
Actuarial value of assets $ 920,139 $ 78,501
Actuarial accrued liability 937,923 67,692
Unfunded actuarial accrued
asset (liability) (17,784) 10,809
Funded ratio 98.10% 115.97%
Annual covered payroll 6,446,142 410,789
Unfunded actuarial accrued
asset (liability) as a
percentage of covered
payroll (0.28)% 2.63%
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2015
Page 70
NOTE 15 – PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Beginning Net Position Restatement. The implementation of GASB Statement No. 68,
Accounting and Financial Reporting for Pensions, as amended by GASB Statement No. 71,
Pension Transition for Contributions Made Subsequent to the Measurement Date, represents
a change in accounting principle. Net position as of July 1, 2014, has been restated as follows
for this change in accounting principle:
Statement of Activities
Governmental
Activities
Business-Type
Activities
Net position, June 30, 2014, as previously
reported $ 156,700,105 $ 74,316,763
Net pension liability (24,953,830) (3,863,260)
Net position, July 1, 2014, as restated $ 131,746,275 $ 70,453,503
Page 71
REQUIRED SUPPLEMENTARY INFORMATION
Revenues:
Sales taxes
Franchise taxes
Intergovernmental
Licenses, fees & permits
Fines, forfeitures & penalties
Charges for services
Investment earnings
Other
Total revenues
Expenditures:
Current -
General government
Public safety
Transit
Culture and recreation
Debt service -
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses):
Changes in fund balances
Fund balances (deficits), beginning of year
Fund balances (deficits), end of year
Budgeted
Amounts
Original & Final
$15,136,905
540,000
12,523,427
1,805,547
180,000
1,688,995
81,125
135,000
32,090,999
10,404,215
14,840,366
1,553,149
2,722,617
40,400
5,053
29,565,800
2,525,199
185,000
(4,090,965)
(3,905,965)
(1,380,766)
(9,234)
$(1,390,000)
Actual
$14,637,000
582,064
12,456,454
1,551,289
1,850
2,341,850
168,749
31,739,256
10,233,468
14,737,153
1,404,646
2,914,719
40,400
5,053
29,335,439
2,403,817
185,000
(3,970,965)
(3,785,965)
(1,382,148)
11,534,023
$10,151,875
Variance with
Final Budget
Positive
(Negative)
$(499,905)
42,064
(66,973)
(254,258)
(178,150)
652,855
87,624
(135,000)
(351,743)
170,747
103,213
148,503
(192,102)
230,361
(121,382)
120,000
120,000
(1,382)
11,543,257
$11,541,875
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30, 2015
Page 72
See accompanying notes to this schedule.
2015
Town's proportion of the net pension
liability (asset)0.11%
Town's proportionate share of the net
pension liability (asset)16,642,712$
Town's covered-employee payroll 10,101,536$
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered-employee payroll 164.75%
Plan fiduciary net position as a
percentage of the total pension liability 69.49%
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
ARIZONA STATE RETIREMENT SYSTEM
YEAR ENDED JUNE 30, 2015
Page 73 See accompanying notes to this schedule.
2015
Total pension liability
Service cost $ 1,157,832
Interest 2,408,825
Changes of benefit terms 444,387
Differences between expected and actual experience (356,776)
Changes of assumptions 3,014,125
Benefit payments, including refunds (1,304,993)
Net change in total pension liability 5,363,400
Total pension liability—beginning 30,759,243
Total pension liability—ending $ 36,122,643
Plan fiduciary net position
Contributions—employer $ 1,211,218
Contributions—employee 698,036
Net investment income 2,774,126
Benefit payments, including refunds (1,304,993)
Administrative expense (22,342)
Other (93,142)
Net change in plan fiduciary net position 3,262,903
Plan fiduciary net position—beginning 19,978,154
Plan fiduciary net position—ending $ 23,241,057
Net pension liability—ending $ 12,881,586
Plan fiduciary net position as a percentage of the total
pension liability 64.34%
Covered-employee payroll $ 7,024,456
Net pension liability as a percentage of covered-employee
payroll 183.38%
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - POLICE
YEAR ENDED JUNE 30, 2015
Page 74 See accompanying notes to this schedule.
2015
Total pension liability
Service cost $ 53,985
Interest 154,443
Changes of benefit terms 29,545
Differences between expected and actual experience (48,767)
Changes of assumptions 174,536
Benefit payments, including refunds (68,874)
Net change in total pension liability 294,868
Total pension liability—beginning 1,974,876
Total pension liability—ending $ 2,269,744
Plan fiduciary net position
Contributions—employer $ 63,179
Contributions—employee 32,699
Net investment income 146,441
Benefit payments, including refunds (68,874)
Administrative expense (1,151)
Other
Net change in plan fiduciary net position 172,294
Plan fiduciary net position—beginning 1,044,662
Plan fiduciary net position—ending $ 1,216,956
Net pension liability—ending $ 1,052,788
Plan fiduciary net position as a percentage of the total
pension liability 53.62%
Covered-employee payroll $ 380,303
Net pension liability as a percentage of covered-employee
payroll 276.83%
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
CORRECTIONS OFFICER RETIREMENT PLAN - DISPATCHERS
YEAR ENDED JUNE 30, 2015
Page 75 See accompanying notes to this schedule.
2015
Arizona State Retirement System:
Actuarially determined contribution 1,207,362$
Contributions in relation to the
actuarially determined contribution 1,207,362
Contribution deficiency (excess) $
Town's covered-employee payroll 10,934,704$
Contributions as a percentage
of covered-employee payroll 11.04%
Public Safety Personnel Retirement System - Police:
Actuarially determined contribution 1,354,630$
Contributions in relation to the
actuarially determined contribution 1,354,630
Contribution deficiency (excess) $
Town's covered-employee payroll 7,024,456$
Contributions as a percentage
of covered-employee payroll 19.28%
Corrections Officer Retirement Plan - Dispatchers:
Actuarially determined contribution 64,005$
Contributions in relation to the
actuarially determined contribution 64,005
Contribution deficiency (excess) $
Town's covered-employee payroll 380,303$
Contributions as a percentage
of covered-employee payroll 16.83%
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CONTRIBUTIONS
ALL PENSION PLANS
YEAR ENDED JUNE 30, 2015
Page 76 See accompanying notes to this schedule.
PSPRS - Police:
2014 920,139$ 937,923$ (17,784)$ 98.10% 6,446,142$ (0.28) %
2013 - 896,558 (896,558) - 6,048,143 (14.82)
2012 - 870,374 (870,374) - 5,994,297 (14.52)
CORP - Dispatchers:
2014 78,501 67,692 10,809 115.97 410,789 2.63
2013 - 66,776 (66,776) - 405,564 (16.47)
2012 - 62,245 (62,245) - 451,808 (13.78)
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF FUNDING PROGRESS
Actuarial
Valuation Date
LAST THREE ACTUARIAL VALUATIONS
OTHER POSTEMPLOYMENT BENEFITS
Actuarial
Valuation of
Assets
Actuarial
Accrued
Liability
(AAL)
Unfunded AAL
(UAAL) Funded Ratio
Covered
Payroll
UAAL as a
percentage of
Covered Payroll
Page 77 See accompanying notes to this schedule.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2015
Page 78
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 PLAN 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 – ASRS. The actuarial assumptions used in the June 30, 2013,
valuation were based on the results of an actuarial experience study for the five-year period
ended June 30, 2012. 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, 2013, actuarial valuation. The
study did not include an analysis of the assumed investment rate of return.
Factors that Affect Trends – PSPRS. The total pension liability as of June 30, 2014,
reflects changes of benefit terms and actuarial assumptions for a court ruling for funding
permanent benefit increases and a decrease in the wage growth assumption.
Page 79
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Page 80
(This page intentionally left blank)
Page 81
GOVERNMENTAL FUNDS
ASSETS
Cash and cash equivalents
Accounts receivable
Intergovernmental receivable
Special assessments
Inventories
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Unearned revenue
Other accrued liabilities
Total liabilities
Deferred inflows of resources:
Unavailable revenues - special assessments
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
Special Revenue
$6,085,659
190,555
273,882
149,348
$6,699,444
$983,775
100,248
216,671
353,433
1,654,127
149,348
264,386
4,631,583
5,045,317
$6,699,444
Debt Service
$168,745
925,000
$1,093,745
$
925,000
168,745
168,745
$1,093,745
Capital Projects
$5,784,098
328,754
$6,112,852
$1,518,234
1,518,234
3,166,835
6,190
1,421,593
4,594,618
$6,112,852
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
JUNE 30, 2015
Page 82
Total Non-
Major
Governmental
Fund
$12,038,502
190,555
602,636
925,000
149,348
$13,906,041
$2,502,009
100,248
216,671
353,433
3,172,361
925,000
149,348
3,599,966
4,637,773
1,421,593
9,808,680
$13,906,041
Page 83
Revenues:
Sales taxes
Development impact fees
Special assessments
Intergovernmental
Licenses, fees & permits
Fines, forfeitures & penalties
Charges for services
Investment earnings
Other
Total revenues
Expenditures:
Current -
General government
Public safety
Highway and streets
Culture and recreation
Capital outlay
Debt service -
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special Revenue
$1,495,159
2,958,980
54,648
219,721
649,976
44,459
17,635
5,440,578
629,085
334,243
2,602,321
1,164,098
1,997,202
6,726,949
(1,286,371)
1,200,000
(352,543)
847,457
(438,914)
5,484,231
$5,045,317
Debt Service
$
178,078
64,258
62
100,908
343,306
609,440
430,957
1,040,397
(697,091)
331,627
331,627
(365,464)
534,209
$168,745
Capital Projects
$
439,637
2,235,299
2,905
23,075
2,700,916
6,096,502
6,096,502
(3,395,586)
2,610,000
2,610,000
(785,586)
5,380,204
$4,594,618
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, 2015
Page 84
Total Non-
Major
Governmental
Funds
$1,495,159
439,637
178,078
5,258,537
54,648
219,721
649,976
47,426
141,618
8,484,800
629,085
334,243
2,602,321
1,164,098
8,093,704
609,440
430,957
13,863,848
(5,379,048)
4,141,627
(352,543)
3,789,084
(1,589,964)
11,398,644
$9,808,680
Page 85
Page 86
(This page intentionally left blank)
Page 87
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.
Bed Tax – accounts for the collection of the 6 percent bed tax revenues which funds economic
development and tourism initiatives.
Impound Fee – accounts for the collection of administrative fees for processing vehicles
impounded by the Oro Valley police department.
Community Center – accounts for the activity of the Oro Valley Community and Recreation
Center.
ASSETS
Cash and cash equivalents
Accounts receivable
Intergovernmental receivable
Inventories
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Unearned revenue
Other accrued liabilities
Total liabilities
Fund balances:
Nonspendable
Restricted
Committed
Total fund balances
Total liabilities and fund balances
HURF
$3,794,492
42,325
273,882
$4,110,699
$719,369
100,248
819,617
3,291,082
3,291,082
$4,110,699
State Seizures
and Forfeitures
$224,020
$224,020
$
224,020
224,020
$224,020
Federal Seizures
and Forfeitures
$32,866
$32,866
$20,935
20,935
11,931
11,931
$32,866
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2015
Page 88
Bed Tax
$526,132
$526,132
$61,505
61,505
464,627
464,627
$526,132
Impound Fee
$28,444
$28,444
$9
9
28,435
28,435
$28,444
Community
Center
$1,479,705
148,230
149,348
$1,777,283
$181,957
216,671
353,433
752,061
149,348
875,874
1,025,222
$1,777,283
Totals
$6,085,659
190,555
273,882
149,348
$6,699,444
$983,775
100,248
216,671
353,433
1,654,127
149,348
264,386
4,631,583
5,045,317
$6,699,444
Page 89
Revenues:
Sales taxes
Intergovernmental
Licenses, fees & permits
Fines, forfeitures & penalties
Charges for services
Investment earnings
Other
Total revenues
Expenditures:
Current -
General government
Public safety
Highway and streets
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
HURF
$
2,958,980
54,648
129,492
34,597
12,138
3,189,855
2,602,321
1,471,613
4,073,934
(884,079)
(884,079)
4,175,161
$3,291,082
State Seizures
and Forfeitures
$
157,697
2,316
5,497
165,510
154,368
314,023
468,391
(302,881)
(302,881)
526,901
$224,020
Federal Seizures
and Forfeitures
$
14,324
1,450
15,774
179,875
173,692
353,567
(337,793)
(337,793)
349,724
$11,931
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2015
Page 90
Bed Tax
$988,449
6,096
994,545
602,474
602,474
392,071
(352,543)
(352,543)
39,528
425,099
$464,627
Impound Fee
$
47,700
47,700
26,611
26,611
21,089
21,089
7,346
$28,435
Community
Center
$506,710
520,484
1,027,194
1,164,098
37,874
1,201,972
(174,778)
1,200,000
1,200,000
1,025,222
$1,025,222
Totals
$1,495,159
2,958,980
54,648
219,721
649,976
44,459
17,635
5,440,578
629,085
334,243
2,602,321
1,164,098
1,997,202
6,726,949
(1,286,371)
1,200,000
(352,543)
847,457
(438,914)
5,484,231
$5,045,317
Page 91
Total revenues
Revenues:
Sales taxes
Intergovernmental
Licenses, fees & permits
Fines, forfeitures & penalties
Charges for services
Investment earnings
Other
Expenditures:
Current -
General government
Public safety
Highway and streets
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
HURF
Budget
$
2,754,947
52,000
129,493
19,250
10,000
2,965,690
6,798,419
6,798,419
(3,832,729)
(3,832,729)
$(3,832,729)
Actual
$
2,958,980
54,648
129,492
34,597
12,138
3,189,855
2,602,321
1,471,613
4,073,934
(884,079)
(884,079)
4,175,161
$3,291,082
Variance -
Positive
(Negative)
$
204,033
2,648
(1)
15,347
2,138
224,165
4,196,098
(1,471,613)
2,724,485
2,948,650
2,948,650
4,175,161
$7,123,811
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, 2015
Page 92
State Seizures and Forfeitures
Budget
$
175,000
175,000
582,353
582,353
(407,353)
(407,353)
$(407,353)
Actual
$
157,697
2,316
5,497
165,510
154,368
314,023
468,391
(302,881)
(302,881)
526,901
$224,020
Variance -
Positive
(Negative)
$
(17,303)
2,316
5,497
(9,490)
427,985
(314,023)
113,962
104,472
104,472
526,901
$631,373
Federal Seizures and Forfeitures
Budget
$
250,000
250,000
564,398
564,398
(314,398)
(314,398)
$(314,398)
Actual
$
14,324
1,450
15,774
179,875
173,692
353,567
(337,793)
(337,793)
349,724
$11,931
Variance -
Positive
(Negative)
$
(235,676)
1,450
(234,226)
384,523
(173,692)
210,831
(23,395)
(23,395)
349,724
$326,329
Page 93
(Continued)
Total revenues
Revenues:
Sales taxes
Intergovernmental
Licenses, fees & permits
Fines, forfeitures & penalties
Charges for services
Investment earnings
Other
Expenditures:
Current -
General government
Public safety
Highway and streets
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Bed Tax
Budget
$944,571
4,125
948,696
836,029
836,029
112,667
(352,543)
(352,543)
(239,876)
$(239,876)
Actual
$988,449
6,096
994,545
602,474
602,474
392,071
(352,543)
(352,543)
39,528
425,099
$464,627
Variance -
Positive
(Negative)
$43,878
1,971
45,849
233,555
233,555
279,404
279,404
425,099
$704,503
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, 2015
Page 94
Impound Fee
Budget
$
26,610
26,610
26,610
26,610
$
Actual
$
47,700
47,700
26,611
26,611
21,089
21,089
7,346
$28,435
Variance -
Positive
(Negative)
$
21,090
21,090
(1)
(1)
21,089
21,089
7,346
$28,435
Community Center
Budget
$
1,200,000
1,200,000
1,200,000
$1,200,000
Actual
$506,710
520,484
1,027,194
1,164,098
37,874
1,201,972
(174,778)
1,200,000
1,200,000
1,025,222
$1,025,222
Variance -
Positive
(Negative)
$506,710
520,484
1,027,194
(1,164,098)
(37,874)
(1,201,972)
(174,778)
(174,778)
$(174,778)
Page 95
(Continued)
Total revenues
Revenues:
Sales taxes
Intergovernmental
Licenses, fees & permits
Fines, forfeitures & penalties
Charges for services
Investment earnings
Other
Expenditures:
Current -
General government
Public safety
Highway and streets
Culture and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Totals
Budget
$944,571
2,754,947
52,000
451,610
129,493
23,375
10,000
4,365,996
862,639
1,146,751
6,798,419
8,807,809
(4,441,813)
1,200,000
(352,543)
847,457
(3,594,356)
$(3,594,356)
Actual
$1,495,159
2,958,980
54,648
219,721
649,976
44,459
17,635
5,440,578
629,085
334,243
2,602,321
1,164,098
1,997,202
6,726,949
(1,286,371)
1,200,000
(352,543)
847,457
(438,914)
5,484,231
$5,045,317
Variance -
Positive
(Negative)
$550,588
204,033
2,648
(231,889)
520,483
21,084
7,635
1,074,582
233,554
812,508
4,196,098
(1,164,098)
(1,997,202)
2,080,860
3,155,442
3,155,442
5,484,231
$8,639,673
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, 2015
Page 96
Page 97
MUNICIPAL DEBT SERVICE FUNDS
Municipal Debt Service - to account for the payments of debt service on the Series 2005 Excise
Tax Revenue Obligations, the Series 2007 MPC Excise Tax Revenue Refunding Bonds, the
Series 2010 Excise Tax Revenue Clean Renewable Energy Bonds (CREBs), and the Series 2012
Excise Tax Revenue Obligations.
Oracle Road Debt Service – to account for the special assessment collections and payment of
the outstanding Oracle Road bond issue.
ASSETS
Cash and cash equivalents
Special assessments
Total assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Deferred inflows of resources:
Unavailable revenues - special assessments
Fund balances:
Restricted
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
Municipal Debt
Service
$166,799
$166,799
$
166,799
166,799
$166,799
Oracle Road
Debt Service
$1,946
925,000
$926,946
$925,000
1,946
1,946
$926,946
Totals
$168,745
925,000
$1,093,745
$925,000
168,745
168,745
$1,093,745
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2015
Page 98
Revenues:
Special assessments
Intergovernmental
Investment earnings
Other
Total revenues
Expenditures:
Debt service -
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Municipal Debt
Service
$
64,258
62
100,908
165,228
479,440
382,544
861,984
(696,756)
329,627
329,627
(367,129)
533,928
$166,799
Oracle Road
Debt Service
$178,078
178,078
130,000
48,413
178,413
(335)
2,000
2,000
1,665
281
$1,946
Totals
$178,078
64,258
62
100,908
343,306
609,440
430,957
1,040,397
(697,091)
331,627
331,627
(365,464)
534,209
$168,745
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2015
Page 99
Total revenues
Revenues:
Special assessments
Intergovernmental
Investment earnings
Other
Expenditures:
Debt service -
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Municipal Debt Service
Budget
$
67,877
83,000
150,877
479,440
523,200
1,002,640
(851,763)
329,627
329,627
(522,136)
$(522,136)
Actual
$
64,258
62
100,908
165,228
479,440
382,544
861,984
(696,756)
329,627
329,627
(367,129)
533,928
$166,799
Variance -
Positive
(Negative)
$
(3,619)
62
17,908
14,351
140,656
140,656
155,007
155,007
533,928
$688,935
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, 2015
Page 100
Oracle Road Debt Service
Budget
$175,918
175,918
178,054
178,054
(2,136)
2,000
2,000
(136)
$(136)
Actual
$178,078
178,078
130,000
48,413
178,413
(335)
2,000
2,000
1,665
281
$1,946
Variance -
Positive
(Negative)
$2,160
2,160
48,054
(48,413)
(359)
1,801
1,801
281
$2,082
Totals
Budget
$175,918
67,877
83,000
326,795
657,494
523,200
1,180,694
(853,899)
331,627
331,627
(522,272)
$(522,272)
Actual
$178,078
64,258
62
100,908
343,306
609,440
430,957
1,040,397
(697,091)
331,627
331,627
(365,464)
534,209
$168,745
Variance -
Positive
(Negative)
$2,160
(3,619)
62
17,908
16,511
48,054
92,243
140,297
156,808
156,808
534,209
$691,017
Page 101
Page 102
(This page intentionally left blank)
Page 103
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.
ASSETS
Cash and cash equivalents
Intergovernmental receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Total liabilities
Fund balances:
Restricted
Committed
Assigned
Total fund balances
Total liabilities and fund balances
Townwide
Roadway
Development
Impact Fees
$2,796,083
328,754
$3,124,837
$446,985
446,985
2,677,852
2,677,852
$3,124,837
General Impact
Fees
$488,983
$488,983
$
488,983
488,983
$488,983
Townwide
Facilities
Projects
$6,190
$6,190
$
6,190
6,190
$6,190
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2015
Page 104
General
Government CIP
$2,492,842
$2,492,842
$1,071,249
1,071,249
1,421,593
1,421,593
$2,492,842
Totals
$5,784,098
328,754
$6,112,852
$1,518,234
1,518,234
3,166,835
6,190
1,421,593
4,594,618
$6,112,852
Page 105
Revenues:
Development impact fees
Intergovernmental
Investment earnings
Other
Total revenues
Expenditures:
Current -
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Townwide
Roadway
Development
Impact Fees
$276,745
2,235,299
2,606
23,075
2,537,725
2,651,039
2,651,039
(113,314)
(113,314)
2,791,166
$2,677,852
General Impact
Fees
$162,892
299
163,191
20,000
20,000
143,191
143,191
345,792
$488,983
Townwide
Facilities
Projects
$
737,056
737,056
(737,056)
(737,056)
743,246
$6,190
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2015
Page 106
General
Government CIP
$
2,688,407
2,688,407
(2,688,407)
2,610,000
2,610,000
(78,407)
1,500,000
$1,421,593
Totals
$439,637
2,235,299
2,905
23,075
2,700,916
6,096,502
6,096,502
(3,395,586)
2,610,000
2,610,000
(785,586)
5,380,204
$4,594,618
Page 107
Total revenues
Revenues:
Development impact fees
Intergovernmental
Investment earnings
Other
Expenditures:
Current -
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Townwide Roadway Development Impact Fees
Budget
$900,666
4,060,000
3,000
22,500
4,986,166
7,037,558
7,037,558
(2,051,392)
(2,051,392)
$(2,051,392)
Actual
$276,745
2,235,299
2,606
23,075
2,537,725
2,651,039
2,651,039
(113,314)
(113,314)
2,791,166
$2,677,852
Variance -
Positive
(Negative)
$(623,921)
(1,824,701)
(394)
575
(2,448,441)
4,386,519
4,386,519
1,938,078
1,938,078
2,791,166
$4,729,244
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2015
Page 108
General Impact Fees
Budget
$441,768
441,768
426,154
426,154
15,614
15,614
$15,614
Actual
$162,892
299
163,191
20,000
20,000
143,191
143,191
345,792
$488,983
Variance -
Positive
(Negative)
$(278,876)
299
(278,577)
406,154
406,154
127,577
127,577
345,792
$473,369
Townwide Facilities Projects
Budget
$
615,011
615,011
(615,011)
(615,011)
$(615,011)
Actual
$
737,056
737,056
(737,056)
(737,056)
743,246
$6,190
Variance -
Positive
(Negative)
$
(122,045)
(122,045)
(122,045)
(122,045)
743,246
$621,201
Page 109
(Continued)
Total revenues
Revenues:
Development impact fees
Intergovernmental
Investment earnings
Other
Expenditures:
Current -
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
General Government CIP
Budget
$
4,040,000
4,040,000
(4,040,000)
(4,040,000)
$(4,040,000)
Actual
$
2,688,407
2,688,407
(2,688,407)
2,610,000
2,610,000
(78,407)
1,500,000
$1,421,593
Variance -
Positive
(Negative)
$
1,351,593
1,351,593
1,351,593
2,610,000
2,610,000
3,961,593
1,500,000
$5,461,593
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2015
Page 110
Totals
Budget
$1,342,434
4,060,000
3,000
22,500
5,427,934
12,118,723
12,118,723
(6,690,789)
(6,690,789)
$(6,690,789)
Actual
$439,637
2,235,299
2,905
23,075
2,700,916
6,096,502
6,096,502
(3,395,586)
2,610,000
2,610,000
(785,586)
5,380,204
$4,594,618
Variance -
Positive
(Negative)
$(902,797)
(1,824,701)
(95)
575
(2,727,018)
6,022,221
6,022,221
3,295,203
2,610,000
2,610,000
5,905,203
5,380,204
$11,285,407
Page 111
Page 112
(This page intentionally left blank)
Page 113
INTERNAL SERVICE FUNDS
Self Insurance - to account for the financial activity associated with the Town’s self-insurance
program for employee health care.
Fleet Maintenance - to account for the Town’s fleet maintenance services.
ASSETS
Current assets:
Cash and cash equivalents
Total current assets
Total assets
DEFERRED OUTFLOWS OF RESOURCES
Pension plan items
LIABILITIES
Current liabilities:
Accounts payable
Claims payable
Total current liabilities
Noncurrent liabilities:
Non-current portion of long-term obligations
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Pension plan items
NET POSITION
Unrestricted
Total net position
Fleet
Maintenance
$298,922
298,922
298,922
11,006
41,220
41,220
89,213
89,213
130,433
18,471
161,024
$161,024
Self Insurance
$432,967
432,967
432,967
26,104
162,701
188,805
188,805
244,162
$244,162
Totals
$731,889
731,889
731,889
11,006
67,324
162,701
230,025
89,213
89,213
319,238
18,471
405,186
$405,186
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF NET POSITION -
ALL INTERNAL SERVICE FUNDS
JUNE 30, 2015
Page 114
Operating revenues:
Charges for services
Other
Self insurance premiums
Total operating revenues
Operating expenses:
Costs of sales and services
Claims payments
Administrative fees
Reinsurance premiums
Total operating expenses
Operating income (loss)
Changes in net position
Total net position, beginning of year, as restated
Total net position, end of year
Fleet
Maintenance
$1,409,174
46,936
1,456,110
1,281,507
1,281,507
174,603
174,603
(13,579)
$161,024
Self Insurance
$
2,486,095
2,486,095
43,733
2,168,380
57,000
557,329
2,826,442
(340,347)
(340,347)
584,509
$244,162
Totals
$1,409,174
46,936
2,486,095
3,942,205
1,325,240
2,168,380
57,000
557,329
4,107,949
(165,744)
(165,744)
570,930
$405,186
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION -
ALL INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
Page 115
Fleet Maintenance Self Insurance Total
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from customers 1,456,110$ 1,456,110$
Cash received from premiums 2,486,095 2,486,095
Cash payments to suppliers for goods and services (1,258,500) (578,690) (1,837,190)
Cash payments to employees for services (81,242) (81,242)
Cash payments for claims (2,168,380) (2,168,380)
Net cash provided by (used for) operating activities 116,368 (260,975) (144,607)
Net increase (decrease) in cash and cash equivalents 116,368 (260,975) (144,607)
Cash and cash equivalents, beginning of year 182,554 693,942 876,496
Cash and cash equivalents, end of year 298,922$ 432,967$ 731,889$
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used For) Operating Activities
Operating income (loss)174,603$ (340,347)$ (165,744)$
Adjustments to reconcile operating income
to net cash provided by (used for) operating activities:
Change in assets and liabilities:
Accounts payable (56,386) 12,226 (44,160)
Claims payable 67,146 67,146
Pension items (1,849) (1,849)
Total adjustments (58,235) 79,372 21,137
Net cash provided by (used for) operating activities 116,368$ (260,975)$ (144,607)$
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF CASH FLOWS
ALL INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2015
Page 116
Page 117
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.
Page 118
(This page intentionally left blank)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Governmental activities Net investment in capital assets 107,413,486$ 106,644,847$ 115,177,344$ 120,515,962$ 127,712,057$ 132,956,156$ 135,336,862$ 134,512,094$ 133,714,821$ 133,800,218$ Restricted 8,919,398 8,326,731 14,072,781 7,537,331 9,580,610 9,048,505 11,454,390 3,730,312 4,555,138 3,599,966 Unrestricted 15,063,081 23,571,109 26,698,611 26,135,593 15,979,093 10,588,160 10,808,596 18,901,112 18,430,146 (9,493,907) Total governmental activities net position 131,395,965$ 138,542,687$ 155,948,736$ 154,188,886$ 153,271,760$ 152,592,821$ 157,599,848$ 157,143,518$ 156,700,105$ 127,906,277$ Business-type activities Net investment in capital assets 7,240,791$ 15,534,043$ 21,274,023$ 28,212,750$ 31,383,715$ 40,005,568$ 45,669,488$ 48,802,267$ 52,775,561$ 54,858,448$ Restricted 2,331,001 Unrestricted 22,958,536 23,252,747 24,651,948 24,393,984 24,404,427 20,371,225 19,067,780 19,501,676 21,541,202 20,092,694 Total business-type activities net position 32,530,328$ 38,786,790$ 45,925,971$ 52,606,734$ 55,788,142$ 60,376,793$ 64,737,268$ 68,303,943$ 74,316,763$ 74,951,142$ Primary government Net investment in capital assets 114,654,277$ 122,178,890$ 136,451,367$ 148,728,712$ 159,095,772$ 172,961,724$ 181,006,350$ 183,314,361$ 186,490,382$ 188,658,666$ Restricted 11,250,399 8,326,731 14,072,781 7,537,331 9,580,610 9,048,505 11,454,390 3,730,312 4,555,138 3,599,966 Unrestricted 38,021,617 46,823,856 51,350,559 50,529,577 40,383,520 30,959,385 29,876,376 38,402,788 39,971,348 10,598,787 Total primary government net position 163,926,293$ 177,329,477$ 201,874,707$ 206,795,620$ 209,059,902$ 212,969,614$ 222,337,116$ 225,447,461$ 231,016,868$ 202,857,419$ Source: Town of Oro Valley Finance Department(UNAUDITED)Fiscal YearTOWN OF ORO VALLEY, ARIZONANET POSITION BY COMPONENTLAST TEN FISCAL YEARS(ACCRUAL BASIS OF ACCOUNTING)Page 119
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015ExpensesGovernmental activities:General government 7,162,732$ 7,529,245$ 9,080,766$ 9,936,639$ 9,950,053$ 9,887,523$ 9,961,376$ 9,861,131$ 10,990,007$ 11,533,702$ Public Safety 11,155,542 12,352,671 14,347,250 15,019,980 13,730,593 12,509,201 12,349,948 12,770,224 13,814,914 16,587,168 Highways and streets 5,732,026 7,757,276 7,292,972 9,481,040 9,353,689 8,895,987 9,339,062 9,255,004 8,754,110 9,400,140 Transit1,275,093 1,404,646 Culture and recreation 3,014,341 3,375,314 3,644,973 3,806,555 3,527,949 3,375,281 3,227,895 2,783,633 3,399,623 4,572,490 Interest on long-term debt 805,123 996,336 987,074 954,645 1,767,155 430,570 654,262 522,917 656,260 439,027 Total governmental activities/expenses 27,869,764 32,010,842 35,353,035 39,198,859 38,329,439 35,098,562 35,532,543 35,192,909 38,890,007 43,937,173 Business-type activities:Water 10,438,869 11,446,958 12,676,275 13,495,124 12,830,137 12,527,851 11,984,829 13,047,373 13,572,677 13,608,931 Stormwater drainage 111,695 74,235 177,673 494,166 486,994 586,006 636,966 983,975 749,038 854,510 Total business-type activities expenses 10,550,564 11,521,193 12,853,948 13,989,290 13,317,131 13,113,857 12,621,795 14,031,348 14,321,715 14,463,441 Total primary government expenses 38,420,328$ 43,532,035$ 48,206,983$ 53,188,149$ 51,646,570$ 48,212,419$ 48,154,338$ 49,224,257$ 53,211,722$ 58,400,614$ Program RevenuesGovernmental activities:Fees, Fines and Charges for Services:General government 4,013,368$ 3,291,983$ 3,830,060$ 2,835,884$ 2,261,815$ 2,455,182$ 3,079,526$ 3,740,046$ 3,978,117$ 3,516,359$ Public Safety 229,546 69,256 83,279 28,785 33,976 33,109 45,346 35,976 29,097 Highways and streets 183,842 122,124 211,088 119,847 137,436 400,977 329,420 1,052,581 546,066 496,098 Transit71,078 72,783 Culture and recreation 121,358 73,149 110,857 119,273 126,290 82,832 169,965 435,354 1,108,734 Operating grants and contributions 4,558,864 4,893,869 5,619,003 5,392,667 4,728,050 4,887,283 5,247,844 5,318,097 4,706,844 5,070,396 Capital grants and contributions 3,994,640 8,321,691 10,264,829 1,781,571 6,514,602 8,980,239 7,107,063 2,920,335 2,919,641 2,456,727 Total governmental activities program revenues 12,750,714 16,980,571 20,067,385 10,324,105 13,789,961 16,883,947 15,879,794 13,246,370 12,693,076 12,750,194 Business-type activities:Charges for services:Water 14,038,391 13,617,336 16,803,950 16,098,086 15,136,784 15,119,065 15,817,345 16,732,600 19,286,794 16,088,681 Stormwater Utility 21,401 125 357,602 746,655 927,238 888,391 752,212 813,400 759,428 771,594 Capital grants and contributions 628,501 3,066,170 3,567,083 3,697,229 362,273 1,655,307 245,607 48,871 179,675 1,979,037 Total business-type activities program revenues 14,688,293 16,683,631 20,728,635 20,541,970 16,426,295 17,662,763 16,815,164 17,594,871 20,225,897 18,839,312 Total primary government program revenues 27,439,007$ 33,664,202$ 40,796,020$ 30,866,075$ 30,216,256$ 34,546,710$ 32,694,958$ 30,841,241$ 32,918,973$ 31,589,506$ (ACCRUAL BASIS OF ACCOUNTING)(UNAUDITED)Fiscal YearTOWN OF ORO VALLEY, ARIZONACHANGES IN NET POSITIONLAST TEN FISCAL YEARSPage 120
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Net (Expense)/RevenuesGovernmental activities (15,119,050)$ (15,030,271)$ (15,285,650)$ (28,874,754)$ (24,539,478)$ (18,214,615)$ (19,652,749)$ (21,946,539)$ (26,196,931)$ (31,186,979)$ Business-type activities 4,137,729 5,162,438 7,874,687 6,552,680 3,109,164 4,548,906 4,193,369 3,563,523 5,904,182 4,375,871 Total primary government net expenses (10,981,321)$ (9,867,833)$ (7,410,963)$ (22,322,074)$ (21,430,314)$ (13,665,709)$ (15,459,380)$ (18,383,016)$ (20,292,749)$ (26,811,108)$ General Revenues and Other Changes in Net PositionGovernmental activities:Taxes:Sales taxes 12,455,609$ 16,873,630$ 17,168,998$ 15,376,408$ 12,970,865$ 11,572,148$ 12,799,678$ 14,241,065$ 15,286,001$ 16,132,159$ Franchise taxes 435,428 478,175 516,652 506,685 509,285 514,814 525,427 539,477 571,731 582,064 Impact fees* 1,098,977 1,038,217 910,741 441,020 584,113 Unrestricted state revenue sharing 3,343,471 4,473,305 5,544,763 5,886,132 5,086,953 4,520,935 3,461,359 9,048,365 9,636,906 10,413,464 Unrestricted state sales tax revenue sharing 3,432,007 3,744,864 3,621,016 3,134,789 2,891,386 2,569,666 3,204,612 Unrestricted auto lieu tax revenue sharing 1,541,560 1,726,149 1,738,875 1,655,875 1,484,125 1,318,989 1,479,094 Special assessmentsInvestment earnings (loss) 991,151 1,471,641 1,590,654 113,995 95,625 39,124 189,606 265,787 255,702 216,175 Special item - Capital asset conveyance(2,606,804) Transfers (79,778) 69,813 1,600,000 2,319 3,178 3,119 Total governmental activities 23,218,425 29,875,794 32,691,699 27,114,904 23,622,352 20,535,676 21,659,776 21,490,209 25,753,518 27,346,981 Business-type activities:Investment earnings (loss) 956,189 1,163,837 864,494 128,083 72,244 39,745 167,106 5,471 111,816 124,887 Transfers 79,778 (69,813) (1,600,000) (2,319) (3,178) (3,119) Total business-type activities 1,035,967 1,094,024 (735,506) 128,083 72,244 39,745 167,106 3,152 108,638 121,768 Total primary government 24,254,392$ 30,969,818$ 31,956,193$ 27,242,987$ 23,694,596$ 20,575,421$ 21,826,882$ 21,493,361$ 25,862,156$ 27,468,749$ Change in Net PositionGovernmental activities 8,099,375$ 14,845,523$ 17,406,049$ (1,759,850)$ (917,126)$ 2,321,061$ 2,007,027$ (456,330)$ (443,413)$ (3,839,998)$ Business-type activities 5,173,696 6,256,462 7,139,181 6,680,763 3,181,408 4,588,651 4,360,475 3,566,675 6,012,820 4,497,639 Total primary government 13,273,071$ 21,101,985$ 24,545,230$ 4,920,913$ 2,264,282$ 6,909,712$ 6,367,502$ 3,110,345$ 5,569,407$ 657,641$ Source: Town of Oro Valley Finance Department* Impact fees in fiscal year 2011 are now presented in program revenues.Fiscal YearPage 121
Page 122
(This page intentionally left blank)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015General FundNonspendable$$$$$$$$$31,278$ RestrictedCommittedAssigned1,769,333 1,608,035 1,608,035 1,608,035 1,553,999 Unassigned9,237,805 9,793,614 11,529,070 9,925,988 8,566,598 Reserved 7,267 Unreserved 14,356,224 18,477,706 16,666,388 15,940,438 11,904,429 Total general fund 14,363,491$ 18,477,706$ 16,666,388$ 15,940,438$ 11,904,429$ 11,007,138$ 11,401,649$ 13,137,105$ 11,534,023$ 10,151,875$ All Other Governmental FundsNonspendable$$$$$$$$$149,348$ Restricted9,128,505 11,454,390 3,730,312 4,555,138 3,599,966 Committed 840,704 622,919 4,166,818 5,343,506 4,637,773 Assigned1,500,000 1,421,593 UnassignedReserved 80,624 Unreserved, reported in:Special revenue funds 4,439,573 4,891,095 5,534,192 5,887,082 5,868,523 Capital projects funds 4,985,836 4,520,718 15,396,024 9,071,398 3,933,044 Debt service funds 280,055 245,208 263,478 158,816 1,929,635 Total all other governmental funds 9,786,088$ 9,657,021$ 21,193,694$ 15,117,296$ 11,731,202$ 9,969,209$ 12,077,309$ 7,897,130$ 11,398,644$ 9,808,680$ Source: Town of Oro Valley Finance DepartmentNote:(MODIFIED ACCRUAL BASIS OF ACCOUNTING)(UNAUDITED)The provisions of the Governmental Accounting Standards Board (GASB) Statement No. 54 were adopted in fiscal year 2011. The standard replaces the previous reserved and unreserved fund balance categorieswith the following five fund balance classifications; nonspendable, restricted, committed, assigned, and unassigned fund balance.Fiscal YearTOWN OF ORO VALLEY, ARIZONAFUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARSPage 123
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015RevenuesTaxes 12,891,037$ 17,351,805$ 17,685,650$ 15,883,093$ 13,480,150$ 12,086,962$ 13,325,105$ 14,780,542$ 15,857,732$ 16,714,223$ Intergovernmental 16,773,215 18,405,713 21,863,875 17,616,213 17,940,749 18,040,619 19,723,086 16,817,756 16,732,631 17,714,991 Fines and forfeitures 462,246 429,458 391,921 413,720 612,031 560,941 895,820 551,962 673,336 221,571 Licenses and permits 2,433,264 2,368,851 2,792,684 1,507,930 1,108,411 1,059,309 1,185,862 1,813,947 2,116,700 1,605,937 Charges for services 942,676 1,026,921 1,040,694 1,066,376 965,455 926,135 1,209,814 1,630,238 1,850,181 2,991,826 Contributions and donations 97,327 19,171 249,999 1,000 59 15,000 995 27,229 Special assessments 189,820 193,023 367,539 368,152 365,811 366,028 365,935 1,462,307 178,078 Impact fees 1,098,977 1,038,217 910,741 441,020 584,113 481,619 417,742 988,342 569,338 439,637 Investment earnings 991,151 1,471,641 1,590,654 113,995 95,625 39,124 189,606 265,787 255,702 216,175 Other revenues 325,428 135,261 555,790 233,123 216,030 297,109 460,512 349,326 305,489 141,618 Total revenues 36,015,321$ 42,436,858$ 47,275,031$ 37,644,009$ 35,370,775$ 33,872,629$ 37,774,570$ 37,591,064$ 39,823,416$ 40,224,056$ ExpendituresGeneral government 9,988,956$ 7,019,030$ 8,767,496$ 9,586,029$ 9,452,778$ 9,848,393$ 9,212,866$ 9,289,771$ 10,610,673$ 10,862,553$ Public safety 11,636,915 11,808,799 13,549,170 14,289,423 12,979,291 11,928,567 11,993,864 12,342,349 13,539,322 15,071,396 Highways and streets 13,773,561 3,768,851 4,107,871 3,848,725 3,475,556 3,288,349 3,191,654 3,513,479 3,710,577 2,602,321 Transit1,404,646 Culture and recreation 3,868,249 3,109,228 3,324,066 3,416,305 3,157,369 3,031,520 2,954,549 2,468,129 2,445,131 4,078,817 Capital Outlay 10,662,190 13,090,313 11,332,914 3,189,765 7,014,659 6,929,834 11,053,739 5,495,185 8,093,704 Debt ServicePrincipal retirement 2,856,595 1,077,813 3,403,102 938,900 3,400,877 3,459,970 3,052,953 571,910 1,867,901 649,840 Interest and fiscal charges 731,358 921,205 907,658 1,034,061 831,580 470,578 554,274 498,729 472,268 436,010 Payment to bond escrow agent6,279,112 Bond Issuance costs 107,897 28,868 26,550 75,800 Total expenditures 42,963,531$ 38,395,984$ 47,149,676$ 44,446,357$ 42,792,878$ 39,042,036$ 37,965,794$ 39,738,106$ 38,141,057$ 43,199,287$ Excess of revenues (6,840,313)$ 4,069,742$ 125,355$ (6,802,348)$ (7,395,553)$ (5,169,407)$ (115,424)$ (2,147,042)$ 1,682,359$ (2,975,231)$ over (under) expendituresTOWN OF ORO VALLEY, ARIZONACHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(MODIFIED ACCRUAL BASIS OF ACCOUNTING)(UNAUDITED)Fiscal YearPage 124
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Other Financing Sources (Uses)Premium on bonds issued $ 25,719$ $$$$113,835$ $ $ $Proceeds from certificates of participationProceeds from capital lease agreements212,895 Proceeds from loanIssuance of long-term loan payable 8,000,000 Issuance of refunding debt 1,389,180 Payment to bond escrow agent (1,540,438) Issuance of long-term debt 4,164,050 2,445,000 2,580,000 Transfers in 1,248,569 2,927,754 8,447,951 1,950,898 10,012,679 860,143 1,003,666 1,704,272 4,115,152 4,326,627 Transfers out (1,328,347) (2,857,941) (6,847,951) (1,950,898) (10,012,679) (795,020) (1,003,666) (2,001,953) (4,111,974) (4,323,508) Total other financing sources (uses) 4,084,272$ (55,726)$ 9,600,000$ $ $ 2,510,123$ 2,693,835$ (297,681)$ 216,073$ 3,119$ Net change in fund balances (2,756,041)$ 4,014,016$ 9,725,355$ (6,802,348)$ (7,395,553)$ (2,659,284)$ 2,578,411$ (2,444,723)$ 1,898,432$ (2,972,112)$ Debt service as a percentage of 13.02% 7.17% 12.51% 5.88% 10.60% 12.36% 11.55% 3.76% 7.30% 3.09%noncapital expendituresSource: Town of Oro Valley Finance DepartmentFiscal YearPage 125
2015 2006Percentage Percentageof Total Town of Total TownEmployerEmployees Rank Employment Employees Rank EmploymentVentana Medical Systems 1,200 1 7.03% 566 2 3.22%Oro Valley Hospital 672 2 3.94% 0.00%Town of Oro Valley 478 3 2.80% 333 5 1.89%Amphitheater Public Schools 449 4 2.63% 646 1 3.67%Hilton El Conquistador Golf & Tennis Resort 337 5 1.97% 440 4 2.50%Fry's Food & Drug Store 272 6 1.59% 270 6 1.54%Walmart Supercenter 226 7 1.32%Splendido at Rancho Vistoso 185 8 1.08% 0.00%Securaplane 174 9 1.02%Home Depot 143 10 160 8Northwest Medical Center450 3Hilton El Conquistador Country Club260 7 1.48%Northwest Medical Center urgent care150 9Stone Canyon Golf/Golf Club at Vistoso130 10Total 4,136 23.40% 3,405 14.30%Source: U.S. Bureau of Labor StatisticsTOWN OF ORO VALLEY, ARIZONAPRINCIPAL EMPLOYERS(UNAUDITED)CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIORPage 126
Fiscal Year 2015 Fiscal Year 2006Percentage of Percentage ofSales Tax Total Sales Sales Tax Total SalesTaxpayerBusiness TypePayments Rank Tax Payments Payments Rank Tax PaymentsTaxpayer A Utility 1,813,674$ 1 11.24%Taxpayer B Retail Trade 879,702 3 5.45%Taxpayer C Retail Trade 677,765 4 4.20% 634,586$ 3 5.04%Taxpayer D Utility 463,623 5 2.87%Taxpayer E Construction 313,305 9 1.94%Taxpayer F Utility 456,911 6 2.83%Taxpayer G Retail Trade 419,305 7 2.60% 573,810 4 4.56%Taxpayer H Retail Trade 361,373 8 2.24% 244,548 8Taxpayer I Accomodation 1,117,925 2 6.93% 1,441,236 1 11.45%Taxpayer J Retail Trade 310,394 100.00%Taxpayer K Construction714,012 2 5.67%Taxpayer L Construction317,740 5 2.52%Taxpayer M Construction266,459 6 2.12%Taxpayer N Retail Trade264,900 7 2.11%Taxpayer O Construction211,851 9 1.68%Taxpayer P Construction193,782 10 1.54%Total 6,813,977$ 40.32% 4,862,924$ 36.70%Source: Arizona Department of RevenueTOWN OF ORO VALLEY, ARIZONAPRINCIPAL SALES TAXPAYERSCURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR(UNAUDITED)Page 127
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Construction 5,602$ 6,895$ 7,038$ 5,143$ 2,110$ 1,707$ 1,738$ 2,842$ 3,338$ 3,199$ Manufacturing 165 181 280 230 230 266 258 258 257 141 Transportation, Warehousing, Communications & Utilities 91 226 1,279 1,632 1,554 1,534 2,450 2,785 2,959 3,068 Wholesale Trade 56 58 69 54 75 93 106 110 103 125 Retail Trade 3,229 3,665 4,017 4,264 4,544 4,720 4,925 5,153 5,243 5,808 Restaurants, Bars & Lodging 2,392 2,720 2,775 2,333 2,283 2,314 2,314 2,164 2,761 2,803 Finance, Insurance & Real Estate 155 859 496 324 381 324 333 335 75 270 Services 262 313 312 322 378 417 456 456 529 599 All Other 197 167 337 896 627 102 103 75 60 115 Cable Franchise 435 478 517 507 509 515 525 540 572 582 Total 12,584$ 15,562$ 17,120$ 15,705$ 12,691$ 11,992$ 13,208$ 14,718$ 15,897$ 16,710$ Town sales tax rate* 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.50%Source: Arizona Department of Revenue*Note:1% Additional Bed Tax Effective May 1, 19903% Additional Bed Tax Effective September 1, 20014% Construction Sales Tax Effective May 1, 20046% Additional Bed Tax Effective January 1, 20062% Utility Sales Tax Effective April 1, 20072% Additional Utility Sales Tax Effective August 1, 2011Fiscal YearTOWN OF ORO VALLEY, ARIZONATAXABLE SALES BY CATEGORYLAST TEN FISCAL YEARS (UNAUDITED)($000's)Page 128
Town of Oro
Town of Oro Town of Oro Valley Town of Oro
Fiscal Valley Valley Construction Valley
Year Sales Tax Bed Tax Sales Tax Utility Sales Tax Pima County
2006 2.00% 6.00% 4.00% 0.00% 6.10%
2007 2.00% 6.00% 4.00% 2.00% 6.10%
2008 2.00% 6.00% 4.00% 2.00% 6.10%
2009 2.00% 6.00% 4.00% 2.00% 6.10%
2010 2.00% 6.00% 4.00% 2.00% 7.10%
2011 2.00% 6.00% 4.00% 2.00% 7.10%
2012 2.00% 6.00% 4.00% 4.00% 7.10%
2013 2.00% 6.00% 4.00% 4.00% 6.10%
2014 2.00% 6.00% 4.00% 4.00% 6.10%
2015* 2.50% 6.00% 4.00% 4.00% 6.10%
*.5% Additional sales tax effective March 1, 2015
Source: Arizona Department of Revenue
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
Page 129
Year
Primary Assessed
Valuation
Secondary
Assesed
Valuation
Estimated Full
Cash Value
Total
Outstanding
General
Obligation Bond
Debt
2007 515,095,975 582,838,439 5,098,720,276 0
2008 582,236,657 686,707,506 6,141,419,229 0
2009 642,601,840 693,924,598 6,140,054,657 0
2010 649,015,575 672,309,638 6,041,904,306 0
2011 618,976,953 629,340,548 5,716,229,517 0
2012 589,160,533 592,761,968 5,461,131,133 0
2013 553,366,744 556,259,856 5,175,406,955 0
2014 556,566,167 560,863,509 5,252,917,489 0
2015 572,696,599 593,299,222 5,616,655,680 0
Source: State of Arizona Department of Revenue Abstract of the Assessment Roll
TOWN OF ORO VALLEY, ARIZONA
PRIMARY & SECONDARY ASSESSED PROPERTY VALUES
LAST NINE FISCAL YEARS
(UNAUDITED)
Page 130
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal FiscalYear Year Year Year Year Year Year Year Year YearRevenue Source 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Town Sales and Franchise Taxes 17,685,650$ 15,883,093$ 13,480,150$ 12,086,962$ 13,325,106$ 14,780,543$ 15,857,732$ 16,714,223$ 18,295,654$ 18,844,524$ Licenses and Permits 2,792,684 1,507,930 1,108,411 1,059,309 1,185,862 1,813,947 2,116,700 1,605,937 1,815,000 1,869,450 Fines 249,762 285,628 202,144 195,933 200,672 180,875 172,232 148,050 120,000 123,600 State-Shared Sales Tax 3,621,016 3,134,789 2,891,386 3,024,857 3,204,612 3,356,826 3,569,711 3,747,944 3,917,908 4,035,445 State-Shared Income Tax 5,544,763 5,886,132 5,086,954 3,834,911 3,461,359 4,189,186 4,571,196 4,964,635 4,937,719 5,085,851 Total 29,893,875$ 26,697,572$ 22,769,045$ 20,201,972$ 21,377,611$ 24,321,377$ 26,287,571$ 27,180,789$ 29,086,281$ 29,958,870$ (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 DepartmentNote: The above information is provided for bond requirements only and the bond does not require ten years of data.TOWN OF ORO VALLEY, ARIZONAHISTORICAL AND PROJECTED EXCISE TAX COLLECTIONSJUNE 30, 2015(UNAUDITED)ProjectedAcutalPage 131
Governmental Activities Business-Type ActivitiesCertificates Special Total PercentageFiscal Capital Note of Loan Excise Tax Assessment Revenue Capital Loan Primary of Personal PerYear Leases Payable Participation Payable Bonds Bonds Bonds Leases Payable Government Income Capita2006$ $ 215,000$ 2,604,143$ 13,173,254$ 3,945,000$ 64,437,008$ 84,374,405$ 5.48% 2,098$ 20072,500,000 12,891,148 3,760,000 61,568,852 80,720,000 4.81% 1,897 20088,000,000 12,183,046 3,565,000 59,586,954 5,731,766 89,066,766 5.02% 2,040 20098,000,000 11,449,146 3,360,000 57,575,854 107,046 5,788,122 86,280,168 4.72% 1,975 20105,513,133 4,939,750 3,145,000 52,305,500 123,883 6,305,650 72,332,916 3.86% 1,662 20112,513,133 7,149,780 2,920,000 49,803,970 35,392 5,473,096 67,895,371 3.73% 1,656 20129,485,968 2,685,000 45,988,331 5,893,122 64,052,421 3.85% 1,550 20139,155,743 2,435,000 43,349,121 185,307 5,575,041 60,700,212 3.59% 1,409 2014168,994 8,703,428 1,055,000 40,811,243 93,593 6,371,529 57,203,787 3.41% 1,366 2015128,594 1,000,000 8,215,673 925,000 37,683,805 118,862 8,169,765 56,241,699 3.25% 1,331 Source: Town of Oro Valley Finance Department and U.S. Census BureauTOWN OF ORO VALLEY, ARIZONARATIO OF OUTSTANDING DEBT BY TYPELAST TEN FISCAL YEARS (UNAUDITED)Page 132
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable Debt
Pima County 1,501,691$ 7.40% 111,125$
Pima County Community College District - 7.40% -
Amphitheater Unified School District No. 10 97,530,000 18.32% 17,867,496
Total Overlapping 17,978,621
Town of Oro Valley 10,269,267 100.00% 10,269,267
Total Direct 10,269,267
Total direct and overlapping debt 28,247,888$
Source: Pima County, Pima County Community College District and Amphitheater Unified School District No. 10.
(1) Proportion applicable to the Town of Oro Valley, Arizona, is computed on the ratio of secondary
assessed valuation for 2014-15.
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2015
(UNAUDITED)
Page 133
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015Debt Limit 108,807,180$ 120,435,053$ 151,537,994$ 178,543,952$ 180,420,396$ 174,800,436$ 163,628,543$ 154,118,112$ 144,627,563$ 145,824,512$ Total net debt applicable to limitLegal debt margin 93,101,081$ 108,807,180$ 120,435,053$ 151,537,994$ 178,543,952$ 180,420,396$ 174,800,436$ 163,628,543$ 154,118,112$ 145,824,512$ Total net debt applicable to the limitas a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Source: Town of Oro Valley Finance DepartmentFiscal YearTOWN OF ORO VALLEY, ARIZONALEGAL DEBT MARGIN INFORMATIONLAST TEN FISCAL YEARS(UNAUDITED)Page 134
Net secondary assessed valuation 560,863,509$
Water, Sewer, Light, Parks, Open Space and
Recreational Facility Bonds
Debt limit - 20% of secondary net assessed valuation 112,172,702$
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 112,172,702$
All other general obligation bonds
Debt Limit - 6% of secondary net assessed valuation 33,651,811$
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 33,651,811$
Total legal debt margin 145,824,512$
Source: Pima County Assessor's Office
TOWN OF ORO VALLEY
CALCULATION OF LEGAL DEBT MARGIN
JUNE 30, 2015
(UNAUDITED)
Page 135
Water Utility Revenue Bonds
Fiscal Gross
Year Revenues Principal Interest Total Coverage
2006 14,989,621$ 1,907,362$ 2,888,226$ 4,795,588$ 3.13
2007 14,810,173 2,336,330 2,552,081 4,888,411 3.03
2008 17,668,212 1,981,898 2,452,583 4,434,481 3.98
2009 16,223,544 2,011,100 2,784,444 4,795,544 3.38
2010 15,207,113 5,270,354 2,689,427 7,959,781 1.91
2011 15,359,681 2,501,530 2,505,960 5,007,490 3.07
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
Governmental Revenue Bonds
Fiscal Gross
Year Revenues Principal Interest Total Coverage
2006 25,018,727$ 452,638$ 415,640$ 868,278$ 28.81
2007 29,200,152 788,670 642,711 1,431,381 20.40
2008 30,629,130 708,102 501,150 1,209,252 25.33
2009 28,084,482 733,900 486,372 1,220,272 23.01
2010 25,695,598 6,510,516 933,536 7,444,052 3.45
2011 23,921,715 234,970 253,984 488,954 48.92
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
Certificates of Participation
Fiscal Gross
Year Revenues Principal Interest Total Coverage
2006 21,011,720$ 190,000$ 26,690$ 216,690$ 96.97
2007 25,018,727 205,000 16,566 221,566 112.92
2008 29,200,152 0.00
2009 30,629,130 0.00
2010 28,084,482 0.00
2011 25,695,598 0.00
2012 23,921,715 0.00
2013 28,135,868 0.00
2014 29,512,099 0.00
2015 31,739,256 0.00
Special Assessment
Fiscal Gross
Year Revenues Principal Interest Total Coverage
2006 $ $ 176,967$ 176,967$ 0.00
2007 379,840 185,000 186,828 371,828 1.02
2008 365,810 195,000 177,577 372,577 0.98
2009 367,539 205,000 248,429 453,429 0.81
2010 368,152 215,000 152,203 367,203 1.00
2011 365,811 225,000 147,548 372,548 0.98
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
Source: Town of Oro Valley Finance Department
Debt Service
Debt Service
TOWN OF ORO VALLEY, ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Debt Service
Debt Service
Page 136
Historical Historical Historical Historical Historical Historical Historical Actual2007/082008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15Revenues:Water revenues 11,686,598$ 11,424,787$ 12,071,031$ 12,038,482$ 11,578,981$ 11,585,181$ 12,169,375$ 11,280,269$ Water connection fees 1,925,656 1,588,084 293,607 244,376 462,762 706,159 1,413,047 591,045 Alternative water connection fees 512,543 812,740 475,973 400,988 759,958 1,253,055 2,376,682 1,172,170 Groundwater preservation fees 1,092,778 1,632,549 1,769,142 2,096,093 2,315,277 2,527,524 2,599,718 2,330,231 Other revenues 1,586,375 639,926 527,031 541,299 557,222 660,681 727,972 714,965 Interest income 864,262 125,458 70,329 38,445 166,654 - 110,615 124,593 Total revenues 17,668,212 16,223,544 15,207,113 15,359,683 15,840,854 16,732,600 19,397,409 16,213,273 Expenses:Personnel 2,324,921 2,447,642 2,514,595 2,418,118 2,497,865 2,537,150 2,659,895 2,767,143 Operations & maintenance 5,836,698 5,415,423 4,505,751 3,721,167 3,559,807 4,564,894 4,303,230 4,530,436 CAP water costs 602,682 185,490 154,575 903,855 636,519 1,093,105 1,499,594 1,570,793 Total expenses 8,764,301 8,048,555 7,174,921 7,043,140 6,694,191 8,195,149 8,462,719 8,868,372 Net water system revenues 8,903,911 8,174,989 8,032,192 8,316,544 9,146,662 8,537,452 10,934,690 7,344,901 Water supported debt service:2007 WIFA Loan 308,406 369,627 316,983 316,875 316,763 311,494 311,377 2009 WIFA Loan161,554 182,268 186,817 150,471 149,367 2014 WIFA Loan296,972 2003 Revenue Bonds 2,542,673 2,544,423 2,544,973 2,545,935 2,545,435 980,000 2003 Refunding Revenue Bonds 648,512 648,674 647,374 1,152,546 1,238,996 1,243,058 2005 Excise Tax Bonds 152,817 151,946 152,672 151,744 152,099 151,245 152,565 152,516 2007 Excise Tax Bonds 735,007 1,136,077 1,516,494 791,099 791,203 791,111 790,822 1,255,948 2012 Refunding Bonds956,975 1,968,281 1,971,082 2013 Refunding Bonds1,513,427 1,046,558 Total water supported debt service 4,079,008$ 4,789,526$ 5,231,140$ 5,119,860$ 5,226,876$ 4,625,969$ 4,887,060 5,183,820 Debt service coverage2.18 1.71 1.54 1.62 1.75 1.85 2.24 1.42Source: Oro Valley Finance DepartmentTOWN OF ORO VALLEY, ARIZONAHISTORICAL AND PROJECTED WATER SYSTEM REVENUES, EXPENSES, DEBT SERVICE AND COVERAGE(UNAUDITED)JUNE 30, 2015Page 137
Personal Per
Income Capita
(thousands Personal Unemployment
Year Population of dollars) Income Rate
2006 40,215 1,539,868,259$ 38,291$ 3.0%
2007 42,551 1,678,195,258 39,440 2.6%
2008 43,651 1,773,226,205 40,623 3.0%
2009 43,694 1,828,222,176 41,841 5.1%
2010 43,521 1,875,613,105 43,097 6.2%
2011 41,011 1,820,460,164 44,390 6.0%
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%
Source: US Census Bureau, Arizona Employment statistics and Pima Association of Governments
TOWN OF ORO VALLEY, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Page 138
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Function/Program
Administration
Town Clerk 4.56 4.90 4.54 4.44 4.60 4.00 4.60 4.60 4.60 4.50
Town Manager 8.00 7.00 7.00 7.10 7.10 8.10 8.50 8.10 6.00 6.00
Human Resources 3.50 2.00 5.00 5.00 5.00 4.00 4.00 4.00 4.00 3.00
Economic Development 2.00 2.00 3.00 1.00 1.00 1.40 1.40 2.25 2.25 2.00
Finance 7.00 7.00 7.00 7.00 7.00 7.00 9.00 9.00 8.00 7.50
Information Systems 7.00 7.30 6.50 6.50 8.00 8.00 7.00 8.00 5.00 4.00
Legal 6.00 6.00 6.00 8.00 8.00 7.00 10.00 10.25 10.25 10.25
Community Development
Building Safety 0.00 0.00 0.00 0.00 0.00 13.00 16.00 18.00 17.00 16.00
Community Development Admin. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4.00
Planning & Zoning 0.00 0.00 0.00 0.00 0.00 13.00 16.00 16.00 14.00 13.50
Development & Infrastructure Services 81.45 78.84 77.22 73.38 73.10 0.00 0.00 0.00 0.00 0.00
Parks and Recreation 36.20 37.61 27.26 20.62 22.70 27.50 27.60 28.10 27.00 20.80
Cultural Resources 0.00 0.00 1.35 1.30 1.30 0.00 0.00 0.00 0.00 0.00
Library 0.00 0.00 0.00 18.55 18.40 18.50 18.70 19.40 19.30 19.43
Police
Civilians 30.25 25.93 30.25 30.25 29.70 30.70 33.00 34.00 34.00 29.00
Officers 102.88 101.91 101.44 97.96 95.00 97.90 102.40 108.00 105.00 96.00
Magistrate Court 8.00 8.70 8.00 8.00 9.00 9.00 9.00 8.50 8.50 8.50
Public Works 0.00 0.00 0.00 0.00 0.00 47.70 52.90 56.10 53.13 54.00
Water Utility 37.48 37.00 36.00 36.00 34.00 35.00 36.30 35.50 35.50 34.00
Total 334.32 326.19 320.56 325.10 323.90 331.80 356.40 369.80 353.53 332.48
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
(UNAUDITED)
Full-time Equivalent Employees as of June 30
Page 139
Fiscal Irrigation Construction Turf Wholesale/Year Residential Commercial Irrigation Reclaimed Construction Reclaimed Turf Reclaimed Unmetered Total2006 7,227,509$ 614,474$ 921,364$ 368,784$ 940,753$ 670,968 1,235 9,709,471$ 2007 7,187,885 614,404 978,556 1,555 542,879 680,833 1,015,709 10,745,087$ 2008 7,511,067 667,910 1,146,222 796 652,446 1,630 666,558 1,039,969 11,021,820 2009 7,573,960 749,019 1,093,852 9,007 349,994 3,757 265,413 1,389,783 11,686,598 2010 8,040,762 902,432 1,152,529 14,240 222,447 720 354,308 1,383,592 11,434,785 2011 8,043,658 921,825 1,166,921 13,258 92,257 814 130,704 1,669,045 12,071,030 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 Source: Town of Oro Valley Water Utility DepartmentWATER UTILITY REVENUES BY USER TYPELAST TEN FISCAL YEARS(UNAUDITED)TOWN OF ORO VALLEY, ARIZONAPage 140
2006200720082009201020112012201320142015Function/ProgramPoliceBurglaries 97 112 125 125 120 100 134 105 75 77Citations (traffic) 8,203 8,183 7,497 9,256 6,736 5,244 5,084 5,456 4,668 4,486Investigations 5,106 6,656 6,892 917 732 746 711 681 765 832Total Arrests 2,053 2,236 2,254 2,478 2,176 1,932 1,716 1,564 1,679 1,721Thefts 568 575 577 528 567 656 571 563 561 500Development & Infrastructure ServicesStreet resurfacing (miles) 5.4 7.7 10.5 53.4 14.8 13.9 22.4 30.5 73.4 101.0Parks and RecreationRecreation Programs Held Annually 38 42 46 46 40 47 37 35 30 38Months of Public Pool Operations 10 10 10 10 12 12 12 10 12 12Parks Maintenance Man-Hours Worked 13,520 15,600 17,472 16,288 16,120 18,680 16,016 17,000 20,000 16,255LibraryCollection volume 86,000 90,000 96,000 95,750 100,142 100,652 97,364 0 0 0WaterNew connections 508 367 346 196 68 61 97 213 165 202Total connections 17,463 17,830 18,177 18,373 18,441 18,502 18,599 18,812 18,977 19,179TransitTotal route miles 165,202 165,202 175,841 163,964 138,752 138,333 200,058 353,936 439,512 392,071Passengers 14,387 14,858 16,908 17,101 15,573 14,873 20,119 32,442 39,196 39,102Source: Town of Oro Valley Finance DepartmentNote: Oro Valley Library was transferred to Pima County Library District on January 1, 2013.TOWN OF ORO VALLEY, ARIZONAOPERATING INDICATORS BY FUNCTIONLAST TEN FISCAL YEARS(UNAUDITED)Page 141
Base Rate Tier 1 Tier 2 Tier 3 Tier 4 GPF
Year monthly per 1,000 per 1,000 per 1,000 per 1,000 per 1,000
2006 12.65$ 1.98$ 2.68$ 3.58$ N/A 0.21$
2007 13.25 2.08 2.81 3.76 N/A 0.25
2008 13.25 2.08 2.81 3.76 5.00 0.40
2009 13.91 2.18 2.95 3.95 5.25 0.55
2010 14.19 2.20 2.99 4.03 5.38 0.75
2011 14.19 2.20 2.99 4.03 5.38 0.75
2012 14.19 2.20 2.99 4.03 5.38 0.95
2013 14.19 2.20 2.99 4.03 5.38 0.95
2014 14.19 2.23 3.01 4.07 5.49 0.95
2015 14.19 2.27 3.10 4.23 5.76 0.90
Source: Town of Oro Valley Water Utility
TOWN OF ORO VALLEY, ARIZONA
WATER RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
Page 142
2006200720082009201020112012201320142015Function/ProgramPoliceStations 1111111111Substations 3222333333Patrol units 105 105 113 109 108 53 67 66 64 74Other fleet 000005542434245Development & Infrastructure ServicesStreets (miles) 191.3 201.9 220.1 220.1 214.0 203.8 203.8 205.1 221.0 221.0Streetlights 93939393939393959595Traffic signals 10 15 16 16 18 16 17 19 19 19Parks and recreationAcreage 300 300 300 300 374 374 436 436 457 448Playgrounds2222222222Baseball/softball diamonds7777777777Community centers 0000000001Golf course holes 00000000045Tennis courts11111111132Swimming pools1111112224WaterWells 22 22 19 22 18 22 22 22 18 20Storage capacity (MG) 17 17.5 18 19 19 20 20 20 13 12Booster capacity 28 28 27 27 26 25 25 25 26 27TransitTransit vans 9999955597Transit mini buses 00000510121719Source: Town of Oro Valley Finance DepartmentTOWN OF ORO VALLEY, ARIZONACAPITAL ASSETS STATISTICS BY FUNCTIONLAST TEN FISCAL YEARS(UNAUDITED)Page 143
Page 144
(This page intentionally left blank)