HomeMy WebLinkAboutPopular Annual Financial Report (PAFR) - 6/30/2015 (2)Town of Oro Valley, Arizona
POPULAR ANNUAL FINANCIAL REPORT
Fiscal Year ending June 30, 2015
OVERVIEW
We are proud to present the fourth annual Popular Annual Financial
Report (PAFR) for the Town of Oro Valley. The purpose of the PAFR is to
provide a user-friendly summary of the fi nancial position of the Town of
Oro Valley and other interesting information for citizens who want a better
understanding of the Town’s fi nances. The fi nancial information in the
PAFR is taken from the Town’s Comprehensive Annual Financial Report
(CAFR). The CAFR outlines the Town’s fi nancial position and operating
activities each fi scal year presented in conformity with generally accepted
accounting principles (GAAP) and includes fi nancial statements audited by
Heinfeld Meech & Co., P.C., Certifi ed Public Accountants. The Town received
an unqualifi ed (or clean) audit opinion, which is the best audit opinion that
the fi nancial statements could receive.
While the numbers in the PAFR come from an audited source, they are
presented in a summarized, unaudited non-GAAP format that is more
accessible to the public. Additionally, some of the information in the PAFR
is from the Town’s Annual Budget. Citizens who wish to review the audited,
GAAP-based, full disclosure fi nancial statements can refer to the Town’s
CAFR available on the Town’s website: www.orovalleyaz.gov, or contact the
Finance Department at 11000 N. La Cañada Drive, Oro Valley, AZ 85737,
phone (520) 229-4700.
INSIDE
1. Overview
2. Message from the Town
Manager
2. Oro Valley Fast Facts
3. Accomplishments &
Accolades
4. Net Position
4. Activities
5. Revenues
6. Expenses
7. Debt & Financial Ratings
8. Employee Salaries &
Benefi ts
8. Employment Statistics
Town ofTown ofTown of
ORO VALLEY
The Government Finance Offi cers Association (GFOA) of the United States
and Canada has given an Award for Outstanding Achievement in Popular
Annual Financial Reporting to the Town of Oro Valley for its Popular Annual
Financial Report for the fi scal year ended June 30, 2014. The Award for
Outstanding Achievement in Popular Annual Financial Reporting is a
prestigious national award recognizing conformance with the highest
standards for preparation of state and local government popular reports.
In order to receive this award, a government unit must publish a Popular
Annual Financial Report, whose contents conform to program standards of
creativity, presentation, understandability and reader appeal.
The award is valid for a period of one year only. We believe our current report
continues to conform to program requirements, and we are submitting it to
GFOA to determine eligibility for another award.
WELCOME from the TOWN MANAGER ORO VALLEY FAST FACTS
We are pleased to present the Town of Oro Valley
Popular Annual Financial Report (PAFR) for fi scal
year 2014/15.
The PAFR provides an easy to understand,
summarized overview of various fi nancial aspects
of the Town, including sources of revenues
and expenditures, fi nancial trends, assets and
liabilities and debt obligations. The publication
of this document represents the Town’s ongoing
commitment to transparency, accountability and
communicating the fi nancial position of the Town.
Continued economic progress and recovery have provided the Town with
the opportunity and resources to reinvest in the community following the
initiatives outlined in the Town’s Strategic Plan, which was recently updated
in 2015. In the General Fund, our main operating fund, revenues exceeded
expenditures by over $2.4 million for fi scal year 2014/15.
Fiscal year 2014/15 was an exciting and successful year for our community.
Extensive progress was made toward enhancing the community amenities
and services that we off er. A signifi cant achievement this year was the Town’s
purchase of the former El Conquistador Country Club for $1 million, which has
been converted into the Town of Oro Valley Community and Recreation Center.
A community center has been a long-desired need in our town, and we were
fortunate to be able to acquire this facility without taking on any debt burden.
Additionally, construction was completed on the multi-use fi elds and new dog
park at Naranja Park, which have been extremely popular with the local sports
teams and users in the community. Finally, the Town continues to follow sound
budget practices and approved a balanced budget for FY 2015/16, with a
projected General Fund surplus of more than $500,000.
In the coming year, work will continue towards adoption of the Town’s General
Plan update, also known as the Your Voice, Our Future project. Improvements
will continue at the Town’s Steam Pump Ranch, allowing for greater use of this
beautiful, historic property and preservation of the structures on site. Also, the
Water Utility will continue with its replacement of aging water meters town-
wide to improve water delivery effi ciency.
We hope that our 2015 Popular Annual Financial Report fulfi lls its purpose as
an understandable, informative means of providing assurance that every eff ort
is made to manage the community’s resources wisely for the benefi t of all.
Respectfully,
Greg Caton, Town Manager
INCORPORATED 1974
SERVICES Police, Parks and Recreation, Water
Utility, Stormwater Utility, Public
Transit, Development and
Infrastructure Services
FORM OF GOV’T Council/Manager
GOVERNING BODY Mayor elected at large to four-year
term; 6 councilmembers elected at
large to four-year terms
POPULATION
(2014 census estimate)
42,259
# OF HOUSEHOLDS
(2013 census data)
17,117
BACHELOR’S DEGREE
OR HIGHER AGE25+
50.9%
MEDIAN INCOME
(2013 census data)
$71,950
# OF PARKS 8
PARK ACRES
MAINTAINED
448
TRAILS AND PATHS 79 miles of bike facilities
including bike lanes and shared paths
& 55 miles of trails
2015 BUDGET $107.1 million
Town of Oro Valley, Arizona | Popular Annual Financial Report 20152
ORO VALLEY COUNCIL
Bill Garner, Councilmember
Mike Zinkin, Councilmember
Brendan Burns, Councilmember
Dr. Satish I. Hiremath, Mayor
Lou Waters, Vice Mayor
Mary Snider, Councilmember
Joe Hornat, Councilmember
HISTORY
After World War II, the Tucson area experienced dramatic
population growth. In the early 1950s, the Oro Valley
Country Club opened at the base of Pusch Ridge, and land
owners began building residential homes. As the community
continued to grow, area residents increasingly desired local
control of the land in the area. In the late 1960s, a petition
to incorporate began to circulate in Oro Valley, and Oro
Valley was successfully incorporated in 1974. What began
as a Town with only 2.4 square miles and 1200 residents has
grown into a vibrant community and tourist destination
featuring world-class amenities and outdoor attractions,
excellent schools, and
a diverse business
environment.
Greg Caton
Connect with us! Visit www.orovalleyaz.gov or download the OV
App on iTunes or Google Play.
PHOENIX
TUCSONORO VALLEY
• Oro Valley named Playful City USA 2015 (fi fth
consecutive year)
• “Your Voice, Our Future” public participation plan
(General Plan update project) received 2014 “Silver
Circle” Award in citizen participation from 3CMA and
the state award for Best Public Outreach from the
American Planning Association
• Certifi cate of Achievement for Financial Reporting
Excellence for FY 2013/14 from the Government
Finance Offi cers Association (GFOA) for the 21st
consecutive year
• Popular Annual Financial Report (PAFR) award for FY
2013/14 from the GFOA for the third consecutive year
• Distinguished Budget Presentation Award from the
GFOA for the seventh consecutive year
• Achievement of Excellence in Procurement Award
from the National Procurement Institute (NPI) for the
seventh consecutive year
• “Silver Level” Bicycle Friendly Business (BFB)
designation by the League of American Bicyclists
FY 14/15 ACCOMPLISHMENTS ACCOLADES
Completed the construction on
two new multi-sport fi elds, dog
park, parking lot and critical
infrastructure at Naranja Park
Converted the former El
Conquistador Country Club into
a municipal community and
recreation center that opened on
May 1, 2015
Citizen Volunteer Assistants
Program (CVAP) volunteers
contributed an estimated 14,878
volunteer hours for police
programs such as the residential
darkhouse program
Hosted the fi rst-ever Oro Valley
Meet Yourself folk-life festival
Partnered with the Children’s
Museum to open the fi rst-ever
satellite location in Oro Valley
Sun-Shuttle Dial-a-Ride off ered
over 31,000 hours of service and
operated over 464,000 miles
The Government Finance Offi cers Association (GFOA) of the United States
and Canada has given an Award for Outstanding Achievement in Popular
Annual Financial Reporting to the Town of Oro Valley for its Popular Annual
Financial Report for the fi scal year ended June 30, 2014. The Award for
Outstanding Achievement in Popular Annual Financial Reporting is a
prestigious national award recognizing conformance with the highest
standards for preparation of state and local government popular reports.
In order to receive this award, a government unit must publish a Popular
Annual Financial Report, whose contents conform to program standards of
creativity, presentation, understandability and reader appeal.
The award is valid for a period of one year only. We believe our current report
continues to conform to program requirements, and we are submitting it to
GFOA to determine eligibility for another award.
Town of Oro Valley, Arizona | Popular Annual Financial Report 2015 3
Hosted state-level synchronized
swimming and USA Masters
championships at the Oro Valley Aquatic
Center and introduced the “community
aquatic games”
Updated the Town’s constituent portal
and refreshed the Oro Valley Vista
newsletter to be more aesthetically
pleasing and user-friendly
Worked with the Historic Preservation
Commission to establish the fi rst “historic
writing contest” for 4th graders in Oro
Valley
The Legal Department chaired the
Best Practices Committee for Arizona
prosecutors
Adopted the 2015 Town of Oro Valley
Strategic Plan
44% of the 3 billion gallons of water
delivered were renewable water
supplies, including 596 million gallons of
Central Arizona Project (CAP) water and
719 million gallons of reclaimed water
HISTORY
After World War II, the Tucson area experienced dramatic
population growth. In the early 1950s, the Oro Valley
Country Club opened at the base of Pusch Ridge, and land
owners began building residential homes. As the community
continued to grow, area residents increasingly desired local
control of the land in the area. In the late 1960s, a petition
to incorporate began to circulate in Oro Valley, and Oro
Valley was successfully incorporated in 1974. What began
as a Town with only 2.4 square miles and 1200 residents has
grown into a vibrant community and tourist destination
featuring world-class amenities and outdoor attractions,
excellent schools, and
a diverse business
environment.
STATEMENT OF NET POSITION
Statement of Net Position for the year ended June 30, 2015
Statement of Activities for the year ended
June 30, 2015
Note: The totals below reflect both the governmental and
business-type activities of the Town
STATEMENT OF ACTIVITIES
This Statement of Net Position is presented in much more detail in the Town’s Comprehensive
Annual Financial Report. This is a very high-level summary that captures total assets and
liabilities and compares them to prior years. This may serve as a useful overall indicator of the
Town’s financial position and trends over the last two years.
The Town’s activities are presented in two categories. Governmental activities include most of
the Town’s core services, such as public safety, parks and recreation, and street maintenance.
Sales taxes, state shared revenues and grants finance most of these activities. Business-type
activities are the Water and Stormwater utilities, which are primarily financed through user
fees and charges.
Statement of Activities, often referred to as the Town’s
income statement, reflects all of the financial activity for
the Town during the fiscal year ended June 30, 2015. This
statement presents information to show how the Town’s
net position changed during the year as a result of the
financial activity (i.e., revenues and expenses). Over time,
increases or decreases in net position may serve as a
useful indicator of whether the Town’s financial position
is improving or deteriorating. Below is a summarized
version of the detailed statement of activities found in
the Town’s Comprehensive Annual Financial Report.
The beginning net position for FY 2014/15 was restated
to include net pension liability of $28.8 million in order
to incorporate the new pension reporting standard.
The Statement of Activities shows that the Town’s total
net position has improved over the restated beginning
net position. See page 8 for an explanation of the new
pension reporting standard. Recent revenue trends reflect
an increase of $1.6 million in total revenues, largely due to
an increase in the local sales tax rate from 2 percent to 2.5
percent that became effective March 1, 2015 ($850,000),
as well as an increase in year-over-year collections in
state shared revenues ($777,000). The revenues from the
sales tax increase are dedicated to funding the Town’s
new community and recreation center acquired on
May 1, 2015. Total expenses increased $5.2 million, or
10 percent, primarily due to the completion of various
capital projects such as the on-site health clinic, Aquatic
Center parking lot, purchase of a permitting computer
system module, replacement of the Town’s phone system,
funding for the Children’s Museum Oro Valley, electric
utility line undergrounding project, and completion of
Naranja Park. In addition, expenses include $1.2 million in
operations and maintenance costs for the newly-acquired
community and recreation center. Business-type activities
charges for services decreased by $3.2 million due to a
decrease of $1.2 million in water sales and a decrease of
$2.0 million in development impact fees year-over-year
due to the completion of several multi-family housing
complex construction projects.
The largest portion of the Town’s net position reflects its investment in capital assets such as
land, buildings and improvements, vehicles, machinery and equipment, and construction, less
any outstanding debt used to acquire those assets. The Town uses these capital assets to provide
services to its citizens; consequently, these assets are not available for future spending.
Current Assets and Other
Assets - Assets that one
can reasonably expect to
convert to cash, sell, or
consume within one year.
Capital Assets, Net - The
Town’s land, buildings,
equipment, improvements,
infrastructure, and
construction in progress,
net of accumulated
depreciation.
Liabilities - Payments due
to vendors and employees,
lease payments due, and
other long term debt of the
Town.
Net Position - The difference
between assets and
liabilities, of which may or
may not be available for
future spending.
Town of Oro Valley, Arizona | Popular Annual Financial Report 20154
The following are significant transactions that have had an
impact on the Statement of Net Position:
• The addition of $5.8 million in business-type activities
capital assets through improvements to the existing
water system
• The addition of $9.0 million in governmental activities
capital assets, mostly consisting of the replacement of
police vehicles, Naranja Park improvements, purchase
of the El Conquistador Country Club for use as a
community and recreation center, and pavement
preservation upgrades
• The increase of $2.8 million in business-type activities
long-term debt was due mainly to the issuance of a
$2.4 million Water Infrastructure Finance Authority
(WIFA) loan and annual debt service payments of $3.6
million
• The increase of $2.7 million in governmental activities
long-term debt was due mainly to the issuance of a
$1.0 million note payable for the purchase of the El
Conquistador Country Club for use as a community
and recreation center. This note payable will be paid
off over the next three fiscal years, with the first
payment occurring in FY 2015/16.
• The implementation of new pension reporting
standards required the reporting of net pension
liability, which increased total long-term liabilities by
$30.6 million. See page 8 for an explanation of the
new pension reporting standard.
2015 2014
Assets
Current assets and other assets $ 53,162,840 $ 53,196,207
Capital assets, net 244,900,365 241,819,498
Total assets $ 298,063,205 $ 295,015,705
Deferred outflows $ 8,192,594 $ 2,288,731
Liabilities
Current and other liabilities $ 9,521,516 $ 7,024,355
Long-term liabilities 89,136,980 59,263,213
Total liabilities $ 98,658,496 $ 66,287,568
Deferred inflows $ 4,739,885
Net Position $ 202,857,418 $ 231,016,868
2015 2014
Revenues $ 59,058,255 $ 58,781,129
Expenses 58,400,614 53,211,722
Change in net
position 657,641 5,569,407
Net position,
beginning of
year (restated)
202,199,778 225,447,461
Net position,
end of year $ 202,857,418 $ 231,016,868
What it means
REVENUES Where the money comes from
Charges for Services are revenues collected for services rendered to
the public. Water sales make up the majority of these revenues.
Sales Taxes are levied on retail sales at 2.5% (effective 3/1/2015),
utilities and construction activity at 4%, and lodging at 6%.
Franchise Taxes are negotiated fee revenues from a local cable
provider.
Unrestricted State Shared Revenues consist of the Town’s portion of
Arizona state income tax, sales tax, and vehicle license tax revenue
shared with incorporated cities, towns, and counties.
Capital Grants and Contributions are dedicated towards specific
capital expenditures and purposes, such as highways and streets.
Operating Grants and Contributions are dedicated towards specific
operating expenditures and purposes, such as employee salaries and
ongoing maintenance costs for roadways, public safety, and culture
and recreation.
Investment Earnings consist of interest income earned on the Town’s
invested funds.
Town of Oro Valley, Arizona | Popular Annual Financial Report 2015 5
Revenues by Source
Includes Governmental & Business-Type Activities
STATEMENT OF ACTIVITIES
Statement of Activities, often referred to as the Town’s
income statement, reflects all of the financial activity for
the Town during the fiscal year ended June 30, 2015. This
statement presents information to show how the Town’s
net position changed during the year as a result of the
financial activity (i.e., revenues and expenses). Over time,
increases or decreases in net position may serve as a
useful indicator of whether the Town’s financial position
is improving or deteriorating. Below is a summarized
version of the detailed statement of activities found in
the Town’s Comprehensive Annual Financial Report.
The beginning net position for FY 2014/15 was restated
to include net pension liability of $28.8 million in order
to incorporate the new pension reporting standard.
The Statement of Activities shows that the Town’s total
net position has improved over the restated beginning
net position. See page 8 for an explanation of the new
pension reporting standard. Recent revenue trends reflect
an increase of $1.6 million in total revenues, largely due to
an increase in the local sales tax rate from 2 percent to 2.5
percent that became effective March 1, 2015 ($850,000),
as well as an increase in year-over-year collections in
state shared revenues ($777,000). The revenues from the
sales tax increase are dedicated to funding the Town’s
new community and recreation center acquired on
May 1, 2015. Total expenses increased $5.2 million, or
10 percent, primarily due to the completion of various
capital projects such as the on-site health clinic, Aquatic
Center parking lot, purchase of a permitting computer
system module, replacement of the Town’s phone system,
funding for the Children’s Museum Oro Valley, electric
utility line undergrounding project, and completion of
Naranja Park. In addition, expenses include $1.2 million in
operations and maintenance costs for the newly-acquired
community and recreation center. Business-type activities
charges for services decreased by $3.2 million due to a
decrease of $1.2 million in water sales and a decrease of
$2.0 million in development impact fees year-over-year
due to the completion of several multi-family housing
complex construction projects.
The Town Council and management are focused on efforts
to maintain long-term financial health through diversified
revenue sources while strategically investing in community
initiatives. These decisions range from increasing efficiencies
to using valuable intergovernmental partnerships to
enhance and expand services. Revenues are also increasing
as the continued economic recovery results in increasing
sales taxes and state-shared revenues.
Two-Year Historical Comparison
Revenues
Governmental funds only
This chart illustrates the sources and percentages of the Town’s
revenues totaling $59.1 million for FY 2014/15. The Town’s
primary revenue sources during 2015 include charges for
services, sales taxes and state-shared revenues. Together these
three categories represented 82% of all revenue collections in FY
2014/15.
Five-Year Historical Comparison
Revenues & Expenses
Governmental funds only
What it means
Investment
Earnings
341,062
1%
Charges for
Services
22,083,346
37%
Operating Grants
& Contributions 5,070,396
9%
Capital Grants &
Contributions
4,435,764
7%
Sales Taxes
16,132,159
27%
Franchise Taxes
582,064
1%
Unrestricted
State Shared
Revenues
10,413,464
18%
33.87
2011 2012 2013 2014 2015
Revenues Expenses
$50
$40
$30
$20
$10
$-Millions39.04
37.77
37.97
37.59
39.74 39.82
38.14 40.09
43.94
2014 2015
$18
$16
$14
$12
$10
$8
$6
$4
$2
$-MillionsCharges for ServicesOperating Grants & Cont.Capital Grants & Cont.Sales TaxesFranchise TaxesState Shared RevenuesInvestment Earnings
DEBT & FINANCIAL RATINGSEXPENSESWhere the money goes
What it means
This chart illustrates the uses and percentages of the Town’s
expenses across all funds totaling $58.4 million for FY
2014/15. The majority of expenses relate to Water Utility
operations and Public Safety (Police). Over half of the Town’s
total expenses (51%) are from these two departments.
General Government expenses are incurred
by the Town’s administrative departments,
including Mayor and Town Council, Town
Manager, Town Attorney, Finance, Town Clerk,
Human Resources, Magistrate Court, and include
other non-departmental costs.
Highways and Streets expenses are related
to the design, construction, maintenance and
operation of all roadways, sidewalks and related
infrastructure within the Town.
Culture and Recreation expenses are those
incurred by the Town to enrich the quality of life
in Oro Valley through parks, recreational and
cultural activities.
Public Safety expenses are those incurred by
the Town to provide police services to the public.
Water expenses are those incurred by the Town
to provide water to the public.
Transit expenses are those related to the
operation of the Sun Shuttle Dial-a-Ride service
funded through a partnership with the Regional
Transportation Authority (RTA).
Stormwater Drainage expenses are those
related to the design, construction, maintenance
and operation of all stormwater drainage ways
within the Town.
Interest on Long-Term Debt reflects the interest
costs for long-term debt, such as bonds and
loans. This does not include any interest costs on
water-related debt.
Town of Oro Valley, Arizona | Popular Annual Financial Report 20156
Expenses by Category
Includes Governmental & Business-Type Activities
Outstanding Debt Obligations as of June 30, 2015
Two-Year Historical Comparison
Expenses
Governmental funds only
General
Government
11,533,702
20%
Public Safety
16,587,168
20%Highways & Streets
9,400,140
16%
Transit
1,404,646
2%
Culture &
Recreation
4,572,490
8%
Interest on
Long-term Debt
439,027
1%
Water
13,608,931
23%
Stormwater
Drainage
854,510
2%
2014 2015
$18
$16
$14
$12
$10
$8
$6
$4
$2
$-MillionsGeneral GovernmentPublic SafetyHighways & StreetsTransitCulture & RecreationInterest on Long-term debt
As of June 30, 2015, the Town had $54.5 million in long-term debt
outstanding with $4.7 million due within one year. The majority of the
outstanding debt relates to the Water Utility capital improvement revenue
bonds. The chart below depicts the Town’s outstanding debt for the fi scal
year ended June 30, 2015.
WIFA Utility Loans are low-interest loans from
the Water Infrastructure Finance Authority of
Arizona (WIFA). They fi nance the construction
and improvement of drinking water, wastewater,
wastewater reclamation, and other water quality
projects.
Governmental Bonds are used to fi nance long-lived
capital improvements, including land acquisition
and construction or improvement of Town facilities.
The Town’s excise taxes are pledged as repayment
of the debt.
Utility Bonds are issued to fi nance long-lived utility
capital improvements for the Town’s Water Utility.
This debt is repaid with Water Utility revenues.
Special Assessment Bonds are used to fi nance
specifi c infrastructure or improvement projects.
A district is formed and the debt is repaid with
assessments on properties within the district.
The Town currently has one outstanding special
assessment bond issue, which was used for roadway
improvements.
Standard & Poor’s (S&P) and Fitch Ratings
Services have reaffi rmed Oro Valley’s bond
rating at “AA-.“
Fitch states: “The stable outlook refl ects Fitch’s
expectation that the town will adequately
manage its growth-related needs, maintaining
reserves and coverage levels consistent with
the current rating.”
The Town continues to maintain strong investment grade ratings on its
outstanding excise tax bonds, rated “AA-“ by both Standard & Poor’s and
Fitch Ratings, and on its water revenue bonds, rated “AA” by Standard
& 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 $10.2 million, or 32% of FY
2015/16 adopted expenditures of $31.6 million.
DEBT & FINANCIAL RATINGS What it means
Town of Oro Valley, Arizona | Popular Annual Financial Report 2015 7
General Government expenses are incurred
by the Town’s administrative departments,
including Mayor and Town Council, Town
Manager, Town Attorney, Finance, Town Clerk,
Human Resources, Magistrate Court, and include
other non-departmental costs.
Highways and Streets expenses are related
to the design, construction, maintenance and
operation of all roadways, sidewalks and related
infrastructure within the Town.
Culture and Recreation expenses are those
incurred by the Town to enrich the quality of life
in Oro Valley through parks, recreational and
cultural activities.
Public Safety expenses are those incurred by
the Town to provide police services to the public.
Water expenses are those incurred by the Town
to provide water to the public.
Transit expenses are those related to the
operation of the Sun Shuttle Dial-a-Ride service
funded through a partnership with the Regional
Transportation Authority (RTA).
Stormwater Drainage expenses are those
related to the design, construction, maintenance
and operation of all stormwater drainage ways
within the Town.
Interest on Long-Term Debt refl ects the interest
costs for long-term debt, such as bonds and
loans. This does not include any interest costs on
water-related debt.
Outstanding Debt Obligations as of June 30, 2015
Five Year Historical Comparison
Total Outstanding Debt & Debt Per Capita
Standard & Poor’s (S&P) and Fitch Ratings
Services have reaffi rmed Oro Valley’s bond
What they’re saying...
Utility Loans
- WIFA
Governmental
Bonds
Utility Bonds Spcl. Asmt. Bnds,
Capital Leases,
Note Payable
$18
$16
$14
$12
$10
$8
$6
$4
$2
$-Millions2011 2012 2013 2014 2015
Total Outstanding Debt Debt Per Capita
$80
$70
$60
$50
$40
$30
$20
$10
$-
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-Outstanding DebtMillions
TOWN EMPLOYMENT STATISTICS
The Town Council and management are focused on attracting and retaining
globally-competitive high technology and bioscience employers, while also
maximizing destination opportunities for visitors. FY 2014/15 highlights
include Oro Valley’s partnership with the Children’s Museum to open the
first-ever satellite museum in Oro Valley, numerous regional and state
events hosted at the Oro Valley Aquatic Center and the expansion of LCMS
Laboratories into Oro Valley. Additionally, Oro Valley reached 150 active
businesses through its adopt-a-business program and provided a wide range
of construction assistance for residential and commercial projects, including
Copper Health, Panera Bread, La Hacienda restaurant, Breadsmith bakery, San
Dorado, El Corredor and the opening of three new residential subdivisions.
Note: Population figures and income for 2011 are based on 2010 Census data.
Other years reflect estimates provided by the Pima Association of Governments
(PAG). Population figures for 2013 have been revised by PAG to 41,539. The
chart reflects the original estimate to maintain consistency with the 2013
Comprehensive Annual Financial Report.
Town of Oro Valley, Arizona | Popular Annual Financial Report 20158
Personnel services comprised 50% of the total operating
budget for FY 2014/15. The FY 2014/15 budget included a
$1.1 million increase to implement recommendations from
a salary market study conducted in FY 2013/14, as well as
funding for employee merit and step increases. Revenues
will be re-analyzed each year to determine the affordable
and feasible level of continued pay increases.
The Town participates in three pension plans as part
of its employee benefits package. Pension benefits are
considered deferred compensation because they are not
paid out until the employee’s tenure with the Town has
concluded; nevertheless, the Town has a present obligation
to pay these benefits in the future. New guidance by
the Governmental Accounting Standards Board (GASB)
requires governments to report future net pension liability
on its financial statement for the first time starting in June
2015. This change increases the transparency, consistency
and comparability of reported pension information
across governments. Therefore, the Town’s FY 2014/15
Comprehensive Annual Financial report shows an increase
of $30.6 million in net pension liability, which includes
pension liability that was not reported in prior years and
a FY 2014/15 increase of $1.8 million. Town management
is actively managing its pension liability by looking for
opportunities to reduce the outstanding balance and save
on interest. For example, the Mayor and Council authorized
a one-time, lump sum payment of $300,000 toward
reducing the Town’s pension liability during FY 2015. In
addition, the Town will prepay its budgeted FY 2015/16
Public Safety Retirement contributions in a lump sum early
in FY 2016 instead of making bi-weekly contributions.
EMPLOYEE SALARIES & BENEFITS
Number of Full-Time Equivalent Employees
by Function
Town Demographic & Economic Statistics
Principal Employers in Oro Valley
2011 2012 2013 2014 2015
400
350
300
250
200
150
100
50
0
Water Utility Police Parks & Rec Development & Infra. Services General Govt.
Employees % of Total Town
EmploymentRoche Group's Ventana Medical
Systems 1200 7.03%
Oro Valley Hospital 672 3.94%
Town of Oro Valley 478 2.80%
Amphitheater Public Schools 449 1.97%
Hilton El Conquistador Golf & Tennis
Resort 337 2.63%
Fry's Food & Drug Store 272 1.59%
Walmart Supercenter 226 1.32%
Splendido at Rancho Vistoso 185 1.08%
Securaplane 174 1.02%
Home Depot 143 0.84%
2011 2012 2013 2014 2015
43,500
43,000
42,500
42,000
41,500
41,000
40,500
40,000
39,500
1,850
1,800
1,750
1,700
1,650
1,600
1,550
Population Personal Income Millions