HomeMy WebLinkAboutFinancial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/2020
Prepared by: Finance Department of Town of Oro Valley
David Gephart, CPA
Chief Financial Officer
Wendy Gomez, MPA
Finance and Budget Administrator
Aaron VanWinkle
Senior Accountant
Michael Dyckman, MPA
Senior Budget Analyst
Suzy Molinar
Accounting Specialist
Town of Oro Valley, Arizona
11000 N. La Cañada Drive
Oro Valley, AZ 85737
(520)229-4700
https://www.orovalleyaz.gov
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal 1
Organizational Chart 8
List of Town Officials 9
GFOA Certificate of Achievement 10
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 13
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 17
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 31
Statement of Activities 32
Fund Financial Statements:
Balance Sheet – Governmental Funds 36
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position 39
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 40
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds to the
Statement of Activities 43
Statement of Net Position – Proprietary Funds 44
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
FINANCIAL SECTION Page
BASIC FINANCIAL STATEMENTS
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds 45
Statement of Cash Flows – Proprietary Funds 46
Notes to Financial Statements 47
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues Expenditures and Changes in Fund Balances –
Budget and Actual:
General Fund 87
Community Center Fund 88
Pension Schedules 89
Notes to Required Supplementary Information 95
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 100
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 102
Special Revenue Funds:
Combining Balance Sheet 106
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 107
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 108
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
FINANCIAL SECTION Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Debt Service Fund:
Combining Balance Sheet 112
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 113
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual 114
Capital Projects Funds:
Combining Balance Sheet 118
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 119
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 120
STATISTICAL SECTION
Financial Trends:
Net Position by Component 127
Changes in Net Position 128
Fund Balances of Governmental Funds 130
Changes in Fund Balances of Governmental Funds 131
Revenue Capacity:
Principal Sales Taxpayers 132
Taxable Sales by Category 133
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
STATISTICAL SECTION Page
Direct and Overlapping Sales Tax Rates 134
Net Limited and Full Cash Assessed Value of Taxable Property 135
Historical and Projected Excise Tax Collections 136
Debt Capacity:
Ratio of Outstanding Debt by Type 137
Direct and Overlapping Governmental Activities Debt 138
Legal Debt Margin Information 139
Calculation of Legal Debt Margin 140
Pledged-Revenue Coverage 141
Historical and Projected Water System Revenues, Expenses,
Debt Service and Coverage 142
Demographic and Economic Information:
Demographic and Economic Statistics 143
Principal Employers 144
Operating Information:
Full-Time Equivalent Town Employees by Function 145
Water Utility Revenues by User Type 146
Operating Indicators by Function 147
Water Rates 148
Capital Assets Statistics by Function 149
INTRODUCTORY SECTION
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Page 1
December 31, 2020
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, 2020.
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, 2020, 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, 2020, are fairly presented in conformity with accounting principles
generally accepted in the United States of America. The independent auditor’s report is presented
as the first component of the financial section of this report.
Accounting principles generally accepted in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial
statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The
Town of Oro Valley’s MD&A can be found immediately following the report of the independent
auditors.
It’s in our nature…
www.orovalleyaz.gov
11000 N. La Cañada Drive • Oro Valley, Arizona 85737
phone: (520) 229-4700 • fax: (520) 229-0428
Page 2
PROFILE OF THE TOWN
The Town of Oro Valley was incorporated in 1974. Located in northeastern Pima County, three
miles north of Tucson, it sits at an elevation of 2,620 feet. The Town currently occupies a land area
of more than 36 square miles and serves an estimated population of 45,848. The population of Oro
Valley has increased 54% since the 2000 population of 29,700.
Based on 2019 Census estimates, Oro Valley has a median household income of $83,341,
compared to the median household income for the state of Arizona of $62,055. Oro Valley
residents enjoy a comfortable hometown feel with a strong family orientation, excellent education
system and abundant opportunities in a safe environment.
The Town of Oro Valley operates under the Council-Manager form of government. Policymaking
and legislative authority is vested in the Town Council, which consists of a Mayor and six
Councilmembers. Councilmembers are elected to four-year staggered terms. The citizens of Oro
Valley elect the Mayor. The Council, from among its members, selects the Vice-Mayor. The Town
Council is responsible, among other things, for the adoption of local ordinances, budget adoption,
the development of citizen advisory committees, the hiring and removal of the Town Manager, the
Police Chief, Town Attorney and Town Magistrate. The Town Manager is responsible for
implementation of the policies of the Town Council. The Town Manager appoints all other
department directors except those mentioned above under Town Council responsibilities.
The Town of Oro Valley provides a full range of services including police protection; the
construction and maintenance of streets and related infrastructure; proper planning and economic
development; the provision of water and stormwater services; public transportation services;
recreational activities and cultural events.
As with all cities in the State of Arizona, the Town of Oro Valley is required to comply with Article
IX, Section 20 (1) of the Arizona Constitution, which sets limits on the Town’s legal budget
capacity. The Town currently operates under the Alternative Expenditure Limitation – Home Rule
Option. This option allows the Town Council to establish the budgetary limits locally, rather than
being restricted by the State-imposed expenditure limitation. The voters must authorize this option
every four years. It was last authorized by the citizens of Oro Valley in August of 2018.
The annual operating budget serves as the foundation for the Town’s financial planning and
control. The objective of these budgetary controls is to ensure compliance with legal provisions
embodied in the annual operating budget approved by the Town Council. The Town’s proposed
operating budget is presented to the Town Council for review throughout the budget cycle starting
in December and approved in June. The Town Council is required to hold a public hearing on the
proposed budget and to adopt the final budget by no later than the second Monday in August. Budget
amendments requiring the approval of the Town Council include the following: budget transfers
between funds; transfers to fund additional personnel or increased expenditures 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.
Page 3
MAJOR INITIATIVES AND ACCOMPLISHMENTS FOR THE YEAR
The Council adopted Strategic Leadership Plan for fiscal years 2019-20 through 2020-21 is the
culmination of an extensive four-month process involving Town Council, Town staff, and the Oro
Valley community. Rooted deeply in the values and priorities of the Your Voice, Our Future 10-
year general plan, the two-year Strategic Leadership Plan provides organizational direction in
seven focus areas:
• Economic Vitality
• Culture and Recreation
• Public Safety
• Roads, Water and Town Assets
• Land Use
• Effective and Efficient Government
• Town Finances
While the Strategic Leadership Plan guides short-term decision-making, the General Plan provides
a longer term (up to 10 years) direction regarding the growth, development and redevelopment of
the community. Oro Valley is a community defined by the highest standard of environmental
integrity, education, infrastructure, services and public safety. It is a community of people working
together to create the Town’s future with a government that is responsive to residents and ensures
the long-term financial stability of the Town. Shown below are some of the Town’s
accomplishments during FY 2019-20.
• Received an upgrade by Fitch Ratings of its long-term rating from AA- to AA for Water
Revenue Bond obligations
• Received the Certificate of Achievement for Excellence in Financial Reporting Award,
Distinguished Budget Presentation Award with special recognition for the Town’s Capital
Improvement Program and Popular Annual Financial Reporting Award from the
Government Finance Officers Association
• Ended FY 2019-20 with a $1.3 million increase in the General Fund ending fund balance
• Issued a Mayoral Declaration of Emergency and amendments to help ensure the
community was protected from the COVID-19 pandemic
• Implemented remote Town Council meetings that still allowed for the conduct of
municipal business and effective public participation while affected by the Governor’s
stay-at-home order
• Approved the placement of a permanent base adjustment ballot initiative on the August
2020 primary election ballot
• Approved a plan to continue operating the Town’s 36-holes of golf with predictable
investments, and implement course improvements on a pay-as-you-go basis
• Secured federal CARES Act funding to assist in dealing with COVID-19-related
expenditures in the amount of approximately $5.3 million for use in FY 2020-21
• Developed an updated reclaimed water cost allocation model and completed the 2019
reclaimed water cost allocation analysis
• Updated and drafted continuity of operations plans across all Town departments
• Continued and accelerated La Cholla Blvd. widening project with partners from Pima
County and the Regional Transportation Authority
• Completed La Canada Drive & Moore Road roundabout construction
• Increased employee participation in foundational process improvement skills as part of the
Town’s Peak Performance initiative, resulting in 35 implemented improvements and an
estimated $65,000 in savings for FY19/20
Page 4
ECONOMIC CONDITIONS AND OUTLOOK
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Town
operates.
Healthy economic growth is being observed at both the local and state levels, which has impacted
the Town’s revenue collections for FY 2019-20 and is expected to continue into FY 2020-21,
despite the emergence of COVID-19. The Town continues to provide services and programs
without a property tax to fund operations and, therefore, is dependent upon state shared revenues
and local sales tax as major sources of revenue for its operating and capital expenditures. These
sources accounted for approximately 86% of total General Fund revenue for FY 2019-20.
Total local sales tax collections totaled $22.7 million for FY 19-20, which represents only a
$518,000 or 2.2% decrease over the last fiscal year. Given the onset of the global COVID-19
pandemic beginning in the fourth quarter of FY 19-20, this reduction was far less than originally
anticipated. Major local sales tax categories that experienced year-over-year increases or changes
compared to amounts collected in FY 2018-19 are as discussed below:
• Retail tax collections totaled $9.1 million for FY 19-20, up 4.6%, or nearly $397,000 over
last fiscal year.
• Restaurant and bar tax collections totaled $2.2 million for the fiscal year, down 9.4%,
or
$226,000 over last fiscal year due to the onset of COVID-19.
• Construction sales tax collections totaled $5.6 million for the fiscal year, down 6.9% or
$414,000 from last fiscal year.
The chart below is a look at the past five years’ local sales tax activity by category:
In FY 2019-20, the Town received $12.6 million for state shared revenues in the General Fund, up
6.4%, or $758,000 over last fiscal year. The trend chart below depicts the performance of both of
these revenue categories since FY 2010-11:
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Utility Taxes Retail Taxes Restaurant/Bar Taxes Construction TaxesMillionsSales Tax Activity by Sector -FY 15/16 through FY 19/20
FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20
Page 5
Critical to our success in this area is the preparation of realistic growth assumptions that help guide
the Town’s revenue projections. There continues to be healthy economic growth in Oro Valley, the
Tucson metropolitan region and State-wide. Arizona remains well-positioned to recover and
outpace the nation and most states in job, income and population. The state and the Tucson
Metropolitan Statistical Area (MSA-region) is forecast to return to pre-pandemic employment
levels by mid-2021. With Oro Valley’s proximity to the Tucson metro region, it is likely that the
Town’s local economy will continue to benefit with increased housing sales, retail and tourism
growth, and overall personal income growth.
April 1, 2020 marked the day in which the U.S. started its decennial census. The data collected in
this effort is a significant foundation for Oro Valley’s state-shared revenues, as well as other
economic considerations. The Town has actively participated in the regional census planning and
marketing efforts led by the Pima Association of Governments (PAG). However, because census
data has yet to be released, fiscal year 2020-21 state-shared revenue projections are conservative
with modest growth compared to the current year.
In the near term, the projected residential development is strong over the next two to three-year
period. In FY 2019-20, the Town estimated that 300 single family residential (SFR) building
permits would be issued; a total of 275 were issued by year-end. The FY 2020-21 budget includes
the assumption that 225 SFRs will be issued during the year as the COVID-19 pandemic would
cause a slowdown of home building in the region.
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
2010-11 through FY 2020-21 budget projections.
$-
$5
$10
$15
$20
$25
10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21
BudgetMillionsLocal Sales Tax Collections and State Shared Revenues
Sales Taxes State Shared Revenues
Page 6
Future Focus
During FY 2020-21, the Town will continue to identify and quantify both one-time revenues
derived from construction activity and recurring revenues derived from such areas as local sales
taxes and state- shared sources. The Town continues to dedicate one-time revenues to funding one-
time expenditures in the budget, specifically for capital improvement projects, while ensuring
sufficient recurring revenues exist to fund recurring expenditures 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 2020-21, the Town will focus its efforts on supporting the elements of the Town Council
adopted Strategic Leadership Plan all while navigating uncertainly and likely revenue disruptions
caused by COVID-19.
These strategies will be fulfilled in a number of different ways as highlighted below:
• The FY 2020-21 budget continues the $500,000 for payment toward the Town’s Public
Safety Retirement System (PSPRS) unfunded liability.
• The FY 2020-21 budget includes $1,500,000 for the Pavement Preservation Program in the
Highway Fund, which maintains the current condition of Town streets.
• The FY 2020-21 budget includes investments in Town facilities and infrastructure
including funding for enhancing the overall condition of parks and recreational facilities, a
new playground structure for Naranja Park, renovations at the historic Steam Pump Ranch,
and investments in the Town’s water infrastructure.
0
50
100
150
200
250
300
350
400
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21
Budget SFR PermitsPermit RevenueSFR Permits and Building Activity Revenue
SFR Permits Residential Permit Revenues Commercial Permit Revenues
Page 7
The Town also continues to maintain strong investment grade ratings on its outstanding excise tax
bonds, rated “AA” by Standard and Poor’s. This is largely achieved by the Council’s goal of
continuing to diversify the Town’s revenue base and maintaining strong fund balance reserves in
the General Fund, currently at $20.9 million, or 47% of FY 20-21 adopted expenditures of $45
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, 2019. This was
the twenty- sixth 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,
Mary Jacobs David Gephart
Town Manager Chief Financial Officer
Page 8
Organizational Chart
Page 9
TOWN OF ORO VALLEY, ARIZONA
LIST OF TOWN OFFICIALS
ELECTED OFFICIALS
Mayor Mr. Joe Winfield
Vice-Mayor Ms. Melanie Barrett
Council Member Ms. Joyce Jones-Ivey
Council Member Mr. Josh Nicolson
Council Member Ms. Rhonda Piña
Council Member Mr. Bill Rodman
Council Member Mr. Steve Solomon
TOWN MANAGEMENT
Town Manager Mary Jacobs
Assistant Town Manager Chris Cornelison
Chief Financial Officer David Gephart
Human Resources Director Judy Boros
Town Clerk Michael Standish
Magistrate George Dunscomb
Legal Services Director Tobin Sidles
Water Utility Director Peter Abraham
Chief of Police Kara Riley
Public Works Director/Town
Engineer
Paul Keesler
Community and Economic
Development Director
J.J. Johnston
Parks and Recreation Director Kristy Diaz-Trahan
Information Technology Director Chuck Boyer
Page 10
Page 11
FINANCIAL SECTION
Page 12
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Page 13
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, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Oro Valley, Arizona
(the Town), as of and for the year ended June 30, 2020, 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, 2020, 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.
Page 14
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, 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 December 31, 2020,
on our consideration of the 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 solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
Town of Oro Valley, Arizona’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the Town
of Oro Valley, Arizona’s internal control over financial reporting and compliance.
Heinfeld, Meech & Co., P.C.
Tucson, Arizona
December 31, 2020
Page 15
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
Page 16
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Page 17
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
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, 2020. 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 2019-20 as follows.
• The Town’s total net position of governmental activities increased $10.8 million to $147.4
million and business-type activities increased $5.3 million to $102.0 million representing 59
percent and 41 percent respectively, of the total net position of $249.5 million.
• General revenues from governmental activities accounted for $37.2 million in revenue, or 54
percent of all current fiscal year governmental activities revenues. Program specific revenues
in the form of charges for services and grants and contributions accounted for $31.5 million or
46 percent of total current fiscal year governmental activities revenues. The Town had $21.8
million of program revenues and $910,920 in general revenues related to business-type
activities.
• The Town had $57.8 million in expenses related to governmental activities, an increase of 3.9
percent from the prior fiscal year. The Town had $17.4 million in expenses related to business-
type activities, an increase of 6.2 percent from the prior fiscal year.
• Among major funds, the General Fund had $41.1 million in revenues, which primarily
consisted of sales taxes and intergovernmental revenues. The total expenditures of the General
Fund were $38.0 million. The General Fund’s fund balance increased from $19.6 million to
$20.9 million.
• The Community Center Fund had $6.6 million in revenues, which consisted primarily of sales
taxes and charges for services. The total expenditures of the Community Center Fund were
$5.9 million.
• The General Government CIP Fund had $1.3 million in revenues, which consisted primarily
of charges for services and intergovernmental revenues. The total expenditures of the General
Government CIP Fund were $3.6 million.
• The PAG/RTA Fund had $13.0 million in revenues, which consisted primarily of
intergovernmental revenues. The total expenditures of the PAG/RTA Fund were $13.2 million.
• The Water Fund operating revenues of $17.8 million exceeded operating expenses of $15.0
million.
Page 18
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-
sector business. The accrual basis of accounting is used for the government-wide financial
statements.
The statement of net position presents information on all of the Town’s assets liabilities, and
deferred inflows/outflows of resources with the difference reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial
position of the Town is improving or deteriorating.
The statement of activities presents information showing how the Town’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).
In the government-wide financial statements the Town’s activities are presented in the following
categories:
• Governmental activities – Most of the Town’s basic services are included here, such as
general government, public safety, highways and streets, transit, and culture and recreation.
Sales taxes, intergovernmental, and charges for services finance most of these activities.
• Business-type activities – The services provided by the Town included here are water and
stormwater utilities. The services are primarily financed through user fees and charges.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town
uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the Town can be divided into two categories: governmental funds
and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements use the modified accrual basis of accounting and focus on near-term inflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating the Town’s near-term financing
requirements.
Page 19
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with
similar information presented for governmental activities in the government-wide financial
statements. By doing so, readers may better understand the long-term impact of the Town’s
near-term financing decision. Both the governmental fund balance sheet and the governmental
fund statement of revenues, expenditures and changes in fund balances provide a reconciliation
to facilitate this comparison between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General, Community Center, General Government CIP, and PAG/RTA Funds, all of which are
considered to be major funds. Data from the other governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major governmental
funds is provided in the form of combining statements and schedules.
Proprietary funds. The Town maintains two types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide
financial statements. The Town uses enterprise funds to account for its Oro Valley Water Utility
and Stormwater Drainage Utility. The Town uses an internal service fund to finance its self-
insured employee health benefits. Because these services predominately benefit governmental
rather than business-type functions, the internal service fund has been included within
governmental activities in the government-wide financial statements.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements. The
notes to the financial statements can be found immediately following the basic financial
statements.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town’s budget
process, and pension plans. The Town adopts an annual expenditure budget for all governmental
funds. A schedule of revenues, expenditures and changes in fund balances – budget and actual has
been provided for the General Fund and the major Special Revenue Fund as required
supplementary information. Schedules for the pension plans have been provided as required
supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government’s financial position. In the
case of the Town, assets and deferred outflows exceeded liabilities and deferred inflows by $249.5
million as of the current fiscal year end.
The largest portion of the Town’s net position reflects its investment in capital assets (e.g., land,
water rights, buildings and improvements, improvements other than buildings, infrastructure,
vehicles, machinery and equipment and construction in progress), less any related outstanding debt
used to acquire those assets.
Page 20
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
The Town uses these capital assets to provide services to its citizens; consequently, these assets are
not available for future spending. Although the Town’s investment in its capital assets is reported
net of related outstanding debt, it should be noted that the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities. In addition, a portion of the Town’s net position represents resources that are subject to
external restrictions on how they may be used. The remaining balance is unrestricted and may be
used to meet the Town's ongoing obligations to its citizens and creditors.
The following table presents a summary of the Town’s net position for the fiscal years ended June
30, 2020 and June 30, 2019.
2020 2019 2020 2019 2020 Total 2019 Total
Current and other assets 39,867,203$ 38,879,671$ 34,960,112$ 34,783,615$ 74,827,315$ 73,663,286$
Capital assets, net 161,980,002 152,100,943 105,784,773 106,448,047 267,764,775 258,548,990 -
Total assets 201,847,205 190,980,614 140,744,885 141,231,662 342,592,090 332,212,276
Deferred outflows of resources 8,108,517 8,583,039 1,398,832 1,772,104 9,507,349 10,355,143
Current and other liabilities 6,817,895 7,913,936 3,392,461 4,436,971 10,210,356 12,350,907
Long-term liabilities 54,168,500 52,651,566 36,458,387 41,415,050 90,626,887 94,066,616
Total liabilites 60,986,395 60,565,502 39,850,848 45,852,021 100,837,243 106,417,523
Deferred inflows of resources 1,520,632 2,358,904 282,166 482,647 1,802,798 2,841,551
Net position
Net investment in capital assets 152,604,355 141,506,384 76,933,346 73,170,068 229,537,701 214,676,452
Restricted 6,601,283 5,752,355 - - 6,601,283 5,752,355
Unrestricted (11,756,943) (10,619,492) 25,077,357 23,499,030 13,320,414 12,879,538
Total net position 147,448,695$ 136,639,247$ 102,010,703$ 96,669,098$ 249,459,398$ 233,308,345$
Governmental Activities Business-type Activities
At the end of the current fiscal year the Town reported positive balances in all categories of net position,
except unrestricted governmental activities. This was due to pension liabilities. The same situation
held true for the prior fiscal year.
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 principal retirement of $1,042,354 in bonds and $2,803 in bond premium for
governmental activities, and the principal retirement of $4.3 million in bonds and
$116,678 in bond premium for business-type activities.
• The addition of $9.5 million and $3.7 million for governmental activities and business-
type activities, respectively, in accumulated depreciation due to depreciation expense.
Page 21
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
• The addition of $19.4 million and $3.0 million for governmental activities and business-
type activities, respectively, in capital assets related to buildings and improvements,
infrastructure, and water systems.
Changes in net position. The Town’s total revenues for the current fiscal year were $91.4 million.
The total cost of all programs and services was $75.2 million. The following table presents a
summary of the changes in net position for the fiscal years ended June 30, 2020 and June 30, 2019.
2020 2019 2020 2019 2020 Total 2019 Total
Revenues
Program revenues
Charges for services 11,540,201$ 11,000,151$ 21,662,374$ 18,945,404$ 33,202,575$ 29,945,555$
Operating grants and contributions 3,621,830 4,669,814 - - 3,621,830 4,669,814
Capital grants and contributions 16,338,347 8,302,441 169,194 2,899,213 16,507,541 11,201,654
General revenues
Sales taxes 22,757,403 22,924,400 - - 22,757,403 22,924,400
Franchise taxes 662,048 635,494 - - 662,048 635,494
Unrestricted state shared revenues 12,638,148 11,879,950 - - 12,638,148 11,879,950
Investment earnings
Interest 863,822 797,754 681,901 622,073 1,545,723 1,419,827
Net increase in fair value 234,445 334,461 229,019 152,769 463,464 487,230
Total revenues 68,656,244 60,544,465 22,742,488 22,619,459 91,398,732 83,163,924
Expenses
General government 17,210,855 14,727,150 - - 17,210,855 14,727,150
Public safety 19,416,010 18,958,436 - - 19,416,010 18,958,436
Highways and streets 10,201,832 10,791,469 - - 10,201,832 10,791,469
Transit 1,106,750 1,125,490 - - 1,106,750 1,125,490
Culture and recreation 9,551,170 9,699,357 - - 9,551,170 9,699,357
Interest on long-term debt 362,651 355,545 - - 362,651 355,545
Water - - 15,953,546 15,089,673 15,953,546 15,089,673
Stormwater - - 1,444,865 1,291,490 1,444,865 1,291,490
Total expenses 57,849,268 55,657,447 17,398,411 16,381,163 75,247,679 72,038,610
Excess/(Deficiency) before transfers 10,806,976 4,887,018 5,344,077 6,238,296 16,151,053 11,125,314
Transfers 2,472 2,581 (2,472) (2,581) - -
Change in net position 10,809,448 4,889,599 5,341,605 6,235,715 16,151,053 11,125,314
Beginning net position 136,639,247 131,749,648 96,669,098 90,433,383 233,308,345 222,183,031
Ending net position 147,448,695$ 136,639,247$ 102,010,703$ 96,669,098$ 249,459,398$ 233,308,345$
Governmental Activities Business-type Activities
Page 22
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
The following are significant current year transactions that have had an impact on the change in net
position.
• Total expenses increased $3.2 million, or 4.5 percent, primarily due to an increase in general
government costs related to COVID-19 and increased pension expenses.
• Total revenues increased $8.2 million, or 9.9 percent, primarily due to additional
intergovernmental revenue for road construction projects.
Governmental and Business-type activities. The following table presents the cost of the Town’s
major functional activities. The table also shows each function’s net cost (total cost less charges for
services generated by the activities and intergovernmental aid provided for specific programs). The
net cost shows the financial burden that was placed on the State and Town’s taxpayers by each of
these functions.
Total Net (Expense)Total Net (Expense)
Expenses Revenue Expenses Revenue
General government 17,210,855$ (11,229,594)$ 14,727,150$ (9,092,911)$
Public safety 19,416,010 (18,613,906) 18,958,436 (18,236,602)
Highways and streets 10,201,832 8,854,740 10,791,469 423,912
Transit 1,106,750 153,792 1,125,490 235,760
Culture and recreation 9,551,170 (5,151,271) 9,699,357 (4,659,655)
Interest on long-term debt 362,651 (362,651) 355,545 (355,545)
Total 57,849,268$ (26,348,890)$ 55,657,447$ (31,685,041)$
Water 15,953,546$ 4,434,406$ 15,089,673$ 5,328,698$
Stormwater drainage 1,444,865 (1,249) 1,291,490 134,756
Total 17,398,411$ 4,433,157$ 16,381,163$ 5,463,454$
Business-type Activities
Governmental Activities
June 30, 2020 June 30, 2019
• The cost of all governmental activities this year was $57.8 million. The increase of $2.2
million from the prior year was due primarily to an increase in general government expenses
due to COVID-19 and pensions.
• The cost of all business-type activities this year was $17.4 million. The increase of $1.0
million from the prior year was primarily due to an increase in operating costs in the water
utility.
• Federal and State government grants, developer contributions, and charges for services
subsidized certain governmental programs and business-type programs with revenues of
$53.3 million.
• Net cost of governmental activities of $26.3 million was financed by general revenues,
which are made up of primarily sales taxes and state shared revenues of $35.4 million.
Page 23
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
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 $29.7
million, an increase of $213,883. This was primarily due to an increase in intergovernmental
revenues.
The General Fund comprises 70.5 percent of the total governmental fund balance. Approximately
$10.4 million, or 50 percent of the General’s Fund ending fund balance is unassigned. The General
Fund is the principal operating fund of the Town. The increase in fund balance of $1.3 million to
$20.9 million as of fiscal year end was a result of increased intergovernmental revenues. Despite
the increase in intergovernmental revenue collections, General Fund revenues only increased
$141,626 as a whole. General Fund expenditures increased $2.5 million primarily due to increased
general government costs related to dealing with combatting COVID-19.
The Community Center Fund’s ending fund balance increased from $495,932 to $862,818, due to
a decrease in contracted services expenditures, as well as a decrease in operational costs and
facility closures due to COVID-19.
The General Government CIP Fund’s ending fund balance decreased from $3.6 million to $2.4
million due to a planned drawdown of fund balance to complete capital projects.
The PAG/RTA Fund’s ending fund balance decreased from $566,136 to $382,519 due to timing of
intergovernmental reimbursement agreements utilized to complete street projects.
Proprietary funds. Net position of the Enterprise Funds at the end of the year amounted to $102.0
million. This increased by $5.3 million during the fiscal year to the extent that revenues exceeded
expenses in the fund and from capital contributions of water systems.
Net position of the Internal Service Fund at the end of the year amounted to $2.1 million. This
increased by $1.1 million during the fiscal year to the extent that self-insurance premiums exceeded
claim payments and administrative expenses.
Page 24
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
BUDGETARY HIGHLIGHTS
There were no amendments to the Town of Oro Valley’s fiscal year 2019-20 operating and capital
budget. A schedule showing the original and final budget amounts compared to the Town’s actual
financial activity for the General Fund is provided in this report as required supplementary
information. The significant variances are summarized as follows:
• The favorable variance of $1.5 million in sales taxes was a result of conservative budget
estimates as well as better-than-expected collections.
• The favorable variance of $.7 million in general government expenditures was a result of
personnel savings from vacancies and hiring freezes, and other operational savings
throughout the year.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. At year end, the Town had invested $267.8 million in capital assets (net of
accumulated depreciation), including buildings, facilities, vehicles, computers, equipment, and
infrastructure assets. This amount represents a net increase of $9.2 million from last year. This was
primarily due to road improvement projects, expansion of the Town’s water system, as well as
depreciation expense of $13.2 million.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2020 and
June 30, 2019.
Increase/
2020 2019 (Decrease)
Land and improvements 19,518,801$ 19,518,801$ -$
Infrastructure 191,788,060 188,485,038 3,303,022
Buildings 41,732,499 40,261,741 1,470,758
Machinery, equipment, and vehicles 17,628,436 16,978,935 649,501
Construction in progress 23,119,854 9,473,241 13,646,613
Accumulated depreciation (131,807,648) (122,616,813) (9,190,835)
Net capital assets 161,980,002$ 152,100,943$ 9,879,059$
Increase/
2020 2019 (Decrease)
Land and improvements 2,410,660$ 2,410,660$ -$
Water rights 8,534,490 8,534,490 -
Water system 139,052,402 136,565,936 2,486,466
Stormwater system 3,478,844 3,230,283 248,561
Machinery, equipment, and vehicles 5,887,424 5,752,158 135,266
Construction in progress 3,388,124 3,286,193 101,931
Accumulated depreciation (56,967,171) (53,331,673) (3,635,498)
Net capital assets 105,784,773$ 106,448,047$ (663,274)$
Business-type
Activities
Governmental
Activities
Page 25
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
The estimated cost to complete current construction projects is $36.0 million. Additional
information on the Town’s capital assets can be found in Note 6.
Debt Administration. At year end, the Town had $40.6 million in long-term debt outstanding
with $5.3 million due within one year. Long-term debt decreased by $6.2 million due to the normal
repayment of bonds and other long-term debt. The following table presents a summary of the
Town’s outstanding long- term debt for the fiscal years ended June 30, 2020 and June 30, 2019.
Increase/
2020 2019 (Decrease)
Revenue bonds 9,171,710$ 10,049,064$ (877,354)$
Special assessment bonds 170,000 335,000 (165,000)
Capital leases 33,937 254,070 (220,133)
9,375,647$ 10,638,134$ (1,262,487)$
Increase/
2020 2019 (Decrease)
Revenue bonds 24,736,288$ 29,084,936$ (4,348,648)$
Loans payable 6,448,759 7,079,179 (630,420)
31,185,047$ 36,164,115$ (4,979,068)$
Business-type
Activities
Governmental
Activities
State statutes currently limit the amount of general obligation debt a Town may issue to 20 percent
of its net full cash assessed valuation for water, sewer, lights, open space preserves, parks,
playgrounds and recreational facilities. The current debt limitation for the Town is $146.1 million.
State statutes also currently limit the amount of general obligation debt a Town may issue to six
percent of its net full cash assessed valuation for all other purposes. The current debt limitation
for the Town is $43.8 million. The Town does not have any general obligation debt.
The Town has a bond rating of “AA+” from Standard & Poor’s and “AA” from Fitch Ratings on
outstanding revenue bonds.
Additional information on the Town’s long-term debt can be found in Notes 7 through 11.
Page 26
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2020
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
Many factors were considered by the Town’s administration during the process of developing the
fiscal year 2020-21 budget. Among them:
• The unemployment rate for the Town of Oro Valley is currently 8.6 percent. Pima
County’s and the State of Arizona’s unemployment rates are 10.0 percent and 9.9 percent,
respectively.
• The Town’s net full cash assessed valuation for the current year is $730,293,104.
• Single family residential (SFR) building permits issued in this fiscal year totaled 275, as
compared to 296 SFR building permits issued last fiscal year. Projections for SFR building
permits are 225 for fiscal year 2020-21.
The adopted combined operating and capital expenditure budget for fiscal year 2020-21 totals
$105.4 million, a decrease of $5.6 million, or 5 percent over last year’s budget of $111.0 million.
This decrease is primarily due to decreases in budgeted expenditures for operations and
maintenance costs and capital spending. The budget for fiscal year 2020-21 continues to place
emphasis on achieving the goals identified in the Town’s adopted Strategic Plan, which was
recently updated in fiscal year 2016-17 and includes the following focus areas: economic
development, complete community, parks and recreation, public safety, Town assets, water
resources and energy, cultural resources, land use and design, transportation and cost of 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 27
BASIC FINANCIAL STATEMENTS
Page 28
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Page 29
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Page 30
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Page 31
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2020
ASSETS
Current assets:
Cash and investments $32,140,416 $32,135,625 $64,276,041
Taxes receivable 2,576,913 - 2,576,913
Accounts receivable 444,431 2,583,943 3,028,374
Interest receivable 129,468 123,586 253,054
Intergovernmental receivable 4,286,831 - 4,286,831
Special assessments 170,000 - 170,000
Inventories 61,292 - 61,292
Prepaid items 57,852 116,958 174,810
Total current assets 39,867,203 34,960,112 74,827,315
Noncurrent assets:
Capital assets, non-depreciable 42,638,655 14,333,274 56,971,929
Capital assets, depreciable (net)119,341,347 91,451,499 210,792,846
Total noncurrent assets 161,980,002 105,784,773 267,764,775
Total Assets 201,847,205 140,744,885 342,592,090
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 905,765 905,765
Pension plan items 8,108,517 493,067 8,601,584
Total Deferred Outflows of Resources 8,108,517 1,398,832 9,507,349
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 3,028,216 684,209 3,712,425
Accrued wages and benefits 1,107,091 162,773 1,269,864
Intergovernmental payable 124,134 1,316,149 1,440,283
Interest payable - 486,136 486,136
Unearned revenue 768,959 - 768,959
Claims payable 251,704 - 251,704
Customer deposits payable 563,310 743,194 1,306,504
Other accrued liabilities 974,481 - 974,481
Compensated absences 1,813,015 232,778 2,045,793
Capital leases payable 33,937 - 33,937
Loans payable - 649,731 649,731
Bonds payable 1,112,090 3,544,910 4,657,000
Total current liabilities 9,776,937 7,819,880 17,596,817
Noncurrent liabilities:
Noncurrent portion of long-term obligations 51,209,458 32,030,968 83,240,426
Total noncurrent liabilities 51,209,458 32,030,968 83,240,426
Total Liabilities 60,986,395 39,850,848 100,837,243
DEFERRED INFLOWS OF RESOURCES
Pension plan items 1,520,632 282,166 1,802,798
NET POSITION
Net investment in capital assets 152,604,355 76,933,346 229,537,701
Restricted for:
Capital projects 3,849,159 - 3,849,159
Debt service 176,562 - 176,562
Public safety 244,194 - 244,194
Highway and streets 2,331,368 - 2,331,368
Unrestricted (11,756,943) 25,077,357 13,320,414
Total Net Position $147,448,695 $102,010,703 $249,459,398
Business-type
Activities
Governmental
Activities Total
The notes to the basic financial statements are an integral part of this statement.
Page 32
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2020
Functions/Programs
Primary Government
Governmental activities:
General government $17,210,855 $5,205,012 $90,761 $685,488 $(11,229,594)
Public safety 19,416,010 157,312 626,399 18,393 (18,613,906)
Highway and streets 10,201,832 1,675,929 1,746,177 15,634,466 8,854,740
Transit 1,106,750 110,309 1,150,233 - 153,792
Culture and recreation 9,551,170 4,391,639 8,260 - (5,151,271)
Interest on long-term debt 362,651 - - - (362,651)
Total governmental activities 57,849,268 11,540,201 3,621,830 16,338,347 (26,348,890)
Business-type activities:
Water 15,953,546 20,218,758 - 169,194 -
Stormwater 1,444,865 1,443,616 - - -
Total business-type activities 17,398,411 21,662,374 - 169,194 -
Total Primary Government $75,247,679 $33,202,575 $3,621,830 $16,507,541 $(26,348,890)
General revenues:
Taxes:
Sales taxes 22,757,403
Franchise taxes 662,048
Unrestricted state shared revenues 12,638,148
Investment income:
Interest 863,822
Net increase in fair value of investments 234,445
Transfers 2,472
Total general revenues and transfers 37,158,338
Changes in net position 10,809,448
Net position, beginning of year 136,639,247
Net position, end of year $147,448,695
Program Revenues
Revenue and
Changes in
Net Position
Contributions
Grants and
Capital
Activities
Governmental
Expenses Services
Charges for
Operating
Grants and
Contributions
The notes to the basic financial statements are an integral part of this statement.
Page 33
$- $(11,229,594)
- (18,613,906)
- 8,854,740
- 153,792
- (5,151,271)
- (362,651)
- (26,348,890)
4,434,406 4,434,406
(1,249) (1,249)
4,433,157 4,433,157
$4,433,157 $(21,915,733)
- 22,757,403
- 662,048
- 12,638,148
681,901 1,545,723
229,019 463,464
(2,472) -
908,448 38,066,786
5,341,605 16,151,053
96,669,098 233,308,345
$102,010,703 $249,459,398
Totals
Net (Expense) Revenue and
Changes in Net Position
Activities
Business-type
Page 34
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Page 35
FUND FINANCIAL STATEMENTS
Page 36
TOWN OF ORO VALLEY, ARIZONA
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2020
Community
ASSETS
Cash and investments $20,600,281 $1,089,666
Taxes receivable 2,356,652 220,261
Accounts receivable 360,303 16,168
Interest receivable 75,917 3,907
Intergovernmental receivable 677,032 -
Special assessments - -
Inventories - 61,292
Prepaid items 45,553 11,909
Due from other funds 675,713 -
Total Assets $24,791,451 $1,403,203
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable $991,913 $110,961
Accrued payroll and related benefits 1,107,091 -
Intergovernmental payable 124,134 -
Unearned revenue 335,690 272,079
Customer deposits payable 510,739 5,200
Other accrued liabilities 822,336 152,145
Due to other funds - -
Total Liabilities 3,891,903 540,385
Deferred inflows of resources:
Unavailable revenue - Special assessments - -
Unavailable revenue - Intergovernmental - -
Total Deferred inflows of resources:- -
Fund balances:
Nonspendable 45,553 73,201
Restricted - -
Committed 10,485,304 789,617
Assigned - -
Unassigned 10,368,691 -
Total Fund Balances 20,899,548 862,818
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $24,791,451 $1,403,203
General Center
The notes to the basic financial statements are an integral part of this statement.
Page 37
$2,595,985 $- $5,371,987 $29,657,919
- - - 2,576,913
6,463 - 61,497 444,431
18,399 - 24,688 122,911
- 3,338,683 271,116 4,286,831
- - 170,000 170,000
- - - 61,292
- - - 57,462
- - - 675,713
$2,620,847 $3,338,683 $5,899,288 $38,053,472
$210,111 $1,150,564 $415,750 $2,879,299
- - - 1,107,091
- - - 124,134
- - 161,190 768,959
- - 47,371 563,310
- - - 974,481
- 675,713 - 675,713
210,111 1,826,277 624,311 7,092,987
- - 170,000 170,000
- 1,129,887 - 1,129,887
- 1,129,887 170,000 1,299,887
- - - 118,754
- 382,519 5,088,877 5,471,396
- - 16,100 11,291,021
2,410,736 - - 2,410,736
- - - 10,368,691
2,410,736 382,519 5,104,977 29,660,598
$2,620,847 $3,338,683 $5,899,288 $38,053,472
PAG/RTA FundsGovernment CIP
General
Total
Funds
Non-Major
Governmental Governmental
Page 38
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Page 39
TOWN OF ORO VALLEY, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET POSITION
JUNE 30, 2020
Governmental Fund Balances $29,660,598
Some receivables are not available to pay for current period
expenditures and, therefore, are reported as unavailable revenues in the funds.1,299,887
Capital assets are not financial resources in governmental funds, but are
reported in the Statement of Net Position at their net depreciable value.
Governmental capital assets 293,787,650
Less accumulated depreciation (131,807,648) 161,980,002
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 8,108,517
Deferred inflows of resources related to pensions (1,520,632) 6,587,885
The Internal Service Fund is used by management to charge
the cost of insurance to the individual funds. The assets and
liabilities of the Internal Service Fund are included in the
Statement of Net Position.2,088,823
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported in the funds.
Compensated absences payable (2,389,833)
Capital leases (33,937)
Special assessment bonds (170,000)
Revenue bonds payable (9,171,710)
Net pension liability (42,403,020) (54,168,500)
Net Position of Governmental Activities $147,448,695
The notes to the basic financial statements are an integral part of this statement.
Page 40
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2020
REVENUES
Sales taxes $20,172,487 $2,584,916 $-
Franchise taxes 662,048 - -
Development impact fees - - -
Special assessments - - -
Integovernmental 14,527,210 - 199,810
Licenses, fees and permits 2,400,849 - -
Fines, forfeitures and penalties 111,611 - -
Charges for services 2,072,288 3,940,063 536,904
Investment income:
Interest 585,349 19,462 92,475
Net increase/(decrease) in fair value of investments 222,231 10,697 (7,206)
Other 311,906 - 485,678
Total Revenues 41,065,979 6,555,138 1,307,661
EXPENDITURES
Current:
General government 16,531,008 - -
Public safety 16,721,674 - -
Highway and streets - - -
Transit 1,110,444 - -
Culture and recreation 3,189,550 5,545,844 -
Capital outlay 409,984 123,002 3,607,970
Debt service:
Principal retirement - 220,133 -
Interest and fiscal charges - 30,463 -
Total Expenditures 37,962,660 5,919,442 3,607,970
REVENUES OVER (UNDER)
EXPENDITURES 3,103,319 635,696 (2,300,309)
OTHER FINANCING SOURCES/(USES)
Transfers in/(out), net (1,775,436) (268,810) 1,100,000
Total Other Financing Sources (Uses)(1,775,436) (268,810) 1,100,000
NET CHANGE IN FUND BALANCES 1,327,883 366,886 (1,200,309)
FUND BALANCES, Beginning of year 19,571,665 495,932 3,611,045
FUND BALANCES, End of year $20,899,548 $862,818 $2,410,736
CenterGeneral Government CIP
Community General
The notes to the basic financial statements are an integral part of this statement.
Page 41
$- $- $22,757,403
- - 662,048
- 980,302 980,302
- 175,197 175,197
12,121,864 3,991,208 30,840,092
- 50 2,400,899
- 71,770 183,381
913,924 - 7,463,179
- 166,536 863,822
- 8,723 234,445
- 168,004 965,588
13,035,788 5,561,790 67,526,356
- - 16,531,008
- 46,320 16,767,994
- 1,904,698 1,904,698
- - 1,110,444
- - 8,735,394
13,219,405 3,277,105 20,637,466
- 1,042,354 1,262,487
- 334,991 365,454
13,219,405 6,605,468 67,314,945
(183,617) (1,043,678) 211,411
- 946,718 2,472
- 946,718 2,472
(183,617) (96,960) 213,883
566,136 5,201,937 29,446,715
$382,519 $5,104,977 $29,660,598
PAG/RTA
Non-Major
Funds
Governmental
Funds
Governmental
Total
Page 42
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Page 43
TOWN OF ORO VALLEY, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2020
Net change in fund balances - total governmental funds $213,883
Amounts reported for governmental activities in the Statement of Activities are different
because:
Some revenues in the Statement of Activities do not provide current financial
resources and therefore are not reported as revenues in the governmental funds.964,887
Governmental funds report the portion of capital outlay for capitalized assets as expenditures.
However, in the Statement of Activities, the costs of those assets are allocated over their
estimated useful lives as depreciation expense.
Expenditures for capital assets $19,370,055
Less current year depreciation (9,470,832) 9,899,223
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.(2,550,182)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental funds.
Loss on disposal of assets $(20,164)
Amortization of deferred bond items 2,803
Compensated absences (65,455) (82,816)
The Internal Service Fund is used by management to charge the cost of insurance to
the individual funds. The changes in net position of the Internal Service Fund
is reported with governmental activities in the Statement of Activities.1,101,966
Repayments of long-term debt principal are expenditures in the governmental funds,
but the repayment reduces long-term liabilities in the Statement of Net Position.
Capital lease principal retirement $220,133
Revenue bond principal retirement 877,354
Special assessment bond principal retirement 165,000 1,262,487
Change in net position of governmental activities.$10,809,448
The notes to the basic financial statements are an integral part of this statement.
Page 44
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
JUNE 30, 2020
ASSETS
Current assets:
Cash and investments $31,507,599 $628,026 $32,135,625 $2,482,497
Accounts receivable 2,391,212 192,731 2,583,943 -
Interest receivable 119,457 4,129 123,586 6,557
Prepaid items 116,958 - 116,958 390
Total current assets 34,135,226 824,886 34,960,112 2,489,444
Noncurrent assets:
Capital assets, non-depreciable 14,333,274 - 14,333,274 -
Capital assets, depreciable (net)88,115,181 3,336,318 91,451,499 -
Total noncurrent assets 102,448,455 3,336,318 105,784,773 -
Total Assets 136,583,681 4,161,204 140,744,885 2,489,444
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 905,765 - 905,765 -
Pension and other postemployment plan items 398,726 94,341 493,067 -
Total Deferred Outflows of Resources 1,304,491 94,341 1,398,832 -
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 613,405 70,804 684,209 148,917
Accrued wages and benefits 129,881 32,892 162,773 -
Intergovernmental payable 1,316,149 - 1,316,149 -
Interest payable 486,136 - 486,136 -
Claims payable - - - 251,704
Customer deposits payable 743,194 - 743,194 -
Compensated absences 216,169 16,609 232,778 -
Loans payable 649,731 - 649,731 -
Bonds payable 3,544,910 - 3,544,910 -
Total current liabilities 7,699,575 120,305 7,819,880 400,621
Noncurrent liabilities:
Noncurrent portion of long-term obligations 31,606,070 424,898 32,030,968 -
Total noncurrent liabilities 31,606,070 424,898 32,030,968 -
Total Liabilities 39,305,645 545,203 39,850,848 400,621
DEFERRED INFLOWS OF RESOURCES
Pension and other postemployment plan items 228,178 53,988 282,166 -
NET POSITION
Net investment in capital assets 73,597,028 3,336,318 76,933,346 -
Unrestricted 24,757,321 320,036 25,077,357 2,088,823
Total Net Position $98,354,349 $3,656,354 $102,010,703 $2,088,823
Activities:
GovernmentalEnterprise Funds
Non-Major
Water Enterprise Fund Total Service Fund
Internal
The notes to the basic financial statements are an integral part of this statement.
Page 45
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
OPERATING REVENUES:
Charges for services $17,008,766 $1,443,576 $18,452,342 $-
Other 771,868 40 771,908 -
Self insurance premiums - - - 3,839,359
Total Operating Revenues 17,780,634 1,443,616 19,224,250 3,839,359
OPERATING EXPENSES:
Costs of sales and services 11,089,103 1,003,295 12,092,398 -
Contractual services 325,496 271,570 597,066 -
Depreciation and amortization 3,566,675 170,000 3,736,675 -
Claims payments - - - 2,174,893
Administrative - - - 103,651
Reinsurance premiums - - - 524,363
Total Operating Expenses 14,981,274 1,444,865 16,426,139 2,802,907
OPERATING INCOME (LOSS)2,799,360 (1,249) 2,798,111 1,036,452
NONOPERATING REVENUES (EXPENSES):
Development impact fees 1,627,435 - 1,627,435 -
Connection fees 810,689 - 810,689 -
Investment income:
Interest 660,927 20,974 681,901 43,104
Net increase in fair value of investments 226,845 2,174 229,019 22,410
Interest expense (972,272) - (972,272) -
Total Nonoperating Revenues (Expenses)2,353,624 23,148 2,376,772 65,514
INCOME (LOSS) BEFORE TRANSFERS 5,152,984 21,899 5,174,883 1,101,966
CAPITAL CONTRIBUTIONS 169,194 - 169,194 -
TRANSFERS OUT (2,472) - (2,472) -
NET CHANGE IN NET POSITION 5,319,706 21,899 5,341,605 1,101,966
NET POSITION, Beginning of year 93,034,643 3,634,455 96,669,098 986,857
NET POSITION, End of year $98,354,349 $3,656,354 $102,010,703 $2,088,823
Enterprise Funds Governmental
Water Enterprise Fund Total Service Fund
Activities:
Non-Major Internal
The notes to the basic financial statements are an integral part of this statement.
Page 46
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from customers $17,901,228 $1,448,078 $19,349,306 $-
Cash received from premiums - - - 3,839,359
Cash payments to suppliers for goods and services (8,116,035) (720,796) (8,836,831) (518,593)
Cash payments to employees for services (3,204,971) (727,580) (3,932,551) -
Cash payments for claims - - - (2,256,612)
Net cash provided by (used for) operating activies 6,580,222 (298) 6,579,924 1,064,154
Cash flows from noncapital and related financing activities:
Interfund transfers (2,472) - (2,472) -
Connection fees 810,689 - 810,689 -
Net cash provided by (used for) noncapital financing activies 808,217 - 808,217 -
Cash flows from capital and related financing activities:
Development impact fees 1,627,435 - 1,627,435 -
Acquisition of capital assets (2,515,113) (354,592) (2,869,705) -
Principal paid on long-term debt (4,979,066) - (4,979,066) -
Interest on long-term debt (1,077,574) - (1,077,574) -
Net cash provided by (used for) capital financing activies (6,944,318) (354,592) (7,298,910) -
Cash flows from investing activities:
Investment income 768,315 19,019 787,334 58,957
Net cash provided by (used for) investing activies 768,315 19,019 787,334 58,957
Net increase (decrease) in cash and cash equivalents 1,212,436 (335,871) 876,565 1,123,111
Cash and cash equivalents, beginning of year 30,295,163 963,897 31,259,060 1,359,386
Cash and cash equivalents, end of year $31,507,599 $628,026 $32,135,625 $2,482,497
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used for) Operating Activities
Operating income (loss)$2,799,360 $(1,249) $2,798,111 $1,036,452
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation and amortization 3,566,675 170,000 3,736,675 -
Change in assets and liabilities:
Accounts receivable 96,562 4,462 101,024 -
Prepaid items (42,452) - (42,452) (390)
Accounts payable (51,466) (209,578) (261,044) 109,811
Claims payable - - - (81,719)
Accrued wages and benefits 72,086 8,838 80,924 -
Customer deposits payable 24,032 - 24,032 -
Pension/OPEB items 115,425 27,229 142,654 -
Total adjustments 3,780,862 951 3,781,813 27,702
Net cash provided by (used for) operating activities $6,580,222 $(298) $6,579,924 $1,064,154
Non-cash capital and financing activities
Contribution of assets from developers $169,194 $- $169,194 $-
Governmental
Activities
Internal Service
FundWater
Non-major
Enterprise Fund Total
Enterprise Funds
The notes to the basic financial statements are an integral part of this statement.
Page 47
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Oro Valley, Arizona (Town) have been prepared in
conformity with accounting principles generally accepted in the United States of America as
applied to government units. The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
The more significant of the Town’s accounting policies are described below.
A. Reporting Entity
The Town is a municipal entity governed by an elected mayor and council. The financial
reporting entity consists of a primary government and its component units. A component unit
is a legally separate entity that must be included in the reporting entity in conformity with
generally accepted accounting principles. The Town is a primary government that has a
separately elected governing body, is legally separate, and is fiscally independent of other state
or local governments. Furthermore, there are no component units combined with the Town for
financial statement presentation purposes, and the Town is not included in any other
governmental reporting entity. Consequently, the Town’s financial statements include the funds
of those organizational entities for which its elected governing body is financially accountable.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) present financial information about the Town as a whole. The reported information
includes all of the nonfiduciary activities of the Town. For the most part, the effect of internal
activity has been removed from these statements. These statements are to distinguish between
the governmental and business-type activities of the Town. Governmental activities normally
are supported by sales taxes and intergovernmental revenues, and are reported separately from
business-type activities, which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Sales taxes, franchise taxes, unrestricted state shared revenues, investment income and other
items not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major
individual governmental funds and the major individual enterprise fund are reported as separate
columns in the fund financial statements.
Page 48
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-wide Financial Statements – The government-wide financial statements are
reported using the economic resources measurement focus and the accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. As a general rule, the effect of internal activity has been eliminated from the government-
wide financial statements; however, the effects of interfund services provided and used between
functions are reported as expenses and program revenues at amounts approximating their
external exchange value.
Fund Financial Statements – Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Sales taxes, franchise taxes, licenses and permits, charges for services, special assessments and
investment income associated with the current fiscal period are all considered to be susceptible
to accrual and have been recognized as revenues of the current fiscal period. Miscellaneous
revenue is not susceptible to accrual because generally they are not measurable until received
in cash. Grants and similar awards are recognized as revenue as soon as all eligibility
requirements imposed by the grantor or provider have been met. Unearned revenue arises when
resources are received by the Town before it has legal claim to them, as when grant monies are
received prior to meeting all eligibility requirements imposed by the provider.
The Council adopts the budget at the fund level as a total amount of expenditures. Financial
control is administered by fund, with budgetary control for operating performance regulated at
the departmental level, e.g., finance, development services, police, and parks and recreation.
The legal level of budgetary control (i.e. the level at which expenditures may not legally exceed
appropriations) is at the fund level.
Page 49
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The focus of governmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column. Non-major funds are
aggregated and presented in a single column. The internal service fund is presented in a single
column on the face of the proprietary fund statements.
The Town reports the following major governmental funds.
General Fund – This fund accounts for all financial resources of the Town, except those
required to be accounted for in other funds.
Community Center Fund – This fund accounts for the activity of the Oro Valley
Community Center, including golf, tennis, food and beverage and fitness revenues and
expenditures. This fund also accounts for the half cent sales taxes revenues dedicated to
these operations.
General Government CIP Fund – This fund accounts for governmental capital asset
projects.
PAG/RTA Fund – This fund accounts for revenues dedicated to Town improvements
funded through Pima Association of Governments and the Regional Transportation
Authority.
The Town reports the following major proprietary funds.
Water Fund – This fund accounts for the costs to operate, construct and finance the Town
water system.
The Proprietary Fund financial statements are reported using the economic resources
measurement focus and accrual basis of accounting. Proprietary funds distinguish operating
revenues and expenses from nonoperating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a
proprietary fund’s principal ongoing operations. The principal operating revenues of the Town’s
internal service fund is charges for health benefits. The principal operating revenues of the
Town’s enterprise funds are charges to customers for water and stormwater drainage services.
Operating expenses for these funds include the cost of sales and services, administrative
expenses, depreciation, and amortization. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
D. Cash and Investments
For purposes of the Statement of Cash Flows, the Town considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. Cash and cash
equivalents at year end were cash on hand, cash in bank, and cash and investments held by
another governmental entity as the Town's fiscal agent.
Page 50
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Arizona statute requires a pooled collateral program for public deposits and a Statewide
Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of
the pooled collateral program is to ensure that governmental entities’ public deposits placed in
participating depositories are secured with collateral of 102 percent of the public deposits, less
any applicable deposit insurance. An eligible depository may not retain or accept any public
deposit unless it has deposited the required collateral with a qualified escrow agent or the
Administrator. The Administrator manages the pooled collateral program, including reporting
on each depository’s compliance with the program.
Nonparticipating interest-earning investment contracts are stated at cost. Money market
investments and participating interest investment contracts with a remaining maturity of one
year or less at time of purchase are stated at amortized cost. All other investments are stated at
fair value.
E. Investment Income
Investment income is composed of interest, dividends, and net changes in the fair value of
applicable investments.
F. Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at
the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current
portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of
interfund loans). All other outstanding balances between funds are reported as “due to/from
other funds.” Interfund balances between governmental funds are eliminated on the Statement
of Net Position
All receivables are shown net of an allowance for uncollectibles.
G. Inventory
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories consist
of expendable supplies held for consumption. Inventories are recorded as expenses when
consumed on the government-wide financial statements and the fund financial statements.
Page 51
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in the government-wide and fund financial statements. Prepaid items
are recorded as expenses when consumed in the government-wide financial statements and the
fund financial statements.
I. Capital Assets
Capital assets, which include land, water rights, buildings and improvements, improvements
other than buildings, infrastructure, vehicles, machinery, equipment, and construction in
progress, are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets are defined by the Town as assets with an
initial, individual cost of $5,000 or more and an estimated useful life of more than one year.
Capital assets are recorded at historical cost if purchased or constructed. Donated capital assets
are recorded at acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized.
Certain capital assets of the Town are depreciated using the straight-line method over the
following estimated useful lives:
Assets Years
Buildings 50
Improvements other than buildings 20-30
Infrastructure 20-50
Vehicles 4-6
Machinery and equipment 7-20
J. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position may report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period and so will
not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position may report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period and so will not
be recognized as an inflow of resources (revenue) until that time.
Page 52
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
K. Compensated Absences
The Town’s employee annual and sick leave policies generally provide for granting annual and
sick leave with pay. Full-time employees accrue annual leave based on the number of years
employed. Employees who terminate employment shall be paid in a lump sum. Full-time
employees accumulate sick leave at the rate of one work day per month. Part-time employees
whose normal week is twenty hours or more receive sick leave at half the rate of full-time
employees. Once an employee has exceeded 480 hours of accrued sick leave, one half of the
sick leave balance in excess of the 480 hours shall be paid to the employee upon separation
from employment. The current and long-term liabilities, including related benefits, for
accumulated vacation and sick leave are reported on the government-wide financial statements.
A liability for these amounts, including related benefits, is reported in governmental funds only
if they have matured, for example, as a result of employee leave, resignations and retirements.
Generally, resources from the General Fund are used to pay for compensated absences.
L. Pensions
For purposes of measuring the net pension liabilities, related deferred outflows of resources and
deferred inflows of resources, and related expenses, information about the pension plans’
fiduciary net position and additions to/deductions from the plans’ fiduciary net position have
been determined on the same basis as they are reported by the plan. For this purpose, benefit
payments (including refunds of employee contributions) are recognized when due and payable
in accordance with the benefit terms. Investments are reported at fair value.
M. Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities on the
statement of net position. Bond premiums and discounts are amortized over the life of the bonds
using the straight-line method. Deferred amounts on refunding result from the difference
between the carrying value of refunded debt and its reacquisition price. This amount is deferred
and amortized over the shorter of the life of the refunded or refunding debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources while discounts on debt issuances are reported as other financing
uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
The Town's legal debt limit for water, sewer, lights, open space preserves, parks, playgrounds,
and recreational facilities is $146.1 million, and for all other purposes is $43.8 million. The
Town does not have any related debt.
Page 53
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N. Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as
interfund transfers. Interfund transfers between governmental funds are eliminated in the
Statement of Activities. Interfund transfers in the fund statements are reported as other
financing sources/uses in governmental funds and after nonoperating revenues/expenses in
proprietary funds.
O. Net Position Flow Assumption
In the government-wide and proprietary fund financial statements the Town applies restricted
resources first when outlays are incurred for purposes for which either restricted or unrestricted
amounts are available.
P. Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.
Page 54
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 2 – FUND BALANCE CLASSIFICATIONS
Fund balances of the governmental funds are reported separately within classifications based
on a hierarchy of the constraints placed on the use of those resources. The classifications are
based on the relative strength of the constraints that control how the specific amounts can be
spent. The classifications are nonspendable, restricted, and unrestricted, which includes
committed, assigned, and unassigned fund balance classifications.
Nonspendable. The nonspendable fund balance classification includes amounts that cannot be
spent because they are not in spendable form or are legally or contractually required to be
maintained intact.
Restricted. Fund balance is reported as restricted when constraints placed on the use of
resources are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments or is imposed by law through
constitutional provisions or enabling legislation.
Committed. The committed fund balance classification includes amounts that can be used only
for the specific purposes imposed by formal action of the Town Council through the approval
of a Town resolution. Those committed amounts cannot be used for any other purpose unless
the Town Council removes or changes the specified use by taking the same type of action it
employed to previously commit those amounts. The committed fund balance reported in the
General Fund is to be used for contingency reserve. The committed fund balance reported in
the Townwide Facilities Projects Fund is used for improvements to Town parks. The
committed fund balance reported in the Community Center Fund is used for the culture and
recreation activity of the Community Center.
Assigned. Amounts in the assigned fund balance classification are intended to be used by the
Town for specific purposes but do not meet the criteria to be classified as restricted or
committed. In governmental funds other than the General Fund, assigned fund balance
represents the remaining amount that is not restricted or committed. In the General Fund,
assigned amounts represent intended uses established by the Town Council or a management
official delegated that authority by the formal Town Council action. This authorization has
been given to the Town Manager through the approval of Resolution No. (R)11-30, which
amended the Town Financial and Budgetary Policies. The assigned fund balance in the General
Government CIP Fund is to be used for governmental capital asset projects.
Unassigned. Unassigned fund balance is the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. In other governmental
funds, the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had be restricted, committed, or
assigned.
The Town applies restricted resources first when outlays are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
Page 55
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 2 – FUND BALANCE CLASSIFICATIONS (Continued)
The table below provides detail of the major components of the Town’s fund balance
classifications at year end.
Fund Balances:
Nonspendable:
Inventory $- $61,292 $- $- $-
Prepaid items 45,553 11,909 - - -
Restricted:
Roadway maintenance - - - - 818,962
Debt service - - - - 176,562
Capital projects - - - 382,519 3,849,159
Public safety - - - - 244,194
Committed:
Contingency reserve 10,485,304 - - - -
Culture & recreation - 789,617 - - -
Park improvements - - - - 16,100
Assigned:
Townwide capital - - 2,410,736 - -
Unassigned:10,368,691 - - - -
Total Fund Balances $20,899,548 $862,818 $2,410,736 $382,519 $5,104,977
PAG/RTA
Fund
Non-Major
Governmental
Funds
General
Fund
Community
Center Fund
General
Government
CIP Fund
NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Excess Expenditures Over Budget – At year end, the Town had expenditures in the Federal
Seizures and Forfeitures and PAG/RTA Funds that exceeded the budget, however, this does
not constitute a violation of legal provisions.
NOTE 4 – CASH AND INVESTMENTS
A.R.S. authorize the Town to invest public monies in obligations of the U.S. Government and
its agencies, obligations of the State and certain local government subdivisions, interest-
bearing savings accounts and certificates of deposit, collateralized repurchase agreements,
certain obligations of U.S. corporations, and certain other securities. The statutes do not include
any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate
risk, or foreign currency risk for the Town’s investments.
Custodial Credit Risk – Deposits. Custodial Credit risk is the risk that in the event of bank
failure the Town’s deposits may not be returned to the Town. The Town does not have a deposit
policy for custodial credit risk. At year end, the carrying value of the Town’s deposits was
$2,898,462 and the bank balance was $3,019,656. At year end, all of the Town’s deposits were
covered by collateral held by the pledging financial institution’s trust department or agent but
not in the Town’s name and no amounts were uninsured and uncollateralized. Additionally, the
Town had cash on hand of $11,951.
Page 56
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 4 – CASH AND INVESTMENTS (Continued)
Fair Value Measurements. The Town categorizes its fair value measurements within the fair
value hierarchy established by generally accepted accounting principles. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset.
• Level 1 inputs are quoted prices in active markets for identical assets
• Level 2 inputs are significant other observable inputs
• Level 3 inputs are significant unobservable inputs
Valuation Techniques. Equity and debt securities classified in Level 1 of the fair value
hierarchy are valued using prices quoted in active markets for those securities. Money markets
and certificates of deposit securities classified in Level 2 of the of the fair value hierarchy are
valued using a matrix pricing techniques. Matrix pricing is used to value securities based on
the securities’ relationship to benchmark quoted prices.
The State Treasurer’s pools are external investment pools, the Local Government Investment
Pool (Pool 5) and Local Government Investment Pool – Government (Pool 7), with no
regulatory oversight. The pools are as an investment company are not registered with the
Securities and Exchange Commission. The activity and performance of the pools are reviewed
monthly by the State Board of Investment. The fair value of each participant’s position in the
State Treasurer investment pools approximates the value of the participant’s shares in the pool
and the participants’ shares are not identified with specific investments. Participants in the pool
are not required to categorize the value of shares in accordance with the fair value hierarchy.
The County Treasurer’s pool is an external investment pool with no regulatory oversight. The
pool is not required to register (and is not registered) with the Securities and Exchange
Commission. The fair value of each participants’ position in the County Treasurer investment
pool approximates the value of the participants’ shares in the pool and the participants’ shares
are not identified with specific investments. Participants in the pool are not required to
categorize the value of shares in accordance with the fair value hierarchy.
Custodial Credit Risk – Investments. The Town’s investment in the State and County
Treasurer’s investment pools represents a proportionate interest in the pool’s portfolio;
however, the Town’s portion is not identified with specific investments and is not subject to
custodial credit risk.
Page 57
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 4 – CASH AND INVESTMENTS (Continued)
All investments in which the fair value hierarchy is applicable are measured at fair value on a
recurring basis. At year end, the Town’s investments consisted of the following:
Investment Type Fair Value Category Less than 1 1-5 Moody's S&P's
Money Market - PFM Group 1,962,882 Level 2 1,962,882 N/A AAAm
Money Market - Wells Fargo 250,773 Level 2 250,773 N/A N/A
Money Market - Zion Bank 164,175 Level 2 164,175 N/A N/A
Money Market - US Bank 5,173,438 Level 2 5,173,438 N/A N/A
Money Market - BNY Mellon 2,135,652 Level 2 2,135,652 N/A N/A
Certificates of Deposit 1,821,874 Level 2 1,821,874 A1 A+
U.S. Treasuries 18,420,630 Level 1 6,511,785 11,908,845 Aaa AA+
Supra-National Agency:
International Bank of Reconstruction and Dev.1,048,065 Level 1 375,821 672,244 Aaa AAA
Inter-American Development Bank 856,244 Level 1 856,244 Aaa AAA
Asian Development Bank 308,305 Level 1 308,305 Aaa AAA
International Finance Corporation 609,568 Level 1 609,568 Aaa AAA
African Development Bank 386,431 Level 1 386,431 Aaa AAA
Collateralized Mortgage Obligation
FHMS 302,566 Level 1 302,566 Aaa AA+
FNA 163,476 Level 1 163,476 Aaa AA+
Federal Home Loan Mortgage Corporation 468,017 Level 1 468,017 Aaa AA+
Asset-Backed Security
Credit Rating - Aaa and AAA 3,305,558 Level 1 72,634 3,232,924 Aaa AAA
Credit Rating - N/A and AAA 1,191,449 Level 1 1,191,449 N/A AAA
Credit Rating - Aaa and N/A 2,181,706 Level 1 2,181,706 Aaa N/A
U.S. Agencies:
Fannie Mae 1,360,558 Level 1 432,695 927,863 Aaa AA+
Freddie Mac 887,015 Level 1 887,015 Aaa AA+
Federal Home Loan Banks 906,244 Level 1 906,244 Aaa AA+
Federal National Mortgage Association 475,511 Level 1 475,511 Aaa AA+
Corporate Notes:
Credit Rating - Baa2 and BBB-228,456 Level 1 228,456 Baa2 BBB-
Credit Rating - A3 and A 386,860 Level 1 247,636 139,224 A3 A
Credit Rating - A3 and A-931,944 Level 1 931,944 A3 A-
Credit Rating - A2 and A 1,537,372 Level 1 685,381 851,991 A2 A
Credit Rating - A2 and A-1,587,177 Level 1 1,587,177 A2 A-
Credit Rating - A1 and A 144,209 Level 1 144,209 A1 A
Credit Rating - A1 and A+1,719,829 Level 1 228,912 1,490,917 A1 A+
Credit Rating - A1 and AA-424,093 Level 1 424,093 A1 AA-
Credit Rating - Aa3 and A+230,045 Level 1 230,045 Aa3 A+
Credit Rating - Aa3 and AA-231,749 Level 1 231,749 Aa3 AA-
Credit Rating - Aa2 and AA 318,552 Level 1 318,552 Aa2 AA
Credit Rating - Aa1 and AA+234,563 Level 1 234,563 Aa1 AA+
Credit Rating - Aa1 and AA 334,229 Level 1 334,229 Aa1 AA
52,689,215 24,135,329 28,553,886
County Treasurer's Investment Pool 340,207 Not applicable 202 days average maturities N/A
State Treasurer's Investment Pool 5 8,336,206 Not applicable 47 days average maturities AAA/S1+
Total 61,365,628
Investment Maturities (in Years)Credit Quality Ratings
Page 58
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 4 – CASH AND INVESTMENTS (Continued)
Interest Rate Risk. The Town has implemented an investment policy that will minimize
interest rate risk, which is the risk that the market value of securities in the portfolio will fall
due to changes in market interest rates by the following.
1. Structuring the investment portfolio so that securities mature to meet cash requirements
for ongoing operations, thereby avoiding the need to sell securities on the open market
prior to maturity; and
2. Investing operating funds primarily in shorter-term securities, money market mutual
funds, or similar investment pools limiting the average maturity in the portfolio in
accordance with this policy.
Credit Risk. The Town has implemented an investment policy that will minimize credit risk,
which is the risk of loss due to the failure of the security or backer by the following:
1. Limiting investments to the types of securities listed in Section 6 of this investment
policy;
2. Pre-qualifying financial institutions, broker/dealers, intermediaries, and advisers with
which the Town will do business in accordance with Section 5; and
3. Diversifying the investment portfolio so that the impact of potential losses from any
one type of security or from any one individual issuer will be minimized.
Concentration of Credit Risk. The Town places no limit on the amount the Town may invest
in any one issuer. The investments in Money Markets, Certificates of Deposit, U.S. Treasuries,
Supranational Agency Bonds, Collateralized Mortgage Obligations, Asset-Back Securities,
U.S. Agencies, Corporate Securities, County Treasurer’s Investment Pool, and State
Treasurer's Investment Pool 5, represent 16%, 3%, 30%, 5%, 2%, 11%, 6%, 14%, 1%, and
14% of the Town's total investments, respectively.
NOTE 5 – RECEIVABLES
Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and
presented separately in the financial statements with the exception of intergovernmental
receivables. Intergovernmental receivables, net of allowance for uncollectibles, as of year-end
for the Town’s individual major funds and non-major governmental funds in the aggregate,
were as follows:
Intergovernmental receivables:
Due from federal government $159,270 $- $-
Due from state government 517,762 - 271,116
Due from other governments - 3,338,683 -
Net intergovernmental receivables $677,032 $3,338,683 $271,116
Non-Major
General
Fund
PAG/RTA
Fund Funds
Governmental
Page 59
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 6 – CAPITAL ASSETS
A summary of capital asset activity for the current fiscal year follows:
Governmental Activities:
NON-DEPRECIABLE
Land $19,518,801 $- $- $19,518,801
Construction in progress 9,473,241 14,826,883 (1,180,270) 23,119,854
Total non-depreciable 28,992,042 14,826,883 (1,180,270) 42,638,655
DEPRECIABLE
Infrastructure 188,485,038 3,303,022 - 191,788,060
Buildings & improvements 40,261,741 1,470,758 - 41,732,499
Machinery, equipment & vehicles 16,978,935 949,662 (300,161) 17,628,436
Total depreciable 245,725,714 5,723,442 (300,161) 251,148,995
ACCUMULATED DEPRECIATION
Infrastructure (100,854,013) (7,131,615) - (107,985,628)
Buildings & improvements (9,005,008) (1,052,644) - (10,057,652)
Machinery, equipment & vehicles (12,757,792) (1,286,573) 279,997 (13,764,368)
Total accumulated depreciation (122,616,813) (9,470,832) 279,997 (131,807,648)
Total capital assets being depreciated 123,108,901 (3,747,390) (20,164) 119,341,347
Capital assets, net of depreciation $152,100,943 $11,079,493 $(1,200,434) $161,980,002
Business-type Activities:
NON-DEPRECIABLE
Land $2,410,660 $- $- $2,410,660
Water rights 8,534,490 - - 8,534,490
Construction in progress 3,286,193 1,843,758 (1,741,827) 3,388,124
Total non-depreciable 14,231,343 1,843,758 (1,741,827) 14,333,274
DEPRECIABLE
Water system 136,565,936 2,486,466 - 139,052,402
Stormwater system 3,230,283 248,561 - 3,478,844
Machinery, equipment & vehicles 5,752,158 208,289 (73,023) 5,887,424
Total depreciable 145,548,377 2,943,316 (73,023) 148,418,670
ACCUMULATED DEPRECIATION
Water system (48,386,433) (3,317,665) - (51,704,098)
Stormwater system (556,709) (73,287) - (629,996)
Machinery, equipment & vehicles (4,388,531) (311,219) 66,673 (4,633,077)
Total accumulated depreciation (53,331,673) (3,702,171) 66,673 (56,967,171)
Total capital assets being depreciated 92,216,704 (758,855) (6,350) 91,451,499
Capital assets, net of depreciation $106,448,047 $1,084,903 $(1,748,177) $105,784,773
Balance
Beginning Ending
Balance Increases Decreases Balance
Beginning Ending
Balance Increases Decreases
Page 60
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 6 – CAPITAL ASSETS (Continued)
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $605,591
Public safety 725,154
Highways & streets 7,262,635
Culture & recreation 877,452
Total depreciation expense - governmental activities $9,470,832
Business-type activities:
Water $3,532,171
Stormwater 170,000
Total depreciation expense - business-type activities $3,702,171
Construction Commitments – As of year-end, the Town had contractual commitments related
to road improvements and well construction. At year end the Town had spent $26.5 million on
the projects and had estimated remaining contractual commitments of $36.0 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.
Interest Rate
(Including Remaining
Business-type activities:Fees)Maturities
WIFA Loan, 2007 2.04%7/1/20-27 $2,160,663 $238,397
WIFA Loan, 2009 2.75%7/1/20-29 1,274,073 110,419
WIFA Loan, 2014 2.65%7/1/20-28 3,014,023 300,915
Total $6,448,759 $649,731
Outstanding
Principal
June 30, 2020
Due Within
One Year
Page 61
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 7 – LOANS PAYABLE (Continued)
Principal and interest payments on the business-type activities loans payable at June 30, 2020
are summarized as follows:
Year ending June 30:
$649,731 $186,780
669,642 166,557
690,175 145,705
711,347 124,202
733,180 102,027
2,994,684 180,040
$6,448,759 $905,311
2026-2030
Principal Interest
Total
2021
2022
2023
2024
2025
NOTE 8 – REVENUE BONDS PAYABLE
Bonds payable at year end, consisted of the following outstanding revenue and refunding
bonds. The bonds are both callable and noncallable with interest payable semiannually. Taxes,
water revenues, and impact fees are used to pay bonded debt.
Purpose
Governmental activities:
Revenue bonds:
Excise Tax Revenue Obligations, 2010 $2,445,000 $1,230,000 $145,000
Revenue Bonds, 2012 2,580,000 1,560,000 170,000
Private placement revenue bonds:
Refunding Excise Tax Revenue Obligations, 2015 2,529,250 1,729,940 274,030
Excise Tax Revenue Obligations, 2016 2,000,000 1,801,000 120,000
Refunding Excise Tax Revenue Obligations, 2017 1,115,556 893,020 118,560
Excise Tax Revenue Obligations, 2018 2,035,000 1,957,750 114,500
Total $9,171,710 $942,090
Due Within
One Year
3.50-4.00%
1.91%
Remaining
Maturities
2.20%
2.43%
3.02%
Outstanding
Principal
June 30, 2020Issued
Amount
Original
Interest
Rates
7/1/20-27
7/1/20-27
7/1/20-25
7/1/20-31
7/1/20-26
7/1/20-33
5.49-6.59%
Page 62
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 8 – REVENUE BONDS PAYABLE (Continued)
Annual debt service requirements to maturity on revenue and refunding bonds for governmental
activities at year end are summarized as follows:
$315,000 $126,972 $627,090 $146,382
320,000 111,967 651,585 131,891
335,000 96,224 670,660 116,900
340,000 79,739 688,241 101,489
355,000 63,036 702,974 85,704
1,125,000 83,776 2,059,410 242,173
- - 981,750 47,117
$2,790,000 $561,714 $6,381,710 $871,656
Principal Interest
Revenue Bonds
Principal Interest
Revenue Bonds
Private Placement
Governmental Activities
Year ending June 30:
2021
2022
2023
2024
2025
2026-2030
2031-2034
Total
Purpose
Business-type activities:
Revenue bonds:
Refunding Revenue Bonds, 2012 $16,595,000 $7,455,000 $1,665,000
Private placement revenue bonds:
Refunding Revenue Bonds, 2015 1,245,750 852,060 134,970
Refunding Revenue Bonds, 2017 13,186,444 10,555,978 1,401,440
Excise Tax Revenue Obligations, 2018 6,105,000 5,873,250 343,500
Total $24,736,288 $3,544,910
3.00-5.00%7/1/20-28
Due Within
Issued Rates Maturities June 30, 2020 One Year
PrincipalRemainingInterestAmount
1.91%7/1/20-25
2.43%7/1/20-26
3.02%7/1/20-33
OutstandingOriginal
Annual debt service requirements to maturity on revenue and refunding bonds for business-type
activities at year end are summarized as follows:
$1,665,000 $258,782 $1,879,910 $403,150
1,730,000 172,282 1,926,414 354,970
1,815,000 81,532 1,975,340 305,548
560,000 59,132 2,025,758 254,858
310,000 46,732 2,076,026 202,890
1,375,000 69,582 5,463,590 463,010
- - 1,934,250 89,808
$7,455,000 $688,042 $17,281,288 $2,074,234
Principal Interest Principal Interest
Business-type Activities
Private Placement
Revenue Bonds Revenue Bonds
Year ending June 30:
2021
2022
2023
2024
2025
2026-2030
2031-2034
Total
Page 63
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 8 – REVENUE BONDS PAYABLE (Continued)
Pledged revenues – governmental activities. The Town has pledged future sales (excise) tax
revenues to repay outstanding revenue bonds and refunding revenue bonds of $9.2 million as of
June 30, 2020. Proceeds from the original bond issuances, including those subsequently refunded,
provided financing for land acquisition and facility construction. The bonds are paid solely from
the Town’s sales taxes and are payable through 2034. Total annual principal and interest payments
for all sales tax revenue bonds are expected to require less than seven percent of gross revenues.
The total principal and interest to be paid on the bonds is $10.6 million. The current total sales tax
revenues were $22.8 million, and the total principal and interest paid on the bonds was $1.2 million
or approximately five percent of gross revenues.
Pledged revenues – business-type activities. The Town has pledged future water revenues to
repay outstanding revenue bonds and refunding revenue bonds of $24.7 million as of June 30,
2020. Proceeds from the original bond issuances, including those subsequently refunded, provided
financing for the construction and improvements to the Town’s water systems and infrastructure.
The bonds are paid solely from water utility revenues and are payable through 2034. Total annual
principal and interest payments for all water revenue bond issuances are expected to require
approximately 25 percent of gross revenues. The total principal and interest to be paid on the bonds
is $27.5 million. The current total customer gross revenues were $20.2 million, and the total
principal and interest paid on the bonds was $5.1 million or 25 percent of gross revenues.
Page 64
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
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
Governmental activities:
Revenue bonds:
Special assessments debt $3,945,000 $170,000 $170,000 4.75%1/1/21
Due Within
Issued Rate Maturities June 30, 2020 One Year
Original Outstanding
Amount Interest Remaining Principal
Annual debt service requirements to maturity on special assessment bonds at year end are
summarized as follows:
Year ending June 30:
2021 $170,000 $4,038
Principal Interest
Governmental Activities
NOTE 10 – OBLIGATIONS UNDER LEASES
Capital Leases – The governmental activities of the Town have acquired community center
utility vehicles 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 Community Center Fund are used to pay the capital lease obligations.
Amortization of assets recorded under capital leases is included with depreciation expense.
Asset:
Machinery, equipment, & vehicles $1,128,663
Less: Accumulated depreciation (767,615)
Total $361,048
Governmental
Activities
Page 65
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 10 – OBLIGATIONS UNDER LEASES (Continued)
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:
2021 $34,531
Total minimum lease payments $34,531
Less: amount representing interest 594
Present value of minimum lease payments $33,937
Due within one year $33,937
Operating Leases – The Town leases golf carts under the provisions of long-term lease
agreements classified as operating leases for accounting purposes. Rental expenditures under the
terms of the operating leases totaled $190,678 for the current fiscal year. The operating leases have
a remaining noncancelable lease term of 1.6 years. The future minimum rental payments required
under the operating leases at year end were as follows:
Year ending June 30:
2021 $156,492
2022 91,287
Total minimum payments required $247,779
Page 66
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 11 – CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the current fiscal year was as follows:
Due Within
One Year
Governmental activities
Revenue bonds $3,095,000 $- $(305,000) $2,790,000 $315,000
Private placement revenue bonds 6,954,064 - (572,354) 6,381,710 627,090
Premium 2,803 - (2,803) - -
Special assessment bonds 335,000 - (165,000) 170,000 170,000
Total bonds payable 10,386,867 - (1,045,157) 9,341,710 1,112,090
Capital leases payable 254,070 - (220,133) 33,937 33,937
Net pension liability 39,632,234 2,770,786 - 42,403,020 -
Net OPEB liability 54,017 - (54,017) - -
Compensated absences payable 2,324,378 1,859,697 (1,794,242) 2,389,833 1,813,015
Governmental activities long-term
liabilities $52,651,566 $4,630,483 $(3,113,549) $54,168,500 $2,959,042
Due Within
One Year
Business-type activities
Revenue bonds $9,060,000 $- $(1,605,000) $7,455,000 $1,665,000
Private placement revenue bonds 20,024,936 - (2,743,648) 17,281,288 1,879,910
Premium 1,050,098 - (116,678) 933,420 -
Total bonds payable 30,135,034 - (4,465,326) 25,669,708 3,544,910
Loan payable 7,079,179 - (630,420) 6,448,759 649,731
Net pension liability 3,833,712 125,389 - 3,959,101 -
Net OPEB liability 14,431 - (14,431) - -
Compensated absences payable 352,694 282,017 (253,892) 380,819 232,778
Business-type activities long-term
liabilities $41,415,050 $407,406 $(5,364,069) $36,458,387 $4,427,419
Outstanding Matured/Outstanding
July 1,Redeemed June 30,
2019 Issued During Year 2020
Outstanding
July 1,
2019
Outstanding
June 30,
2020
Matured/
Redeemed
During YearIssued
Page 67
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 12 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
At year end, interfund balances were as follows:
Due to/from other funds: At year end, the PAG/RTA Fund had a negative cash balance of
$675,713. Negative cash on deposit was reduced by interfund borrowing with the General Fund.
All interfund balances are expected to be paid within one year.
Interfund transfers:
General Fund $- $1,895,436
General Fund 120,000 -
Community Center Fund - 268,810
General Government CIP 1,100,000 -
Non-Major Governmental Funds 1,046,718 100,000
Water Fund - 2,472
$2,266,718 $2,266,718
Transfers In Transfers Out
Transfers were made from the General, Community Center, General Impact Fee and Water Funds
to the Municipal Debt Service Fund, a non-major governmental fund, for debt service. In addition,
transfers were made from the General Fund to the General Government CIP Fund to fund capital
projects. Transfers were made from the Community Center Fund to the General Fund to repay
loaned amounts.
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.
Page 68
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
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 uninsured risks of loss related to its employee health benefits program. The activity is
reported in an internal service fund in these financial statements. Under this program, the Fund
provides coverage for up to a maximum of $150,000 for each claim, not to exceed an annual
aggregate of $2,000,000. The Fund purchases commercial insurance for claims in excess of
this coverage. Settled claims have not exceeded this coverage for the past three fiscal years.
Liabilities of the fund are reported when it is probable that a loss has occurred, and the amount
of the loss can be reasonably estimated. Liabilities include an amount for claims that have been
incurred but not reported (IBNRs). The result of the process to estimate the claims liability is
not an exact amount as it depends on many complex factors, such as inflation, changes in legal
doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider
the effects of inflation, recent claim settlement trends (including frequency and amount of pay-
outs), and other economic and social factors. The estimate of the claims liability also includes
amounts for incremental claim adjustment expenses related to specific claims and other claim
adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries,
for example from salvage or subrogation, are another component of the claims liability
estimate. Changes in the balances of claims liabilities during the past two years are as follows.
2019-20 $333,423 $2,239,893 $2,321,612 $251,704
2018-19 287,329 2,763,160 2,717,066 333,423
Claim
Payments
Claims Payable
at End of Year
Claims Payable
Beginning of
Year
Current Year Claims
and Changes in
Estimates
Page 69
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS
The Town contributes to the plans described below. The plans are component units of the State
of Arizona.
Aggregate Amounts. At June 30, 2020, the Town reported the following aggregate amounts
related to pensions for all plans to which it contributes.
Governmental
Activities
Business-type
Activities
Total
Net pension liability $ 42,403,020 $ 3,959,101
$ 46,362,121
Pension deferred outflows of resources 8,108,517 493,067 8,601,584
Pension deferred inflows of resources 1,520,632 282,166 1,802,798
Pension expense 6,471,944 479,295 6,951,239
The Town reported $3.9 million of pension contributions as expenditures in the governmental
funds related to all plans to which it contributes.
A. Arizona State Retirement System
Plan Description. Town employees participate in the Arizona State Retirement System
(ASRS). The ASRS administers a cost-sharing multiple-employer defined benefit pension plan,
a cost-sharing multiple-employer defined benefit health insurance premium benefit (OPEB)
plan, and a cost-sharing multiple-employer defined benefit long-term disability (OPEB) plan.
The Arizona State Retirement System Board governs the ASRS according to the provisions of
A.R.S. Title 38, Chapter 5, Articles 2 and 2.1. The ASRS issues a publicly available financial
report that includes its financial statements and required supplementary information. The report
is available on the ASRS website at www.azasrs.gov.
Page 70
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Benefits Provided. The ASRS provides retirement, health insurance premium supplement,
long-term disability, and survivor benefits. State statute establishes benefit terms. Retirement
benefits are calculated on the basis of age, average monthly compensation, and service credit as
follows:
Retirement Initial
Membership Date:
Before July 1, 2011 On or After July 1, 2011
Years of service and
age required to
receive benefit
Sum of years and age equals 80
10 years, age 62
5 years, age 50*
Any years, age 65
30 years, age 55
25 years, age 60
10 years, age 62
5 years, age 50*
Any years, age 65
Final average salary is
based on
Highest 36 months of last
120 months
Highest 60 months of last
120 months
Benefit percent per
year of service
2.1% to 2.3% 2.1% to 2.3%
*With actuarially reduced benefits
Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject
to automatic cost-of-living adjustments based on excess investment earnings. Members with a
membership date on or after September 13, 2013, are not eligible for cost-of-living adjustments.
Survivor benefits are payable upon a member’s death. For retired members, the survivor benefit
is determined by the retirement benefit option chosen. For all other members, the beneficiary is
entitled to the member’s account balance that includes the member’s contributions and
employer’s contributions, plus interest earned.
Retired and disabled members, with at least five years of credited service, are eligible to receive
health insurance premium benefits. The benefits are payable only with respect to allowable
health insurance premiums for which the member is responsible. For members with 10 or more
years of service, benefits range from $100 per month to $260 per month depending on the age
of the member and dependents. For members with five to nine years of service, the benefits are
the same dollar amounts as above multiplied by a vesting fraction based on completed years of
service.
Page 71
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Active members are eligible for a long-term disability benefit in the event they become unable
to perform their work. The monthly benefit is equal to two-thirds of their monthly earnings.
Members receiving benefits continue to earn service credit up to their normal retirement dates.
Members with long-term disability commencement dates after June 30, 1999 are limited to 30
years of service or the service on record as of the effective disability date, if their service is
greater than 30 years.
Contributions. In accordance with state statutes, annual actuarial valuations determine active
member and employer contribution requirements. The combined active member and employer
contribution rates are expected to finance the costs of benefits employees earn during the year,
with an additional amount to finance any unfunded accrued liability. For the current fiscal year,
active ASRS members were required by statute to contribute at the actuarially determined rate of
12.11 percent (11.94 percent for retirement and 0.17 percent for long-term disability) of the
members’ annual covered payroll, and the Town was required by statute to contribute at the
actuarially determined rate of 12.11 percent (11.45 percent for retirement, 0.49 percent for health
insurance premium benefit, and 0.17 percent for long-term disability) of the active members’
annual covered payroll. The Town’s contributions for the year ended June 30, 2020 were as
follows:
Pension $1,579,300
Contributions
Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members
who return to work in positions that would typically be filled by an employee who contributes
to ASRS. The Town was required by statute to contribute at the actuarially determined rate of
10.41 percent (10.29 for retirement, 0.05 percent for health insurance premium benefit, and 0.07
percent for long-term disability). ACR contributions are included in employer contributions
presented above.
The Town’s pension contributions are paid by the same funds as the employee’s salary, with
the largest component coming from the General Fund.
Page 72
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Pension Liability. The net pension liability was measured as of June 30, 2019. The total
liability used to calculate the net liability was determined using update procedures to roll
forward the total liability from an actuarial valuation as of June 30, 2018, to the measurement
date of June 30, 2019. The Town’s proportion of the net assets/liability was based on the
Town’s actual contributions to the applicable plan relative to the total of all participating
employers’ contributions to the plan for the year ended June 30, 2019.
At June 30, 2020, the Town reported the following amounts for its proportionate share of the
ASRS plans net assets/liability. In addition, at June 30, 2019, the Town’s percentage proportion
for each plan and the related change from its proportion measured as of June 30, 2018 was:
Pension $18,808,834 0.129 (0.002)
Town %
Proportion
Increase
(Decrease)
Net (Asset)/
Liability
Pension Expense and Deferred Outflows/Inflows of Resources. The Town has deferred
outflows and inflows of resources related to the net pension liability. Certain changes in the net
pension liability are recognized as pension expense over a period of time rather than the year
of occurrence. For the year ended June 30, 2020, the Town recognized pension expense as
follows:
Pension $2,248,800
Expense
Page 73
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
The Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows of Resources
Differences between expected and actual experience $339,787
Changes of assumptions or other inputs 79,506
Changes in proportion and differences between
contributions and proportionate share of contributions 314,551
Contributions subsequent to the measurement date 1,579,300
Total $2,313,144
Deferred Inflows of Resources
Differences between expected and actual experience $3,536
Changes of assumptions or other inputs 749,005
Net difference between projected and actual earnings
on pension investments 422,758
Changes in proportion and differences between
contributions and proportionate share of contributions 148,441
Total $1,323,740
Pension
Pension
The amounts of deferred outflows of resources resulting from contributions subsequent to the
measurement date as reported in the table above will be recognized as an adjustment of the net
pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
$(50,569)
(571,366)
(81,187)
113,226
-
- Thereafter
Pension
2021
2022
2023
2024
2025
Page 74
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Actuarial Assumptions. The significant actuarial assumptions used to measure the total
pension liability are as follows:
Pension
Actuarial valuation date June 30, 2018
Actuarial roll forward date June 30, 2019
Actuarial cost method Entry age normal
Investment rate of return 7.5%
Projected salary increases 2.7-7.2%
Inflation 2.3%
Permanent base increases Included
Mortality rates 2017 SRA Scale U-MP
Healthcare cost trend rate Not applicable
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an
actuarial experience study for the five-year period ended June 30, 2016. The purpose of the
experience study was to review actual experience in relation to the actuarial assumptions in
effect. The ASRS Board adopted the experience study recommended changes which were
applied to the June 30, 2017, actuarial valuation.
The long-term expected rate of return on ASRS plan investments was determined to be 7.5
percent using a building-block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of investment expense and inflation) are developed for
each major asset class. These ranges are combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation
percentage excluding any expected inflation. The target allocation and best estimates of
geometric real rates of return for each major asset class of ASRS are summarized in the
following table:
Asset Class
Equity 50%6.09%
Credit 20%5.36%
Interest rate sensitivity bonds 10%1.62%
Real estate 20%5.85%
Total 100%
Target
Long-term
Expected Real
Allocation Rate of Return
Page 75
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Discount Rate. The discount rate used to measure the ASRS total pension liability was 7.5
percent. The projection of cash flows used to determine the discount rate assumed that
contributions from participating employers will be made based on the actuarially determined
rates based on the ASRS Board’s funding policy, which establishes the contractually required
rate under Arizona statute. Based on those assumptions, the plans’ fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on investments was applied to all periods of
projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate. The following table presents the Town’s proportionate share of the net pension
liability calculated using the discount rate of 7.5 percent, as well as what the proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower or 1-percentage-point higher than the current rate:
$26,769,327 $18,808,834 $12,155,910
8.5%
Proportionate share of the net liability
Discount Rate
Current
Pension
Rate 6.5%7.5%
1% Decrease 1% Increase
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary
net position is available in the separately issued ASRS financial report. The report is available
on the ASRS website at www.azasrs.gov.
Page 76
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
B. Public Safety Personnel Retirement System and Corrections Officer Retirement Plan
Plan Descriptions. Town public safety employees who are regularly assigned hazardous duty
participate in the Public Safety Personnel Retirement System (PSPRS) or employees who
became members on or after July 1, 2017, may participate in the Public Safety Personnel
Defined Contribution Retirement Plan (PSDCRP). The PSPRS administers an agent and cost-
sharing multiple-employer defined benefit pension plan and an agent and cost-sharing
multiple-employer defined benefit health insurance premium benefit (OPEB) plan. A nine-
member board known as the Board of Trustees and the participating local boards govern the
PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. Employees who
were PSPRS members before July 1, 2017, participate in the agent plans, and employees who
became PSPRS members on or after July 1, 2017, participate in either the agent plans or cost-
sharing plans (PSPRS Tier 3 Risk Pool).
Town dispatchers participate in the Corrections Officer Retirement Plan (CORP) or the Public
Safety Personnel Defined Contribution Retirement Plan. The CORP administers an agent
multiple-employer defined benefit pension plan and an agent multiple-employer defined
benefit health insurance premium benefit (OPEB) plan for dispatchers (agent plans), which
were closed to new members as of July 1, 2018. Employees who were CORP members before
July 1, 2018, participate in CORP or PSDCRP. Dispatcher employees who became members
on or after July 1, 2018 participate in PSDCRP. The PSPRS Board of Trustees described above
and the participating local boards govern CORP according to the provisions of A.R.S. Title 38,
Chapter 5, Article 6.
The PSPRS and CORP issue a publicly available financial report that includes their financial
statements and required supplementary information. The report is available on the PSPRS
website at www.psprs.com.
The PSPRS Tier 3 Risk Pool plans and the PSPRS OPEB plans are not further disclosed
because of their relative insignificance to the Town’s financial statements.
Page 77
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Benefits Provided. The PSPRS and CORP provide retirement, health insurance premium
supplement, disability, and survivor benefits. State statute establishes benefits terms. Certain
retirement, disability, and survivor benefits are calculated on the basis of age, average monthly
compensation, and service credit as follows. See the publicly available PSPRS and CORP
financial report for additional benefits information.
Retirement and disability
Years of service and age required
to receive benefit
Final average salary is based on
Benefit percent
Normal retirement
Accidental disability retirement
Catastrophic disability retirement
Ordinary disability retirement
Survivor benefit
Retired members
Active members
10 years, age 62 10 years, age 62
On or after January 1, 2012
and before July 1, 2017Before January 1, 2012
15 years of service, age 62
20-25 years of service, any age
of credited service, age 52.5
25 years of service or 15 years
Highest 36 consecutive
months of last 10-20 years
Highest 60 consecutive
months of last 10-20 years
50% less 2% for each year of
credited service less than 20
years OR plus 2-2.5% for each
year of credited service over
20 years, not to exceed 80%
1.5-2.5% per year of credited
service not to exceed 80%
(not to exceed 20 years) divided by 20, or 2.5% per year of credited service
80%-100% of retired member's pension benefit
80%-100% of accidental disability retirement benefit or 100% of average
monthly compensation if death was the result of injuries received on the job
50% or normal retirement, whichever is greater
90% for the first 60 months then reduced to either 62.5% or normal retirement,
whichever is greater
Normal retirement calculated with actual years of credited service or 20 years of
credited service, whichever is greater, multiplied by years of credited service
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on
inflation. PSPRS also provides temporary disability benefits of 50 percent of the member's
compensation for up to 12 months.
Health insurance premium benefits are available to retired or disabled members with 5 years of
credited service. The benefits are payable only with respect to allowable health insurance
premiums for which the member is responsible. Benefits range from $100 per month to $260 per
month depending on the age of the member and dependents.
Page 78
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Employees Covered by Benefit Terms. At June 30, 2020, the following employees were
covered by the agent plan’s benefit terms:
Retirees & beneficiaries 40 5
Inactive, non-retired members 16 4
Active members 84 3
Total 140 12
Police CORP-Dispatchers
Contributions. State statutes establish the pension contribution requirements for active PSPRS
and CORP employees. In accordance with state statutes, annual actuarial valuations determine
employer contribution requirements for PSPRS and CORP pension and health insurance
premium benefits. The combined active member and employer contribution rates are expected
to finance the costs of benefits employees earn during the year, with an additional amount to
finance any unfunded accrued liability. Contributions rates for the year ended June 30, 2020, are
indicated below. Rates are a percentage of active members’ annual covered payroll.
CORP -
PSPRS - Police Dispatchers
Active members – pension 7.65% to 11.65% 7.96%
Town:
Pension
38.26%
59.94%
Health insurance 0.33%
Employers are also required to pay an Alternate Contribution Rate (ACR), for retired members
who return to work in positions that would typically be filled by an employee who contributes
to PSPRS or CORP. The Town was required by statute to contribute at the actuarially determined
rate of 24.11 percent for the PSPRS and 53.52 percent for the CORP. ACR contributions are
included in employer contributions presented above.
Page 79
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
The contributions to the pension plans for the year ended June 30, 2020 were:
Pension $2,552,903 $126,199
Contributions
PSPRS-Police CORP-Dispatchers
The Town’s pension contributions are paid by the same funds as the employee’s salary, with
the largest component coming from the General Fund.
Pension Liability. At June 30, 2020, the Town reported the following liabilities.
Pension $25,691,511 $1,861,776
PSPRS-Police CORP-Dispatchers
Net Liability
The net pension liability was measured as of June 30, 2019. The total liability used to calculate
the net liability was determined by an actuarial valuation as of that date. The total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as
of that date. The total liabilities as of June 30, 2019, reflect changes of actuarial assumptions
to decrease the investment rate of return from 7.4 percent to 7.3 percent and update the mortality
rates.
Page 80
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Actuarial Assumptions. The significant actuarial assumptions used to measure the total
pension liability for both the PSPRS and CORP are as follows:
Pension
Actuarial valuation date June 30, 2019
Actuarial cost method Entry age normal
Investment rate of return 7.3%
Projected salary increases 3.5%
Inflation 2.5%
Cost-of-living adjustment 1.75%
Mortality rates PubS-2020 tables
Healthcare cost trend rate Not applicable
Actuarial assumptions used in the June 30, 2019, valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2016.
The long-term expected rate of return on PSPRS and CORP plan investments was determined to be
7.30 percent using a building-block method in which best-estimate ranges of expected future real
rates of return (expected returns, net of plan investment expenses and inflation) are developed for
each major asset class. The target allocation and best estimates of geometric real rates of return for
each major asset class are summarized in the following table:
Short-term investments 2%0.25%
Risk parity 4%4.01%
Fixed income 5%3.00%
Real assets 9%6.75%
GTS 12%4.01%
Private credit 16%5.36%
Real estate 10%4.50%
Private equity 12%8.40%
Non-U.S. equity 14%5.00%
U.S. equity 16%4.75%
Total 100%
Rate of Return
Expected Real
Long-term
Target
AllocationAsset Class
Page 81
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Changes in Net Liability
PSPRS - Police
Balances at June 30, 2019 $57,022,056 $33,429,558 $23,592,498
Changes for the year:
Service cost 1,552,240 - 1,552,240
Interest on the total liability 4,264,774 - 4,264,774
Changes of benefit terms - - -
Differences between expected and actual
experience in the measurement of the
total liability (303,721) - (303,721)
Changes of assumptions or other inputs 1,627,934 - 1,627,934
Contributions - employer - 2,624,761 (2,624,761)
Contributions - employee - 575,136 (575,136)
Net investment income - 1,843,370 (1,843,370)
Benefit payments, including refunds of
employee contributions (1,884,430) (1,884,430) -
Administrative expense - (33,037) 33,037
Other - 31,984 (31,984)
Net changes 5,256,797 3,157,784 2,099,013
Balances at June 30, 2020 $62,278,853 $36,587,342 $25,691,511
CORP - Dispatchers
Balances at June 30, 2019 $2,945,307 $1,309,672 $1,635,635
Changes for the year:
Service cost 30,922 - 30,922
Interest on the total liability 215,182 - 215,182
Changes of benefit terms - - -
Differences between expected and actual
experience in the measurement of the
total liability 124,217 - 124,217
Changes of assumptions or other inputs 61,495 - 61,495
Contributions - employer - 120,338 (120,338)
Contributions - employee - 16,099 (16,099)
Net investment income - 71,209 (71,209)
Benefit payments, including refunds of
employee contributions (136,724) (136,724) -
Administrative expense - (1,971) 1,971
Other - - -
Net changes 295,092 68,951 226,141
Balances at June 30, 2020 $3,240,399 $1,378,623 $1,861,776
Liability Net Position Liability
Pension
Increase/(Decrease)
Total Pension Plan Fiduciary Net Pension
Plan Fiduciary
Net Position
Net Pension
Liability
Pension
Increase/(Decrease)
Total Pension
Liability
Page 82
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Discount Rate. At June 30, 2019, the discount rate used to measure the total pension liability
was 7.3 percent, which was one percent lower than the discount rate used as of June 30, 2018.
The projection of cash flows used to determine the PSPRS and CORP discount rates assumed
that plan member contributions will be made at the current contribution rate and that employer
contributions will be made at rates equal to the difference between the actuarially determined
contribution rate and the member rate. Based on those assumptions, the plans’ fiduciary net
position was projected to be available to make all projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on plan investments was applied
to all periods of projected benefit payments for these plans to determine the total pension
liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following
presents the Town’s net pension liability calculated using the discount rates noted above, as
well as what the net liability would be if it were calculated using a discount rate that is 1-
percentage-point lower or 1-percentage-point higher than the current rate:
PSPRS-Police:
Net Pension Liability $35,100,619 $25,691,511 $18,105,135
CORP-Dispatchers:
Net Pension Liability $2,240,327 $1,861,776 $1,546,439
6.3%7.3%8.3%
1% Decrease 1% IncreaseDiscount Rate
Current
Plan Fiduciary Net Position. Detailed information about the plans’ fiduciary net position is
available in the separately issued PSPRS and CORP financial report. The report is available on
the PSPRS website at www.psprs.com.
Page 83
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
Expense. For the year ended June 30, 2020, the Town recognized the following as pension
expense:
Pension Expense $4,433,421 $269,017
PSPRS-Police CORP-Dispatchers
Deferred Outflows/Inflows of Resources. At June 30, 2020, the Town reported deferred
outflows of resources and deferred inflows of resources related to pensions from the following
sources:
PSPRS-Police:
Differences between expected
and actual experience $452,285 $458,455
Changes of assumptions or other inputs 2,509,357 -
Net difference between projected and
actual earnings on plan investments 535,876 -
Contributions subsequent to the
measurement date 2,552,903 -
Total $6,050,421 $458,455
CORP-Dispatchers:
Differences between expected
and actual experience $62,109 $20,603
Changes of assumptions or other inputs 30,748 -
Net difference between projected and
actual earnings on plan investments 18,962 -
Contributions subsequent to the
measurement date 126,199 -
Total $238,018 $20,603
Resources
Outflows of
Deferred
Resources
Inflows of
Deferred
Page 84
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 15 – PENSIONS (Continued)
The amounts of deferred outflows of resources resulting from contributions subsequent to the
measurement date as reported in the table above will be recognized as an adjustment of the net
pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
2021 $1,253,737 $84,905
2022 567,746 (4,437)
2023 482,223 5,623
2024 345,497 5,125
2025 200,687 -
Thereafter 189,173 -
Year Ending June 30:Pension
PSPRS-Police CORP-Dispatchers
Pension
PSPDCRP Plan. Public safety employee who are not members of PSPRS or CORP participate in
the PSPDCRP. The PSPDCRP is a defined contribution pension plan. The PSPRS Board of
Trustees governs the PSPDCRP according to the provisions of A.R.S. Title 38, Chapter 5, Article
4.1. Benefit terms, including contribution requirements, are established by State statute.
For the year ended June 30, 2020, active PSPDCRP members were required by statute to
contribute at five-nine percent of the members’ annual covered payroll, and the Town was
required by statute to contribute five-nine percent of active members’ annual covered payroll to
an individual employee account. Employees are immediately vested in their own contributions
and the earnings on those contributions. Employees vest in a portion of the Town’s contributions
each year as set forth in statute. The plan retains nonvested Town contributions when forfeited
because of employment terminations. For the year ended June 30, 2020, the Town recognized
pension expense of $117,985.
NOTE 16 – TAX ABATEMENTS
The Town enters into sales tax abatement agreements with local businesses under A.R.S. §9-
500.11. Under the statute, a city or town may enter into a retail development tax incentive
agreement for the purpose of economic development activities. To be eligible, the tax incentive
agreement must be expected to raise more revenue than the amount of the incentive within the
duration of the agreement, and in the absence of a tax incentive, the retail business facility would
not locate in the city or town in the same time, place or manner. As of June 30, 2020, the Town
had no tax abatement agreements in place.
Page 85
REQUIRED SUPPLEMENTARY INFORMATION
Page 86
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Page 87
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2020
Variance
Budgeted Amounts with Final
Original Final Actual Budget
REVENUES
Sales taxes $18,686,206 $18,686,206 $20,172,487 $1,486,281
Franchise taxes 625,000 625,000 662,048 37,048
Intergovernmental 14,830,258 14,830,258 14,527,210 (303,048)
Licenses, fees and permits 1,984,118 1,984,118 2,400,849 416,731
Fines, forfeitures and penalties 120,000 120,000 111,611 (8,389)
Charges for services 2,552,639 2,552,639 2,072,288 (480,351)
Investment income:
Interest 150,000 150,000 585,349 435,349
Net increase in fair value of investments - - 222,231 222,231
Other 288,000 288,000 311,906 23,906
Total Revenues 39,236,221 39,236,221 41,065,979 1,829,758
EXPENDITURES
Current:
General government 17,264,916 17,264,916 16,531,008 733,908
Public safety 17,145,165 17,145,165 16,721,674 423,491
Transit 1,233,382 1,233,382 1,110,444 122,938
Culture and recreation 3,696,266 3,696,266 3,189,550 506,716
Capital outlay 706,050 706,050 409,984 296,066
Total Expenditures 40,045,779 40,045,779 37,962,660 2,083,119
REVENUES OVER (UNDER)
EXPENDITURES (809,558) (809,558) 3,103,319 3,912,877
OTHER FINANCING SOURCES (USES)
Transfers in 120,000 120,000 120,000 -
Transfers out (1,895,436) (1,895,436) (1,895,436) -
Total Other Financing Sources (Uses)(1,775,436) (1,775,436) (1,775,436) -
NET CHANGE IN FUND BALANCE (2,584,994) (2,584,994) 1,327,883 3,912,877
FUND BALANCE, Beginning of year - - 19,571,665 19,571,665
FUND BALANCE, End of year $(2,584,994) $(2,584,994) $20,899,548 $23,484,542
See notes to required supplementary information
Page 88
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – COMMUNITY CENTER FUND
FOR THE YEAR ENDED JUNE 30, 2020
Variance
Budgeted Amounts with Final
Original Final Actual Budget
REVENUES
Sales taxes $2,478,552 $2,478,552 $2,584,916 $106,364
Charges for services 4,270,053 4,270,053 3,940,063 (329,990)
Investment income:.
Interest - - 19,462 19,462
Net increase in fair value of investments - - 10,697 10,697
Total Revenues 6,748,605 6,748,605 6,555,138 (193,467)
EXPENDITURES
Current:
Culture and recreation 5,825,291 5,825,291 5,545,844 279,447
Capital outlay 106,500 106,500 123,002 (16,502)
Debt service:
Principal retirement 225,539 225,539 220,133 5,406
Interest and fiscal charges 25,057 25,057 30,463 (5,406)
Contingency 545,531 545,531 - 545,531
Total Expenditures 6,727,918 6,727,918 5,919,442 808,476
REVENUES OVER (UNDER)
EXPENDITURES 20,687 20,687 635,696 615,009
OTHER FINANCING SOURCES (USES)
Transfers out (268,810) (268,810) (268,810) -
NET CHANGE IN FUND BALANCE (248,123) (248,123) 366,886 615,009
FUND BALANCE, Beginning of year - - 495,932 495,932
FUND BALANCE, End of year $(248,123) $(248,123) $862,818 $1,110,941
See notes to required supplementary information
Page 89
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
ARIZONA STATE RETIREMENT SYSTEM
LAST SIX FISCAL YEARS
2020 2019 2018 2017 2016
Measurement date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015
Town's proportion of the net pension
(assets) liability 0.13%0.13%0.12%0.12%0.12%
Town's proportionate share of the net
pension (assets) liability 18,808,834$ 18,237,813$ 19,453,870$ 20,050,356$ 18,575,537$
Town's covered payroll 13,630,224$ 13,018,275$ 12,193,145$ 11,857,622$ 11,826,486$
Town's proportionate share of the net
pension (assets) liability as a percentage
of its covered payroll 137.99%140.09%159.55%169.09%157.07%
Plan fiduciary net position as a
percentage of the total pension liability 73.24%73.40%69.92%67.06%68.35%
2015 2014 2013 2012 2011
Measurement date June 30, 2014 0 0 0 0
Town's proportion of the net pension
(assets) liability 0.11%0.00%0.00%0.00%0.00%
Town's proportionate share of the net
pension (assets) liability 16,642,712$ $ $ $ $
Town's covered payroll 11,086,887$ $ $ $ $
Town's proportionate share of the net
pension (assets) liability as a percentage
of its covered payroll 150.11%#DIV/0!#DIV/0!#DIV/0!#DIV/0!
Plan fiduciary net position as a
percentage of the total pension liability 69.49%0.00%0.00%0.00%0.00%
Note: The pension schedules in the required supplementary information are intended to show information for ten years,
and additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 90
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - POLICE
LAST SIX FISCAL YEARS
2020 2019 2018 2017
Measurement date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016
Total pension liability
Service cost $ 1,552,240 $ 1,515,028 $ 1,638,736 $ 1,363,768
Interest 4,264,774 3,922,057 3,615,210 3,185,633
Changes of benefit terms 435,327 3,164,555
(303,721) 136,020 247,905 (548,533)
Changes of assumptions or other inputs 1,627,934 747,786 1,902,904
(1,884,430) (1,588,615) (2,061,668) (1,106,968)
Net change in total pension liability 5,256,797 3,984,490 4,623,296 7,961,359
Total pension liability—beginning 57,022,056 53,037,566 48,414,270 40,452,911
Total pension liability—ending $ 62,278,853 $ 57,022,056 $ 53,037,566 $ 48,414,270
Plan fiduciary net position
Contributions—employer $ 2,624,761 $ 1,278,293 $ 1,811,735 $ 1,505,274
Contributions—employee 575,136 622,233 905,024 840,020
Net investment income 1,843,370 2,159,685 3,228,386 154,181
(1,884,430) (1,588,615) (2,061,668) (1,106,968)
Administrative expense (33,037) (33,570) (28,966) (22,586)
Other 31,984 107,852 19,066 38,225
Net change in plan fiduciary net position 3,157,784 2,545,878 3,873,577 1,408,146
Plan fiduciary net position—beginning 33,429,558 30,883,680 27,010,103 25,601,957
Plan fiduciary net position—ending $ 36,587,342 $ 33,429,558 $ 30,883,680 $ 27,010,103
Net pension (assets) liability—ending $ 25,691,511 $ 23,592,498 $ 22,153,886 $ 21,404,167
58.75%58.63%58.23%55.79%
Covered payroll $ 6,942,593 $ 7,209,721 $ 7,199,177 $ 7,355,092
370.06%327.23%307.73%291.01%
Differences between expected and actual
experience
Benefit payments, including refunds of
employee contributions
Benefit payments, including refunds of
employee contributions
Plan fiduciary net position as a
percentage of the total pension liability
Net pension (assets) liability as a
percentage of covered payroll
Note: The pension schedules in the required supplementary information are intended to show information for ten years,
and additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 91
2016 2015
June 30, 2015 June 30, 2014
$ 1,224,807 $ 1,157,832
2,842,514 2,408,825
444,387
1,312,293 (356,776)
3,014,125
(1,049,346) (1,304,993)
4,330,268 5,363,400
36,122,643 30,759,243
$ 40,452,911 $ 36,122,643
$ 1,669,125 $ 1,211,218
794,478 698,036
874,562 2,774,126
(1,049,346) (1,304,993)
(21,722) (22,342)
93,803 (93,142)
2,360,900 3,262,903
23,241,057 19,978,154
$ 25,601,957 $ 23,241,057
$ 14,850,954 $ 12,881,586
63.29%64.34%
$ 7,004,292 $ 6,021,786
212.03%213.92%
Page 92
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM - DISPATCHERS
LAST SIX FISCAL YEARS
2020 2019 2018 2017
Measurement date June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016
Total pension liability
Service cost $ 30,922 $ 34,542 $ 32,541 $ 32,257
Interest 215,182 223,773 185,568 182,053
Changes of benefit terms (175,686) 395,457 14,504
124,217 (73,061) (12,524) (12,392)
Changes of assumptions or other inputs 61,495 85,035 64,514
(136,724) (141,910) (132,788) (119,180)
Net change in total pension liability 295,092 (132,342) 553,289 161,756
Total pension liability—beginning 2,945,307 3,077,649 2,524,360 2,362,604
Total pension liability—ending $ 3,240,399 $ 2,945,307 $ 3,077,649 $ 2,524,360
Plan fiduciary net position
Contributions—employer $ 120,338 $ 87,566 $ 77,331 $ 52,583
Contributions—employee 16,099 15,976 18,502 18,982
Net investment income 71,209 89,317 136,094 7,237
(136,724) (141,910) (132,788) (119,180)
Administrative expense (1,971) (2,051) (1,591) (1,423)
Other (24) (8) (8)
Net change in plan fiduciary net position 68,951 48,874 97,540 (41,809)
Plan fiduciary net position—beginning 1,309,672 1,260,798 1,163,258 1,205,067
Plan fiduciary net position—ending $ 1,378,623 $ 1,309,672 $ 1,260,798 $ 1,163,258
Net pension (assets) liability—ending $ 1,861,776 $ 1,635,635 $ 1,816,851 $ 1,361,102
42.54%44.47%40.97%46.08%
Covered payroll $ 202,262 $ 201,687 $ 233,934 $ 245,274
920.48%810.98%776.65%554.93%
Differences between expected and actual
experience
Benefit payments, including refunds of
employee contributions
Benefit payments, including refunds of
employee contributions
Plan fiduciary net position as a
percentage of the total pension liability
Net pension (assets) liability as a
percentage of covered payroll
NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and
additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 93
2016 2015
June 30, 2015 June 30, 2014
$ 52,754 $ 53,985
174,403 154,443
29,545
14,554 (48,767)
174,536
(148,851) (68,874)
92,860 294,868
2,269,744 1,974,876
$ 2,362,604 $ 2,269,744
$ 64,005 $ 63,179
30,272 32,699
45,101 146,441
(148,851) (68,874)
(1,490) (1,151)
(926)
(11,889) 172,294
1,216,956 1,044,662
$ 1,205,067 $ 1,216,956
$ 1,157,537 $ 1,052,788
51.01%53.62%
$ 380,303 $ 387,839
304.37%271.45%
Page 94
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF PENSION CONTRIBUTIONS - ALL PENSION PLANS
LAST SIX FISCAL YEARS
2020 2019 2018 2017 2016 2015
Arizona State Retirement System:
Actuarially determined contribution 1,579,300$ 1,523,859$ 1,418,992$ 1,314,421$ 1,286,552$ 1,207,362$
Contributions in relation to the
actuarially determined contribution 1,579,300 1,523,859 1,418,992 1,314,421 1,286,552 1,207,362
Contribution deficiency (excess)- - - - - -
Town's covered payroll 13,793,013$ 13,630,224$ 13,018,275$ 12,193,145$ 11,857,622$ 11,826,486$
Contributions as a percentage
of covered payroll 11.45%11.18%10.90%10.78%10.85%10.21%
Public Safety Personnel Retirement System - Police:
Actuarially determined contribution 2,552,903$ 2,548,626$ 2,485,191$ 1,679,568$ 1,554,131$ 1,354,630$
Contributions in relation to the
actuarially determined contribution 2,552,903 2,548,626 2,485,191 1,679,568 1,554,131 1,354,630
Contribution deficiency (excess)- - - - - -
Town's covered payroll 6,672,512$ 6,942,593$ 7,209,721$ 7,199,177$ 7,355,092$ 7,004,292$
Contributions as a percentage
of covered payroll 38.26%36.71%34.47%23.33%21.13%19.34%
Public Safety Personnel Retirement System - Dispatchers
Actuarially determined contribution 126,199$ 124,108$ 87,996$ 77,830$ 54,083$ 64,005$
Contributions in relation to the
actuarially determined contribution 126,199 124,108 87,996 77,830 54,083 64,005
Contribution deficiency (excess)- - - - - -
Town's covered payroll 210,542$ 202,262$ 201,687$ 233,934$ 245,274$ 380,303$
Contributions as a percentage
of covered payroll 59.94%61.36%43.63%33.27%22.05%16.83%
NOTE: The pension schedules in the required supplementary information are intended to show information for ten years, and
additional information will be displayed as it becomes available.
See notes to required supplementary information
Page 95
TOWN OF ORO VALLEY, ARIZONA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2020
NOTE 1 – BUDGETARY BASIS OF ACCOUNTING
The Town budget is prepared on a basis consistent with accounting principles generally
accepted in the United States of America.
NOTE 2 – PENSION SCHEDULES
Actuarial Assumptions for Valuations Performed. The information presented in the
required supplementary schedules was determined as part of the actuarial valuations at the
dates indicated, which is the most recent actuarial valuation. The actuarial assumptions used
are disclosed in the notes to the financial statements.
Factors that Affect Trends. The actuarial assumptions used in the June 30, 2018, valuation
for ASRS were based on the results of an actuarial experience study for the five-year period
ended June 30, 2016. The purpose of the experience study was to review actual experience in
relation to the actuarial assumptions in effect. The ASRS Board adopted the experience study
recommended changes which were applied to the June 30, 2017, actuarial valuation.
The actuarial assumptions used in the June 30, 2019, valuation for PSPRS were based on the
results of an actuarial experience study for the 5-year period ended June 30, 2016. The
purpose of the experience study was to review actual experience in relation to the actuarial
assumptions in effect. The PSPRS Board adopted the experience study recommended
changes which were applied to the June 30, 2017 actuarial valuation. The total liabilities as
of June 30, 2019 reflect changes of actuarial assumptions to decrease the investment rate of
return from 7.4 percent to 7.3 percent and update the mortality rates.
Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for
funding permanent pension benefit increases and increased employee pension contribution
rates were unconstitutional or a breach of contract because those provisions apply to
individuals who were members as of the law’s effective date. As a result, the PSPRS changed
benefit terms to reflect the prior mechanism for funding permanent benefit increases for those
members and revised actuarial assumptions to explicitly value future permanent benefit
increases. PSPRS also reduced those members’ employee contribution rates. These changes
are reflected in the plan’s or plans’ pension liabilities for fiscal year 2015 (measurement date
2014) for members who were retired as of the law’s effective date and fiscal year 2018
(measurement date 2017) for members who retired or will retire after the law’s effective date.
These changes also increased the PSPRS-required contributions beginning in fiscal year 2016
for members who were retired as of the law’s effective date. These changes increased the
PSPRS-required contributions beginning in fiscal year 2019 for members who retired or will
retire after the law’s effective date.
Page 96
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Page 97
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Page 98
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Page 99
GOVERNMENTAL FUNDS
Page 100
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
JUNE 30, 2020
ASSETS
Cash and investments $1,191,808 $176,512 $4,003,667
Accounts receivable 61,497 - -
Interest receivable 1,856 50 22,782
Intergovernmental receivable 271,116 - -
Special assessments - 170,000 -
Total Assets $1,526,277 $346,562 $4,026,449
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable $415,750 $- $-
Customer deposits payable 47,371 - -
Unearned revenue - - 161,190
Total Liabilities 463,121 - 161,190
Deferred inflows of resources:
Unavailable revenue - special assessments - 170,000 -
Fund balances:
Restricted 1,063,156 176,562 3,849,159
Committed - - 16,100
Total Fund Balances 1,063,156 176,562 3,865,259
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $1,526,277 $346,562 $4,026,449
Special Revenue Debt Service Capital Projects
Page 101
$5,371,987
61,497
24,688
271,116
170,000
$5,899,288
$415,750
47,371
161,190
624,311
170,000
5,088,877
16,100
5,104,977
$5,899,288
Funds
Total Non-Major
Governmental
Page 102
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, 2020
REVENUES
Development impact fees $- $- $980,302
Special assessments - 175,197 -
Intergovernmental 3,953,165 38,043 -
Licenses, fees and permits 50 - -
Fines, forfeitures and penalties 71,770 - -
Investment income:
Interest 40,963 20,804 104,769
Net increase/(decrease) in fair value of investments (9,630) - 18,353
Other 86,968 81,036 -
Total Revenues 4,143,286 315,080 1,103,424
EXPENDITURES
Current:
Public safety 46,320 - -
Highway and streets 1,904,698 - -
Capital outlay 2,225,381 - 1,051,724
Debt service:
Principal retirement - 1,042,354 -
Interest and fiscal charges - 334,991 -
Total Expenditures 4,176,399 1,377,345 1,051,724
REVENUES OVER (UNDER)
EXPENDITURES (33,113) (1,062,265) 51,700
OTHER FINANCING SOURCES/(USES)
Transfers in/(out)- 1,046,718 (100,000)
Total Other Financing Sources (Uses)- 1,046,718 (100,000)
NET CHANGE IN FUND BALANCES (33,113) (15,547) (48,300)
FUND BALANCES, Beginning of year 1,096,269 192,109 3,913,559
FUND BALANCES, End of year $1,063,156 $176,562 $3,865,259
Special Revenue Debt Service Capital Projects
Page 103
$980,302
175,197
3,991,208
50
71,770
166,536
8,723
168,004
5,561,790
46,320
1,904,698
3,277,105
1,042,354
334,991
6,605,468
(1,043,678)
946,718
946,718
(96,960)
5,201,937
$5,104,977
Funds
Total Non-Major
Governmental
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Page 105
SPECIAL REVENUE FUNDS
The Special Revenue Funds account for the proceeds of specific revenue sources, other than major
capital projects, that are legally restricted to expenditures for specified purposes.
Highway User Revenue – accounts for the Town’s share of motor fuel tax revenues.
State Seizures and Forfeitures – accounts for state police seizures and forfeitures received by the
Town.
Federal Seizures and Forfeitures – accounts for federal police seizures and forfeitures received
by the Town.
Page 106
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2020
State Seizures
ASSETS
Cash and investments $935,241 $222,457 $34,110 $1,191,808
Accounts receivable 61,497 - - 61,497
Interest receivable 1,856 - - 1,856
Intergovernmental receivable 271,116 - - 271,116
Total Assets $1,269,710 $222,457 $34,110 $1,526,277
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $403,377 $- $12,373 $415,750
Customer deposits payable 47,371 - - 47,371
Total Liabilities 450,748 - 12,373 463,121
Fund balances:
Restricted 818,962 222,457 21,737 1,063,156
Total Fund Balances 818,962 222,457 21,737 1,063,156
Total Liabilities and Fund Balances $1,269,710 $222,457 $34,110 $1,526,277
Federal Seizures
HURF and Forfeitures and Forfeitures Totals
Page 107
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
- NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2020
REVENUES
Intergovernmental $3,953,165 $- $- $3,953,165
Licenses, fees and permits 50 - - 50
Fines, forfeitures and penalties - 48,017 23,753 71,770
Investment income:
Interest 33,189 5,454 2,320 40,963
Net decrease in fair value of investments (9,630) - - (9,630)
Other 86,968 - - 86,968
Total Revenues 4,063,742 53,471 26,073 4,143,286
EXPENDITURES
Current:
Public safety - 7,295 39,025 46,320
Highway and streets 1,904,698 - - 1,904,698
Capital outlay 2,206,988 16,513 1,880 2,225,381
Total Expenditures 4,111,686 23,808 40,905 4,176,399
NET CHANGE IN FUND BALANCES (47,944) 29,663 (14,832) (33,113)
FUND BALANCES, Beginning of year 866,906 192,794 36,569 1,096,269
FUND BALANCES, End of year $818,962 $222,457 $21,737 $1,063,156
State Seizures Federal Seizures
HURF and Forfeitures and Forfeitures Totals
Page 108
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2020
Variance
with
Actual Budget
REVENUES
Intergovernmental $3,784,407 $3,953,165 $168,758
Licenses, fees and permits - 50 50
Fines, forfeitures and penalties - - -
Investment income:
Interest - 33,189 33,189
Net increase/(decrease) in fair value of investments - (9,630) (9,630)
Other 1,500 86,968 85,468
Total Revenues 3,785,907 4,063,742 277,835
EXPENDITURES
Current:
Public safety - - -
Highway and streets 1,962,648 1,904,698 57,950
Capital outlay 2,160,500 2,206,988 (46,488)
Contingency 90,591 - 90,591
Total Expenditures 4,213,739 4,111,686 102,053
NET CHANGE IN FUND BALANCE (427,832) (47,944) 379,888
FUND BALANCE, Beginning of year - 866,906 866,906
FUND BALANCE, End of year $(427,832) $818,962 $1,246,794
HURF
Budget
Page 109
Variance
with
Actual Budget Actual
$- $- $- $- $- $-
- - - - - -
275,000 48,017 (226,983) 50,000 23,753 (26,247)
- 5,454 5,454 - 2,320 2,320
- - - - - -
- - - - - -
275,000 53,471 (221,529) 50,000 26,073 (23,927)
82,846 7,295 75,551 - 39,025 (39,025)
- - - - - -
- 16,513 (16,513) - 1,880 (1,880)
290,037 - 290,037 - - -
372,883 23,808 349,075 - 40,905 (40,905)
(97,883) 29,663 127,546 50,000 (14,832) (64,832)
- 192,794 192,794 - 36,569 36,569
$(97,883) $222,457 $320,340 $50,000 $21,737 $(28,263)
State Seizures and Forfeitures Federal Seizures and Forfeitures
Budget Budget
Variance
with
Budget
(Continued)
Page 110
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, 2020
Variance
with
Actual Budget
REVENUES
Intergovernmental $3,784,407 $3,953,165 $168,758
Licenses, fees and permits - 50 50
Fines, forfeitures and penalties 325,000 71,770 (253,230)
Investment income:
Interest - 40,963 40,963
Net increase/(decrease) in fair value of investments - (9,630) (9,630)
Other 1,500 86,968 85,468
Total Revenues 4,110,907 4,143,286 32,379
EXPENDITURES
Current:
Public safety 82,846 46,320 36,526
Highway and streets 1,962,648 1,904,698 57,950
Capital outlay 2,160,500 2,225,381 (64,881)
Contingency 380,628 - 380,628
Total Expenditures 4,586,622 4,176,399 410,223
NET CHANGE IN FUND BALANCE (475,715) (33,113) 442,602
FUND BALANCE, Beginning of year - 1,096,269 1,096,269
FUND BALANCE, End of year $(475,715) $1,063,156 $1,538,871
Totals
Budget
Page 111
MUNICIPAL DEBT SERVICE FUNDS
Municipal Debt Service - to account for the payments of debt service on the Series 2010 Excise
Tax Revenue Obligations, the Series 2012 Excise Tax Revenue Obligations, the Series 2015
Excise Tax Revenue Refunding Obligations, the Series 2016 Excise Tax Revenue Obligations, the
Series 2017 Refunding Excise Tax Revenue Obligations, and the Series 2018 Excise Tax Revenue
Obligations.
Oracle Road Debt Service – to account for the special assessment collections and payment of the
outstanding Oracle Road bond issue.
Page 112
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2020
ASSETS
Cash and investments $169,721 $6,791 $176,512
Interest receivable - 50 50
Special assessments - 170,000 170,000
Total Assets $169,721 $176,841 $346,562
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable $- $- $-
Total Liabilities - - -
Deferred inflows of resources:
Unavailable revenue - special assessments - 170,000 170,000
Fund balances:
Restricted 169,721 6,841 176,562
Total Fund Balances 169,721 6,841 176,562
Total Liabilities, Deferred Inflows of Resources and Fund Balances $169,721 $176,841 $346,562
Debt Service Debt Service Totals
Municipal Oracle Road
Page 113
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2020
Totals
REVENUES
Special assessments $- $175,197 $175,197
Intergovernmental 38,043 - 38,043
Investment income:
Interest 20,651 153 20,804
Net increase in fair value of investments - - -
Other 80,506 530 81,036
Total Revenues 139,200 175,880 315,080
EXPENDITURES
Debt service:
Principal retirement 877,354 165,000 1,042,354
Interest and fiscal charges 321,030 13,961 334,991
Total Expenditures 1,198,384 178,961 1,377,345
REVENUES OVER (UNDER)
EXPENDITURES (1,059,184) (3,081) (1,062,265)
OTHER FINANCING SOURCES (USES)
Transfers in (out)1,046,718 - 1,046,718
NET CHANGE IN FUND BALANCE (12,466) (3,081) (15,547)
FUND BALANCE, Beginning of year 182,187 9,922 192,109
FUND BALANCE, End of year $169,721 $6,841 $176,562
Debt Service Debt Service
Municipal Oracle Road
Page 114
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, 2020
Variance
with
Actual Budget
REVENUES
Special assessments $- $- $-
Intergovernmental 43,509 38,043 (5,466)
Investment income:
Interest 5,000 20,651 15,651
Net increase in fair value of investments - - -
Other 100,000 80,506 (19,494)
Total Revenues 148,509 139,200 (9,309)
EXPENDITURES
Debt service:
Principal retirement 877,352 877,354 (2)
Interest and fiscal charges 322,876 321,030 1,846
Contingency 81,821 - 81,821
Total Expenditures 1,282,049 1,198,384 83,665
REVENUES OVER (UNDER)
EXPENDITURES (1,133,540) (1,059,184) 74,356
OTHER FINANCING SOURCES (USES)
Transfers in (out)1,046,718 1,046,718 -
NET CHANGE IN FUND BALANCE (86,822) (12,466) 74,356
FUND BALANCE, Beginning of year - 182,187 182,187
FUND BALANCE, End of year $(86,822) $169,721 $256,543
Municipal Debt Service
Budget
Page 115
Variance Variance
with with
Actual Budget Actual Budget
$176,912 $175,197 $(1,715) $176,912 $175,197 $(1,715)
- - - 43,509 38,043 (5,466)
- 153 153 5,000 20,804 15,804
- - - - - -
- 530 530 100,000 81,036 (18,964)
176,912 175,880 (1,032) 325,421 315,080 (10,341)
165,000 165,000 - 1,042,352 1,042,354 (2)
14,912 13,961 951 337,788 334,991 2,797
6,240 - 6,240 88,061 - 88,061
186,152 178,961 7,191 1,468,201 1,377,345 90,856
(9,240) (3,081) 6,159 (1,142,780) (1,062,265) 80,515
- - - 1,046,718 1,046,718 -
(9,240) (3,081) 6,159 (96,062) (15,547) 80,515
- 9,922 9,922 - 192,109 192,109
$(9,240) $6,841 $16,081 $(96,062) $176,562 $272,624
Oracle Road Debt Service Totals
Budget Budget
Page 116
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Page 117
CAPITAL PROJECTS FUNDS
Capital Projects Funds are created to account for the purchase or construction of major capital
facilities which are not financed by the general, enterprise, or special revenue funds.
Townwide Roadway Development Impact Fees – to account for the collection and capital
expenditures of the Townwide Roadway Development Impact Fees.
General Impact Fees – accounts for the collection of development impact fees charged for new
residential and nonresidential growth to be used for future general government facilities, vehicles,
equipment, and other necessary general government infrastructure needed as a result of new
growth.
Townwide Facilities Projects – accounts for revenues dedicated to improvements to Town parks.
General Government CIP – to account for governmental capital asset projects.
PAG/RTA - to account for revenues dedicated to Town improvements funded through Pima
Association of Governments and the Regional Transportation Authority.
Energy Efficiency Project – to account for bond proceeds to fund energy improvements at the
Oro Valley Community Center.
Page 118
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2020
ASSETS
Cash and investments $3,107,747 $879,887 $16,033 $4,003,667
Interest receivable 19,631 3,084 67 22,782
Total Assets $3,127,378 $882,971 $16,100 $4,026,449
LIABILITIES AND FUND BALANCES
Liabilities:
Unearned revenue $161,190 $- $- $161,190
Total Liabilities 161,190 - - 161,190
Fund balances:
Restricted 2,966,188 882,971 - 3,849,159
Committed - - 16,100 16,100
Total Fund Balances 2,966,188 882,971 16,100 3,865,259
Total Liabilities and Fund Balances $3,127,378 $882,971 $16,100 $4,026,449
Townwide
TownwideGeneral
Impact Facilities
Impact Fees Fees Projects Totals
Roadway
Development
Page 119
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2020
REVENUES
Development impact fees $644,186 $336,116 $- $980,302
Investment income:
Interest 86,180 18,207 382 104,769
Net increase in fair value of investments 11,360 6,993 - 18,353
Total Revenues 741,726 361,316 382 1,103,424
EXPENDITURES
Capital outlay 1,033,482 18,242 - 1,051,724
Total Expenditures 1,033,482 18,242 - 1,051,724
REVENUES OVER (UNDER)
EXPENDITURES (291,756) 343,074 382 51,700
OTHER FINANCING SOURCES (USES)
Transfers in (out)- (100,000) - (100,000)
NET CHANGE IN FUND BALANCES (291,756) 243,074 382 (48,300)
FUND BALANCES, Beginning of year 3,257,944 639,897 15,718 3,913,559
FUND BALANCES, End of year $2,966,188 $882,971 $16,100 $3,865,259
Development
Roadway
Townwide
General Townwide
Impact Facilities
Impact Fees Fees Projects Totals
Page 120
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2020
Variance
with
Actual Budget
REVENUES
Development impact fees $541,430 $644,186 $102,756
Intergovernmental - - -
Charges for services - - -
Investment income:
Interest 30,000 86,180 56,180
Net increase in fair value of investments - 11,360 11,360
Other - - -
Total Revenues 571,430 741,726 170,296
EXPENDITURES
Capital outlay 2,710,000 1,033,482 1,676,518
Contingency 300,000 - 300,000
Total Expenditures 3,010,000 1,033,482 1,976,518
REVENUES OVER (UNDER)
EXPENDITURES (2,438,570) (291,756) 2,146,814
OTHER FINANCING SOURCES (USES)
Transfers in (out)- - -
NET CHANGE IN FUND BALANCE (2,438,570) (291,756) 2,146,814
FUND BALANCE, Beginning of year - 3,257,944 3,257,944
FUND BALANCE, End of year $(2,438,570) $2,966,188 $5,404,758
Budget
Townwide Roadway Development Impact Fees
Page 121
Variance Variance
with with
Actual Budget Actual Budget
$355,890 $336,116 $(19,774) $- $- $-
- - - - - -
- - - - - -
- 18,207 18,207 - 382 382
- 6,993 6,993 - - -
- - - - - -
355,890 361,316 5,426 - 382 382
420,000 18,242 401,758 - - -
479,535 - 479,535 15,718 - 15,718
899,535 18,242 881,293 15,718 - 15,718
(543,645) 343,074 886,719 (15,718) 382 16,100
(100,000) (100,000) - - - -
(643,645) 243,074 886,719 (15,718) 382 16,100
- 639,897 639,897 - 15,718 15,718
$(643,645) $882,971 $1,526,616 $(15,718) $16,100 $31,818
General Impact Fees
Budget
Townwide Facilities Projects
Budget
(Continued)
Page 122
TOWN OF ORO VALLEY, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL - ALL CAPITAL PROJECTS FUNDS (Continued)
YEAR ENDED JUNE 30, 2020
Variance
with
Actual Budget
REVENUES
Development impact fees $- $- $-
Intergovernmental 329,500 199,810 (129,690)
Charges for services - 536,904 536,904
Investment income:
Interest - 92,475 92,475
Net increase/(decrease) in fair value of investments - (7,206) (7,206)
Other 536,900 485,678 (51,222)
Total Revenues 866,400 1,307,661 441,261
EXPENDITURES
Capital outlay 4,139,438 3,607,970 531,468
Contingency 6,000 - 6,000
Total Expenditures 4,145,438 3,607,970 537,468
REVENUES OVER (UNDER)
EXPENDITURES (3,279,038) (2,300,309) 978,729
OTHER FINANCING SOURCES (USES)
Transfers in (out)1,100,000 1,100,000 -
NET CHANGE IN FUND BALANCE (2,179,038) (1,200,309) 978,729
FUND BALANCE, Beginning of year - 3,611,045 3,611,045
FUND BALANCE, End of year $(2,179,038) $2,410,736 $4,589,774
General Government CIP
Budget
Page 123
Variance Variance
with with
Actual Budget Actual Budget
$- $- $- $897,320 $980,302 $82,982
10,300,000 12,121,864 1,821,864 10,629,500 12,321,674 1,692,174
28,125 913,924 885,799 28,125 1,450,828 1,422,703
- - - 30,000 197,244 167,244
- - - - 11,147 11,147
- - - 536,900 485,678 (51,222)
10,328,125 13,035,788 2,707,663 12,121,845 15,446,873 3,325,028
10,300,000 13,219,405 (2,919,405) 17,569,438 17,879,099 (309,661)
490,268 - 490,268 1,291,521 - 1,291,521
10,790,268 13,219,405 (2,429,137) 18,860,959 17,879,099 981,860
(462,143) (183,617) 278,526 (6,739,114) (2,432,226) 4,306,888
- - - 1,000,000 1,000,000 -
(462,143) (183,617) 278,526 (5,739,114) (1,432,226) 4,306,888
- 566,136 566,136 - 8,090,740 8,090,740
$(462,143) $382,519 $844,662 $(5,739,114) $6,658,514 $12,397,628
PAG/RTA Totals
Budget Budget
Page 124
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Page 125
STATISTICAL SECTION
The statistical section presents financial statement trends as well as detailed financial and
operational information not available elsewhere in the report. The statistical section is intended to
enhance the reader’s understanding of the information presented in the financial statements, notes
to the financial statements, and other supplementary information presented in this report. The
statistical section is comprised of the five categories of statistical information presented below.
Financial Trends
These schedules contain information on financial trends to help the reader understand how
the Town’s financial position and financial activities have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the
Town’s ability to generate property revenue.
Debt Capacity
These schedules present information to help the reader evaluate the Town’s current levels of
outstanding debt as well as assess the Town’s ability to make debt payments and/or issue
additional debt in the future.
Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the Town’s financial activities take place and to help
make comparisons with other municipalities.
Operating Information
These schedules contain information about the Town’s operations and various resources to
help the reader draw conclusions as to how the Town’s financial information relates to the
services provided by the Town.
Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved
by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal
year 2014-15 be based upon property values limited to five percent in annual growth. The
aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying
assessment ratios based on the use of a property), including property values with a growth limit, is
currently referred to as net limited assessed value and formerly as primary assessed value. In
accordance with Proposition 117, this value is used for all taxing purposes beginning fiscal year
2015-16. Aggregate assessed value without a growth limit is currently referred to as net full cash
assessed value and formerly as secondary assessed value. This remains the value utilized for
determining debt capacity limits.
Page 126
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Page 127
TOWN OF ORO VALLEY, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
2020 2019 2018 2017 2016
Governmental Activities:
Net investment in capital assets $152,604,355 $141,506,384 $137,311,856 $133,414,691 $132,419,826
Restricted 6,601,283 5,752,355 4,424,244 6,006,584 4,653,905
Unrestricted (11,756,943) (10,619,492) (11,583,669) (15,397,688) (10,883,206)
Total governmental activities net position $147,448,695 $136,639,247 $130,152,431 $124,023,587 $126,190,525
Business-type Activities:
Net investment in capital assets $76,933,346 $73,170,068 $69,036,006 $66,755,370 $61,261,271
Unrestricted 25,077,357 23,499,030 21,397,377 18,721,247 19,504,748
Total governmental activities net position $102,010,703 $96,669,098 $90,433,383 $85,476,617 $80,766,019
Primary Government:
Net investment in capital assets $229,537,701 $214,676,452 $206,347,862 $200,170,061 $193,681,097
Restricted 6,601,283 5,752,355 4,424,244 6,006,584 4,653,905
Unrestricted 13,320,414 12,879,538 9,813,708 3,323,559 8,621,542
Total primary government net position $249,459,398 $233,308,345 $220,585,814 $209,500,204 $206,956,544
2015 2014 2013 2012 2011
Governmental Activities:
Net investment in capital assets $133,800,218 $133,714,821 $134,512,094 $135,336,862 $132,956,156
Restricted 3,599,966 4,555,138 3,730,312 11,454,390 9,048,505
Unrestricted (9,493,907) 18,430,146 18,901,112 10,808,596 10,588,160
Total governmental activities net position $127,906,277 $156,700,105 $157,143,518 $157,599,848 $152,592,821
Business-type Activities:
Net investment in capital assets $54,858,448 $52,775,561 $48,802,267 $45,669,488 $40,005,568
Unrestricted 20,092,694 21,541,202 19,501,676 19,067,780 20,371,225
Total governmental activities net position $74,951,142 $74,316,763 $68,303,943 $64,737,268 $60,376,793
Primary Government:
Net investment in capital assets $188,658,666 $186,490,382 $183,314,361 $181,006,350 $172,961,724
Restricted 3,599,966 4,555,138 3,730,312 11,454,390 9,048,505
Unrestricted 10,598,787 39,971,348 38,402,788 29,876,376 30,959,385
Total primary government net position $202,857,419 $231,016,868 $225,447,461 $222,337,116 $212,969,614
Source: Town of Oro Valley Finance Department
Page 128
TOWN OF ORO VALLEY, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Expenses
Governmental activities:
General government $17,210,855 $14,727,150 $12,639,867 $12,130,905 $11,888,794 $11,533,702 $10,990,007 $9,861,131 $9,961,376 $9,887,523
Public safety 19,416,010 18,958,436 17,683,197 22,251,172 16,123,500 16,587,168 13,814,914 12,770,224 12,349,948 12,509,201
Highways and streets 10,201,832 10,791,469 7,505,589 9,417,459 9,089,318 9,400,140 8,754,110 9,255,004 9,339,062 8,895,987
Transit 1,106,750 1,125,490 1,505,341 1,533,258 1,432,910 1,404,646 1,275,093 - - -
Culture and recreation 9,551,170 9,699,357 10,111,731 10,204,276 9,695,639 4,572,490 3,399,623 2,783,633 3,227,895 3,375,281
Interest on long-term debt 362,651 355,545 350,404 511,502 494,732 439,027 656,260 522,917 654,262 430,570
Total governmental activities expenses 57,849,268 55,657,447 49,796,129 56,048,572 48,724,893 43,937,173 38,890,007 35,192,909 35,532,543 35,098,562
Business-type activities:
Water 15,953,546 15,089,673 15,568,288 14,753,418 14,406,074 13,608,931 13,572,677 13,047,373 11,984,829 12,527,851
Stormwater 1,444,865 1,291,490 1,190,898 1,115,494 917,898 854,510 749,038 983,975 636,966 586,006
Total business-type activities expenses 17,398,411 16,381,163 16,759,186 15,868,912 15,323,972 14,463,441 14,321,715 14,031,348 12,621,795 13,113,857
Total primary government expenses $75,247,679 $72,038,610 $66,555,315 $71,917,484 $64,048,865 $58,400,614 $53,211,722 $49,224,257 $48,154,338 $48,212,419
Program Revenues
Governmental activities:
Charges for services
General government $5,205,012 $4,920,132 $5,084,396 $4,901,504 $4,096,927 $3,516,359 $3,978,117 $3,740,046 $3,079,526 $2,455,182
Public safety 157,312 173,488 128,651 138,075 168,808 29,097 35,976 45,346 33,109 33,976
Highways and streets 1,675,929 754,388 1,039,542 1,052,167 764,397 496,098 546,066 1,052,581 329,420 400,977
Transit 110,309 138,125 119,536 100,052 88,684 72,783 71,078 - - -
Culture and recreation 4,391,639 5,014,018 5,096,804 4,611,576 4,373,693 1,108,734 435,354 169,965 82,832 126,290
Operating grants and contributions 3,621,830 4,669,814 4,949,928 4,664,197 5,503,530 5,070,396 4,706,844 5,318,097 5,247,844 4,887,283
Capital grants and contributions 16,338,347 8,302,441 5,529,831 6,749,407 3,602,656 2,456,727 2,919,641 2,920,335 7,107,063 8,980,239
Total governmental activities program revenues 31,500,378 23,972,406 21,948,688 22,216,978 18,598,695 12,750,194 12,693,076 13,246,370 15,879,794 16,883,947
Business-type activities:
Charges for services
Water 20,218,758 17,519,158 19,455,685 18,158,385 16,739,580 16,088,681 19,286,794 16,732,600 15,817,345 15,119,065
Stormwater 1,443,616 1,426,246 1,386,278 1,314,787 828,258 771,594 759,428 813,400 752,212 888,391
Operating grants and contributions - - - - 35,000 - - - - -
Capital grants and contributions 169,194 2,899,213 870,920 1,097,285 3,334,372 1,979,037 179,675 48,871 245,607 1,655,307
Total business-type activities program revenues 21,831,568 21,844,617 21,712,883 20,570,457 20,937,210 18,839,312 20,225,897 17,594,871 16,815,164 17,662,763
Total primary government program revenues $53,331,946 $45,817,023 $43,661,571 $42,787,435 $39,535,905 $31,589,506 $32,918,973 $30,841,241 $32,694,958 $34,546,710
Net (expense)/revenue:
Governmental activities $(26,348,890) $(31,685,041) $(27,847,441) $(33,831,594) $(30,126,198) $(31,186,979) $(26,196,931) $(21,946,539) $(19,652,749) $(18,214,615)
Business-type activities 4,433,157 5,463,454 4,953,697 4,701,545 5,613,238 4,375,871 5,904,182 3,563,523 4,193,369 4,548,906
Total primary government net expense $(21,915,733) $(26,221,587) $(22,893,744) $(29,130,049) $(24,512,960) $(26,811,108) $(20,292,749) $(18,383,016) $(15,459,380) $(13,665,709)
Page 129
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Sales $22,757,403 $22,924,400 $21,664,398 $19,767,720 $16,998,464 $16,132,159 $15,286,001 $14,241,065 $12,799,678 $11,572,148
Franchise 662,048 635,494 656,664 647,830 621,546 582,064 571,731 539,477 525,427 514,814
Unrestricted state revenue sharing 12,638,148 11,879,950 11,577,834 11,177,729 10,549,196 10,413,464 9,636,906 9,048,365 3,461,359 4,520,935
Unrestricted state sales tax revenue sharing - - - - - - - - 3,204,612 2,569,666
Unrestricted auto lieu tax revenue sharing - - - - - - - - 1,479,094 1,318,989
Investment earnings 1,098,267 1,132,215 74,542 68,435 238,210 216,175 255,702 265,787 189,606 39,124
Special item - Capital asset conveyance - - - - - - - (2,606,804) - -
Transfers 2,472 2,581 2,847 2,942 3,030 3,119 3,178 2,319 - -
Total governmental activities 37,158,338 36,574,640 33,976,285 31,664,656 28,410,446 27,346,981 25,753,518 21,490,209 21,659,776 20,535,676
Business-type activities:
Investment earnings 910,920 774,842 5,916 11,995 204,669 124,887 111,816 5,471 167,106 39,745
Transfers (2,472) (2,581) (2,847) (2,942) (3,030) (3,119) (3,178) (2,319) - -
Total business-type activities 908,448 772,261 3,069 9,053 201,639 121,768 108,638 3,152 167,106 39,745
Total primary government $38,066,786 $37,346,901 $33,979,354 $31,673,709 $28,612,085 $27,468,749 $25,862,156 $21,493,361 $21,826,882 $20,575,421
Change in Net Position
Governmental activities 10,809,448 4,889,599 6,128,844 (2,166,938) (1,715,752) (3,839,998) (443,413) (456,330) 2,007,027 2,321,061
Business-type activities 5,341,605 6,235,715 4,956,766 4,710,598 5,814,877 4,497,639 6,012,820 3,566,675 4,360,475 4,588,651
Total primary government $16,151,053 $11,125,314 $11,085,610 $2,543,660 $4,099,125 $657,641 $5,569,407 $3,110,345 $6,367,502 $6,909,712
Source: Town of Oro Valley Finance Department
* Impact fees in fiscal year 2011 are now presented in program revenues.
Page 130
TOWN OF ORO VALLEY, ARIZONA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
General fund
Nonspendable $45,553 $129,504 $141,676 $130,030 $97,269 $31,278 $- $- $- $-
Committed 10,485,304 13,608,565 - - - - - - - -
Assigned - 2,584,994 1,441,862 1,441,862 1,441,862 1,553,999 1,608,035 1,608,035 1,608,035 1,769,333
Unassigned 10,368,691 3,248,602 14,384,104 11,831,322 8,985,422 8,566,598 9,925,988 11,529,070 9,793,614 9,237,805
Total general fund $20,899,548 $19,571,665 $15,967,642 $13,403,214 $10,524,553 $10,151,875 $11,534,023 $13,137,105 $11,401,649 $11,007,138
All other governmental funds
Nonspendable $73,201 $105,403 $130,202 $132,538 $127,600 $149,348 $- $- $- $-
Restricted 5,471,396 5,752,355 4,424,244 6,006,584 4,031,923 3,599,966 4,555,138 3,730,312 11,454,390 9,128,505
Committed 805,717 406,247 1,594,293 1,829,232 2,617,856 4,637,773 5,343,506 4,166,818 622,919 840,704
Assigned 2,410,736 3,611,045 2,209,618 1,716,361 1,340,991 1,421,593 1,500,000 - - -
Unassigned - - (201,765) (237,769) (29,198) - - - - -
Total all other governmental funds $8,761,050 $9,875,050 $8,156,592 $9,446,946 $8,089,172 $9,808,680 $11,398,644 $7,897,130 $12,077,309 $9,969,209
Source: Town of Oro Valley Finance Department
Note: 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 categories with the following five fund balance classifications:
nonspendable, restricted, committed, assigned, and unassigned fund balance.
Page 131
TOWN OF ORO VALLEY, ARIZONA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Revenues
Taxes $23,419,451 $23,559,894 $22,321,062 $20,415,550 $17,620,010 $16,714,223 $15,857,732 $14,780,542 $13,325,105 $12,086,962
Intergovernmental 30,840,092 24,375,992 21,634,143 22,118,633 19,488,066 17,714,991 16,732,631 16,817,756 19,723,086 18,040,619
Fines, forfeitures, & penalties 183,381 247,283 529,687 558,692 283,470 221,571 673,336 551,962 895,820 560,941
Licenses, fees, & permits 2,400,899 2,387,832 2,679,690 2,388,951 1,915,992 1,605,937 2,116,700 1,813,947 1,185,862 1,059,309
Charges for services 7,463,179 7,206,705 6,599,847 6,226,578 5,956,058 2,991,826 1,850,181 1,630,238 1,209,814 926,135
Contributions & donations - - 133,928 150,000 149,513 - - 27,229 995 15,000
Special assessments 175,197 174,066 175,854 175,539 189,525 178,078 1,462,307 365,935 366,028 365,811
Development impact fees 980,302 1,039,763 1,346,402 1,348,528 795,471 439,637 569,338 988,342 417,742 481,619
Investment income 1,098,267 1,132,215 74,542 68,435 238,210 216,175 255,702 265,787 189,606 39,124
Other revenues 965,588 841,111 576,970 572,886 504,796 141,618 305,489 349,326 460,512 297,109
Total revenues $67,526,356 $60,964,861 $56,072,125 $54,023,792 $47,141,111 $40,224,056 $39,823,416 $37,591,064 $37,774,570 $33,872,629
Expenditures
General government $16,531,008 $14,424,463 $11,998,586 $11,098,844 $11,426,687 $10,862,553 $10,610,673 $9,289,771 $9,212,866 $9,848,393
Public safety 16,767,994 16,250,498 16,731,963 15,725,029 15,494,532 15,071,396 13,539,322 12,342,349 11,993,864 11,928,567
Highways & streets 1,904,698 2,999,923 3,092,143 2,993,402 2,754,413 2,602,321 3,710,577 3,513,479 3,191,654 3,288,349
Transit 1,110,444 1,150,322 1,536,294 1,528,654 1,432,910 1,404,646 - - - -
Culture & recreation 8,735,394 8,880,611 9,399,598 9,433,339 9,097,752 4,078,817 2,445,131 2,468,129 2,954,549 3,031,520
Capital outlay 20,637,466 15,293,326 10,081,427 9,196,801 7,995,340 8,093,704 5,495,185 11,053,739 6,929,834 7,014,659
Debt service
Principal 1,262,487 1,124,885 1,304,226 1,075,466 897,637 649,840 1,867,901 571,910 3,052,953 3,459,970
Interest 365,454 327,421 356,661 314,914 336,510 436,010 472,268 498,729 554,274 470,578
Issuance cost on bonds - 35,000 - 67,959 104,533 - - - 75,800 -
Total expenditures $67,314,945 $60,486,449 $54,500,898 $51,434,408 $49,540,314 $43,199,287 $38,141,057 $39,738,106 $37,965,794 $39,042,036
Excess of revenues over
(under) expenditures $211,411 $478,412 $1,571,227 $2,589,384 $(2,399,203) $(2,975,231) $1,682,359 $(2,147,042) $(191,224) $(5,169,407)
Other financing sources (uses)
Premium on bonds issued - - - - - - - - 113,835 -
Proceeds from capital lease agreements - - - - 1,043,214 - 212,895 - - -
Payment to bond escrow agent - - - (1,171,447) (2,523,121) - - - - -
Issuance of long-term debt - 2,035,000 - 3,115,556 2,529,250 - - - 2,580,000 2,445,000
Transfers in 2,046,718 4,407,180 3,342,890 2,953,072 1,872,026 4,326,627 4,115,152 1,704,272 1,003,666 860,143
Transfers out (2,044,246) (4,404,599) (3,640,043) (3,250,130) (1,868,996) (4,323,508) (4,111,974) (2,001,953) (1,003,666) (795,020)
Total other financing sources (uses)2,472 2,037,581 (297,153) 1,647,051 1,052,373 3,119 216,073 (297,681) 2,693,835 2,510,123
Net change in fund balances $213,883 $2,515,993 $1,274,074 $4,236,435 $(1,346,830) $(2,972,112) $1,898,432 $(2,444,723) $2,502,611 $(2,659,284)
Debt service as a percentage
of noncapital expenditures 3.40%3.16%3.66%3.32%3.00%3.17%7.30%3.76%11.55%12.36%
Source: Town of Oro Valley Finance Department
Page 132
TOWN OF ORO VALLEY, ARIZONA
PRINCIPAL SALES TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS PRIOR
% of Total % of Total
Business Sales Tax Business Sales Tax
Taxpayer Type Rank Payments Taxpayer Type Rank Payments
Taxpayer A Utility $2,152,927 1 9.46%Taxpayer A Accomodation $1,026,810 1 8.95%
Taxpayer B Construction 1,230,334 2 5.41%Taxpayer B Utility 839,817 2 7.32%
Taxpayer C Retail 1,162,919 3 5.11%Taxpayer C Retail 763,115 3 6.65%
Taxpayer D Construction 1,162,597 4 5.11%Taxpayer D Construction 540,074 4 4.71%
Taxpayer E Retail 1,155,697 5 5.08%Taxpayer E Retail 404,511 5 3.53%
Taxpayer F Accomodation 800,459 6 3.52%Taxpayer F Retail 337,952 6 2.95%
Taxpayer G Utility 662,977 7 2.91%Taxpayer G Retail 276,173 7 2.41%
Taxpayer H Construction 651,356 8 2.86%Taxpayer H Retail 250,501 8 2.18%
Taxpayer I Retail 535,535 9 2.35%Taxpayer I Construction 240,724 9 2.10%
Taxpayer J Construction 419,776 10 1.84%Taxpayer J Utility 212,456 10 1.85%
$9,934,577 43.65%$4,892,133 42.64%
Sales Tax
Payments
Sales Tax
Payments
June 30, 2020 June 30, 2011
Source: Arizona Department of Revenue
Page 133
TOWN OF ORO VALLEY, ARIZONA
TAXABLE SALES BY CATEGORY
LAST TEN FISCAL YEARS ($000's)
2020 2019 2017 2016 2015 2014 2013 2012 2011
Construction $4,363 $4,191 $4,653 $4,295 $2,131 $3,199 $3,338 $2,842 $1,738 $1,707
Manufacturing 198 173 140 137 156 141 257 258 258 266
Transportation, Warehousing,
Communications & Utilities 3,288 3,335 3,384 3,171 3,133 3,068 2,959 2,785 2,450 1,534
Wholesale Trade 211 183 154 136 131 125 103 110 106 93
Retail Trade 9,830 8,430 7,733 7,086 6,844 5,808 5,243 5,153 4,925 4,720
Restaurants, Bars & Lodging 3,011 4,299 3,907 3,473 3,295 2,803 2,761 2,164 2,314 2,314
Finance, Insurance & Real Estate 442 1,114 646 562 443 270 75 335 333 324
Services 1,004 963 840 702 672 599 529 456 456 417
All Other 409 237 206 202 190 115 60 75 103 102
Cable Franchise 662 635 657 648 622 582 572 540 525 515
Total $23,418 $23,560 $22,320 $20,412 $17,617 $16,710 $15,897 $14,718 $13,208 $11,992
Town Sales Tax Rate*2.00%2.00%
2018
Fiscal Year
2.50%2.50%2.50%2.50%2.50%2.00%2.00%2.00%
Source: Arizona Department of Revenue
* Note:
1% Additional Bed Tax Effective May 1, 1990
3% Additional Bed Tax Effective September 1, 2001
4% Construction Sales Tax Effective May 1, 2004
6% Additional Bed Tax Effective January 1, 2006
2% Utility Sales Tax Effective April 1, 2007
2% Additional Utility Sales Tax Effective August 1, 2011
.5% Additional Sales Tax Effective March 1, 2015
Page 134
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
Fiscal Year
Ended Utility
June 30,Sales Tax Bed Tax Sales Tax Sales Tax
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%
2016 2.50%6.00%4.00%4.00%6.10%
2017 2.50%6.00%4.00%4.00%6.10%
2018 2.50%6.00%4.00%4.00%6.10%
2019 2.50%6.00%4.00%4.00%6.10%
2020 2.50%6.00%4.00%4.00%6.10%
Town of Oro Valley
Construction
Pima County
Sales
Source: Arizona Department of Revenue
Page 135
TOWN OF ORO VALLEY, ARIZONA
NET LIMITED & FULL CASH ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
Fiscal Year Net Full Estimated
Ended Assessed Cash Assessed Full Cash
June 30,Value Value Value
2011 $649,015,575 $672,309,638 $6,041,904,306 $-
2012 618,976,953 629,340,548 5,716,229,517 -
2013 589,160,533 592,761,968 5,461,131,133 -
2014 553,366,744 556,259,856 5,175,406,955 -
2015 556,566,167 560,863,509 5,252,917,489 -
2016 572,696,599 593,299,222 5,616,655,680 -
2017 593,580,247 616,216,705 5,688,443,027 -
2018 612,684,205 633,479,221 6,058,189,523 -
2019 645,311,769 683,985,966 6,456,152,108 -
2020 678,873,768 730,293,104 6,937,292,543 -
Net Limited Total Outstanding
General Obligation
Bond Debt
Source: State of Arizona Department of Revenue Abstract of the Assessment Roll
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015
(Fiscal Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value
is used for determining the Town's bonding capacity and as the ceiling for net limited assessed value.
Page 136
TOWN OF ORO VALLEY, ARIZONA
HISTORICAL AND PROJECTED EXCISE TAX COLLECTIONS
JUNE 30, 2020
Fiscal Year Fiscal Year
Revenue Source
Town Sales & Franchise Fees $23,298,666 $20,621,264 $23,418,101 $23,559,894 $22,321,148 $20,415,550 $17,620,010 $16,714,223 $15,857,732 $14,780,543
Licenses & Permits 2,461,440 1,617,500 2,400,899 2,387,832 2,679,690 2,313,504 1,915,992 1,605,937 2,116,700 1,813,947
Fines 127,500 125,000 111,611 165,669 131,393 131,637 159,154 148,050 172,232 180,875
State-shared Sales Tax 4,857,600 4,618,121 4,694,491 4,469,774 4,210,168 3,989,179 3,887,673 3,747,944 3,569,711 3,356,826
State-shared Income Tax 5,922,299 6,593,212 5,870,231 5,370,779 5,422,693 5,329,864 4,937,719 4,964,635 4,571,196 4,189,186
Total $36,667,505 $33,575,097 $36,495,333 $35,953,948 $34,765,092 $32,179,734 $28,520,548 $27,180,789 $26,287,571 $24,321,377
Projected
Fiscal Year
2013
Fiscal Year
2021
Fiscal Year
2022
Fiscal Year Fiscal Year
20152016 2014
Fiscal YearFiscal Year
2017
Fiscal Year
2020 20182019
Actual
(a) All revenue sources are presented on a modified accrual basis of accounting except for Town sales taxes which are presented on the cash basis of accounting per the Arizona Department of Revenue Standard
Industry Summary Local Taxes Collection Reports
Source: Oro Valley Finance Department
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
Page 137
TOWN OF ORO VALLEY, ARIZONA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Special Percentage
Fiscal Note Loan Assessment of Personal
Year Payable Payable Bonds Income
2011 $- $- $2,513,133 $7,149,780 $2,920,000 $49,803,970 $35,392 $5,473,096 $67,895,371 3.73%1,656
2012 - - - 9,485,968 2,685,000 45,988,331 - 5,893,122 64,052,421 3.85%1,550
2013 - - - 9,155,743 2,435,000 43,349,121 185,307 5,575,041 60,700,212 3.59%1,409
2014 168,994 - - 8,703,428 1,055,000 40,811,243 93,593 6,371,529 57,203,787 3.41%1,366
2015 128,594 1,000,000 - 8,215,673 925,000 37,683,805 118,862 8,169,765 56,241,699 3.25%1,331
2016 966,962 700,000 - 7,716,638 780,000 34,517,647 80,423 8,879,907 53,641,577 2.95%1,231
2017 716,622 350,000 - 9,341,559 640,000 30,804,327 40,814 8,284,407 50,177,729 2.69%1,146
2018 458,744 - - 8,788,954 490,000 28,079,939 - 7,690,874 45,508,511 2.35%1,022
2019 254,070 - - 10,051,867 335,000 30,135,034 - 7,079,179 47,855,150 2.37%1,059
2020 33,937 - - 9,171,710 170,000 25,669,708 - 6,448,759 41,494,114 1.96%905
Per
Capita
Capital
Leases
Loan
Payable
Business-Type Activities
Total
Primary
Government
Capital
Leases
Excise Tax
Bonds
Governmental Activities
Revenue
Bonds
Source: Town of Oro Valley Finance Department and U.S. Census Bureau
Page 138
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2020
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable Debt
Pima County $181,428,000 7.60%$13,781,133
Amphitheater Unified School District 86,735,000 42.47%36,834,243
Golder Ranch Fire District 12,685,175 69.95%8,873,835
Subtotal, overlapping debt 59,489,212
Town of Oro Valley 9,375,647 100.00%9,375,647
Total estimated direct and overlapping debt $68,864,859
Source: Pima County, Golder Ranch Fire District and Amphitheater Unified School District No. 10.
(1) Estimated percentage of debt outstanding applicable to the Town is calculated based on a portion of the Town's net limited assessed
valuation as a percentage of the net limited assessed valuation of the overlapping jurisdiction.
Page 139
TOWN OF ORO VALLEY, ARIZONA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2020 2019 2018 2017 2016
Debt Limit $189,876,207 $177,836,351 $164,704,598 $160,216,343 $154,257,798
Total net debt applicable to limit - - - - -
Legal debt margin $189,876,207 $177,836,351 $164,704,598 $160,216,343 $154,257,798
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
2015 2014 2013 2012 2011
Debt Limit $145,824,512 $144,627,563 $154,118,112 $163,628,543 $174,800,436
Total net debt applicable to limit - - - - -
Legal debt margin $145,824,512 $144,627,563 $154,118,112 $163,628,543 $174,800,436
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
Source: Town of Oro Valley Finance Department
Page 140
TOWN OF ORO VALLEY, ARIZONA
CALCULATION OF LEGAL DEBT MARGIN
JUNE 30, 2020
Net Full Cash Assessed Valuation $730,293,104
Debt Limit - 20% of net full cash assessed valuation $146,058,621
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 $146,058,621
Debt Limit - 6% of net full cash assessed valuation $43,817,586
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 $43,817,586
Total legal debt margin $189,876,207
Water, Sewer, Light, Parks, Open Space and
Recreational Facility Bonds
All other general obligation bonds
Source: Pima County Assessor’s Office
Page 141
TOWN OF ORO VALLEY, ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
Water Utility Revenue Bonds
Fiscal
Year
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
2016 16,943,615 3,054,080 1,239,488 4,293,568 3.95
2017 18,169,402 3,054,060 870,547 3,924,607 4.63
2018 19,455,685 2,607,710 897,871 3,505,581 5.55
2019 17,519,158 3,933,228 839,823 4,773,051 3.67
2020 20,218,758 4,348,648 775,538 5,124,186 3.95
Governmental Revenue Bonds
Fiscal
Year
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
2016 31,883,978 530,920 289,630 820,550 38.86
2017 31,739,256 334,940 281,475 616,415 51.49
2018 34,262,128 544,290 280,170 824,460 41.56
2019 36,414,803 763,772 284,213 1,047,985 34.75
2020 36,511,067 877,352 312,875 1,190,227 30.68
Special Assessment
Fiscal
Year
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
2016 189,525 145,000 58,189 203,189 0.93
2017 175,539 140,000 33,203 173,203 1.01
2018 175,854 150,000 26,290 176,290 1.00
2019 174,066 155,000 21,363 176,363 0.99
2020 175,197 165,000 11,911 176,911 0.99
Coverage
Principal Interest Total Coverage
Principal Interest Total Coverage
Debt Service
Revenues
Gross
Revenues
Debt Service
Debt Service
Gross
Revenues
Gross
Principal Interest Total
Source: Town of Oro Valley Finance Department
Page 142
TOWN OF ORO VALLEY, ARIZONA
HISTORICAL AND PROJECTED WATER SYSTEM REVENUES, EXPENSES, DEBT SERVICE AND COVERAGE
LAST TEN FISCAL YEARS
Revenues:
Water revenues $13,764,702 $12,413,502 $13,586,667 $12,493,557 $12,018,429 $11,280,269 $12,169,375 $11,585,181 $11,578,981 $12,038,482
Water connection fees 810,689 621,106 816,045 816,353 544,852 591,045 1,413,047 706,159 462,762 244,376
Alternative water connection fees 1,627,435 1,246,838 1,638,175 1,638,792 1,094,460 1,172,170 2,376,682 1,253,055 759,958 400,988
Groundwater preservation fees 2,389,953 2,213,303 2,611,075 2,440,045 2,371,100 2,330,231 2,599,718 2,527,524 2,315,277 2,096,093
Other revenues 1,625,979 1,024,407 803,723 769,638 710,740 714,965 727,972 660,681 557,222 541,299
Interest income 887,772 758,457 - 11,020 203,857 124,593 110,615 - 166,654 38,445
Total Revenues 21,106,530 18,277,613 19,455,685 18,169,405 16,943,438 16,213,273 19,397,409 16,732,600 15,840,854 15,359,683
Expenses:
Personnel 3,392,481 3,236,682 3,155,109 3,021,915 2,952,249 2,767,143 2,659,895 2,537,150 2,497,865 2,418,118
Operations & maintenance 4,288,975 3,445,511 3,838,409 4,719,579 5,059,998 4,530,436 4,303,230 4,564,894 3,559,807 3,721,167
CAP water costs 3,696,131 3,393,317 3,523,052 2,892,392 1,952,117 1,570,793 1,499,594 1,093,105 636,519 903,855
Total Expenses 11,377,587 10,075,510 10,516,570 10,633,886 9,964,364 8,868,372 8,462,719 8,195,149 6,694,191 7,043,140
Net water system revenues 9,728,943 8,202,103 8,939,115 7,535,519 6,979,074 7,344,901 10,934,690 8,537,451 9,146,663 8,316,543
Water supported debt service
2007 WIFA Loan 306,657 310,866 311,000 311,130 311,256 311,377 311,494 316,763 316,875 316,983
2009 WIFA Loan 147,425 149,175 149,226 149,275 149,322 149,367 150,471 186,817 182,268 161,554
2014 WIFA Loan 373,072 377,060 377,158 395,534 361,059 296,972 - - - -
2003 Revenue bonds - - - - - - - 980,000 2,545,435 2,545,935
2003 Refunding revenue bonds - - - - - - - 1,243,058 1,238,996 1,152,546
2005 Excise tax bonds - - - - - 152,516 152,565 151,245 152,099 151,744
2007 Excise tax bonds - - - 1,245,403 1,197,678 1,255,948 790,822 791,111 791,203 791,099
2012 Refunding bonds 1,930,382 1,996,381 1,963,731 1,980,781 1,995,481 1,971,082 1,968,281 956,975 - -
2013 Refunding bonds 1,010,000 1,024,645 1,024,073 1,033,428 1,022,420 1,046,558 1,513,427 - - -
2015 Refunding revenue obligations 149,924 152,339 150,259 25,101 17,116 - - - - -
2017 Refunding revenue obligations 1,624,758 1,658,306 235,873 - - - - - - -
2018 Excise tax revenue obligations 409,122 - - - - - - - - -
Total water supported debt service $5,951,340 $5,668,772 $4,211,320 $5,140,652 $5,054,332 $5,183,820 $4,887,060 $4,625,969 $5,226,876 $5,119,861
Debt service coverage 1.63 1.45 2.12 1.47 1.38 1.42 2.24 1.85 1.75 1.62
2013 2012 20112019201820202017201620152014
Source: Oro Valley Finance Department
Page 143
TOWN OF ORO VALLEY, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Fiscal Year Per Capita
Ended Personal Unemployment
June 30,Population Income Rate
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%
2016 43,565 1,817,844,597 41,727 5.3%
2017 43,781 1,863,394,821 42,562 4.6%
2018 44,517 1,932,614,654 43,413 4.8%
2019 45,184 2,014,980,480 44,595 4.9%
2020 45,848 2,119,690,584 46,233 8.6%
Income
Personal
Source: US Census Bureau, Arizona Employment statistics, and Pima Association of Governments
Page 144
TOWN OF ORO VALLEY, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND FISCAL YEAR NINE YEARS PRIOR
% of Total % of Total
Town Town
Employer Employees Rank Employment Employer Employees Rank Employment
Ventana Medical Systems 1,710 1 8.85%Ventana Medical Systems 1,300 1 7.61%
Oro Valley Hospital 700 2 3.62%Amphitheater Public Schools 673 2 3.94%
Amphitheater Public Schools 600 3 3.11%Hilton El Conquistador Resort 486 3 2.84%
Town of Oro Valley 590 4 3.05%Oro Valley Hospital 470 4 2.75%
Wal-Mart Supercenter 390 5 2.02%Town of Oro Valley 324 5 1.90%
Hilton El Conquistador Resort 340 6 1.76%Fry's Food & Drug 260 6 1.52%
Casa De La Luz Foundation 260 7 1.35%Wal-Mart Supercenter 250 7 1.46%
Fry's Food & Drug 200 8 1.04%Target 125 8 0.73%
Target 180 9 0.93%Kohls 100 9 0.59%
Securaplane Technologies Inc 180 10 0.93%Sanofi-Aventis 73 10 0.43%
Total 5,150 26.66% Total 4,061 23.77%
June 30, 2011June 30, 2020
Source: Town of Oro Valley Department of Economic Development. 2010 Information is from the Principal Employers Arizona Workforce Informer
Page 145
TOWN OF ORO VALLEY, ARIZONA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Administration
Town Clerk 4.73 4.73 4.69 4.54 4.56 4.56 4.90 4.54 4.44 4.60
Town Manager 10.38 10.38 7.38 7.38 7.38 8.00 7.00 7.00 7.10 7.10
Human Resources 4.00 4.00 3.48 3.48 3.50 3.50 2.00 5.00 5.00 5.00
Economic Development 1.00 1.00 3.00 3.00 3.00 2.00 2.00 3.00 1.00 1.00
Finance 8.00 8.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Information Systems 9.00 9.00 8.00 7.00 7.00 7.00 7.30 6.50 6.50 8.00
Legal 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 8.00 8.00
Development & Infrastructure Services 27.38 27.38 26.88 103.63 83.76 81.45 78.84 77.22 73.38 73.10
Parks & Recreation 63.10 63.10 60.78 48.02 49.36 36.20 37.61 27.26 20.62 22.70
Cultural Resources - - - - 0.20 - - 1.35 1.30 1.30
Library - - - - - - - - 18.55 18.40
Police
Civilians 31.25 31.25 30.25 31.25 30.25 30.25 25.93 30.25 30.25 29.70
Officers 106.88 101.88 104.88 101.88 102.88 102.88 101.91 101.44 97.96 95.00
Magistrate Court 8.48 8.00 8.00 8.00 8.00 8.00 8.70 8.00 8.00 9.00
Public Works 70.29 70.29 65.79 - - - - - - -
Water Utility 39.48 39.48 39.48 39.48 38.48 37.48 37.00 36.00 36.00 34.00
Total 389.97 384.49 375.61 370.66 351.37 334.32 326.19 320.56 325.10 323.90
Source: Town of Oro Valley Finance Department
Page 146
162
TOWN OF ORO VALLEY, ARIZONA
WATER UTILITY REVENUES BY USER TYPE
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2011 $8,043,658 $921,825 $1,166,921 $13,258 $92,257 $814 $130,704 $1,669,045 $12,038,482
2012 7,761,639 954,472 1,050,602 13,466 120,830 653 115,568 1,561,750 11,578,980
2013 7,752,934 962,824 1,040,793 19,000 196,354 884 135,720 1,507,574 11,616,083
2014 7,881,436 886,712 1,169,067 187,622 283,632 816 121,108 1,638,981 12,169,374
2015 7,649,136 779,877 981,545 214,848 271,815 - 115,955 1,267,093 11,280,269
2016 8,103,644 778,915 1,129,741 50,479 310,609 - 114,427 1,530,107 12,017,922
2017 8,416,714 814,041 1,170,946 51,373 224,532 8,733 104,880 1,702,338 12,493,557
2018 8,990,121 860,124 1,371,555 61,504 520,324 13,735 103,126 1,666,178 13,586,667
2019 8,849,732 856,941 1,087,648 69,363 302,780 9,627 69,091 1,168,322 12,413,504
2020 9,798,411 925,233 1,193,423 65,007 345,149 8,787 85,600 1,343,092 13,764,702
TotalResidentialCommercialIrrigation
Irrigation
Reclaimed Construction
Construction
Reclaimed Turf
Turf
Reclaimed
Source: Town of Oro Valley Water Utility Department
Page 147
147
TOWN OF ORO VALLEY, ARIZONA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2019 2018 2017 2016 2015 2014 2013 2012 2011
Police
Burglaries 42 50 77 71 85 77 75 105 134 100
Citations (traffic)2,681 3,117 2,992 3,446 3,890 4,486 4,668 5,456 5,084 5,244
Investigations 932 963 915 818 824 832 765 681 711 746
Total arrests 1,251 1,488 1,786 1,458 1,598 1,721 1,679 1,564 1,716 1,932
Thefts 501 504 567 493 586 500 561 563 571 656
Development & Infrastructure Services
Street resurfacing (miles)51 88 44 89 92 101 73 31 22 14
Parks & Recreation
Recreation programs held annually 105 96 73 55 52 38 30 35 37 47
Months of public pool operations 12 12 12 12 12 12 12 10 12 12
Parks maintenance man-hours worked 18,220 18,311 17,842 15,463 15,083 16,255 20,000 17,000 16,016 18,680
Library
Collection volume - - - - - - - - 97,364 100,652
Water
New connections 273 264 331 340 176 202 165 213 97 61
Total connections 20,461 20,188 19,924 19,588 19,355 19,179 18,977 18,812 18,599 18,502
Transit
Total route miles 455,777 454,277 468,346 568,657 529,170 392,071 439,512 353,936 200,058 138,333
Passengers 39,902 47,847 49,474 51,131 45,202 39,102 39,196 32,442 20,119 14,873
2020
Source: Town of Oro Valley Finance Department
Note: Oro Valley Library was transferred to Pima County Library District on January 1, 2013.
Page 148
TOWN OF ORO VALLEY, ARIZONA
WATER RATES
LAST TEN FISCAL YEARS
Fiscal Year
Ended
June 30,
2011 $14.19 $2.20 $2.99 $4.03 $5.38 $0.75 $14.19
2012 14.19 2.20 2.99 4.03 5.38 0.95 14.19
2013 14.19 2.20 2.99 4.03 5.38 0.95 14.19
2014 14.19 2.23 3.01 4.07 5.49 0.95 14.19
2015 14.19 2.27 3.10 4.23 5.76 0.90 14.19
2016 14.19 2.32 3.19 4.40 6.05 0.90 14.19
2017 14.62 2.34 3.25 4.53 6.29 0.90 14.62
2018 16.45 2.34 3.25 4.53 6.29 0.90 14.62
2019 18.26 2.34 3.25 4.53 6.29 0.90 14.62
2020 18.26 2.34 3.25 4.53 6.29 0.90 14.62
Reclaimed
WaterPotable Water
Tier 3
Per 1,000
Tier 4
Per 1,000
GPF
Per 1,000
Base Rate
Monthly
Tier 1
Per 1,000
Tier 2
Per 1,000
Base Rate
Monthly
Source: Town of Oro Valley Water Utility
Note: The rate for all reclaimed water is $2.27 per 1,000 gallons.
Page 149
TOWN OF ORO VALLEY, ARIZONA
CAPITAL ASSETS STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
Function/Program 2019 2018 2017 2016 2015 2014 2013 2012 2011
Police
Stations 1 1 1 1 1 1 1 1 1 1
Substations 3 3 3 3 3 3 3 3 3 3
Patrol units 84 78 78 72 77 74 64 66 67 53
Other fleet 42 46 65 67 44 45 42 43 42 55
Development & Infrastructure Services
Streets (miles)421 421 421 421 421 421 421 205 204 204
Streetlights 95 95 95 95 95 95 95 95 93 93
Traffic signals 22 22 22 19 19 19 19 19 17 16
Parks & Recreation
Acreage 449 449 449 448 448 448 457 436 436 374
Playgrounds 3 2 2 2 2 2 2 2 2 2
Baseball/softball diamonds 7 7 7 7 7 7 7 7 7 7
Community centers 1 1 1 1 1 1 - - - -
Golf course holes 45 45 45 45 45 45 - - - -
Tennis courts 32 32 32 32 32 32 1 1 1 1
Swimming pools 2 3 4 4 4 4 2 2 2 1
Water
Wells 19 18 19 20 20 20 18 22 22 22
Storage capacity (MG)11 12 10 12 12 12 13 20 20 20
Booster capacity 26 33 46 27 27 27 26 25 25 25
Transit
Transit vans 7 7 7 4 4 7 9 5 5 5
Transit mini buses 21 21 21 22 22 19 17 12 10 5
2020
Source: Town of Oro Valley Finance Department
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