HomeMy WebLinkAboutFinancial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/2011 TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30,2011
11000 North La Canada Drive—Oro Valley, Arizona 85737-7015
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
Prepared by:
Finance Department
Stacey Lemos, CPA
Finance Director
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TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal i
Organization Chart viii
List of Town Officials ix
GFOA Certificate of Achievement x
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
(Required supplementary information) 5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Assets 19
Statement of Activities 20
Fund Financial Statements:
Balance Sheet—Governmental Funds 24
Reconciliation of the Balance Sheet—
Governmental Funds to the Statement of Net Assets 27
Statement of Revenues, Expenditures and Changes in Fund Balances—
Governmental Funds 28
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances— Governmental Funds to the
Statement of Activities 31
Statement of Net Assets—Proprietary Funds 32
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS (Cont'd)
FINANCIAL SECTION (Cont'd) Page
BASIC FINANCIAL STATEMENTS (Concl'd)
Statement of Revenues, Expenses and Changes in Fund Net Assets—
Proprietary Funds 34
Statement of Cash Flows—Proprietary Funds 36
Notes to Financial Statements 37
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES —BUDGET AND ACTUAL
(Required Supplementary Information)
General Fund 62
Highway User Fund 63
Note to Required Supplementary Information 64
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet—All Non-Major Governmental Funds
By Fund Type 68
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances—All Non-Major Governmental Funds—By Fund Type 70
Special Revenue Funds:
Combining Balance Sheet 74
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 76
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances—Budget and Actual 78
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS (Cont'd)
FINANCIAL SECTION (Concl'd) Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES (Concl'd)
Debt Service Fund:
Combining Balance Sheet 86
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 87
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balance—Budget and Actual 88
Capital Projects Funds:
Combining Balance Sheet 92
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 94
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances—Budget and Actual 96
STATISTICAL SECTION
Financial Trends:
Net Assets by Component 103
Changes in Net Assets 104
Fund Balances of Governmental Funds 106
Changes in Fund Balances of Governmental Funds 108
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
TABLE OF CONTENTS (Concl'd)
STATISTICAL SECTION (Concl'd) Page
Revenue Capacity:
Principal Employers 110
Principal Sales Taxpayers 111
Taxable Sales by Category 112
Direct and Overlapping Sales Tax Rates 113
Debt Capacity:
Ratio of Outstanding Debt by Type 114
Direct and Overlapping Governmental Activities Debt 115
Legal Debt Margin Information 116
Calculation of Legal Debt Margin 117
Pledged-Revenue Coverage 118
Demographic and Economic Information:
County-Wide Demographic and Economic Statistics 119
Operating Information:
Full-Time Equivalent Town Employees by Function 120
Water Utility Revenues by User Type 121
Operating Indicators by Function 122
Water Rates 123
Capital Assets Statistics by Function 124
INTRODUCTORY SECTION
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(L/UN DED M
December 1, 2011
Honorable Mayor, Members of Town Council and
Citizens of the Town of Oro Valley, Arizona:
State law mandates that cities publish a complete set of financial statements presented in conformity
with accounting principles generally accepted in the United States of America and audited in
accordance with auditing standards generally accepted in the United States of America by a certified
public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby
issue the comprehensive annual financial report of the Town of Oro Valley, Arizona (Town) for the
fiscal year ended June 30, 2011.
This report consists of management's representations concerning the finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all of
the information presented in this report. To provide a reasonable basis for making these
representations, management of the Town has established a comprehensive internal control
framework that is designed both to protect the Town's assets from loss, theft, or misuse and to
compile sufficient reliable information for the preparation of the Town's financial statements in
conformity with accounting principles generally accepted in the United States of America. Because
the cost of internal controls should not outweigh their benefits, the Town's comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free of material misstatement. As management, we
assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all
material respects.
The Town's financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified
public accounting firm. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the Town for the fiscal year ended June 30, 2011, 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 unqualified opinion that the Town's financial statements for the fiscal year
ended June 30, 2011, are fairly presented in conformity with accounting principles generally
accepted in the United States of America. The independent auditors' report is presented as the first
component of the financial section of this report.
Accounting principles generally accepted in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial statements
in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The Town of Oro
Valley's MD&A can be found immediately following the report of the independent auditors.
1
PROFILE OF THE TOWN
The Town of Oro Valley was incorporated in 1974. It is located in northeastern Pima County, six
miles north of Tucson. The Town currently occupies a land area of 34.95 square miles and serves a
population of 41,011 per the 2010 U.S. Census count. The population of Oro Valley has increased
38.1% since the 2000 population of 29,700.
Based on the 2010 Census data, Oro Valley has a median household income of$71,628, compared to
the median household income for the state of Arizona of $50,296. Oro Valley residents enjoy a
comfortable hometown feel with a strong family orientation, excellent education system and
abundant opportunities in a safe environment.
The Town of Oro Valley operates under the Council-Manager form of government. Policymaking
and legislative authority is vested in the Town Council, which consists of a Mayor and six Council
Members. Council Members are elected to four-year staggered terms. The citizens of Oro Valley
elect the Mayor. The Council, from among its members, selects the Vice-Mayor. The Town Council
is responsible, among other things, for the adoption of local ordinances, budget adoption, the
development of citizen advisory committees, the hiring and removal of the Town Manager, the
Police Chief, Town Attorney and Town Magistrate. The Town Manager is responsible for
implementation of the policies of the Town Council. The Town Manager appoints all other
department heads except those mentioned above under Town Council responsibilities.
The Town of Oro Valley provides a full range of services including police protection; the
construction and maintenance of streets and related infrastructure; the provision of water and
stormwater services; public transportation services; recreational activities, a public library and
cultural events. In addition to general government activities, the governing body is financially
accountable for the Municipal Property Corporation; therefore, this activity is included in the
reporting entity. Additional information in regards to the Municipal Property Corporation can be
found in Note 1 in the notes to the basic financial statements.
As with all cities in the State of Arizona, the Town of Oro Valley is required to comply with Article
IX, Section 20 (1) of the Arizona Constitution, which sets limits on the Town's legal budget capacity.
The Town currently operates under the Alternative Expenditure Limitation — Home Rule Option.
This option allows the Town Council to establish the budgetary limits locally, rather than being
restricted by the State-imposed expenditure limitation. The voters must authorize this option every
four years. It was last authorized by the citizens of Oro Valley in March of 2010.
The annual operating budget serves as the foundation for the Town's financial planning and control.
The objective of these budgetary controls is to ensure compliance with legal provisions embodied in
the annual operating budget approved by the Town Council. The Town's proposed operating budget
is presented to the Town Council for review throughout the budget cycle starting in January and
approved in June. The Town Council is required to hold a public hearing on the proposed budget and
to adopt the final budget by no later than the second Monday in August. Budget amendments
requiring the approval of the Town Council include the following: budget transfers between funds;
transfers to fund additional personnel or increased expenditures as a result of personnel
reclassifications; transfers that would reduce or eliminate funding for items designated in the adopted
Capital Improvement Plan; and transfers that would reduce or eliminate funding for debt service. All
other operational budget amendments that involve transfers between line items or expenditure
categories require approval by the Town Manager.
11
MAJOR INITIATIVES AND ACCOMPLISHMENTS FOR THE YEAR
Oro Valley's Strategic Plan was revised during FY 2010/11 and includes the three main focus areas
listed below. Also shown below are the Town's accomplishments in these areas during FY 2010/11.
• Leadership and Communication
Council and management are focused on efforts to build trust through effective public
outreach and communication, create an environment conducive to effective dialogue
among the Council and staff, and maintain strong intergovernmental relationships.
o Improved integration of AgendaQuick, the agenda management system, with
Granicus, the video streaming system, to streamline the agenda packet and public
access process
o Held first ever joint Council meetings with the Town of Marana to further the concept
of joint marketing, branding and promotion of the northwest Pima County areas
o Launched a redesigned Community Academy program geared toward increasing the
public's knowledge about the Oro Valley town government
o Enhanced the Town's financial reporting with the implementation of the online
Financial Dashboards which show monthly updates of the town's overall financial
condition
o Implemented the NeoGov software system to streamline the employee recruitment
and hiring process
o The Water Utility performed 178 residential water use audits geared toward
encouraging customers to save water
• Finance and Economic Development
The Town will continue to implement sound financial management policies and uphold
our fiduciary duty to the residents of Oro Valley. Beyond fiscal responsibility, the Town
is also committed to facilitating the expansion of the local economy. Commercial
business growth, and the Town's continued success in attracting high-tech and bio-
science industry, point the way toward a sustainable model for economic development.
o Increased liquor license application fees to cover actual costs of processing
applications
o Approved the new 2011 Community Economic Development Strategy (CEDS)
o Launched the Dine Oro Valley campaign to highlight local restaurants
o Conducted the first ever Economic Summits with local business and education sector
leaders to seek input on how the Town can stimulate local economic development
and support local business efforts
o Streamlined the commercial development review processes by integrating plan
review and permitting processes to provide customers a one-stop shop for new
construction to get new businesses open sooner
o Created new Conceptual Design Review Board (CDRB) by consolidating several
Town development review boards/commissions into one for quicker approval of
commercial design plans
o Increased the local utility sales tax from 2%to 4%to generate an additional $1.4
million annual and further diversify the Town's revenue base
o Continued funding allocated to regional economic development and tourism partner
agencies, the Metropolitan Tucson Convention and Visitors Bureau (MTCVB) and
Tucson Regional Economic Opportunities (TREO), for attraction and tourism
benefits to the Town
o Diversified Town invested funds with an investment management firm resulting in
increased earnings
111
• Community Infrastructure
Community infrastructure encompasses both the social and physical factors that
determine a community's strength. The Town's investment in both social and physical
infrastructure creates the complex network of facilities, programs and services that are
referred to a quality of life. The Town of Oro Valley strives for excellence in the
provision of community services, the development of social relations and the construction
and maintenance of the built environment.
o Approved an intergovernmental agreement (IGA) with the City of Tucson to deliver
Central Arizona Project (CAP)water to the Town of Oro Valley
o Completed the Town energy efficiency and solar project, which received a national
recognition award for innovation
o Installed grant funded electric vehicle charging stations at the Town Hall campus
o Completed 14.81 lane miles of road overlay treatments and crack-sealed 120 lane
miles of paved streets
o Coyote Run Transit Service increased productivity from 2.0 to 2.1 passengers/hour,
provided 9,000 service hours and logged 133,000 miles
o Coyote Run Transit Service partnered with the Regional Transportation Authority
(RTA) to provide an alternative Sun Shuttle transportation service, eliminating all
previous trip denials
o Completed over$2 million in drainage improvement projects throughout the Town
o Obtained a $25,000 grant to construct an accessible playground at James D. Kriegh
Park
o The Oro Valley Police Department Citizen Volunteer Assistance Program members
contributed 16,964 volunteer hours
o The Oro Valley Police Department received nearly $300,000 in grants to purchase
equipment and provide service to the community
o The Oro Valley Police Department opened a new substation to serve as an emergency
operations center in the Oro Valley Marketplace shopping center
ECONOMIC CONDITIONS AND OUTLOOK
As has been the case over the past several years as the Town has managed through the "Great
Recession," FY 2010/11 was a year filled with challenges and opportunities. Hints of an economic
silver lining have emerged. It appears that the Town hit bottom with revenue losses in FY 2011 as
the State of Arizona and the Town of Oro Valley slowly emerge from the worst economic downturn
since the Great Depression. However, there continues to be one point of agreement among
economists looking forward to the future: economic recovery will be slow. Cities and towns around
the country are continuing to adjust to new, lower levels of revenues that, in many cases, have
reverted back to levels not seen since 2005. This is certainly the situation facing the Town of Oro
Valley. However, the bridging strategies used to balance the budget the last several years, focusing
on strategic reductions in service levels, paying off bond debt and the cautious use of reserves, have
positioned the Town of Oro Valley better than most cities and towns in Arizona.
In Arizona, cities and towns are reliant upon the state for a major portion of their revenue in state
shared revenues. For Oro Valley, state shared revenues comprise about 1/3, or just over $8.1 million,
of the Town's General Fund budget. Therefore, the state's financial condition plays a significant role
in the economic health of its local governments. As the state struggled to close its FY 2010/11
budget deficit and provide a balanced budget for FY 2011/12, local governments saw significant
impacts for the provision of state services shifted to the local level of counties and cities, including
over $300,000 in Oro Valley's share of Highway User Revenue Funds (HURF) swept to partially
fund the state Department of Public Safety and Department of Transportation.
iv
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Town
operates.
Local Economy.
The Town continues to provide services and programs without a property tax to fund operations. As
such, similar to other Arizona municipalities, the Town is dependent upon state shared revenues and
local sales tax as major sources of operating revenue, accounting for approximately 82% of total
General Fund revenue for FY 2010/11. State shared revenues encompass a proportionate share of
state sales, state income and vehicle license taxes which are distributed based on the Town's
population compared to all other incorporated cities and towns in Arizona. Oro Valley's greatest
challenge is that while population is growing, it is growing at a slower rate than some of the other
communities in the state. This has translated into a decreased proportionate share in the past.
Currently, the Town is holding a steady population percentage in relationship to the rest of the state
at approximately 0.82%.
Locally, we found ourselves in the midst of 27 straight months of collective sales tax decline as the
Town prepared its 2011/12 budget. The Town continued to see declines in residential building
permits during FY 2010/11 as local construction activity seems to have bottomed out in the area.
The Town issued only 47 new single family residential (SFR) building permits for FY 2010/11,
down from 65 SFR permits issued in FY 2009/10. This Fdeclining construction environment has
resulted in local construction sales tax collections reaching historic lows during FY 2010/11,
bringing in only $1.8 million, down significantly from FY 2007/08. when collections peaked at $7.6
million. During this same timeframe, other sales tax categores, such as retail, utilities and
restaurant/bar, have remained level or slowly and steadily increased, but nowhere near the levels
necessary to offset the losses seen from construction taxes. The chart below is a look at the past
three years' local sales tax activity by sector:
Oro VaSales Tax Activity by Sector- FY 09 thru FY 11
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Utility Taxes Retail Taxes Restaurant/Bar Construction
Taxes Taxes
0 FY 08/09 FY 09/10 FY 10/11
In an effort to bolster local revenues, the Town Council is focusing on various initiatives to stimulate
the local economy, market and brand Oro Valley as an ideal place to do business, annex beyond the
Town's existing boundaries, and diversify the Town's revenue base.
v
For the immediate future, as the forecasted revenues for the Town remain flat, efforts to reduce
recurring expenditures have been successful and have consisted of the following:
• Eliminating positions when vacancies occurred
• Using available cash reserves to pay off outstanding bonds to reduce debt service costs
• Reducing long-term utility costs through energy efficiency upgrades and the installation of
solar photovoltaic panels at the Town Hall campus
• Merging several departments together into consolidated departments
Long-term financial planning.
Oro Valley's financial policies are balanced on sound financial reserves and conservative, yet
realistic, revenue growth forecasts for the foreseeable future. The potential for State legislative
impacts to revenue-sharing or local revenues and additional demands for essential Town services
remain. The Town also cannot avoid the increasing budget pressures due to aging infrastructure
replacement needs, deferred replacement of the tools needed to do our jobs (i.e. vehicles and
computers), the inability to provide employee pay increases over the past three years and projected
increases in employee pension and other benefit costs. These demands must be balanced with the
expectations of slow economic recovery, limited growth potential for state shared revenues and
increased demand for Town services in many areas.
These factors will ultimately lead the Town to further evaluate its core services and identify whether
to continue in the business of providing certain programs and services. Some of these preliminary
discussions occurred during the most recent budget process concerning the operations of the Oro
Valley Library and the Coyote Run Transit Service. The upcoming FY 2011/12 is the last year of a
five-year agreement with the Pima County Library District (PCLD) that provides for the Town to
operate its library as an affiliate of the PCLD, where the Town provides half of the funding for the
library budget from Town General Funds (approximately $550,000), and the PCLD provides the
other half of the funding for the library budget from its Pima County Library District property tax
revenues. Library agreement negotiations will soon commence with the PCLD with the goal of
seeking a greater financial benefit for the Town in the future.
In addition, the Town continues to work with the Regional Transportation Authority (RTA)to deliver
local transit services in a more cost efficient manner, reducing the drain on local funds in the future.
By finding ways to reduce or eliminate structural budget deficits caused by an excess of recurring
expenditures over incoming revenues, the Town will be poised to address its looming deferred needs
sooner rather than later.
In the meantime, the Town continues to maintain strong investment grade ratings on its outstanding
bonds, rated "AA-" by both Standard and Poor's and Fitch Ratings. This is largely achieved by the
Council's goal of continuing to diversify the Town's revenue base and maintaining strong fund
balance reserves in the General Fund, currently at $11 million, or 42% of FY 2011/12 adopted
expenditures. This is well above the Council-adopted policy threshold of 25% of adopted
expenditures.
The next several years will likely be focused on increased attention to local economic development
utilizing re-engineered and innovative approaches. Preserving strong contingency reserves within all
of our Town funds is a philosophical and operational cornerstone. We will continue to communicate
the Town's budget performance to our residents and the Mayor and Town Council on a monthly
basis.
vi
AWARDS AND ACKNOWLEDGMENTS
Award. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Oro
Valley for its comprehensive annual financial report for the year ended June 30, 2010. This was the
seventeenth consecutive year that the Town has achieved this prestigious award. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
Acknowledgments. The preparation of this Comprehensive Annual Financial Report could not have
been accomplished without the efficient and dedicated services of the entire staff of the Finance
Department who assisted and contributed in its preparation. We thank the Mayor and members of
the Town Council for their interest and support in planning and conducting the financial affairs of the
Town in a responsible and progressive manner.
Respectfully submitted,
Air
Greg Cato , ICMA-CM Stacey Lem , CPA
Interim Tiwn Manager Finance Dir for
vii
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Organizational Chart
-06m30,41,,
OroValley Residents
Town Council
A d
Bopointeards&
Commissions
Town
Manager
Assistant
Communications TownEconomic
Mana er Development
9
Clerk IT Water PRL&CR DIS Human Finance Chief of Town Town
Utility Resources Police Attorney Magistrate
GIS UtilityParks& Development Personnel Procurement Field Civil
Services Administration Recreation Services Services Services
Planning& Infrastructure Budgeting Prosecution
Technical Engineering Library services Safety& Support
Risk
Services Management Accounting Services
Operations Cultural
Business Resources
Application&
Development
viii
TOWN OF ORO VALLEY, ARIZONA
LIST OF TOWN OFFICIALS
ELECTED OFFICIALS
Mayor Dr. Satish Hiremath
Vice-Mayor Ms. Mary Snider
Council Member Mr. Barry Gillaspie
Council Member Mr. William Garner
Council Member Mr. Joe Horvat
Council Member Mr. Steve Solomon
Council Member Mr. Lou Waters
DEPARTMENT HEADS
Interim Town Manager Greg Caton
Finance Director Stacey Lemos, CPA
Human Resources Director Betty Dickens
Town Engineer Craig Civalier
Town Clerk Julie Bower
Magistrate George Dunscomb
Town Attorney Tobin Rosen
Water Utility Director Philip Saletta
Chief of Police Daniel G. Sharp
Interim Development&
Infrastructure Services Director Paul Keesler
Parks, Recreation, Library and
Cultural Resources Director Ainsley Legner
Information Technology Director Kevin Verville
ix
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Oro Valley
Arizona
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs) achieve the highest
standards in government accounting
and financial reporting.
..,..4--ANITED ST-ATEn\
it cfsDA Ire t
ti\.COR-NkROS.12
) President
Executive Director
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FINANCIAL SECTION
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Me ..
EINFELD EE , tt�
HEINFELD, CH & CO., P.C. •
CERTIFIED PUBLIC ACCOUNTANTS
4+d,
1986-2011
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and Members of the Town Council
Town of Oro Valley, Arizona
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Town of Oro Valley, Arizona (Town), as of and for the year ended June 30, 2011, which
collectively comprise the Town's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the Town's management. Our responsibility
is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation. We believe
that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Town of Oro Valley, Arizona,
as of June 30, 2011, and the respective changes in financial position and cash flows, where
applicable, thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
As described in Note 1, the Town implemented the provisions of the Governmental Accounting
Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund
Type Definitions, for the year ended June 30, 2011, which represents a change in accounting
principle.
10120 N. Oracle Road,Tucson,Arizona 85704
Tel: (520)742-2611 Fax: (520)742-2718
In accordance with Government Auditing Standards, we have also issued our report dated
December 1, 2011 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 to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 5 through 14 and budgetary comparison
information on pages 62 through 64 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by
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.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town's financial statements as a whole. The accompanying
supplementary information such as the introductory section, combining and individual fund
financial statements and schedules, and statistical section are presented for purposes of additional
analysis and are not a required part of the financial statements. The combining and individual
fund financial statements and schedules are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepare the
financial statements. The information has been subjected to the auditing procedures applied in
the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole. The introductory and statistical sections have not been subjected
to the auditing procedures applied in the audit of the basic financial statements and, accordingly,
we do not express an opinion or provide any assurance on them.
git
HEINFELD, MEECH & CO., P.C.
Certified Public Accountants
December 1, 2011
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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, 2011
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, 2011. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal,
which can be found in the introductory section of this report.
FINANCIAL HIGHLIGHTS
The financial statements which follow the Management's Discussion and Analysis provide those
significant key financial highlights for 2010-11 as follows.
• The Town's total net assets of governmental activities increased $2.3 million to $155.6 million,
and business-type activities increased $4.6 million to $60.4 million representing 70 percent and
30 percent respectively, of the total net assets of$215.9 million.
• General revenues from governmental activities accounted for $20.5 million in revenue, or 55
percent of all revenues from governmental activities. Program specific revenues in the form of
charges for services and grants and contributions accounted for $16.9 million or 45 percent of
total governmental activities revenues. The Town had $17.7 million of program revenues and
$39,745 in general revenues related to business-type activities.
• The Town had $35.1 million in expenses related to governmental activities, a decrease of 8
percent from the prior fiscal year. The Town had $13.1 million in expenses related to business-
type activities, an increase of 2 percent from the prior fiscal year.
• Among major funds, the General Fund had $23.9 million in revenues, which primarily consisted
of sales taxes and intergovernmental revenues. The total expenditures of the General Fund were
$25.3 million. The General Fund's fund balance decreased from $11.9 million to $11.0 million.
This decrease was due to the one-time use of fund balance to pay for an energy efficiency
upgrade capital project.
• The Highway User Revenue Fund, had $3.2 million in revenues, which primarily consisted of
intergovernmental revenues. The total expenditures of the Highway User Revenue Fund were
$3.8 million.
• The Townwide Roadway Development Impact Fee Fund had $5.1 million in revenues, which
primarily consisted of intergovernmental revenues. The total expenditures of the Townwide
Roadway Development Impact Fee Fund were $4.9 million.
• The Water Fund operating revenues of $14.7 million exceeded operating expenses of $9.9
million. The change in net assets of$3.0 million was primarily due to revenues from charges
for services.
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town's basic
financial statements. The Town's basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the Town's finances, in a manner similar to
a private-sector business.
The statement of net assets presents information on all of the Town's assets and liabilities, with
the difference between the two reported as net assets. Over time, increases or decreases in net
assets 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 assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated
absences).
In the government-wide financial statements the Town's activities are presented in the following
categories:
• Governmental activities — Most of the Town's basic services are included here, such as
general government, public safety, highways and streets, and culture and recreation. Sales
taxes, intergovernmental, and charges for services finance most of these activities.
• Business-type activities —The services provided by the Town included here are water and
stormwater utilities. The services are primarily financed through user fees and charges.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town
uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All of the funds of the Town can be divided into two categories: governmental
funds and proprietary funds.
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TOWN OF ORO VALLEY,ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
OVERVIEW OF FINANCIAL STATEMENTS (Cont'd)
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating the Town's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental funds
with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
Town's near-term financing decision. Both the governmental fund balance sheet and the
governmental fund statement of revenues, expenditures and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental
activities.
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General, Highway User Revenue (HURF), Oracle Road Debt Service, and Townwide
Roadway Development Impact Fees 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 of Oro Valley 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 of Oro Valley uses enterprise funds to
account for its Oro Valley Water Utility and Stormwater Drainage Utility. The Town uses an
internal service fund to account for its fleet maintenance services. 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. 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 major Special Revenue Fund as required supplementary information.
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
OVERVIEW OF FINANCIAL STATEMENTS (Concl'd)
During the year ended June 30, 2011, the Town implemented the provisions of the Governmental
Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions. GASB Statement No. 54 establishes standards for
financial reporting, including note disclosure requirements, for fund balance classifications of the
governmental funds and clarifies existing governmental fund type definitions. Additional
information on the fund balance classifications, components of fund balance, and other
information related to fund balance can be found in Note 2.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets may serve over time as a useful indicator of a government's financial position. In the
case of the Town, assets exceeded liabilities by $216.0 million as of the current fiscal year end.
The largest portion of the Town's net assets reflects its investment in capital assets (e.g., land,
buildings and improvements, improvements other than buildings, infrastructure, vehicles,
machinery and equipment and construction in progress), less any related debt used to acquire
those assets that is still outstanding. 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 debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
The following table presents a summary of the Town's net assets for the fiscal years ended
June 30, 2011 and June 30, 2010.
2011 2010 2011 2010
Governmental Governmental Business-type Business-type
Activities Activities Activities Activities 2011 Total 2010 Total
Current and other assets $ 28,438,518 $ 30,638,869 $ 24,653,197 $ 27,124,402 $ 53,091,715 $57,763,271
Capital assets,net 145,539,069 141,309,940 95,282,634 91,505,866 240,821,703 232,815,806
Total assets,net 173,977,587 171,948,809 119,935,831 118,630,268 293,913,418 290,579,077
Current and other liabilities 4,219,096 8,120,707 3,139,539 6,413,489 7,289,312 14,534,196
Long-term liabilities 14,165,670 10,556,342 56,419,499 56,428,637 70,654,492 66,984,979
Total liabilities 18,384,766 18,677,049 59,559,038 62,842,126 77,943,804 81,519,175
Invested in capital assets,net
of related debt 132,956,156 127,712,057 40,005,568 31,3 83,715 172,961,724 159,095,772
Restricted 12,048,505 9,580,610 12,048,505 9,580,610
Unrestricted 10,588,160 15,979,093 20,371,225 24,404,427 30,959,385 40,383,520
Total net assets $155,592,821 $153,271,760 $ 60,376,793 $ 55,788,142 $215,969,614 $209,059,902
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)
The Town's financial position is the product of several financial transactions including the net
results of activities, the acquisition and payment of debt, the acquisition and disposal of capital
assets, and the depreciation of capital assets. The following are significant current year
transactions that have had an impact on the Statement of Net Assets.
• The addition of $7.6 million in business-type activities capital assets through
improvements to the existing water system.
• The addition of $15.7 million in governmental activities capital assets, including $7.4
million for infrastructure. Additions to infrastructure assets consisted of$3.0 million for
street improvements and the installation of solar panels and energy efficiency upgrades
and $4.0 million in contributed capital from developers for subdivisions.
• The decrease of$1.0 million in governmental activities long-term debt was due mainly to
the payoff of a $3 million Highway Extension Loan Program (HELP) loan from the La
Canada Drive widening project and the issuance of $2.4 million in Clean Renewable
Energy Bonds for the Town's energy efficiency and solar project.
• The decrease of$3.4 million in business-type activities long-term debt was due mainly to
the payoff of a $1.0 million Central Arizona Project (CAP) water loan and annual debt
service payments of$2.0 million.
Changes in net assets. The Town's total revenues for the current fiscal year were $55.1 million.
The total cost of all programs and services was $48.2 million. The following table presents a
summary of the changes in net assets for the fiscal years ended June 30, 2011 and June 30, 2010.
2011 2010 2011 2010
Governmental Governmental Business-type Business-type 2011 2010
Activities Activities Activities Activities Total Total
Revenues:
Program revenues:
Charges for services $ 3,016,425 $ 3,131,422 $ 16,007,456 $ 16,064,022 $ 19,023,881 $19,195,444
Operating grants and contributions 4,887,283 4,728,050 4,887,283 4,728,050
Capital grants and contributions 8,980,239 6,514,602 1,655,307 362,273 10,635,546 6,876,875
General revenues:
Sales taxes 11,572,148 12,970,865 11,572,148 12,970,865
Franchise taxes 514,814 509,285 514,814 509,285
Unrestricted state shared revenues 8,409,590 9,462,464 8,409,590 9,462,464
Investment earnings 39,124 95,625 39,745 72,244 78,869 167,869
Total revenues 37,419,623 37,412,313 17,702,508 16,498,539 55,122,131 53,910,852
Expenses:
General government 9,887,523 9,950,053 9,887,523 9,950,053
Public safety 12,509,201 13,730,593 12,509,201 13,730,593
Highways and streets 8,895,987 9,353,689 8,895,987 9,353,689
Culture and recreation 3,375,281 3,527,949 3,375,281 3,527,949
Interest on long-term debt 430,570 1,767,155 430,570 1,767,155
Water 12,527,851 12,830,137 12,527,851 12,830,137
Stormwater drainage 586,006 486,994 586,006 486,994
Total expenses 35,098,562 38,329,439 13,113,857 13,317,131 48,212,419 51,646,570
Change in net assets $ 2,321,061 $ (917,126) $ 4,588,651 $ 3,181,408 $ 6,909,712 $ 2,264,282
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl'd)
Total revenues decreased $1.2 million, or 2 percent, primarily due to a reduction in collections in
local sales taxes and state income tax. The decrease of$1.4 million in sales tax revenues is primarily
due to a decrease of$400,000 in construction sales tax collections and a $700,000 decrease in sales
tax audit recoveries. Unrestricted state shared revenues decreased by $1.1 million due to a decrease
in state shared income taxes.
Expenses decreased $3.4 million primarily from staffing reductions and vacancy savings and savings
in operations and maintenance costs in all Town departments.
Governmental and Business-type activities. The following table presents the cost of the Town's
major functional activities. The table also shows each function's net cost (total cost less charges for
services generated by the activities and intergovernmental aid provided for specific programs). The
net cost shows the financial burden that was placed on the State and Town's taxpayers by each of
these functions.
2011 2010
Total Net(Expense)/ Total Net(Expense)/
Governmental Activities Expenses Revenue Expenses Revenue
General government $ 9,887,523 $ (6,916,415) $ 9,950,053 $ (7,508,064)
Public safety 12,509,201 (11,495,163) 13,730,593 (12,852,342)
Highways and streets 8,895,987 3,254,449 9,353,689 363,309
Culture and recreation 3,375,281 (2,626,916) 3,527,949 (2,775,226)
Interest on long-term debt 430,570 (430,570) 1,767,155 (1,767,155)
Total $ 35,098,562 $ (18,214,615) $ 38,329,439 $ (24,539,478
Business-type Activities
Water $ 12,527,851 $ 2,793,387 $ 12,830,137 $ 2,668,920
Stormwater drainage 586,006 1,755,519 486,994 440,244
Total $ 13,113,857 $ 4,548,906 $ 13,317,131 $ 3,109,164
• The cost of all governmental activities this year was $35.1 million. The decrease of $3.2
million from the prior year was due primarily to a decrease in public safety of$1.2 million in
the building safety department related to a departmental reorganization and a reduction in
staffing levels. Interest on long-term debt decreased by $1.3 million due to the defeasance of
the 2000, 2001 and 2003 refunding revenue bonds in the prior fiscal year. Overall, personnel
costs were reduced due to staff reductions and vacancies in all Town departments.
• The cost of all business-type activities this year was $13.1 million, a decrease of $203,274
from the prior year. Costs decreased slightly due to personnel and operational cost savings in
the Water Utility and Stormwater departments.
• Federal and State governments, developer contributions, and charges for services subsidized
certain governmental programs and business-type programs with revenues of$34.5 million.
• Net cost of governmental activities of$18.2 million was financed by general revenues, which
are made up of primarily sales taxes and state shared revenues of$ 20.5 million.
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
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 $21.0
million, a decrease of $2.7 million. This was primarily due to costs related to the energy
efficiency and solar project of$900,000, street improvement projects of$800,000 and $300,000
for police vehicles and computer replacements.
The General Fund is the principal operating fund of the Town. The fund balance decreased by
$897,291 in the General Fund to $11.0 million for the current fiscal year.
The fund balance of the Highway User Revenue Fund showed a decrease of $541,020 to $3.7
million for the current fiscal year.
The Townwide Roadway Development Impact Fees Fund showed an increase of $224,188 to
$2.5 million for the current fiscal year.
Proprietary funds. Net assets of the Enterprise Funds at the end of the year amounted to $60.4
million. The increase of $4.6 million from the prior fiscal year was primarily due to operating
income of$4.8 million from the Water Utility Fund.
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TOWN OF ORO VALLEY,ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30,2011
BUDGETARY HIGHLIGHTS
There were no amendments to the Town of Oro Valley's fiscal year 2010-11 operating and
capital budget. A schedule showing the original and final budget amounts compared to the
Town's actual financial activity for the General Fund is provided in this report as required
supplementary information. The significant variances are summarized as follows:
• The unfavorable variance of$1.9 million in revenues was primarily a result of a decline
in construction sales taxes and building permit revenues.
• The favorable variance of$314,625 in expenditures was a result of salary and operational
cost savings in all departments.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. At year end, the Town had invested $240.8 million in capital assets (net of
accumulated depreciation), including buildings, facilities, vehicles, computers, equipment, and
infrastructure assets. This amount represents a net increase of $8.0 million from last year. In
governmental activities, this was primarily due to the completion of the energy efficiency and
solar project of $4.2 million and the addition of $7.4 million in street improvements and
developer contributions for subdivisions. In business-type activities this was due to water system
expansion of$2.0 million and $1.4 million in stormwater drainage facilities. Total depreciation
expense for the year was $9.8 million.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2011
and June 30, 2010.
As of As of
Governmental Activities June 30, 2011 June 30, 2010
Land $ 18,878,468 $ 18,878,468
Infrastructure 151,204,783 143,835,153
Buildings and improvements 24,218,778 19,962,664
Machinery, equipment, and vehicles 10,654,213 9,147,800
Construction in progress 1,778,211 3,913,137
Less: Accumulated depreciation (61,195,384) (54,427,282)
Total $ 145,539,069 $141,309,940
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl'd)
As of As of
Business-type Activities June 30, 2011 June 30, 2010
Land $ 2,410,660 $ 2,410,660
Water rights 8,534 490 8,534,490
Water system 100,847,841 98,839,269
Stormwater system 2,474,862 1,044,302
Equipment and vehicles 3,835 184 3,411,001
Construction in progress 4,397,627 1,699,004
Less: Accumulated depreciation (27,218,030) (24,432,860)
Total $ 95,282,634 $ 91,505,866
Additional information on the Town's capital assets can be found in Note 5.
Debt Administration. At year end, the Town had $67.9 million in long-term debt outstanding,
$5.7 million due within one year. The following table presents a summary of the Town's
outstanding long-term debt for the fiscal years ended June 30, 2011 and June 30, 2010.
Governmental Activities
2011 2010
Revenue bonds $ 7,149,780 $ 4,939,750
Special assessment bonds 2,920,000 3,145,000
Loan payable 2,513,133 5,513,133
Total $ 12,582,913 $ 13,597,883
Business-type Activities
2011 2010
Revenue bonds $ 49,803,970 $ 52,305,500
Loan payable 5,473,096 6,305,650
Capital leases 35,392 123,883
$ 55,312,458 $ 58,735,033
State statutes currently limit the amount of general obligation debt a Town may issue to 20
percent of its total assessed valuation for water, sewer, lights, open space preserves, parks,
playgrounds and recreational facilities. The current debt limitation for the Town is $134.5
million.
The Town of Oro Valley has a bond rating of"AA-" rating from Standard & Poor's and a "AA-"
rating from Fitch Ratings on outstanding revenue bonds.
Additional information on the Town's long-term debt can be found in Notes 6 through 10.
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TOWN OF ORO VALLEY, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
• The unemployment rate for the Town of Oro Valley is currently 6%. Pima County's and
the State of Arizona's unemployment rates are 8.9% and 9.7%, respectively.
• The Town's secondary assessed valuation for the current year is $672,309,368.
• Single family residential (SFR) building permits issued in this fiscal year totaled 47, as
compared to 65 SFR building permits issued last fiscal year. Projections for SFR
building permits are 35 for fiscal year 2011-12.
The adopted combined operating and capital expenditure budget for fiscal year 2011-12 totals
$94.0 million, a decrease of 19% over last year's budget of $116.2 million. This decrease is
primarily attributed to a decrease in capital related projects that were completed in fiscal year
2010-11. The budget for fiscal year 2011-12 continues to place emphasis on the following:
streamlining service delivery, increasing operating efficiencies, and improving the structural
balance of the Town's budget by reducing recurring expenditures to align with continued
revenue reductions.
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 Canada Drive, Oro Valley, Arizona 85737.
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF NET ASSETS
JUNE 30,2011
Governmental Business-type
Activites Activites Total
ASSETS
Current assets:
Cash and cash equivalents $ 23,065,362 $ 19,532,099 $ 42,597,461
Taxes receivable 718,368 718,368
Accounts receivable 362,153 2,190,093 2,552,246
Intergovernmental receivable 969,057 458,909 1,427,966
Special assessments 2,920,000 2,920,000
Prepaid items 11,180 11,180
Total current assets 28,046,120 22,181,101 50,227,221
Noncurrent assets:
Deferred bond charges 392,398 2,472,096 2,864,494
Capital assets,non-depreciable 20,656,679 15,342,777 35,999,456
Capital assets,depreciable(net) 124,882,390 79,939,857 204,822,247
Total noncurrent assets 145,931,467 97,754,730 243,686,197
Total assets 173,977,587 119,935,831 293,913,418
LIABILITIES
Current liabilities:
Accounts payable 2,781,875 697,374 3,479,249
Accrued wages and benefits 782,563 95,129 877,692
Intergovernmental payable 361,283 886,096 1,247,379
Interest payable 1,229,769 1,229,769
Unearned revenue 128,180 128,180
Customer deposits payable 95,872 231,171 327,043
Compensated absences 1,234,551 114,293 1,348,844
Capital leases payable 35,392 35,392
Loans payable 2,513,133 307,670 2,820,803
Special assessment bonds 235,000 235,000
Revenue bonds 304,820 2,370,180 2,675,000
Total current liabilities 8,437,277 5,967,074 14,404,351
Noncurrent liabilities:
Compensated absences 348,206 58,878 407,084
Loans payable 5,165,426 5,165,426
Special assessment bonds 2,685,000 2,685,000
Revenue bonds 6,914,283 48,367,660 55,281,943
Total noncurrent liabilities 9,947,489 53,591,964 63,539,453
Total liabilities 18,384,766 59,559,038 77,943,804
NET ASSETS
Invested in capital assets,net of related debt 132,956,156 40,005,568 172,961,724
Restricted for:
Public safety 626,098 626,098
Highways and streets 3,654,948 3,654,948
Capital Outlay 3,341,3 88 3,341,3 88
Debt service 4,426,071 4,426,071
Unrestricted 10,588,160 20,371,225 30,959,385
Total net assets $ 155,592,821 $ 60,376,793 $ 215,969,614
The notes to the basic financial statements are an integral part of this statement.
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TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30,2011
Net(Expense)
Revenue and
Changes in Net
Program Revenues Assets
Operating Capital Grants
Charges for Grants and and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Primary Government
Governmental activities:
General government $ 9,887,523 $ 2,455,182 $ 272,826 $ 243,100 $ (6,916,415)
Public safety 12,509,201 33,976 980,062 (11,495,163)
Highway and streets 8,895,987 400,977 3,012,320 8,737,139 3,254,449
Culture and recreation 3,375,281 126,290 622,075 (2,626,916)
Interest on long-term debt 430,570
(430,570)
Total governmental activites 35,098,562 3,016,425 4,887,283 8,980,239 (18,214,615)
Business-type activities:
Water 12,527,851 15,119,065 202,173
Stormwater drainage 586,006 888,391 1,453,134
Total business-type activites 13,113,857 16,007,456 1,655,307
Total primary government $ 48,212,419 $ 19,023,881 $ 4,887,283 $ 10,635,546 (18,214,615)
General revenues:
Taxes:
Sales taxes 11,572,148
Franchise taxes 514,814
Unrestricted state shared revenues 8,409,590
Investment earnings 39,124
Total general revenues 20,535,676
Changes in net assets 2,321,061
Net assets,beginning of year 153,271,760
Net assets,end of year $ 155,592,821
The notes to the basic financial statements are an integral part of this statement.
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Net(Expense)Revenue and
Changes in Net Assets
Business-type
Activities Totals
$ $ (6,916,415)
(11,495,163)
3,254,449
(2,626,916)
(430,570)
(18,214,615)
2,793,387 2,793,387
1,755,519 1,755,519
4,548,906 4,548,906
4,548,906 (13,665,709)
11,572,148
514,814
8,409,590
39,745 78,869
39,745 20,575,421
4,588,651 6,909,712
55,788,142 209,059,902
$ 60,376,793 $ 215,969,614
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FUND FINANCIAL STATEMENTS
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TOWN OF ORO VALLEY,ARIZONA
BALANCE SHEET- GOVERNMENTAL FUNDS
JUNE 30,2011
Oracle Road
General Fund HURF Debt Service
ASSETS
Cash and cash equivalents $ 12,562,684 $ 3,887,479 $ 4,987
Taxes receivable 718,368
Accounts receivable 354,602 7,551
Intergovernmental receivable 577,804 248,074
Special assessments 2,920,000
Prepaid items 11,180
Total assets $ 14,224,638 $ 4,143,104 $ 2,924,987
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 1,944,997 $ 414,236 $
Accrued wages and benefits 687,168 73,920
Intergovernmental payable 361,283
Deferred revenue 128,180 2,920,000
Customer deposits payable 95,872
Total liabilities 3,217,500 488,156 2,920,000
Fund balances:
Restricted 3,654,948 4,987
Committed
Assigned 1,769,333
Unassigned 9,237,805
Total fund balances 11,007,138 3,654,948 4,987
Total liabilities and fund balances $ 14,224,638 $ 4,143,104 $ 2,924,987
The notes to the basic financial statements are an integral part of this statement.
Page 24
Townwide
Roadway Non-Major Total
Development Governmental Governmental
Impact Fees Funds Funds
$ 2,414,724 $ 4,138,674 $ 23,008,548
718,368
3 62,15 3
128,186 14,993 969,057
2,920,000
11,180
$ 2,542,910 $ 4,153,667 $ 27,989,306
$ 46,364 $ 324,735 $ 2,730,332
16,204 777,292
361,283
3,048,180
95,872
46,364 340,939 7,012,959
2,496,546 2,972,024 9,128,505
840,704 840,704
1,769,333
9,237,805
2,496,546 3,812,728 20,976,347
$ 2,542,910 $ 4,153,667 $ 27,989,306
Page 25
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Page 26
TOWN OF ORO VALLEY,ARIZONA
RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30,2011
Total governmental fund balances $ 20,976,347
Amounts reported for governmental activities in the Statement of Net Assets are
different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Governmental capital assets $ 206,734,453
Less accumulated depreciation (61,195,384) 145,539,069
Special assessments receivable are not available to pay for current period
expenditures and therefore are not reported in the funds. 2,920,000
Deferred items related to the issuance of bonds are amortized over the life of
the associated issuance in the government-wide statements but not
reported in the funds.
Deferred bond charges 392,398
Deferred bond premium (69,323) 323,075
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds.
Special assessment bonds (2,920,000)
Revenue bonds (7,149,780)
Loans payable (2,513,133)
Compensated absences (1,582,757) (14,165,670)
Net assets of governmental activities $ 155,592,821
Page 27 The notes to the financial statements are integral part of this statement.
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30,2011
Oracle Road
General Fund HURF Debt Service
Revenues:
Sales taxes $ 11,060,860 $ 291,349 $
Franchise taxes 514,814
Impact fees
Special assessments 365,811
Intergovernmental 9,960,865 2,826,662
Licenses,fees&permits 1,013,392 45,917
Fines,forfeitures&penalties 195,993
Charges for services 875,881
Contributions and donations 15,000
Investment earnings 29,305 8,832
Other 255,605 22,513
Total revenues 23,921,715 3,195,273 365,811
Expenditures:
Current-
General government 9,415,109
Public safety 11,784,077
Highway and streets 2,817,516
Culture and recreation 3,031,520
Capital outlay 1,025,956 983,581
Debt service-
Principal retirement 225,000
Interest and fiscal charges 147,548
Total expenditures 25,256,662 3,801,097 372,548
Excess(deficiency)of revenues over expenditures (1,334,947) (605,824) (6,737)
Other financing sources(uses):
Issuance of revenue bonds
Transfers in 616,338 64,804
Transfers out (178,682)
Total other financing sources(uses): 437,656 64,804
Changes in fund balances (897,291) (541,020) (6,737)
Fund balances,beginning of year 11,904,429 4,195,968 11,724
Fund balances,end of year $ 11,007,138 $ 3,654,948 $ 4,987
The notes to the basic financial statements are an integral part of this statement.
Page 28
Townwide
Roadway Non-Major Total
Development Governmental Governmental
Impact Fees Funds Funds
$ $ 219,939 $ 11,572,148
514,814
263,302 218,317 481,619
365,811
4,824,334 428,758 18,040,619
1,059,309
364,948 560,941
50,254 926,135
15,000
3,182 (2,195) 39,124
18,000 991 297,109
5,108,818 1,281,012 33,872,629
433,284 9,848,393
144,490 11,928,567
470,833 3,288,349
3,031,520
1,884,630 3,120,492 7,014,659
3,000,000 234,970 3,459,970
323,030 470,578
4,884,630 4,727,099 39,042,036
224,188 (3,446,087) (5,169,407)
2,445,000 2,445,000
179,001 860,143
(616,338) (795,020)
2,007,663 2,510,123
224,188 (1,438,424) (2,659,284)
2,272,358 5,251,152 23,635,631
$ 2,496,546 $ 3,812,728 $ 20,976,347
Page 29
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Page 30
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 30,2011
Net changes in fund balances-total governmental funds $ (2,659,284)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However,in the Statement of Activities,
the cost of those assets is allocated over their estimated useful lives as depreciation expense.
Expenditures for capital assets $ 7,249,382
Less current year depreciation (7,035,347) 214,035
Capital assets contributed by developers to the Town are not recorded in the governmental funds as
they do not provide current financial resources but are recognized in the Statement of Activities as
program revenues. 4,015,094
Special assessment revenues in the Statement of Activities do not provide current financial resources
and therefore are not reported as revenues in the governmental funds. (225,000)
Repayment of debt principal are expenditures in the governmental funds,but the repayment reduces
long-term liabilities in the Statement of Net Assets.
Loan principal retirement 3,000,000
Revenue bond principal retirement 234,970
Special assessment bond principal retirement 225,000 3,459,970
Issuance of revenue bonds provides current financial resources to governmental
funds,but the issuance increases long term liabilities in the Statement of Net Assets. (2,445,000)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental funds.
Amortization of deferred charges (18,688)
Compensated absences (20,066) (38,754)
Change in net assets in governmental activities $ 2,321,061
The notes to the financial statements are integral part of this statement.
Page 31
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30,2011
Enterprise Funds
Stormwater
Water Drainage Totals
ASSETS
Current assets:
Cash and cash equivalents $ 19,157,147 $ 374,952 $ 19,532,099
Accounts receivable 2,142,204 47,889 2,190,093
Due from federal govenment 458,909 458,909
Total current assets 21,299,3 51 8 81,75 0 22,181,101
Noncurrent assets:
Deferred bond charges 2,472,096 2,472,096
Capital assets,non-depreciable 15,282,676 60,101 15,342,777
Capital assets,depreciable(net) 77,110,223 2,829,634 79,939,857
Total noncurrent assets 94,864,995 2,889,735 97,754,730
Total assets 116,164,346 3,771,485 119,935,831
LIABILITIES
Current liabilities:
Accounts payable 576,260 121,114 697,374
Accrued wages and benefits 88,349 6,780 95,129
Intergovernmental payable 886,096 886,096
Interest payable 1,229,769 1,229,769
Customer deposits payable 231,171 231,171
Compensated absences 112,227 2,066 114,293
Capital leases payable 35,392 35,392
Loans payable 307,670 307,670
Revenue bonds 2,370,180 2,370,180
Total current liabilities 5,801,722 165,352 5,967,074
Noncurrent liabilities:
Compensated absences 57,814 1,064 58,878
Loans payable 5,165,426 5,165,426
Revenue bonds 48,367,660 48,367,660
Total noncurrent liabilities 53,590,900 1,064 53,591,964
Total liabilities 59,392,622 166,416 59,559,038
NET ASSETS
Invested in capital assets,net of related debt 37,115,833 2,889,735 40,005,568
Unrestricted 19,655,891 715,334 20,371,225
Total net assets $ 56,771,724 $ 3,605,069 $ 60,376,793
The notes to the basic financial statements are an integral part of this statement.
Page 32
Governmental
Activites:
Internal Service
Funds
$ 56,814
56,814
56,814
51,543
5,271
56,814
56,814
$
Page 33
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS-
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30,2011
Enterprise Funds
Stormwater
Water Drainage Totals
Operating revenues:
Charges for services $ 14,664,761 $ 751,341 $ 15,416,102
Other 11,113 11,113
Total operating revenues 14,675,874 751,341 15,427,215
Operating expenses:
Costs of sales and services 7,042,821 519,514 7,562,335
Depreciation and amortization 2,883,478 60,351 2,943,829
Total operating expenses 9,926,299 579,865 10,506,164
Operating income(loss) 4,749,575 171,476 4,921,051
Nonperating revenues(expenses):
Impact fees 400,988 400,988
Intergovernmental 1,453,134 1,453,134
Connection fees 244,376 244,376
Investment earnings 38,443 1,302 39,745
Interest expense (2,601,552) (6,141) (2,607,693)
Total nonoperating revenues(expenses) (1,917,745) 1,448,295 (469,450)
Income(loss)before capital contributions and transfers 2,831,830 1,619,771 4,451,601
Capital contributions 202,173 202,173
Transfers out (319) (64,804) (65,123)
Changes in net assets 3,033,684 1,554,967 4,588,651
Total net assets,beginning of year 53,738,040 2,050,102 55,788,142
Total net assets,end of year $ 56,771,724 $ 3,605,069 $ 60,376,793
The notes to the basic financial statements are an integral part of this statement.
Page 34
Governmental
Activities:
Internal Service
Funds
$ 874,968
874,968
874,968
874,968
Page 35
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30,2011
Governmental
Enterprise Funds Activities
Stormwater Internal Service
Water Drainage Total Fund
Increase(Decrease)in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from customers $ 14,681,851 $ 955,159 $ 15,637,010 $ 874,968
Cash payments to suppliers for goods and services (4,431,902) (254,758) (4,686,660) (726,111)
Cash payments to employees for services (2,411,191) (276,949) (2,688,140) (146,310)
Net cash provided by(used for) operating activities 7,838,758 423,452 8,262,210 2,547
Cash flows from noncapital and related financing activities:
Connection fees 244,376 244,376
Grants received 994,225 994,225
Interfund transfers (319) (64,804) (65,123)
Net cash provided by noncapital financing activities 244,057 929,421 1,173,478
Cash flows from capital and related financing activities:
Development impact fees 400,988 400,988
Acquisition of capital assets (5,022,680) (1,337,086) (6,359,766)
Proceeds from loans 553,979 553,979
Principal paid on long-term debt (3,766,063) (88,491) (3,854,554)
Interest on long-term debt (2,640,888) (6,141) (2,647,029)
Net cash used for capital and related
financing activities (10,474,664) (1,431,718) (11,906,382)
Cash flows from investing activities:
Investment income 38,443 1,302 39,745
Net cash provided by investing activities 38,443 1,302 39,745
Net increase(decrease)in cash and cash equivalents (2,353,406) (77,543) (2,430,949) 2,547
Cash and cash equivalents,beginning of year 21,510,553 452,495 21,963,048 54,267
Cash and cash equivalents,end of year $ 19,157,147 $ 374,952 $ 19,532,099 $ 56,814
Reconciliation of Operating Income to
Net Cash Provided by(used for)Operating Activities
Operating income $ 4,749,575 $ 171,476 $ 4,921,051 $
Adjustments to reconcile operating income
to net cash provided by(used for)operating activities:
Depreciation and amortization 2,883,478 60,351 2,943,829
Change in assets and liabilities:
(Increase)decrease in accounts receivable (45,005) 203,818 158,813
Increase(decrease)in accounts payable 192,801 (10,508) 182,293 3,017
Increase(decrease)in accrued payroll and employee benefits 6,927 (1,690) 5,237 (470)
Increase in compensated absences payable 5 5
Increase in deposits held for others 50,982 50,982
Total adjustments 3,089,183 251,976 3,341,159 2,547
Net cash provided by operating activities $ 7,838,758 $ 423,452 $ 8,262,210 $ 2,547
Non-cash capital and financing activities
Contribution of assets from developers $ 202,173 $ 202,173
Page 36 The notes to the financial statements are an integral part of this statement.
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Oro Valley, Arizona have been prepared in
conformity with accounting principles generally accepted in the United States of America as
applied to government units. The Governmental Accounting Standards Board (GASB) is the
accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
During the year ended June 30, 2011, the Town implemented the provisions of GASB
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. GASB
Statement No. 54 establishes standards for financial reporting, including note disclosure
requirements, for fund balance classifications of the governmental funds, and clarifies existing
governmental fund type definitions.
The more significant of the Town's accounting policies are described below.
A. Reporting Entity
The Town is a municipal entity governed by an elected mayor and council. As required by
accounting principles generally accepted in the United States of America, these financial
statements present the Town and its component units, entities for which the Town is
considered to be financially accountable. Blended component units, although legally separate
entities, are, in substance, part of the Town's operations and so data from these units are
combined with data of the Town, the primary government. The blended component units
presented have a June 30 year end.
The financial reporting entity consists of a primary government and its component units. A
component unit is a legally separate entity that must be included in the reporting entity in
conformity with generally accepted accounting principles. The Town is a primary
government that has a separately elected governing body, is legally separate, and is fiscally
independent of other state or local governments. Furthermore, component units combined
with the Town for financial statement presentation purposes, and the Town, are not included
in any other governmental reporting entity. Consequently, the Town's financial statements
include the funds of those organizational entities for which its elected governing body is
financially accountable.
Blended Component Unit — The financial reporting entity presented in these financial
statements consists of the Town and one blended component unit. This component unit,
discussed below, is included in the Town's reporting entity because of the significance of its
operational relationship or financial relationship with the Town. The component unit is
governed by a board, substantially or wholly, comprised of the Town's elected council.
Separate financial statements are not prepared for the component unit on a stand-alone basis.
Page 37
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
The Town of Oro Valley Municipal Property Corporation's (MPC) Board of Directors
consists of the three members which are appointed by the Town of Oro Valley Town Council.
The MPC, a non-profit corporation incorporated under the laws of the State of Arizona, was
originally formed for the purpose of assisting the Town in obtaining financing for acquiring
g �Y .
the Canada Hills and Rancho Vistoso water companies. The Town has a contractual
obligation for the repayment of the MPC's Municipal Facilities Revenue Bonds, Series 2003,
2005, and 2007. The activity of the 2003 MPC is reported in the applicable water enterprise
fund and the activity of the Series 2005 and 2007 MPC is reported in the applicable water
enterprise and governmental funds. All related receivables and payables between the Town
and the MPC have been eliminated.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets 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 and its component units.
For the most part, the effect of internal activity has been removed from these statements.
These statements are to distinguish between the governmental and business-type activities of
the Town. Governmental activities normally are supported by sales taxes and
intergovernmental revenues, and are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are
g
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 rovided 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, unrestricted state shared revenues, investment income and other items
not included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds.
Major individual governmental funds and the major individual enterprise fund are reported as
separate columns in the fund financial statements.
Page 38
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-wide Financial Statements — The government-wide financial statements are
reported using the economic resources measurement focus and the accrual basis of
accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the grantor or
provider have been met. As a general rule, the effect of internal activity has been eliminated
from the government-wide financial statements; however, the effects of interfund services
provided and used between functions are reported as expenses and program revenues at
amounts approximating their external exchange value.
Fund Financial Statements — Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the Town considers
revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Sales taxes, franchise taxes, licenses and permits, charges for services, special assessments
and investment income associated with the current fiscal period are all considered to be
susceptible to accrual and have been recognized as revenues of the current fiscal period.
Grants and similar awards are recognized as revenue as soon as all eligibility requirements
imposed by the grantor or provider have been met. Miscellaneous revenue is not susceptible
to accrual because generally they are not measurable until received in cash. Grants and
similar awards are recognized as revenue as soon as all eligibility requirements imposed by
the grantor or provider have been met. Deferred revenue arises when resources are received
by the Town before it has legal claim to them, as when grant monies are received prior to
meeting all eligibility requirements imposed by the provider.
The Council adopts the budget at the fund level as a total amount of expenditures. Financial
control is administered by fund, with budgetary control for operating performance regulated at
the departmental level, e.g., finance, economic development, police, and parks and recreation.
The 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.
Page 39
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
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.
Highway User Revenue Fund — This fund is used to account for the Town's share of
motor fuel tax revenues.
Oracle Road Debt Service Fund — This fund accounts for the special assessment
collections and payment of the outstanding Oracle Road bond issue.
Townwide Roadway Development Impact Fees Fund — This fund accounts for the
collection and capital expenditures of the Townwide Roadway Development Impact
Fees.
The Town reports the following major proprietary funds.
Water Fund — This fund accounts for the costs to operate, construct and finance the
Town's water system.
Stormwater Drainage Fund — This funds accounts for the provisions of stormwater
services to the residents of the Town and certain county residents within the Town's
municipal boundaries. All activities necessary to provide such services are accounted for
in this fund.
Private-sector standards of accounting and financial reporting issued prior to
December 1, 1989, generally are followed in both the government-wide and proprietary fund
financial statements to the extent that those standards do not conflict with or contradict
guidance of the Governmental Accounting Standards Board. Governments also have the
option of following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation. The Town has elected not to follow
subsequent private-sector guidance.
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 to user
departments for fleet maintenance services. The principal operating revenues of the Town's
enterprise fund are charges to customers for water and stormwater drainage services.
Operating expenses for these funds include the cost of sales and services, depreciation, and
amortization. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
Page 40
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
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 June 30, 2011 were cash in bank and investments held by the
County and State Treasurers.
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."
All trade receivables are shown net of an allowance for uncollectibles.
G. 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 and fund financial
statements.
H. Capital Assets
Capital assets, which include property, plant, and equipment, are reported in the applicable
governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the Town as assets with an initial, individual cost of
$5,000 or more and an estimated useful life of more than one year. Such assets are recorded
at historical cost or estimated historical cost if actual historical cost is not available. Donated
capital assets are recorded at estimated fair market value at the date of donation.
Page 41
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed.
Certain capital assets of the Town are depreciated using the straight line method over the
following estimated useful lives:
Assets Years
Buildings 50
Improvements other than buildings 20-30
Infrastructure 20-50
Vehicles 4-6
Machinery and equipment 7-20
I. Compensated Absences
The Town's employee annual and sick leave policies generally provide for granting annual
and sick leave with pay. Full-time employees accrue annual leave based on the number of
years employed. Employees who terminate employment shall be paid in a lump sum. Full-
time employees accumulate sick leave at the rate of one work day per month. Part-time
employees whose normal week is twenty hours or more receive sick leave at half the rate of
full-time employees. Once an employee has exceeded 480 hours of accrued sick leave, one
half of the sick leave balance in excess of the 480 hours shall be paid to the employee upon
separation from employment. The current and long-term liabilities, including related benefits,
for accumulated vacation and sick leave are reported on the government-wide financial
statements. A liability for these amounts, including related benefits, is reported in
governmental funds only if they have matured, for example, as a result of employee leave,
resignations and retirements. Generally, resources from the General Fund are used to pay for
compensated absences.
J. Long-term Obligations
In the government-wide financial statements and proprietary fund financial statements, long-
term debt and other long-term obligations are reported as liabilities in the applicable business-
type activities and proprietary fund type statement of net assets.
Page 42
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl'd)
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.
K. 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.
L. Estimates
There aration of the financial statements in conformity with accounting principles generally
p p
accepted in the United States of America requires management to make estimates and
p
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.
Nonspendable. The nonspendable fund balance classification includes amounts that cannot
be spent because they are not in spendable form, or legally or contractually required to be
maintained intact.
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.
Page 43
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 2—FUND BALANCE CLASSIFICATIONS (Concl'd)
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. 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 accounts.
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.
Unassigned. Unassigned fund balance is the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. In other
governmental funds, the unassigned classification is used only to report a deficit balance
resulting from overspending for specific purposes for which amounts had be restricted,
committed, or assigned.
The Town applies restricted resources first when expenditures 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.
The table below provides detail of the major components of the Town's fund balance
classifications at year end.
Highway Oracle Townwide
User Road Debt Roadway Non-Major
General Revenue Service Development Governmental
Fund Fund Fund Impact Fees Funds
Fund Balances:
Restricted:
Highways and streets $ $ 3,654,948 $ $ $
Debt service 4,987 1,501,084
Capital projects 2,496,546 844,842
Public safety 626,098
Committed 840,704
Assigned 1,769,333
Unassigned 9,237,805
Total fund balances $11,007,138 $ 3,654,948 $ 4,987 $ 2,496,546 $ 3,812,728
Page 44
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
NOTE 3—CASH AND INVESTMENTS
A.R.S. authorize the Town to invest public monies in obligations of the U.S. Government
and its agencies, obligations of the State and certain local government subdivisions, interest-
bearing savings accounts and certificates of deposit, collateralized repurchase agreements,
certain obligations of U.S. corporations, and certain other securities. The statutes do not
include any requirements for credit risk, custodial credit risk, concentration of credit risk,
interest rate risk, or foreign currency risk for the Town's investments.
The State Treasurer's pools are external investment pools, the Local Government Investment
Pool (Pool 5) and Local Government Investment Pool-Government (Pool 7), with no
regulatory oversight. The pools are not required to register (and are not registered) with the
Securities and Exchange Commission. The activity and performance of the pools are
reviewed monthly by the State Board of Investment. The fair value of each participant's
position in the State Treasurer investment pools approximates the value of the participant's
shares in the pool and the participants' shares are not identified with specific investments.
No regulatory oversight is provided for the County Treasurer's investment pool and that
pool's structure does not provide for shares.
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 $1,199,315 and the bank balance was $1,005,226.
At year end, the Town's investments consisted of the following.
Investments Maturities
(in Years)
Investment Type Fair Value Less than 1 1-5
Money Market - U.S. Treasuries $ 5,352,389 $5,352,389 $
U.S Treasury Bonds/Notes 4,806,668 1,505,865 3,300,803
U.S. Agencies Bonds/Notes 20,218,682 2,560,527 17,658,155
$9,418,781 $ 20,958,958
County Treasurer's investment pool 738,586 198 days average maturities
State Treasurer's investment pool 5 10,276,477 27 days average maturities
Total $41,392,802
Page 45
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 3—CASH AND INVESTMENTS (Concl'd)
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 if this investment
policy;
2. Pre-qualifying financial institutions, broker/dealers, intermediaries, and advisers with
which the Town will do business in accordance with Section 5; and
3. Diversifying the investment portfolio so that the impact of potential losses from any
one type of security or from any one individual issuer will be minimized.
As of year end, the Town's investment in the State and County Treasurers' investment pools
did not receive a credit quality rating from a national rating agency. The State Treasurer's
investment pool 5 was rated AAA/S1+ by Standard and Poor's at year end. The Town's
investments in U.S. agencies were rated AAA by Standard and Poor's.
Custodial Credit Risk — Investments. The Town's investment in the State and County
Treasurer's investment pools represents a proportionate interest in the pool's portfolio;
however, the Town's portion is not identified with specific investments and is not subject to
custodial credit risk.
Concentration of Credit Risk. The Town places no limit on the amount the Town may invest
in any one issuer. More than 5 percent of the Town's investments are in FHLMC and FNMA
notes. These investments are 19% and 18% of the Town's total investments, respectively.
Page 46
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 4—RECEIVABLES
Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and
presented separately in the financial statements with the exception of due from governmental
entities. Due from governmental entities, net of allowance for uncollectibles, as of year end
for the Town's individual major funds in the aggregate, were as follows.
Highway Townwide
User Roadway
General Revenue Development
Fund Fund Impact Fees
Due from other governmental entities:
Due from Federal government $ 174,017 $ $
Due from State government 403,787 248,074
Due from other governments 128,186
Net due from governmental entities $ 577,804 $ 248,074 $ 128,186
Governmental funds report deferred revenue in connection with receivables for revenues that
are not considered to be available to liquidate liabilities of the current period. Governmental
funds also defer revenue recognition in connection with resources that have been received, but
not yet earned. At the end of the current fiscal year, the various components of deferred
revenue reported in the governmental funds were as follows.
Unavailable Unearned
Prepaid developer fees (General Fund) $ $ 128,180
Special assessments (Oracle Road Debt Service Fund) 2,920,000
Total deferred revenue for governmental funds $ 2,920,000 $ 128,180
Page 47
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 5—CAPITAL ASSETS
A summary of capital asset activity for the current fiscal year follows.
Beginning
Governmental Activities Balance Increase Decrease Ending Balance
Capital assets,not being depreciated:
Land $ 18,878,468 $ $ $ 18,878,468
Construction in progress 3,913,137 2,333,523 4,468,449 1,778,211
Total capital assets,not being depreciated 22,791,605 2,333,523 4,468,449 20,656,679
Capital assets,being depreciated:
Infrastructure 143,835,153 7,369,630 151,204,783
Buildings and improvements 19,962,664 4,256,114 24,218,778
Machinery,equipment, and vehicles 9,147,800 1,784,916 278,503 10,654,213
Total capital assets being depreciated 172,945,617 13,410,660 278,503 186,077,774
Less accumulated depreciation for:
Infrastructure (43,788,702) (5,605,687) (49,394,389)
Buildings and improvements (4,551,392) (468,251) (5,019,643)
Machinery,equipment,and vehicles (6,087,188) (961,409) (267,245) (6,781,352)
Total accumulated depreciation (54,427,282) (7,035,347) (267,245) (61,195,384)
Total capital assets,being depreciated,net 118,518,335 6,375,313 11,258 124,882,390
Governmental activities capital assets,net $ 141,309,940 $ 8,708,836 $ 4,479,707 $ 145,539,069
Beginning
Business-Type Activities Balance Increase Decrease Ending Balance
Capital assets,not being depreciated:
Land $ 2,410,660 $ $ $ 2,410,660
Water rights 8,534,490 8,534,490
Construction in progress 1,699,004 3,719,501 1,020,878 4,397,627
Total 12,644,154 3,719,501 1,020,878 15,342,777
Capital assets,being depreciated:
Water system 98,839,269 2,008,572 100,847,841
Stormwater system 1,044,302 1,430,560 2,474,862
Equipment and vehicles 3,411,001 424,183 3,835,184
Total capital assets being depreciated 103,294,572 3,863,315 107,157,887
Less accumulated depreciation for:
Water system (22,403,381) (2,511,616) (24,914,997)
Stormwater system (53,045) (23,391) (76,436)
Equipment and vehicles (1,976,434) (250,163) (2,226,597)
Total accumulated depreciation (24,432,860) (2,785,170) (27,218,030)
Total capital assets,being depreciated,net 78,861,712 1,078,145 79,939,857
Business-type activities capital assets,net $ 91,505,866 $ 4,797,646 $ 1,020,878 $ 95,282,634
Page 48
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 5—CAPITAL ASSETS (Concl'd)
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $ 417,082
Public Safety 560,972
Highways and streets 5,714,260
Culture and recreation 343,033
Total depreciation expense—governmental activities $7,035,347
Business-type activities:
Water 2,728,070
Stormwater 57,100
Total depreciation expense—business-type activities $2,785,170
Construction Commitments — As of year end, the Town was involved in several
construction projects. The estimated cost to complete the construction projects is $15.0
million.
NOTE 6—LOANS PAYABLE
The Town received an $8,000,000 loan from the Arizona Department of Transportation
(ADOT) for streets projects. The loan payable at current fiscal year end is presented below.
Outstanding Due
Interest Rate Principal Within
Governmental activities: (Including Fees) Maturity June 30, 2011 One Year
ADOT HELP Loan 3.50% 7/30/11 $ 2,513,133 $2,513,133
Total $ 2,513,133 $2,513,133
As of June 30, 2011, principal payments on the governmental activities loans payable were
$2,513,133, due in fiscal year 2012, and the interest due is $102,334.
Page 49
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 6—LOANS PAYABLE (Concl'd)
The Town received two loans from the Water Infrastructure Finance Authority of Arizona for
water system projects. The Town also received loan financing for water rights from the
Central Arizona Water Conservation Town (CAWCD) to be paid back over five years. The
loans payable at current fiscal year end are presented below.
Interest Rate Outstanding Due
(Including Principal Within
Business-type activities: Fees) Maturity June 30, 2011 One Year
WIFA Loan, 2007 2.04% 7/1/11-27 $ 3,981,268 $ 179,266
WIFA Loan, 2009 2.75% 7/1/11-18 1,491,828 128,404
Total $ 5,473,096 $ 307,670
Principal and interest payments on the business-type activities loans payable at June 30, 2011
are summarized as follows.
Business-type Activities
Year ending June 30: Principal Interest
2012 $ 307,670 $ 190,369
2013 318,081 186,287
2014 328,844 173,889
2015 339,973 161,073
2016 351,481 147,826
2017-21 1,944,250 460,660
2022-26 1,369,803 214,589
2027-28 512,994 16,534
Total $ 5,473,096 $ 1,551,227
Page 50
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 7—BONDS PAYABLE
Bonds payable at year end, consisted of the following outstanding revenue and refunding
bonds. The bonds are both callable and noncallable with interest payable semiannually.
Taxes and Impact Fees are used to pay bonded debt.
Original Outstanding
Amount Interest Principal Due Within
Purpose Issued Rates Maturity June 30, 2011 One Year
Governmental activities:
Revenue Bonds, 2005 $ 4,164,050 3.50-4.75% 7/1/11-25 $ 3,417,000 $ 170,850
Refunding Revenue Bonds, 2007 1,3 89,180 4.25-5.00% 7/1/11-26 1,287,780 8,970
Excise Tax Revenue Obligations, 2010 2,445,000 2.00-6.59% 7/1/11-27 2,445,000 125,000
Total $ 7,149,780 $ 304,820
Annual debt service requirements to maturity on revenue and refunding bonds for
governmental activities at year end are summarized as follows.
Governmental Activities
Year ending June 30: Principal Interest
2012 $ 304,820 $ 314,703
2013 321,910 304,107
2014 329,000 291,971
2015 339,440 279,873
2016 385,920 266,168
2017-21 2,218,950 1,064,786
2022-26 2,772,640 477,301
2027-28 477,100 24,735
Total $ 7,149,780 $ 3,023,644
Original Outstanding
Amount Interest Principal Due Within
Purpose Issued Rates Maturity June 30, 2011 One Year
Business-type activities:
Revenue Bonds, 2003 $ 31,750,000 3.25-5.00% 7/1/11-28 $ 25,132,500 $ 1,400,000
Refunding Revenue Bonds, 2003 10,225,080 3.50-5.00% 7/1/11-19 7,766,250 780,000
Revenue Bonds, 2005 2,050,950 3.13-4.75% 7/1/11-25 1,683,000 84,150
Refunding Revenue Bonds, 2007 16,420,820 4.25-5.00% 7/1/11-26' 15,222,220 106,030
Total $ 49,803,970 $ 2,370,180
Page 51
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 7—BONDS PAYABLE (Concl'd)
Annual debt service requirements to maturity revenue and refunding bonds for business-type
activities at year end are summarized as follows.
Business-type Activities
Year ending June 30: Principal Interest
2012 $ 2,370,180 $ 2,231,020
2013 2,536,840 2,131,609
2014 2,128,500 2,026,368
2015 2,535,310 1,931,432
2016 2,771,080 1,821,203
2017-21 15,361,800 7,089,396
2022-26 15,552,360 3,390,708
2027-29 6,547,900 402,455
Total $ 49,803,970 $ 21,024,191
Pledged revenues — governmental activities. The Town has pledged future sales (excise)
tax revenues to repay outstanding revenue bonds and refunding revenue bonds of $7.1
million as of June 30, 2011. Proceeds from the original bond issuances, including those
subsequently refunded, provided financing for land acquisition and facility construction. The
bonds are paid solely from the Town's sales taxes and are payable through 2028. Total
annual principal and interest payments for all sales tax revenue bonds are expected to require
less than 7% of gross revenues. The total principal and interest to be paid on the bonds is
$10.2 million. The current total sales tax revenues were $11.3 million and the total principal
and interest paid on the bonds was $488,954, or 4% 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 $49.8 million as of
June 30, 2011. Proceeds from the original bond issuances, including those subsequently
refunded, provided financing for the construction and improvements to the Town's water
systems and infrastructure. The bonds are paid solely from water utility revenues and are
payable through 2029. Total annual principal and interest payments for all water revenue
bond issuances are expected to require approximately 25% of gross revenues. The total
principal and interest to be paid on the bonds is $70.8 million. The current total customer
gross revenues were $15.4 million and the total principal and interest paid on the bonds was
$3.6 million or 24% of gross revenues.
Page 52
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 8— SPECIAL ASSESSMENT BONDS
Special assessment bonds at year end consisted of the following outstanding bonds. The
bonds are both callable and noncallable with interest payable semiannually. Special
assessments from the Oracle Road Debt Service Fund are used to pay bonded debt.
Original Outstanding Due
Amount Interest Principal Within
Purpose Issued Rates Maturity June 30, 2011 One Year
Governmental activities:
Special assessments debt $3,945,000 4.20-5.00% 1/1/11-21 $ 2,920,000 $ 235,000
Total $ 2,920,000 $ 235,000
Annual debt service requirements to maturity on special assessment bonds at year end are
summarized as follows.
Governmental Activities
Year ending June 30: Principal Interest
2012 $ 235 000 $ 129,701
2013 250,000 117,578
2014 260,000 105,867
2015 270,000 94,602
2016 280,000 82,637
2017-21 1,625,000 235 3 235,360
Total $ 2,920,000 $ 765,745
Page 53
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2011
NOTE 9—OBLIGATIONS UNDER CAPITAL LEASES
The business-type activities of the Town have acquired a street sweeper and dump truck
under the provisions of long-term lease agreements classified as a capital leases. The lease
agreements qualify as capital leases for accounting purposes and, therefore, have been
recorded at the present value of their future minimum lease payments as of the inception
date. Revenues from the Stormwater Fund are used to pay the capital lease obligations.
The assets capitalized and acquired through capital leases are as follows.
Business-type
Activities
Asset:
Machinery, equipment, and vehicles $ 270,464
Less: Accumulated depreciation 23,665
Total $ 246,799
As of June 30, 2011, the future minimum lease obligation was $35,392, due in fiscal year
2012, and the net present value of this minimum lease payment was $35,392.
NOTE 10—CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the current fiscal year was as follows.
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
Revenue bonds payable $ 5,014,388 $ 2,445,000 $ 240,285 $ 7,219,103 $ 304,820
Special assessments payable 3,145,000 225,000 2,920,000 235,000
Loan payable 5,513,133 3,000,000 2,513,133 2,513,133
Compensated absences payable 1,562,691 1,480,920 1,460,854 1,5 82,757 1,234,5 51
Governmental activity long-term
liabilities $ 15,235,212 $ 3,925,920 $ 4,926,139 $ 14,234,993 $ 4,287,504
Business-type activities:
Revenue bonds payable $ 53,299,064 $ $ 2,461,224 $ 50,737,840 $ 2,370,180
Loan payable 6,305,650 431,979 1,264,533 5,473,096 307,670
Capital lease payable 123,883 88,491 35,392 35,392
Compensated absences payable 173,166 172,326 172,321 173,171 114,293
Business-type activities long-term
liabilities $ 59,901,763 $ 604,305 $ 4,086,569 $ 56,419,499 $ 2,827,535
Page 54
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 11 —INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Interfund transfers:
Transfers in
Non-Major
General HURF Governmental
Transfers out Fund Fund Funds Total
General Fund $ $ $ 178,682 $ 178,682
Non-Major Governmental Funds 616,338 616,338
Water Fund 319 319
Stormwater Drainage Fund 64,804 64,804
Total $ 616,338 $ 64,804 $ 179,001 $ 860,143
Transfers were made from the General Fund to subsidize the Public Transportation and Pima
County Bond Projects Funds and transferred out to the General Fund to properly collapse
funds into the General Fund in accordance with Town Resolution No. (R) 11-30. Transfers
out of the indicated capital projects funds were to close out the fund as the project for which
the fund was created was completed at fiscal year end.
NOTE 12 — CONTINGENT LIABILITIES
Compliance —Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the federal government. Any disallowed claims,
including amounts already collected, may constitute a liability of the applicable funds. The
amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be
determined at this time, although the Town expects such amounts, if any, to be immaterial.
NOTE 13 —RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
The Town's insurance protection is provided by the Arizona Municipal Risk Retention Pool,
of which the Town is a participating member. The limit for basic coverage is for $2,000,000
per occurrence on a claims made basis. Excess coverage is for an additional $10,000,000 per
occurrence on a follow form, claims made basis. The aggregate limit is also $10,000,000. No
significant reduction in insurance coverage occurred during the year and no settlements
exceeded insurance coverage during any of the past three fiscal years.
Page 55
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 13 —RISK MANAGEMENT (Concl'd)
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.
NOTE 14—PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS
Plan Descriptions — The Town contributes to the three plans described below. Benefits are
established by state statute and generally provide retirement, death, long-term disability,
survivor, and health insurance premium benefits.
The Arizona State Retirement System (ASRS) administers a cost-sharing multiple-employer
defined benefit pension plan; a cost-sharing multiple employer defined benefit health
insurance premium plan; and a cost-staring, multiple-employer defined benefit long-term
disability plan that covers employees of the State of Arizona and employees of participating
political subdivisions and school districts. The ASRS is governed by the Arizona State
Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2.
The Public Safety Personnel Retirement System (PSPRS) administers agent multiple-
employer defined benefit pension plan and an agent multiple-employer defined benefit health
insurance premium plan that covers public safety personnel who are regularly assigned
hazardous duty as employees of the State of Arizona or one of its political subdivisions. The
PSPRS, acting as a common investment and administrative agent, is governed by a five-
member board, known as The Fund Manager, and 162 local boards according to the
provisions of A.R.S. Title 38, Chapter 5, Article 4.
The Corrections Officer Retirement Plan (CORP) administers an agent multiple-employer
defined benefit pension plan and an agent multiple-employer defined benefit health insurance
premium plan that covers certain employees of the State of Arizona's Department of
Corrections and Department of Juvenile Corrections, and county employees whose primary
duties require direct inmate contact. The CORP is governed by The Fund Manager of PSPRS
and the participating local boards according to the provisions of A.R.S. Title 38, Chapter 5,
Article 6.
Page 56
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14—PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Cont'd)
Each plan issues a publicly available financial report that includes its financial statements and
required supplementary information. A report may be obtained by writing or calling the
applicable plan. The reports are also available on their websites at www.azasrs.gov and
www.psprs.com.
ASRS PSPRS/CORP
P.O. Box 33910 3010 E. Camelback Road Suite 200
Phoenix, AZ 85012-0250 Phoenix, AZ 85016
(602) 240-2200 or (800) 621-3778 (602) 255-5575
Funding policy — The Arizona State Legislature establishes and may amend active plan
members' and the Town's contribution rates.
Cost-sharing plans — The Arizona State Legislature establishes and may amend active plan
members' and the Town's contribution rates. For the current fiscal year, active ASRS
members were required by statute to contribute at the actuarially determined rate of 9.85
percent (9.60 percent for retirement and 0.25 percent for long-term disability) of the members'
annual covered payroll and the Town was required by statute to contribute at the actuarially
determined rate of 9.85 percent (9.01 percent for retirement, 0.59 percent for health insurance
premium, and 0.25 percent for long-term disability) of the members' annual covered payroll.
The Town's contributions for the current and two preceding years, all of which were equal to
the required contributions, were as follows.
Health Benefit Long-Term
Retirement Supplement Disability
Fund Fund Fund
Year ending June 30:
2011 $ 985,116 $ 77,959 $ 47,248
2010 949,928 75,174 45,560
2009 996,346 119,711 62,350
Agent plan — For the current fiscal year, active PSPRS and CORP members were required by
statute to contribute 7.65 and 7.96 percent of the members' annual covered payroll, and the
Town was required to contribute at the actuarially determined rate of 15.63 and 9.52 percent.
The health insurance premium portion of the contribution rate was actuarially set at 0.65
percent of covered payroll for PSPRS and 0.37 percent for CORP.
Page 57
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14—PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Cont'd)
Actuarial methods and assumptions — The contribution requirements for the year ended
June 30, 2011 were established by the June 30, 2009 actuarial valuations, and those actuarial
valuations were based on the following actuarial methods and assumptions. Actuarial
valuations involve estimates of the value of reported amounts and assumptions about the
probability of events in the future. The required schedule of funding programs which follows
provides multi-year trend information that shows whether the actuarial value of the plans'
assets are increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
PSPRS CORP
Contribution rates:
Town 15.63% 9.52%
Plan members 7.65% 7.96%
Actuarial valuation date June 30, 2009 June 30, 2009
Actuarial cost method Projected unit credit Projected unit credit
Actuarial assumptions:
Investment rate of return 8.5% 8.5%
Projected salary increases 5.5% - 8.5% 5.5% - 8.5%
Inflation rate 5.0% 5.0%
Amortization method Level percent closed for Level percent closed for
unfunded actuarial liability, unfunded actuarial liability, open
open for excess for excess
Remaining amortization 27 years for unfunded actuarial 27 years for unfunded actuarial
accrued liability, 20 years for accrued liability, 20 years for
excess excess
Asset valuation method 7-year smoothed market value 7-year smoothed market value
Annual Pension/OPEB Cost — The Town's pension/OPEB cost for the agent plans for the
current fiscal year end and related information follows.
PSPRS CORP
Health Health
Pension Insurance Pension Insurance
Annual pension/OPEB cost $ 874,605 $ 36,442 $ 39,629 $ 9,907
Contributions made 874,605 36,442 39,629 9,907
Page 58
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14—PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Cont'd)
Trend Information — Information for each of the agent plans as of most recent actuarial
valuations follows.
Oro Valley Police Plan (PSPRS):
Year Ended Annual Pension Percentage of APC Net Pension
June 30, Cost(APC) Contributed Obligation
Pension
2010 $ 891,682 100% -0-
2009 1,005,600 100% -0-
2008 577,551 100% -0-
Health Insurance
2010 $ 88,075 100% -0-
2009 77,502 100% -0-
2008 59,146 100% -0-
Oro Valley ACORP Dispatchers Plan (CORP):
Year Ended Annual Pension Percentage of APC Net Pension
June 30, Cost(APC) Contributed Obligation
Pension
2010 $ 52,845 100% -0-
2009 57,404 100% -0-
2008 36,214 100% -0-
Health Insurance
2010 $ 5,085 100% -0-
2009 5,447 100% -0-
2008 6,126 100% -0-
Page 59
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14—PENSIONS AND OTHER POSTEMPLOYMENT BENEFITS (Concl'd)
Funding Progress — An analysis of funding progress for each of the agent plans as of the
most recent actuarial valuations follows. For this valuation, which was prior to the
implementation of GASB Statement No. 45, the pension and health insurance benefit amounts
were aggregated. In future years these benefits will be disaggregated and reported separately.
Oro Valley Police Plan (PSPRS):
Pension
Unfunded
Liability as
Actuarial Actuarial Annual Percentage
Valuation Value of Accrued Funding Funded Covered of Covered
Date Plan Assets Liability Liability Ratio Payroll Payroll
June 30, (a) (b) (a-b) (a/b) (c) ([a-b]/c)
2010 $17,152,906 $21,796,927 $(4,644,021) 78.7% $5,994,879 77.47%
2009 15,727,624 20,322,658 (4,595,034) 77.4% 5,951,423 77.21%
2008 13,644,758 18,167,094 (4,522,336) 75.1% 5,856,015 77.23%
Health Insurance
2010 $ -0- $715,698 $(715,698) 0.0% $5,994,879 11.94%
2009 -0- 628,965 (628,965) 0.0% 5,951,423 10.57%
2008 -0- 563,998 (563,998) 0.0% 5,856,015 9.63%
Oro Valley Dispatchers Plan (CORP):
Pension
Unfunded
Liability as
Actuarial Actuarial Annual Percentage
Valuation Value of Accrued Funding Funded Covered of Covered
Date Plan Assets Liability Liability Ratio Payroll Payroll
June 30 (a) (b) (a-b) (a/b) (c) [a-bJ/c)
2010 $ 1,057,358 $ 1,349,198 $ (291,840) 78.4% $ 513,337 56.85%
2009 1,082,181 1,5 81,254 (499,073) 68.4% 604,184 82.60%
2008 1,026,134 1,594,642 (568,508) 64.3% 729,262 77.90%
Health Insurance
2010 $ -0- $ 45,521 $ (45,521) 0.0% $ 513,337 8.87%
2009 -0- 54,580 (54,580) 0.0% 604,184 9.03%
2008 -0- 71,711 (71,711) 0.0 % 729,262 9.83%
Page 60
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES—BUDGET AND ACTUAL
(REQUIRED SUPPLEMENTARY INFORMATION)
Page 61
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED JUNE 30,2011
Budgeted Variance with
Amounts Final Budget
Positive
Original&Final Actual (Negative)
Revenues:
Sales taxes $ 12,564,250 $ 11,060,860 $ (1,503,390)
Franchise taxes 500,000 514,814 14,814
Intergovernmental 9,995,135 9,960,865 (34,270)
Licenses,fees&permits 1,276,510 1,013,392 (263,118)
Fines,forfeitures&penalties 195,000 195,993 993
Charges for services 1,021,715 875,881 (145,834)
Contributions and donations 15,000 15,000
Investment earnings 151,374 29,305 (122,069)
Other 145,000 255,605 110,605
Total revenues 25,848,984 23,921,715 (1,927,269)
Expenditures:
Current-
General government 11,056,999 9,415,109 1,641,890
Public safety 11,566,573 11,784,077 (217,504)
Culture and recreation 2,947,715 3,031,520 (83,805)
Capital outlay 1,025,956 (1,025,956)
Total expenditures 25,571,287 25,256,662 314,625
Excess(deficiency)of revenues over expenditures 277,697 (1,334,947) (1,612,644)
Other financing sources(uses):
Transfers in 367,000 616,338 249,338
Transfers out (989,047) (178,682) 810,365
Total other financing sources(uses): (622,047) 437,656 1,059,703
Changes in fund balances (344,350) (897,291) (552,941)
Fund balances,beginning of year 1,683,130 11,904,429 10,221,299
Fund balances,end of year $ 1,338,780 $ 11,007,138 $ 9,668,358
See accompanying notes to this schedule.
Page 62
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL
HURF
YEAR ENDED JUNE 30,2011
Budgeted Variance with
Amounts Final Budget
Positive
Original&Final Actual (Negative)
Revenues:
Sales taxes $ 630,188 $ 291,349 $ (338,839)
Intergovernmental 2,669,767 2,826,662 156,895
Licenses,fees&permits 45,917 45,917
Investment earnings 8,832 8,832
Other 433,083 22,513 (410,570)
Total revenues 3,733,038 3,195,273 (537,765)
Expenditures:
Current-
Highway and streets 3,902,198 2,817,516 1,084,682
Capital outlay 983,581 (983,581)
Total expenditures 3,902,198 3,801,097 101,101
Excess(deficiency)of revenues over expenditures (169,160) (605,824) (436,664)
Other financing sources(uses):
Transfers in 64,804 64,804
203,033
Transfers out (203,033) 203,033
Total other financing sources(uses): (138,229) 64,804 203,033
Changes in fund balances (307,389) (541,020) (233,631)
Fund balances,beginning of year 4,079,533 4,195,968 116,435
Fund balances,end of year $ 3,772,144 $ 3,654,948 $ (117,196)
See accompanying notes to this schedule.
Page 63
TOWN OF ORO VALLEY, ARIZONA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2011
NOTE 1 —BUDGETARY BASIS OF ACCOUNTING
The adopted budget of the Town is prepared on the modified accrual basis of accounting.
Page 64
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Page 65
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Page 66
GOVERNMENTAL FUNDS
Page 67
TOWN OF ORO VALLEY,ARIZONA
COMBINING BALANCE SHEET-ALL NON-MAJOR GOVERNMENTAL FUNDS-BY FUND TYPE
JUNE 30,2011
Special Revenue Debt Service Capital Projects
ASSETS
Cash and cash equivalents $ 1,521,307 $ 1,501,084 $ 1,116,283
Intergovernmental receivable 14,993
Total assets $ 1,536,300 $ 1,501,084 $ 1,116,283
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 53,294 $ $ 271,441
Accrued wages and benefits 16,204
Total liabilities 69,498 271,441
Fund balances:
Restricted 626,098 1,501,084 844,842
Committed 840,704
Total fund balances 1,466,802 1,501,084 844,842
Total liabilities and fund balances $ 1,536,300 $ 1,501,084 $ 1,116,283
Page 68
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 30,2011
Special Revenue Debt Service Capital Projects
Revenues:
Sales taxes $ 219,939 $ $
Impact fees 218,317
Intergovernmental 103,847 81,811 243,100
Fines,forfeitures&penalties 364,948
Charges for services 50,254
Investment earnings (3,254) 347 712
Other 991
Total revenues 736,725 82,158 462,129
Expenditures:
Current-
General government 413,523 19,761
Public safety 144,490
Highway and streets 470,833
Capital Outlay 30,778 3,089,714
Debt service-
Principal retirement 234,970
Interest and fiscal charges 264,334 58,696
Total expenditures 1,059,624 499,304 3,168,171
Excess(deficiency)of revenues over expenditures (322,899) (417,146) (2,706,042)
Other financing sources(uses):
Issuance of refunding bonds 2,445,000
Transfers in 167,132 319 11,550
Transfers out (49,986) (566,352)
Total other financing sources(uses): 117,146 319 1,890,198
Changes in fund balances (205,753) (416,827) (815,844)
Fund balances,beginning of year 1,672,555 1,917,911 1,660,686
Fund balances,end of year $ 1,466,802 $ 1,501,084 $ 844,842
Page 70
Total Non-Major
Governmental
Funds
$ 219,939
218,317
428,758
364,948
50,254
(2,195)
991
1,281,012
433,284
144,490
470,833
3,120,492
234,970
323,030
4,727,099
(3,446,087)
2,445,000
179,001
(616,338)
2,007,663
(1,438,424)
5,251,152
$ 3,812,728
Page 71
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Page 72
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.
Revegetation Assurances — accounts for monies received from developers to help ensure
developments are properly revegetated to Town standards.
State Seizures and Forfeitures — accounts for state police seizures and forfeitures received by
the Town.
Federal Seizures and Forfeitures—accounts for federal police seizures and forfeitures received
by the Town.
Bed Tax — accounts for the collection of the 6 percent bed tax revenues which funds economic
development and tourism initiatives.
Regional Transportation Authority — accounts for funding received from the Regional
Transportation Authority used to maintain Park n' Ride facilities in town.
Public Transportation—accounts for the operation of the Town's public transportation system.
Impound Fee — accounts for the collection of administrative fees for processing vehicles
impounded by the Oro Valley police department.
Page 73
TOWN OF ORO VALLEY,ARIZONA
COMBINING BALANCE SHEET-NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30,2011
State Seizures and Federal Seizures
Forfeitures and Forfeitures Bed Tax
ASSETS
Cash and cash equivalents $ 170,957 $ 466,003 $ 879,235
Intergovernmental receivable
Total assets $ 170,957 $ 466,003 $ 879,235
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 2,365 $ 8,497 $ 38,531
Accrued wages and benefits
Total liabilities 2,365 8,497 38,531
Fund balances:
Restricted 168,592 457,506
Committed 840,704
Total fund balances 168,592 457,506 840,704
Total liabilities and fund balances $ 170,957 $ 466,003 $ 879,235
Page 74
Public
Transportation Impound Fee Totals
$ 3,321 $ 1,791 $ 1,521,307
14,993 14,993
$ 18,314 $ 1,791 $ 1,536,300
$ 3,842 $ 59 $ 53,294
14,472 1,732 16,204
18,314 1,791 69,498
626,098
840,704
1,466,802
$ 18,314 $ 1,791 $ 1,536,300
Page 75
TOWN OF ORO VALLEY,ARIZONA
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30,2011
Revegetation State Seizures and Federal Seizures
Assurances Forfeitures and Forfeitures
Revenues:
Sales taxes $ $ $
Intergovernmental
Fines,forfeitures&penalties 10,595 313,093
Charges for services
Investment earnings (11,123) 3,028 2,467
Other
Total revenues (11,123) 13,623 315,560
Expenditures:
Current-
General government
Public safety 36,153 108,337
Highway and streets
Capital Outlay 30,778
Total expenditures 36,153 139,115
Excess(deficiency)of revenues over expenditures (11,123) (22,530) 176,445
Other financing sources(uses):
Transfers in
Transfers out (49,986)
Total other financing sources(uses): (49,986)
Changes in fund balances (61,109) (22,530) 176,445
Fund balances,beginning of year 61,109 191,122 281,061
Fund balances,end of year $ $ 168,592 $ 457,506
Page 76
Regional
Transportation Public
Bed Tax Authority Transportation Impound Fee Totals
$ 219,939 $ $ $ $ 219,939
1,256 102,591 103,847
41,260 364,948
50,254 50,254
2,227 147 (3,254)
991 991
222,166 1,256 153,983 41,260 736,725
371,007 1,256 41,260 413,523
144,490
470,833 470,833
30,778
371,007 1,256 470,833 41,260 1,059,624
(148,841) (316,850) (322,899)
167,132 167,132
(49,986)
167,132 117,146
(148,841) (149,718) (205,753)
989,545 149,718 1,672,555
$ 840,704 $ $ $ $ 1,466,802
Page 77
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 30,2011
Revegetation Assurances
Variance-
Positive
Budget Actual (Negative)
Revenues:
Sales taxes $ $ $
Intergovernmental
Fines, forfeitures&penalties
Charges for services
Investment earnings (11,123) (11,123)
Other
Total revenues (11,123) (11,123)
Expenditures:
Current-
General government
Public safety
Highway and streets
Capital outlay
Total expenditures
Excess(deficiency)of revenues over expenditures (11,123) (11,123)
Other financing sources(uses):
Transfers in
Transfers out (49,986) (49,986)
Total other financing sources(uses): (49,986) (49,986)
Changes in fund balances (61,109) (61,109)
Fund balances,beginning of year 61,109 61,109
Fund balances,end of year $ $ $
Page 78
State Seizures and Forfeitures Federal Seizures and Forfeitures
Variance- Variance-
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
$ $ $ $ $ $
102,800 10,595 (92,205) 253,600 313,093 59,493
3,028 3,028 2,467 2,467
102,800 13,623 (89,177) 253,600 315,560 61,960
217,473 36,153 181,320 652,234 108,337 543,897
30,778 (30,778)
217,473 36,153 181,320 652,234 139,115 513,119
(114,673) (22,530) 92,143 (398,634) 176,445 575,079
(114,673) (22,530) 92,143 (398,634) 176,445 575,079
114,673 191,122 76,449 398,634 281,061 (117,573)
$ $ 168,592 $ 168,592 $ $ 457,506 $ 457,506
(Continued)
Page 79
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 30,2011
Bed Tax
Variance-
Positive
Budget Actual (Negative)
Revenues:
Sales taxes $ 261,569 $ 219,939 $ (41,630)
Intergovernmental
Fines,forfeitures&penalties
Charges for services
Investment earnings 2,227 2,227
Other 9,000 (9,000)
Total revenues 270,569 222,166 (48,403)
Expenditures:
Current-
General government 358,869 371,007 (12,138)
Public safety
Highway and streets
Capital outlay
Total expenditures 358,869 3 71,007 (12,138)
Excess(deficiency)of revenues over expenditures (88,300) (148,841) (60,541)
Other financing sources(uses):
Transfers in
Transfers out
Total other financing sources(uses):
Changes in fund balances (88,300) (148,841) (60,541)
Fund balances,beginning of year 1,032,649 989,545 (43,104)
Fund balances,end of year $ 944,349 $ 840,704 $ (103,645)
Page 80
Regional Transportation Authority Public Transportation
Variance- Variance-
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
$ $ $ $ $ $
1,256 1,256 54,845 102,591 47,746
50,254 50,254
147 147
991 991
1,256 1,256 54,845 153,983 99,138
1,256 (1,256)
456,852 470,833 (13,981)
1,256 (1,256) 456,852 470,833 (13,981)
(402,007) (316,850) 85,157
400,000 167,132 (232,868)
(80,000) 80,000
320,000 167,132 (152,868)
(82,007) (149,718) (67,711)
82,007 149,718 67,711
$ $ $ $ $ $
(Continued)
Page 81
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, 2011
Impound Fee
Variance-
Positive
Budget Actual (Negative)
Revenues:
Sales taxes $ $ $
Intergovernmental
Fines,forfeitures&penalties 60,000 41,260 (18,740)
Charges for services
Investment earnings
Other
Total revenues 60,000 41,260 (18,740)
Expenditures:
Current-
General government 66,124 41,260 24,864
Public safety
Highway and streets
Capital outlay
Total expenditures 66,124 41,260 24,864
Excess(deficiency)of revenues over expenditures (6,124) 6,124
Other financing sources(uses):
Transfers in
Transfers out
Total other financing sources(uses):
Changes in fund balances (6,124) 6,124
Fund balances,beginning of year 6,124 (6,124)
Fund balances,end of year $ $ $
Page 82
Totals
Variance-
Positive
Budget Actual (Negative)
$ 261,569 $ 219,939 $ (41,630)
54,845 103,847 49,002
416,400 364,948 (51,452)
50,254 50,254
(3,254) (3,254)
9,000 991 (8,009)
741,814 736,725 (5,089)
424,993 413,523 11,470
869,707 144,490 725,217
456,852 470,833 (13,981)
30,778 (30,778)
1,751,552 1,059,624 691,928
(1,009,738) (322,899) 686,839
400,000 167,132 (232,868)
(80,000) (49,986) 30,014
320,000 117,146 (202,854)
(689,738) (205,753) 483,985
1,634,087 1,672,555 38,468
$ 944,349 $ 1,466,802 $ 522,453
Page 83
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Page 84
MUNICIPAL DEBT SERVICE FUND
Municipal Debt Service - to account for the payments of debt service on the Municipal Property
Corporation Revenue Bonds of 2003 Refunding, 2005 and 2007 Refunding, and Series 2010
Excise Tax Revenue Obligations.
Page 85
TOWN OF ORO VALLEY,ARIZONA
COMBINING BALANCE SHEET-NON-MAJOR DEBT SERVICE FUNDS
JUNE 30,2011
Municipal Debt
Service Totals
ASSETS
Cash and cash equivalents $ 1,501,084 $ 1,501,084
Total assets $ 1,501,084 $ 1,501,084
Fund balances:
Restricted 1,501,084 1,501,084
Total fund balances 1,501,084 1,501,084
Total liabilities and fund balances $ 1,501,084 $ 1,501,084
Page 86
TOWN OF ORO VALLEY,ARIZONA
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30,2011
Municipal Debt
Service Totals
Revenues:
Intergovernmental $ 81,811 $ 81,811
Investment earnings 347 347
Total revenues 82,158 82,158
Expenditures:
Debt service-
Principal retirement 234,970 234,970
Interest and fiscal charges 264,334 264,334
Total expenditures 499,304 499,304
Excess(deficiency)of revenues over expenditures (417,146) (417,146)
Other financing sources(uses):
Transfers in 319 319
Total other financing sources(uses): 319 319
Changes in fund balances (416,827) (416,827)
Fund balances,beginning of year 1,917,911 1,917,911
Fund balances,end of year $ 1,501,084 $ 1,501,084
Page 87
TOWN OF ORO VALLEY,ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL
ALL DEBT SERVICE FUNDS
YEAR ENDED JUNE 30,2011
Municipal Debt Service
Variance-
Positive
Budget Actual (Negative)
Revenues:
Special assessments $ $ $
Intergovernmental 81,811 81,811
Investment earnings 15,605 347 (15,258)
Total revenues 15,605 82,158 66,553
Expenditures:
Debt service-
Principal retirement 2,061,607 234,970 1,826,637
Interest and fiscal charges 264,334 (264,334)
Total expenditures 2,061,607 499,304 1,562,303
Excess(deficiency)of revenues over expenditures (2,046,002) (417,146) 1,628,856
Other financing sources(uses):
Transfers in 136,754 319 (136,435)
Total other financing sources(uses): 136,754 319 (136,435)
Changes in fund balances (1,909,248) (416,827) 1,492,421
Fund balances,beginning of year 1,909,248 1,917,911 8,663
Fund balances,end of year $ $ 1,501,084 $ 1,501,084
Page 88
Oracle Road Debt Service Totals
Variance- Variance-
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
$ $ 365,811 $ 365,811 $ $ 365,811 $ 365,811
81,811 81,811
366,203 (366,203) 381,808 347 (381,461)
366,203 365,811 (392) 381,808 447,969 66,161
378,012 225,000 153,012 2,439,619 459,970 1,979,649
147,548 (147,548) 411,882 (411,882)
378,012 372,548 5,464 2,439,619 871,852 1,567,767
(11,809) (6,737) 5,072 (2,057,811) (423,883) 1,633,928
136,754 319 (136,435)
136,754 319 (136,435)
(11,809) (6,737) 5,072 (1,921,057) (423,5 64) 1,497,493
11,809 11,724 (85) 1,921,057 1,929,635 8,578
$ $ 4,987 $ 4,987 $ $ 1,506,071 $ 1,506,071
Page 89
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Page 90
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.
Capital Asset Replacement — accounts for revenues dedicated for the routine replacement of
Town vehicles, computers, and other equipment.
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 constructing solar facilities,
improvements to Town parks, and historic properties.
Page 91
TOWN OF ORO VALLEY,ARIZONA
COMBINING BALANCE SHEET- NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30,2011
Townwide
Capital Asset General Impact Facilities
Replacement Fees Projects
ASSETS
Cash and cash equivalents $ 31,469 $ 586,020 $ 498,794
Total assets $ 31,469 $ 586,020 $ 498,794
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 31,469 $ $ 239,972
Total liabilities 31,469 239,972
Fund balances:
Restricted 586,020 258,822
Total fund balances 586,020 258,822
Total liabilities and fund balances $ 31,469 $ 586,020 $ 498,794
Page 92
Totals
$ 1,116,283
$ 1,116,283
$ 271,441
271,441
844,842
844,842
$ 1,116,283
Page 93
TOWN OF ORO VALLEY,ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES-
NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30,2011
Townwide
Capital Asset General Impact Facilities
Replacement Fees Projects
Revenues:
Impact fees $ $ 218,317 $
Intergovernmental 243,100
Investment earnings 558 154
Total revenues 218,875 243,254
Expenditures:
Current-
General government 19,761
Capital outlay 321,583 2,768,131
Debt service-
Interest and fiscal charges 58,696
Total expenditures 321,583 2,846,588
Excess(deficiency)of revenues over expenditures (321,583) 218,875 (2,603,334)
Other financing sources(uses):
Issuance of revenue bonds 2,445,000
Transfers in 11,550
Transfers out (178,056) (388,296)
Total other financing sources(uses): (178,056) 2,068,254
Changes in fund balances (499,639) 218,875 (535,080)
Fund balances,beginning of year 499,639 367,145 793,902
Fund balances,end of year $ $ 586,020 $ 258,822
Page 94
Totals
$ 218,317
243,100
712
462,129
19,761
3,089,714
58,696
3,168,171
(2,706,042)
2,445,000
11,550
(566,352)
1,890,198
(815,844)
1,660,686
$ 844,842
Page 95
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 30,2011
Capital Asset Replacement
Variance-
Positive
Budget Actual (Negative)
Revenues:
Impact fees $ $ $
Intergovernmental
Unrestricted state shared revenues
Investment earnings
Other
Total revenues
Expenditures:
Current-
General government
Capital outlay 499,639 321,583 178,056
Debt service-
Principal retirement
Interest and fiscal charges
Total expenditures 499,639 321,583 178,056
Excess(deficiency)of revenues over expenditures (499,639) (321,583) 178,056
Other financing sources(uses):
Issuance of revenue bonds
Transfers in
Transfers out (178,056) (178,056)
Total other financing sources(uses): (178,056) (178,056)
Changes in fund balances (499,639) (499,639)
Fund balances,beginning of year 499,639 499,639
Fund balances,end of year $ $ $
Page 96
Townwide Roadway Development Impact Fees General Impact Fees
Variance- Variance-
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
$ $ 263,302 $ 263,302 $ 375,838 $ 218,317 $ (157,521)
9,474,000 4,824,334 (4,649,666)
384,839 (384,839)
3,182 3,182 558 558
33,000 18,000 (15,000)
9,891,839 5,108,818 (4,783,021) 375,838 218,875 (156,963)
21,957,121 1,884,630 20,072,491 764,466 764,466
3,000,000 (3,000,000)
21,957,121 4,884,630 17,072,491 764,466 764,466
(12,065,282) 224,188 12,289,470 (388,628) 218,875 607,503
(12,065,282) 224,188 12,289,470 (388,628) 218,875 607,503
12,065,282 2,272,358 (9,792,924) 388,628 367,145 (21,483)
$ $ 2,496,546 $ 2,496,546 $ $ 586,020 $ 586,020
(Continued)
Page 97
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 30,2011
Townwide Facilities Projects
Variance-
Positive
Budget Actual (Negative)
Revenues:
Impact fees $ $ $
p
Intergovernmental 525,000 243,100 (281,900)
Unrestricted state shared revenues
Investment earnings 154 154
Other
Total revenues 525,000 243,254 (281,746)
Expenditures:
Current-
Generalgovernment 19,761 (19,761)
Capital outlay 3,412,354 2,768,131 644,223
Debt service-
Principal retirement
Interest and fiscal charges 58,696 (58,696)
Total expenditures 3,412,354 2,846,588 565,766
Excess(deficiency)of revenues over expenditures (2,887,354) (2,603,334) 284,020
( Y)
Other financing sources(uses):
Issuance of revenue bonds 2,445,000 2,445,000
Transfers in 11,550 11,550
Transfers out (467,000) (388,296) 78,704
Total other financing sources(uses): (467,000) 2,068,254 2,535,254
Changes in fund balances (3,354,354) (535,080) 2,819,274
Fund balances,beginning of year 3,354,354 793,902 (2,560,452)
Fund balances,end of year $ $ 258,822 $ 258,822
Page 98
Totals
Variance-
Positive
Budget Actual (Negative)
$ 375,838 $ 481,619 $ 105,781
9,999,000 5,067,434 (4,931,566)
384,839 (384,839)
3,894 3,894
33,000 18,000 (15,000)
10,792,677 5,570,947 (5,221,730)
19,761 (19,761)
26,633,580 4,974,344 21,659,236
3,000,000 (3,000,000)
58,696 (58,696)
26,633,580 8,052,801 18,580,779
(15,840,903) (2,481,854) 13,359,049
2,445,000 2,445,000
11,550 11,550
(467,000) (566,352) (99,352)
(467,000) 1,890,198 2,357,198
(16,307,903) (591,656) 15,716,247
16,307,903 3,933,044 (12,374,859)
$ $ 3,341,388 $ 3,341,388
Page 99
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Page 100
STATISTICAL SECTION
The statistical section presents financial statement trends as well as detailed financial and
operational information not available elsewhere in the report. The statistical section is intended
to enhance the reader's understanding of the information presented in the financial statements,
notes to the financial statements, and other supplementary information presented in this report.
The statistical section is comprised of the five categories of statistical information presented
below.
Financial Trends
These schedules contain information on financial trends to help the reader understand how
the Town's financial position and financial activities have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the
Town's ability to generate property revenue.
Debt Capacity
These schedules present information to help the reader evaluate the Town's current levels
of outstanding debt as well as assess the Town's ability to make debt payments and/or issue
additional debt in the future.
Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the Town's financial activities take place and to help
make comparisons with other municipalities.
Operating Information
These schedules contain information about the Town's operations and various resources to
help the reader draw conclusions as to how the Town's financial information relates to the
services provided by the Town.
Page 101
(This page intentionally left blank)
Page 102
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TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
Town of Oro
Town of Oro Town of Oro Valley Town of Oro
Fiscal Valley Valley Construction Valley
Year Sales Tax Bed Tax Sales Tax Utility Sales Tax Pima County
2002 2.00% 3.00% 2.00% 0.00% 5.60%
2003 2.00% 3.00% 2.00% 0.00% 5.60%
2004 2.00% 3.00% 4.00% 0.00% 5.60%
2005 2.00% 3.00% 4.00% 0.00% 5.60%
2006 2.00% 6.00% 4.00% 0.00% 6.10%
2007 2.00% 6.00% 4.00% 2.00% 6.10%
2008 2.00% 6.00% 4.00% 2.00% 6.10%
2009 2.00% 6.00% 4.00% 2.00% 6.10%
2010 2.00% 6.00% 4.00% 2.00% 7.10%
2011 2.00% 6.00% 4.00% 2.00% 7.10%
Source: Arizona Department of Revenue
Page 113
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TOWN OF ORO VALLEY, ARIZONA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2011
(UNAUDITED)
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable Debt
Pima County $ 455,856,000 7.19% $ 32,776,046
Pima County Community College District 15,967,664 7.19% 1,148,075
Amphitheater Unified School District No. 10 95,967,664 18.20% 17,466,115
Total Overlapping 51,390,236
Town of Oro Valley 12,582,913 100.00% 12,582,913
Total Direct 12,582,913
Total direct and overlapping debt $ 63,973,149
Source: Pima County, Pima County Community College District and Amphitheater Unified School District No. 10.
(1) Proportion applicable to the Town of Oro Valley,Arizona, is computed on the ratio of secondary
assessed valuation for 2010-11.
Page 115
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CALCULATION OF LEGAL DEBT MARGIN
JUNE 30, 2011
(UNAUDITED)
Net secondary assessed valuation $ 672,309,368
Water, Sewer, Light, Parks, Open Space and
Recreational Facility Bonds
Debt limit- 20% of secondary net assessed valuation $ 134,461,874
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 $ 134,461,874
All other general obligation bonds
Debt Limit-6% of secondary net assessed valuation 40,338,562
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 40,338,562
Total legal debt margin $ 174,800,436
Source: Pima County Assessor's Office
Page 117
TOWN OF ORO VALLEY,ARIZONA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(UNAUDITED)
Water Utility Revenue Bonds
Fiscal Gross Debt Service
Year Revenues Principal Interest Total Coverage
2002 9,435,130 1,768,040 2,173,192 3,941,232 2.39
2003 10,380,720 1,578,040 2,395,359 3,973,399 2.61
2004 12,202,664 1,478,710 2,650,195 4,128,905 2.96
2005 12,544,928 1,473,710 2,949,409 4,423,119 2.84
2006 14,989,621 1,907,362 2,888,226 4,795,588 3.13
2007 14,810,173 2,336,330 2,552,081 4,888,411 3.03
2008 17,668,212 1,981,898 2,452,583 4,434,481 3.98
2009 16,223,544 2,011,100 2,784,444 4,795,544 3.38
2010 15,207,113 5,270,354 2,689,427 7,959,781 1.91
2011 15,359,681 2,501,530 2,505,960 5,007,490 3.07
Governmental Revenue Bonds
Fiscal Gross Debt Service
Year Revenues Principal Interest Total Coverage
2002 16,268,695 486,456 320,846 807,302 20.15
2003 16,435,018 346,960 320,599 667,559 24.62
2004 19,837,894 361,290 386,228 747,518 26.54
2005 21,011,720 456,290 433,108 889,398 23.62
2006 25,018,727 452,638 415,640 868,278 28.81
2007 29,200,152 788,670 642,711 1,431,381 20.40
2008 30,629,130 708,102 501,150 1,209,252 25.33
2009 28,084,482 733,900 486,372 1,220,272 23.01
2010 25,695,598 6,510,516 933,536 7,444,052 3.45
2011 23,921,715 234,970 253,984 488,954 48.92
Certificates of Participation
Fiscal Gross Debt Service
Year Revenues Principal Interest Total Coverage
2002 16,268,695 160,000 245,938 405,938 40.08
2003 16,435,018 170,000 237,994 407,994 40.28
2004 19,837,894 180,000 15,768 195,768 101.33
2005 21,011,720 190,000 26,690 216,690 96.97
2006 25,018,727 205,000 16,566 221,566 112.92
2007 29,200,152 - - - 0.00
2008 30,629,130 - - - 0.00
2009 28,084,482 - - - 0.00
2010 25,695,598 - - - 0.00
2011 23,921,715 - - - 0.00
Special Assessment
Fiscal Gross Debt Service
Year Revenues Principal Interest Total Coverage
2002 - - - - 0.00
2003 - - - - 0.00
2004 - - - - 0.00
2005 - - - - 0.00
2006 - - 176,967 176,967 0.00
2007 379,840 185,000 186,828 371,828 0.00
2008 365,810 195,000 177,577 372,577 0.98
2009 367,539 205,000 248,429 453,429 0.81
2010 368,152 215,000 152,203 367,203 1.00
2011 365,811 225,000 147,548 372,548 0.98
Source: Town of Oro Valley Finance Department
Page 118
TOWN OF ORO VALLEY, ARIZONA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Personal Per
Income Capita
(thousands Personal Unemployment
Year Population of dollars) Income Rate
2002 34,050 $ 1,158,413,770 34,021 2.0%
2003 37,260 1,305,649,691 35,042 2.9%
2004 37,700 1,360,700,031 36,093 2.6%
2005 39,310 1,461,373,787 37,176 2.5%
2006 40,215 1,539,868,259 38,291 3.0%
2007 42,551 1,678,195,258 39,440 2.6%
2008 43,651 1,773,226,205 40,623 3.0%
2009 43,694 1,828,222,176 41,841 5.1%
2010 43,521 1,875,613,105 43,097 6.2%
2011 41,011 1,820,460,164 44,390 6.0%
Source: US Census Bureau, Arizona Employment statistics and Pima Association of Governments
Page 119
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WATER RATES
LAST TEN FISCAL YEARS
(UNAUDITED)
Base Rate Tier 1 Tier 2 Tier 3 Tier 4 GPF
Year monthly per 1,000 per 1,000 per 1,000 per 1,000 per 1,000
2002 12.00 1.90 2.35 3.00 N/A N/A
2003 12.00 1.90 2.35 3.00 N/A N/A
2004 12.30 1.92 2.55 3.25 N/A $ 0.21
2005 12.65 1.98 2.68 3.58 N/A 0.21
2006 12.65 1.98 2.68 3.58 N/A 0.21
2007 13.25 2.08 2.81 3.76 N/A 0.25
2008 13.25 2.08 2.81 3.76 $ 5.00 0.40
2009 13.91 2.18 2.95 3.95 5.25 0.55
2010 14.19 2.20 2.99 4.03 5.38 0.75
2011 14.19 2.20 2.99 4.03 5.38 0.75
Source: Town of Oro Valley Water Utility
Page 123
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