Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Financial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/2009
_PLi_EY 4,0, Ox- O, r( _r. ; t COMPREHENSIVE �1► A 411— lilliiii.ii A'OVND ED A9I N ANNUAL FINANCIAL REPORT , :,,,,, „.. _ _, ,} , „,,.. , - • ' Sit ,, ., ,.... ,„, ., ,,,,, ...._,„ -- -, ,,„ '..,:- , , ',',,,,,---..-., ,,,:,,,,,-;-..-.,,,,z,„4---.*,-,‘,-,-:,,--::. _ ,, ., , „, ,,,. 1 d „,,, +'t .., ..,. ...... . ,,,‘,J.r.,,,,,_. . ., ,.. _ - ., , . ,..., • ze T � ' � � . _. �� ► ' � et rn�t /tk� rrt.t� _ :� i.. !e - .' y + t:' fi .sit, '. � „ +• ,-';',7i.'..-.4 z---'... -'.,--. . . ;-..—.-*..,-.4, '...-- Irv ' ri •-......,.„0.,%,--,,,,,,,,‘‘ ' oi s - a yr n' 1 , AIM t , -' ' ,A,4,01afi','-.:, ‘„,'114,P4-1*,*44h-; ''''''''''''''— ' w �... t, ;i' + 4.e= 1111 x A# d b s y -� { r � ,, �. d. A re 4 -.NA 1, ' 1, z r pp, u., , ' : I i. , ,,,_,, . lit. i *4 ' .� r . , ''toto-0,0H, „ M t iY' w� bbw. r �j �� TOWN OF ORO VALLEY, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 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 30,2009 Prepared by: Finance Department Stacey Lemos, CPA Finance Director (This page intentionally left blank) TOWN OF ORO VALLEY,ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 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 21 Statement of Activities 22 Fund Financial Statements: Balance Sheet—Governmental Funds 26 Reconciliation of the Balance Sheet— Governmental Funds to the Statement of Net Assets 29 Statement of Revenues, Expenditures and Changes in Fund Balances— Governmental Funds 30 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances--Governmental Funds to the Statement of Activities 33 Statement of Net Assets--Proprietary Funds 34 TOWN OF ORO VALLEY,ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 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 35 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 60 Highway User Fund 61 Note to Required Supplementary Information 62 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Other Major Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balances--Budget and Actual: Oracle Road Debt Service Fund 66 Townwide Roadway Development Impact Fees Fund 67 Municipal Building Fund 68 Non-Major Governmental Funds: Combining Balance Sheet—All Non-Major Governmental Funds By Fund Type 71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances--All Non-Major Governmental Funds--By Fund Type 72 TOWN OF ORO VALLEY,ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS (Cont'd) FINANCIAL SECTION (Concl'd) Page COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Concl'd) Non-Major Special Revenue Funds: Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances--Budget and Actual 80 Non-Major Debt Service Fund: Schedule of Revenues, Expenditures and Changes in Fund Balances--Budget and Actual 87 Non-Major Capital Projects Funds: Combining Balance Sheet 91 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 92 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances--Budget and Actual 94 TOWN OF ORO VALLEY,ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS (Concl'd) STATISTICAL SECTION Page Financial Trends: Net Assets by Component 99 Changes in Net Assets 100 Fund Balances of Governmental Funds 102 Changes in Fund Balances of Governmental Funds 104 Revenue Capacity: Principal Employers 106 Principal Sales Taxpayers 107 Taxable Sales by Category 108 Direct and Overlapping Sales Tax Rates 109 Debt Capacity: Ratio of Outstanding Debt by Type 110 Direct and Overlapping Governmental Activities Debt 111 Legal Debt Margin Information 112 Calculation of Legal Debt Margin 113 Pledged-Revenue Coverage 114 Demographic and Economic Information: County-Wide Demographic and Economic Statistics 115 Operating Information: Full-Time-Equivalent Town Employees by Function 116 Water Utility Revenues by User Type 117 Operating Indicators by Function 118 Water Rates 118 Capital Assets Statistics by Function 120 INTRODUCTORY SECTION (This page intentionally left blank) rt 9 ) (Zs �y}��n.ill3. t,�r��yy/H}�72�z�P�.y�t..:�. ,y`iMbb hffu4��, ���t,g;4, k TOWN OF ORO VALLEY `• ' ' ¢ 6 ; ' 11000 N. LA CANADA DRIVE ORO VALLEY ARIZONA 85737 Administrative Offices(520)229-4700 Fax(520)297-0428 .,a,, {`,y� www.townoforovalley.corn °UNDED 1 November 16, 2009 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, 2009, 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 from 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, 2009, 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, 2009, 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 and has a land area of 34.85 square miles. The Town's current population is estimated at 43,694. 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 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 2006. 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 tentatively approved in June or July. 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. The Town Manager, subject to Town Council approval, may at any time transfer various unencumbered appropriation balances or portions thereof between a department or activity. The adopted budget cannot be amended in any way without Town Council approval. A schedule of revenues, expenditures and changes in fund balances -- budget and actual are provided in this report for the General and Highway User Funds. These schedules are presented as required supplementary information. For other Governmental Funds, this schedule is presented in the Combining and Individual Fund Statements and Schedules section of this report. it MAJOR INITIATIVES AND ACCOMPLISHMENTS FOR THE YEAR During fiscal year 2008-09, the Town continued to invest in programs and amenities that keep Oro Valley the Community of Excellence it strives to be. During this time, the Mayor and Town Council adopted a strategic plan which identified the following focus areas: • Financial &Economic Sustainability • Quality of Life • Community Infrastructure • Leadership and Communication The following are some of the highlights and accomplishments of the Town during the fiscal year: Town Council • Held a general obligation bond election for the development of Naranj a Town Site park • Adopted the Arroyo Grande State Land Annexation General Plan Amendment • Began working to draft a pre-annexation development agreement for the area known as Arroyo Grande, a proposed State Land annexation of 14 square miles north of Oro Valley's boundaries • Developed a long-term financial sustainability plan Town Clerk • All regular Council meetings are video streamed and all other public meetings are now audio streamed using Granicus system Town Manager • Initiated "Council on your Corner" meetings with Council Members to increase public outreach • Formalized a state and federal legislative intergovernmental affairs program Police • Adopt-A-Business program became operational in August of 2008. 36 patrol officers have adopted 124 businesses within the Oro Valley community as of January 1, 2009 • Citizen Volunteer Assistance Program members contributed 15,173 volunteer hours • Bicycle Officer program was reinstated in an effort to 'go green' and assist in effectively patrolling parks,businesses, schools, and neighborhoods • Digital Imaging Management System (DIMS) was implemented through capital improvement projects and allows digital storage and sharing of photos and vital case information Planning and Zoning • Steam Pump Ranch Awarded "Best Historic Planning Landmark" by Arizona Planning Association • Assisted Ventana Medical Systems with expansion plans • Started Environmentally Sensitive Lands (ESL) project • Established Green Team and developed Sustainability Plan 111 Parks and Recreation • Converted from bromine to chlorine system at Oro Valley Municipal Pool resulting in significant savings • Added 3.7 miles of shared use paths (CDO Linear Park and La Canada Dr.) and 1 mile of paved shoulders (La Canada Dr.)to Town inventory • Implemented a Recycling Program at all Town parks • Installed new irrigation system at James D. Kriegh Park which reduced irrigation use by 40% compared to old system Public Works • Crack sealed 115 lane miles of paved streets • Worked with the Regional Transportation Authority to launch two new commuter express bus services in February of 2009 • Secured Federal Stimulus funding for roadway projects within the Town • Town's first Park and Ride facility opened to public on March 2, 2009 • Received FEMA approval of$1.8 million wash mitigation/roadway crossing project Water Utility • The Utility took 1,421 water quality samples with all results meeting federal, state, and local water quality regulations • Increased customer base in calendar year 2008 by 295 new connections for a total of 18,330 connections in 12/31/08 • Phase 2 of the reclaimed water delivery system was completed in October 2008 • Total reclaimed water deliveries in 2008 were 574,769,000 gallons • Utility performed 145 residential water use audits in calendar year 2008 ECONOMIC CONDITIONS AND OUTLOOK The informationp resented 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 local economic outlook for the Town of Oro Valley saw a marked slowdown in residential and commercial construction activity during fiscal year 2008-09 as a result of the economic recession felt both nationwide and globally. The Town currently does not have aro ert tax in place, therefore the Town's budget is very dependent on sales taxes and p p Y state shared revenues to fund ongoing programs and services. Sales tax collections from construction, retail trade, restaurants and bars and hotel/motel lodging are the major industries which accounted for 83% of all sales tax receipts for fiscal year 2008-09. As the Town nears build-out within its incorporated boundaries and transitions from "growth" mode to "maintenance" mode over the next five to ten years, efforts continue to be made to diversify our revenues, explore the feasibility of additional revenue sources and cost control efforts. Construction sales tax collections for fiscal year 2008-09 decreased by $1.6 million, or 21%, as compared to fiscal year 2007-08. Demonstrating the decline in residential development, single family residential building permits issued during fiscal year 2008-09 totaled 120, down from 285 permits issued in fiscal year 2007-08. iv Sales tax collections from retail trade totaled $4,264,554 for this fiscal year. This is an increase of$247,798, or 6%, over last fiscal year. A major retail center, Oro Valley Marketplace, opened mid-year during fiscal year 2008-09 with over a million square feet of retail and restaurant space. It includes a Wal-Mart Supercenter, a 12-screen movie theater complex, a Best Buy electronics store, and a selection of many other smaller shops and restaurants. With its opening, the Town realized a significant drop in one-time construction-related revenues, which was somewhat offset by the gain in new retail sales tax dollars. In order to broaden the diversity of the Town's revenue base, the Town Council renewed its 2% transaction privilege tax on gas, water and electric utilities during fiscal year 2008-09. This tax was originally enacted in fiscal year 2006-07 with a 2-year sunset clause. Given the economic recessionary conditions and the significant shortfall in revenues the Town expects over the next 2 to 3 years from local and state-shared sources, the utility tax was renewed indefinitely to help bolster the Town's available funding resources. The utility tax generated approximately $1.4 million during fiscal year 2008-09. The Town of Oro Valley also saw further expansion of its flourishing biotechnology sector during fiscal year 2008-09 with the leading global pharmaceutical company, Sanofi-aventis, completing its $60 million research and development facility in Town. The new 110,350 square foot research and development facility has the capacity to almost double its current workforce over the next few years. Another leading biotech firm in Oro Valley, Ventana Medical Systems, owned by the Swiss pharmaceutical company, Roche, continues to move forward on a major expansion of its tissue diagnostics business expected to take place over the next five to ten years. Finally, the Town continues to hold as a priority the potential annexation of 14 square miles of undeveloped land north of the Town that is owned by the Arizona State Land Department. Proposed land use designations target the development in this area to consist of just less than 16,000 dwelling units, along with commercial, resort and employment center development. The continued growth in the retail, service, tourism and biotechnology sectors in Oro Valley provide further evidence of the Town's growing, diversified economy where local residents can live, work and shop within the Town boundaries. Long-term financial planning. On an annual basis, the Town performs a comprehensive update to its long-term Financial Sustainability Plan. Given the current unpredictable nature of the local, state and national economies, this plan was revised from a 10-year projection to a 5- year projection of the costs of existing Town service levels, expected revenue shortfalls and/or surpluses, and recommended service level changes or additional revenue solutions to meet the Town's needs over the long term. The scope of this analysis focuses primarily on the tax-based funds of the budget: the General Fund, Highway User Revenue Fund, Bed Tax Fund, and the Public Transportation Fund. Over the next three to four fiscal years, the Town is expecting its most significant revenue decline from its state-shared revenue sources, which include income taxes, sales taxes and vehicle license taxes. This revenue category made up roughly 38% of the Town's General Fund revenues during fiscal year 2008-09. This revenue category is expected to decline by approximately 9% for fiscal year 2009-10, another 15% for fiscal year 2010-11, and another 6% for fiscal year 2011-12 before beginning to recover in fiscal year 2012-13. Proposed measures to mitigate the impacts of these significant revenue shortfalls include increased use of the Town's 6% bed tax funds previously targeted for parks and recreation operations and v maintenance and economic development marketing efforts; and an increased focus on the need to reevaluate program service levels and identify core essential services versus non-core essential services. Also, during fiscal year 2008-09, the Town implemented a hiring freeze, which resulted in 8.96 full-time equivalent positions remaining unfilled through year-end. In addition, several capital infrastructure and Town facility projects were placed on hold due to the failure of the November 2008 bond election to request authorization to issue $48.6 million in bonds to construct multi-purpose recreation facilities at the Naranjo. Town Site. The Town had also budgeted for the capacity to construct a new municipal operations center estimated at$33 million to accommodate Police, Public Works and Water Utility operations in fiscal year 2008-09. This facility expansion was placed on hold by the Town Council due to budgetary concerns. Meanwhile, the Town continues to maintain healthy cash reserves in its major operating funds, with the General Fund's ending fund balance of $15.9 million equaling 53% of that fund's adopted expenditure budget of$29.9 million(excluding the contingency reserve budget). The Town Council continues to analyze and study all available revenue sources available to the Town in an effort to further diversify its revenue base and provide financial sustainability into the future. Cash Management. The Town uses a system of consolidated cash management. Cash from all funds is pooled in a central disbursement fund. Cash to be used for payment of current expenditures is maintained in a checking account; the balance of cash is maintained on deposit with the Arizona State Treasurer's Local Government Investment Pool. Cash in the Local Government Investment Pool (LGIP) is available upon 24 hours notice. The LGIP invests in U.S. Treasury Notes, U.S. Treasury Bills and federally guaranteed insurance contracts. The average interest rate for the fiscal year 2007-08 was 4.096% and 1.201% in fiscal year 2008-09. Investments held in the LGIP earned $725,059 in interest revenue for the year ended June 30, 2009. The account at LGIP for the construction of the reclaimed water system improvement project and potable water system improvements and expansion earned $18,325 in interest revenue. There was an investment loss on September 14, 2008 for $682,338 due to LGIP investments with Lehman Brothers. Trust accounts are held with Wells Fargo Bank for annual debt service payments. Funds on deposit in the trust accounts are invested solely in obligations that are issued or guaranteed by the U.S. Treasury, such as U.S. Treasury bills, bonds and notes ("U.S. Treasury Securities"). Interest on investments held with the trustee earned $21,847 for fiscal year 2008-09. A debt service reserve fund was established in 2005 for the construction of the Municipal Operations Center land and building construction. These funds are maintained in trust accounts with the Bank of New York Trust Co. N.A. Funds on deposit in the trust accounts are invested solely in obligations that are issued or guaranteed by the U.S. Treasury, such as U.S. Treasury bills, bonds and notes ("U.S. Treasury Securities"). Interest on investments held with the trustee earned$9,511 for fiscal year 2008-09. vi Risk Management. The Town of Oro Valley participates in the Arizona Municipal Risk Retention Pool. Risk coverage includes general liability, errors and omissions, property and automobile insurance. The policy insures up to $2,000,000 per incident occurrence plus any excess liability of up to a $10,000,000 limit per occurrence per year. Coverage is provided on a claims-made basis. The Town participates in the Arizona Municipal Workers Compensation Pool for workers compensation insurance coverage. The Town of Oro Valley is self-insured for unemployment compensation. Unemployment reserves totaled $228,593 as of June 30, 2009 for the Town's 416 full-time, part-time and seasonal employees. The Town did not make an unemployment contribution in fiscal year 2008-09. AWARDS AND ACKNOWLEDGMENTS Awards. 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, 2008. This was the fifteenth 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, LIVN-b3 a2411-c-.L /11 Jerene Watson Stacey Lemos, CPA Interim Town Manager Finance Director vii •.i}.:1 r?:a::iii,J.-r ,,,--viii `. w�.� , ;.:,?wf.,!?,..,.-Nez.:,i:.1„,„ , ,i . tai CU ..8 g) c o u cr) lt',.,..,.,'47.is'. --',=*)11f ; „z ro d -, '` o L::: r :o f� _o L •••t a'*• tc 4..., rro + O :i; ��j} ' 1#'�� 1 ice. -2 u o a. a p..',foilaccla,411:?.--,,,-4 01 0 u 10 co F-'-1 cnH c ro c o co c H 4-J c /� i 4r-,^ �./1 ...... tr)�/� V I Q c rocm rn c v. c N V O�• ._ (I) ._..J cu c N CO C/') ry . LL L .� a) V pm cro Z' p cfo a) :: jc c no 'o -C H CUCO 0 H 0 C 0 0 CO N1 L. V E E rcv U o (3) O a E =o c ,„ >, or c o = 0 . = cu 0 a) o (f) c w au CC E.- - (Ni o D > 1 v) O c0 o L O o uo Q N c . c 4-- 06 c_ O 0 >-- V) 0 C �' -s H no E aO m U 0ce F-- viii TOWN OF ORO VALLEY, ARIZONA LIST OF TOWN OFFICIALS ELECTED OFFICIALS Mayor Mr. Paul Loomis Vice-Mayor Mr. Kenneth"K.C." Carter Council Member Ms. Paula Abbott Council Member Mr. Alfred Kunisch Council Member Mr. William Garner Council Member Mr. Barry Gillaspie Council Member Ms. Salette Latas DEPARTMENT HEADS Interim Town Manager Jerene Watson Finance Director Stacey Lemos, CPA Human Resources Director Sandra Abbey Town Engineer Craig Civalier Town Clerk Kathryn E. Cuvelier Magistrate George Dunscomb Town Attorney Tobin Rosen Water Utility Director Philip Saletta Chief of Police Daniel G. Sharp Planning and Zoning Director Sarah More Building Safety Director Suzanne Smith Parks and Recreation Director Ainsley A. Legner Information Technology Director Kevin Verville ix Certificate of Achievement for Excellence 111Financial Reporting Presented to Town of ro Valley Arizona For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2008 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. .„.„,,,../.,,,,,„ „. foH x`.r<ry Ikaft*"""114. 4 litimejti fUNI1Om�$ zNTE , Sk CR " ,,„ , e NCll6, ___”) ii/7400 President *Cr ,20.19-i Executive Director • x FINANCIAL SECTION (This page intentionally left blank) 10120 N. Oracle Road � P.C. Tucson,Arizona 85704 HEINFELD, MEECH & C ., Tel(520)742-2611 CERTIFIED PUBLIC ACCOUNTANTS Fax(520)742-2718 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, 2009, 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, 2009, 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. In accordance with Government Auditing Standards, we have also issued our report dated November 16, 2009 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. TUCSON • PHOENIX • FLAGSTAFF www.heinfeldmeech.com The management's discussion and analysis on pages 5 through 15 and budgetary comparison information on pages 60 through 62 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Town's basic financial statements. 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 basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. 1-4 Akaciin 4' (0* Pd C. HEINFELD, MEECH & CO., P.C. Certified Public Accountants November 16, 2009 Page 2 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) Page 3 (This page intentionally left blank) Page 4 TOWN OF ORO VALLEY,ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2009 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, 2009. 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 2008-09 as follows. • The Town's total net assets of governmental activities decreased $1.8 million to$154.2 million and business-type activities increased$6.7 million to$52.6 million representing 75 percent and 25 percent respectively, of the total net assets of$206.8 million. • General revenues from governmental activities accounted for$27.1 million in revenue,or 72 percent of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions accounted for$10.3 million or 28 percent of total governmental activities revenues. The Town had $20.5 million of program revenues and $128,083 in general revenues related to business-type activities. • The Town had$39.2 million in expenses related to governmental activities,an increase of 11 percent from the prior fiscal year. The Town had$14.0 million in expenses related to business-type activities an increase of 9 percent from the prior fiscal year. • Among major funds, the General Fund had $28.1 million in revenues,which primarily consisted of sales taxes and intergovernmental revenues. The total expenditures of the General Fund were$27.1 million. The General Fund's fund balance decreased from $16.7 million to $15.9 million, due primarily to sales tax and commercial and residential building permit revenues not meeting budget. • The Highway User Revenue Fund, had $5.0 million in revenues,which primarily consisted of sales taxes and intergovernmental revenues. The total expenditures of the Highway User Revenue Fund were $4.6 million. • The Townwide Roadway Development Impact Fee Fund had $1.8 million in revenues, which primarily consisted of intergovernmental revenues. The total expenditures of the Townwide Roadway Development Impact Fee Fund were$8.1 million. The Townwide Roadway Development Impact Fee Fund's fund balance decreased from$8.6 million to$2.3 million,due primarily to the completion of the La Canada Drive widening and several street improvement projects. • The Water Fund operating revenues of$13.7 million exceeded operating expenses of$10.7 million. The change in net assets of$6.4 million was due to operating income of$3.0 million and capital contributions from line extension agreements of$3.7 million. Page 5 TOWN OF ORO VALLEY,ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30,2009 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. Page 6 TOWN OF ORO VALLEY,ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30,2009 OVERVIEW OF FINANCIAL STATEMENTS (Concl'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,Oracle Road Debt Service,Townwide Roadway Development Impact Fees, and the Municipal Building 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 one type of proprietary fund. 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 Utility. 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. Page 7 TOWN OF ORO VALLEY, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30,2009 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 $206.8 million as of June 30, 2009. The largest portion of the Town's net assets(72 percent)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 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 table presents a summary of the Town's net assets for the fiscal years ended June 30, 2009 and June 30, 2008. 2009 2008 2009 2008 Governmental Governmental Business-type Business-type Activities Activities Activities Activities 2009 Total 2008 Total Current and other assets $ 39,513,022 $ 46,391,734 $ 28,435,788 $ 29,530,278 $ 67,948,810 $ 75,922,012 Capital assets,net 143,325,108 138,925,390 91,683,772 86,592,743 235,008,880 225,518,133 Total assets,net 182,838,130 185,317,124 120,119,560 116,123,021 302,957,690 301,440,145 Current and other liabilities 6,291,123 6,241,535 6,011,823 6,430,049 12,302,946 12,671,584 Long-term liabilities 22,358,121 23,126,853 61,501,003 63,767,001 83,859,124 86,893,854 Total liabilities 28,649,244 29,368,388 67,512,826 70,197,050 96,162,070 99,565,438 Invested in capital assets,net of related debt 120,515,962 115,177,344 28,212,750 21,274,023 148,728,712 136,451,367 Restricted 7,537,331 14,072,781 7,537,331 14,072,781 Unrestricted 26,135,593 26,698,611 24,393,984 24,651,948 50,529,577 51,350,559 Total net assets $ 154,188,886 $155,948,736 $ 52,606,734 $ 45,925,971 $206,795,620 $201,874,707 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 potable water system and expansion of the reclaimed water system. • The addition of$10.9 million in governmental activities capital assets,including$1.3 million for vehicles and equipment,and$12.5 million for infrastructure. Additions to infrastructure assets consisted of La Canada Widening ($6.8 million), CDO Linear Shared Use Path ($2.4 million) and a Park and Ride Facility ($795,000) along with several subdivision improvements. Page 8 TOWN OF ORO VALLEY, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30,2009 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd) Changes in net assets. The Town's total revenues for the fiscal year ended June 30, 2009, were $58.1 million. The total cost of all programs and services was $53.2 million. The following table presents a summary of the changes in net assets for the fiscal years ended June 30, 2009 and June 30, 2008. 2009 2008 2009 2008 Governmental Governmental Business-type Business-type 2009 2008 Activities Activities Activities Activities Total Total Revenues: Program revenues: Charges for services $ 3,149,867 $ 4,183,553 $ 16,844,741 $ 17,161,552 $ 19,994,608 $21,345,105 Operating grants and contributions 5,392,667 5,619,003 5,392,667 5,619,003 Capital grants and contributions 1,781,571 10,264,829 3,697,229 3,567,083 5,478,800 13,831,912 General revenues: Sales taxes 15,376,408 17,168,998 15,376,408 17,168,998 Franchise taxes 506,685 516,652 506,685 516,652 Impact fees 441,020 910,741 441,020 910,741 Unrestricted state shared revenues 10,676,796 10,904,654 10,676,796 10,904,654 Investment earnings 113,995 1,590,654 128,083 864,494 242,078 2,455,148 Total revenues 37,439,009 51,159,084 20,670,053 21,593,129 58,109,062 72,752,213 Expenses: General government 9,936,639 9,080,766 9,936,639 9,080,766 Public safety 15,019,980 14,347,250 15,019,980 14,347,250 Highways and streets 9,481,040 7,292,972 9,481,040 7,292,972 Culture and recreation 3,806,555 3,644,973 3,806,555 3,644,973 Interest on long-term debt 954,645 987,074 954,645 987,074 Water 13,495,124 12,676,275 13,495,124 12,676,275 Stormwater drainage 494,166 177,673 494,166 177,673 Total expenses 39,198,859 35,353,035 13,989,290 12,853,948 53,188,149 48,206,983 Change in net assets before transfers (1,759,850) 15,806,049 6,680,763 8,739,181 4,920,913 24,545,230 Transfers 1,600,000 (1,600,000) Increase(decrease)in net assets $ (1,759,850) $ 17,406,049 $ 6,680,763 $ 7,139,181 $ 4,920,913 $24,545,230 Total revenues decreased$14.6 million,or 20 percent,primarily due to a reduction in collections in local sales taxes, building permit fees, capital grants and investment earnings. A decrease of$1.8 million in sales tax was largely due to a decline in construction sales tax collections. Commercial and residential building permit fee collections decreased by$1.3 million compared to last fiscal year. A decrease in capital grants of$8.4 million was due to HELP loan funds received in fiscal year 2007-08 for the La Canada Drive widening project. Interest investments decreased by$2.2 million due to significantly lower interest rates paid on investments at the Local Government Investment Pool (LGIP). Expenses increased$5.0 million primarily due to increased salary and benefit costs,operational costs and an increase in depreciation expense due to the completion of several major roadway projects. Page 9 TOWN OF ORO VALLEY, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30,2009 GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl'd) Governmental and Business-type activities. The following table presents the cost of the 7 major Town functional activities. The table also shows each function's net cost(total cost less charges for servicesenerated bythe activities and intergovernmental aid provided for specific programs). The g net cost shows the financial burden that was placed on the State and Town's taxpayers by each of these functions. 2009 2008 Net Net Total (Expense)/ Total (Expense)/ Governmental Activities Expenses Revenue Expenses Revenue Generalg overnment $ 9,936,639 $ (6,900,795) $ 9,080,766 $ (251,600) Public safety 15,019,980 (14,442,958) 14,347,250 (12,843,190) Highways and streets 9,481,040 (3,536,920) 7,292,972 1,969,833 Culture and recreation 3,806,555 (3,039,436) 3,644,973 (3,173,619) Interest on long-term debt 954,645 (954,645) 987,074 (987,074) Total $39,198,859 $(28,874,754) $ 35,353,035 $(15,285,650) Business-type Activities Water $13,495,124 $ 6,300,191 $ 12,676,275 $ 6,973,578 Stormwater drainage 494,166 252,489 177,673 901,109 Total $13,989,290 $ 6,552,680 $ 12,853,948 $ 7,874,687 • The cost of allg overnmental activities this year was $39.2 million. The increase of$3.8 million from the prior year was due primarily to personnel and operating and maintenance costs. • The cost of all business-type activities this year was $14.0 million. The increase of$1.1 million from the prior year was primarily due to personnel and operating and maintenance costs. • Federal and Stateg overnments,developer contributions,and charges for services subsidized certaing overnmental programs and business-type programs with revenues of$30.9 million. • Net cost ofg overnmental activities of$28.9 million was financed by general revenues,which are made up of primarily sales taxes and state shared revenues of$26.1 million. Page 10 TOWN OF ORO VALLEY,ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30,2009 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,unreserved 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 $31.1 million, a decrease of$6.8 million due to operational costs and the completion of several roadway proj ects. The General Fund is the principal operating fund of the Town. The decrease in fund balance of $725,950 in the General Fund for the fiscal year to $15.9 million, was due primarily to revenues from sales taxes and building permit fees not meeting budget. The fund balance of the Highway User Revenue Fund showed an increase of$210,533 primarily due to cost savings in operational costs. The Townwide Roadway Fund showed a decrease of$6.3 million due primarily to the completion of La Canada Road widening and several street improvement projects. Proprietary funds. Net assets of the Enterprise Funds at the end of the year amounted to $52.6 million. The increase of$6.7 million from fiscal year 2007-08 was primarily due to operating income of$3.2 million and$3.7 million in capital contributions from line extension agreements. Page 11 TOWN OF ORO VALLEY,ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2009 BUDGETARY HIGHLIGHTS There were no amendments to the Town of Oro Valley's fiscal year 2008-09 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$2.5 million in revenues was a result of a decline in construction sales taxes, residential and commercial building permit fees and interest on investments. • The favorable variance of$15.7 million (includes unutilized contingency reserves of$13.0 million) in expenditures was a result of a hiring freeze and operational cost savings in all departments. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. As of June 30, 2009, the Town had invested $304.1 million in capital assets, including buildings, facilities, vehicles, computers, equipment, and infrastructure assets. This amount represents a net increase prior to depreciation of$18.1 million from last year,primarily due to the completion of several roadway projects,reclaimed water system projects,and expansion of the potable water and stormwater systems. Total depreciation expense for the year was $9.0 million. Total depreciation expense for the year was $9.0 million. The following schedule presents capital asset balances for the fiscal years ended June 30,2009 and June 30, 2008. As of As of Governmental Activities June 30, 2009 June 30, 2008 Land $ 18,878,468 $ 18,03 8,076 Infrastructure 139,428,821 126,949,031 Buildings and improvements 19,871,218 19,832,560 Vehicles, machinery and equipment 8,954,814 8,036,706 Construction in progress 3,569,261 7,359,025 Less: Accumulated depreciation (47,377,474) (41,290,008) Total $ 143,325,108 $138 925,3 90 Page 12 TOWN OF ORO VALLEY, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2009 CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl'd) As of As of Business-type Activities June 30, 2009 June 30, 2008 Land $ 2,410,660 $ 2,410,660 Water rights 8,534,490 8,534,490 Water system 97,496,342 84,555,171 Stormwater system 1,028,602 1,028,602 Equipment and vehicles 3,264,268 2,766,095 Construction in progress 613,499 6,423,996 Less: Accumulated depreciation (21,664,089) (19,126,269) Total $ 91,683,772 $ 86,592,745 Additional information on the Town's capital assets can be found in Note 5. Debt Administration. At year-end,the Town had$86.3 million in long-term debt outstanding,$4.0 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, 2009 and June 30, 2008. Governmental Activities 2009 2008 Revenue bonds $ 11,449,146 $ 12,183,046 Special assessment bonds 3,360,000 3,565,000 Loan payable 8,000,000 8,000,000 Total $ 22,809,146 $ 23,748,046 Business-type Activities 2009 2008 Revenue bonds $ 57,575,854 $ 59,586,954 Loan payable 5,788,122 5,731,766 Capital leases 107,046 $ 63,471,022 $ 65,318,720 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 $138.8 million. The Town of Oro Valley has a bond rating of"AA-" rating from Standard & Poor's and an "A+" rating from Fitch on outstanding revenue bonds. Additional information on the Town's long-term debt can be found in Notes 6 through 10. Page 13 TOWN OF ORO VALLEY,ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2009 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES • The unemployment rate for the Town of Oro Valley is currently 5.1%. Pima County's and the State of Arizona's unemployment rates are 8.1% and 9.2%, respectively. • The Town's secondary assessed valuation for the current year is$693,924,598,an increase of 1% over last fiscal year. • Single family residential(SFR)building permits issued in this fiscal year totaled 120,which is down from 285 SFR building permits issued last year, Projections for SFR building permits are 60 for fiscal year 2009-10 which is reflective of the slowdown in the housing industry. • In October 2008, the Oro Valley Marketplace was opened and includes a Wal-Mart Supercenter,Best Buy,a multi-screen movie theater complex,and several other restaurants and retail tenants. The adopted combined operating and capital expenditure budget for fiscal year 2009-10 totals $121.5 million, a decrease of 40%over last year's budget of$203.1 million. This decrease is attributed to the current economic recession which caused a decline in major revenue sources such as local sales taxes, state shared revenues and residential and commercial building permit fees. Another major area of budget reduction occurred in the Town's capital expenditure budget. This portion of the adopted budget declined by $83.3 million, from $107.7 million in fiscal year 2008-09 to $24.4 million in fiscal year 2009-10. This was mainly due to the failure at the November 2008 election of the$48.6 million bond package to build the Naranja Town Site park facilities. In addition,the Town Council voted to place on hold the construction of a $33 million Municipal Operations Center to house Police, Public Works and Water Utility operations due to the recessionary economy. 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. Page 14 (This page intentionally left blank) Page 15 (This page intentionally left blank) Page 16 BASIC FINANCIAL STATEMENTS Page 17 (This page intentionally left blank) Page 18 GOVERNMENT-WIDE FINANCIAL STATEMENTS Page 19 (This page intentionally left blank) Page 20 TOWN OF ORO VALLEY,ARIZONA STATEMENT OF NET ASSETS JUNE 30,2009 Governmental Business-type Activities Activities Total ASSETS Current assets: Cash and cash equivalents $ 32,414,545 $ 23,499,360 $ 55,913,905 Taxes receivable 1,029,373 1,029,373 Accounts receivable 360,117 1,906,531 2,266,648 Intergovernmental receivable 1,404,065 1,404,065 Special assessments 3,360,000 3,360,000 Interest receivable 41,385 25,971 67,356 Prepaid items 2,682 2,682 Total current assets 38,612,167 25,431,862 64,044,029 Noncurrent assets: Deferred bond charges 900,855 3,003,926 3,904,781 Capital assets,non-depreciable 22,447,729 11,558,649 34,006,378 Capital assets,depreciable(net) 120,877,379 80,125,123 201,002,502 Total noncurrent assets 144,225,963 94,687,698 238,913,661 Total assets 182,838,130 120,119,560 302,957,690 LIABILITIES Current liabilities: Accounts payable 1,759,491 444,501 2,203,992 Accrued wages and benefits 1,022,426 100,489 1,122,915 Intergovernmental payable 715,811 767,417 1,483,228 Interest payable 255,760 1,383,680 1,639,440 Unearned revenue 209,319 209,319 Customer deposits payable 231,626 131,039 362,665 Compensated absences 1,182,680 105,678 1,288,358 Capital leases payable 52,252 52,252 Loans payable 540,777 540,777 Special assessment bonds 215,000 215,000 Revenue bonds 699,010 2,485,990 3,185,000 Total current liabilities 6,291,123 6,011,823 12,302,946 Noncurrent liabilities: Compensated absences 344,192 55,742 399,934 Capital leases payable 54,794 54,794 Loans payable 8,000,000 5,247,345 13,247,345 Special assessment bonds 3,145,000 3,145,000 Deferred bond premium 118,793 1,053,258 1,172,051 Revenue bonds 10,750,136 55,089,864 65,840,000 Total non-current liabilities 22,358,121 61,501,003 83,859,124 Total liabilities 28,649,244 67,512,826 96,162,070 NET ASSETS Invested in capital assets,net of related debt 120,515,962 28,212,750 148,728,712 Restricted for: Public safety 242,499 242,499 Highways and streets 4,305,417 4,305,417 Capital outlay 2,764,919 2,764,919 Debt service 158,816 158,816 Other 65,680 65,680 Unrestricted 26,135,593 24,393,984 50,529,577 Total net assets $ 154,188,886 $ 52,606,734 $ 206,795,620 The notes to the financial statements are an integral part of this statement. Page 21 TOWN OF ORO VALLEY,ARIZONA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2009 Net(Expense) Revenue and Changes Program Revenues in Net Assets Operating Capital Charges for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Activities Primary Government Governmental activities: General government $ 9,936,639 $ 2,835,884 $ 104,248 $ 95,712 $ (6,900,795) Public safety 15,019,980 83,279 493,743 (14,442,958) Highway and streets 9,481,040 119,847 4,138,414 1,685,859 (3,536,920) Culture and recreation a ion 3,806,555 110,857 656,262 (3,039,436) Interest on long-term debt 954,645 (954,645) Total governmental activities 39,198,859 3,149,867 5,392,667 1,781,571 (28,874,754) Business-type activities: Water 13,495,124 16,098,086 3,697,229 Stormwater drainage 494,166 746,655 Total business-type activities 13,989,290 16,844,741 3,697,229 Total primary government $ 53,188,149 $ 19,994,608 $ 5,392,667 $ 5,478,800 (28,874,754) v General revenues: Taxes: Sales taxes 15,376,408 Franchise taxes 506,685 Impact fees 441,020 Unrestricted state shared revenues 10,676,796 Investment earnings 113,995 Total general revenues _27,1 14,904 Changes in net assets (1,759,850) Net assets,beginning of year 155,948,736 Net assets,end of year $154,188,886 The notes to the financial statements are an integral part of this statement. Page 22 Net(Expense)Revenue and Changes in Net Assets Business-type Activities Totals $ $ (6,900,795) (14,442,958) (3,536,920) (3,039,436) (954,645) (28,874,754) 6,300,191 6,300,191 252,489 252,489 6,552,680 6,552,680 6,552,680 (22,322,074) 15,376,408 506,685 441,020 10,676,796 128,083 242,078 128,083 27,242,987 6,680,763 4,920,913 45,925,971 201,874,707 $ 52,606,734 $206,795,620 Page 23 (This page intentionally left blank) FUND FINANCIAL STATEMENTS Page 25 TOWN OF ORO VALLEY,ARIZONA BALANCE SHEET-GOVERNMENTAL FUNDS JUNE 30,2009 Oracle Road General Fund HURF Debt Service ASSETS Cash and cash equivalents $ 16,352,188 $ 4,416,915 $ 4,465 Taxes receivable 1,029,373 Accounts receivable 353,513 6,604 Intergovernmental receivable 579,560 239,178 Special assessments 3,360,000 Interest receivable 27,593 6,485 Prepaid items 2,682 Total assets $ 18,344,909 $ 4,662,578 $ 3,371,069 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 535,192 $ 346,144 $ Accrued wages and benefits 904,006 89,128 Intergovernmental payable 715,811 Interest payable Deferred revenue 209,319 3,360,000 Customer deposits payable 40,143 Total liabilities 2,404,471 435,272 3,360,000 Fund balances: Unreserved: Undesignated 15,940,438 4,227,306 11,069 Unreserved reported in: Special revenue funds Debt service funds Capital projects funds Total fund balances 15,940,438 4,227,306 11,069 Total liabilities and fund balances $ 18,344,909 $ 4,662,578 $ 3,371,069 The notes to the financial statements are an integral part of this statement. Page 26 Townwide Roadway Non-Major Total Development Municipal Governmental Governmental Impact Fees Building Funds Funds $ 2,474,658 $ 5,851,750 $ 3,314,569 $ 32,414,545 1,029,373 360,117 585,327 1,404,065 3,3 60,000 4,283 3,024 41,385 2,682 $ 3,064,268 $ 5,851,750 $ 3,317,593 $ 38,612,167 $ 542,281 $ 21,290 $ 314,584 $ 1,759,491 11,901 17,391 1,022,426 715,811 255,760 255,760 3,569,319 947 190,536 231,626 798,988 33,191 522,511 7,554,433 2,265,280 5,818,559 28,262,652 1,659,776 1,659,776 147,747 147,747 987,559 987,559 2,265,280 5,818,559 2,795,082 31,057,734 $ 3,064,268 $ 5,851,750 $ 3,317,593 $ 38,612,167 Page 27 (This page intentionally left blank Page 28 TOWN OF ORO VALLEY,ARIZONA RECONCILIATION OF THE BALANCE SHEET-GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30,2009 Total governmental fund balances $ 31,057,734 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental acitivities are not financial resources and therefore are not reported in the funds. Governmental capital assets $ 190,702,582 Less accumulated depreciation (47,377,474) 143,325,108 Special assessments receivable are not available to pay for current period expenditures and therefore are not reported in the funds. 3,360,000 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 900,855 Deferred bond premium (118,793) 782,062 Long-term liabilites are not due and payable in the current period and therefore are not reported in the funds, Special assessment bonds (3,360,000) Revenue bonds (11,449,146) Loans payable (8,000,000) Compensated absences (1,526,872) (24,336,018) Net assets of governmental activities $ 154,188,886 The notes to the financial statements are integral part of this statement. Page 29 TOWN OF ORO VALLEY,ARIZONA STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- GOVERNMENTAL FUNDS YEAR ENDED JUNE 30,2009 Oracle Road General Fund HURF Debt Service Revenues: Sales taxes $ 12,462,740 $ 1,928,546 $ Franchise taxes 506,685 Impact fees Special assesments 367,539 Intergovernmental 11,85 8,767 2,970,496 Licenses,fees&permits 1,482,735 25,195 Fines,forfeitures Sr.penalties 341,438 Charges for services 1,011,182 Contributions and donations 1,000 Investment earnings 226,270 72,470 Other 193,665 11,603 Total revenues 28,084,482 5,008,310 367,539 Expenditures: Current- General government 8,925,224 Public safety 14,200,797 Highway and streets 3,286,053 Culture and recreation 3,382,023 Capital outlay 581,122 1,282,092 Debt service- Principal retirement 205,000 Interest and fiscal charges 248,429 Total expenditures 27,089,166 4,568,145 453,429 Excess(deficiency)of revenues over expenditures 995,316 440,165 (85,890) Transfers in Transfers out (1,721,266) (229,632) Total other financing sources(uses) (1,721,266) (229,632) Changes in fund balances (725,950) 210,533 (85,890) Fund balances, beginning of year 16,666,388 4,016,773 96,959 Fund balances,end of year $ 15,940,438 $ 4,227,306 $ 11,069 The notes to the financial statements are an integral part of this statement. Page 30 Townwide Roadway Non-Major Total Development Municipal Governmental Governmental Impact Fees Building Funds Funds $ $ $ 985,122 $ 15,376,408 506,685 316,954 124,066 441,020 367,539 1,523,320 1,263,630 17,616,213 1,507,930 72,282 413,720 55,194 1,066,376 1,000 (38,980) 9,511 (155,276) 113,995 18,000 9,855 233,123 1,819,294 _ 9,511 2,354,873 37,644,009 65,209 595,596 9,586,029 88,626 14,289,423 562,672 3,848,725 34,282 3,416,305 7,855,983 23,976 1,589,741 11,332,914 733,900 938,900 287,260 498,372 1,034,061 8,143,243 89,185 4,103,189 44,446,357 (6,323,949) (79,674) (1,748,316) (6,802,348) 1,950,898 1,950,898 (1,950,898) 1,950,898 (6,323,949) (79,674) 202,582 (6,802,348) 8,589,229 5,898,233 2,592,500 37,860,082 $ 2,265,280 $ 5,818,559 $ 2,795,082 $ 31,057,734 Page 31 (This page intentionally left blank Page 32 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 30,2009 Net changes in fund balances-total governmental funds $ (6,802,348) 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 $ 10,875,510 Less current year depreciation (6,475,792) 4,399,718 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. (205,000) Repayment of debt principal are expenditures in the governmental funds,but the repayment reduces long-term liabilities in the Statement of Net Assets. 938,900 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 79,416 Compensated absences (170,536) (91,120) Change in net assets in governmental activities $ (1,759,850) The notes to the financial statements are integral part of this statement. Page 33 TOWN OF ORO VALLEY,ARIZONA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30,2009 Enterprise Funds Non-Major Water Enterprise Fund Total ASSETS Current assets: Cash and cash equivalents $ 23,189,855 $ 309,505 $ 23,499,360 Accounts receivable 1,825,087 81,444 1,906,531 Interest receivable 25,448 523 25,971 Total current assets 25,040,390 391,472 25,431,862 Noncurrent assets: Deferred bond charges 3,003,926 3,003,926 Capital assets,non-depreciable 11,472,037 86,612 11,558,649 Capital assets,depreciable(net) 78,830,445 1,294,678 80,125,123 Total noncurrent assets 93,306,408 1,3 81,290 94,687,698 Total assets 118,346,798 1,772,762 120,119,560 LIABILITIES Current liabilities: Accounts payable 398,824 45,677 444,501 Accrued wages and benefits 94,020 6,469 100,489 Intergovernmental payable 767,417 767,417 Interest payable 1,3 83,680 1,3 83,680 Customer deposits payable 131,039 131,039 Compensated absences 104,065 1,613 105,678 Capital leases payable 52,252 52,252 p Loans payable 540,777 540,777 Revenue bonds 2,485,990 2,485,990 Total current liabilities 5,905,812 106,011 6,011,823 Noncurrent liabilities: Compensated absences 51,728 4,014 55,742 Capital leases payable 54,794 54,794 Loans payable 5,247,345 5,247,345 Deferred bond premium 1,053,258 1,053,258 Revenue bonds 55,089,864 55,089,864 Total non-current liabilities _T 61,442,195 58,808 61,501,003 Total liabilities 67,348,007 164,819 67,512,826 NET ASSETS Invested in capital assets,net of related debt 26,938,506 1,274,244 28,212,750 Unrestricted 24,060,285 333,699 24,393,984 Total net assets $ 50,998,791 $ 1,607,943 $ 52,606,734 The notes to the financial statements are an integral part of this statement. Page 34 TOWN OF ORO VALLEY,ARIZONA STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2009 Enterprise Funds Non-Major Water Enterprise Fund Total Operating revenues: Charges for services $ 13,376,193 $ 734,599 $ 14,110,792 Other 321,069 321,069 Total operating revenues — 13,697,262 734,599 14,431,861 Operating expenses: Costs of sales and services 8,048,555 450,321 8,498,876 Depreciation and amortization 2,662,125 43,845 2,705,970 Total operating expenses _ 10,710,680 494,166 11,204,846 Operating income 2,986,582 240,433 3,227,015 Nonoperating revenues(expenses): Impact fees 812,740 812,740 Intergovernmental 12,056 12,056 Connection fees 1,588,084 1,588,084 Investment earnings 125,458 2,625 128,083 Interest expense (2,784,444) (2,784,444) Total nonoperating revenues (expenses) (258,162) 14,681 (243,481) Income before capital contributions and transfers 2,728,420 255,114 2,983,534 Capital contributions 3,697,229 3,697,229 Changes in net assets 6,425,649 255,114 6,680,763 Total net assets,beginning of year 44,573,142 1,352,829 45,925,971 Total net assets,end of year $ 50,998,791 $ 1,607,943 $ 52,606,734 The notes to the financial statements are an integral part of this statement. Page 35 TOWN OF ORO VALLEY,ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2009 Enterprise Funds Non-Major Water Enterprise Fund Total Increase(Decrease)in Cash and Cash Equivalents Cash flows from operating activities: Cash received from customers $ 14,345,410 $ 791,725 $ 15,137,135 Cash payments to suppliers for goods and services (6,496,424) (252,189) (6,748,613) Cash payments to employees for services (2,378,545) (152,086) (2,530,631) Net cashrovided byoperating activities 5,470,441 387,450 5,857,891 p p Cash flows from noncapital and related financing activities: Connection fees 1,588,084 1,588,084 Grants received 12,056 12,056 Net cash provided by noncapital financing activities 1,588,084 12,056 1,600,140 Cash flows from capital and related financing activities: Development impact fees 812,740 812,740 Acquisition of capital assets (3,795,118) (103,266) (3,898,384) Proceeds from loans 693,521 693,521 Principal paid on long-term debt (2,648,264) (94,340) (2,742,604) Interest on long-term debt (2,643,714) (2,643,714) Net cash used for capital and related financing activities (7,580,835) (197,606) (7,778,441) Cash flows from investing activities: Investment income 141,225 2,312 143,537 Net cash provided by investing activities 141,225 2,312 143,537 Net increase(decrease)in cash and cash equivalents (381,085) 204,212 (176,873) Cash and cash equivalents,beginning of year 23,570,940 105,293 23,676,233 Cash and cash equivalents,end of year $ 23,189,855 $ 309,505 $ 23,499,360 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income $ 2,986,582 $ 240,433 $ 3,227,015 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 2,662,125 43,845 2,705,970 Change in assets and liabilities: Decrease in accounts receivable 676,887 57,126 734,013 Increase(decrease)in accounts payable (883,330) 38,483 (844,847) Increase in accrued payroll and employee benefits 44,734 4,212 48,946 Increase in compensated absences payable 12,182 3,351 15,533 Decrease in deposits held for others (28,739) (28,739) Total adjustments 2,483,859 147,017 2,630,876 Net cash provided by operating activities $ 5,470,441 $ 387,450 $ 5,857,891 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 30,2009 NOTE 1 --SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Town of Oro Valley,Arizona have been prepared in conformity enerall accepted in the United States of America as applied to with accounting principles generally p government units. The Governmental Accounting Standards Board (GASB) is the accepted bodyfor establishinggovernmental accounting and financial reporting principles. standard-setting The more significant of the Town's accounting policies are described below. A. Reporting Entity The Town is municipalentity 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 f the Town's operations and so data from these units are combined with data of the Town,the primarygovernment. The blended component units presented have a June 30 year end. The financial reporting entityconsists of a primary government and its component units. A p g component unitlegally is a le all separate entity that must be included in the reporting entity in conformity generally with enerall accepted accounting principles. The Town is a primary government separately elected governingbody, is legally separate, and is fiscally independent of that has a sepa y other state or localgovernments.overnments. Furthermore, component units combined with the Town for statementpresentation purposes, and the Town, are not included in any other financial governmental reporting entity. Consequently,the Town's financial statements include the funds p g ty 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 in the Town's reporting entitybecause of the significance of its operational relationship included p g or financial relationship i l 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 p prepared for the component unit on a stand-alone basis. The Town Municipal of Oro ValleyMunici al 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, which 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 p � � uirin the Canada Hills and Rancho Vistoso water companies. The Town has a contractual obligation for the repayment of the Municipal Property Corporation's Municipal Facilities Revenue Bonds, Series 1996, 1999, 2001, 2003, 2005, and 2007. The activity of the 1996 MPC is reported in the applicable water enterprise fund and the activity of the Series 1999,2001,2003,2005,and 2007 p MPC is reported in the applicable water enterprise and governmental funds. All related receivables andPaY ables between the Town and the MPC have been eliminated. Page 37 TOWN OF ORO VALLEY, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 1 --SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 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 nonfiduciary 1 des all of the activities of the Town and its component units. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities of the Town. Governmental ' ' ' normallyare supported bysales taxes and intergovernmental revenues,and are reported activities pp 1 from business-type activities,which rely to a significant extent on fees and charges for separately yp support. The statement of activities demonstrates the degree to which the direct expenses of a given functionsegment or are offset byprogram revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers ora applicants who purchase,use,or directly benefit from goods,services,or privileges pp r vided bya given function or segment and 2) grants and contributions that are restricted to provided 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 individualg overnmental funds and the major individual enterprise fund are reported as separate columns in the fund financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation Government-wide Financial Statements -- The government-wide financial statements are reported usingthe economic resources measurement focus and the accrual basis of accounting,as p are thero rieta fund financial statements. Revenues are recorded when earned and expenses p p rY 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 grantoror provider rovider have been met. As a general rule, the effect of internal activity has been eliminated from theg overnment-wide financial statements; however, the effects of interfund servicesp rovided and used between functions are reported as expenses and program revenues at amounts approximating their external exchange value. Page 38 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 NOTE 1 --SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 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 topay 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 generallyare recorded when a liability is incurred, as under accrual accounting. p 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 arise when resources are received by the Town before it has legal claim to them, as wheng rant 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 p g control is administered byfund,with budgetary control for operating performance regulated at the departmental level, e.g., finance, economic development,police, and parks and recreation. 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. wa Hi hUser Revenue Fund—This fund is used to account for the Town's share of motor Highway 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. Page 39 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 1 --SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) Townwide Development RoadwayDevelo ment Impact Fees Fund—This fund accounts for the collection and capital expenditures of the Townwide Roadway Development Impact Fees. p Municipal BuildingFund—This fund accounts for the bond proceeds issued to acquire land and construct the public works facility. The Town reports the following major proprietary fund. Water Fund--This fund accounts for the costs to operate,construct and finance the Town's water system. Private se ctor standards of accounting and financial reporting issued prior to December 1, 1989, generally nm are followed in both the goverment-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 distinguishoperating o erating revenues and expenses from nonoperating items. Operating revenuesexpenses and generallyresult 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 enterprise fund are charges to customers for water and stormwater dg Operating drainage services. O eratin expenses for these funds include the cost of sales and services, depreciation, and amortization. All revenues and expenses not meeting this definition p are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the Town's policy to use restricted resources first,then unrestricted resources as they are needed. The focus of governmental fund financial statements is on major funds rather than reporting funds by type. Eachmajor ma'or fund is presented in a separate column.Non-major funds are aggregated and presented in a single column. D. Investments interest-earninginvestment contracts are stated at cost. Money market Nonparticipating investments andartici ating interest investment contracts with a remaining maturity of one year P P or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Page 40 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 NOTE 1 --SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) E. Investment Income Investment income is composed of interest 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 outstandin balances between funds are reported as"due to/from other funds." } g All trade receivables are shown net of an allowance for uncollectibles. Trade accounts receivable in excess of 180 days comprise the trade accounts receivable allowance for uncollectibles. G. Prepaid Items Certainpayments a ments 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 p p 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. 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. Majoroutlays forcapital assets and improvements are capitalized as projects are constructed. Y 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. Page 41 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 1 --SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) 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 Town's employee annual and sick leave policies generally provide for granting annual and The 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 employee employees. Once an 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.ment. 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 theg overnment-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. 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. Page 42 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concl'd) K. Fund Equity fund financial statements, governmental funds report reservations of fund balance for In the amounts that are not available for expenditures or are legally restricted by outside parties for use for a specific purpose. L. 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. M. Estimates The preparation of the financial statements in conformity with accounting principles generally p accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. N. Statement of Cash Flows ForP �u oses of the Statement of Cash Flows,the Town considers all highly liquid investments with a maturityof three months or less when purchased to be cash equivalents. Cash and cash equivalents at June 30, 2009 were cash in bank and investments held by the County and State Treasurers. NOTE 2—STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Excess Expenditures Over Budget—At June 30, 2009,the Town had expenditures in a fund that exceeded the budget,however,this does not constitute a violation of any legal provisions. Page 43 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 3—CASH AND INVESTMENTS authorize the Town to invest public monies in obligations of the U.S.Government and its A.R.S. ies obligations of the State and certain local government subdivisions, interest-bearing g g a enc savings accounts and certificatescollateralized repurchase agreements, certain of deposit, p obligations li ations of U.S. corporations, and certain other securities. The statutes do not include any requirements ments 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'sp ools are external investment pools, the Local Government Investment Pool (Pool and Local Government Investment Pool-Government(Pool 7),with no regulatory 5) Securities and oversight. The pools are not required to register(and are not registered)with the g for the County Exchange Commission. No regulatory oversight is provided Treasurer's g investmentpool. The fair value of eachparticipant's position in the State Treasurer and County Treasurer investment pools approximates the value of the participant's shares in the pool. Custodial �Credit Risk—Deposits. Custodial Credit risk is the risk that in the event of bank failure thedepositsmay Town's not be returned to the Town. The Town does not have a deposit policy for custodial credit risk. As of June 30,2009,the carrying value of the Town's deposits was$539,805 and the bank balance was$639,004. At June 30,2009,the Town's deposits were entirely covered by Federal depository insurance. At June 30, 2009, the Town's investments consisted of the following. Investment Type Maturities Fair Value � 7,837,785 MoneyMarket—U.S. Treasuries Less than one year $ County Treasurer's investment pool 227 days average 314,150 State Treasurer's investment pool 5 40 days average 45,475,038 State Treasurer's investment pool 7 11 days average 1,741,827 Total $55,368,800 Interest Rate Risk. The Town does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. The Town has no investment policy that would further limit its investment choices. As of June 30, 2009, the Town's investment in the State and County Treasurers' investment pools did not receive a credit quality rating from a national rating agency. All of the investments ' pool 7 were rated AAA in the State Treasurer's investment by Standard and Poor's. For investments in the State Treasurer's investment pool 5, 77% of the securities were rated AAA, A+, or Al by Standard and Poor's. Page 44 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 3—CASH AND INVESTMENTS (Concl'd) 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'sp ortion is not identified with specific investments and is not subject to custodial credit risk. NOTE 4--RECEIVABLES Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and presentedseparately se aratel 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. Townwide Highway Roadway User Development General Revenue Impact Fees Fund Fund Fund Due from Federal government $ 174,351 $ $ Due from State government 405,209 239,178 Due from other governments 585,327 Net due from governmental entities $ 579,560 $ 239,178 $ 585,327 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 elo (General Prepaid dever feesp Fund) $ $ 209,319 Special assessments (Oracle Road Debt Service Fund) 3,360,000 Total deferred revenue for governmental funds $ 3,360,000 $ 209,319 Page 45 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 5--CAPITAL ASSETS A summary of capital asset activity for the fiscal year ended June 30, 2009 follows. Beginning Ending Governmental Activities Balance Increase Decrease Balance Capital assets,not being depreciated: Land $ 18,038,076 $ 840,392 $ $ 18,878,468 Construction in progress 7,359,025 9,152,022 12,941,786 3,569,261 Total capital assets, not being depreciated 25,397,101 9,992,414 12,941,786 22,447,729 Capital assets,being depreciated: Infrastructure 126,949,031 12,479,790 139,428,821 Buildings and improvements 19,832,560 38,658 19,871,218 Machinery,equipment,and vehicles 8,036,706 1,321,308 403,200 8,954,814 Total capital assets being depreciated 154,818,297 13,839,756 403,200 168,254,853 Less accumulated depreciation for: Infrastructure (33,286,971) (5,032,112) (38,319,083) Buildings and improvements (3,632,864) (458,491) (4,091,355) Machinery,equipment,and vehicles (4,370,173) (985,189) (388,326) (4,967,036) Total accumulated depreciation (41,290,008) (6,475,792) (388,326) (47,377,474) Total capital assets,being depreciated,net 113,528,289 7,363,964 14,874 120,877,379 Governmental activities capital assets,net $ 138,925,390 $ 17,356,378 $ 12,956,660 $ 143,325,108 Beginning Ending Business-Type Activities Balance Increase Decrease Balance Capital assets,not being depreciated: Land $ 2,410,660 $ $ $ 2,410,660 Water rights 8,534,490 8,534,490 Construction in progress 6,423,996 3,060,079 8,870,576 613,499 Total 17,369,146 3,060,079 8,870,576 11,558,649 Capital assets,being depreciated: Water system 84,555,171 12,941,171 97,496,342 Stormwater system 1,028,602 1,028,602 Equipment and vehicles 2,766,095 498,173 3,264,268 Total capital assets being depreciated 88,349,868 13,439,344 101,789,212 Less accumulated depreciation for: Water system (17,625,425) (2,283,239) (19,908,664) Stormwater system (11,639) (20,572) (32,211) Equipment and vehicles (1,489,205) (234,009) (1,723,214) Total accumulated depreciation (19,126,269) (2,537,820) (21,664,089) Total capital assets,being depreciated,net 69,223,599 10,901,524 80,125,123 Business-type activities capital assets,net $ 86,592,745 $ 13,961,603 $ 8,870,576 $ 91,683,772 Page 46 TOWN OF ORO VALLEY, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 NOTE 5--CAPITAL ASSETS (Concl'd) Depreciation expense was charged to functions/programs as follows: Governmental activities: Generalovernment $ 263,247 g 867 Public Safety 649,867 Highways and streets 5,198,948 Culture and recreation 363,730 Total depreciation expense--governmental activities $6,475,792 p �. Business-type activities: Water $2,493,975 Stormwater 43,845 Total depreciation expense--business-type activities $2,537,820 Construction Commitments -- As of June 30, 2009, the Town was involved in several constructionJro'ects. The estimated cost to complete the construction projects is$12.0 million. p 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 June 30, 2009, is presented below. Outstanding Due Interest Rate Principal Within Governmental activities: (Including Fees) Maturity June 30, 2009 One Year ADOT HELP Loan 3.50% 8/15/11-12 $ 8,000,000 $ Total $ 8,000,000 $ Page 47 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 NOTE 6--LOANS PAYABLE (Concl'd) and interest payments on the governmental activities loans payable at June 30,2009 are Principal p y summarized as follows. Governmental Activities Year ending June 30: Principal Interest 2010 $ $ 280,000 2011 280,000 2012 6,000,000 280,000 2013 2,000,000 70,000 Total $ 8,000,000 $ 910,000 The Town received a loan 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 June 30, 2009 are presented below. Outstanding Due Interest Rate Principal Within Business-type activities: (Including Fees) Maturity June 30, 2009 One Year tYp o 92 855 WIFA Loan 2.04/0 7/1/09-24 $ 4,373,268 $ , CAWCD Loan 5.20% 12/1/09-11 1,414,854 447,922 Total $ 5,788,122 $ 540,777 and interest payments on the business-type activities loans payable at June 30,2009 are Principal pY summarized as follows. Business-type Activities Year ending June 30: Principal Interest 2010 $ 540,777 $ 160,384 2011 697,810 132,557 2012 730,327 103,359 2013 242,904 72,721 2014 251,493 67,688 2015-19 1,397,317 256,492 2020-24 1,662,463 101,124 2025-28 265,031 1,415 Total $ 5,788,122 $ 895,740 Page 48 TOWN OF ORO VALLEY, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 NOTE 7--BONDS PAYABLE Bonds payable at June 30, 2009, 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, 2009 One Year Governmental activities: Revenue Bonds, 1999 $ 2,730,462 4.50% 7/1/09 $ 105,000 $ 105,000 Revenue Bonds, 2000 2,5 80,000 4.90-5.20% 7/1/09-11 345,000 110,000 Revenue Bonds, 2001 3,362,532 4.30-4.63% 7/1/09-13 794,916 149,280 s 2003 5,494,920 Refunding Revenue Bonds, 3.00-5.00% 7/1/09-19 5,069,750 140,000 160,800 Revenue Bonds, 2005 4,164,050 3.25-4.75% 7/1/09-25 3,745,300 Refunding Revenue Bonds, 2007 1,389,180 4.00-5.00% 7/1/09-26 1,3 89,180 33,930 11,449,146 $ 699,010 Total Annual debt service requirements to maturity on revenue and refunding bonds for governmental activities at June 30, 2009, are summarized as follows. Governmental Activities Year ending June 30: Principal Interest 2010 $ 699,010 $ 462,840 2011 642,750 436,805 2012 878,430 407,287 2013 832,368 371,006 2014 875,038 329,273 2015-19 4,160,210 1,129,299 2020-24 2,354,740 427,807 2025-27 1,006,600 52,653 Total $ 11,449,146 $ 3,616,970 Original Outstanding Amount Interest Principal Due Within Purpose Issued Rates Maturity June 30, 2009 One Year Business-type activities: Revenue Bonds, 1999 $ 2,199,538 4.50-5.00% 7/1/09-19 $ 1,880,000 $ 180,000 Revenue Bonds, 2001 5,647,468 4.30-4.63% 7/1/09-13 1,335,084 250,720 Revenue Bonds, 2003 31,750,000 3.00-5.00% 7/1/09-28 27,802,500 1,315,000 Refunding Revenue Bonds, 2003 10,225,080 3.00-5.00% 7/1/09-19 8,292,750 260,000 Revenue Bonds, 2005 2,050,950 3.25-4.75% 7/1/09-25 1,844,700 79,200 Refunding Revenue Bonds, 2007 16,420,820 4.00-5.00% 7/1/09-26 16,420,820 401,070 Total $ 57,575,854 $2,485,990 Page 49 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 7--BONDS PAYABLE (Concl'd) Annual debt service requirements to maturity revenue and refunding bonds for business-type activities at June 30, 2009, are summarized as follows. Business-type Activities Year ending June 30: Principal Interest 2010 $ 2,485,990 $ 2,53 8,280 2011 2,947,250 2,441,361 2012 2,836,570 2,336,112 2013 2,912,632 2,215,034 2014 2,559,962 2,091,928 2015-19 15,049,790 8,597,415 2020-24 15,900,260 4,880,190 2025-29 12,883,400 1,323,966 Total $ 57,575,854 $26,424,286 Pledged revenues--governmental activities. The Town has pledged future sales(excise)tax revenues to repay outstanding revenue bonds and refunding revenue bonds of$11.4 million as of June 30, 2009. Proceeds from the original bond issuances, including those subsequently refunded,p rovided financing for land acquisition and facility construction. The bonds are paid solely from the Town's sales taxes and are payable through 2027. Total annual principal and interestpay ments for all sales tax revenue bonds are expected to require less than 5% of gross revenues. The total principal and interest to be paid on the bonds is$15.1 million. The current total sales tax revenues were$13.4 million and the total principal and interest paid on the bonds was $1.2 million, or 9%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 $57.6 million as of June 30, 2009. 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 bep aid on the bonds is $84.0 million. The current total customer gross revenues were $16.2 million and the total principal and interest paid on the bonds was $4.6 million or 28% of gross revenues. Page 50 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 8--SPECIAL ASSESSMENT BONDS Special assessment bonds at June 30,2009, 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, 2009 One Year Governmental activities: Special assessments debt $3,945,000 4.20-5.00% 1/1/09-21 $ 3,360,000 $ 215,000 Total $ 3,360 215000,000 $ , Annual debt service requirements to maturity on special assessment bonds at June 30,2009,are summarized as follows. Governmental Activities Year ending June 30: Principal Interest 2010 $ 215,000 $ 152,202 2011 225,000 141,202 2012 235,000 129,701 2013 250,000 117,578 2014 260,000 105,867 2015-19 1,480,000 341,162 2020-21 695,000 33,198 Total $ 3,360,000 $1,020,910 NOTE 9--OBLIGATIONS UNDER CAPITAL LEASES The business-type activities of the Town have acquired a street sweeper under the provisions of a g long-term lease agreement classified as a capital lease. The lease agreement qualifies as a capital lease for accountingpurposes and,therefore,has been recorded at the present value of its future minimum leasepaY ments as of the inception date. Revenues from the Stormwater Fund are used to pay the capital lease obligation. Page 51 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 NOTE 9--OBLIGATIONS UNDER CAPITAL LEASES (Concl'd) The assets capitalized and acquired through capital leases are as follows. Business-type Activities Asset: Machinery, equipment, and vehicles $ 201,386 Less: Accumulated depreciation 14,200 Total $ 187,186 The future minimum lease obligations and the net present value of these minimum lease payments as of June 30,2009 were as follows. Business-type Year Ending June 30: Activities 2010 $ 57,459 2011 57,459 Total minimum lease payments 114,918 Less: amount representing interest 7,872 Present value of minimum lease payments $ 107,046 Due within one year $ 52,252 Page 52 TOWN OF ORO VALLEY, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 10—CHANGES IN LONG-TERM LIABILITIES Long-term liability activity for the year ended June 30, 2009 was as follows. Beginning Ending Due Within g Balance Additions Reductions Balance One Year Governmental activities:payable y bonds 146 $ 699,010 a able $ 12,183,046 $ $ 73 3,900 $ 11,449, Special assessments payable 3,565,000 205,000 3,360,000 215,000 Loan payable 8,000,000 8,000,000 Compensated absences payable 1,356,336 1,557,513 1,386,977 1,526,872 1,182,680 Governmental activity long-term 1 g 2 096 690 • • • • $ 25,104,382 $ 1,557,513 $ 2,325,877 $ 24,336,0 $ , liabilities . .. ... Beginning Ending Due Within g g Balance Additions Reductions Balance One Year Business-type activities: Revenue bons payable 854 $ 2,485,990 da able $ 59,5 86,954 $ $ 2,011,100 $ 57575, Loan payable 5,731,766 693,520 637,164 5,788,122 540,777 • 164,505 57,459 107,046 52,252 Capital lease payable 105 678 absences payable 145,887 171,013 155,480 161,420 Compensatedp y Business-type activities long-term liabilities 3,184,697 $ 65,464,607 $ 1,029,038 $ 2,861,203 $ 63,632,442 $ NOTE 11 —INTERFUND RECEIVABLES,PAYABLES, AND TRANSFERS At June 30, 2009, several funds had negative cash balances. Interfund transfers: Transfers in Non-Major Governmental Transfers out Funds General Fund $ 1,721,266 Highway User Revenue Fund 229,632 Total $ 1,950,898 Transfers were made from the General Fund to subsidize the Public Transportation, Capital Asset Replacement,and Impact Fee Funds. Transfers were made from the General and Highway p p User Revenue Funds to the Municipal Debt Service Fund to make the required principal and interest payments on outstanding bonded indebtedness. Page 53 TOWN OF ORO VALLEY, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 12—CONTINGENT LIABILITIES Compliance --Amounts received or receivable from grantor agencies are subject to audit and adjustment bYgrantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if expany, enditures/expenses of 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 insurancep rotection is provided by the Arizona Municipal Risk Retention Pool,of which the Town is a participating member. The limit for basic coverage is for $2,000,000 per occurrence on a claims made basis. Excess coverage is for an additional $10,000,000 per occurrence on a follow form, claims made basis. The aggregate limit is also $10,000,000. No significant reduction in insurance coverage occurred during the year and no settlements exceeded insurance coverage during any of the past three fiscal years. The Arizona Municipal Risk Retention Pool is structured such that member premiums are based on an actuarial review that will provide adequate reserves to allow the Pool to meet its expected financial obligations. The Pool has the authority to assess its members additional premiums should reserves and annual premiums be insufficient to meet the Pool's obligations. The Town is insured by Arizona Municipal Workers Compensation Pool for potential worker related accidents. NOTE 14—RETIREMENT PLAN 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 premiumplan;lan;and a cost-staring,multiple-employer defined benefit long-term disability plan that covers Y emp to ees 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. Page 54 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 14.—RETIREMENT PLAN(Cont'd) The Public Safety Personnel Retirement System (PSPRS) administers agent multiple-employer defined benefitpension plan and an agent multiple-employer defined benefit health insurance plan that covers public safety personnel who are regularly assigned hazardous duty as premium 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 ff benefit pensionplanagent and an a ent multiple-employer defined benefit health insurance premium plan that coversemployees certain em to ees of the State of Arizona's Department of Corrections and Department of Juvenile Corrections, and county employees whose primary duties require direct The CORP is governed by The Fund Manager of PSPRS and the participating inmate contact. local boards according to the provisions of A.R.S. Title 38, Chapter 5, Article 6. Each plan issues a publicly ublicl available financial report that includes its financial statements and required supplementaryinformation. A report may be obtained by writing or calling the applicable plan. ASKS 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 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 year ended June 30, 2009, active ASRS members were by required statute to contribute at the actuarially determined rate of 9.45 percent q for retirement and 0.5 percent for long-term disability) of the members' annual (8.95 percent covered payroll roll and the Town was required by statute to contribute at the actuarially determined of 9.45 percent(7.99 ercent for retirement,0.96 percent for health insurance premium, and rate P 0.5P ercent for long-term disability) of the members' annual covered payroll. Page 55 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 14—RETIREMENT PLAN (Cont'd) 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: 2009 $ 996,346 $ 119,711 $ 62,350 2008 936,503 122,153 58,168 2007 6,782 94,383 44,944 Agentplan--For the year ended June 30,2009,active PSPRS and CORP members were required g 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 16,07 and 7.40 percent. The health insurance remium portion of the contribution rate was actuarially set at 0.69 percent of p covered payroll for PSPRS and 0.35 percent for CORP. Actuarial methods and assumptions -- The contribution requirements for the year ended June30, 2009 were established by the June 30, 2007 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 Actuarial valuation date June 30, 2007 June 30, 2007 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 unfunded actuarial liability, open for excess liability, open for excess Remaining amortization 29 years for unfunded 29 years for unfunded actuarial accrued actuarial accrued liability, 20 years for liability, 20 years for excess excess Asset valuation method Smoothed market value Smoothed market value Page 56 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 14—RETIREMENT PLAN (Cont'd) Annual Pension/OPEB Cost--The Town's pension/OPEB cost for the agent plans for the year ended June 30, 2009, and related information follows. PSPRS CORP Health Health Pension Insurance Pension Insurance Annualp ensionlOPEB cost $ 915,967 $ 41,093 $ 42,052 $ 2,088 Contributions made 915,967 41,093 42,052 2,088 Trend Information -- Information for each of the agent plans as of most recent actuarial valuations follows. PSPRS: Year Ended Annual Pension Percentage of APC Net Pension June 30, Cost (APC) Contributed Obligation Pension 2006 $ 434,478 100% -0- 2007 478,027 100 -0- 2008 549,587 100 -0- Health Insurance 2008 27,964 100 -0- CORP: Year Ended Annual Pension Percentage of APC Net Pension June 30, Cost(APC) Contributed Obligation Pension 2006 $40,089 100% -0- 2007 35,184 100 -0- 2008 34,440 100 -0- Health Insurance 2008 1,774 100 -0- Page 57 TOWN OF ORO VALLEY,ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30,2009 NOTE 14--RETIREMENT PLAN(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 futurey ears these benefits will be disaggregated and reported separately. PSPRS: 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-bjIc) 2006 $11,345,626 $12,654,350 $(1,308,724) 89.7% $4,614,186 28.4% 2Q07 11,996,669 16,700,207 (4,703,538) 71.8 5,306,785 88.6 2008 13,644,758 18,167,094 (4,522,336) 75.1 5,856,015 77.2 CORP: 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) 2006 $ 889,875 $1,140,381 $(250,506) 78.0% $515,269 48.6% 2007 960,316 1,278,537 (318,221) 75.1 639,247 49.8 2008 1,026,134 1,594,642 (568,508) 64.3 729,262 78.0 NOTE 15—SUBSEQUENT EVENT On October 23,2009,the Town closed on a loan from the Water Infrastructure Finance Authority WIFA in the amount of$3.4 million for a 20-year term. Proceeds from the loan will be used for the following projects: Sheraton D-Zone Booster Station Replacement, Well E-1 Replacement and Innovation park 16-inch Main Replacement. Page 58 SCHEDULES OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL (REQUIRED SUPPLEMENTARY INFORMATION) Page 59 TOWN OF ORO VALLEY,ARIZONA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-GENERAL FUND YEAR ENDED JUNE 30,2009 Budgeted Variance with Amounts Final Budget Positive Original&Final Actual (Negative) Revenues: Sales taxes $ 13,637,072 $ 12,462,740 $ (1,174,332) Franchise taxes 475,000 506,685 31,685 Intergovernmental 12,645,103 11,858,767 (786,336) Licenses, fees&permits 1,842,250 1,482,735 (359,515) Fines,forfeitures&penalties 250,000 341,438 91,438 Charges for services 1,059,961 1,011,182 (48,779) Contributions and donations 1,000 1,000 Investment earnings 600,000 226,270 (373,730) Other 125,000 193,665 68,665 Total revenues 30,634,386 28,084,482 (2,549,904) Expenditures: Current- General government 24,024,989 8,925,224 15,099,765 Public safety 15,278,716 14,200,797 1,077,919 Culture and recreation 3,502,263 3,3 82,023 120,240 Capital outlay 581,122 (581,122) Total expenditures 42,805,968 27,089,166 15,716,802 Excess(deficiency)of revenues over expenditures (12,171,582) 995,316 13,166,898 Other financing sources(uses): Transfers out (2,514,266) (1,721,266) 793,000 Total other financing sources(uses) (2,514,266) (1,721,266) 793,000 Change in fund balances (14,685,848) (725,950) 13,959,898 Fund balances,July ],2008 14,685,848 16,666,388 1,980,540 Fund balances,June 30,2009 $ $ 15,940,438 $ 15,940,438 See accompanying notes to this schedule. Page 60 TOWN OF ORO VALLEY,ARIZONA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-HURF YEAR ENDED JUNE 30,2009 Budgeted Variance with Amounts Final Budget Positive Original&Final Actual (Negative) Revenues: Sales taxes $ 2,231,463 $ 1,928,546 $ (302,917) Intergovernmental 3,160,116 2,970,496 (189,620) Licenses, fees&permits 25,195 25,195 Investment earnings 72,470 72,470 Other 217,000 11,603 (205,397) Total revenues 5,608,579 5,008,310 (600,269) Expenditures: Current- Highway and streets 6,438,933 3,286,053 3,152,880 Capital outlay 2,512,225 1,282,092 1,230,133 Total expenditures 8,951,158 4,568,145 4,3 83,013 Excess(deficiency)of revenues over expenditures (3,342,579) 440,165 3,782,744 Other financing sources(uses): Transfers out (717,475) (229,632) 487,843 Total other financing sources(uses) (717,475) (229,632) 487,843 Change in fund balances (4,060,054) 210,533 4,270,587 Fund balances,July 1,2008 4,060,054 4,016,773 (43,281) Fund balances,June 30,2009 $ $ 4,227,306 $ 4,227,306 See accompanying notes to this schedule. Page 61 TOWN OF ORO VALLEY, ARIZONA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2009 NOTE 1 --BUDGETARY BASIS OF ACCOUNTING The adopted budget of the Town is prepared on the modified accrual basis of accounting. Page 62 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Page 63 (This page intentionally left blank) Page 64 OTHER MAJOR GOVERNMENTAL FUNDS SCHEDULES OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES—BUDGET AND ACTUAL Page 65 TOWN OF ORO VALLEY,ARIZONA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-ORACLE ROAD DEBT SERVICE YEAR ENDED JUNE 30,2009 Budgeted Variance with Amounts Final Budget Positive Original&Final Actual (Negative) Revenues: Special assesments $ 372,828 $ 367,539 $ (5,289) Total revenues 372,828 367,539 (5,289) Expenditures: Debt service- Principal retirement 213,822 205,000 8,822 Interest and fiscal charges 259,119 248,429 10,690 Total expenditures 472,941 453,429 19,512 Change in fund balances (100,113) (85,890) 14,223 Fund balances,July I,2008 100,113 96,959 (3,154) Fund balances,June 30,2009 $ $ 11,069 $ 11,069 Page 66 TOWN OF ORO VALLEY,ARIZONA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-TOWNWIDE ROADWAY DEVELOPMENT IMPACT FEES YEAR ENDED JUNE 30,2009 Budgeted Variance with Amounts Final Budget Positive Original&Final Actual (Negative) Revenues: Impact fees $ 843,750 $ 316,954 $ (526,796) Intergovernmental 13,361,500 1,523,320 (11,83 8,180) Investment earnings (38,980) (38,980) Other 227,000 18,000 (209,000) Total revenues 14,432,250 1,819,294 (12,612,956) Expenditures: Capital outlay 21,824,739 7,855,983 13,968,756 Debt service- Interest and fiscal charges 798,038 287,260 510,778 Total expenditures 22,622,777_ _ 8)43,243 14,479,534 Change in fund balances (8,190,527) (6,323,949) 1,866,578 Fund balances,July I,2008 8,190,527 8,589,229 398,702 Fund balances,June 30,2009 $ $ 2,265,280 $ 2,265,280 Page 67 TOWN OF ORO VALLEY,ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL-MUNICIPAL BUILDING YEAR ENDED JUNE 30,2009 Budgeted Variance with Amounts Final Budget Positive Original&Final Actual (Negative) Revenues: Investment earnings $ 20,000 $ 9,511 $ (10,489) Total revenues 20,000 9,511 (10,489) Expenditu res: Current- General government 23,465,903 65,209 23,400,694 Capital outlay 8,627,927 23,976 8,603,951 Total expenditures 32,093,830 89,185 32,004,645 Excess(deficiency)of revenues over expenditures (32,073,830) (79,674 31,994,156 Other financing sources(uses): Bond proceeds 26,000,000 (26,000,000) Total other financing sources(uses) 26,000,000 _ (26,000,000) Change in fund balances (6,073,830) (79,674) 5,994,156 Fund balances,July 1,2008 6,073,830 5,898,233 (175,597) Fund balances,June 30,2009 $ $ 5,818,559 $ 5,818,559 Page 68 NON-MAJOR GOVERNMENTAL FUNDS Page 69 (This page intentionally left blank) Page 70 TOWN OF ORO VALLEY,ARIZONA COMBINING BALANCE SHEET-ALL NON-MAJOR GOVERNMENTAL FUNDS-BY FUND TYPE JUNE 30,2009 Total Non-Major Municipal Debt Governmental ecial Revenue Service Capital Projects Funds ASSETS Cash and cash equivalents $ 2,156,898 $ 149,807 $ 1,007,864 $ 3,314,569 Interest receivable3,024 3,024 Total assets $ 2,159,922 $ 149,807 $ 1,007,864 $ 3,317,593 LIABILITIES AND FUND BALANCES Liabilities: AccountsPay able $ 292,219 $ 2,060 $ 20,305 $ 314,584 Accrued wages and benefits 17,391 17,391 Customer deposits payable 190,536 190,536 Total liabilities _ __ 500,146 2,060 20,305 522,511 Fund balances: Unreserved: Undesignated 1,659,776 147,747 987,559 2,795,082 Total fund balances 1,659,776 147,747 987,559 2,795,082 Total liabilities and fund balances $ 2,159,922 $ 149,807 $ 1,007,864 $ 3,317,593 Page 71 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 30,2009 Municipal Debt Special Revenue Service Capital Projects Revenues: Sales taxes $ 985,122 $ $ Impact fees 124,066 Intergovernmental 1,167,918 95,712 Fines, forfeitures&penalties 72,282 Charges for services 55,194 Investment earnings (156,476) 1,200 Other 9,855 Total revenues 2,133,895 1,200 219,778 Expenditures: Current- General government 493,964 101,632 Public safety 88,626 Highway and streets 562,672 Culture and recreation 34,282 Capital outlay1,050,592 539,149 P Debt service- Principal retirement 733,900 Interest and fiscal charges 498,372 Total expenditures 2,230,136 1,232,272 640,781 Excess(deficiency)of revenues over expenditures (96,241) (1,231,072) (421,003) Other financing sources(uses): Transfers in 238,598 1,212,300 500,000 Total other financing sources(uses) 238,598 1,212,300 500,000 Change in fund balances 142,357 (18,772) 78,997 Fund balances,beginning of year 1,517,419 166,519 908,562 Fund balances,end of year $ 1,659,776 $ 147,747 $ 987,559 Page 72 • Total Non-Major Governmental Funds $ 985,122 124,066 1,263,630 72,282 55,194 (155,276) 9,855 2,354,873 595,596 88,626 562,672 34,282 1,5 89,741 733,900 498,372 4,103,189 (1,748,316) 1,950,898 1,950,898 202,582 2,592,500 $ 2,795,082 Page 73 (This page intentionally left blank) Page 74 NON-MAJOR SPECIAL REVENUE FUNDS The Special Revenue Funds account for the proceeds of specific revenue sources,other than major Jro capital projects, that are legally restricted to expenditures for specified purposes. p p 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 projects for parks and recreation, economic development and Naranja Town Site developments. 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 75 TOWN OF ORO VALLEY,ARIZONA COMBINING BALANCE SHEET-NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30,2009 Revegetation State Seizures Federal Seizures Assurances and Forfeitures and Forfeitures Bed Tax ASSETS Cash and cash equivalents $ 255,775 $ 166,734 $ 96,594 $ 1,443,095 Interest receivable 441 2,373 Total assets $ 256,216 $ 166,734 $ 96,594 $ 1,445,468 LIABILITIES AND FUND BALANCES Liabilities: AccountsP Y a able $ $ 43,504 $ 17,325 $ 170,000 1,982 Accrued wages and benefits Customer deposits payable 190,536 Total liabilities _ 190,536 43,504 17,325 171,982 Fund balances: Unreserved: Undesignated 65,680 123,230 79,269 1,273,486 Total fund balances 65,680 123,230 79,269 1,273,486 Total liabilities and fund balances $ 256,216 $ 166,734 $ 96,594 $ 1,445,468 Page 76 Public Transportation Impound Fee Totals $ 154,700 $ 40,000 $ 2,156,898 210 3,024 $ 154,910 $ 40,000 $ 2,159,922 • $ 61,390 $ $ 292,219 15,409 17,391 190,536 76,799 500,146 78,111 40,000 1,659,776 78,111 40,000 1,659,776 $ 154,910 $ 40,000 $ 2,159,922 Page 77 TOWN OF ORO VALLEY,ARIZONA COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30,2009 Revegetation State Seizures Federal Seizures Assurances and Forfeitures and Forfeitures Revenues: Sales taxes $ $ $ Intergovernmental Fines,forfeitures&P enalties 31,252 41,030 Charges for services Investment earnings (167,961) 3,013 4,262 Other Total al revenues (167,961) 34,265 45,292 Expenditures: Current- General government Public safety55,290 33,336 Highway and streets Culture and recreation Capital outlay y 6,682 136,212 Total expenditures 61,972 169,548 • ] ,961 Excess(deficiency)of revenues over expenditures ( 67 ) (27,707) (124,256) Other financing sources(uses): Transfers in Total other financing sources(uses) Change in fund balances (167,961) (27,707) (124,256) Fund balances,beginning year be innin of 233,641 150,937 203,525 balances,end of year $ 65,680 $ 123,230 $ 79,269 Fund Page 78 Public Bed Tax Transportation Impound Fee _ Totals $ 985,122 $ $ $ 985,122 1,167,918 1,167,918 72,282 55,194 55,194 2,492 1,718 (156,476) 9,855 9,855 987,614 1,234,685 2,133,895 493,964 493,964 88,626 562,672 562,672 34,282 34,282 907,698 _ 1,050,592 528,246 1,470,370 2,230,136 459,368 (235,685) (96,241) 198,598 40,000 238,598 198,598 40,000 238,598 459,368 (37,087) 40,000 142,357 814,118 115,198 1,517,419 $ 1,273,486 $ 78,111 $ 40,000 $ 1,659,776 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 30,2009 Revegetation Assurances Variance- Positive Budget* Actual (Negative) Revenues: Sales taxes $ $ $ Intergovernmental Fines,forfeitures&penalties Charges for services Investment earnings (167,961) (167,961) Other Total revenues (167,961) (167,961) Expenditures: Current- General government Public safety Highway and streets Culture and recreation Capital outlay Total expenditures Excess(deficiency)of revenues over (167,961) (167,961) expenditures - Other financing sources(uses): Transfers in Total other financing sources(uses) Change in fund balances (167,961) (167,961) Fund balances,July 1,2008 233,641 233,641 Fund balances,June 30,2009 $ $ • 65,680 $ 65,680 *The Revegetation Assurances Fund was included in the Town's budget,however,the budget was-0-. Page 80 State Seizures and Forfeitures Federal Seizures and Forfeitures Variance- Variance- Positive Positive Budget Actual (Negative) Budget Actual (Negative) $ $ $ $ $ $ 4,000 31,252 27,252 7,000 41,030 34,030 3,013 3,013 4,262 4,262 4,000 34,265 30,265 7,000 45,292 38,292 155,676 55,290 100,386 54,016 33,336 20,680 18,814 6,682 12,132 220,712 136,212 84,500 174,490 61,972 112,518 274,728 169,548 105,180 (170,490) (27,707) 142,783 (267,728) (124,256) 143,472 (170,490) (27,707) 142,783 (267,728) (124,256) 143,472 170,490 150,937 (19,553) 267,728 203,525 (64,203) $ $ 123,230 $ 123,230 $ $ 79,269 $ 79,269 (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 30,2009 (Continued) Bed Tax Variance- Positive Budget Actual (Negative) Revenues: Sales taxes $ 1,639,071 $ 985,122 $ (653,949) Intergovernmental Fines, forfeitures&penalties Charges for services Investment earnings 2,492 2,492 Other , 20000 (20,000) _ Total revenues 1,659,071 987,614 (671,457) Expenditures: Current- Generalgovernment 1,980,042 493,964 1,486,078 Public safety Highway and streets Culture and recreation 137,419 34,282 103,137 Capital outlay Total expenditures 2,117,461 528,246 1,589,215 Excess(deficiency)of revenues over expenditures (458,390) 459,368 917,758 Other financing sources(uses): Transfers in ------ Total other financing sources(uses) Change in fund balances (458,390) 459,368 917,758 Fund balances,July I,2008 458,390 814,118 355,728 Fund balances,June 30,2009 $ $ 1,273,486 $ 1,273,486 *The Impound Fee Fund was included in the Town's budget,however,the budget was-0-. Page 82 Public Transportation ____ _ ____ Impound Fee Variance- Variance- Positive Positive Budget Actual (Negative) Budget* Actual (Negative) $ $ $ $ $ $ 295,903 1,167,918 872,015 55,194 55,194 1,718 1,718 832,248 9,855 (822,393) 1,128,151 1,234,685 106,534 552,696 562,672 (9,976) 891,606 907,698 0l 6,092) 1,444,302 1,470,370 (26,068 -- (316,151) (23 5,685) 80,466 198,598 198,598 _ _ _ 40,000 40,000 198,598 198,598 40,000 40,000 _�_-____.._ ___-- (117,553) (37,087) 80,466 40,000 40,000 117,553 115,198 (2,355) $ $ 78 111 $ 78,111 $ $ 40,000 $ 40,000 (Continued) Page 83 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 30,2009 (Concluded) Totals Variance- Positive Budget Actual (Negative) Revenues: Sales taxes $ 1,639,071 $ 985,122 $ (653,949) Intergovernmental 295,903 1,167,918 872,015 Fines,forfeitures&p enalties 11,000 72,282 61,282 Charges for services 55,194 55,194 Investment earnings (156,476) (156,476) Other 852,248 9,855 (842,393) Total revenues 2,798,222 2,133,895 (664,327) Expenditures: Current- Generalg overnment 1,980,042 493,964 1,486,078 Public safety 209,692 88,626 121,066 and streets 552,696 562,672 (9,976) Highway 137 419 34,282 103,137 Culture and recreation Capital outlay 't l 1,131,132 1,050,592 80,540 Total expenditures 4,010,981 2,230,136 1,780,845 Excess(deficiency)of revenues over 1,116,518 expenditures (1,212,759) (96,241) Other financing sources(uses): 238 598 40,000 Transfers in 198,598 Total other financingsources(uses) 198,598 238,598 40,000 Change in fund balances (1,014,161) 142,357 1,156,518. Fund y balances,Jul 1 2008 1,014,161 1,517,419 503,258 Fund balances,June 30,2009 $ $ 1,659,776 $ 1,659,776 Page 84 • NON-MAJOR DEBT SERVICE FUND Debt Service Funds are created to account for the accumulation of resources for,and the payment of, general long-term debt principal and interest. Municipal DebtService — accounts for the payments of debt service on the Municipal Property Corporation Revenue Bonds of 1999, 2000, 2001, 2003 Refunding, 2005, and 2007 Refunding. Page 85 (This page intentionally left blank) Page 86 TOWN OF ORO VALLEY,ARIZONA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-NON-MAJOR DEBT SERVICE FUND YEAR ENDED JUNE 30,2009 Municipal Debt Service Variance- Positive Budget Actual (Negative) Revenues: Investment earnings $ 5,000 $ 1,200 $ (3,800) Total revenues 5,000 1,200 (3,800) Expenditures: Debt service- Principal retirement 1,635,266 733,900 901,366 Interest and fiscal charges 1,110,466 498,372 612,094 Total expenditures 2,745,732 1,232,272 1,513,460 Excess(deficiency)of revenues over expenditures (2,740,732) (1,231,072) 1,509,660 Other financing sources(uses): Transfers in 2,573,143 1,212,300 (1,360,843) Total other financing sources(uses) 2,573,143 1,212,300 (1,360,843) Change in fund balances (167,589) (18,772) 148,817 Fund balances,July 1,2008 167,589 166,519 (1,070) Fund balances,June 30,2009 $ $ 147,747 $ 147,747 Page 87 (This page intentionally left blank) Page 88 NON-MAJOR CAPITAL PROJECTS FUNDS Projects Funds are created to account for the purchase or construction of major capital 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. Generaln -- Impact Fees accounts for the collection of development impact fees charged for new and nonresidential growth to be used for future general government facilities,vehicles, residential equipment,and other necessarygeneral government infrastructure needed as a result of new growth. Pima County Bond Projects—accounts for the revenues and expenditures for historic preservation capital improvements funded by grants and from Pima County bond funds. p p Page 89 (This page intentionally left blank) Page 90 TOWN OF ORO VALLEY,ARIZONA COMBINING BALANCE SHEET-NON-MAJOR CAPITAL PROJECTS FUNDS JUNE 30,2009 Capital Asset General Impact Pima County Replacement Fees Bond Projects Totals ASSETS Cash and cash equivalents $ 499,639 $ 124,066 $ 384,159 $ 1,007,864 Total assets $ 499,639 $ 124,066 $ 384,159 $ 1,007,864 LIABILITIES AND FUND BALANCES Liabilities: AccountsPaY able $ $ $ 20,305 $ 20,305 Total liabilities 20,305 20,305 Fund balances: Unreserved: Undesignated 499,639 124,066 363,854 987,559 Total fund balances 499,639 124,066 363,854 987,559 Total liabilities and fund balances $ 499,639 $ 124,066 $ 384,159 $ 1,007,864 Page 91 TOWN OF ORO VALLEY,ARIZONA COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES- NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30,2009 Capital Asset General Impact Pima County Replacement Fees Bond Projects Revenues: Impact fees $ $ 124,066 $ Intergovernmental 95,712 — Total revenues _ _ 124,066 95,712 Expenditures: Current- Generalovernment 101,632 g Capital outlay _ 500,361 38,788 Total expenditures 500,361 140,420 • Excess(deficiency)of revenues over expenditures 500,361 124,066 (44,708) 1� Other financing sources(uses): Transfers in 500,000 _ Total other financing sources(uses) 500,000 Change in fund balances (361) 124,066 (44,708) Fund balances,beginning of year 500,000 408,562 Fund balances,end of year $ 499,639 $ 124,066 $ 363,854 Page 92 Totals $ 124,066 95,712 219,778 101,632 539,149 640,781 (421,003) 500,000 500,000 78,997 908,562 $ 987,559 Page 93 TOWN OF ORO VALLEY,ARIZONA COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL-NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30,2009 Capital Asset Replacement Variance- Positive Budget Actual (Negative) Revenues: Impact fees $ $ $ Intergovernmental Total revenues Expenditures: Current- General government Capital outlay 1,000,000 500,361 499,639 Total expenditures 1,000,000 500,361 499,639 Excess(deficiency)of revenues over expenditures (1,000,000) (500,361) 499,639 Other financing sources(uses): Bond proceeds Transfers in 500,000 500,000 Total other financing sources(uses) 500,000 500,000 Change in fund balances (500,000) (361) 499,639 Fund balances,July 1,2008 500,000 500,000 Fund balances,June 30,2009 $ $ 499,639 $ 499,639 *The General Impact Fees Fund was included in the Town's budget,however,the budget was-0-. Page 94 General Impact Fees Pima County Bond Projects Variance- Variance- Positive Positive Budget* _ Actual (Negative) Budget Actual (Negative) $ $ 124,066 $ 124,066 $ $ $ _ 1,23 6,186 95,712 (1,140,474) 124,066 124,066 1,23 6,186 95,712 (1,140,474) 36,457,218 101,632 36,355,586 13,913,950 38,788 13,875,162 50,371,168 140,420 50,230,748 124,066 124,066 (49,134,982) (44,708) 49,090,274 48,600,000 (48,600,000) 48,600,000 (48,600,000) 124,066 124,066 (534,982) (44,708) 490,274 534,982 408,562 (126,420) $ $ 124,066 $ 124,066 $ $ 363,854 $ 363,854 (Continued) Page 95 TOWN OF ORO VALLEY,ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL-NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED TUNE 30,2009 (Concluded) Totals Variance- Positive Budget Actual (Neative) Revenues: Impact fees $ $ 124,066 $ 124,066 Intergovernmental ___1,236,186 95,712 (1,140,474) Total revenues 1,236,186 219,778 (1,016,408) Expenditures: Current- Generalgovernment 36,457,218 101,632 36,355,586 Capital outlay14,913,950 539,149 14,374,801 P Total expenditures 51,371,168 640,781 50,730,387 Excess(deficiency)of revenues over expenditures enditures _ (50,134,982) (421,003) 49,713,979 Other financing sources(uses): Bond proceeds 48,600,000 (48,600,000) Transfers in 500,000 500,000 Total other financing sources(uses) 49,100,000 500,000 (48,600,000) Change in fund balances (1,034,982) 78,997 1,113,979 Fund y balances,Jul 1,2008 1,034,982 908,562 (126,420) Fund balances,June 30,2009 $ $ 987,559 $ 987,559 Page 96 STATISTICAL SECTION The statisticalpresents section 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 ' understandingof the information presented in the financial statements,notes to the financial reader's statements, and other supplementary information presented in this report. The statistical section is pp rY 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 schedulespresent information to help the reader evaluate the Town's current levels of These 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 schedulesp resent 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 school districts. 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 97 (This page intentionally left blank) Page 98 N •r N. O 3- CO N. N OC) coU) Co N ' C7) N` N`CO U) CD In I U) CO N CO CD co N` Cn U) ) r oCo () CO r C3) O N CO N 0) O U7 (r) `-- `c-- N CO CD N- U) LC) N- O O r* CD (N �� ~ C) O N N N U) N N N r �-- d' r r co co co r N,• r CJ) r-- .44- ,d. co ,-- CO N d' N CD CO U) O CO N CD N CD 1 C) CD CO.N`U) N CO N`- N Cr) d' NNS- U) N U) N � N O r O CO C7) N CO 0) 4,:t O CO CO, N U7 d7 CD U) ,-•• d' U) O -7' r r r �-- N LC) N N "?• CO •`- U) 0 r r 3-- N (A (A (f3 ER CA to 3- UD N Nom. CO C) CO CC Ni- CD C)) CO U ) N CO N 0 CD O ' P.-N ` CO N- CO 't •d• CD r- N 'Cr- N (D CO CD CO- CD N` t N N` d" CO U) CO N-• CO 00 0 CO 0U)CD CO U) U) N N NO N COCSO CD N` O N CO0) r CO"N CO N 'It r'-• Ea U) Ea U) Eft U) CD CO r- CO s- r- CD c0 N CD N` CO CO Cn CaO (C) CT O CO N N` Cn r- C3) Cd d" CO O 0) r-- O In CO N CO CD N CL) CO CD-CO U) CO r CO O 4O r- CD >-* (Dr 3- CO 0) d' CO U) CO U) U) N N O CD O CO„ N Cr) 0) U) CD N O 0) U N N- CO In r N N N CO 'd tr-- CO CO- CO CO O r CO r r r i-- LT. 11. ER EH Eta (ra ER (fl Q O z ).— z co CD N.• O N CD CD N u) O N N O Z C) P.: N CD O CD 0 c0 U) CO N ,t CO N 6 N W NY Z (NI co N` U) co O) O O CO CD N N C m=od= Eo cooa> (D N�r=co- COi a) < 0 >., O o tCCID OOCCOO N nnC'cr Cr) OCDCOo U) a) Ui J U CS N N to ' N N N N CD 3- CO � CC u J O Q O) r r N (n r Q >- EL- pp E) EA Ea C c cts 0mwcn ..... c, I- > < N C O N N N CO .- Nom- O r CO d Ot1Jwco ? corn -, (N Ncoco o) N-- N0) N ) (n N CD N. CD L1 U) J CD CO CO CO CO-N Nom- CD N O (D C) O Q H < d' ix) d' N C3) 'd• O co co 11) LO CD co d' co dM• Z H (� 0 Cn O N _ _ .. .. C uJ __.l U N O O) co-M N r ~ LC) a) O Z U ....... C H < E) E} U) E) U) Cfl > 0 CD a� � oLO � CL)N CO N CDC 0) CC O CI) N. N r N�c) d� Cr- CO N Na CO co-CO O tri.U) N CO CO C)s- CO- CO co o N N d' I` CD CO CO N- 0) o a 0r CO co co r• CO N U) 0) CO O 0) O 0 r N CO N: C.O.CO O I� d' U7 d N N r-- CO ,- 3-- N N CI) Efl Ea U) ER U) ER ,E4-:- CO )U) -CCI C _ H O .0 cu t .� 0 'O -a a) (u N 15 (Ks Cp m O O CA O C N C ca a C U a. 7, E a. p p N 4) N ccs E 0 co C M 0 D O c C E a- c_ , a, > ,C ..O Ll' O N C • a j U . '-p N U C O -D 4e,-5 .2 (4 H O E U . > Cn N U 2-+; •cn O w . E N O 4-, Cn p Cn -.-, •C cn D N a Cn E U 2 rn a) 'n co a) Cn a� a) > > a) c o _ Nz o •E c o 0 o Ni p c NY UJ Z 0 H co H D H 01 O N r- -,- to CO Ln 0) O Ln COO d0'COU d' � N COO 00) d' N 'V' CD 1` O OO U) N 1` CO 0)O O CD o0 ,c- .- N •'- O 00 CO LO•,' O O ' N O) O In d' 0)coO 0) N•- d' 00 co- N s- CD CD O •- 0 LO 00 C,O 1- 0) c0 N 0) d' 0) d' CD 0 CO O co O 0) O) Cr) O CO v0 p N-- M N- M O N1 CD !t) CO 0 Q) O V co O) .- `�d 0) .-- 0 O) In 0) M 0) M M M Co U) .- O CD co O M N ,c- Co .^ .-- (1) CO(30 Ef} V) CD O N (.0 d' LI) Lo co 00 co In o0 M O) O O N M u) O CO 00 O N 00 O 0 CO M N N N 0)) 0) 0 M) O O N N (D COd' 00 t O O 00 M O CO ' O CO O (~N OON .-, O 4.t` CO 00 CD CO 000 0) CO c� C~D ~ IDN N- r-- .- CD CD O U) CD N 0) O O M N CD 0) 0) N CD N O 00 M CO 1,- N- O - _ CO In O O M O O N O d' h---(0- M d' ,- N N ' 3 ((13 ./'C63 00 O CO r-- N d' 1` CO ' CO dN' V) M 0) CO c00 N COD 0) N` CCOO N 0 • M O N CDN (0 M 00 0) N •- O 00 .- 00 CO in co •-' ' •-' CD N CO d •- N CD M d' N N M •- O � O U) CN` M0) 0 d^~ U) U) d- NON0) (0 0OCD co .- CO CO O 0 .- .- C`O M d' CO CO Co C'�) CD Co N ti N M C9 .-- r- CO COEa" ta CO N N CD •- M d' 0) V) d 00 00 N d' O d' •- •- •- CO N CO d' CD "Sr •- 0) 0 0 0) 0 M d' N d" N CSD � � � � CO CO CO CD N` CO ,r ' tit) N 0 (� l.nOMCO - COCOO 00 .-- O O co-co-co-d' O N CD U) N d' 0 O ,c- CO O 0) Ln co N N CO (-0 �- CO CD O CO O 0 CDCO CO •- N 0 O CO d;_ _ 00 .- .- N` O 00 00 dr,- ID dr O .-- LID 0) h- N (� .- Ili CO- N� 6 O CSO M N 0 .- N LL. CO CO (f)Q Z M o o Cr Z Cn .- 00 N 0) .- 0) 0) N N •- d' .- 0 N- 000 oo N O LU < Z 000 d N CO CO dw O N O (00 (•" do f _ CO _ -4--CO CD d ,-- < - N. d d O N to .- M O M Q C LU O Cn 00)) O 00 CO U) oo d N` T 0) co 0) •- M C`0 O 0) 0) M N 00 N `� CO U 0 0) CO N. CD CD CO CO N O) N0) N 0) W Q Q U N ix O d' N d' O) O) O co- CO N .- .- co J H U Q LU r- N J 1-11 (n V- ~ COz Li_ 0 D C3 CO Ct3 O -- z -- Q cLcnw ( Z O Ill W LO 0) O) N M 1-- 0 Oo r 0) 0) d M d co Cr) (0 CO d' N .,- r N` N- O 0) 00 LS) CO N N d' N- M 1,- O ' ' 0) co N LL. z (n J CO N .- .- .-- 0) 0) LO U) O O LO CD CD 00 LO O Q F- Q .- O O CD CO CO- N� L6 M C- N O Lti f` d �! d O f` N`w M 00 = (1").< d' N. N O C0 U) CD 1n d' O CD 0 .- N- Co ' 0) co 1` 0) z0 O 0) co In d' co.. 0) O M _ - N Co U U Ln O N N N CO Cr) 0 Co Co N .- .- M O 0 EA Ea Ea Ea Ln CO M u) u) d' N` CO Cr O in O CD O CO) 0) O LI) CO) N N O cO p 00 O) 0) 00 N N- O L)) ' 0 d' M •- d' N- p .- dt O CO to d' O CD •- 1-. N O O O r- co-d' O N CO M N d' CD O N T- N d' CO 0) O M 00 co O (0 O co co N O M CO 0) .- O co N CO 0) O 0 O 0 CO CO O .-- 0 `- `- Nr- N 0 N LO-0) N N O 0) 0) 0)- N Co .-- CO 0 N N N Ea Ea Ea Ea 07 a) O O C N > O> N o �., a) Uv o o U) E c co c E a2 cn C u7 p O 2 E a) a) N C O = c p CR L- a a C P 0 0 O ` 2 X X o 5 :— •-- a :o :. am CD O a .c--, 4 = v7 0 j U) X N .4 C ;O C v) L1 • C .D > > O E V CO .> ''D o '.� N C (D .- L.,_� N Co C) C U) . 0 ` -0 03 -0 (0 :.T t 03 -0 U) C O 2 0 > C () - a) > -C3 > 2 V N N ..? , �- 4) N a N 0) C U O •� 2 C1 j 2 U C O to C U' C C) ro/) N CO .' O 0 L -p a) C C p ..' 0 C CLS CLf A N ...., O as ti C C7) a) > c o o ` N rn 5 To cn i� m 0) c E a) o °) co �c c c a Z' E a N E c rn c tti C0) >, U6 0 ,� ca c co a) CE a3 co, CU UU RS 0 is 'in E a a) E m ( `� a� N > ('' '- P _ E E vi C7 = o v °) E2 _'_' .` 0 a� a.n Cl oEc "_ � .� 00) (/) a.) • � Eo as Cr) cc cies a) a. Uu a� rn c ca is m > a) O U m C U O U - co X O = U o :) "Z5 -0 � � Ll- o o `° W 0 H CO H H H CL c d' O ,:t ('7 M N` 00 CMD C) CO to O N O O O CO CO CO LO CO 0 CO N co CO N` 0) CO , O O CO (0 O N�CD N- it CO O s-- N00 1 CO ' ' CP M CO N � CO N 0) N- O st co0coOtri M O co� U7 M CO U7 d' CO r" C.R. v-' s- N-- N N- CO 0) ON NCO(-4 O () ' N N CSJ tet• (1) (f) EA Ea U Ef3 O N- CO CO N r CO CO UO 'V' 0 0) 't 0 CO CO O v- O U) 00 (D O U) ct CD r- N- U) 0 0) 0 0 0 O) ,t CO CO (D CO 0) O (D N` N-O 00 ' CD ' 0 CD dt 0 U) N- O '�N a0 co-o- ,---4.- CO O c) N-- -t O O CD (O O to co CO N O'- (D 3c- N--- 'd' N M 0) 0 0) 000 0 CO U) 0 CO ' O N Co 'd- U) 0) U) CD N` to CD CD 1.0 NU) N- NN N U) M '-- t-- N-- co (- N- N` N Eft Efl Eft Eta Ea (a CO CO O O N- U7 tet' 0) s- CO 'T N` CO '$ QO CO N U) N CO M CO N 3-- 0 CO Nt ' 3-- 0) CO i-- N N-- N CO CO N tet' 00 (.O T- N CO CO '- ' (D ' CO N` CO CO 0 CO to 'a' O O N N- M CO CO CO V' CD •i-- CO U) (MD 0) O CO CL) ((0 O N` CO CD CD N� N� CO N� d• N N` CO N- CD O O CO N r O 0 �- CO CO V 0 `�t' N` N` _ N U7 Lo 6 (C) 3-- tet' CO .- .- 0) V"' s- O '�' CD N Ef} EA Eft (a to Eft 0 0) r- 0) CO N` '- N- 0N- U) CD r- 0 N CO CCD N O 4' 0) '4' O U) ' r I N- CO N 0) CO COCCD 0 Z-0. O 1"•-• CO _ _ _ _ - O co-C7 CO C0 CO O coO) VM. cod- 0) N co 00U) � N p i N 00 .- co- O U) 0) N _ -c} O s- s- O O CO o N 'xi�• O N N- M M '- N ,-- 's Co U� M �-- N r.. to (f? (f! co(ft (f} NI- O U7 .- N O to CO CO Nir N N 'd• CD 00 O M coMC N` O M 0) CO ,- r" N` 0) O CO ' 0) N CO 0) N C4D N�0) CO E N`CO O N`V-co CD co O co N _ _ _ CD N N` U)CO CC) M N~ �-- U) ,-- .- M co- U) O U) to ' CO CO M O d• Cr) U) 0) CO O 0)Nom- 0) O COCO coO CO *-' O <- O CO U) V U7 O O CO to N N N N 0) r- N N .-- U) N N N O N C'0 'U C (f? ta (ft (a Ea ( COC U= _ CU .�- co N U7 N- CO CD 'd' `d' Co O N CO 0 C O 0 'r N-- N T3 s- O a) U) 0) d' (D r- CD r 0 CO r- O r- CO O N Ns x- T- 0) CO CO„CO CO CO ' U) ' O CO ',- O O N- N 0) '� C- L N�7 Lri- N N- CO Nr CO Cr- CO CSO '- CO CO d' LLC) CO co-CO 0 O j- N` O O C) �- CO CD M N CO N CO O V,'� to E N CO— M Nom- �-- N NS-' CD O CO N 0 N-- a) > O (f} (fl- te- ER Eft CA 0) 2 N co co U) 0) 0) t-- U) N to O U) co N` N- 0) co co 'd. 0_ r- CD U) 000N- ON- 0 N` N 1.4) N- Nom• Nom- CO 00 N Q) N- N �t M 'd' CO O N-CO ' N- LI) ' 0) 0) 0) 0) N• N to Q CD r U) r N N` 4 O CO O O N.- N LI)CO 00 �O M 0) O 000 N. tt Co co N O '�' co 1" i I(07 N M O �- O 0) 'O O CO CO CO N- CO CO N CO j ( (0cri. N N CO CO I.f) M N '- CO v) EA to 4 Ef3 Ea E (a ii C di v) acvin� 0it x 8O 46 x 6 a) c a x 2 aa) v) . i_ 1-5 c1 m C -0 V a>) @ c o 'U v) ••U a N cn E > .0C a>i .? .? .>-- cn o c J TO •v c a > Q V U O m@ o 2 m x in m CO a 0) +, c� M co co rn ro v) '0 Ti 0 a, Q) ..-. U) its N O C 9E' Q Z'Z6 CD C a C ,p_ U U U . (U C N N C ` t0 HN r N- (n E E Vi U t/) N cA v? 0 Cn (n v) O 'L Cv v) 'C N r- E rn '►- O LL (� tv Cll CN) U a) C C C CN) o. W N .0 a a) a) N , c c c a > aro (—�� .0 > m m ccC > 'C`r) co E 6 a > n ° c > H _ D D U) v) 1-- D o o r o n o 0 0 co ZCUNbFo- Ca 0 H 03 NH 00mH U) Z a- coo N CO CD. CO CO 00 CD ,--0) OM,CON 0 CO N.VD•-• 0 MM C00,-,- (N LOU) COO) 0) 6, 0 6, Ea CO 00 (N.4W,1" c0C0 0)N N.CD ' CO CO dd 4dcrcri C) (0(0 CO CD CO 01 C) CD CO Li)CO N dd (OL() ,-- N Ea Ea UN (a WW 00 0) - 0(N M,...- ON 1 ,, ' ONNO , Rr.... ,--cior-- o N-N- CD N Nh Lr) 0WWNW N COO ,..-,47 0) 6, d, b, 6, r--,4-,-.- -4- CO CD cr)CO CD N CD N N.CO lf)CO N N V' CD Lo w o o co NON)- d COdd 0 Loco CO CO CO CO CO C. (N or \I ,r-4. Eff 6, U) UN N 0 C\J CD cf)N N. N. N --CO'7 0 CD 0)CO N CD 44 (0 (0 (, N)0) N) o,o. 0 o N...h-- COON N ‘.-..--- (NC) Lci ,,- (1) ....--. N w ,fi. Ea Ea fa a >-. Z Z - D H <LL Z V2 (N N.0) N N N- CD CO 0 ,---CO,.... N.CO 0 CD Z.--. IL ,-- CO cr) 0) V.N-CO CO NHOU 7ZW0 0 CO CO N CO N)(C N M.M.- (NO c5 <21.,_ ,-- .-- >:Z >-0•;-..,.. UN UN (, V, ..- ---J> 0 C/5•=t _<Ow < co .--- LO N. 0) Nt CO.4-LI) ...,OLICO D a)s4-cr) N 0 N,-N OIL -)< ONC9, 0 C N v...til CD Z< 0 CO - CO do5daT o Wow co H D Do co Nr CO r•-•,-- 0 w (x-.....- 0 Cr)0 V' .—rt,---, LL W I--0 0505 c.,-CO N 0000 ZZ .‹ o 6,) 6, CO UN 0 < W HO ll _ LT)CD-4- s:to co, 0 0 WOM Z0 N CD,-- cr)u),4-co a N MCO-N.- ,--.N.-CO-N. N) (00) 0)00)0)1.1. ......, 0 O MO CO N,--h--,--. N dd (NO) CO ..--,-- .-- .--- €0 fa (f). UN M 0 M OD n-N.-- 4-C\I CO ON-CO N CD CO 1 LID V'CO N. ccirs,:d ddcrid 3 0.r--CV 'ct CO N 0 0 MWN MOMW N 0-,-- (NO ,-- 1--.,-- 1-- N VI (0 Cf3 (0 COO CO d- N.CO 0 N.N CO CO N CO CO 4" C) ood MRod o cow(0 comoo o -.4- ,-... WN(NN) N od c. co c,i ,... ,--,--, t 60 ta 60 U, E v co ca. a) 0 8 . c , KI c .E IL ! SS ,t T., a) () (I) g E > -0 (,) Ot 0 E 2 i. pn O. " — , c a) L' 0 a) w(-) •a..15. N 21,i1 & t) 1) 9E'— w 6 — w (&)WDW WD (D15 8 m a. CD 7E5- ;T H U) (This page intentionally left blank) Page 103 M CO 0 0 CD 0 CD 0 U)CO 0) ON)))))) '4- O N CO O.-N M N O CO N O N 0 N N N O r- 0 CD U) V' O N 1,'�CO O(n O C)•-' 0 O it N�M ' co O 0 ' CO M C"7(D N N CD r N r-CD CD �(r)M 4 co CA CO 0 N co 4 (0 N 000 0 CO CD V'Co 0 co'0.-CO co. O N CCOO N CO N 0 �} 0p N U)1` .- 1O V CO CO r- i r^r CO r- r 03 09 69 O U)•-V'V O co r-V'O .-- CD 0.--CD CO N co CD U) )N N 00 O O N'O U)O CO 0)N N CD 0 0) N U) (D CO O C O CC)CD O 1,CON 0 V'•-CO 0 CO CD (0 OD U)Ch r-CV O C)M O O al- U) (ND A N N O N N V'cri N 0 (D CO.CO N O N 3-0)U)U) N 1` U)r CO 0 `0 0) r f- N r- .-- N•- .- r- CO M M c9 r--- r-3-- N V' r- r- 'V 69 ER 69 U)CO C O r-r--.-0 N r.- 00 0 C).--CO 0 NO( D OD N Nr 0 r U)U)N N N r-V'CD co M a)Cn N 0, CO 1,N t CO CD r- CO N(D N CO O N CO N ' .- CO)' CO 0) 00 N r-Cn O co"CO O C)CO r-U) CO 0)O CCD O (ND 1,N co- O '0a' 00 co O N CO N.- CO Nr CO 0 -CO N r'-- CO O CO N r- (D 0 6) (') 0 N N CCO O N r" r"r- N N r-CO 6 O •- CMO V' r-.-- V' 3-- .-- 69 ER E9 N U)CD d CD N N 0) CD Cn r-C) U)CO N 0 CO r-'Q'CO N N N 1.0 N N 0)C)CCD_N CD�0) M r- O N N N CD(� ' O ' ' U)Cr)..CO U) N (0'?) () 3- C`7 N N N N co-r-U) C() CO(O M CX) (O•-N M CO O O N Co co 4 O 0 C)N r- co C;N CD N N O C0 O p CD NI' CO 1`.V" N1"..0) O O CO O 0,CO N CO N N(D N r-- 0 C)-M N N N a51-r CO 09 09 69 CO V'N CO CO 0 N C 0 •Nco-'N co N C)o N N CO CO N CO (n ' co CO N O O N r-N 0- ' ' •--NN M. U) U) C7)co V'O N cdN CO N co-C)N O CA O•- cor U) 0 CO CO N N CO 't CO U)Cn CD N Cb N U)CX)U) M N Q 0 o)co M U)Cb U)V:U)'0 O CD 0 h CO U)U)N U) C Z N C)CnN -,.- N Cn O r-N N cr N rV. r-N LL (C15N ERU, CO Q 0 >- 1- Z � Z F' u) N.001,3 00 3- 00 N U)N o) O N) 0 CO Z U)O U)N 00 U) r-r- C) N r-N'�t CD r- V_ Z 2 0 U)0.-U)N N ' U)''r U) V;,N co O N it Q 4 (O O(r)(D N O Ci r-D) O o(D M O r-CO Cr N CO N O O CD CO N CO 00 00 N V' O N C) 4 4 N C) N •; .-N N N CO V •-U) 4 O N E w w U 0 cc;M N 0 r- N Ln"O CV N •- Q>W 4 N M >-0>'0aj 09 6, 09 Lli -J .J- 0(-_-5 <v)c_n Q 0 (0(00(0(0 '- o co -D N N O.N-- CO0 CO O O > CO 0 C)'d N CO 0 CO N N N 0) 0 N In U)V CO CO ' N 0) M 0 CO 0 N ' ' C)N ' CO N O U Z_1< M N co-N<t M N 0) CO CO CO(O N'0 u COO N CD w Q 0 .-co o(0 M co co 4 N 00 O 0 to O p 0 NNNN.(D 00 Nr- U) (atiCO) 0)(n CO N U._Q h- N (D.- .- N CO CO(0 N 1` CD N O pp(n U 'r 69Z p < ER 69 Z O J 0 CC,'tr O N O co N CD V' r+ CO HZ 0 1NcC�4 ' CO0 ' CO opo_ CD ' CO '0•N- ' 0 C0t)n Cn0 Cl)CD't 4 V' CD N '�0 M l!1 N V'0)3-CO Nt 3- N O 0 Cn CO N O O M CO 0) 0 p CD CA CO Cn V: CO r- V. O U) V 0 Ct)C) CO d Z N CO N r-- N 0 CD CO C7 r- co" •" C) �.i Q .-- N N 0 O 09 09 (/3 N CO U)U)N U)N N(D 1, N N 0)60 V' 0 0 p CO o u) U)O coD CO CO M CON N U) N N.--co0 ' CD 0 CO CO CO CO_ r C C C O M(O N M C) N N C)() O VN'N O N ei o5 UN 0)c5 o5 O Cb 0 p N N CO N 00 CO U)N N 0(D 0 00 CD 0 V'Cr,co N�co O N r- N N M CA•- (D N CO CO r^ M .-- N N N N.-- CO .- N N N oft CR 09 0 0 CD Nt 0 CO O N 0 CND N CO N CO)O 4 r- O co CO U)C)It CO 0 U) 0 CO U) N .--(C)CD N CO N CO ' COO N O M•--O O O O 0 0)(ND .-O O coo N co (ND co(r-(U)C)CO O N CO0C)f) 0 U) 0 .-r-CO CD N 0 N O .--N co.CO(D U) 'O CO CO N NN co-C) .- M .- N 4(D r- U) 0) N N 09 09 EA CA C p .b 'v c0 N (n N t O E 0 U Cn X a2 €,u v°0 2' as a°'i ('),s E 24 8 N '1) Q) .0 c E >- I a) a C N D E o c 6- c a� w 2 2 �' a f 2, 8 n n�' c C S 'p .4,'-', v ai ;-n (1.o ) ro (te) > > a)C >,0 2 O c 2'2 i o c o N Q, �F ` co 3 v u, ri m °) N o 0 NI- cu 'u) C ) u c9 W 45 CO a C_a t 0.E o O F, 8 a. W C cS.0 O a a>E p K @ D ro rt.C)) 0 XX 0) c4 H.a:..�00W E EO H W Ofa.2UU00 H W a_ co � Co 6 C'S I 1 1 I i 1 I I I co o, 1 cc in l() O 0 D3 co., op N .--r ((CC bq Or r O in o in in O {'� 1 I I 1 I O 1 I 1 O 00 co in 00 ,` O N 0 O 0 'co ( D N NN CO 00 ai 0) D) 69 D 0) O c0 r (D 0D D r N ti I I I I 1 1 N C N r N LU N 0N M QN)0�0 v co 0N � N N N 69 ^ D O(D C N co o r 1 I I 1 I I I 1 O((7 N N O) ' N co Or 0 -N N 0 O N `C'.-r .4. y 69 M N cfl ^ co c") N c- CO'7 LU C) 1 I I I I O I I I 'd'(() co N 0 to(D CON 'd' a CD 0 co O O ¢ NN 'V' r-r N N "alto v 00 - D ,- ow co vN LE 1 I I I 1 0,O 1 r r (D r O O 001. rN O co Nto(n(f) •-'•- (n co 69 ^ O co a O rn 0) 1 I I I p 1 I 1 1 .„„._ 0 N 'd, DO 00 (D O '4' N .- r V' 69 ti';"-Cr' Eii. D O O a) CD 1 I I I I I I 1 1 r f in in N to tri vi O N r.r7.1." 69 O o O I I I nd' 1 I I 1 I In(n V- ~ V! Ch CO- r- (v1- N 0 N 0 0 (D V r O (D N C4 r r N O 69 OO I I I I I 1 I I I c7,(37, I N 0 O O co co., N N `-r N C to t t11 a c ° roar Q, 'a Ea) ca IT, c &) -• w ca w cn a o O a v ° o wa_ ai a) a) c°'o t tl. .D n A o Et n 2 c c '5 iv O .N f..) (7) __,t) U O € -o € A a.S O w . E.- a�pro 2 w,v-°o w b X O C O D U to .� O O '° .p E E E E o ° .. c .E in 3 iv ca c ( O o g 0 o p O O C Off.. a U a 1-O .E ` ° °' m ' � c .Z u� E a s U U c O ° o .. CC a) O 4) O ` a� a) a� c c ° c N ° v c E o a� E °8888ro@ c° cc a C a� o 0 0 o vai v°i m vai ro ro Q ° ° ° a' O aaaaa N Ca CHH H Z C cn m a_ c ..., \ o \ v \ r• u7 '',1 0) C) N- co 4 o iZ- 0) o a Lc) CD Co r` CO 0) 000NCO CO c >, a) io 0 CL o Oo ,-- CO d' N M CO �[) r- O 0) N LI) CO CO N CO O LI) N. C7 O �_. ,-- N N M ,-- N M c- O 'r- v) CO N NN ,- ,-- O\- r- -- a) 4) a) r" O Q E L11 c � 0 0 0 0 0 0 0 0CO a) c CO •,-- CO LC) ,- CO CO CO - N CO 0) N- CO r• d. O CO CO Ln FO- E 4 M M M N N- O o 0 0 N Q a co Z 0 N CO Q.. W Q0 w 0 o O J d. N H .� > wco M � o a NCOd- kr) cON- o00) o OQzz N U - — u Z O ( o a r- O CU o O Ln Ln 0 CO CO C7 N. CO r- N u) CO N CO Z v) CO CO Lo in '- N ,-- �c-- '- CO 0 >, H o Q E w o�- E 0 c a) U L O 4- 0 112 al a 71_3 c _ o vOi O j, N a) o " U 0 0 17, L._ v) a � � o �j E >,-o U U w To L) a) C0 � E c o_ �-o- j o c 0 o o o -a c a) 2 ' o >, °, OQ0 c a) co W s o °o O o O W �o co o c :� w ` o a) � LL O c Q' c'SE32 CO vTo o _ 0 E a) = E o o 0 co 0 o c� L-- a) 0 0 CL w > S < zHWIH ..J0J- > 0U) H CO o \ . o 0 0 0 0 0 �-- 00 O N Lf) O) N N w-- N CO N N CO CO CO 0) N` CD CO CO p C r CD If) ti N N ,-- ,-- A- T- Nit O Q) C (ZS a) LL (1) H CCS CL H Lf) O O N a) o as r-- co NI- N In CD N` co O) _ X(0 0 U) LL p In LI) r-- M N N M g' ,- ,- CD O N.. CO N 'cr LU O) CO CO N- CO N- N- CDCO,d^OCD(D - o X (n 1 C3; N N`- M , .�, oOO CO CO ` r d'N N r- N` CD LU N O (t3 C O IC) Lf) N1 N N r- i-- ,-- -,- 0) Q) M cn "-- Q) E� Cts (v W n- 0 0 < < \ o \ \ \ \ 0 0 0 0 O d- CO M 00 N- O N co 'ct '�"' co �c— t.t) ,4- c'7 in 'd N M v--- t.... CO N W W E5 N C 00 rt d' d' M M c0 (Ni N N N Q EE eL >- Po 76 E y Q D Q Cu) (13 W I-. O 1-1-1,_ v Q- -J• Cn �- ' a) F-- c6 a -J O O Q- Hwz ✓ Q D z C • J Q Q Li. a. LU O O U H N Wc O a. c Q) (ZS N co d' LU C -D N, 00 O C F— W >- Q C Uca 0 cn a Ix N i- CD IC) CO O O N LU CD O 111 CC) O ,-' CD CO O O N CD (r) O N 'V d- N M co O .-- N N"- '� �t O)O N a) X W CO coLri N`00 00 O M -.., M 0) N.. CD d' i- CO IC) N N N 0) F- p O C N CO CO co LO in co co NCDLOLUN `+- E "-- CO (J) Q- -O Q) 25 69- } (v (ts C Cll co O p C Ct a) o o o -� -o 0 0 0 0 -°) o o p o ca co ►.. ` _ �-- Q) CO a) E ) u f :-6 '- 'T3 v n v .� v u 'm ca di E D C O C C cu v a) o 0 0 0 a) o o o -C L m QUU ecY (rUUUUXUU U RI �U) O `' cu C O 0 N — QmUOWLi_ 0z _ -) YJzOa. O CLn Q) Q) O Q) Q) N Q) Q) O O Q) Cu- Q) 0 0 0 41 Q) O O >, >, >. >, >, >, >, >, >, >, >, >, >, >, >, >, >, Q) N �-- cO (0 03 CI) C13 CIS C) RI C� RI CO C) C) Cts c) c� CO CO a� a a a a a a a a a a a a a a a a a 77-, a) X X X XXXX X X X X X XXX XX X +-� m CO CZS C13 C) al CIS CO (CS a, Cts CCS Ca CO CO CU CO CCS CO 0 O Oca H F- F- F- H F- F- H F- F- F- F- F- F- F- H F- H H U) Z Q co O N V' V' M V' N CO N U) e cr co (v) U) CO M N N O 0 0 0 0) .-- N CD N CO (C) c0c0 U) N- 0 0 U7 .-- ..4.-N U) N O .-- N ER 69. 00 0 0) 0) NN co N N O C7 N N- CO �-- 0 00 O N N O ti '�' CO M U) 00 r-:" �- V N N~ N r- N ER ER U) r-- (D 00 U) 0 0) CO N`- 00 N 0) co N U) CO N U) r co N- CD 0 N 00 s- N CD N- 00 C7 r-- V U) 0 0 (D co-N U) N .- N Ce fR 0 N U) .- CD 0 N U) N N- U) ‘,1- O (D 0) U) N 0) U) CD 0) or) CO 0 O Cr) .- N CO r- N .-- V' U) 0 00 ( CO N N N .-- N ER E3 0 V' N1 O V' N CO N co 00 N N 0) M r- U) 'ct' c0 'rY h- (D O N 0 U) U) .- r- 0) 0) t-' CO V N` 0 0N CO N 0) N (a >' Ce Ce 11. Vr O) O CD N CD r- M (C) N O o r- N U) V N U) O O C fes- ti • r 0 N- U) .- CO '..-CO N 0 0 CO N „- c0 N 0 N Ce ER Z � N CO 00V' - .- (D V N U) O N CO o' < M ( 0M 0 car) O N cCO N 0 <LU 0 0 .- N.,-- to N �} QQ Ce Ce Qm U - 8:•••' O CD U) ,-- N-- O U) co N N U) OJZZ N U) CDCON '� NV c0 CO 0 CO LIJ 0 N (D N LL W N 0 i g (9 0 H MN N M M N MI--- M (0 r CO .- CO c0 N- U) "E0 0) 0 0) N- O N N c0 CO0 0 N C0.- .- N O N (fl ER 0 co co co Q) co to N N U) N 0) 0 O p ',I O N N r 0 0 CO .-r- (D N O N to (3 U) a) 50 N O o O C 0 `- NN N 0 c .-- a) CO N 0 E > N a a) C ,--:- E - U O > > ▪ > Q O di II) w 0• 0 a)CL X UJ wxx cq X ,J 0.ID., ccs (� N a) c6 11) i—I— (-H D acn -a c`o a) (0 ma) c m (n ▪ a� � c co ,(3- 11 o cn c c N r o c c o v .c O O tv q) 8 # P a) , _O O N O co U• U CO ULL ppC — 0 v, °p 'oma0� +-- • co c +l a) c a) — 1-1,) o o O •o 0 0 0 0 a) p (D L Cll N ,C O — N O O O Z \\\ \ \ CO O 2 H w [Y l.l... (n Q U H H (n M C") V' (D N CO 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 2000 2.00% 1.00% 2.00% 0.00% 5.60% 2001 2.00% 3.00% 2.00% 0.00% 5.60% 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% Source: Arizona Department of Revenue Page 109 N Ul.j..”7."1.1"(4L6i. .6 r✓r- rr- NNNrNr ELM VI W7,3 c O P O O\Q O\C' CC w (D U/ N r- OD N. CO r N,g 0N CO ,t CO N O co`r CO O r` 5 E 0 (,6644666464 v V Lac a 0 15 (nN o n OO drno O o(D o0 4) i� N O Cr) r- M `t O t`r- 1 ct E M 'V' (D Co(n 'd `t o (O o C N d' (O (D CO O r- N CO CO ,E a� N. V.CO Cr, CO CO CO N.0 N 0- o CO`DV) LO (`DCO CO O CO CO CO (.. WN a) (O N 111111 co r CO J (C rrN. a (n(n co 0 V) d(p O a) (C a) r- F5 U..J (11 ciQ w00 • a� o- F- Kir%) w o0 U) 0 > CO M awre . a) Za vv Q r •_ „, z>. m Ncow O co O 0 0 OO N 4 'd <LTI N M CO Nt T.-0 O(,n (n (n Q O I~O N.0 CO 0 O O) CO LLLL11 S w r O M N f� OO (D �-D�- c iD r- I`N(n N N M (D OO r. W(9 J W o C Nt In N� r CO N Cr (n to(f? -1 Z < H > 0 O(n 'd' Oo (,[� Ct d r-o r- Q Q 0 Q CD CD co co co co (o (o (O co M(n >Z-D (24---ZZ o -, �- LLD, C 0 0 0 0 0 00000 (Dow o (0 I I " 100000 Z LL v N O (6,4-5.6(6d 00O N 0 rn 0) O COQ) cn N m M co"co-vi v QQ (fl O N(D (D N(A d CO (O 0) KO M r- r- co O(n V' V V (0 O (0 O .- .-- Q) N c-- O r - g N(p NI d' M M r- C7 O a)'O N M CO M r-I` O 00 ,t Ng (0 M CD (n r- ,t r-OD r- Ni )CA r- M r- (0 0 0 CrN N ,- co W (v a) a) •> CO U 0 0 0 o0 0 0 (,)Q a� , . i o0 - r- o00 (0 16 C •n (0 (0 M ,f O O O C a) J � Nh.000apoo U E a r- (o V N N OD CO 0 E te D a) > c O 0000000 (a O tn 0 0000000 , i , •- 0 0 0 0 0 0 0 0 N 4 to 0 0 0 0 0 (rE V - Loo,t.' N. .--N r- 4=-wO UD N CO r- (D 'd'N a) If d N a) a a U Ef) 8 c (a c r- IIao T N a) °' r To > U J 0 (fl O c 3 0 H Ts •- O s-•N M ,:t tt)(D h OD O o `D CO O O 0 O O 0 0 0 O O pj `- N 0 0 0 0 0 0 0 0 0 0 0 U Q) LL N N N N N N N N N N Q5 CD VJ (Z TOWN OF ORO VALLEY, ARIZONA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT JUNE 30, 2009 (UNAUDITED) Estimated Estimated Share of Debt Percentage Overlapping Governmental Unit Outstanding Applicable Debt Pima County $ 388,031,000 7.05% $ 27,362,531 7.05% 2,734,131 Pima County Community College District 38,773,000 31 134 Pima County Flood Control District 725,000 7.05% , Amphitheater Unified School Distrist No. 10 46,705,000 39.48% 18,440,961 Town of Oro Valley 22,809,146 100.00% 22,809,146 Total direct and overlapping debt $ 71,397,893 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 2008-09. Page 111 O e M co O O O O N o N 0 0 CO 00 r .- co,, EA Efi N N O C) (T ' a) O co () co O o itinO N 00 69 EA 69 a) 0 O o in N - (') (n r C) C) E19 M (1j O o O . O 0 o cc M O ,t. t O o � N O 6- N qf-- T V' 93 C) a 0 O t ,- O ,- in in N N: O o oo O co 00 N c0 O d9 ) o z LL p co O O ZO - - O a r ,-o 0 0 OaNN c 01- q wLi .}. zJ0 J Z V�- O O >0 j C , rn o >[Y u'Q co •- ,-- it o O§Z z o pHH? NN <r u..m y._ °° z wo g () C) (B. z Q OO CD H W u0-) (n 0 J ap ' CO CD N cO p 0 O O O CO N (0 CO N C) d9 EH N el ' p O O O co co O co O N C) CO (D (fl 69 (i9 0 co00 0 CSD O 0 05 O O N N O co c� N ti C a) E cad a) 0 E 8 C C =4_, C E .c.E 'u`. 2 O 1] w a) wio j Ta ifa 46 o ,y) O To_- ca c a o co c E i...., 1;1 .-15 - co H N J C P t_ a) Q) O O O , TOWN OF ORO VALLEY CALCULATION OF LEGAL DEBT MARGIN JUNE 30, 2009 (UNAUDITED) Net secondary assessed valuation $ 693,924,598 Water, Sewer, Light, Parks, Open Space and Recreational Facility Bonds Debt limit-20% of secondary net assessed valuation $ 138,784,920 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 $ 138,784,920 9 All other general obligation bonds Debt Limit-6% of secondary net assessed valuation 41,635,476 Debt applicable to limit General obligation bonds outstanding $ - Less amount set aside for repayment of debt Net debt applicable to limit All othereneral obligation bonds debt margin 41,635,476 9 g Total legal debt margin $ 180,420,396 9 Source: Pima County Assessor's Office Page 113 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 2000 $ 8,706,515 $ 425,000 $ 1,627,675 $ 2,052,675 4.24 2001 8,330,951 1,683,544 1,926,914 3,610,458 2.31 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 Governmental Revenue Bonds Fiscal Gross Debt Service Year Revenues Principal Interest Total Coverage 2000 $14,300,536 $ - $ 40,606 $ 40,606 352.18 2001 15,220,985 140,000 65,935 205,935 73.91 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 Certificates of Participation Fiscal Gross Debt Service Year Revenues Principal Interest Total Coverage 2000 $14,300,536 $ 390,000 $ 271,756 $ 661,756 21.61 2001 15,220,985 155,000 253,322 408,322 37.28 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 Special Assessment Fiscal Gross Debt Service Year Revenues Principal Interest Total Coverage 2000 $ 5,048 $ 90,000 $ 6,525 $ 96,525 0.05 2001 - - - - 0.00 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 1.02 2008 365,810 195,000 177,577 372,577 0.98 2009 367,539 205,000 248,429 453,429 0.81 Source: Town of Oro Valley Finance Department Page 114 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 2000 29,700 $ 952,420,194 $ 32,068 1.9% 2001 29,700 980,992,800 33,030 2.0% 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% Source: US Census Bureau, Arizona Employment statistics and Pima Association of Governmi Page 115 0 0 0 0LO000 0 0 0 0 0 00 0 0 0 0 0 OOU) NNO0 OOL() U) 0 . O 0 d C6 N ,- (o N6 V Min ci r N VD c0 N CO N N 0 0 0 0 0 0 0 0 0 0 0 0 0c\i 0cci 0 0 0 0 Co 00000U) 0 00U) Ln O 00 r~ N o0o C) N V M M r" (D N t` i~ '� Cfl CO M (O CO�- r" `_ N N 0 0 0 0 0 0 0 0 O O O 0 0 0 O 0 O co Oo oo � oLnoo ooLn co o N � r--:,M N M N N I` N O . d' CJ' N V `' N CO CO NC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 C) 0 0 CO0 -7 CO 0 0 0 0 00 0 0 0 0 0 CO 0 O N d d M N N O r V N '� N N CO CO CO N CO z0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O actio 00001.0000000 CO 0 0O v? `n 0 CO H O ,a. 4cri N N N00 N- t c6 '4 07 CO ti CO CO U) U 0 N ,-- - N N CO Z DE Lo o 0 0 0 0 0 000 L0000 in 0 0 0 0 0 0 0 0 0 0 Q u.. woo �n co 0 Z �- C V M N N (D 0 4 M OCCO O• m N N CO (/)CYWY o CO S CO CD00000U) 000 0 CO 00 0 0 0 Q• W 0 U) 0 0 0 0 0 N 0 0 0 CO `4" "-' }- �- a • W N (D M N ti d O CTD N - csi N 0 0 CO CO J � QOw a) aC � � p Eo 000NOOC'4 000 0 CO 000 0 co o co > W (J D 5 0 4 (D 1 N CO 6 O N O C N 0) CO p CO CO LI) CO pZZZ �- Cf• W0 0 0 O 0 0 CO ((OO r-0 N O O N 0 0 0 't; 0 0 U) O > c4 oci 4cva7000 000co cd oi � o COco 0 CO csi Z ((0 , . N coC � - - a) W 0) 0 0 0 0 0 0 0 0 0 0 N 0 0 E p 0 (Dr- ov000 000 coo. NN, f-- Ll 1 0 00 V ,- O) CO (- O (D N CO 0 O U) CO coa) r-- 0 _j C J .E co Q lc C LL C >,T. a) a 0 a) E. °c a) c p 0 W Q o o O0) a) co > SN x@O� c oZ U o 0 • C w m � . Oc V c �' 7.' � 0 se �` ccmc c O O (0 _o N C co .>Z 4=1 •c 121- ZW .LLc J E cUUCL „, v UO . U .) a • d 0 V CL J a. E c F- cn o 0 (c, a) rn as W CO CO CO O) 0 3-" N. 0 CO Lf) N. CD 0) N. N. CO N 0) 00 CO CO CO N 0 `t 0 CO u) N. O O O O Cr O 6 ‘- CO 4 czsCO r r N Cr) O O V N CO CO O r- r` r LO O N.N.0 CO 'rt H CO CD 00 00 O O O t-- r r (H .' C i CO CO . LI) i i i cn L. CO N N CO N T5 a) d' ..4- to L) r. O -C D Ea ► ► ► . CO 0) 0) 0) 73 O N. O r-- a)Q) O ll) O O) `t N. r C) CO O (t3 CD 0 0 CO I-- J r 1- r a) tY Cf-? 0 0) N. N tt N Cr) CO 00 CO N N O 0) N O Lt) M CO 1- N CD CO N. r- NI- N. 00 CO d" t N:C6Co (D0000(6li D (D C) CO in '1 0 ( CO CD CD 1. 0) O ,- r r N O CO CD N T-- r r-- r ta WCL c O . . ' . 0 N co l'..- < Qr � E rco OW G CC U ry Eft Q > u� m WW --I W c 'Cr CO r. C) co Lo d4 O CD ,t- _J �t -J Q 0 s- O CO N. N O 00 N. 'd' O -JDU1 4,, �( CONor-- orCONrrn Q Z wC) O tf) O (") s- co-N N O N CO 'ct O to O CO Nt lt) ,t O w ll. Q NN N N r N d' CO CO CO C O W F- Z 0 O D cn zH . ' ► ' ' ' ► LC) CDN- J O CL c w O r O CO .Fo QUA — (LCL/C .- 00 r` O O et CD N N C '� 0_,L0 Cn N N. CO coo N CO O .t .- Q) 00 r M Lo N CO N fes- N CD 'r" M s- oO CO C) CO01 as C) 00 00 CO N r. '4 0) CO (oco N. con O O r O L r T' L G (I] E O rte- N CD d' O 'I' "st 0 O t N. 0NMMOON0v- '-- CO N. N.CO CO 0 CO ',t CO 0 0- a) a) CD N ti' O Oi(.6'd- d' ti O a E CO O O O O ,-- ' r CD 'St E (r) .4 1.0 Cl" to CO C0 CD N U (n 3 t o '4ti co oo CO O CO t. o i (0 4 40000ao°°oorn ) r ('7 a) r .M- N O 0) N 00 r t� p 0 U) LC) 0 Cr) N.N .- (1) C O ii5 -I'd- CO CO CO N. r. r`� O cCO C O H T-- (15 �- O r- N M .t CO CD N. CO O 6 •- CO 0000000000 a� w a) 0000000000 a NNNNN N N N N N 0D cd 0 CO 0 CD CO O N N '� Oa S ,--- CD 0 r N 0) 'I LC) ID N N. ,- (0 0) r' N O) N CO LU CO co- N r ID I, N �' N- O CO O N 0 CO N. ..-- CO CO N O) 0) LO I` C) ct r N` 0 d' tom-- O p r 'c n ,r CO N ( ct O N I, CO N N- LU CO �- O) o. N` `- o N000LOCON I` © o 0 0o 0000O 0 r r CO N ti CO 0 C7 00 N 00 N COCOCNCO,- r- CO N` CO CO CO 00 v CO O O O CO co N I` 00 O O O 0CD O co N-- N 00 0 •st0 O COC N CO (n N co O O v. r CO 'r' O '- r-- pco N CO N� 000 O O O Op O COO 0 r- CO N O O O 0 co O) CO O) N L d' c CO O N 00 © co-O O �. (0 a) Z (d �t co 00 N 0 (0 O O 0 CO(O CO CO C) O 00 O V^I` CO N r 0 L0 In N O) Q LL N O CO-N co-16 rNN Z U r O j Li- (� COO 00) ton �� C? N p N 0 tis co0 Q rw 0o r- I, r � NrLU 0 .4o (off }- �- 0 N co. 'd' N CO CO N Jt Q E_.Lii r ON- N N N` 0 �-' N '�' CO O O 0 O LU CO N Q C.) LL' Q o O co co O d CO �- r- LN 00 0 0 0 to NY Q W N CO N O (0 COO Z H ---- O 0 (.C) 00 < N` 00 N- O 0) zf- 7 0 CO CCOL � o o rN Z (0o COO 0 Q 0 coN-- OCO _ �— r 0 N ON LU 0 ►— w r --(n c 0 O N` N- p CO cO 0 0 < CO `- O coC 00 1' (� c- c� c� (� N Z ,- 0 00 •fir' CO N 00 CO N cr) ,-.. ,a: N o0 ,-- `- N �-' a) •`� C > EC o Q 0) >. o 0 'a. C O 0 00 QCs0 ca O C -o (1) z U- o a cva. ›, I O co a) •Eo @ E (� a- a) v ° Co 0) C rn 0 C C O 2 .� co D 0 O O V) (13 w C N O t U U E `� CO C Cl- C > O C O Pi, O o O cn (a v (n 2.2 O O 4,--). 0 C45'O O O c 0 2 C C Q 11: ([S cn +� 0 a) T 0) CD O O o 0 C O (00 (0 ( ~ C C 0 _ > 0 2 + co O O (0 O a) 0 + O O (I) Coa) mU F-- f-- CSU) cn 0- �'U 5Zt- cnl- a- L o C 0 .5 eki - (0 2 0 C a) m (0 NZ TOWN OF ORO VALLEY, ARIZONA 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 2000 $ 10.81 $ 1.73 $ 1.85 N/A N/A N/A 2001 11.25 1.78 2.08 $ 2.31 N/A N/A 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 Source: Town of Oro Valley Water Utility Page 119 ,-- N 0) ,-- CO CD CD N N- N 0) CD I,- 0) N N- N 0 0. LC) T-- N co v- N 0) CD N CD N ,-- N CO 1-- 00 CD CD N N-- 0) CO l•-• 0) ,-- 0 ,c" 1- N CD N CO,-- N CO CD N CD N ,--• N LO 0) CO L1) CD N h. 0 N LO CO N ' 1-- N 0)a ---' 0) v- CO ,-- ,-- ,--. 0 N- CD N CD N ,-- CO In CO N- 0 CD N h. CO CD 0 O N CD h- c\J V- N,-- • CV- ,- CO OD 0 ,- P N ,--- CO CO CD N- CD N- N N- N N- CO 0) N ,-- N CO 0 06 C° '--- ,-- V- CO LO Z CD 1.-- CD x--- 0 1:--- COa) >- co v- cc) cs) < 0 N. .-- CO r-- N l''-- CO CO N ,--- N CO Z Z To ,-- 0 c3) N h. 0 (/) N U- CO :- •st CO = LLCD ,-- CD N - ,.,./ •,_ ---, Lo V' (0 CO N.- N CO h. CO r•-• r-- N h- N ,--- N CO co 6 (1) ___ „... , --- __I (/) 0 r-_,. co < r__. co 0 CD CD ,--- > < Li D N 0 I- -, QU) ..- Z to cO v. co LU D = N c0 LO c0 l'-- 1,-- N r-- c\I ,---- N 0 (i) H .. N- r,,: CD CO,- U._ u j H N CO 0 (j) (.0 0 ,--- Z CI) 0 N ...J ,z;r ,-- CO CO 0 ,-- N (t) CD h- LI) r-- N is'-- N ,--- N H H (.0 (6 ‘4. '4" 4E' 0 CD N a) ,-- N CO -4- 0) "q N- N r.-- CO N 0 V' ,-- N T.-- N N- 1.0 N CO Ct_ 0 1.0 a) CD ,-- 0 CD a) N 0 c CO (/) C 1.1: D C , o - > a) E co a) 2 ' > t:3 . • co ._ ._ c) c.) o o _o as co :47; u) U) 4 CI Cl 4-0- :1 (J) (f) W (13 C13 22 -cc) v) ai co EP. OE 0 -(3 0 0a) . (7) I- c 2 w .0 2 & a - > C (0 M o a3 cr)_0 cn 2 17; c 28 a L- w ao *(7) 1--- 2 N ci) < 67- co a) C D N-- ....--.5 a) w w a. .2 C/) CO I-- 0 o sl --.. co 2 o a) J ._ n co H CD CD n 0 Co a_