HomeMy WebLinkAboutFinancial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/2024
Prepared by: Finance Department of Town of Oro Valley
David Gephart, CPA
Chief Financial Officer
Wendy Gomez, MPA
Deputy Finance Director
Aaron Van Winkle
Senior Accountant
Nancy Arvizu, CPA
Senior Accountant
Suzy Molinar
Accounting Specialist
Chris Hutchison, CPA
Senior Budget Analyst
Town of Oro Valley, Arizona
11000 N. La Cañada Drive
Oro Valley, AZ 85737
(520)229-4700
https://www.orovalleyaz.gov
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal 1
Organizational Chart 8
List of Town Officials 9
GFOA Certificate of Achievement 10
FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 12
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 15
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 33
Statement of Activities 34
Fund Financial Statements:
Balance Sheet – Governmental Funds 38
Reconciliation of the Balance Sheet – Governmental Funds
to the Statement of Net Position 41
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 42
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds to the
Statement of Activities 45
Statement of Net Position – Proprietary Funds 46
Statement of Revenues, Expenses and Changes in Net Position –
Proprietary Funds 47
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
FINANCIAL SECTION Page
BASIC FINANCIAL STATEMENTS
Statement of Cash Flows – Proprietary Funds 48
Notes to Financial Statements 49
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual:
General Fund 88
Community Center Fund 89
Grants and Contributions Fund 90
Schedule of the Proportionate Share of the Net Pension Liability – ASRS 91
Schedule of Changes in the Net Pension Liability and Related Ratios – PSPRS Police 92
Schedule of Changes in the Net Pension Liability and Related Ratios – PSPRS Dispatchers 94
Schedule of Pension Contributions – All Pension Plans 96
Notes to Required Supplementary Information 98
SUPPLEMENTARY INFORMATION
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 102
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 103
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
FINANCIAL SECTION Page
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
Capital Projects Funds:
Combining Balance Sheet 112
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 113
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 114
Debt Service Fund:
Changes in Fund Balances - Budget and Actual 120
STATISTICAL SECTION
Financial Trends:
Net Position by Component 123
Changes in Net Position 124
Fund Balances of Governmental Funds 126
Changes in Fund Balances of Governmental Funds 127
Revenue Capacity:
Principal Sales Taxpayers 128
Taxable Sales by Category 129
TOWN OF ORO VALLEY, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
STATISTICAL SECTION Page
Direct and Overlapping Sales Tax Rates 130
Net Limited and Full Cash Assessed Value of Taxable Property 131
Historical and Projected Excise Tax Collections 132
Debt Capacity:
Ratio of Outstanding Debt by Type 133
Direct and Overlapping Governmental Activities Debt 134
Legal Debt Margin Information 135
Calculation of Legal Debt Margin 136
Pledged-Revenue Coverage 137
Historical and Projected Water System Revenues, Expenses,
Debt Service and Coverage 138
Demographic and Economic Information:
Demographic and Economic Statistics 139
Principal Employers 140
Operating Information:
Full-Time Equivalent Town Employees by Function 141
Water Utility Revenues by User Type 142
Operating Indicators by Function 143
Water Rates 144
Capital Assets Statistics by Function 145
INTRODUCTORY SECTION
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December 12, 2024
Honorable Mayor, Members of Town Council and
Citizens of the Town of Oro Valley, Arizona:
State law mandates that cities publish a complete set of financial statements presented in conformity
with accounting principles generally accepted in the United States of America and audited in
accordance with auditing standards generally accepted in the United States of America by a certified
public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue
the annual comprehensive financial report of the Town of Oro Valley, Arizona (Town) for the fiscal
year ended June 30, 2024.
Management assumes full responsibility for the completeness and reliability of all information
presented in this report. To provide a reasonable basis for making these representations, management
of the Town has established a comprehensive internal control framework designed both to protect the
Town’s assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the Town’s financial statements in conformity with accounting principles generally
accepted in the United States of America. Because the cost of internal controls should not outweigh
their benefits, the Town’s comprehensive framework of internal controls has been designed to provide
reasonable, rather than absolute, assurance that the financial statements will be free of material
misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The Town’s financial statements have been audited by Baker Tilly, LLP, a certified public accounting
firm. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the Town for the fiscal year ended June 30, 2024, 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, 2024,
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.
Additionally, the Town is required to have an independent audit ("Single Audit") of federal financial
assistance received by the Town directly from federal agencies or passed through to the Town by the
State of Arizona, or other governmental entities during the fiscal year. The standards governing Single
Audit engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the government's internal controls and compliance with legal
requirements having a direct and material impact on major programs, with special emphasis on internal
controls and compliance requirements involving the administration of major federal awards.
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
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The results of the Town's Single Audit for the fiscal year ended June 30, 2024, found no material
weaknesses in the internal control structure, and no instances of significant violations of applicable
laws and regulations with respect to major programs. Additional information is available within the
separately issued Single Audit 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.
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 49,111. The population of Oro Valley has
increased 65% since the 2000 population of 29,700.
Based on current Census estimates, Oro Valley has a median household income of $101,394, compared
to the median household income for the state of Arizona of $72,581. 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 Judge. 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.
In August 2020, Oro Valley voters approved a Permanent Base Adjustment for the Town. The
Permanent Base Adjustment option permanently increases the Town’s base limit so that when the
State’s expenditure limitation formula is applied, it results in a limitation more closely matching the
Town’s annual budget. This permanent adjustment, which took effect in the fiscal year ending June
30, 2024, will save the Town the cost of future Home Rule elections and associated staff time every
four years, giving the Town permanent control over expenditures instead of using a state-calculated
formula.
The annual operating budget serves as the foundation for the Town’s financial planning and control.
The objective of these controls is to ensure compliance with legal provisions embodied in the annual
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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 from personnel reclassifications; transfers that would reduce or
eliminate funding for items designated in the adopted Capital Improvement Plan; and transfers that
would reduce or eliminate funding for debt service. All other operational budget amendments involving
transfers between line items or expenditure categories require approval by the Town Manager.
MAJOR INITIATIVES AND ACCOMPLISHMENTS FOR THE YEAR
The Council adopted Strategic Plan for FY 23-24 through 24-25 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 Plan provides organizational direction in seven focus areas:
• Economic Vitality
• Culture and Recreation
• Public Safety
• Roads, Water and Town Assets
• Land Use and Design
• Effective and Efficient Government
• Financial Stability and Sustainability
While the Strategic Plan guides short-term decision-making, the General Plan provides a longer term
(up to 10 years) direction regarding the growth, development, and redevelopment of the community.
Oro Valley is a community defined by the highest standard of environmental integrity, education,
infrastructure, services, and public safety. It is a community of people working together to create the
Town’s future with a government that is responsive to residents and ensures the long-term financial
stability of the Town. Shown below are some of the Town’s accomplishments during FY 2023-24.
• Recognized as a “Triple Crown Winner” by the Government Finance Officers Association for
receiving the Certificate of Achievement for Excellence in Financial Reporting Award (30th
consecutive year), the Distinguished Budget Presentation Award (16th consecutive year) and the
Popular Annual Financial Reporting Award (12th consecutive year)
• Ended FY 23-24 with a $22.1 million fund balance in the General Fund, exceeding budget
expectations by $8.0 million
• Revised and updated comprehensive Town Financial and Budgetary Policies
• Received an unmodified “clean” audit opinion for the Town’s annual financial statements
• Completed work on the $25 million (including premium) bond-funded parks and recreation
amenities and improvements, including Naranja Park improvements, Community Center and
golf course irrigation improvements
• Celebrated the Town of Oro Valley’s 50th anniversary with numerous community events
• Completed a community survey as part of Oro Valley Path Forward, the community’s next 10-
year General Plan update
• Oro Valley ranked second safest city in Arizona by Safewise.com
• Continued construction on the partnered and independent portions of the Water Utility’s
Northwest Recharge, Recovery and Delivery System (NWRRDS) project to reduce groundwater
pumping and increase delivery of Central Arizona Project water to the Town by up to 150%
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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 in which the Town operates.
Local sales tax revenue exceeded budget expectations by 4% in FY 23-24, while state shared revenues
came in at 98.9% of budget. The Town continues to provide services and programs without a property
tax to fund operations and, therefore, is dependent upon local sales tax and state shared revenues as
major sources of revenue for its operating and capital expenditures. These sources accounted for
approximately 84% of total General Fund revenue for FY 23-24.
Total local sales tax collections totaled $30.5 million for FY 23-24, which represents a $0.4 million, or
1.2% increase from last fiscal year. Major local sales tax categories experiencing year-over-year
changes compared to amounts collected in FY 2022-23 are as discussed below:
• Utility tax collections totaled $4.0 million for FY 23-24, up 8.3%, or more than $0.3 million
over last fiscal year
• Retail tax collections totaled $11.6 million for FY 23-24, up 1.7%, or nearly $0.2 million over
last fiscal year
• Restaurant and bar tax collections totaled $3.4 million for the fiscal year, roughly flat
compared to last fiscal year
• Construction sales tax collections totaled $5.5 million for the fiscal year, roughly flat
compared to last fiscal year
The chart below is a look at the past five years’ local sales tax activity by category:
In FY 23-24, the Town received $22.5 million for state shared revenues in the General Fund, up
21.1%, or $3.9 million over last fiscal year. This was due primarily to an increase in the percentage of
state income tax collections distributed to incorporated cities and towns. This increase will be offset
with upcoming statutory reductions and a rate cap on state income tax growth. The trend chart on the
following page depicts the performance of both of these revenue categories since FY 14-15 through FY
24-25 budget projections:
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Critical to success in this area is the preparation of realistic growth assumptions helping guide Town
revenue projections. Despite inflation and interest rate increases that occurred over the past couple of
years, there continues to be economic growth and activity in Oro Valley, the Tucson metropolitan region
and statewide. Arizona continues to do well in national economic rankings and remains one of the
fastest-growing states in both population and personal income. With Oro Valley’s proximity to the
Tucson metro region, it is likely that the Town’s local economy will continue to benefit from housing
sales, retail and tourism growth, and overall household and personal income growth.
Future population and economic growth of the Town depends largely on continued available land for
development. Therefore, strategic annexation efforts and discussions are ongoing as a means to address
the potential for future buildout within existing Town boundaries. While strong state population and
economic growth continues to increase shared revenues, legislative changes made at the state level
have a far greater potential for impacts to this significant revenue source for the Town. Statutory
income tax rate reductions and a cap of 2.5% are forecast to limit growth in shared income tax revenues
to about 2% per year in future years. For FY 24-25, General Fund state shared revenues are expected
to decrease nearly 11%, or $2.4 million.
In the near term, projected commercial and residential development should be steady over the next two to
three-year period. Residential activity has returned to a more normal historical pattern, after a 15-plus
year high in FY 20-21. In FY 23-24, the Town estimated that 119 single family residential (SFR)
building permits would be issued; a total of 178 were issued by year-end. The FY 24-25 budget
conservatively assumes 95 SFR permits will be issued during the year.
The chart on the following page 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 14-15 through FY 24-25 budget projections:
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Future Focus
During FY 2024-25, 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. This is especially important given the expected declines in state shared revenues. The
Town continues to dedicate one-time revenues to funding one-time expenditures in the budget,
specifically for capital improvement projects, while ensuring sufficient recurring revenues exist to fund
recurring expenditures. With the current growth and activity expectations in future years, it will be
imperative to continue to analyze the budget in this manner to avoid future reliance on one-time
revenues to fund recurring costs.
For FY 24-25, the Town will focus its efforts on supporting elements of the Town Council adopted
Strategic Plan all while navigating any potential economic fluctuations that may occur.
These strategies will be fulfilled in a number of ways as highlighted below:
• Protect and prioritize aging infrastructure with the following capital projects budgeted for FY
24-25:
• More than $6.2 million for roadways and related infrastructure and equipment,
including $3.2 million for the Pavement Preservation Program in the Highway Fund,
an increase of $700,000 over FY 23-24
• $23.5 million to continue progress towards the regional NWRRDS project to increase
utilization of Central Arizona Project water allocations in the future
• $2.8 million for Town-wide vehicle replacements, including $1.2 million to fully fund
the Police Department’s necessary vehicle replacements
• $3.0 million to complete a safety and efficiency expansion and improvement of the
Town’s Court building
• Continue the Town’s commitment towards fully funding the Public Safety Pension Retirement
System with nearly $1.5 million in additional contributions budgeted for FY 24-25
• Prioritize financial stability by evaluating current costs and revenue sources, to control
expenditures and explore new opportunities for diversification of General Fund resources
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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 $22.1 million, or 43% of FY 24-25 adopted expenditures of $51.8 million.
This is well above the Council-adopted policy threshold of 30% of expenditures.
AWARDS AND ACKNOWLEDGMENTS
Award. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Oro Valley
for its annual comprehensive financial report for the year ended June 30, 2023. This was the thirtieth
consecutive year that the Town has achieved this prestigious award. In order to be awarded a Certificate
of Achievement, a government must publish an easily readable and efficiently organized annual
comprehensive financial report. This report must satisfy both generally accepted accounting principles
and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report continues to meet the Certificate of Achievement Program’s
requirements and are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments. The preparation of this Annual Comprehensive Financial Report could not have
been accomplished without the efficient and dedicated services of the entire staff of the Finance
Department who assisted in and contributed to its preparation. We thank the Mayor and members of
the Town Council for their interest and support in planning and conducting the financial affairs of the
Town in a responsible and efficient manner.
Respectfully submitted,
Jeff Wilkins David Gephart
Town Manager Chief Financial Officer
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Organizational Chart
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TOWN OF ORO VALLEY, ARIZONA
LIST OF TOWN OFFICIALS
ELECTED OFFICIALS
Mayor Mr. Joe Winfield
Vice-Mayor Ms. Melanie Barrett
Council Member Mr. Timothy Bohen Term expired November 6, 2024
Council Member Dr. Harry “Mo” Greene
Council Member Ms. Joyce Jones-Ivey
Council Member Mr. Josh Nicolson
Council Member Mr. Steve Solomon Term expired November 6, 2024
TOWN MANAGEMENT
Town Manager Jeff Wilkins
Deputy Town Manager Chris Cornelison
Chief Financial Officer David Gephart
Human Resources Director Andrew Votava
Town Clerk Michael Standish
Judge James Hazel
Legal Services Director Tobin Sidles
Water Utility Director Peter Abraham
Chief of Police Kara Riley
Public Works Director/Town
Engineer
Paul Keesler
Community and Economic
Development Director
Paul Melcher
Parks and Recreation Director Rosalyn Epting
Information Technology Director Scott Zufelt
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FINANCIAL SECTION
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Independent Auditors' Report
To the Town Council of
Town of Oro Valley
Report on the Audit of the Financial Statements
Other Matter
Compliance Over Use of Highway User Revenue Fund and Other Dedicated State Transportation
Revenue Monies
In connection with our audit, nothing came to our attention that caused us to believe that the Town failed to use
highway user revenue fund monies received by the Town pursuant to Arizona Revised Statues Title 28,
Chapter 18, Article 2, and any other dedicated state transportation revenues received by the Town solely for
the authorized transportation purposes, insofar as they relate to accounting matters. However, our audit was
not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed
additional procedures, other matters may have come to our attention regarding the Town noncompliance with
the use of highway user revenue fund monies and other dedicated state transportation revenues, insofar as
they relate to accounting matters.
The communication related to compliance over the use of Highway User Revenue Fund and other dedicated
State transportation revenue monies in the preceding paragraph is intended solely for the information and use
of the members of the Arizona State Legislature, (the Arizona Auditor General,) the Town’s Council and
management, and other responsible parties within the Town and is not intended to be and should not be used
by anyone other than these specified parties.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America; and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Town's ability to continue as a going
concern for twelve months beyond the financial statement date, including any currently known information that
may raise substantial doubt shortly thereafter.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, are members of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are not licensed CPA firms.
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In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit 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 Town's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the Town's ability to continue as a going concern for a reasonable period
of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings and certain internal control-related matters that
we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required
supplementary information, as listed in the table of contents and Management's Discussion and Analysis, be
presented to supplement the basic financial statements. Such information is the responsibility of management
and, 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.
Supplementary 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 supplementary information such as the combining and
individual fund financial statements,as listed in the table of contents is presented for purposes of additional
analysis and is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. The 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
supplementary information is fairly stated in all material respects, in relation to the basic financial statements as
a whole.
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Other Information
Management is responsible for the other information included in the annual comprehensive financial
report. The other information comprises the introductory section and statistical sections but does not
include the basic financial statements and our auditors' report thereon. Our opinions on the basic
financial statements do not cover the other information, and we do not express an opinion or any
form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December
12, 2024 on our consideration of the Town'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'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's internal control over financial reporting and compliance.
Tempe, Arizona
December 12,
2024
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MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
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, 2024. The management’s discussion and analysis is presented as required supplementary information to supplement the basic financial statements. We encourage readers to consider the information presented here in conjunction with additional information that
we have furnished in our letter of transmittal, which can be found in the introductory section of this report.
FINANCIAL HIGHLIGHTS
The financial statements, which follow the Management’s Discussion and Analysis, provide key financial highlights for fiscal year ending June 30, 2024 as follows.
• The Town’s total net position of governmental activities increased $6.9 million to $217.0 million
and business-type activities increased $6.8 million to $128.5 million, representing 63 percent and
37 percent respectively, of the total net position of $345.5 million.
• General revenues from governmental activities accounted for $55.6 million in revenue, or 69
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 $24.7 million or 31
percent of total current fiscal year governmental activities revenues. The Town had $25.3 million
of program revenues and $768,723 in general revenues related to business-type activities.
• The Town had $72.9 million in expenses related to governmental activities, an increase of 7.4
percent from the prior fiscal year. This increase is attributable to general government and public
safety expenses, as well as culture and recreation. The Town had $19.8 million in expenses related
to business-type activities, an increase of 5.0 percent from the prior fiscal year.
• Among major funds, the General Fund had $59.1 million in revenues, which primarily consisted
of sales taxes and intergovernmental revenues. The total expenditures of the General Fund were
$50.2 million. The General Fund’s fund balance decreased from $23.8 million to $22.1 million.
• The Community Center Fund had $11.5 million in revenues, which consisted primarily of charges
for services and sales taxes. The total expenditures of the Community Center Fund were $9.0
million.
• The General Government CIP Fund had $2.0 million in revenues consisting primarily of other
revenues and interest income. The total expenditures of the General Government CIP Fund were
$18.6 million.
• The Grants and Contributions Fund had $2.2 million in revenues consisting primarily of
intergovernmental revenue. The total expenditures of the Grants and Contributions Fund were $2.2
million.
• The Municipal Debt Service Fund had $187,158 in revenues consisting primarily of interest income
and other revenues. The total expenditures of the Municipal Debt Service Fund were $4.0 million.
• The Water Fund had operating revenues of $19.6 million, exceeding operating expenses of $17.9
million.
18
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business. The accrual basis of accounting is used for the government-wide financial statements.
The statement of net position presents information on all Town assets liabilities, and deferred
inflows/outflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the
Town is improving or deteriorating.
The statement of activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).
In the government-wide financial statements the Town’s activities are presented in the following
categories:
• Governmental activities – Most of the Town’s basic services are included here, such as
general government, public safety, highways and streets, transit, and culture and recreation.
Sales taxes, intergovernmental, and charges for services finance most of these activities.
• Business-type activities – The services provided by the Town included here are water and
stormwater utilities. The services are primarily financed through user fees and charges.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements use the modified accrual basis of accounting and focus on near-term inflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating the Town’s near-term financing
requirements.
19
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
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 decisions. 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, Grants and Contributions, General Government CIP, and
Municipal Debt Service 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 Funds as required
supplementary information. Schedules for the pension plans have also 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 $345.5 million as of the current fiscal year end.
The largest portion of the Town’s net position reflects its investment in capital assets (e.g., land, water rights, buildings and improvements, improvements other than buildings, infrastructure, vehicles, machinery and equipment and construction in progress), less any related outstanding debt
used to acquire those assets.
20
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
The Town uses these capital assets to provide services to its citizens; consequently, these assets are
not available for future spending. Although the Town’s investment in its capital assets is reported net of related outstanding debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities. In addition, a portion of the Town’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance is unrestricted and may be used to meet the Town's ongoing obligations to its citizens and creditors.
The following table presents a summary of the Town’s net position for the fiscal years ended June
30, 2024, and June 30, 2023.
2024 2023 2024 2023 2024 Total 2023 Total
Current and other assets 57,840,473$ 67,802,234$ 25,915,922$ 34,237,373$ 83,756,395$ 102,039,607$
Capital assets, net 225,923,637 211,255,182 125,099,990 113,572,975 351,023,627 324,828,157
Total assets 283,764,110 279,057,416 151,015,912 147,810,348 434,780,022 426,867,764
Deferred outflows of resources 14,573,869 11,851,971 579,010 834,338 15,152,879 12,686,309
Current and other liabilities 7,503,307 8,861,914 3,568,300 3,994,011 11,071,607 12,855,925
Noncurrent liabilities 70,868,217 69,510,520 19,390,764 22,849,371 90,258,981 92,359,891
Total liabilities 78,371,524 78,372,434 22,959,064 26,843,382 101,330,588 105,215,816
Deferred inflows of resources 3,008,706 2,445,306 142,315 133,851 3,151,021 2,579,157
Net position
Net investment in capital assets 195,184,523 181,274,918 110,254,720 95,456,678 305,439,243 276,731,596
Restricted 4,502,647 15,579,039 14,427,924 - 18,930,571 15,579,039
Unrestricted 17,270,579 13,237,690 3,810,899 26,210,775 21,081,478 39,448,465
Total net position 216,957,749$ 210,091,647$ 128,493,543$ 121,667,453$ 345,451,292$ 331,759,100$
Governmental Activities Business-type Activities
At the end of the current fiscal year the Town reported positive balances in all categories of net position.
The Town’s financial position is the product of several financial transactions including the net results
of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following are significant current year transactions impacting the Statement of Net position.
• The addition of $25.6 million and $15.3 million in capital assets (net of dispositions) for
governmental and business-type activities, respectively, attributable to parks and recreation
improvements, roadway improvements, and construction in progress for the Water Utility.
• Current assets decreased $10.0 million and $8.6 million for governmental activities and
business-type activities, respectively, due to planned cash outlays for capital investment
and spending of remaining parks and recreation bond proceeds.
• The addition of $10.9 million and $3.7 million for governmental activities and business-
type activities, respectively, in accumulated depreciation due to depreciation expense.
• Long-term debt decreased $1.7 million and $3.4 million for governmental activities and
business-type activities, respectively, due to debt payments made during 2024.
21
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
Changes in net position. The Town’s total revenues for the current fiscal year were $106.4 million.
The total cost of all programs and services was $92.7 million. The following table presents a
summary of the changes in net position for the fiscal years ended June 30, 2024 and June 30, 2023.
2024 2023 2024 2023 2024 Total 2023 Total
Revenues
Program revenues
Charges for services 13,953,799$ 13,102,775$ 21,071,883$ 19,176,588$ 35,025,682$ 32,279,363$
Operating grants and contributions 3,237,521 4,533,920 - - 3,237,521 4,533,920
Capital grants and contributions 7,512,562 9,258,047 4,257,006 3,964,061 11,769,568 13,222,108
General revenues
Sales taxes 30,522,235 30,163,507 - - 30,522,235 30,163,507
Franchise taxes 715,334 763,311 - - 715,334 763,311
Unrestricted state shared revenues 22,500,362 18,581,727 - - 22,500,362 18,581,727
Miscellaneous 92,569 - 18,481 11,000 111,050 11,000
Investment earnings
Interest 2,009,088 1,257,044 854,325 291,272 2,863,413 1,548,316
Net increase/(decrease) in fair value (218,561) 132,918 (104,083) 145,125 (322,644) 278,043
Total revenues 80,324,909 77,793,249 26,097,612 23,588,046 106,422,521 101,381,295
Expenses
General government 22,885,243 21,233,771 - - 22,885,243 21,233,771
Public safety 21,516,996 20,002,641 - - 21,516,996 20,002,641
Highways and streets 12,407,093 12,041,757 - - 12,407,093 12,041,757
Transit 1,691,450 1,520,300 - - 1,691,450 1,520,300
Culture and recreation 13,167,591 11,839,715 - - 13,167,591 11,839,715
Interest on long-term debt 1,270,041 1,291,181 - - 1,270,041 1,291,181
Water - - 18,305,199 17,438,890 18,305,199 17,438,890
Stormwater - - 1,486,716 1,409,674 1,486,716 1,409,674
Total expenses 72,938,414 67,929,364 19,791,915 18,848,564 92,730,329 86,777,928
Excess/(Deficiency) before transfers 7,386,495 9,863,885 6,305,697 4,739,482 13,692,192 14,603,367
Transfers (520,393) (1,848,196) 520,393 1,848,196 - -
Change in net position 6,866,102 8,015,689 6,826,090 6,587,678 13,692,192 14,603,367
Beginning net position 210,091,647 202,075,958 121,667,453 115,079,775 331,759,100 317,155,733
Ending net position 216,957,749$ 210,091,647$ 128,493,543$ 121,667,453$ 345,451,292$ 331,759,100$
Governmental Activities Business-type Activities
The following are significant current year transactions that have had an impact on the change in net
position.
• Total expenses increased $6.0 million, or 6.9 percent. Personnel costs increased as a result
of step and merit increases. Other operating costs increased primarily as a result of rising
costs for software subscriptions, repair and maintenance for buildings and equipment,
insurance, utilities, and telecommunications.
• Total revenues increased $5.0 million, or 5.0 percent, due primarily to state shared revenues,
charges for services, and investment earnings.
22
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
Governmental and Business-type activities. The following table presents the cost of the Town’s
major functional activities. The table also shows each function’s net cost (total cost less charges for
services generated by the activities and intergovernmental aid provided for specific programs). The
net cost shows the financial burden that was placed on the Town’s taxpayers by each of these
functions.
Total Net (Expense)Total Net (Expense)
Expenses Revenue Expenses Revenue
General government 22,885,243$ (15,020,148)$ 21,233,771$ (9,557,895)$
Public safety 21,516,996 (20,329,469) 20,002,641 (18,567,023)
Highways and streets 12,407,093 (7,794,639) 12,041,757 (7,054,237)
Transit 1,691,450 748,599 1,520,300 257,949
Culture and recreation 13,167,591 (4,568,832) 11,839,715 (4,822,235)
Interest on long-term debt 1,270,041 (1,270,041) 1,291,181 (1,291,181)
Total 72,938,414$ (48,234,532)$ 67,929,364$ (41,034,622)$
Water 18,305,199$ 5,502,452$ 17,438,890$ 4,227,629$
Stormwater drainage 1,486,716 34,522 1,409,674 64,456
Total 19,791,915$ 5,536,974$ 18,848,564$ 4,292,085$
Business-type Activities
Governmental Activities
June 30, 2024 June 30, 2023
• The cost of all governmental activities this year was $72.9 million. The increase of $5.0
million from the prior year was due to personnel and other operating cost increases as noted
previously.
• The cost of all business-type activities this year was $19.8 million. The increase of nearly
$1.0 million from the prior year was primarily due to increases 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
$50.0 million.
• Net cost of governmental activities of $48.2 million was financed by general revenues,
which are made up of primarily sales taxes and state shared revenues totaling $53.0 million.
23
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
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 $44.9
million, a decrease of $9.7 million. This was primarily due to planned capital spending of bond
funds and one-time revenues.
The General Fund comprises 49.1 percent of the total governmental fund balance. Approximately
$6.3 million, or 28.7 percent of the General’s Fund ending fund balance is unassigned. The General
Fund is the principal operating fund of the Town. The decrease in fund balance of $1.7 million to
$22.1 million as of fiscal year end was the result of planned transfers for capital spending of one-
time revenues. As a whole, General Fund revenues increased approximately $2.2 million. General
Fund expenditures increased $1.7 million, due to increased operating costs.
The Community Center Fund’s ending fund balance increased from $1.0 million to $1.8 million,
due to charges for services revenue.
The General Government CIP Fund’s ending fund balance decreased from $24.6 million to $16.7
due to planned capital spending.
The negative ending fund balance in the Grants and Contributions Fund is due to pending grant
reimbursements for capital outlay.
The Municipal Debt Service Fund’s ending fund balance increased from $273,718 to $326,002 due
to increases in investment income.
Proprietary funds. Net position of the Enterprise Funds at the end of the year amounted to $128.5
million. This increased by $6.8 million during the fiscal year due to development fees, capital
contributions of water systems, and transfers of American Rescue Plan Act funds for water capital
projects.
Net position of the Internal Service Fund at the end of the year amounted to $3.4 million. This
increased by $508,140 during the fiscal year due to premiums exceeding claim settlement costs.
24
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
BUDGETARY HIGHLIGHTS
The Town’s annual adopted budget established the legal level of expenditure control. Budgetary
comparison statements are required for the General Fund and all major special revenue funds and
are reported as Required Supplementary Information. These statements compare the original
budget, the budget as amended throughout the year, and the actual revenues and expenditures.
Budgetary schedules for the other governmental funds are also presented in this report as Other
Supplementary Information.
Amendments to the Town of Oro Valley’s fiscal year 2023-24 operating and capital budget may
occur throughout the year between departments, and between funds in all other funds in a legally
permissible manner. Budget adjustments in the General Fund did occur. Budget amendments
moved $489,705 and $105,100, respectively, to the General Government CIP Fund for a Council-
approved capital project and to General Administration to fund the Town of Oro Valley’s 50th
anniversary celebration. Another budget amendment in the General Fund moved capacity among
departments due to shifts in personnel that occurred during the fiscal year.
Significant General Fund budget variances are summarized as follows:
• The favorable variance of $1.6 million in revenues was primarily attributable to increased
sales taxes, interest income and permit fees.
• The favorable expenditure variance of $4.8 million was mainly attributable to budgeted
contingency that was not utilized.
• The unfavorable variance in capital outlay was attributable to accounting principles for
subscription-based information technology arrangements. This unfavorable variance was
offset with other financing sources.
25
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. At year end, the Town had invested $351.0 million in capital assets (net of
accumulated depreciation), including buildings, facilities, vehicles, computers, equipment, and
infrastructure assets. This amount represents a net increase of $26.2 million from last year. This
was primarily due to buildings and improvements.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2024 and
June 30, 2023.
Increase/
2024 2023 (Decrease)
Land 36,289,821$ 36,289,821$ -$
Infrastructure 251,101,285 245,923,586 5,177,699
Buildings and Improvements 87,890,040 57,711,490 30,178,550
Machinery, equipment, and vehicles 22,809,672 21,529,780 1,279,892
Right of use asset 3,281,900 1,647,382 1,634,518
Construction in progress 2,106,956 14,779,568 (12,672,612)
Accumulated depreciation/amortization (177,556,037) (166,626,445) (10,929,592)
Net capital assets 225,923,637$ 211,255,182$ 14,668,455$
Increase/
2024 2023 (Decrease)
Land 2,410,660$ 2,410,660$ -$
Water rights 8,534,490 8,534,490 -
Water system 152,125,390 148,484,849 3,640,541
Stormwater system 4,196,312 4,158,612 37,700
Machinery, equipment, and vehicles 7,052,460 6,722,379 330,081
Construction in progress 22,968,118 11,709,344 11,258,774
Accumulated depreciation (72,187,440) (68,447,359) (3,740,081)
Net capital assets 125,099,990$ 113,572,975$ 11,527,015$
Business-type
Activities
Governmental
Activities
The estimated cost to complete current construction projects is $38.3 million. Additional
information on the Town’s capital assets can be found in Note 6.
26
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
Debt Administration. At year end, the Town had $58.1 million in long-term debt outstanding
with $6.6 million due within one year. Long-term debt decreased by $5.1 million due to $6.3
million in maturities and redemptions, offset with subscription liabilities.
The following table presents a summary of the Town’s outstanding long- term debt for the fiscal
years ended June 30, 2024 and June 30, 2023.
Increase/
2024 2023 (Decrease)
Revenue bonds 40,789,128$ 43,457,370$ (2,668,242)$
Leases 597,242 827,109 (229,867)
Financed purchases 49,723 69,254 (19,531)
Subscription liabilities 1,678,826 466,860 1,211,966
43,114,919$ 44,820,593$ (1,705,674)$
Increase/
2024 2023 (Decrease)
Revenue bonds 13,184,870$ 16,231,628$ (3,046,758)$
Loans payable 1,761,630 2,087,126 (325,496)
14,946,500$ 18,318,754$ (3,372,254)$
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 $241.9 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 $72.6 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 12.
27
TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2024
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 2024-25 budget. Among them:
• The unemployment rate for the Town of Oro Valley is currently 3.4 percent. Both Pima
County’s and the State of Arizona’s unemployment rates are 3.5 percent.
• The Town’s net full cash assessed valuation for the current year is $1,209,485,802.
• Single family residential (SFR) building permits issued in this fiscal year totaled 178, as
compared to 119 SFR building permits issued last fiscal year. Projections for SFR building
permits are 95 for fiscal year 2024-25.
The adopted combined operating and capital expenditure budget for fiscal year 2024-25 totals
$150.8 million, an increase of $2.3 million, or 1.6 percent over last year’s budget of $148.5 million.
This increase is primarily due to planned capital projects, as well as increases in personnel and
operations and maintenance costs. The budget for fiscal year 2024-25 continues to place emphasis
on achieving the goals identified in the Town’s adopted Strategic Plan, and includes the following
focus areas: economic vitality, culture and recreation, public safety, roads water and Town assets,
land use and design, effective and efficient government, and financial stability and sustainability.
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.
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29
BASIC FINANCIAL STATEMENTS
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31
GOVERNMENT-WIDE FINANCIAL STATEMENTS
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33
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2024
ASSETS
Current assets:
Cash and investments $47,430,728 $22,888,824 $70,319,552
Taxes receivable 3,971,733 - 3,971,733
Accounts receivable 789,553 2,336,047 3,125,600
Interest receivable 298,015 197,218 495,233
Intergovernmental receivable 2,191,927 - 2,191,927
Lease receivable 2,101,627 2,101,627
Inventories 146,375 - 146,375
Prepaid items 910,515 493,833 1,404,348
Total current assets 57,840,473 25,915,922 83,756,395
Noncurrent assets:
Capital assets, non-depreciable/amortized 38,396,777 33,913,268 72,310,045
Capital assets, depreciable/amortized (net)187,526,860 91,186,722 278,713,582
Total noncurrent assets 225,923,637 125,099,990 351,023,627
Total Assets 283,764,110 151,015,912 434,780,022
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding - 101,230 101,230
Pension plan items 14,573,869 477,780 15,051,649
Total Deferred Outflows of Resources 14,573,869 579,010 15,152,879
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 2,739,891 1,455,638 4,195,529
Accrued wages and benefits 1,292,116 176,023 1,468,139
Intergovernmental payable 119,409 809,071 928,480
Interest payable - 173,386 173,386
Unearned revenue 2,114,481 273,182 2,387,663
Claims payable 322,952 - 322,952
Customer deposits payable 626,512 681,000 1,307,512
Other accrued liabilities 287,946 - 287,946
Total current liabilities 7,503,307 3,568,300 11,071,607
Noncurrent liabilities:
Due within one year 5,742,650 3,447,571 9,190,221
Due in more than one year 65,125,567 15,943,193 81,068,760
Total noncurrent liabilities 70,868,217 19,390,764 90,258,981
Total Liabilities 78,371,524 22,959,064 101,330,588
DEFERRED INFLOWS OF RESOURCES
Leases 2,023,742 - 2,023,742
Pension plan items 984,964 142,315 1,127,279
Total Deferred Inflows of Resources 3,008,706 142,315 3,151,021
NET POSITION
Net investment in capital assets 195,184,523 110,254,720 305,439,243
Restricted for:
Capital projects 3,239,535 14,427,924 17,667,459
Debt service 326,002 - 326,002
Public safety 331,063 - 331,063
Highway and streets 606,047 - 606,047
Unrestricted 17,270,579 3,810,899 21,081,478
Total Net Position $216,957,749 $128,493,543 $345,451,292
Business-type
Activities
Governmental
Activities Total
The notes to the basic financial statements are an integral part of this statement.
34
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2024
Functions/Programs
Primary Government
Governmental activities:
General government $22,885,243 $4,714,761 $64,827 $3,085,506
Public safety 21,516,996 290,374 897,152 -
Highway and streets 12,407,093 369,376 321,463 3,921,615
Transit 1,691,450 - 1,934,608 505,441
Culture and recreation 13,167,591 8,579,288 19,471 -
Interest on long-term debt 1,270,041 - - -
Total governmental activities 72,938,414 13,953,799 3,237,521 7,512,562
Business-type activities:
Water 18,305,199 19,550,645 - 4,257,006
Stormwater 1,486,716 1,521,238 - -
Total business-type activities 19,791,915 21,071,883 - 4,257,006
Total Primary Government $92,730,329 $35,025,682 $3,237,521 $11,769,568
General revenues:
Taxes:
Sales taxes
Franchise taxes
Unrestricted state shared revenues
Investment income:
Interest
Net increase in fair value of investments
Miscellaneous
Transfers
Total general revenues and transfers
Changes in net position
Net position, beginning of year
Net position, end of year
Program Revenues
Contributions
Grants and
Capital
Expenses Services
Charges for
Operating
Grants and
Contributions
The notes to the basic financial statements are an integral part of this statement
35
$(15,020,148) $- $(15,020,148)
(20,329,469) - (20,329,469)
(7,794,639) - (7,794,639)
748,599 - 748,599
(4,568,832) - (4,568,832)
(1,270,041) - (1,270,041)
(48,234,532) - (48,234,532)
- 5,502,452 5,502,452
- 34,522 34,522
- 5,536,974 5,536,974
$(48,234,532) $5,536,974 $(42,697,558)
30,522,235 - 30,522,235
715,334 - 715,334
22,500,362 - 22,500,362
2,009,088 854,325 2,863,413
(218,561) (104,083) (322,644)
92,569 18,481 111,050
(520,393) 520,393 -
55,100,634 1,289,116 56,389,750
6,866,102 6,826,090 13,692,192
210,091,647 121,667,453 331,759,100
$216,957,749 $128,493,543 $345,451,292
Totals
Net (Expense)
Revenue and
Changes in
Net Position
Net (Expense) Revenue and
Changes in Net Position
Activities
Governmental
Activities
Business-type
36
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37
FUND FINANCIAL STATEMENTS
38
TOWN OF ORO VALLEY, ARIZONA
BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2024
Community
ASSETS
Cash and investments $20,028,263 $1,848,985 $17,359,593
Taxes receivable 3,673,621 298,112 -
Accounts receivable 565,562 219,834 4,157
Interest receivable 156,735 12,381 55,301
Intergovernmental receivable 387,686 - 1,000,000
Lease receivable 1,459,768 346,637 -
Inventories - 146,375 -
Prepaid items 686,393 35,162 188,960
Total Assets $26,958,028 $2,907,486 $18,608,011
LIABILITIES
Accounts payable $1,037,946 $461,345 $930,281
Accrued payroll and related benefits 1,292,116 - -
Intergovernmental payable 119,409 - -
Unearned revenue 381,969 18,650 1,000,000
Customer deposits payable 626,512 - -
Other accrued liabilities - 287,946 -
Total Liabilities 3,457,952 767,941 1,930,281
DEFERRED INFLOWS OF RESOURCES
Lease related 1,418,573 324,428 -
FUND BALANCES
Nonspendable 686,393 181,537 188,960
Restricted - - -
Committed 15,051,151 1,633,580 -
Assigned - - 16,488,770
Unassigned 6,343,959 - -
Total Fund Balances 22,081,503 1,815,117 16,677,730
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $26,958,028 $2,907,486 $18,608,011
General
General Center Government CIP
The notes to the basic financial statements are an integral part of this statement.
39
$126,056 $325,026 $3,867,616 $43,555,539
- - - 3,971,733
- - - 789,553
16,396 976 38,117 279,906
378,255 - 425,986 2,191,927
- - 295,222 2,101,627
- - - 146,375
- - - 910,515
$520,707 $326,002 $4,626,941 $53,947,175
$- $- $143,978 $2,573,550
- - - 1,292,116
- - - 119,409
706,262 - 7,600 2,114,481
- - - 626,512
- - - 287,946
706,262 - 151,578 7,014,014
- - 280,741 2,023,742
- - - 1,056,890
- 326,002 4,176,645 4,502,647
- - 17,977 16,702,708
- - - 16,488,770
(185,555) - - 6,158,404
(185,555) 326,002 4,194,622 44,909,419
$520,707 $326,002 $4,626,941 $53,947,175
Total
Funds
Non-Major
Municipal Governmental GovernmentalGrants and
Debt Service FundsContributions
40
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41
TOWN OF ORO VALLEY, ARIZONA
RECONCILIATION OF THE BALANCE SHEET – GOVERNMENTAL FUNDS TO THE STATEMENT OF
NET POSITION
JUNE 30, 2024
Governmental Fund Balances $44,909,419
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 403,479,674
Less accumulated depreciation/amortization (177,556,037) 225,923,637
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 14,573,869
Deferred inflows of resources related to pensions (984,964) 13,588,905
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.3,404,005
Long-term liabilities are not due and payable in the current
period and, therefore, are not reported in the funds.
Compensated absences payable (2,644,700)
Revenue bonds payable (44,488,323)
Leases payable (597,242)
Subscriptions Based Information Technology Arrangements (1,678,826)
Financed purchases (49,723)
Net pension liability (21,409,403) (70,868,217)
Net Position of Governmental Activities $216,957,749
The notes to the basic financial statements are an integral part of this statement.
42
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
REVENUES
Sales taxes $26,715,684 $3,806,551 $-
Franchise taxes 715,334 - -
Development impact fees - - -
Intergovernmental 25,260,912 - 464,000
Licenses, fees and permits 2,122,503 - -
Fines, forfeitures and penalties 61,640 - -
Charges for services 2,984,059 7,488,363 -
Donations 5,122 - -
Investment income:
Interest 747,818 33,052 716,598
Net increase/(decrease) in fair value of investments (108,967) (3,904) (69,737)
Other 573,211 162,550 892,575
Total Revenues 59,077,316 11,486,612 2,003,436
EXPENDITURES
Current:
General government 21,508,943 - 92,386
Public safety 20,170,049 - -
Highway and streets - - -
Transit 1,697,772 - -
Culture and recreation 4,397,777 7,107,757 287,938
Capital outlay 1,814,920 1,659,167 18,199,380
Debt service:
Principal retirement 489,400 182,550 -
Interest and fiscal charges 91,643 14,569 -
Total Expenditures 50,170,504 8,964,043 18,579,704
REVENUES OVER/(UNDER) EXPENDITURES 8,906,812 2,522,569 (16,576,268)
OTHER FINANCING SOURCES/(USES)
Subscription-based information
technology arrangements 1,634,518 - -
Sale of general capital assets 219 1,518 71,733
Insurance recoveries 16,106 - 131,977
Transfers in/(out), net (12,274,644) (1,717,203) 8,500,000
Total Other Financing Sources/(Uses)(10,623,801) (1,715,685) 8,703,710
NET CHANGE IN FUND BALANCES (1,716,989) 806,884 (7,872,558)
FUND BALANCES, Beginning of year 23,798,492 1,008,233 24,550,288
FUND BALANCES, End of year $22,081,503 $1,815,117 $16,677,730
CenterGeneral Government CIP
Community General
The notes to the basic financial statements are an integral part of this statement
43
$- $- $- $30,522,235
- - - 715,334
- - 461,552 461,552
2,135,677 25,649 4,243,078 32,129,316
- - 25,869 2,148,372
- - 129,883 191,523
- - 38,225 10,510,647
- - - 5,122
24,514 66,529 321,397 1,909,908
(1,172) - (18,623) (202,403)
33,631 94,980 766 1,757,713
2,192,650 187,158 5,202,147 80,149,319
- - - 21,601,329
75,431 - 45,137 20,290,617
- - 2,372,557 2,372,557
- - - 1,697,772
113 - 540 11,794,125
2,080,167 - 4,915,957 28,669,591
- 2,668,242 - 3,340,192
- 1,369,340 - 1,475,552
2,155,711 4,037,582 7,334,191 91,241,735
36,939 (3,850,424) (2,132,044) (11,092,416)
- - - 1,634,518
- - - 73,470
- - 13,949 162,032
(384,701) 3,902,708 1,453,447 (520,393)
(384,701) 3,902,708 1,467,396 1,349,627
(347,762) 52,284 (664,648) (9,742,789)
162,207 273,718 4,859,270 54,652,208
$(185,555) $326,002 $4,194,622 $44,909,419
Municipal
Debt Service
Grants and
Contributions
Non-Major
Funds
Governmental
Funds
Governmental
Total
44
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45
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, 2024
Net change in fund balances - total governmental funds $(9,742,789)
Amounts reported for governmental activities in the Statement of Activities are different
because:
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/amortization expense.
Expenditures for capital assets $28,436,561
Less current year depreciation/amortization (13,625,173) 14,811,388
Deferred items such as premiums related to the net cost of issuance of bonds are amortized
over the life of the associated bond issue in the government-wide statements
but not reported in the funds.205,511
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.(275,031)
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 $(142,933)
Compensated absences (203,858) (346,791)
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.508,140
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.
Debt issued or incurred $(1,634,518)
Lease principal retirement 229,867
Financed purchases principal retirement 19,531
Subscriptions-based Information Technology Arrangements principal retirement 422,552
Revenue bond principal retirement 2,668,242 1,705,674
Change in net position of governmental activities.$6,866,102
The notes to the basic financial statements are an integral part of this statement.
46
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF NET POSITION – PROPRIETARY FUNDS
JUNE 30, 2024
ASSETS
Current assets:
Cash and investments $21,824,982 $1,063,842 $22,888,824 $3,875,189
Accounts receivable 2,166,033 170,014 2,336,047 -
Interest receivable 188,869 8,349 197,218 18,109
Prepaid items 493,833 - 493,833 -
Total current assets 24,673,717 1,242,205 25,915,922 3,893,298
Noncurrent assets:
Capital assets, non-depreciable 33,913,268 - 33,913,268 -
Capital assets, depreciable (net)87,725,117 3,461,605 91,186,722 -
Total noncurrent assets 121,638,385 3,461,605 125,099,990 -
Total Assets 146,312,102 4,703,810 151,015,912 3,893,298
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 101,230 - 101,230 -
Pension plan items 374,206 103,574 477,780 -
Total Deferred Outflows of Resources 475,436 103,574 579,010 -
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses 1,449,648 5,990 1,455,638 166,341
Accrued wages and benefits 134,428 41,595 176,023 -
Intergovernmental payable 809,071 - 809,071 -
Interest payable 173,386 - 173,386 -
Unearned revenue 273,182 - 273,182 -
Claims payable - - - 322,952
Customer deposits payable 681,000 - 681,000 -
Total current liabilities 3,520,715 47,585 3,568,300 489,293
Noncurrent liabilities:
Due within one year 3,433,152 14,419 3,447,571 -
Due in more than one year 15,483,128 460,065 15,943,193 -
Total noncurrent liabilities 18,916,280 474,484 19,390,764 -
Total Liabilities 22,436,995 522,069 22,959,064 489,293
DEFERRED INFLOWS OF RESOURCES
Pension plan items 111,464 30,851 142,315 -
NET POSITION
Net investment in capital assets 106,793,115 3,461,605 110,254,720 -
Restricted for capital projects 14,427,924 - 14,427,924 -
Unrestricted 3,018,040 792,859 3,810,899 3,404,005
Total Net Position $124,239,079 $4,254,464 $128,493,543 $3,404,005
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.
47
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION – PROPRIETARY
FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
OPERATING REVENUES:
Charges for services $19,530,375 $1,521,217 $21,051,592 $145,608
Other 20,270 21 20,291 251,729
Self insurance premiums - - - 3,774,869
Total Operating Revenues 19,550,645 1,521,238 21,071,883 4,172,206
OPERATING EXPENSES:
Costs of sales and services 13,504,941 1,291,827 14,796,768 19,703
Contractual services 513,064 41,991 555,055 978,799
Depreciation 3,839,193 152,898 3,992,091 -
Claims payments - - - 2,748,280
Administrative - - - 306
Total Operating Expenses 17,857,198 1,486,716 19,343,914 3,747,088
OPERATING INCOME/(LOSS)1,693,447 34,522 1,727,969 425,118
NONOPERATING REVENUES (EXPENSES):
Sale of assets 12,600 - 12,600 -
Insurance recoveries 5,881 - 5,881 -
Investment income:
Interest 825,119 29,206 854,325 99,180
Net increase (decrease) in fair value of investments (99,318) (4,765) (104,083) (16,158)
Interest expense (448,001) - (448,001) -
Total Nonoperating Revenues (Expenses)296,281 24,441 320,722 83,022
INCOME/(LOSS) BEFORE CONTRIBUTIONS
AND TRANSFERS 1,989,728 58,963 2,048,691 508,140
DEVELOPMENT FEES 2,367,405 - 2,367,405 -
CAPITAL CONTRIBUTIONS 1,889,601 - 1,889,601 -
TRANSFERS IN/(OUT), NET 520,393 - 520,393 -
CHANGES IN NET POSITION 6,767,127 58,963 6,826,090 508,140
NET POSITION, Beginning of year 117,471,952 4,195,501 121,667,453 2,895,865
NET POSITION, End of year $124,239,079 $4,254,464 $128,493,543 $3,404,005
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.
48
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from customers $19,536,312 $1,519,671 $21,055,983 $-
Cash received from premiums - - - 3,774,869
Cash payments to suppliers for goods and services (11,082,172) (413,683) (11,495,855) (582,604)
Cash payments to employees for services (3,573,848) (949,736) (4,523,584) -
Cash payments for claims - - - (2,786,657)
Net cash provided by operating activities 4,880,292 156,252 5,036,544 405,608
Cash flows from noncapital and related financing activities:
Interfund transfers 520,393 - 520,393 -
Net cash provided by noncapital financing activities 520,393 - 520,393 -
Cash flows from capital and related financing activities:
Development impact fees 2,367,405 - 2,367,405 -
Acquisition of capital assets (13,591,804) (37,700) (13,629,504) -
Proceeds from sale of capital assets 12,600 - 12,600 -
Insurance recoveries 5,881 - 5,881 -
Principal paid on long-term debt (3,372,254) - (3,372,254) -
Interest on long-term debt (382,353) - (382,353) -
Net cash used for capital financing activities (14,960,525) (37,700) (14,998,225) -
Cash flows from investing activities:
Investment income 671,211 22,178 693,389 75,268
Net cash provided by investing activities 671,211 22,178 693,389 75,268
Net increase (decrease) in cash and cash equivalents (8,888,629) 140,730 (8,747,899) 480,876
Cash and cash equivalents, beginning of year 30,713,611 923,112 31,636,723 3,394,313
Cash and cash equivalents, end of year $21,824,982 $1,063,842 $22,888,824 $3,875,189
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used for) Operating Activities
Operating income (loss)$1,693,447 $34,522 $1,727,969 $425,118
Adjustments to reconcile operating income (loss)
to net cash provided by (used for) operating activities:
Depreciation 3,839,193 152,898 3,992,091 -
Provision for bad debt 11,003 1,000 12,003 -
Change in assets and liabilities:
Accounts receivable (301,795) (2,567) (304,362) -
Prepaid items (77,236) - (77,236) 13,997
Accounts payable (603,517) (55,450) (658,967) 4,870
Unearned revenue 273,182 - 273,182 -
Claims payable - - - (38,377)
Accrued wages and benefits (26,492) 6,687 (19,805) -
Customer deposits payable 3,277 - 3,277 -
Pension plan items 69,230 19,162 88,392 -
Total adjustments 3,186,845 121,730 3,308,575 (19,510)
Net cash provided by operating activities $4,880,292 $156,252 $5,036,544 $405,608
Non-cash capital and financing activities
Contribution of assets from developers $1,889,601 $- $1,889,601 $-
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.
49
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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.
50
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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. General capital asset
acquisitions are reported as expenditures in governmental funds. Issuances of general long-
term debt and acquisitions under lease contracts are reported as other financing sources.
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 it is 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.
51
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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, as well as
other Parks and Recreation facilities, amenities or operations as determined by the Town Council.
General Government CIP Fund – This fund accounts for governmental capital asset projects.
Grants and Contributions Fund – This fund accounts for governmental grants and contributions
received and expended by the Town.
Municipal Debt Service Fund – This fund accounts for debt service payments 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, the Series 2018 Excise
Tax Revenue Obligations, the Taxable Series 2021 Excise Tax Revenue Obligations and the Tax-
Exempt Series 2021 Excise Tax Revenue Obligations.
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 are 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.
52
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
53
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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, right-to-use lease
assets, 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 $25,000 or more and an estimated useful life of two
or more years. Exceptions maybe be made depending on the requirements of certain federal or
state grants. 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/amortized 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
Intangible right-to-use lease assets are amortized over the shorter of the lease term or the useful
life of the underlying assets above. Intangible right-to-use subscription assets are amortized
over the shorter of the subscription term or the useful life of the underlying IT assets.
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 assets that applies to future periods 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 assets that applies to future periods and so will not be
recognized as an inflow of resources (revenue) until that time.
54
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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 their employment shall be paid in a lump sum. Full-time
employees accumulate sick leave at the rate of one workday 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. Leases and subscription-based information technology arrangements
As lessee, the Town recognizes lease liabilities with an initial, individual value of $75,000 or
more. The Town uses its estimated incremental borrowing rate to measure lease liabilities
unless it can readily determine the interest rate implicit in the lease. The Town's estimated
incremental borrowing rate is based on the average interest rate of other financing instruments
with similar terms and risks as those currently entered into by the Town.
As lessor, the Town recognizes lease receivables with an initial, individual value of $150,000
or more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the
Town charges the lessee) and the implicit rate cannot be determined, the Town uses its own
estimated incremental borrowing rate as the discount rate to measure lease receivables. The
Town’s estimated incremental borrowing rate is calculated as described above.
The Town recognizes subscription liabilities with an initial value of $75,000 or more. The Town
uses its estimated incremental borrowing rate to measure subscription liabilities unless it can
readily determine the interest rate implicit in the arrangement. The Town’s estimated
incremental borrowing rate is calculated as described above.
M. 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. Generally,
resources from the General Fund are used to pay for pensions.
N. 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
55
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 $241.9 million, and for all other purposes is $72.6 million. The Town
does not have any related debt.
O. 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.
P. 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.
Q. Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying notes. Actual results
may differ from those estimates.
NOTE 2 – 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.
56
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 2 – FUND BALANCE CLASSIFICATIONS (Continued)
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 as well as other Parks and Recreation facilities,
amenities or operations as determined by the Town Council.
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)23-01, 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 been restricted, committed, or
assigned. The Grants and Contributions Fund has a deficit in fund balance of $185,555 as of
June 30, 2024. This is simply a timing issue due to grant expenditures and pending
reimbursements.
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.
57
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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.
Grants and Municipal
Fund Balances:
Nonspendable:
Inventory $- $146,375 $- $- $- $-
Prepaid items 686,393 35,162 188,960 - - -
Restricted:
Highway and Streets - - - - - 606,047
Debt service - - - - 326,002 -
Capital projects - - - - - 3,239,535
Public safety - - - - - 331,063
Committed:
Contingency reserve 15,051,151 - - - - -
Culture & recreation - 1,633,580 - - - 17,977
Assigned:
Townwide capital - - 16,488,770 - - -
Unassigned:6,343,959 - - (185,555) - -
Total Fund Balances $22,081,503 $1,815,117 $16,677,730 $(185,555) $326,002 $4,194,622
Debt Service
Fund
Non-Major
Governmental
Funds
General
Fund
Community
Center Fund
General
Government
CIP Fund
Contributions
Fund
NOTE 3 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Excess Expenditures Over Budget – At year end, the Town had expenditures 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
$5,021,339 and the bank balance was $5,639,424. Of the bank balance, $750,000 was covered by
Federal depository insurance and the remainder was covered by collateral held by the pledging
financial institution’s trust department or agent but not in the Town’s name and no amounts
were uninsured and uncollateralized. Additionally, the Town had cash on hand of $7,413.
58
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 4 – CASH AND INVESTMENTS (Continued)
Fair Value Measurements. The Town categorizes its fair value measurements within the fair
value hierarchy established by generally accepted accounting principles. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset.
• Level 1 inputs are quoted prices in active markets for identical assets
• Level 2 inputs are significant other observable inputs
• Level 3 inputs are significant unobservable inputs
Valuation Techniques. Equity and debt securities classified in Level 1 of the fair value
hierarchy are valued using prices quoted in active markets for those securities. Money markets
and certificates of deposit securities classified in Level 2 of the of the fair value hierarchy are
valued using a matrix pricing technique. Matrix pricing is used to value securities based on the
securities’ relationship to benchmark quoted prices.
The State Treasurer’s pools are external investment pools, the Local Government Investment
Pool (Pool 5) and Local Government Investment Pool – Government (Pool 7), with no
regulatory oversight. The pools are as an investment company are not registered with the
Securities and Exchange Commission. The activity and performance of the pools are reviewed
monthly by the State Board of Investment. The fair value of each participant’s position in the
State Treasurer investment pools approximates the value of the participant’s shares in the pool
and the participants’ shares are not identified with specific investments. Participants in the pool
are not required to categorize the value of shares in accordance with the fair value hierarchy.
The Arizona State Treasurer has a publicly available financial report that includes financial
statements and required supplementary information. Copies may be obtained by contacting the
Arizona State Treasurer, 1700 West Washington, Phoenix, AZ 85007 or at
www.aztreasury.gov.
The County Treasurer’s pool is an external investment pool with no regulatory oversight. The
pool is not required to register (and is not registered) with the Securities and Exchange
Commission. The fair value of each participants’ position in the County Treasurer investment
pool approximates the value of the participants’ shares in the pool and the participants’ shares
are not identified with specific investments. Participants in the pool are not required to
categorize the value of shares in accordance with the fair value hierarchy.
Custodial Credit Risk – Investments. The Town’s investment in the State and County
Treasurer’s investment pools represents a proportionate interest in the pool’s portfolio;
however, the Town’s portion is not identified with specific investments and is not subject to
custodial credit risk.
59
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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:
Credit
Quality Ratings
Investment Type Fair Value Category Less than 1 1-5 S&P's
Money Market - Wells Fargo 207,017 Level 2 207,017 N/A
Money Market - Zion Bank 167,697 Level 2 167,697 N/A
Money Market - US Bank 6,032,430 Level 2 6,032,430 N/A
Money Market - BNY Mellon 215,112 Level 2 215,112 N/A
U.S. Treasuries 21,906,777 Level 1 2,125,375 19,781,402 AA+
Supra-National Agency 370,142 Level 1 370,142 AAA
Collateralized Mortgage Obligations 3,099,118 Level 1 3,099,118 AA+
Asset-Backed Securities 11,977,298 Level 1 775,374 11,201,924 N/A
Bank Note 244,650 Level 1 244,650 A
Certificate of Deposit 1,950,110 Level 1 1,950,110 A-1
Corporate Notes:16,181,401 Level 1 116,449 16,064,952 BBB+
Total 62,351,753 10,009,596 52,342,156
County Treasurer's Investment Pool 418,158 Not applicable 418,158 N/A
State Treasurer's Investment Pool 5 2,520,887 Not applicable 2,520,887 AA-3
Total 65,290,798
Investment Maturities (in Years)
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.
60
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 4 – CASH AND INVESTMENTS (Continued)
Concentration of Credit Risk. The Town places no limit on the amount the Town may invest in any
one issuer. Investments in any one issuer are as follows:
%
Money Markets 9
U.S. Treasuries 34
Supra-National Agency 1
Collateralized Mortgage Obligations 5
Asset-Backed Securities 18
Bank Note 0
Certificate of Deposit 3
Corporate Notes 25
County Treasurer's Investment Pool 1
State Treasurer's Investment Pool 5 4
100 %
Concentration
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:
General Non-Major
Government Governmental
CIP Fund Funds
Intergovernmental receivables:
Due from federal government $50,454 $1,000,000 $346,097 $-
Due from state government 324,503 - - 425,986
Due from other governments 12,729 - 32,158
Net intergovernmental receivables $387,686 $1,000,000 $378,255 $425,986
General
Fund
Contributions
Fund
Grants and
Lease Receivables – The Town leases cell tower space and building/facility space to third parties under the
provisions of various lease agreements. During the fiscal year ended June 30, 2024, the Town recognized total
lease-related revenues of $155,524.
61
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 6 – CAPITAL AND INTANGIBLE ASSETS
A summary of capital and intangible asset activity for the year ended June 30, 2024, was as follows:
Governmental Activities:
NON-DEPRECIABLE/AMORTIZABLE
Land $36,289,821 $- $- $- $36,289,821
Construction in progress 14,779,568 19,205,702 (31,878,314) - 2,106,956
Total non-depreciable/amortizable 51,069,389 19,205,702 (31,878,314) - 38,396,777
DEPRECIABLE/AMORTIZABLE
Infrastructure 245,923,586 5,177,699 - - 251,101,285
Buildings & improvements 57,711,490 30,178,550 - - 87,890,040
Machinery, equipment & vehicles 21,529,780 4,118,406 (2,871,334) 32,820 22,809,672
Software - SBITA Subscriptions 582,440 1,634,518 - - 2,216,958
Equipment - Leases 1,064,942 - - - 1,064,942
Total depreciable/amortizable 326,812,238 41,109,173 (2,871,334) 32,820 365,082,897
ACCUMULATED DEPRECIATION/AMORTIZATION
Infrastructure (137,218,380) (9,683,472) - - (146,901,852)
Buildings & improvements (13,494,968) (1,532,149) - - (15,027,117)
Machinery, equipment & vehicles (15,560,662) (1,746,909) 2,728,401 (32,820) (14,611,990)
Software - SBITA Subscriptions (115,580) (422,552) - - (538,132)
Equipment - Leases (236,855) (240,091) - - (476,946)
Total accumulated depreciation/amortization (166,626,445) (13,625,173) 2,728,401 (32,820) (177,556,037)
Total capital assets being depreciated/amortized 160,185,793 27,484,000 (142,933) - 187,526,860
Capital assets, net of depreciation/amortization $211,255,182 $46,689,702 $(32,021,247) $- $225,923,637
Business-type Activities:
NON-DEPRECIABLE
Land $2,410,660 $- $- $- $2,410,660
Water rights 8,534,490 - - - 8,534,490
Construction in progress 11,709,344 12,352,636 (1,093,862) - 22,968,118
Total non-depreciable 22,654,494 12,352,636 (1,093,862) - 33,913,268
DEPRECIABLE
Water system 148,484,849 3,640,541 - - 152,125,390
Stormwater system 4,158,612 37,700 - - 4,196,312
Machinery, equipment & vehicles 6,722,379 582,090 (219,189) (32,820) 7,052,460
Total depreciable 159,365,840 4,260,331 (219,189) (32,820) 163,374,162
ACCUMULATED DEPRECIATION
Water system (62,160,295) (3,607,372) - - (65,767,667)
Stormwater system (858,274) (87,448) - - (945,722)
Machinery, equipment & vehicles (5,428,790) (297,270) 219,189 32,820 (5,474,051)
Total accumulated depreciation (68,447,359) (3,992,090) 219,189 32,820 (72,187,440)
Total capital assets being depreciated 90,918,481 268,241 - - 91,186,722
Capital assets, net of depreciation $113,572,975 $12,620,877 $(1,093,862) $- $125,099,990
Beginning Ending
Balance Increases Decreases Balance
Beginning Ending
Balance Increases Decreases Balance
Transfers
Transfers
62
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 6 – CAPITAL AND INTANGIBLE ASSETS (Continued)
Depreciation and amortization expense was charged to functions/programs as follows:
Governmental activities:
General government $527,960 $492,482 $1,020,442
Public safety 1,109,067 - 1,109,067
Highways & streets 10,080,031 - 10,080,031
Culture & recreation 1,245,471 170,160 1,415,631
Total depreciation/amortization
expense - governmental activities $12,962,529 $662,642 $13,625,171
Business-type activities:
Water $3,839,193 $- $3,839,193
Stormwater 152,898 - 152,898
Total depreciation -
expense business-type activities $3,992,091 $- $3,992,091
Depreciation
Amortization TotalDepreciation
Amortization Total
Construction Commitments – As of year-end, the Town had contractual commitments related
to park improvements, facility improvements, and water system improvements. At year end the
Town had spent $10.5 million on the projects and had estimated remaining contractual
commitments of $38.3 million.
NOTE 7 – LOAN PAYABLE
The Town has a loan from the Water Infrastructure Finance Authority (WIFA) of Arizona for
water system projects. The loan payable at current fiscal year end is presented below.
Interest Rate
(Including Remaining
Business-type activities:Fees)Maturities
WIFA Loan, 2014 2.65%7/1/24-29 $1,761,630 $334,128
Total $1,761,630 $334,128
Outstanding
Principal
June 30, 2024
Due Within
One Year
63
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 7 – LOAN PAYABLE (Continued)
Principal and interest payments on the business-type activities loan payable at June 30, 2024
is summarized as follows:
Year ending June 30:
$334,128 $42,288
342,989 33,310
352,085 24,093
361,422 14,632
371,006 4,920
$1,761,630 $119,243 Total
2025
2026
2027
2028
2029
Principal Interest
NOTE 8 – REVENUE BONDS PAYABLE
Bonds payable at year end, consisted of the following outstanding revenue and refunding
bonds. The bonds are both callable and noncallable with interest payable semiannually. Taxes,
water revenues, and impact fees are used to pay bonded debt.
Purpose
Governmental activities:
Revenue bonds:
Excise Tax Revenue Obligations, 2010 $2,445,000 $640,000 $155,000
Revenue Bonds, 2012 2,580,000 840,000 200,000
Pension Obligation Bonds, 2021 17,975,000 16,075,000 960,000
Parks and Recreation, 2021 21,120,000 19,490,000 715,000
Private placement revenue bonds:
Refunding Excise Tax Revenue Obligations, 2015 2,529,250 598,980 297,480
Excise Tax Revenue Obligations, 2016 2,000,000 1,265,000 146,000
Refunding Excise Tax Revenue Obligations, 2017 1,115,556 401,148 130,494
Excise Tax Revenue Obligations, 2018 2,035,000 1,479,000 129,000
Total $40,789,128 $2,732,974
Outstanding
Principal
June 30, 2024Issued
Amount
Original
Interest
Rates
7/1/24-28
Remaining
Maturities
1.91%
2.20%
7/1/24-26
7/1/24-32
7/1/24-28
7/1/24-27
7/1/24-343.02%
7/1/24-42
7/1/24-390.27-2.70%
4.00-5.00%
3.50-4.00%
2.43%
Due Within
One Year
5.49-6.59%
Purpose
Business-type activities:
Private placement revenue bonds:
Refunding Revenue Bonds, 2015 $1,245,750 $295,020 $146,520
Refunding Revenue Bonds, 2017 13,186,444 4,741,846 1,542,506
Excise Tax Revenue Obligations, 2018 6,105,000 4,437,004 387,000
Refunding Revenue Bonds, 2021 5,582,000 3,711,000 760,000
Total $13,184,870 $2,836,026
Original
Amount
Issued
Interest Remaining
Outstanding
Principal
June 30, 2024RatesMaturities
Due Within
One Year
1.91%7/1/24-26
3.02%
1.16-1.27%
7/1/24-34
7/1/24-30
2.43%7/1/24-27
64
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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:
$2,030,000 $1,201,676 $702,974 $85,704
2,085,000 1,140,563 717,942 69,565
2,140,000 1,074,363 426,712 55,995
2,195,000 1,003,105 297,000 46,738
1,870,000 936,511 305,250 38,939
10,305,000 3,702,200 1,294,250 78,053
12,085,000 1,897,741 - -
4,335,000 264,500 - -
$37,045,000 $11,220,659 $3,744,128 $374,994
Year ending June 30:
2025
2026
2027
2028
2029
2030-2034
2035-2039
Total
2040-2042
Interest
Governmental Activities
Principal InterestPrincipal
Private Placement
Revenue BondsRevenue Bonds
Annual debt service requirements to maturity on revenue and refunding bonds for business-type
activities at year end are summarized as follows:
$2,836,026 $248,084
2,899,058 186,002
2,812,282 125,317
1,210,000 102,847
926,750 79,694
2,500,754 149,721
$13,184,870 $891,665
Business-type Activities
Total
Revenue Bonds
Principal Interest
2030-2034
Year ending June 30:
2025
2027
2028
2029
2026
Private Placement
65
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
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 $44.5 million as of
June 30, 2024. 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 2042. 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 $52.4 million. The current total sales tax
revenues were $30.5 million, and the total principal and interest paid on the bonds was $4.0 million
or approximately 13.2 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 $13.2 million as of June 30,
2024. 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 13 percent of gross revenues. The total principal and interest to be paid on the bonds
is $14.1 million. The current total customer gross revenues were $21.9 million, and the total
principal and interest paid on the bonds was $3.4 million or 15 percent of gross revenues.
NOTE 9 – OBLIGATIONS UNDER LEASES
Leases – Lease agreements are summarized as follows:
Description
Copiers 09/30/2022 60 months 6,400 3.5%349,652 228,978
Golf carts 03/01/2022 36-54 months 13,259 2.5%637,971 345,709
Fitness equipment 01/15/2022 48 months 1,278 2.5%58,319 22,555
Total lease agreements $1,045,942 $597,242
June 30, 2024
BalancePayment
TermsDate Liability
Lease
Beginning
Interest
Rate
Payment
Amount
Annual requirements to amortize long-term obligations and related interest are as follows:
Year Ending
June 30
2025 $227,098 $14,731
2026 206,903 8,432
2027 150,501 2,638
2028 12,740 60
Total $597,242 $25,861
InterestPrincipal
66
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 10 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS
The Town has obtained the right to use software under the provisions of various subscription-based
information technology arrangements.
The total amount of subscription assets are summarized as follows:
Description
Sensus/Flexnet 07/01/2022 72 months $3,921 3.75%$245,267 $170,550
Sprypoint 07/01/2022 48 months 7,750 3.75%337,173 175,547
Watersmart 8/1/2023 60 months 2,975 3.75%160,213 130,632
Axon 08/01/2023 60 months 27,375 3.75%1,474,305 1,202,097
Total SBITA agreements $2,216,958 $1,678,826
June 30, 2024
Beginning
Payment Payment Interest SBITA Balance
Date Terms Amount Rate Liability
The following schedule details minimum subscription payments to maturity for the Town’s
subscriptions liability at June 30, 2024:
Year Ending
June 30
2025 435,581 68,662
2026 454,500 49,743
2027 380,400 30,843
2028 408,345 2,898
Total $1,678,826 $152,146
Principal Interest
NOTE 11 – FINANCED PURCHASE AGREEMENT
The Town acquired Community Center fitness equipment under contract at a total purchase price
of $81,722. The following schedule details debt service requirements to maturity for the Town’s
financed purchases at June 30, 2024.
Year ending June 30:
$20,574 $2,104
21,671 1,006
7,478 81
$49,723 $3,191
Governmental Activities
2025
2026
Principal Interest
2027
Total
67
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 12 – 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 $39,025,000 $- $(1,980,000) $37,045,000 $2,030,000
Private placement revenue bonds 4,432,370 - (688,242) 3,744,128 702,974
Premium 3,904,706 - (205,511) 3,699,195 -
Total bonds payable 47,362,076 - (2,873,753) 44,488,323 2,732,974
Leases payable 827,109 - (229,867) 597,242 227,098
Financed purchases 69,254 (19,531) 49,723 20,574
Subscriptions liability 466,860 1,634,518 (422,552) 1,678,826 435,581
Net pension liability 18,344,379 3,065,024 - 21,409,403 -
Compensated absences payable 2,440,842 2,428,352 (2,224,494) 2,644,700 2,326,423
Governmental activities long-term
liabilities $69,510,520 $7,127,894 $(5,770,197) $70,868,217 $5,742,650
Business-type activities
Private placement revenue bonds $16,231,628 $- $(3,046,758) $13,184,870 $2,836,026
Total bonds payable 16,231,628 - (3,046,758) 13,184,870 2,836,026
Loan payable 2,087,126 - (325,496) 1,761,630 334,128
Net pension liability 4,168,490 - (74,172) 4,094,318 -
Compensated absences payable 362,127 271,326 (283,507) 349,946 277,417
Business-type activities long-term
liabilities $22,849,371 $271,326 $(3,729,933) $19,390,764 $3,447,571
Outstanding
July 1,
2023
Outstanding
June 30,
2024
Matured/
Redeemed
During YearIssued
July 1,Redeemed June 30,
2023
Outstanding
Issued
Matured/
During Year
Outstanding
2024
Due Within
One Year
68
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 13 – TRANSFERS
At year end, transfer activity in the funds was as follows:
Interfund transfers:
General Fund $- $12,274,644
Community Center Fund - 1,717,203
General Government CIP 10,000,000 1,500,000
Grants and Contributions 138,000 522,701
Municipal Debt Service Fund 3,902,708 -
Non-Major Governmental Funds 1,500,000 46,553
Water Fund 522,701 2,308
$16,063,409 $16,063,409
Transfers In Transfers Out
Transfers were made from the General, Community Center, Water and General Impact Fee Funds
to the Municipal Debt Service Fund for debt service. In addition, transfers were made from the
General Fund to the General Government CIP Fund, from the Grants and Contributions Fund to
the Water Fund, and from the General Government CIP Fund to the Highway Fund to support
capital projects. A transfer was made from the General Fund to the Grants and Contributions fund
for grant matching requirements.
NOTE 14 – 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.
69
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 15 – 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 $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.
2023-24 $361,329 $2,786,657 $2,825,034 $322,952
2022-23 302,655 $3,608,672 $3,549,998 $361,329
Claim
Payments
Claims Payable
at End of Year
Claims Payable
Beginning of
Year
Current Year Claims
and Changes in
Estimates
70
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS
The Town contributes to the plans described below. The plans are component units of the State
of Arizona.
Aggregate Amounts. On June 30, 2024, the Town reported the following aggregate amounts
related to pensions for all plans to which it contributes.
Net pension liability $21,409,403 $4,094,318 $25,503,721
Pension deferred outflows of resources 14,573,869 477,782 15,051,651
Pension deferred inflows of resources 984,964 142,315 1,127,279
Pension expense 5,421,327 471,486 5,892,813
Total
Business-type
Activities
Governmental
Activities
The Town reported $5.1 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 not covered by the other pension plans described below
participate in the Arizona State Retirement System (ASRS). The ASRS administers a cost-
sharing multiple-employer defined benefit pension plan, a cost-sharing multiple-employer
defined benefit health insurance premium benefit (OPEB) plan, and a cost-sharing multiple-
employer defined benefit long-term disability (OPEB) plan. The Arizona State Retirement
System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5,
Articles 2 and 2.1. The ASRS issues a publicly available financial report that includes its
financial statements and required supplementary information. The report is available on the
ASRS website at www.azasrs.gov. GASB Statement 75 has not been recorded or further disclosed
due to its relative insignificance to the Town’s financial statements.
71
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – 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 consecutive
months of last 120 months
Highest 60 consecutive
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 retirement
benefit option chosen determines the survivor benefit. 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.
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. 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.
72
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – 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 fiscal year ended
June 30, 2024, statute required active ASRS members to contribute at the actuarially determined
rate of 12.29 percent (12.14 percent for retirement and 0.15 percent for long-term disability) of
the members’ annual covered payroll, and statute required the Town to contribute at the
actuarially determined rate of 12.29 percent (12.03 percent for retirement, 0.11 percent for health
insurance premium benefit, and 0.15 percent for long-term disability) of the active members’
annual covered payroll. The Town’s contributions for the year ended June 30, 2024, were as
follows:
Pension $2,024,014
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
9.99 percent (9.94 for retirement and 0.05 percent for long-term disability) of annual covered
payroll. ACR contributions are included in employer contributions presented above.
The Town’s pension contributions are paid by the same funds as the employee’s salary, with
the largest component coming from the General Fund. Contributions from the Water Enterprise
Fund were 15%, and contributions from the non-major enterprise fund were 4%.
73
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Pension Liability. The net pension liability was measured as of June 30, 2023. 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, 2022, to the measurement
date of June 30, 2023.
The Town’s proportion of the net asset/liability was based on the Town’s actual contributions
to the plan relative to the total of all participating employers’ contributions for the year ended
June 30, 2023. The Town’s proportions measured as of June 30, 2023, and the change from
its proportions measured as of June 30, 2022, were:
Pension $19,655,601 0.121 (0.001)
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, 2024, the Town recognized pension expense as
follows:
Pension $2,491,016
Expense
74
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
The Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Differences between expected and actual experience $444,138 $-
Changes of assumptions or other inputs - -
Net difference between projected and actual earnings
on pension investments - 695,432
Changes in proportion and differences between
contributions and proportionate share of contributions 56,129 56,469
Contributions subsequent to the measurement date 2,024,014 -
Total $2,524,281 $751,901
Deferred Inflows
of Resourcesof Resources
Deferred Outflows
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, 2025. Other amounts reported as deferred outflows of
resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
$(75,442)
(839,244)
749,470
(86,418)
-
-
2028
2025
2026
2027
Thereafter
Pension
2029
75
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Actuarial Assumptions. The significant actuarial assumptions used to measure the total
pension liability are as follows:
Pension
Actuarial valuation date June 30, 2022
Actuarial roll forward date June 30, 2023
Actuarial cost method Entry age normal
Investment rate of return 7.0%
Projected salary increases 2.9-8.4%
Inflation 2.3%
Permanent base increases Included
Mortality rates 2017 SRA Scale U-MP
Recovery rates 2012 GLTD for long-term
disability
Healthcare cost trend rate Not applicable
Actuarial assumptions used in the June 30, 2022 valuation were based on the results of an
actuarial experience study for the five-year period ended June 30, 2020.
The long-term expected rate of return on ASRS plan investments was determined to be 7.0
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. 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
Public Equity 44%3.50%
Fixed income - credit 23%5.90%
Real Estate 17%5.90%
Private Equity 10%6.70%
Interest rate sensitivity bonds 6%1.50%
Total 100%
Long-term
Expected Real
Allocation Rate of Return
Target
76
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Discount Rate. At June 30, 2023, the discount rate used to measure the ASRS total pension
liability was 7.0 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 7.0 percent, as well as what the proportionate share
of the net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (6.0 percent) or 1-percentage-point higher (8.0 percent) than the current
rate:
Rate
Pension $29,441,204 $19,655,601 $11,496,140
6.0%7.0%8.0%
Proportionate share of the net liability
Discount Rate
Current
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.
77
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
B. Public Safety Personnel Retirement System and Corrections Officer Retirement Plan
Plan Descriptions. Town public safety employees who are regularly assigned hazardous duty
participate in the Public Safety Personnel Retirement System (PSPRS) or employees who
became members on or after July 1, 2017, may participate in the Public Safety Personnel
Defined Contribution Retirement Plan (PSDCRP). The PSPRS administers an agent and cost-
sharing multiple-employer defined benefit pension plan and an agent and cost-sharing
multiple-employer defined benefit health insurance premium benefit (OPEB) plan. A nine-
member board known as the Board of Trustees and the participating local boards govern the
PSPRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 4. Employees who
were PSPRS members before July 1, 2017, participate in the agent plans, and employees who
became PSPRS members on or after July 1, 2017, participate in either the agent plans or cost-
sharing plans (PSPRS Tier 3 Risk Pool).
Town dispatchers participate in the Corrections Officer Retirement Plan (CORP) or the Public
Safety Personnel Defined Contribution Retirement Plan. The CORP administers an agent
multiple-employer defined benefit pension plan and an agent multiple-employer defined
benefit health insurance premium benefit (OPEB) plan for dispatchers (agent plans), which
were closed to new members as of July 1, 2018. Employees who were CORP members before
July 1, 2018, participate in CORP or PSDCRP. Dispatcher employees who became members
on or after July 1, 2018, participate in PSDCRP. The PSPRS Board of Trustees described above
and the participating local boards govern CORP according to the provisions of A.R.S. Title 38,
Chapter 5, Article 6.
The PSPRS and CORP issue a publicly available financial report that includes their financial
statements and required supplementary information. The report is available on the PSPRS
website at www.psprs.com.
The PSPRS Tier 3 Risk Pool plans and the PSPRS OPEB plans are not further disclosed
because of their relative insignificance to the Town’s financial statements.
Benefits Provided. The PSPRS and CORP provide retirement, health insurance premium
supplement, disability, and survivor benefits. State statute establishes benefits terms.
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.
78
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Retirement and disability
Years of service
and age required
to receive benefit
Final average salary
is based on
Benefit percent
Normal retirement
Accidental disability retirement
Catastrophic disability retirement
Ordinary disability retirement
Survivor benefit
Retired members
Active members
20 years, not to exceed 80%
50% or normal retirement, whichever is greater
90% for the first 60 months then reduced to either
10 years, age 6210 years, age 62
years OR plus 2-2.5% for each
year of credited service over
monthly compensation if death was the result of injuries received on the job
whichever is greater, multiplied by years of credited service (not to exceed 20 years) divided by 20,
62.5% or normal retirement, whichever is greater
or 2.5% per year of credited service
Normal retirement calculated with actual years of credited service or 20 years of credited service,
On or after July 1, 2017
15 years of credited service, age 52.5*
Highest 60 consecutive
months of last 15 years
1.5-2.5% per year of credited service, not to exceed 80%
15 or more years of service, age 55
months of last 20 years
On or after January 1, 2012
and before July 1, 2017
25 years of service or 15 years
of credited service, age 52.5
Highest 60 consecutive
20-25 years of service, any age
Highest 36 consecutive
months of last 20 years
50% less 2% for each year of
credited service less than 20
80%-100% of accidental disability retirement benefit or 100% of average
80%-100% of retired member's pension benefit
Before January 1, 2012
15 years of service, age 62
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.
79
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Employees Covered by Benefit Terms. As of June 30, 2024, the following employees were
covered by the agent plan’s benefit terms:
Retirees & beneficiaries 57 6
Inactive, non-retired members 22 3
Active members 59 2
Total 138 11
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, 2024,
are indicated below. Rates are a percentage of active members’ annual covered payroll.
CORP -
PSPRS - Police Dispatchers
Active members – pension 7.65% 7.96%
Town:
Pension
11.00%
128.44%
Health insurance 0.00% 0.00%
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 8 percent for the PSPRS and 126.19 percent for the CORP. ACR contributions are
included in employer contributions presented above.
80
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
The contributions to the pension plans for the year ended June 30, 2024, were:
Pension $3,341,458 $163,919
Contributions
PSPRS-Police CORP-Dispatchers
The Town’s pension contributions are paid by the same funds as the employee’s salary, with
the largest component coming from the General Fund.
Pension Liability. As of June 30, 2024, the Town reported the following liabilities.
Pension $5,789,107 $59,013
PSPRS-Police CORP-Dispatchers
Net Liability
The net pension liability was measured as of June 30, 2023, and the total liability used to calculate
the net liability was determined by an actuarial valuation as of that date.
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, 2023
Actuarial cost method Entry age normal
Investment rate of return 7.2%
Projected salary increases 3.0 – 6.25%
Inflation 2.5%
Cost-of-living adjustment 1.85%
Mortality rates PubS-2010 tables
Healthcare cost trend rate Not applicable
Actuarial assumptions used in the June 30, 2023 valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2021.
81
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
The long-term expected rate of return on PSPRS and CORP plan investments was determined to be 7.2
percent using a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of plan investment expenses and inflation) are developed for each major
asset class. The target allocation and best estimates of geometric real rates of return for each major
asset class are summarized in the following table:
Cash - Mellon 2%0.69%
Diversifying strategies 5%3.68%
Core bonds 6%1.90%
Other assets (Capital Appreciation)7%4.49%
International public equity 16%4.49%
Global private equity 20%7.28%
Private credit 20%6.19%
U.S. public equity 24%3.98%
Total 100%
Asset Class
Expected Real
Long-term
Target
Allocation Rate of Return
82
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Changes in Net Liability
PSPRS - Police
Balances at June 30, 2023 $76,438,334 $75,900,900 $537,434
Changes for the year:
Service cost 1,181,744 - 1,181,744
Interest on the total liability 5,450,177 - 5,450,177
Differences between expected and actual
experience in the measurement of the
total liability 6,412,956 - 6,412,956
Changes of assumptions or other inputs - - -
Contributions - employer - 1,446,816 (1,446,816)
Contributions - employee - 605,765 (605,765)
Net investment income - 5,770,191 (5,770,191)
Benefit payments, including refunds of
employee contributions (3,846,347) (3,846,347) -
Administrative expense - (28,833) 28,833
Other - (735) 735
Net changes 9,198,530 3,946,857 5,251,673
Balances at June 30, 2024 $85,636,864 $79,847,757 $5,789,107
CORP - Dispatchers
Balances at June 30, 2023 $3,721,151 $1,662,090 $2,059,061
Changes for the year:
Service cost 16,408 - 16,408
Interest on the total liability 261,914 - 261,914
Differences between expected and actual
experience in the measurement of the
total liability 110,346 - 110,346
Changes of assumptions or other inputs - - -
Contributions - employer - 2,218,919 (2,218,919)
Contributions - employee - 14,017 (14,017)
Net investment income - 160,124 (160,124)
Benefit payments, including refunds of
employee contributions (199,743) (199,743) -
Administrative expense - (2,293) 2,293
Tiers 1 & 2 Adjustment (2,051) 2,051
Other - - -
Net changes 188,925 2,188,973 (2,000,048) Balances at June 30, 2024 $3,910,076 $3,851,063 $59,013
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
83
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Discount Rate. At June 30, 2023, the discount rate used to measure the total pension liability
was 7.2 percent.
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 table
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 $18,319,352 $5,789,107 $(4,321,048)
CORP-Dispatchers:
Net Pension Liability $559,289 $59,013 $(352,233)
6.2%7.2%8.2%
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.
84
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – PENSIONS (Continued)
Expense. For the year ended June 30, 2024, the Town recognized the following as pension
expense:
Pension Expense $3,215,892 $185,905
PSPRS-Police CORP-Dispatchers
Deferred Outflows/Inflows of Resources. At June 30, 2024, 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 $6,387,521 $375,378
Changes of assumptions or other inputs 896,791 -
Net difference between projected and
actual earnings on plan investments 1,641,118 -
Contributions subsequent to the
measurement date 3,341,458 -
Total $12,266,888 $375,378
CORP-Dispatchers:
Differences between expected
and actual experience $55,173 $-
Changes of assumptions or other inputs - -
Net difference between projected and
actual earnings on plan investments 41,391 -
Contributions subsequent to the
measurement date 163,919 -
Total $260,483 $-
Inflows of
Deferred
Outflows of
Deferred
Resources Resources
85
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2024
NOTE 16 – 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, 2025. Other amounts reported as deferred outflows
of resources and deferred inflows of resources related to pensions will be recognized in pension
expense as follows:
2025 $2,337,528 $56,127
2026 1,877,287 (11,516)
2027 3,126,834 45,421
2028 1,208,403 6,532
2029 - -
Thereafter - -
Pension
CORP-DispatchersPSPRS-Police
Year Ending June 30:Pension
86
(This page intentionally left blank)
87
REQUIRED SUPPLEMENTARY INFORMATION
88
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, 2024
Variance
Budgeted Amounts with Final
Original Final Actual Budget
REVENUES
Sales taxes $25,633,318 $25,633,318 $26,715,684 $1,082,366
Franchise taxes 765,000 765,000 715,334 (49,666)
Intergovernmental 25,480,137 25,480,137 25,260,912 (219,225)
Licenses, fees and permits 1,717,118 1,717,118 2,122,503 405,385
Fines, forfeitures and penalties 125,000 125,000 61,640 (63,360)
Charges for services 3,204,246 3,204,246 2,984,059 (220,187)
Donations - - 5,122 5,122
Investment income:
Interest 300,000 300,000 747,818 447,818
Net increase in fair value of investments - - (108,967) (108,967)
Other 253,000 253,000 573,211 320,211
Total Revenues 57,477,819 57,477,819 59,077,316 1,599,497
EXPENDITURES
General government:
Non departmental 2,475,536 2,475,536 2,351,155 124,381
Town council 209,203 209,203 184,698 24,505
Town clerk 419,897 419,897 403,496 16,401
Town manager 1,638,716 1,760,479 1,596,585 163,894
Human resources 590,520 673,755 632,584 41,171
Finance 850,456 850,456 825,859 24,597
Information Technology 6,271,309 6,004,600 5,117,021 887,579
Legal services 1,132,503 1,132,503 1,071,067 61,436
Community and economic development 3,882,445 3,882,445 3,548,853 333,592
Town court 1,010,662 1,010,662 985,129 25,533
Public works 4,800,968 4,877,679 4,792,496 85,183
Public safety:
Police 20,346,591 20,363,283 20,170,049 193,234
Transit:
Transit 1,700,968 1,700,968 1,697,772 3,196
Culture and recreation:
Parks and recreation 4,463,340 4,545,761 4,397,777 147,984
Debt service
Principal - - 489,400 (489,400)
Interest - - 91,643 (91,643)
Total debt service - - 581,043 (581,043)
Capital outlay 606,500 620,487 1,814,920 (1,194,433)
Contingency 5,000,000 4,405,195 - 4,405,195
Total Expenditures 55,399,614 54,932,909 50,170,504 4,762,405
REVENUES OVER/(UNDER) EXPENDITURES 2,078,205 2,544,910 8,906,812 6,361,902
OTHER FINANCING SOURCES/(USES)
Sale of assets 10,000 10,000 219 (9,781)
Insurance recoveries - - 16,106 16,106
Subscription-based information
technology arrangements - - 1,634,518 1,634,518
Transfers out (12,274,644) (12,274,644) (12,274,644) -
Total Other Financing Sources/(Uses)(12,264,644) (12,264,644) (10,623,801) 1,640,843
NET CHANGE IN FUND BALANCE (10,186,439) (9,719,734) (1,716,989) 8,002,745
FUND BALANCE, Beginning of year 23,798,492 23,798,492 23,798,492 -
FUND BALANCE, End of year $13,612,053 $14,078,758 $22,081,503 $8,002,745 See notes to required supplementary information
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, 2024
89
Variance
Budgeted Amounts with Final
Original Final Actual Budget
REVENUES
Sales taxes $3,726,016 $3,726,016 $3,806,551 $80,535
Charges for services 5,785,386 5,785,386 7,488,363 1,702,977
Investment income:.
Interest 35,000 35,000 33,052 (1,948)
Net decrease in fair value of investments - - (3,904) (3,904)
Other 162,050 162,050 162,550 500
Total Revenues 9,708,452 9,708,452 11,486,612 1,778,160
EXPENDITURES
Current:
Culture and recreation 6,619,982 6,619,982 7,107,757 (487,775)
Capital outlay 1,820,500 2,197,500 1,659,167 538,333
Debt service:
Principal retirement - - 182,550 (182,550)
Interest and fiscal charges - - 14,569 (14,569)
Contingency 500,000 100,000 - 100,000
Total Expenditures 8,940,482 8,917,482 8,964,043 (46,561)
REVENUES OVER/(UNDER)
EXPENDITURES 767,970 790,970 2,522,569 1,731,599
OTHER FINANCING SOURCES/(USES)
Sale of assets - - 1,518 1,518
Transfers out (1,717,203) (1,717,203) (1,717,203) -
Total other financing sources/(uses)(1,717,203) (1,717,203) (1,715,685) 1,518
NET CHANGE IN FUND BALANCE (949,233) (926,233) 806,884 1,733,117
FUND BALANCE, Beginning of year 1,008,233 1,008,233 1,008,233 -
FUND BALANCE, End of year $59,000 $82,000 $1,815,117 $1,733,117
See notes to required supplementary information
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GRANTS AND CONTRIBUTIONS FUND
FOR THE YEAR ENDED JUNE 30, 2024
90
Variance
Budgeted Amounts with Final
Original Final Actual Budget
REVENUES
Intergovernmental $2,827,700 $2,827,700 $2,135,677 $(692,023)
Investment income:.
Interest 25,000 25,000 24,514 (486)
Net decrease in fair value of investments - - (1,172) (1,172)
Other 560,000 560,000 33,631 (526,369)
Total Revenues 3,412,700 3,412,700 2,192,650 (1,220,050)
EXPENDITURES
Current:
General Government 650,000 650,000 - 650,000
Public Safety 354,400 354,400 75,431 278,969
Transit - - -
Culture and Recreation 40,000 40,000 113 39,887
Capital outlay 3,224,752 3,224,752 2,080,167 1,144,585
Contingency 500,000 500,000 - 500,000
Total Expenditures 4,769,152 4,769,152 2,155,711 2,613,441
REVENUES OVER/(UNDER)
EXPENDITURES (1,356,452) (1,356,452) 36,939 1,393,391
OTHER FINANCING SOURCES/(USES)
Transfers in 138,000 138,000 138,000 -
Transfers out - - (522,701) (522,701)
Total other financing sources/(uses)138,000 138,000 (384,701) (522,701)
NET CHANGE IN FUND BALANCE (1,218,452) (1,218,452) (347,762) 870,690
FUND BALANCE, Beginning of year 162,207 162,207 162,207 -
FUND BALANCE, End of year $(1,056,245) $(1,056,245) $(185,555) $870,690
See notes to required supplementary information
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
ARIZONA STATE RETIREMENT SYSTEM
LAST TEN FISCAL YEARS
91
2024 2023 2022 2021 2020
Measurement date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019
Town's proportion of the net pension
(assets) liability 0.12%0.12%0.12%0.12%0.13%
Town's proportionate share of the net
pension (assets) liability 19,655,601$ 19,916,374$ 15,876,526$ 21,464,093$ 18,808,834$
Town's covered payroll 15,901,116$ 14,545,595$ 13,511,313$ 13,793,013$ 13,630,224$
Town's proportionate share of the net
pension (assets) liability as a percentage
of its covered payroll 123.61%136.92%117.51%155.62%137.99%
Plan fiduciary net position as a
percentage of the total pension liability 75.47%74.26%78.58%69.33%73.24%
2019 2018 2017 2016 2015
Measurement date June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
Town's proportion of the net pension
(assets) liability 0.13%0.12%0.12%0.12%0.11%
Town's proportionate share of the net
pension (assets) liability 18,237,813$ 19,453,870$ 20,050,356$ 18,575,537$ 16,642,712$
Town's covered payroll 13,018,275$ 12,193,145$ 11,857,622$ 11,826,486$ 11,086,887$
Town's proportionate share of the net
pension (assets) liability as a percentage
of its covered payroll 140.09%159.55%169.09%157.07%150.11%
Plan fiduciary net position as a
percentage of the total pension liability 73.40%69.92%67.06%68.35%69.49%
See notes to required supplementary information
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM – POLICE
LAST TEN FISCAL YEARS
92
2024 2023 2022 2021
Measurement date June 30,2023 June 30, 2022 June 30, 2021 June 30, 2020
Total pension liability
Service cost $ 1,181,744 $ 1,373,511 $ 1,359,359 $ 1,418,920
Interest 5,450,177 5,155,618 4,928,984 4,573,136
Changes of benefit terms - - - -
6,412,956 1,479,536 (577,199) 1,073,763
Changes of assumptions or other inputs - 719,444 - -
(3,846,347) (3,082,329) (2,159,116) (2,104,146)
Net change in total pension liability 9,198,530 5,645,780 3,552,028 4,961,673
Total pension liability—beginning 76,438,334 70,792,554 67,240,526 62,278,853
Total pension liability—ending $ 85,636,864 $ 76,438,334 $ 70,792,554 $ 67,240,526
Plan fiduciary net position
Contributions—employer $ 1,446,816 $ 30,446,078 $ 3,343,850 $ 3,072,830
Contributions—employee 605,765 553,740 554,204 563,652
Net investment income 5,770,191 (3,122,413) 10,961,057 479,186
(3,846,347) (3,082,329) (2,159,116) (2,104,146)
Administrative expense (28,833) (56,065) (51,282) (39,077)
Other (735)- 5,595 (52,206)
Net change in plan fiduciary net position 3,946,857 24,739,011 12,654,308 1,920,239
Plan fiduciary net position—beginning 75,900,900 51,161,889 38,507,581 36,587,342
Plan fiduciary net position—ending $ 79,847,757 $ 75,900,900 $ 51,161,889 $ 38,507,581
Net pension (assets) liability—ending $ 5,789,107 $ 537,434 $ 19,630,665 $ 28,732,945
93.24%99.30%72.27%57.27%
Covered payroll $ 6,622,521 $ 7,265,499 $ 6,181,716 $ 6,672,512
87.42%7.40%317.56%430.62%
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
See notes to required supplementary information
93
2020 2019 2018 2017 2016 2015
June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
$ 1,552,240 $ 1,515,028 $ 1,638,736 $ 1,363,768 $ 1,224,807 $ 1,157,832
4,264,774 3,922,057 3,615,210 3,185,633 2,842,514 2,408,825
- - 435,327 3,164,555 - 444,387
(303,721) 136,020 247,905 (548,533) 1,312,293 (356,776)
1,627,934 - 747,786 1,902,904 - 3,014,125
(1,884,430) (1,588,615) (2,061,668) (1,106,968) (1,049,346) (1,304,993)
5,256,797 3,984,490 4,623,296 7,961,359 4,330,268 5,363,400
57,022,056 53,037,566 48,414,270 40,452,911 36,122,643 30,759,243
$ 62,278,853 $ 57,022,056 $ 53,037,566 $ 48,414,270 $ 40,452,911 $ 36,122,643
$ 2,624,761 $ 1,278,293 $ 1,811,735 $ 1,505,274 $ 1,669,125 $ 1,211,218
575,136 622,233 905,024 840,020 794,478 698,036
1,843,370 2,159,685 3,228,386 154,181 874,562 2,774,126
(1,884,430) (1,588,615) (2,061,668) (1,106,968) (1,049,346) (1,304,993)
(33,037) (33,570) (28,966) (22,586) (21,722) (22,342)
31,984 107,852 19,066 38,225 93,803 (93,142)
3,157,784 2,545,878 3,873,577 1,408,146 2,360,900 3,262,903
33,429,558 30,883,680 27,010,103 25,601,957 23,241,057 19,978,154
$ 36,587,342 $ 33,429,558 $ 30,883,680 $ 27,010,103 $ 25,601,957 $ 23,241,057
$ 25,691,511 $ 23,592,498 $ 22,153,886 $ 21,404,167 $ 14,850,954 $ 12,881,586
58.75%58.63%58.23%55.79%63.29%64.34%
$ 6,942,593 $ 7,209,721 $ 7,199,177 $ 7,355,092 $ 7,004,292 $ 6,021,786
370.06%327.23%307.73%291.01%212.03%213.92%
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM – DISPATCHERS
LAST TEN FISCAL YEARS
94
2024 2023 2022 2021
Measurement date June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020
Total pension liability
Service cost $ 16,408 $ 16,669 $ 22,257 $ 22,224
Interest 261,914 253,314 242,038 233,081
Changes of benefit terms - - -
110,346 42,782 75,279 18,688
Changes of assumptions or other inputs - 52,917 - -
(199,743) (195,826) (163,212) (139,459)
Net change in total pension liability 188,925 169,856 176,362 134,534
Total pension liability—beginning 3,721,151 3,551,295 3,374,933 3,240,399
Total pension liability—ending $ 3,910,076 $ 3,721,151 $ 3,551,295 $ 3,374,933
Plan fiduciary net position
Contributions—employer $ 2,218,919 $ 123,193 $ 138,372 $ 122,322
Contributions—employee 14,017 12,377 14,583 16,244
Net investment income 160,124 (66,048) 387,481 38,182
(199,743) (195,826) (163,212) (139,459)
Administrative expense (2,293) (1,214) (1,786) (1,478)
Other (2,051) - - (264)
Net change in plan fiduciary net position 2,188,973 (127,518) 375,438 35,547
Plan fiduciary net position—beginning 1,662,090 1,789,608 1,414,170 1,378,623
Plan fiduciary net position—ending $ 3,851,063 $ 1,662,090 $ 1,789,608 $ 1,414,170
Net pension (assets) liability—ending $ 59,013 $ 2,059,061 $ 1,761,687 $ 1,960,763
98.49%44.67%50.39%41.90%
Covered payroll $ 154,548 $ 158,877 $ 180,822 $ 210,542
38.18%1296.01%974.27%931.29%
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
See notes to required supplementary information
95
2020 2019 2018 2017 2016 2015
June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014
$ 30,922 $ 34,542 $ 32,541 $ 32,257 $ 52,754 $ 53,985
215,182 223,773 185,568 182,053 174,403 154,443
- (175,686) 395,457 14,504 - 29,545
124,217 (73,061) (12,524) (12,392) 14,554 (48,767)
61,495 - 85,035 64,514 - 174,536
(136,724) (141,910) (132,788) (119,180) (148,851) (68,874)
295,092 (132,342) 553,289 161,756 92,860 294,868
2,945,307 3,077,649 2,524,360 2,362,604 2,269,744 1,974,876
$ 3,240,399 $ 2,945,307 $ 3,077,649 $ 2,524,360 $ 2,362,604 $ 2,269,744
$ 120,338 $ 87,566 $ 77,331 $ 52,583 $ 64,005 $ 63,179
16,099 15,976 18,502 18,982 30,272 32,699
71,209 89,317 136,094 7,237 45,101 146,441
(136,724) (141,910) (132,788) (119,180) (148,851) (68,874)
(1,971) (2,051) (1,591) (1,423) (1,490) (1,151)
- (24) (8) (8) (926) -
68,951 48,874 97,540 (41,809) (11,889) 172,294
1,309,672 1,260,798 1,163,258 1,205,067 1,216,956 1,044,662
$ 1,378,623 $ 1,309,672 $ 1,260,798 $ 1,163,258 $ 1,205,067 $ 1,216,956
$ 1,861,776 $ 1,635,635 $ 1,816,851 $ 1,361,102 $ 1,157,537 $ 1,052,788
42.54%44.47%40.97%46.08%51.01%53.62%
$ 202,262 $ 201,687 $ 233,934 $ 245,274 $ 380,303 $ 387,839
920.48%810.98%776.65%554.93%304.37%271.45%
TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF PENSION CONTRIBUTIONS – ALL PENSION PLANS
LAST TEN FISCAL YEARS
96
2024 2023 2022 2021
Arizona State Retirement System:
Actuarially determined contribution 2,024,014$ 1,895,413$ 1,746,926$ 1,574,068$
Contributions in relation to the
actuarially determined contribution 2,024,014 1,895,413 1,746,926 1,574,068
Contribution deficiency (excess)- - - -
Town's covered payroll 16,824,722$ 15,901,116$ 14,545,595$ 13,511,313$
Contributions as a percentage
of covered payroll 12.03%11.92%12.01%11.65%
Public Safety Personnel Retirement System - Police:
Actuarially determined contribution 841,458$ 1,523,896$ 3,165,578$ 2,572,830$
Contributions in relation to the
actuarially determined contribution 3,341,458 1,523,896 30,216,213 3,072,830
Contribution deficiency (excess)(2,500,000) - (27,050,635) (500,000)
Town's covered payroll 7,649,618$ 6,622,521$ 7,265,499$ 6,181,716$
Contributions as a percentage
of covered payroll 11.00%23.01%43.57%41.62%
Public Safety Personnel Retirement System - Dispatchers
Actuarially determined contribution 163,919$ 183,062$ 125,878$ 136,575$
Contributions in relation to the
actuarially determined contribution 163,919 2,219,857 125,878 136,575
Contribution deficiency (excess)- (2,036,795) - -
Town's covered payroll 127,623$ 154,548$ 158,877$ 180,822$
Contributions as a percentage
of covered payroll 128.44%1436.36%79.23%75.53%
See notes to required supplementary information
97
2020 2019 2018 2017 2016 2015
1,579,300$ 1,523,859$ 1,418,992$ 1,314,421$ 1,286,552$ 1,207,362$
1,579,300 1,523,859 1,418,992 1,314,421 1,286,552 1,207,362
- - - - - -
13,793,013$ 13,630,224$ 13,018,275$ 12,193,145$ 11,857,622$ 11,826,486$
11.45%11.18%10.90%10.78%10.85%10.21%
2,552,903$ 2,548,626$ 2,485,191$ 1,679,568$ 1,554,131$ 1,354,630$
3,052,903 2,548,626 2,485,191 1,679,568 1,554,131 1,354,630
(500,000) - - - - -
6,672,512$ 6,942,593$ 7,209,721$ 7,199,177$ 7,355,092$ 7,004,292$
38.26%36.71%34.47%23.33%21.13%19.34%
126,199$ 124,108$ 87,996$ 77,830$ 54,083$ 64,005$
126,199 124,108 87,996 77,830 54,083 64,005
- - - - - -
210,542$ 202,262$ 201,687$ 233,934$ 245,274$ 380,303$
59.94%61.36%43.63%33.27%22.05%16.83%
TOWN OF ORO VALLEY, ARIZONA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2024
98
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 – BUDGETING AND BUDGETARY CONTROL
A.R.S. requires the Town to prepare and adopt a balanced budget annually for each
governmental fund. The Town Council must approve such operating budgets on or before the
third Monday in July. A.R.S. prohibits expenditures in excess of the amounts budgeted.
Expenditures may not legally exceed appropriations at the department level for the General
Fund or at the fund level for all other funds. In certain instances, transfers of appropriations
between departments or from the contingency account to a department may be made upon
Town Manager or Town Council approval, respectively.
NOTE 3 – 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. 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.
99
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
100
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101
GOVERNMENTAL FUNDS
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET – ALL NON-MAJOR GOVERNMENTAL FUNDS – BY FUND TYPE
JUNE 30, 2024
102
ASSETS
Cash and investments $633,972 $3,233,644 $3,867,616
Interest receivable 7,102 31,015 38,117
Intergovernmental receivable 425,986 - 425,986
Lease Receivable - 295,222 295,222
Total Assets $1,067,060 $3,559,881 $4,626,941
LIABILITIES
Accounts payable $129,950 $14,028 $143,978
Unearned revenue - 7,600 7,600
Total Liabilities 129,950 21,628 151,578
DEFERRED INFLOWS OF RESOURCES
Lease Related - 280,741 280,741
FUND BALANCES
Restricted 937,110 3,239,535 4,176,645
Committed - 17,977 17,977
Total Fund Balances 937,110 3,257,512 4,194,622
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $1,067,060 $3,559,881 $4,626,941
Special Revenue Capital Projects Funds
Total Non-Major
Governmental
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, 2024
103
REVENUES
Development impact fees $- $461,552 $461,552
Charges for Services - 38,225 38,225
Intergovernmental 4,221,036 22,042 4,243,078
Licenses, fees and permits 25,869 - 25,869
Fines, forfeitures and penalties 129,883 - 129,883
Investment income:
Interest 200,984 120,413 321,397
Net decrease in fair value of investments (4,112) (14,511) (18,623)
Other 766 - 766
Total Revenues 4,574,426 627,721 5,202,147
EXPENDITURES
Current:
General government - - -
Public safety 44,983 154 45,137
Highway and streets 2,293,792 78,765 2,372,557
Culture and recreation - 540 540
Capital outlay 3,921,615 994,342 4,915,957
Total Expenditures 6,260,390 1,073,801 7,334,191
REVENUES OVER/(UNDER) EXPENDITURES (1,685,964) (446,080) (2,132,044)
OTHER FINANCING SOURCES/(USES)
Insurance Recoveries 13,949 - 13,949
Transfers in/(out)1,500,000 (46,553) 1,453,447
Total Other Financing Sources (Uses)1,513,949 (46,553) 1,467,396
NET CHANGE IN FUND BALANCES (172,015) (492,633) (664,648)
FUND BALANCES, Beginning of year 1,109,125 3,750,145 4,859,270
FUND BALANCES, End of year $937,110 $3,257,512 $4,194,622
Special Revenue Capital Projects Funds
Total Non-Major
Governmental
104
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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.
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET – NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2024
106
ASSETS
Cash and investments $302,772 $121,920 $209,280 $633,972
Interest receivable 7,102 - - 7,102
Intergovernmental receivable 425,986 - - 425,986
Total Assets $735,860 $121,920 $209,280 $1,067,060
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $129,813 $128 $9 $129,950
Total Liabilities 129,813 128 9 129,950
Fund balances:
Restricted 606,047 121,792 209,271 937,110
Total Fund Balances 606,047 121,792 209,271 937,110
Total Liabilities and Fund Balances $735,860 $121,920 $209,280 $1,067,060
Federal Seizures
HURF and Forfeitures and Forfeitures Totals
State Seizures
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2024
107
REVENUES
Intergovernmental $4,221,036 $- $- $4,221,036
Licenses, fees and permits 25,869 - - 25,869
Fines, forfeitures and penalties - - 129,883 129,883
Investment income:
Interest 185,013 7,669 8,302 200,984
Net decrease in fair value of investments (4,112) - - (4,112)
Other 766 - - 766
Total Revenues 4,428,572 7,669 138,185 4,574,426
EXPENDITURES
Current:
Public safety - 37,482 7,501 44,983
Highway and streets 2,293,792 - - 2,293,792
Capital outlay 3,921,615 - - 3,921,615
Total Expenditures 6,215,407 37,482 7,501 6,260,390
OTHER FINANCING SOURCES/(USES)
Insurance recoveries 13,949 - - 13,949
Transfers in 1,500,000 - - 1,500,000
Total other financing sources/(uses)1,513,949 - - 1,513,949
NET CHANGE IN FUND BALANCES (272,886) (29,813) 130,684 (172,015)
FUND BALANCES, Beginning of year 878,933 151,605 78,587 1,109,125
FUND BALANCES, End of year $606,047 $121,792 $209,271 $937,110
State Seizures Federal Seizures
HURF and Forfeitures and Forfeitures Totals
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, 2024
108
Actual
REVENUES
Intergovernmental $4,334,608 $4,221,036 $(113,572)
Licenses, fees and permits 25,000 25,869 869
Fines, forfeitures and penalties - - -
Investment income:
Interest 70,000 185,013 115,013
Net decrease in fair value
of investments - (4,112) (4,112)
Other 3,000 766 (2,234)
Total Revenues 4,432,608 4,428,572 (4,036)
EXPENDITURES
Current:
Public safety - - -
Highway and streets 2,298,791 2,293,792 4,999
Capital outlay 4,170,000 3,921,615 248,385
Contingency 200,000 - 200,000
Total Expenditures 6,668,791 6,215,407 453,384
REVENUES OVER/
(UNDER) EXPENDITURES (2,236,183) (1,786,835) 449,348
OTHER FINANCING SOURCES/(USES)
Insurance recoveries - 13,949 13,949
Transfers in 1,500,000 1,500,000 -
Total other financing sources/(uses)1,500,000 1,513,949 13,949
NET CHANGE IN FUND BALANCE (736,183) (272,886) 463,297
FUND BALANCE, Beginning of year 878,933 878,933 -
FUND BALANCE, End of year $142,750 $606,047 $463,297
HURF
Budget
Variance
with
Budget
109
Actual Actual
$- $- $- $- $- $-
- - - - - -
85,000 - (85,000) 15,000 129,883 114,883
3,000 7,669 4,669 - 8,302 8,302
- - - - - -
- - - - - -
88,000 7,669 (80,331) 15,000 138,185 123,185
100,000 37,482 62,518 - 7,501 (7,501)
- - - - - -
- - - - - -
50,000 - 50,000 50,000 - 50,000
150,000 37,482 112,518 50,000 7,501 42,499
(62,000) (29,813) 32,187 (35,000) 130,684 165,684
- - - - - -
- - - - - -
- - - - - -
(62,000) (29,813) 32,187 (35,000) 130,684 165,684
151,605 151,605 - 78,587 78,587 -
$89,605 $121,792 $32,187 $43,587 $209,271 $165,684
State Seizures and Forfeitures Federal Seizures and Forfeitures
Budget Budget
Variance
with
Budget
Variance
with
Budget
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, 2024
110
Variance
with
Actual Budget
REVENUES
Intergovernmental $4,334,608 $4,221,036 $(113,572)
Licenses, fees and permits 25,000 25,869 869
Fines, forfeitures and penalties 100,000 129,883 29,883
Investment income:
Interest 73,000 200,984 127,984
Net decrease in fair value
of investments - (4,112) (4,112)
Other 3,000 766 (2,234)
Total Revenues 4,535,608 4,574,426 38,818
EXPENDITURES
Current:
Public safety 100,000 44,983 55,017
Highway and streets 2,298,791 2,293,792 4,999
Capital outlay 4,170,000 3,921,615 248,385
Contingency 300,000 - 300,000
Total Expenditures 6,868,791 6,260,390 608,401
REVENUES OVER/
(UNDER) EXPENDITURES (2,333,183) (1,685,964) 647,219
OTHER FINANCING SOURCES/(USES)
Insurance recoveries - 13,949 13,949
Transfers in 1,500,000 1,500,000 -
Total other financing sources/(uses)1,500,000 1,513,949 13,949
NET CHANGE IN FUND BALANCE (833,183) (172,015) 661,168
FUND BALANCE, Beginning of year 1,109,125 1,109,125 -
FUND BALANCE, End of year $275,942 $937,110 $661,168
Budget
Totals
111
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.
TOWN OF ORO VALLEY, ARIZONA
COMBINING BALANCE SHEET – NON-MAJOR CAPITAL PROJECT FUNDS
JUNE 30, 2024
112
ASSETS
Cash and investments $2,537,526 $257,888 $17,866 $420,364 $3,233,644
Interest receivable 24,870 4,096 111 1,938 31,015
Lease receivable - - - 295,222 295,222
Total Assets $2,562,396 $261,984 $17,977 $717,524 $3,559,881
LIABILITIES
Accounts payable $4,100 $3,630 $- $6,298 $14,028
Unearned revenue 7,600 - - - 7,600
Total Liabilities 11,700 3,630 - 6,298 21,628
DEFERRED INFLOWS OF RESOURCES
Lease Related - - - 280,741 280,741
FUND BALANCES
Restricted 2,550,696 258,354 - 430,485 3,239,535
Committed - - 17,977 - 17,977
Total Fund Balances 2,550,696 258,354 17,977 430,485 3,257,512
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $2,562,396 $261,984 $17,977 $717,524 $3,559,881
Townwide
TownwideGeneral
Impact Facilities
Impact Fees Fees Projects Totals
Roadway
Development
PAG/RTA
TOWN OF ORO VALLEY, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –
NON-MAJOR CAPITAL PROJECT FUNDS
YEAR ENDED JUNE 30, 2024
113
REVENUES
Development impact fees $304,746 $156,806 $- $- $461,552
Charges for services - - - 38,225 38,225
Intergovernmental - - - 22,042 22,042
Investment income:
Interest 69,997 13,547 841 36,028 120,413
Net decrease in fair value
of investments (11,443) (1,120) (81) (1,867) (14,511)
Total Revenues 363,300 169,233 760 94,428 627,721
EXPENDITURES
Current:
Public safety - 154 - - 154
Highway and streets 1,157 - - 77,608 78,765
Culture and recreation - 540 - - 540
Capital outlay - 600,000 - 394,342 994,342
Total Expenditures 1,157 600,694 - 471,950 1,073,801
REVENUES OVER/(UNDER)
EXPENDITURES 362,143 (431,461) 760 (377,522) (446,080)
OTHER FINANCING USES
Transfers out - (46,553) - - (46,553)
NET CHANGE IN FUND BALANCES 362,143 (478,014) 760 (377,522) (492,633)
FUND BALANCES, Beginning of year 2,188,553 736,368 17,217 808,007 3,750,145
FUND BALANCES, End of year $2,550,696 $258,354 $17,977 $430,485 $3,257,512
Townwide
General Townwide
Impact Facilities
Roadway
Impact Fees Fees Projects Totals
Development
PAG/RTA
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, 2024
114
Variance
with
Actual Budget
REVENUES
Development impact fees $286,810 $304,746 $17,936
Intergovernmental - - -
Charges for services - - -
Investment income:
Interest 15,000 69,997 54,997
Net decrease in fair value of investments - (11,443) (11,443)
Other - - -
Total Revenues 301,810 363,300 61,490
EXPENDITURES
Current:
General government - - -
Public safety - - -
Highway and streets 6,429 1,157 5,272
Culture and recreation - - -
Capital outlay - - -
Contingency 300,000 - 300,000
Total Expenditures 306,429 1,157 305,272
REVENUES OVER/(UNDER)
EXPENDITURES (4,619) 362,143 366,762
OTHER FINANCING SOURCES/(USES)
Sale of general capital assets - - -
Insurance recoveries - - -
Transfers in/(out), net - - -
Total other financing sources (uses)- - -
NET CHANGE IN FUND BALANCE (4,619) 362,143 366,762
FUND BALANCE, Beginning of year 2,188,553 2,188,553 -
FUND BALANCE, End of year $2,183,934 $2,550,696 $366,762
Budget
Townwide Roadway Development Impact Fees
115
Variance Variance
with with
Actual Budget Actual Budget
$172,314 $156,806 $(15,508) $- $- $-
- - - - - -
- - - - - -
4,700 13,547 8,847 100 841 741
- (1,120) (1,120) - (81) (81)
- - - - - -
177,014 169,233 (7,781) 100 760 660
- - - - - -
857 154 703 - - -
- - - - - -
3,000 540 2,460 - - -
600,000 600,000 - - - -
235,000 - 235,000 16,610 - 16,610
838,857 600,694 238,163 16,610 - 16,610
(661,843) (431,461) 230,382 (16,510) 760 17,270
- - - - - -
- - - - - -
(46,553) (46,553) - - - -
(46,553) (46,553) - - - -
(708,396) (478,014) 230,382 (16,510) 760 17,270
736,368 736,368 - 17,217 17,217 -
$27,972 $258,354 $230,382 $707 $17,977 $17,270
General Impact Fees
Budget
Townwide Facilities Projects
Budget
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, 2024
116
Variance
with
Actual Budget
REVENUES
Development impact fees $- $- $-
Intergovernmental 620,000 464,000 (156,000)
Charges for services - - -
Investment income:
Interest 100,000 716,598 616,598
Net decrease in fair value of investments - (69,737) (69,737)
Other 892,540 892,575 35
Total Revenues 1,612,540 2,003,436 390,896
EXPENDITURES
Current:
General government - 92,386 (92,386)
Public safety - - -
Highway and streets - - -
Culture and recreation 350,145 287,938 62,207
Capital outlay 23,515,716 18,199,380 5,316,336
Contingency 2,500,000 - 2,500,000
Total Expenditures 26,365,861 18,579,704 7,786,157
REVENUES OVER/(UNDER)
EXPENDITURES (24,753,321) (16,576,268) 8,177,053
OTHER FINANCING SOURCES/(USES)
Sale of general capital assets 100,000 71,733 (28,267)
Insurance recoveries 15,000 131,977 116,977
Transfers in/(out), net 8,500,000 8,500,000 -
Total other financing sources (uses)8,615,000 8,703,710 88,710
NET CHANGE IN FUND BALANCE (16,138,321) (7,872,558) 8,265,763
FUND BALANCE, Beginning of year 24,550,288 24,550,288 -
FUND BALANCE, End of year $8,411,967 $16,677,730 $8,265,763
General Government CIP
Budget
117
Variance Variance
with with
Actual Budget Actual Budget
$- $- $- $459,124 $461,552 $2,428
30,000 22,042 (7,958) 650,000 486,042 (163,958)
28,125 38,225 10,100 28,125 38,225 10,100
7,000 36,028 29,028 126,800 837,011 710,211
- (1,867) (1,867) - (84,248) (84,248)
- - - 892,540 892,575 35
65,125 94,428 29,303 2,156,589 2,631,157 474,568
- - - - 92,386 (92,386)
- - - 857 154 703
30,000 77,608 (47,608) 36,429 78,765 (42,336)
- - - 353,145 288,478 64,667
438,000 394,342 43,658 24,553,716 19,193,722 5,359,994
120,000 - 120,000 3,171,610 - 3,171,610
588,000 471,950 116,050 28,115,757 19,653,505 8,462,252
(522,875) (377,522) 145,353 (25,959,168) (17,022,348) 8,936,820
- - - 100,000 71,733 (28,267)
- - - 15,000 131,977 116,977
- - - 8,453,447 8,453,447 -
- - - 8,568,447 8,657,157 88,710
(522,875) (377,522) 145,353 (17,390,721) (8,365,191) 9,025,530
808,007 808,007 - 28,300,433 28,300,433 -
$285,132 $430,485 $145,353 $10,909,712 $19,935,242 $9,025,530
PAG/RTA Totals
Budget Budget
118
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119
MUNICIPAL DEBT SERVICE FUND
Debt Service Funds are created to account for the accumulation of resources for, and the payment of,
general long-term debt principal and interest.
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, the Series 2018 Excise Tax Revenue Obligations, the Series
2021 Parks and Recreation Excise Tax Revenue Obligations, and the 2021 Excise Tax PSPRS Pension
Obligation Bonds.
TOWN OF ORO VALLEY
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND
ACTUAL – MUNICIPAL DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2024
120
Variance
with
Actual Budget
REVENUES
Intergovernmental $25,146 $25,649 $503
Investment income:
Interest 60,000 66,529 6,529
Other 100,000 94,980 (5,020)
Total Revenues 185,146 187,158 2,012
EXPENDITURES
Debt service:
Principal retirement 2,668,242 2,668,242 -
Interest and fiscal charges 1,369,612 1,369,340 272
Contingency 100,000 - 100,000
Total Expenditures 4,137,854 4,037,582 100,272
REVENUES OVER (UNDER)
EXPENDITURES (3,952,708) (3,850,424) 102,284
OTHER FINANCING SOURCES
Transfers in 3,902,708 3,902,708 -
Total other financing sources 3,902,708 3,902,708 -
NET CHANGE IN FUND BALANCE (50,000) 52,284 102,284
FUND BALANCE, Beginning of year 273,718 273,718 -
FUND BALANCE, End of year $223,718 $326,002 $102,284
Municipal Debt Service
Budget
121
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.
122
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123
TOWN OF ORO VALLEY, ARIZONA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
2024 2023 2022 2021 2020
Governmental Activities:
Net investment in capital assets $195,184,523 $181,274,918 $179,219,389 $184,355,212 $152,604,355
Restricted 4,502,647 15,579,039 21,752,087 5,392,323 6,601,283
Unrestricted 17,270,579 13,237,690 1,104,482 335,300 (11,756,943)
Total governmental activities net position $216,957,749 $210,091,647 $202,075,958 $190,082,835 $147,448,695
Business-type Activities:
Net investment in capital assets $110,254,720 $95,456,678 $87,969,917 $84,049,866 $76,933,346
Restricted 14,427,924
Unrestricted 3,810,899 26,210,775 27,109,858 27,721,215 25,077,357
Total business-type activities net position $128,493,543 $121,667,453 $115,079,775 $111,771,081 $102,010,703
Primary Government:
Net investment in capital assets $305,439,243 $276,731,596 $267,189,306 $268,405,078 $229,537,701
Restricted 18,930,571 15,579,039 21,752,087 5,392,323 6,601,283
Unrestricted 21,081,478 39,448,465 28,214,340 28,056,515 13,320,414
Total primary government net position $345,451,292 $331,759,100 $317,155,733 $301,853,916 $249,459,398
2019 2018 2017 2016 2015
Governmental Activities:
Net investment in capital assets $141,506,384 $137,311,856 $133,414,691 $132,419,826 $133,800,218
Restricted 5,752,355 4,424,244 6,006,584 4,653,905 3,599,966
Unrestricted (10,619,492) (11,583,669) (15,397,688) (10,883,206) (9,493,907)
Total governmental activities net position $136,639,247 $130,152,431 $124,023,587 $126,190,525 $127,906,277
Business-type Activities:
Net investment in capital assets $73,170,068 $69,036,006 $66,755,370 $61,261,271 $54,858,448
Unrestricted 23,499,030 21,397,377 18,721,247 19,504,748 20,092,694
Total business-type activities net position $96,669,098 $90,433,383 $85,476,617 $80,766,019 $74,951,142
Primary Government:
Net investment in capital assets $214,676,452 $206,347,862 $200,170,061 $193,681,097 $188,658,666
Restricted 5,752,355 4,424,244 6,006,584 4,653,905 3,599,966
Unrestricted 12,879,538 9,813,708 3,323,559 8,621,542 10,598,787
Total primary government net position $233,308,345 $220,585,814 $209,500,204 $206,956,544 $202,857,419
Source: Town of Oro Valley Finance Department
124
TOWN OF ORO VALLEY, ARIZONA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING)
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Expenses
Governmental activities:
General government $22,885,243 $21,118,167 $28,083,397 $19,633,975 $17,210,855 $14,727,150 $12,639,867 $12,130,905 $11,888,794 $11,533,702
Public safety 21,516,996 20,002,651 8,232,307 18,291,873 19,416,010 18,958,436 17,683,197 22,251,172 16,123,500 16,587,168
Highways and streets 12,407,093 12,041,764 10,234,099 11,629,477 10,201,832 10,791,469 7,505,589 9,417,459 9,089,318 9,400,140
Transit 1,691,450 1,520,300 1,267,596 939,341 1,106,750 1,125,490 1,505,341 1,533,258 1,432,910 1,404,646
Culture and recreation 13,167,591 11,839,721 10,059,071 9,396,975 9,551,170 9,699,357 10,111,731 10,204,276 9,695,639 4,572,490
Interest on long-term debt 1,270,041 1,406,761 1,149,019 290,251 362,651 355,545 350,404 511,502 494,732 439,027
Total governmental activities expenses 72,938,414 67,929,364 59,025,489 60,181,892 57,849,268 55,657,447 49,796,129 56,048,572 48,724,893 43,937,173
Business-type activities:
Water 18,305,199 17,438,890 16,202,611 16,157,523 15,953,546 15,089,673 15,568,288 14,753,418 14,406,074 13,608,931
Stormwater 1,486,716 1,409,674 1,282,283 1,368,001 1,444,865 1,291,490 1,190,898 1,115,494 917,898 854,510
Total business-type activities expenses 19,791,915 18,848,564 17,484,894 17,525,524 17,398,411 16,381,163 16,759,186 15,868,912 15,323,972 14,463,441
Total primary government expenses $92,730,329 $86,777,928 $76,510,383 $77,707,416 $75,247,679 $72,038,610 $66,555,315 $71,917,484 $64,048,865 $58,400,614
Program Revenues
Governmental activities:
Charges for services
General government $4,714,761 $5,567,269 $5,519,724 $6,305,121 $5,205,012 $4,920,132 $5,084,396 $4,901,504 $4,096,927 $3,516,359
Public safety 290,374 245,285 341,334 340,430 157,312 173,488 128,651 138,075 168,808 29,097
Highways and streets 369,376 287,013 378,585 739,936 1,675,929 754,388 1,039,542 1,052,167 764,397 496,098
Transit - - - 463 110,309 138,125 119,536 100,052 88,684 72,783
Culture and recreation 8,579,288 7,003,209 7,033,797 5,236,021 4,391,639 5,014,018 5,096,804 4,611,576 4,373,693 1,108,734
Operating grants and contributions 3,237,521 4,533,920 4,040,118 8,171,190 3,621,830 4,669,814 4,949,928 4,664,197 5,503,530 5,070,396
Capital grants and contributions 7,512,562 9,258,047 8,493,664 25,566,365 16,338,347 8,302,441 5,529,831 6,749,407 3,602,656 2,456,727
Total governmental activities program revenues 24,703,882 26,894,742 25,807,222 46,359,527 31,500,378 23,972,406 21,948,688 22,216,978 18,598,695 12,750,194
Business-type activities:
Charges for services
Water 19,550,645 17,702,458 18,333,445 18,199,075 20,218,758 17,519,158 19,455,685 18,158,385 16,739,580 16,088,681
Stormwater 1,521,238 1,474,130 1,495,382 1,472,363 1,443,616 1,426,246 1,386,278 1,314,787 828,258 771,594
Operating grants and contributions - - - - - - - - 35,000.00 -
Capital grants and contributions 4,257,006 3,964,061 1,612,125 7,603,672 169,194 2,899,213 870,920 1,097,285 3,334,372 1,979,037
Total business-type activities program revenues 25,328,889 23,140,649 21,440,952 27,275,110 21,831,568 21,844,617 21,712,883 20,570,457 20,937,210 18,839,312
Total primary government program revenues $50,032,771 $50,035,391 $47,248,174 $73,634,637 $53,331,946 $45,817,023 $43,661,571 $42,787,435 $39,535,905 $31,589,506
Net (expense)/revenue:
Governmental activities $(48,234,532) $(41,034,622) $(33,218,267) $(13,822,365) $(26,348,890) $(31,685,041) $(27,847,441) $(33,831,594) $(30,126,198) $(31,186,979)
Business-type activities 5,536,974 4,292,085 3,956,058 9,749,586 4,433,157 5,463,454 4,953,697 4,701,545 5,613,238 4,375,871
Total primary government net expense $(42,697,558) $(36,742,537) $(29,262,209) $(4,072,779) $(21,915,733) $(26,221,587) $(22,893,744) $(29,130,049) $(24,512,960) $(26,811,108)
125
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes:
Sales $30,522,235 $30,163,507 $30,583,921 $24,056,793 $22,757,403 $22,924,400 $21,664,398 $19,767,720 $16,998,464 $16,132,159
Franchise 715,334 763,311 756,388 722,700 662,048 635,494 656,664 647,830 621,546 582,064
Unrestricted state revenue sharing 22,500,362 18,581,727 15,081,806 14,435,336 12,638,148 11,879,950 11,577,834 11,177,729 10,549,196 10,413,464
Investment earnings 1,790,527 1,389,962 (1,181,160) 136,789 1,098,267 1,132,215 74,542 68,435 238,210 216,175
Miscellaneous 92,569 - 150,100 - - - - - - -
Transfers (520,393) (1,848,196) (198,665) 2,522 2,472 2,581 2,847 2,942 3,030 3,119
Total governmental activities 55,100,634 49,050,311 45,192,390 39,354,140 37,158,338 36,574,640 33,976,285 31,664,656 28,410,446 27,346,981
Business-type activities:
Investment earnings 750,242 436,397 (861,433) 59 910,920 774,842 5,916 11,995 204,669 124,887
Miscellaneous 18,481 11,000 15,404 13,255 - - - - - -
Transfers 520,393 1,848,196 198,665 (2,522) (2,472) (2,581) (2,847) (2,942) (3,030) (3,119)
Total business-type activities 1,289,116 2,295,593 (647,364) 10,792 908,448 772,261 3,069 9,053 201,639 121,768
Total primary government $56,389,750 $51,345,904 $44,545,026 $39,364,932 $38,066,786 $37,346,901 $33,979,354 $31,673,709 $28,612,085 $27,468,749
Change in Net Position
Governmental activities 6,866,102 8,015,689 11,974,123 25,531,775 10,809,448 4,889,599 6,128,844 (2,166,938) (1,715,752) (3,839,998)
Business-type activities 6,826,090 6,587,678 3,308,694 9,760,378 5,341,605 6,235,715 4,956,766 4,710,598 5,814,877 4,497,639
Total primary government $13,692,192 $14,603,367 $15,282,817 $35,292,153 $16,151,053 $11,125,314 $11,085,610 $2,543,660 $4,099,125 $657,641
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)
126
2024 2023 2022 2021 2020
General fund
Nonspendable $686,393 $360,848 $1,279,770 $204,193 $45,553
Committed 15,051,151 12,116,181 12,813,742 9,883,194 10,485,304
Assigned - - - - -
Unassigned 6,343,959 11,321,463 16,296,912 22,321,155 10,368,691
Total general fund $22,081,503 $23,798,492 $30,390,424 $32,408,542 $20,899,548
All other governmental funds
Nonspendable $370,497 $512,728 $308,947 $157,497 $73,201
Restricted 4,502,647 17,289,074 29,043,570 5,392,323 5,471,396
Committed 1,651,557 841,463 5,749,810 2,602,097 805,717
Assigned 16,488,770 12,210,451 - 2,438,272 2,410,736
Unassigned (185,555) - - - -
Total all other
governmental funds $22,827,916 $30,853,716 $35,102,327 $10,590,189 $8,761,050
2019 2018 2017 2016 2015
General fund
Nonspendable $129,504 $141,676 $130,030 $97,269 $31,278
Committed 13,608,565 - - - -
Assigned 2,584,994 1,441,862 1,441,862 1,441,862 1,553,999
Unassigned 3,248,602 14,384,104 11,831,322 8,985,422 8,566,598
Total general fund $19,571,665 $15,967,642 $13,403,214 $10,524,553 $10,151,875
All other governmental funds
Nonspendable $105,403 $130,202 $132,538 $127,600 $149,348
Restricted 5,752,355 4,424,244 6,006,584 4,031,923 3,599,966
Committed 406,247 1,594,293 1,829,232 2,617,856 4,637,773
Assigned 3,611,045 2,209,618 1,716,361 1,340,991 1,421,593
Unassigned - (201,765) (237,769) (29,198) -
Total all other
governmental funds $9,875,050 $8,156,592 $9,446,946 $8,089,172 $9,808,680
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING)
127
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Revenues
Taxes $31,237,569 $30,926,818 $31,340,309 $24,779,493 $23,419,451 $23,559,894 $22,321,062 $20,415,550 $17,620,010 $16,714,223
Intergovernmental 32,129,316 29,910,099 27,545,642 31,780,507 30,840,092 24,375,992 21,634,143 22,118,633 19,488,066 17,714,991
Fines, forfeitures, & penalties 191,523 130,630 233,228 233,331 183,381 247,283 529,687 558,692 283,470 221,571
Licenses, fees, & permits 2,148,372 2,670,580 2,418,918 3,362,933 2,400,899 2,387,832 2,679,690 2,388,951 1,915,992 1,605,937
Charges for services 10,510,647 9,191,669 9,392,716 7,162,259 7,463,179 7,206,705 6,599,847 6,226,578 5,956,058 2,991,826
Contributions & donations 5,122 1,641,102 - - - - 133,928 150,000 149,513 -
Special assessments - - - 172,640 175,197 174,066 175,854 175,539 189,525 178,078
Development impact fees 461,552 419,210 605,406 1,256,426 980,302 1,039,763 1,346,402 1,348,528 795,471 439,637
Investment income 1,707,505 1,348,183 (1,091,168) 132,373 1,098,267 1,132,215 74,542 68,435 238,210 216,175
Other revenues 1,757,713 1,690,583 691,442 1,024,290 965,588 841,111 576,970 572,886 504,796 141,618
Total revenues $80,149,319 $77,928,874 $71,136,493 $69,904,252 $67,526,356 $60,964,861 $56,072,125 $54,023,792 $47,141,111 $40,224,056
Expenditures
General government $21,601,329 $20,615,414 $28,445,524 $17,610,897 $16,531,008 $14,424,463 $11,998,586 $11,098,844 $11,426,687 $10,862,553
Public safety 20,290,617 19,829,261 35,253,398 16,438,199 16,767,994 16,250,498 16,731,963 15,725,029 15,494,532 15,071,396
Highways & streets 2,372,557 2,123,019 1,779,889 1,795,203 1,904,698 2,999,923 3,092,143 2,993,402 2,754,413 2,602,321
Transit 1,697,772 1,530,444 1,328,131 930,687 1,110,444 1,150,322 1,536,294 1,528,654 1,432,910 1,404,646
Culture & recreation 11,794,125 10,788,607 9,284,693 8,363,664 8,735,394 8,880,611 9,399,598 9,433,339 9,097,752 4,078,817
Capital outlay 28,669,591 28,493,535 13,545,876 9,993,713 20,637,466 15,293,326 10,081,427 9,196,801 7,995,340 8,093,704
Debt service
Principal 3,340,192 3,250,712 1,034,249 1,146,027 1,262,487 1,124,885 1,304,226 1,075,466 897,637 649,840
Interest 1,475,552 1,496,692 557,218 290,251 365,454 327,421 356,661 314,914 336,510 436,010
Issuance cost on bonds - - 728,808 - - 35,000 - 67,959 104,533 -
Total expenditures $91,241,735 $88,127,684 $91,957,786 $56,568,641 $67,314,945 $60,486,449 $54,500,898 $51,434,408 $49,540,314 $43,199,287
Excess of revenues over/
(under) expenditures $(11,092,416) $(10,198,810) $(20,821,293) $13,335,611 $211,411 $478,412 $1,571,227 $2,589,384 $(2,399,203) $(2,975,231)
Other financing sources/(uses)
Proceeds from lease agreements - 349,652 - - - - - - 1,043,214 -
Proceeds from financed purchase agreements - 81,722 - - - - - - - -
Proceeds from subscription-based
information technology arrangements 1,634,518 582,440 - - - - - - - -
Payment to bond escrow agent - - - - - - - (1,171,447) (2,523,121) -
Issuance of long-term debt - - 39,095,000 - - 2,035,000 - 3,115,556 2,529,250 -
Premium on bonds issued - - 4,247,224 - - - - - - -
Sale of general capital assets 73,470 141,421 150,796 - - - - - - -
Insurance recoveries 162,032 51,229 20,957 - - - - - - -
Transfers in 15,540,708 22,916,769 6,401,665 2,747,343 2,046,718 4,407,180 3,342,890 2,953,072 1,872,026 4,326,627
Transfers out (16,061,101) (24,764,965) (6,600,330) (2,744,821) (2,044,246) (4,404,599) (3,640,043) (3,250,130) (1,868,996) (4,323,508)
Total other financing sources/(uses)1,349,627 (641,732) 43,315,312 2,522 2,472 2,037,581 (297,153) 1,647,051 1,052,373 3,119
Net change in fund balances $(9,742,789) $(10,840,542) $22,494,019 $13,338,133 $213,883 $2,515,993 $1,274,074 $4,236,435 $(1,346,830) $(2,972,112)
`
Debt service as a percentage
of noncapital expenditures 7.45%7.71%2.01%3.06%3.40%3.16%3.66%3.32%3.00%3.17%
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
PRINCIPAL SALES TAXPAYERS
CURRENT FISCAL YEAR AND NINE YEARS PRIOR
128
% of Total % of Total
Business Sales Tax Business Sales Tax
Taxpayer Type Rank Payments Taxpayer Type Rank Payments
Taxpayer A Utility $2,610,894 1 8.55%Taxpayer A Utility $1,813,674 1 11.24%
Taxpayer B Retail 1,972,061 2 6.46%Taxpayer I Accomodation 1,117,925 2 6.93%
Taxpayer C Construction 1,902,634 3 6.23%Taxpayer B Retail 879,702 3 5.45%
Taxpayer D Accomodation 1,682,326 4 5.51%Taxpayer C Retail 677,765 4 4.20%
Taxpayer E Retail 1,255,467 5 4.11%Taxpayer D Utility 463,623 5 2.87%
Taxpayer F Retail 1,220,261 6 4.00%Taxpayer F Utility 456,911 6 2.83%
Taxpayer G Utility 751,696 7 2.46%Taxpayer G Retail 419,305 7 2.60%
Taxpayer H Utility 696,219 8 2.28%Taxpayer H Retail 361,373 8 2.24%
Taxpayer I Retail 602,223 9 1.97%Taxpayer E Construction 313,305 9 1.94%
Taxpayer J Construction 534,622 10 1.75%Taxpayer J Retail 310,394 10 1.92%
$13,228,403 43.34%$6,813,977 42.22%
Sales Tax
Payments
Sales Tax
Payments
June 30, 2024 June 30, 2015
Source: Arizona Department of Revenue
TOWN OF ORO VALLEY, ARIZONA
TAXABLE SALES BY CATEGORY
LAST TEN FISCAL YEARS ($000’s)
129
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Construction $5,336 $5,311 $5,804 $3,893 $4,363 $4,191 $4,653 $4,295 $2,131 $3,199
Manufacturing 644 724 639 283 198 173 140 137 156 141
Transportation, Warehousing,
Communications & Utilities 4,347 3,921 3,771 3,593 3,288 3,335 3,384 3,171 3,133 3,068
Wholesale Trade 405 371 265 228 211 183 154 136 131 125
Retail Trade 11,695 11,381 12,058 10,890 9,830 8,430 7,733 7,086 6,844 5,808
Restaurants, Bars & Lodging 5,535 6,206 5,906 3,374 3,011 4,299 3,907 3,473 3,295 2,803
Finance, Insurance & Real Estate 427 376 383 313 442 1,114 646 562 443 270
Services 1,881 1,722 1,526 1,276 1,004 963 840 702 672 599
All Other 250 150 232 206 409 237 206 202 190 115
Cable Franchise 715 763 756 723 662 635 657 648 622 582
Total $31,235 $30,925 $31,340 $24,779 $23,418 $23,560 $22,320 $20,412 $17,617 $16,710
Town Sales Tax Rate*2.50%
Fiscal Year
2.00%2.50%2.50%2.50%2.50%2.50%2.50%2.50%2.00%
Source: Arizona Department of Revenue
* Note: .5% Additional Sales Tax Effective March 1, 2015
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
130
Fiscal Year
Ended Utility
June 30,Sales Tax Bed Tax Sales Tax Sales Tax
2015*2.50%6.00%4.00%4.00%6.10%
2016 2.50%6.00%4.00%4.00%6.10%
2017 2.50%6.00%4.00%4.00%6.10%
2018 2.50%6.00%4.00%4.00%6.10%
2019 2.50%6.00%4.00%4.00%6.10%
2020 2.50%6.00%4.00%4.00%6.10%
2021 2.50%6.00%4.00%4.00%6.10%
2022 2.50%6.00%4.00%4.00%6.10%
2023 2.50%6.00%4.00%4.00%6.10%
2024 2.50%6.00%4.00%4.00%6.10%
Town of Oro Valley
Construction
Pima County
Sales
Source: Arizona Department of Revenue
*Note:
.5% Additional Sales Tax Effective March 1, 2015
TOWN OF ORO VALLEY, ARIZONA
NET LIMITED AND FULL CASH ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
131
Fiscal Year Net Full Estimated
Ended Assessed Cash Assessed Full Cash
June 30,Value Value Value
2015 556,566,167 560,863,509 5,252,917,489 -
2016 572,696,599 593,299,222 5,616,655,680 -
2017 593,580,247 616,216,705 5,688,443,027 -
2018 612,684,205 633,479,221 6,058,189,523 -
2019 645,311,769 683,985,966 6,456,152,108 -
2020 678,873,768 730,293,104 6,937,292,543 -
2021 758,352,130 813,753,982 7,742,926,046 -
2022 786,505,278 838,744,317 8,023,965,026 -
2023 828,970,219 1,002,518,296 9,695,469,656 -
2024 873,032,771 1,209,485,802 11,785,654,511 -
Net Limited Total Outstanding
General Obligation
Bond Debt
Source: 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.
TOWN OF ORO VALLEY, ARIZONA
HISTORICAL AND PROJECTED EXCISE TAX COLLECTIONS
JUNE 30, 2024
132
Fiscal Year Fiscal Year
Revenue Source
Town Sales Tax $27,993,293 $27,993,025 $26,715,684 $26,449,853 $27,048,414 $21,109,373 $20,172,487 $20,454,936 $19,333,457 $17,568,254
Franchise Fees 765,000 715,800 715,334 763,311 756,388 722,700 662,048 635,494 656,664 647,830
Licenses & Permits 2,357,215 1,698,022 2,122,503 2,670,580 2,418,918 3,362,933 2,400,899 2,387,832 2,679,690 2,313,504
Fines 127,513 55,000 61,640 130,630 132,636 135,547 111,611 165,669 131,393 131,637
State-shared Sales Tax 7,876,399 7,300,876 7,281,900 7,077,517 6,637,079 5,462,343 4,694,491 4,469,774 4,210,168 3,989,179
State-shared Income Tax 10,647,744 10,276,631 12,779,482 9,082,721 6,174,401 6,580,331 5,870,231 5,370,779 5,422,693 5,329,864
Subtotal $49,767,164 $48,039,354 $49,676,543 $46,174,612 $43,167,836 $37,373,227 $33,911,767 $33,484,484 $32,434,065 $29,980,268
Parks and Recreation Sales Tax 3,966,910 3,879,440 3,792,744 3,713,654 3,535,507 2,947,420 2,584,916 2,469,464 2,330,941 2,199,466
Total $53,734,074 $51,918,794 $53,469,287 $49,888,266 $46,703,343 $40,320,647 $36,496,683 $35,953,948 $34,765,006 $32,179,734
Projected
Fiscal Year
2025
Fiscal Year
2026
Fiscal Year Fiscal Year
20182019 2017
Fiscal YearFiscal Year
2020
Audited
Fiscal Year
2023 20212022
Fiscal Year
2024
(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.
TOWN OF ORO VALLEY, ARIZONA
RATIO OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
133
Percentage
Fiscal Financed Subscription Note of Personal
Year Purchases Liabilities Payable Income
2015 $128,594 $- $- $1,000,000 $8,215,673 $925,000 $37,683,805 $118,862 $8,169,765 $56,241,699 3.25%1,331
2016 966,962 - - 700,000 7,716,638 780,000 34,517,647 80,423 8,879,907 53,641,577 2.95%1,231
2017 716,622 - - 350,000 9,341,559 640,000 30,804,327 40,814 8,284,407 50,177,729 2.69%1,146
2018 458,744 - - - 8,788,954 490,000 28,079,939 - 7,690,874 45,508,511 2.35%1,022
2019 254,070 - - - 10,051,867 335,000 30,135,034 - 7,079,179 47,855,150 2.37%1,059
2020 33,937 - - - 9,171,710 170,000 25,669,708 - 6,448,759 41,494,114 1.95%901
2021 - - - - 8,229,620 - 24,909,835 - 2,713,108 35,852,563 1.62%762
2022 769,691 - - - 50,463,247 - 20,476,968 - 2,404,213 74,114,119 3.15%1,537
2023 *827,109 69,254 466,860 - 47,362,076 - 16,231,628 - 2,087,126 66,507,939 2.55%1,360
2024 597,242 49,723 1,678,826 - 44,488,323 - 13,184,870 - 1,761,630 61,760,614 2.15%1,258
*Note:
2023 Excise Tax Bonds figure for Governmental Activities revised to include bond premium
Per
CapitaLeases
Loan
Payable
Business-Type Activities
Total
Primary
GovernmentLeases
Excise Tax
Bonds
Governmental Activities
Revenue
BondsBonds
Assessment
Special
Source: Town of Oro Valley Finance Department and U.S. Census Bureau
TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2024
134
Estimated Estimated Share
Debt Percentage of Overlapping
Governmental Unit Outstanding Applicable Debt
Pima County $48,445,000 7.60%$3,679,846
Amphitheater Unified School District 67,530,000 42.47%28,678,347
Golder Ranch Fire District 57,871,682 69.95%40,483,773
Subtotal, overlapping debt 72,841,966
Town of Oro Valley 46,814,114 100.00%46,814,114
Total estimated direct and overlapping debt $119,656,080
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.
TOWN OF ORO VALLEY, ARIZONA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
135
2024 2023 2022 2021 2020
Debt Limit $314,466,309 $260,654,757 $215,707,584 $211,576,035 $189,876,207
Total net debt applicable to limit - - - - -
Legal debt margin $314,466,309 $260,654,757 $215,707,584 $211,576,035 $189,876,207
Total net debt applicable to the limit
as a percentage of debt limit 0.00%0.00%0.00%0.00%0.00%
2019 2018 2017 2016 2015
Debt Limit $177,836,351 $164,704,598 $160,216,343 $154,257,798 $145,824,512
Total net debt applicable to limit - - - - -
Legal debt margin $177,836,351 $164,704,598 $160,216,343 $154,257,798 $145,824,512
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
TOWN OF ORO VALLEY, ARIZONA
CALCULATION OF LEGAL DEBT MARGIN
JUNE 30, 2024
136
Net Full Cash Assessed Valuation $1,209,485,802
Debt Limit - 20% of net full cash assessed valuation $241,897,160
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 $241,897,160
Debt Limit - 6% of net full cash assessed valuation $72,569,148
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 $72,569,148
Total legal debt margin $314,466,309
Water, Sewer, Light, Parks, Open Space and
Recreational Facility Bonds
All other general obligation bonds
Source: Pima County Assessor’s Officer
TOWN OF ORO VALLEY, ARIZONA
PLEDGED REVENUE COVERAGE
JUNE 30, 2024
137
Water Utility Revenue Bonds
Fiscal
Year
2015 $16,213,273 $2,995,560 $1,372,024 $4,367,584 3.71
2016 16,943,615 3,054,080 1,239,488 4,293,568 3.95
2017 18,169,402 3,054,060 870,547 3,924,607 4.63
2018 19,455,685 2,607,710 897,871 3,505,581 5.55
2019 17,519,158 3,933,228 839,823 4,773,051 3.67
2020 20,218,758 4,348,648 775,538 5,124,186 3.95
2021 22,304,186 3,544,910 661,932 4,206,842 5.30
2022 19,515,935 4,051,414 527,252 4,578,666 4.26
2023 19,531,841 4,245,340 449,395 4,694,735 4.16
2024 21,936,531 3,046,758 311,895 3,358,653 6.53
Governmental Revenue Bonds
Fiscal
Year
2015 $31,739,256 $479,440 $367,991 $847,431 37.45
2016 31,883,978 530,920 289,630 820,550 38.86
2017 31,739,256 334,940 281,475 616,415 51.49
2018 34,262,128 544,290 280,170 824,460 41.56
2019 36,414,803 763,772 284,213 1,047,985 34.75
2020 36,511,067 877,352 312,875 1,190,227 30.68
2021 37,951,105 942,090 273,354 1,215,444 31.22
2022 43,590,851 971,586 243,858 1,215,444 35.86
2023 48,018,775 2,895,660 1,435,398 4,331,058 11.09
2024 48,020,003 2,668,242 1,359,610 4,027,852 11.92
Coverage
Principal Interest Total CoverageRevenues
Debt Service
Debt Service
Gross
Revenues
Gross
Principal Interest Total
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
HISTORICAL AND PROJECTED WATER SYSTEM REVENUES, EXPENSES, DEBT SERVICE AND COVERAGE
LAST TEN FISCAL YEARS
138
Revenues:
Water revenues $16,252,902 $14,539,682 $14,406,542 $14,679,253 $13,764,702 $12,413,502 $13,586,667 $12,493,557 $12,018,429 $11,280,269
Water impact fees 2,367,405 1,818,383 1,167,086 4,100,556 - - - - - -
Water connection fees - - - - 810,689 621,106 816,045 816,353 544,852 591,045
Alternative water connection fees - - - - 1,627,435 1,246,838 1,638,175 1,638,792 1,094,460 1,172,170
Groundwater preservation fees 2,391,910 2,256,987 2,413,719 2,617,452 2,389,953 2,213,303 2,611,075 2,440,045 2,371,100 2,330,231
Other revenues 924,314 916,789 1,528,588 906,925 1,625,979 1,024,407 803,723 769,638 710,740 714,965
Interest income 725,801 426,923 (830,161) (1,211) 887,772 758,457 - 11,020 203,857 124,593
Total Revenues 22,662,332 19,958,764 18,685,774 22,302,975 21,106,530 18,277,613 19,455,685 18,169,405 16,943,438 16,213,273
Expenses:
Personnel 3,616,586 3,519,660 3,233,737 3,480,942 3,392,481 3,236,682 3,155,109 3,021,915 2,952,249 2,767,143
Operations & maintenance 5,109,857 5,037,212 4,414,647 4,133,238 4,288,975 3,445,511 3,838,409 4,719,579 5,059,998 4,530,436
CAP water costs 5,081,666 4,223,033 4,123,353 3,736,489 3,696,131 3,393,317 3,523,052 2,892,392 1,952,117 1,570,793
Total Expenses 13,808,109 12,779,905 11,771,737 11,350,669 11,377,587 10,075,510 10,516,570 10,633,886 9,964,364 8,868,372
Net water system revenues 8,854,223 7,178,859 6,914,037 10,952,306 9,728,943 8,202,103 8,939,115 7,535,519 6,979,074 7,344,901
Water supported debt service
2007 WIFA Loan - - - 2,198,236 306,657 310,866 311,000 311,130 311,256 311,377
2009 WIFA Loan - - - 1,310,973 147,425 149,175 149,226 149,275 149,322 149,367
2014 WIFA Loan 376,530 376,642 372,565 372,867 373,072 377,060 377,158 395,534 361,059 296,972
2005 Excise tax bonds - - - - - - - - - 152,516
2007 Excise tax bonds - - - - - - - 1,245,403 1,197,678 1,255,948
2012 Refunding bonds - 1,896,532 1,820,750 4,168,782 1,930,382 1,996,381 1,963,731 1,980,781 1,995,481 1,971,082
2013 Refunding bonds - - - - 1,010,000 1,024,645 1,024,073 1,033,428 1,022,420 1,046,558
2015 Refunding revenue obligations 149,356 148,640 148,678 148,666 149,924 152,339 150,259 25,101 17,116 -
2017 Refunding revenue obligations 1,621,774 1,622,426 1,623,122 1,623,896 1,624,758 1,658,306 235,873 - - -
2018 Excise tax revenue obligations 508,998 509,822 509,580 510,498 409,122 - - - - -
2021 Refunding revenue bonds 1,078,037 517,315 432,538 18,838 - - - - - -
2021 Refunding revenue bonds - - 24,778 11,081 - - - - - -
Total water supported debt service $3,734,695 $5,071,377 $4,932,011 $10,363,837 $5,951,340 $5,668,772 $4,211,320 $5,140,652 $5,054,332 $5,183,820
Debt service coverage 2.37 1.42 1.40 1.06 1.63 1.45 2.12 1.47 1.38 1.42
2017 2016 20152022202120242023202020192018
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
139
Fiscal Year Per Capita
Ended Personal Unemployment
June 30,Population Income Rate
2015 42,259 1,728,773,431 40,909 5.2%
2016 43,565 1,817,844,597 41,727 5.3%
2017 43,781 1,863,394,821 42,562 4.6%
2018 44,517 1,932,614,654 43,413 4.8%
2019 45,184 2,014,980,480 44,595 4.9%
2020 46,044 2,128,752,252 46,233 8.6%
2021 47,070 2,213,843,310 47,033 5.5%
2022 48,222 2,349,424,062 48,721 3.4%
2023 48,906 2,612,118,366 53,411 4.1%
2024 49,111 2,874,319,497 58,527 3.4%
Income
Personal
Source: U.S. Census Bureau, Arizona Commerce Authority, Arizona Employment statistics, and Pima Association of Governments
TOWN OF ORO VALLEY, ARIZONA
PRINCIPAL EMPLOYERS
CURRENT FISCAL YEAR AND NINE YEARS PRIOR
140
Employer Employees Rank Employer Employees Rank
Roche Tissue Diagnostics 1,800 1 Ventana Medical Systems 1,200 1
Oro Valley Hospital 700 2 Oro Valley Hospital 672 2
Simpleview 450 3 Town of Oro Valley 478 3
Town of Oro Valley 449 4 Amphitheater Public Schools 449 4
Amphitheater Public Schools 439 5 El Conquistador Tucson 337 5
Walmart 338 6 Fry's Food & Drug 272 6
El Conquistador Tucson 294 7 Walmart 226 7
Splendido at Rancho Vistoso 200 8 Splendido at Rancho Vistoso 185 8
Fry's Food & Drug 182 9 Securaplane 174 9
Casa de la Luz Hospice 155 10 Home Depot 143 10 ,
5,007 Total 4,136
June 30, 2015June 30, 2024
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
141
Function/Program 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Administration
Town Clerk 3.96 3.73 4.73 4.73 4.73 4.73 4.69 4.54 4.56 4.56
Town Manager 11.38 10.38 8.38 8.38 10.38 10.38 7.38 7.38 7.38 8.00
Human Resources 4.00 4.00 4.00 4.00 4.00 4.00 3.48 3.48 3.50 3.50
Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 3.00 3.00 3.00 2.00
Finance 6.20 7.20 8.20 7.20 8.00 8.00 7.00 7.00 7.00 7.00
Information Systems 18.80 16.80 15.80 13.80 9.00 9.00 8.00 7.00 7.00 7.00
Legal 7.00 7.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Development & Infrastructure Services 27.78 27.78 26.78 26.78 27.38 27.38 26.88 103.63 83.76 81.45
Parks & Recreation 68.56 67.08 63.06 63.10 63.10 63.10 60.78 48.02 49.36 36.20
Cultural Resources - - - - - - - - 0.20 -
Police
Civilians 31.73 31.73 30.73 30.25 31.25 31.25 30.25 31.25 30.25 30.25
Officers 107.00 107.00 104.00 106.88 106.88 101.88 104.88 101.88 102.88 102.88
Town Court 9.46 8.98 8.50 8.48 8.48 8.00 8.00 8.00 8.00 8.00
Public Works 76.30 75.71 71.37 70.89 70.29 70.29 65.79 - - -
Water Utility 40.48 40.48 40.48 40.48 39.48 39.48 39.48 39.48 38.48 37.48
Total 413.65 408.87 393.03 391.97 389.97 384.49 375.61 370.66 351.37 334.32
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
WATER UTILITY REVENUES BY USER TYPE
LAST TEN FISCAL YEARS
142
Fiscal Year
Ended
June 30,
2015 $7,649,136 $779,877 $981,545 $214,848 $271,815 $- $115,955 $1,267,093 $11,280,269
2016 8,103,644 778,915 1,129,741 50,479 310,609 - 114,427 1,530,107 12,017,922
2017 8,416,714 814,041 1,170,946 51,373 224,532 8,733 104,880 1,702,338 12,493,557
2018 8,990,121 860,124 1,371,555 61,504 520,324 13,735 103,126 1,666,178 13,586,667
2019 8,849,732 856,941 1,087,648 69,363 302,780 9,627 69,091 1,168,322 12,413,504
2020 9,798,411 925,233 1,193,423 65,007 345,149 8,787 85,600 1,343,092 13,764,702
2021 10,394,919 902,536 1,513,518 65,537 228,950 8,575 65,356 1,499,862 14,679,253
2022 10,287,598 974,823 1,322,881 66,053 378,582 8,682 100,890 1,267,033 14,406,542
2023 10,552,884 1,034,275 1,298,563 82,649 297,443 41,631 82,598 1,149,640 14,539,682
2024 11,658,979 1,101,693 1,771,471 137,029 147,152 16,566 126,185 1,293,827 16,252,902
TotalResidentialCommercialIrrigation
Irrigation
Reclaimed Construction
Construction
Reclaimed Turf
Turf
Reclaimed
Source: Town of Oro Valley Water Utility Department
TOWN OF ORO VALLEY, ARIZONA
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
143
Function/Program 2023 2022 2021 2020 2019 2018 2017 2016 2015
Police
Burglaries 51 32 49 41 42 50 77 71 85 77
Citations (traffic)2,606 2,752 2,987 3,516 2,681 3,117 2,992 3,446 3,890 4,486
Investigations 860 928 977 1,164 932 963 915 818 824 832
Total arrests 1,693 1,359 1,385 1,438 1,251 1,488 1,786 1,458 1,598 1,721
Thefts 555 529 544 534 501 504 567 493 586 500
Development & Infrastructure Services
Street resurfacing (miles)74 71 69 54 51 88 44 89 92 101
Parks & Recreation
Recreation programs held annually 155 112 97 45 105 96 73 55 52 38
Months of public pool operations 12 11 12 11 12 12 12 12 12 12
Parks maintenance staff hours worked 25,912 21,145 19,677 18,720 18,220 18,311 17,842 15,463 15,083 16,255
Water
New connections 198 186 183 505 273 264 331 340 176 202
Total connections 21,498 21,300 21,149 20,966 20,461 20,188 19,924 19,588 19,355 19,179
Transit
Total route miles 654,173 625,554 593,117 350,248 455,777 454,277 468,346 568,657 529,170 392,071
Passengers 66,768 61,447 56,001 28,686 39,902 47,847 49,474 51,131 45,202 39,102
2024
Source: Town of Oro Valley Finance Department
TOWN OF ORO VALLEY, ARIZONA
WATER RATES
LAST TEN FISCAL YEARS
144
Fiscal Year
Ended
June 30,
2015 14.19 2.27 3.10 4.23 5.76 0.90 14.19
2016 14.19 2.32 3.19 4.40 6.05 0.90 14.19
2017 14.62 2.34 3.25 4.53 6.29 0.90 14.62
2018 16.45 2.34 3.25 4.53 6.29 0.90 14.62
2019 18.26 2.34 3.25 4.53 6.29 0.90 14.62
2020 18.26 2.34 3.25 4.53 6.29 0.90 14.62
2021 18.26 2.34 3.25 4.53 6.29 0.90 14.62
2022 18.99 2.40 3.35 4.80 6.70 0.90 14.62
2023 19.94 2.52 3.52 5.04 7.04 0.90 14.62
2024 21.14 2.65 3.88 6.05 8.80 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 Department
TOWN OF ORO VALLEY, ARIZONA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
145
Function/Program 2023 2022 2021 2020 2019 2018 2017 2016 2015
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 83 79 81 84 84 78 78 72 77 74
Other fleet 64 66 57 41 42 46 65 67 44 45
Development & Infrastructure Services
Streets (miles)439 431 430 421 421 421 421 421 421 421
Streetlights 104 103 95 95 95 95 95 95 95 95
Traffic signals 22 22 22 22 22 22 22 19 19 19
Parks & Recreation
Acreage 651 651 449 449 449 449 449 448 448 448
Playgrounds 3 3 3 3 3 2 2 2 2 2
Baseball/softball diamonds 7 7 7 7 7 7 7 7 7 7
Community centers 1 1 1 1 1 1 1 1 1 1
Golf course holes 45 45 45 36 45 45 45 45 45 45
Tennis courts 31 31 31 31 32 32 32 32 32 32
Swimming pools 2 2 2 2 2 3 4 4 4 4
Water
Number of Wells 18 18 18 18 18 19 20 20 20 20
Reservoir Storage Capacity 11 11 11 11 11 11 11 11 12 12
Number of Booster Stations 26 26 26 26 26 26 26 26 27 27
Transit
Transit vans 4 5 6 6 7 7 7 4 4 7
Transit mini buses 26 24 24 23 21 21 21 22 22 19
2024
Source: Town of Oro Valley Finance Department
146
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