HomeMy WebLinkAboutFinancial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/2002 ,
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
TOWN OF ORO VALLEY, ARIZONA
for the
FISCAL YEAR ENDED JUNE 30, 2002
Prepared by the Finance Department
Town Manager
Chuck Sweet
Finance Director
David L. Andrews
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2002
Contents Page
INTRODUCTORY SECTION
Letter of Transmittal i
GFOA Certificate of Achievement ix
Organizational Chart x
List of Principal Officials xi
FINANCIAL SECTION
Independent Auditor's Report 1
General-Purpose Financial Statements
Combined Balance Sheet - All Fund Types and Account Groups 4
Combined Statement of Revenues, Expenditures and Changes
in Fund Balances- All Governmental Fund Types 7
Combined Statement of Revenues, Expenditures
and Changes in Fund Balances -Budget and Actual -
All Governmental Fund Types 8
Combined Statement of Revenue, Expenses
and Changes in Retained Earnings -
All Proprietary Fund Types 10
Combined Statement of Cash Flows - All Proprietary Fund Types 11
Notes to Financial Statements 13
Required Supplementary Information:
Public Safety Personnel Retirement System
Analysis of Funding Progress 32
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2002
Contents (Cont'd) Page
Combining,Individual Fund and Account Group
Statements and Schedules
GENERAL FUND:
Statement of Revenues, Expenditures and
Changes in Fund Balance- Budget and Actual 36
SPECIAL REVENUE FUNDS:
Combining Balance Sheet 38
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 39
HURF Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 40
State Seizures and Forfeitures Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 41
Federal Seizures and Forfeitures Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 42
Public Transportation Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 43
DEBT SERVICE FUNDS:
Combining Balance Sheet 46
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 47
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2002
Contents (Cont'd) Page
Municipal Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 48
Oro Valley Water Connection Fee Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 49
CAPITAL PROJECTS FUNDS:
Combining Balance Sheet 51
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 52
Alternative Water Resources Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 53
Oro Valley Water Connection Fees Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 54
Library Construction Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 55
Townwide Roadway Development Impact Fees Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 56
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2002
Contents (Cont'd) Page
ENTERPRISE FUNDS:
Combining Balance Sheet 58
Combining Statement of Revenues, Expenses and
Changes in Retained Earnings 59
Combining Statement of Cash Flows 60
GENERAL FIXED ASSETS ACCOUNT GROUP:
Comparative Schedules of General
Fixed Assets by Source 64
Schedule of General Fixed Assets by
Function and Activity 65
Schedule of Changes in General Fixed Assets
by Function and Activity 66
STATISTICAL SECTION
General Government Revenues by Source 68
General Government Expenditures by Function 69
Taxable Activities, Tax Rates and Distribution Shares 70
Transaction Privilege (Sales) Tax Rates by Category 71
Historical and Projected Excise Tax Collections 72
Town Transaction Privilege (Sales) and Franchise Tax Collections 73
Special Assessment Billings and Collections 74
Estimated Debt Service Coverage Regarding Excise Tax Collections 75
Statement of Bonded Indebtedness 76
Direct and Overlapping General Obligation Bonded Debt 77
Computation of Legal Debt Margin 78
Property Tax Assessment Ratios and Comparative Secondary Assessed
Valuation Histories 79
Comparative Secondary Assessed Valuation Histories 80
Assessed Valuations and Tax Rates 81
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2002
Contents (Concl'd) Page
Primary and Secondary Property Tax Rates Direct and
Overlapping Governments 82
Net Assessed and Full Cash Values of Taxable Property 83
Secondary Assessed Valuation by Property Classification 84
Secondary Assessed Valuation of Major Taxpayers 85
Historical and Projected Water System Revenues, Expenses, Debt
Service and Coverage 86
Oro Valley Water Utility-
Schedule of Rates, Fees and Charges 87
Number of Meters Connected 90
Number of Connections by Type 91
History of Connections to the Water System 92
History of Building Permits 93
Schedule of the Fifteen Largest Water System Customers 94
Demographic Statistics 95
Property Value, Construction and Bank Deposits 97
Schedule of Top Employers 98
INTRODUCTORY SECTION
THIS PAGE BLANK
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TOWN OF ORO VALLEY
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ORO VALLEY,ARIZONA 85737
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Administrative Offices(520)229-4700 Fax(520)297-0428
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LADED
September 23, 2002
TO THE HONORABLE MAYOR AND COUNCIL
Town of Oro Valley,Arizona
The Comprehensive Annual Financial Report(CAFR) of the Town of Oro Valley for the year
ended June 30, 2002, is hereby submitted. Local ordinances and state statutes require that the
Town issue annually a report on its financial position and activity, and that this report be audited
by an independent firm of certified public accountants. Responsibility for both the accuracy of
the data, and the completeness and fairness of the presentation, including all disclosures, rests
with management. To the best of our knowledge and belief, the enclosed data are accurate in all
material respects and are reported in a manner that presents fairly the financial position and
results of operations of the various funds and account groups of the Town of Oro Valley. All
disclosures necessary to enable the reader to gain an understanding of the Town's activities have
been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory,
Financial and Statistical. The Introductory Section includes this letter of transmittal, the GFOA
Certificate of Achievement, an organizational chart and a list of the Town of Oro Valley's
elected officials and department heads. The Financial Section includes the general purpose
financial statements and the combining and individual fund and account group financial
statements and schedules, as well as the independent auditor's report on these financial
statements and schedules. The Statistical Section includes selected financial and demographic
information, generally presented on a multi-year basis.
The Town of Oro Valley is required to undergo an annual single audit in conformity with the
provisions of the Single Audit Act of 1996 and U.S. Office of Management and Budget's
Circular A-133, Audits of State and Local Governments. The auditor's report states that the
Town of Oro Valley, Arizona, complied, in all material respects, with the provisions required of
the Single Audit Act of 1996 and U.S. Office of Management and Budget Circular A-133,Audits
of States, Local Governments, and Non-Profit Organizations.
The financial reporting entity(the Town) includes all the funds and account groups of the
primary government (i.e., the Town of Oro Valley as legally defined). The Town provides a full
range of services including police protection; the construction and maintenance of streets and
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.
i
GOVERNMENTAL STRUCTURE,LOCAL ECONOMIC
CONDITION AND OUTLOOK
Governmental Structure
Oro Valley was incorporated in 1974. It is located in northeastern Pima County and has a land
area of 32 square miles. The Town's current population is 34,050.
The town government operates under the Council-Manager form of government. Policymaking
and legislative authority is vested in the Town Council, which consists of a Mayor and four
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 and the hiring of the Town Manager.
The Manager is responsible for implementation of the policies of the Town Council. The Town
Manager appoints all department heads except the Town Clerk, Chief of Police, Town Engineer
and Magistrate.
Local Economic Condition and Outlook
The local economic condition for the Town of Oro Valley remained stable in fiscal year 2001/02
despite the tragic events of September 11, 2001. As in past years,the Town relies heavily on
local sales tax revenue collections from various industries such as construction, retail trade and
hotel/motel lodging. The terrorist attacks had a significant negative impact on the real growth in
hotel/motel sales tax collections but this was partially offset by better than expected construction
sales tax collections. Overall, General Fund revenues were approximately$300K(1.8%)below
budget at fiscal year end.
Construction sales taxes for this fiscal year totaled $2,779,000 which is 5% lower than the
previous fiscal year. This amount accounts for approximately 42% of total local sales taxes
received in this fiscal year. Revenue projections for next fiscal year indicate that construction
sales taxes may decrease by as much as 15%. This trend is expected to continue as the Town
approaches build out within its corporate limits. The Town will continue to expand its economic
development efforts to attract retail and resort businesses into the Oro Valley area to offset this
inevitable decline. The Town is also currently working on several annexations in an effort to
expand and diversify its local sales tax base.
Retail sales tax collections totaled$1,877,000 for an increase of 6% compared to the previous
fiscal year. This industry along with tourism will be the primary focus of the Town's economic
development efforts for the next five years. The Town has recently been working closely with
several developers to effectuate some significant retail projects.
On September 1, 2001, the Town increased its bed tax rate from 1% to 3%to provide a funding
source for economic incentives which will be used to promote the tourism and resort hotel
industry. Sales tax collections from the hotel/motel lodging industry increased 13% despite a
decline in real growth due to,the events of September 11. Tourism levels are expected to have
some but limited growth in FY 2002/03.
State shared revenue collections (auto lieu, income, sales and HURF) increased by approximately
$2M (29%) over FY 2000/01 due to population count increases from the Year 2000 Census.
Nominal increases are expected over the next few years.
MAJOR INITIATIVES
The Town of Oro Valley began and completed several major capital projects during fiscal year
2001/02. Details of these projects are discussed in the following paragraphs.
The expansion and remodeling of the existing administration building and magistrate court
building began in March, 2002. Departments located in the administration building include the
following: town manager, town clerk, finance, human resources, economic development and
legal. Total cost of this project is approximately$1.4M with an estimated final completion date
of March, 2003.
In July, 2002 construction of the new Oro Valley Public Library was completed. A grand
opening was held in August, 2002. Total cost of this project including construction, furnishings
and library collections was $5.3M. Funding for the library included $2M from Pima County
bond proceeds and the remaining balance from town bond proceeds. Operating costs for the
library will be shared equally by the Town and the Pima County Library District.
Construction of the existing police department communications facility began in May, 2002.
This will allow for additional space to house the new upgraded 911 system funded in part by the
State of Arizona. Total cost of this project is $370,000 with $170,000 of this amount being
funded by the State of Arizona. This project is estimated to be complete by October, 2002.
$2.6M in road improvement projects were completed in this fiscal year. Approximately$1.7M
was for roadway system capacity improvements and $900,000 for street overlays and
maintenance. $1.6M of the total costs of this project were funded with grants from the state of
Arizona.
The Oro Valley Water Utility completed $5.7M of water system improvements in this fiscal year.
Major projects completed were for transmission/distribution lines,wells, booster stations and
reservoirs. System design for the delivery of treated effluent to be used for turf irrigation is
expected to make significant progress in FY 2002/03.
FINANCIAL INFORMATION
Town Management is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the government are protected from loss, theft, or misuse and
to ensure that adequate accounting data are compiled to allow for the preparation of financial
statements in conformity with generally accepted accounting principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these objectives are
met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not
exceed the benefits likely to be derived; and(2)the valuation of costs and benefits requires
estimates and judgments by management.
iii
As a recipient of federal and state financial assistance, the management is also responsible for
ensuring that an adequate internal control structure is in place to ensure and document
compliance with applicable laws and regulations related to these programs. This internal control
structure is subject to periodic evaluation by management.
As a part of the Town's single audit, tests were made of the internal control structure and of its
compliance with applicable laws and regulations, including those related to federal financial
assistance programs. Although this testing was not sufficient to support an opinion on the
Town's internal control system or its compliance with laws and regulations related to nonmajor
federal financial assistance programs, the audit for the year ended June 30, 2002, disclosed no
material internal control weaknesses or material violations of laws and regulations.
In addition, the Town of Oro Valley maintains extensive budgetary controls. The objective of
these controls is to ensure compliance with legal provisions embodied in the annual appropriated
budget approved by the government's council. Activities of the general fund, certain special
revenue funds, enterprise funds, debt service funds and capital projects funds are included in the
annual budget. The level of budgetary control (i.e., the level at which expenditures cannot
legally exceed the appropriated amount) is the departmental level for the General Fund and in
total by fund for the other funds. The Town also maintains an encumbrance accounting system
as one method of maintaining budgetary control. Encumbered amounts lapse at year end.
However, outstanding encumbrances generally are reappropriated as part of the subsequent year's
budget.
As demonstrated by the statements and schedules included in the Financial Section of this report,
the Town of Oro Valley continues to meet its responsibility for sound financial management.
General Government Functions The following schedule presents a summary of General
Fund, Special Revenue Funds, Debt Service Funds and Capital Projects Funds revenues for the
fiscal year ended June 30, 2002 and the amount of increases and decreases in relation to the prior
year.
Increase/(Decrease)
2001/2002 Percent From 2000/2001 2000/2001
Revenue Category Amounts Of Total Amount Percent ; Amounts
Local Taxes $6,674,725 26.3% $245,568 3.8% $6,429,157
Intergovernmental 12,991,454 51.2 4,662,546 56.0 8,328,908
Fines&forfeiture 316,339 1.2 (17,416) (5.2) 333,755
Licenses&permits 1,430,157 5.6 (346,108) (19.5) 1,776,265
Charges for services 549,440 2.2 161,783 41.7 387,657
Contributions&
Donations -0- 0.0 (3,785) (100.0) 3,785
Special Assessments 2,412,888 , 9.5 (676,144) (21.9) 3,089,032
Interest 875,361 3.4 (881,871) (50.2) 1,757,232
Other Income 150,444 .6 (22,282) (12.9) 172,726
Total $25,400,808 100.0% $3,122,291 14.0% $22,278,517
iv
Total revenues for fiscal year 2001/02 increased by $3,122,291 or 14.0% as compared to last
fiscal year 2000/01. This increase was primarily attributed to intergovernmental revenues. The
increase in intergovernmental revenues was offset by decreases in building permit fees, impact
fee collections (special assessments) and interest earnings.
Several revenue sources accounted for the increase of $4.7M in intergovernmental revenues.
Approximately $1.7M of grant proceeds was received from Pima County for construction of the
Oro Valley Public Library. State and federal roadway grants increased by $1.4M. In addition,
state shared revenues (auto lieu, sales, income and HURF) increased by $2M due to the
population change from the Year 2000 Census.
Licenses and permits decreased by $346,108 due to a decline in the number of residential
building permits issued. 534 single family residential permits were issued in FY 2001/02
compared to the 793 issued in 2000/01. This decrease in residential building permits also
correlated with the decrease in special assessment revenues from impact fee collections.
Interest revenue decreased by $881,871 primarily due to a drop in interest rates on town funds
invested with the Arizona State Treasurer's Local Government Investment Pool. The rate of
4.118% for July 2001 steadily decreased throughout the fiscal year to a low of 2.103% in May
2002 and 2.169% in June 2002.
The following schedule presents a summary of General Fund, Special Revenue Funds, Debt
Service Funds and Capital Projects Funds expenditures for the fiscal year ended June 30, 2002
and the increases and decreases in relation to prior year amounts.
increase/(Decrease)
2001/2002 Percent From 2000/2001 2000/2001
Expenditure Category Amounts Of Amount Percent Amounts
Total
Current
General Gov't $6,055,062 20.3% ($1,201,710) (16.6%) $7,256,772
Public Safety 8,586,634 28.7 1,238,892 16.9 7,347,742
Public Works 3,144,676 10.5 220,557 7.5 2,924,119
Culture &Rec. 1,474,667 4.9 280,821 23.5 1,193,846
Capital Outlay 8,094,782 27.1 4,466,152 123.1 3,628,630
Debt Service
Principal 1,596,456 5.4 476,456 42.5 1,120,000
Interest&
Fiscal Charges 932,124 3.1 315,244 51.1 616,880
Bond Issuance Costs -0- 0.0 4 (800,879) 800,879
Total Expenditures $29,884,401 100.0% $4,995,533 20.1% $24,888,868
Total expenditures for fiscal year 2001/02 increased by$4,995,533 or 20.1% as compared io last
fiscal year 2000/01. Capital outlay accounted for most of this increase.
The decrease of$1,201,710 in general government is primarily due to the acquisition of land in
fiscal year 2000/01.
v
Public safety increased by $1,238,892 due to police department salary increases and operations
and maintenance costs. In addition, several building improvements to the police facility were
completed in the current fiscal year.
Capital outlay increased by $4,466,152. This was mainly attributed to expenditures incurred for
construction, furnishings and collections for the Oro Valley Public Library.
General Fund Balance
The General Fund's fund balance decreased by$829,669. This decrease is primarily related to
revenues such as commercial and residential building permit fee collections and interest income
not meeting budgeted amounts.
Enterprise Operations
At June 30, 2002, retained earnings for the Oro Valley Water Utility increased by$2,130,080 for
a total of $5,924,687. Contributed capital totaled $5,437,330 including $2,526,007 in capital
improvements related to the Oro Valley Water Connection Fees Fund (development impact fees).
$2,911,323 was derived from line extension agreements with developers.
Net income for the fiscal year was $2,130,080. Total revenues of$8,991,956 exceeded budget
by $1,190,156 primarily related to water sales ($1,021,959), interest earnings ($43,815) and
miscellaneous service revenues ($124,382). Expenses were under budget by $121,586 due to
savings in personnel costs.
During the fiscal year 2001-02 the Town created a Storm Drainage Enterprise Fund to account
for the costs to operate, construct and finance the Town's storm drainage. The Storm Drainage
fund accounted for $34,683 of the total increase to the Enterprise funds increase in retained
earnings and net income. The Town received $52,500 from the E.P.A. for operating costs, of
which$17,817 went to costs for environmental studies.
Debt Administration At June 30, 2002, the Town had three Municipal Property Corporation
bonds, a certificate of participation, an excise tax revenue obligation, a water development fee
revenue obligation outstanding and a note payable.
Municipal Property Corporation Bonds Series 1996 issued for the acquisition of the Oro Valley
Water Utility had an outstanding principal balance of $26,572,858 net of any unamortized
discount. Municipal Property Corporation Bonds Series 1999 were issued for improvements to
the water utility and construction of the community development building and had outstanding
principal balances of$2,893,505 (net of unamortized discount) and$1,335,000,respectively.
In April 2001, the Town issued Municipal Property Corporation Bonds Series 2001 for water
system improvements and construction of the Oro Valley Public Library. Outstanding principal
balances at June 30, 2002 were $5,254,626 (net of unamortized discount) and $3,146,076,
respectively.
The Certificate of Participation Series 1996 for land acquisitions had an outstanding principal
balance of$4,340,000.
vi
In November 2000, the Town issued an Excise Tax Revenue Obligation Series 2000 for
acquisition of land from the Arizona State Land Department. Outstanding principal at June 30,
2002 was $2,460,000.
Water Development Fee Revenue Obligation Series 2000 were issued in November, 2000. These
bonds will be repaid with water system development impact fees. Outstanding principal at June
30, 2002 was $4,995,000 (net of the July 1, 2002 payment).
In November 2000, an advance was made from the General Fund to the Oro Valley Connection
Fees debt service fund for$330,729.
In November 2001, a note payable was executed between the City of Tucson and the Town in the
amount of $5,410,000 for the acquisition of Central Arizona Project (CAP) water rights.
Outstanding principal at June 30, 2002 was 4,869,000.
There were no outstanding capital leases at June 30, 2002.
Cash Management Policies and Practices 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 is available upon 24 hours notice. The LGIP
invests in U.S. Treasury Notes,U.S. Treasury Bilis and federally guaranteed insurance contracts.
The average interest rate for the fiscal year 2000/01 was 6.126% and 2.798% in fiscal year
2001/02. Investments held at LGIP earned $832,392 in interest revenue for the year ended June
30, 2002.
A debt service reserve fund was established in 1996 for the Municipal Property Corporation
(MPC) municipal water system acquisition bonds. In 1999, MPC revenue bonds were issued for
the construction of the community development building and for water system improvements and
a reserve fund was also established. In addition, a debt service reserve fund was established for
the bonds issued in 2000 for the excise tax revenue obligations and water development fee
revenue obligations. These reserve funds are maintained in trust accounts with Wells Fargo
Bank. 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 $320,285 for fiscal year
2001/2002.
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.
vii
The Town of Oro Valley is self-insured for unemployment compensation. Unemployment
reserves totaled $220,347 as of June 30, 2002 for the Town's 231 full-time, 27 part-time and 42
seasonal employees. The Town did not make an unemployment contribution in fiscal year
2001/2002.
Other Information
Independent Audit Arizona statutes require an annual audit by independent certified public
accountants. The firm of Cronstrom and Trbovich P.C., CPAs was retained by the Town to
perform the 2002 audit. In addition to meeting the requirements set forth in state statutes, the
audit was also designed to meet the requirements of the federal Single Audit Act of 1996 and the
related U.S. Office of Management and Budget's Circular A-133. Generally accepted auditing
standards and the standards set forth in the General Accounting Office's Government Auditing
Standards were used by the auditors in conducting the engagement. The auditor's report on the
general-purpose financial statements and combing and individual fund statements and schedules
is included in the Financial Section of this report. The auditor's reports on internal controls and
compliance with applicable laws and regulations can be found in a separately issued single audit
report.
Awards The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the Town for its Comprehensive Annual
Financial Report for the year ended June 30, 2001. In order to be awarded a Certificate of
Achievement, the Town published an easily readable and efficiently organized comprehensive
annual financial report. The report satisfied both generally accepted accounting principals 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.
Acknowledgements We would also like to extend our appreciation to the Mayor and Council
for their leadership and support. The preparation of this Comprehensive Annual Financial
Report was made possible by the dedicated work of the Finance Department staff. Each member
of the department has our sincere appreciation for the contributions made in the preparation of
this report.
Respectfully bmitted,
Chuck Sweet
Town Manager
a...it ; a-a/44,4,y_
David L. Andrews
Finance Director
viii
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Oro Valley,
Arizona
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2001
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 (CAFKs) achieve the highest
standards in government accounting
and financial reporting.
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TOWN OF ORO VALLEY, ARIZONA , )
ORGANIZATIONAL CHART
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fe Commissions rk Town Manager 11 Town Magistrate
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Development r Development Director
E Administrator
IAinsley Reeder
Parks & Recreation
Administrator
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Terry Vosler
P Building Administrator
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Planning &Zoning
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TOWN OF ORO VALLEY,ARIZONA
List of Principal Officials
ELECTED OFFICIALS
Mayor Paul Loomis
Vice-Mayor Richard Johnson
Council Member Paula Abbott
Council Member Barton Rochman
Council Member Werner S. Wolff
DEPARTMENT HEADS
Town Manager Chuck Sweet
Finance Director David L. Andrews
Town Clerk Kathryn E. Cuvelier
Town Attorney Dan Dudley
Magistrate George Dunscomb
Water Utility Director Alan Forrest
Human Resource Director Jeff Grant
Town Engineer Bill Jansen
Chief of Police Daniel G. Sharp
Community Development Director H. Brent Sinclair
xi
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FINANCIAL SECTION
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C}
0 CRONSTROM & TRBOVICH
CERTIFIED PUBLIC ACCOUNTANT
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and the Town Council of the
Town of Oro Valley, Arizona
We have audited the accompanying general-purpose financial statements of the Town of Oro
Valley, Arizona (Town), as of and for the year ended June 30, 2002, as listed in the table of
contents. These general-purpose financial statements are the responsibility of the Town's
management. Our responsibility is to express an opinion on these general-purpose financial
statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards 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 general-purpose financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the general-purpose financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall general-purpose financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all
material respects, the financial position of the Town of Oro Valley, Arizona as of June 30, 2002,
and the results of its operations and the cash flows of its proprietary fund types for the year then
ended in conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated
September 23, 2002 on our consideration of the Town's internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be read in conjunction with this report in considering the results of our
audit.
1
8706 EAST MANZANfTA DRIVE,SUITE 100 • SCOTTSDALE, ARIZONA 85258 • (480) 348-1102 • FAX (480) 348-1104
A PROFESSIONAL CORPORATION
Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements and schedules listed in the table of contents as supplementary information are
presented for purposes of additional analysis and are not a required part of the general-purpose
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the general-purpose financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general-purpose financial statements taken as a whole.
The other information included in this report, designated as the "Statistical Section" in the table
of contents, was not audited by us and, accordingly, we express no opinion on it.
dIkett/PT t;U(VW1Ck
Cronstrom& Trbovich, P.C.
September 23, 2002
2
General-Purpose Financial Statements
3
TOWN OF ORO VALLEY,ARIZONA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
AS OF JUNE 30,2002
Proprietary
Governmental Fund Types Fund Types
Special Debt Capital
General Revenue Service Projects Enterprise
Assets and Other Debits
Assets
Cash and investments $ 9,626,419 $ 2,878,469 $ 2,453,307 $15,844,403 $ 6,970,599
Restricted assets - - - - 3,570,508
Accounts receivable 169,359 10,515 - 55,000 1,258,674
Taxes receivable 675,512 - - - -
Intergovernmental receivable 433,733 290,436 - - -
Interest receivable 16,587 3,924 3,225 22,952 13,623
Due from other funds 1,246,948 222,904 - - -
Prepaid items 2,556 - - - -
Advances to other funds 330,729 - - - -
Deferred charges - - - - 964,570
Fixed assets(net;where applicable,
of accumulated depreciation) - - - - 39,823,473
Other Debits
Amount available in debt service fund - - - - -
Amount to be provided for retirement
of general long-term debt - - - - -
Total Assets And Other Debits $12,501,843 $ 3.406.248 $ 2,456,532 $15,922.355 $52,601,447
Liabilities,Equity and Other Credits
Liabilities
Accounts payable S 622,313 $ 54.863 $ - $ 735,633 $ 319,591
Accrued wages and benefits 416,847 14,892 - 5,969 17,833
Interest payable - - 171,713 - 905,804
Intergovernmental payable 12,610 - - - 253,374
Due to other funds 222,904 506,291 740,657 - -
Customer deposits 86,103 537,575 - - 74,858
Deferred revenue 243,338 2,954 - 73,243 -
Compensated absences payable 500,534 37,759 - - 43,298
Advances from other funds - - 330,729 - -
Note payable - - - - 4,869,000
Revenue bonds payable - - 420,000 - 34,720,989
Certificates of participation - - - - -
Total Liabilities 2.104,649 1,154,334 1,663,099 814,845 41,204,747
Equity and Other Credits
Investment in general fixed assets - - - - -
Contributed capital - - - - 5,437,330
Retained earnings
Unreserved - - - - 5,959,370
Fund balances
Reserved for preaid items 2,556 - - - -
Reserved for advances 330,729 - - - -
Unreserved,designated for
unemployment benefits 195,312 25,135 - - -
Unreserved,undesignated 9,868,597 2,226,779 793,433 15.107.510 -
Total Equity and Other Credits 10,397,194 2,251,914 793,433 15,107,510 11,396,700
Total Liabilities,Equity and Other Credits $ 12,501,843 $ 3,406,248 $ 2,456,532 $15,922.355 $52,601.447
The accompanying notes to financial statements are an integral part of this statement.
4
Account Groups
Totals
General General (Memorandum
Fixed Assets Long-term Debt Only)
S - S - 5 37,773,197
3,570,508
1,493,548
675,512
724,169
60,311
1,469,852
2,556
330,729
964,570
30,829,422 - 70,652,895
793,433 793,433
15,482,643 15,482,643
$30,829.422 S 16,276,076 5133.993,923
$ - S - $ 1,732,400
455,541
1,077,517
265,984
- - 1,469,852
698,536
319,535
581,591
330,729
4,869,000
11,936,076 47,077,065
4,340.000 4,340,000
16.276,076 63,217,750
30,829,422 - 30,829,422
5,437,330
5,959,370
- - 2,556
330,729
220,447
27,996.319
30.829.422 - 70,776,173
$30.829.422 $ 16,276.076 $133,993,923
The accompanying notes to fianacial statements are an integral part of this statement.
5
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6
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30,2002
Totals
Special Debt Capital (Memorandum
General Revenue Service Projects Only)
Revenues
Taxes $ 6,674,725 S - $ - $ - $ 6,674,725
Intergovernmental 7,097,629 2,946,263 - 2,947,562 12,991,454
Fines and forfeitures 203,385 112,954 - - 316,339
Licenses and permits 1,415,028 15,129 - - 1,430,157
Charges for services 503,314 46,126 - - 549,440
Special assessments - - 1,180,614 1,232,274 2,412,888
Interest 285,819 80,475 56,493 452,574 875,361
Other 88,795 28.238 - 33,411 150,444
Total Revenues 16,268,695 3,229,185 1,237.107 4,665.821 25,400,808
Expenditures
Current
General government 6,052,145 2,917 - - 6,055,062
Public safety 8,416,448 170,186 - - 8,586,634
Highways and streets - 3,144,676 - - 3,144,676
Culture and recreation 1,474,667 - - - 1,474,667
Capital outlay - - - 8,094,782 8,094,782
Debt service
Principal retirement - - 1,596,456 - 1,596,456
Interest and fiscal charges - - 932.124 - 932,124
Total Expenditures 15.943 260 3.317,779 2,528,580 8,094,782 29,884,401
Excess of revenues over(under)expenditures 325,435 (88,594) (1,291,473) (3,428,961) (4,483,593)
Other financing sources(uses)
Operating transfers in - - 1,155,104 - 1,155,104
Operating transfers out (1,155,104) - - - 11,155,104)
Total other financing sources(uses) (1.155,104) - 1,155,104 - -
Excess of revenues and other sources
over(under)expenditures and other uses (829,669) (88,594) (136,369) (3,428,961) (4,483,593)
Fund balance,beginning of year 11.226.863 2.340,508 929.802 18,536,471 33,033,644
Fund balance,end of year $ 10.397,194 $ 2,251.914 $ 793,433 $15,107,510 S 28,550,051
The accompanying notes to financial statements are an integral part of this statement.
7
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL-ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30,2002
General Special Revenue
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Taxes $ 6,150,000 $ 6,674,725 $ 524,725 $ - $ - $ -
Intergovernmental 7,194,270 7,097,629 (96,641) 3,212,574 2,946,263 (266,311)
Fines and forfeitures 220,000 203,385 (16,615) 50,000 112,954 62,954
Licenses and permits 2,240,000 1,415,028 (824,972) 28,000 15,129 (12,871)
Charges for services 357,425 503,314 145,889 43,000 46,126 3,126
Contributions and donations 500 - (500) - - -
Special assessments - - - - - -
Interest 385,000 285,819 (99,181) 44,000 59,419 15,419
Other 25,000 88,795 63,795 5,000 28,238 23.238
Total Revenues 16.572.195 16,268,695 (303,500) 3,382,574 3.208,129 (174,445)
Expenditures
Current
General government 14,776,240 6,052,145 8,724,095 4,851 2,907 1,944
Public safety 8,826,964 8,416,448 410,516 166,798 170,186 (3,388)
Highways and streets - - - 5,045,200 3,144,676 1,900,524
Culture and recreation 1,822,490 1,474,667 347,823 - - -
Capital Outlay - - - - - -
Debt service
Principal retirement - - - - - -
Interest and fiscal charges - - - - - -
Total Expenditures 25,425,694 15,943,260 9,482.434 5,216,849 3,317,769 1,899,080
Excess of revenues over(under)expenditures (8,853,499) 325,435 9,178,934 (1,834,275) (109.640) 1,724,635
Other financing sources(uses)
Operating transfers in - - - - - -
Operating transfers out (1,155.104) (1,155,104) - - - -
Total other financing sources(uses) (1,155,104) (1,155,104) - - - -
Excess of revenues and other sources
over(under)expenditures and other uses (10,008,603) (829,669) 9,178,934 (1,834,275) (109,640) 1,724,635
Fund balance,beginning of year 10,008.603 11,226.863 1,218,260 1,834,275 2,099,596 265,321
Fund balance,end of year S - $10.397.194 $10.397,194 $ - $ 1,989,956 $ 1,989,956
The accompanying notes to financial statements are an integral part of this statement.
8
Debt Service Capital Projects
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ - $ - S - $ - S - S -
- - - 6,011,012 2,947,562 (3,063,450)
1,342,000 1,180,614 (161,3 86) 1,613,000 1,232,274 (380,726)
50,000 56.493 6,493 335,000 452,574 117,574
- - - - 33.411 33,411
1.392,000 1,237.107 (154.893) 7,959,012 4,665,821 (3,293,191)
- - - 25,184,622 8,094,782 17,089,840
1,607,000 1,596,456 10,544 - - -
1,817,940 932,124 885.816 - - -
3.424,940 2,528.580 896,360 25,184,622 8,094,782 17,089,840
(2,032,940) (1,291,473) 741,467 (17,225,610) (3.428,961) 13.796 649
1,155,104 1,155,104 - - - -
1,155,104 1,155,104 - - - -
(877,836) (136,369) 741,467 (17,225,610) (3,428,961) 13,796,649
877,836 929.802 51,966 17,225,610 18.536 471 1.310.861
$ - $ 793.433 $ 793,433 $ - $ 15,107.510 $ 15,107,510
The accompanying notes to financial statements are an integral part of this statement.
9
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENSES AND CHANGES IN
RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30,2002
Enterprise
Operating revenues
Charges for sales and services $ 8,703,813
Total operating revenues 8,703,813
Operating expenses
Costs of sales and services 3,728,168
Depreciation 1.276,250
Total operating expenses 5,004,418
Operating income 3,699,395
Nonoperating revenues(expenses)
Intergovernmental 52,500
Interest revenue 278,813
Interest expense (1,813,602)
Issuance costs (61,673)
Other 9,330
Total nonoperating revenues(expenses) (1,534,632)
Net income 2,164,763
Retained earnings,beginning of year 3.794,607
Retained earnings,end of year $ 5,959,370
The accompanying notes to financial statements are an integral part of this statement.
10
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF CASH FLOWS-ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30,2002
Enterprise
INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities
Cash received from customers S 8,514,154
Cash payments to employees for services (1,348,609)
Cash payments to suppliers for goods/services (2,668,566)
Customer deposits received (19,872)
Intergovernmental revenue 52,500
Other nonoperating revenue 9,330
Net cash provided by operating activities 4,538,937
Cash flows from capital and related financing activities
Acquisition of capital assets (4,705,784)
Principal paid on note payable (541,000)
Principal paid on revenue bonds (868,544)
Interest paid on revenue bonds (1,767.442)
Net cash used for capital and related financing activities (7,882,770)
Cash flows from investing activities
Interest 308.026
Net cash provided by investing activities 308,026
Net decrease in cash and cash equivalents (3,035,807)
Cash and cash equivalents at beginning of year 13,576,914
Cash and cash equivalents at end of year S 10,541.107
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET
Cash and investments per the balance sheet $ 6,970,599
Restricted assets 3,570.508
Total S 10.541,107
(Continued)
The accompanying notes to financial statements are an integral part of this statement.
11
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF CASH FLOWS-ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30,2002
Enterprise
(Concluded)
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income $ 3,699,395
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation 1,276,250
Intergovernmental 52,500
Other nonoperating revenues 9,330
(Increase)decrease in operating assets
Accounts receivable (419,057)
Increase(decrease)in operating liabilities
Accounts payable (275,149)
Accrued payroll (23,640)
Intergovernmental payable 229,398
Compensated absences payable 9,782
Customer deposits (19,872)
Net cash provided by operating activities S 4,538,937
NON-CASH INVESTING,CAPITAL AND FINANCING ACTIVITIES
Bond issuance costs of$61,673 were amortized during the year. The Town also purchased$5,410,000 of
water rights through a note payable.
The accompanying notes to financial statements are an integral part of this statement.
12
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES
The general-purpose financial statements of the Town of Oro Valley, Arizona (Town)
conform to U.S. generally accepted accounting principles as applicable to governmental
units. The more significant of the Town's accounting policies are described below.
Reporting Entity - In evaluating how to define the Town, for financial reporting
purposes, management has identified one potential component unit. The decision to
include a potential component unit in the reporting entity has been made by applying
criteria set forth in U.S. generally accepted accounting principles. Generally,
component units are legally separate organizations for which the elected officials of the
primary government (i.e., the Town) are financially accountable. The primary
government is financially accountable for a potential component unit if it: appoints a
voting majority of the potential component unit's governing body; and, either is able to
impose its will on the potential component unit or there is a possibility of the potential
component unit to provide specific financial benefits to, or impose specific financial
burdens on the primary government. In addition, a primary government may be
financially accountable for a potential component unit even though the potential
component unit may have a separately elected governing board, a board appointed by
another government, or a jointly appointed board if the potential component unit is
fiscally dependent on the primary government (e.g., the primary government must
approve the potential component unit's budget, tax rates, etc.). Blended components,
although legally separate entities are, in substance, part of the Town's operations and so
data from these units are combined with data of the primary government.
Blended Component Unit:
Town of Oro Valley Municipal Property Corporation - The Town of Oro Valley
Municipal Property Corporation's (MPC) board of directors consists of three members
which are appointed by the Town of Oro Valley Town Council. The MPC, which is a
nonprofit 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 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 and 1999. The activity of the 1996
MPC is reported in the applicable water enterprise fund and the activity of the Series
1999 MPC is reported in the applicable water enterprise fund and governmental fund.
All related receivables and payables between the Town and the MPC have been
eliminated.
13
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
Fund Accounting - The accounts of the Town are organized on the basis of funds and
account groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-balancing accounts
that comprise its assets, liabilities, fund equity, revenues and expenditures, as
appropriate. Government resources are allocated to and accounted for in individual
funds based upon the purposes for which they are to be spent and the means by which
spending activities are controlled. The various funds are grouped, in the financial
statements in this report, into generic fund types and broad categories as follows:
Governmental Funds
General Fund - The General Fund is the general operating fund of the Town. It is used
to account for all financial resources except those required to be accounted for in
another fund.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds
of specific revenue sources (other than special assessments, expendable trusts, or major
capital projects)that are legally restricted to expenditures for specified purposes.
Debt Service Funds - The Debt Service Funds account for the accumulation of
resources for, and the payment of, general long-term debt principal, interest and related
costs.
Capital Projects Funds - The Capital Projects Funds are used to account for the
acquisition and construction of major capital facilities other than those financed by
proprietary funds and trust funds.
Proprietary Fund
Enterprise Funds - The Enterprise Funds are used to account for operations (a) that are
financed and operated in a manner similar to private business enterprises--where the
intent of the governing body is that the costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges; or (b) where the governing body has decided
that periodic determination of revenues earned, expenses incurred, and/or net income is
appropriate for capital maintenance, public policy, management control, accountability,
or other purposes.
14
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 1 - SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES(Cont'd)
Account Groups
General Fixed Assets - The General Fixed Assets Account Group accounts for the
fixed assets of the Town.
General Long-term Debt - The General Long-term Debt Account Group accounts for
the unmatured principal balances of bonds and other long-term debt not reported in
proprietary funds.
Measurement Focus - The accounting and financial reporting treatment applied to a
fund is determined by its measurement focus. All Governmental Funds are accounted
for using a current financial resources measurement focus. With this measurement
focus, only current assets and current liabilities generally are included on the balance
sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net
current assets.
Proprietary Funds are accounted for on a cost of services or "capital maintenance"
measurement focus. This means that all assets and all liabilities (whether current or
noncurrent) associated with the activity are included on their balance sheets. The
measurement focus is upon the determination of net income, financial position and
changes in financial position.
Basis of Accounting - Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the financial statements.
Governmental Funds are accounted for using the modified accrual basis of accounting.
Revenues are recognized when they become measurable and available to finance
expenditures of the current period. Expenditures are recognized when the related fund
liability is incurred, except for principal and interest on general long-term debt that are
recognized when due.
Those revenues susceptible to accrual are intergovernmental grants and appropriations,
franchise taxes, licenses, interest revenue and charges for services. Sales taxes
collected and held by the state at year end on behalf of the government also are
recognized as revenue. Fines, permits, and other revenues are not susceptible to accrual
because generally they are not measurable until received in cash.
15
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
Proprietary Funds are accounted for using the accrual basis of accounting. The Town
applies all applicable FASB pronouncements issued on or before November 30, 1989,
unless they conflict with GASB pronouncements. Their revenues are recognized when
they are earned, and their expenses are recognized when they are incurred. Interest on
bonds, proceeds of which are used in financing the construction of certain assets, is
capitalized during the construction period net of interest on the investment of
unexpended bond proceeds.
Budgetary Accounting - The Town Council follows these procedures in establishing
the budgetary data reflected in the financial statements:
1. In accordance with Arizona Revised Statutes, the Town Manager submits a
proposed budget for the fiscal year commencing the following July 1 to the Town
Council. The operating budget includes proposed expenditures and the means of
financing them for the upcoming year.
2. Public hearings are conducted to obtain taxpayer comment.
3. Prior to the second Monday in August, the expenditure limitation of the Town is
legally enacted through the adopting of the budget. To ensure compliance with
the expenditure limitation, a uniform expenditure report must be filed with the
State each year. This report, issued under a separate cover, reconciles total Town
expenditures from the audited general-purpose financial statements to total
expenditures for reporting in accordance with the State's uniform expenditure
reporting system (A.R.S. §41-1279.07).
4. Expenditures may not legally exceed the locally adopted expenditure limitation of
all fund types as a whole. The Town adopts a legal budget by department for the
General Fund and in total by fund for all funds for which a budget is adopted.
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.
5. Formal budgetary integration is employed as a management control device during
the year on the same modified accrual basis of accounting used to record actual
revenues and expenditures (see Note 12 for individual funds with no adopted
budgets).
The Town is subject to the State of Arizona's Home Rule Expenditure Limitation Law
for Towns and Cities. This law does not permit the Town to spend more than budgeted
revenues plus the carry-over unrestricted cash balance from the prior fiscal year. The
limitation is applied to the total of the combined funds. The Town complied with this
law during the year.
16
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 1 -SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES(Cont'd)
No supplementary budgetary appropriations were necessary during the year.
Encumbrances - Encumbrance accounting, under which purchase orders, contracts and
other commitments for the expenditure of monies are recorded to reserve that portion of
the applicable fund balance, is employed in the General, Special Revenue and Capital
Projects Funds. Encumbrances outstanding at year-end are reported as reservations of
fund balances since they do not constitute expenditures or liabilities.
All appropriations lapse at year-end.
Cash Equivalents - Cash equivalents consist of short-term, highly liquid investments
that are both (a) readily convertible to known amounts of cash; and (b) so near their
maturity that they present insignificant risk of changes in value because of changes in
interest rates. Generally, only investments with original maturities of three months or
less meet this definition.
Investments - Investments in securities are stated at fair value in accordance with
GASB Statement No. 31.
Prepaid items - Certain payments to vendors reflect costs applicable to future
accounting periods and are recorded as prepaid items. The costs are recorded as
expenditures in governmental fund-types when consumed rather than when purchased.
Interfund Receivables/Payables - During the course of operations, individual funds
within the District's pooled cash accounts may borrow money from other funds within
the pool on a short-term basis. These receivables and payables are classified as "due
from other funds" or "due to other funds" on the balance sheet. Long-term interfund
receivables and payables are classified as "advances to other funds" or "advances from
other funds" on the balance sheet.
Inventory of Supplies - Purchases of such inventory items are recorded at the time of
purchase as expenditures in the funds from which the purchases were made; and
because the amounts on hand at June 30, 2002, were immaterial, they are not included
in the balance sheet.
Restricted Assets - Certain proceeds of the Town's bonds, as well as certain resources
set aside for their repayment, are classified as restricted assets on the balance sheet
because their use is limited by applicable bond covenants. In addition, customer
deposits are also recorded as restricted assets.
17
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
Property, Plant and Equipment - Fixed assets used in governmental fund type
operations are accounted for in the General Fixed Assets Account Group. Public
domain (infrastructure) assets consisting of certain improvements other than buildings,
such as roads and sidewalks are not capitalized, as these assets are immovable and of
value only to the government. Property, plant and equipment acquired or constructed
for general governmental operations are recorded at the time of purchase as
expenditures in the funds from which the expenditures were made. Property, plant and
equipment is recorded at historical cost. Donated fixed assets are valued at their
estimated fair market value on the date donated.
Property, plant and equipment acquired for proprietary funds is capitalized in the
respective funds to which it applies.
Assets in the general fixed assets account group are not depreciated. Depreciation of
buildings, equipment and vehicles in the proprietary fund types is computed using the
straight-line method.
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The
amount of interest capitalized was calculated by offsetting interest expense incurred
from the date of the borrowing until completion of the project with interest earned on
invested proceeds over the same period.
Fund Equity - The unreserved fund balances for governmental funds represent the
amount available for budgeting future operations. The reserved fund balances for
governmental funds represent the amount that has been legally identified for specific
purposes. Designations of fund balance represent tentative management plans that are
subject to change. Unreserved retained earnings for proprietary funds represent the net
assets available for future operation or distribution.
Compensated Absences - The Town accrues vested or accumulated compensated
absences in governmental fund types for the amount expected to be liquidated with
expendable financial resources. Because all compensated absences of the governmental
fund types are expected to be liquidated with expendable financial resources, no
liability is recorded in the General Long-term Debt Account Group. Proprietary funds
accrue compensated absences in the period for which they are incurred.
Interfund Transactions - Quasi-external transactions are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for
expenditures/expenses initially made from it that are properly applicable to another
fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions
of expenditures/expenses in the fund that is reimbursed.
18
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Concl'd)
All other interfund transactions, except quasi-external transactions and reimbursements,
are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are
reported as residual equity transfers. All other interfund transfers are reported as
operating transfers.
Total Columns - Total columns on the combined financial statements are captioned
"Memorandum Only" to indicate they are presented only to facilitate financial analysis.
Data in these columns do not present financial position, results of operations or cash
flows in conformity with U.S. generally accepted accounting principles. Neither are
such data comparable to a consolidation. Interfund eliminations have not been made in
the aggregation of this data.
NOTE 2 - COMPLIANCE AND ACCOUNTABILITY
Expenditures exceeded the adopted budget in the following funds:
Amount of
Fund Overexpenditure
General Fund:
Town Clerk $ 4,016
Finance 1,965
Human Resources 8,994
Special Revenue Funds
Federal Seizures and Forfeitures 21,271
Capital Projects Funds
Library Construction 175,061
Cash was available to meet all of the overexpenditures listed above.
19
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 3 - CASH AND INVESTMENTS
State statutes authorize the Town to invest in obligations of the U.S. Treasury and U.S.
agencies, certificates of deposit in eligible depositories, repurchase agreements,
obligations of the State of Arizona or any of its counties or incorporated cities, towns or
duly organized school districts, improvement districts in this state and the State
Treasurer's Local Government Investment Pool.
Cash and investments at June 30, 2002 consist of the following:
Cash on hand $ 2,850
Cash in bank 11,446,929
Cash with the County Treasurer 185,416
State Treasurer's Investment Pool 29,708,510
Total cash and investments 41,343,705
Restricted assets (3,570,508)
Total cash and investments on the
combined balance sheet $ 37,773,197
The Town's deposits as of June 30, 2002 were entirely insured or collateralized with
securities held by the Town's custodial bank in the Town's name.
The Town's investments at June 30, 2002 consisted of shares in the State Treasurer's
investment pool. The State Board of Deposit provides oversight for the State
Treasurer's Pools, and the Local Government Investment Pool Advisory Committee
provides consultation and advice to the Treasurer. The full value of a participant's
position in the pool approximates the value of that participant's pool shares. The shares
are not identified with specific investments and are not subject to custodial credit risk.
Cash on Deposit with the County Treasurer is pooled and invested. Interest earned
from investments purchased with such pooled monies is allocated to each of the funds
based on the average monthly balance.
20
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 4-RESTRICTED ASSETS
Restricted assets in the Enterprise Fund at June 30, 2002 consisted of the following:
Enterprise Fund
Future debt service $ 2,287,940
Customer deposits 74,858
Construction accounts 1,207,710
$ 3,570,508
NOTE 5 - CHANGES IN GENERAL FIXED ASSETS
A summary of the changes in general fixed assets follows.
Balance Completed Balance
July 1,2001 Additions Deletions Construction June 30, 2002
Land and improvements $ 10,052,290 $ -0-$ -0- $ -0- $ 10,052,290
Buildings and
improvements 9,781,381 794,626 -0- -0- 10,576,007
Furniture and equipment 2,524,285 472,786 (66,632) -0- 2,930,439
Vehicles 2,420,930 491,621 (313,342) -0- 2,599,209
Construction in Progress 500,021 4,171,456 -0- -0- 4,671,477
Total $ 25,278,907 $ 5,930,489 $ (379,974) $ -0- $ 30,829,422
Estimated cost to complete construction in progress at June 30, 2002 was $1,235,000.
NOTE b-PROPRIETARY FUND FIXED ASSETS
The following is a summary of proprietary fund fixed assets at June 30, 2002:
Land $ 103,691
Water system 37,343,716
Equipment and vehicles 1,020,185
Water rights 6,172,361
Construction in progress 2,609,940
Less: accumulated depreciation (7,426,420)
Net fixed assets $ 39,823,473
21
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 6-PROPRIETARY FUND FIXED ASSETS(Conci'd)
The following estimated useful lives are used to compute depreciation:
Mains 50 years
Services 30 years
Hydrants 50 years
Water system 30 years
Buildings and improvements 20 years
Furniture, equipment and vehicles 5-10 years
The estimated cost to complete construction in progress at June 30, 2002 was
$4.3 million.
NOTE 7-NOTE PA YABLE
A note payable was entered into for
$5,410,000 with the City of Tucson for
water rights. Semiannual payments began
May 1, 2002 and range from $251,362 to
$541,000 plus interest at a rate of 6.5%. $ 4,869,000
Balance Balance
July 1, 2001 Increase Decrease June 30, 2002
$ -0- $ 5,410,000 $ (541,000) $4,869,000
Future debt service requirements including$1,661,550 of interest are as follows:
June 30,
2003 $ 795,473
2004 763,825
2005 732,176
2006 700,528
2007 668,879
Thereafter 2,869,669
$ 6,530,550
22
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 8-REVENUE BONDS PAYABLE
Revenue bonds payable at June 30, 2002 consisted of the outstanding revenue bonds
presented below. The bonds are callable with interest payable semiannually.
Principal and interest requirements at June 30, 2002 were as follows.
General Long-term Debt
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 2001 Retirements June 30. 2002
MPC, Excise Tax Revenue
Bonds, Series 1999
3.5%-4.5% 1/1/02-09 $ 1,485,000 $ (150,000) $ 1,335,000
Excise Tax Revenue
Bonds, Series 2000
4.4%-5.5% 7/1/01-20 2,580,000 (120,000) 2,460,000
Excise Tax Revenue
Bonds, Series 2002
3.25%-5.0% 7/1/01-20 3,362,532 (216,456) 3,146,076
Water Development
Fee Revenue Bonds,
Series 2000 6.1%-6.4% 7/1/01-08 6,770,000 (1,355,000) 5,415,000
$ 14,197,532 $ (1,841,456) 12,356,076
Less: Amounts transferred to Debt Service Fund
To retire bonds payable on July 1, 2002 (420,000)
$ 11,936,076
23
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 8-REVENUE BONDS PAYABLE(Conci'd)
Enterprise Funds
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 2001 Retirements June 30, 2002
MPC, Water
System Acquisition,
1996 4.25%-5.6% 7/1/01-26 $ 27,275,000 $ (375,000) $ 26,900,000
MPC, Excise Tax Revenue
Bonds, Series 1999
3.5%-5.0% 1/1/02-19 3,065,000 (130,000) 2,935,000
Excise Tax Revenue
Bonds, Series 2002
3.25%-5.0% 7/1/01/20 5,647A68 (363,544) 5,283,924
$ 35,987,468 $ (868,544) 35,118,924
Less: unamortized discount (397,935)
Total long-term bonds payable $ 34,720,989
Revenue bond debt service requirements to maturity, including $4,894,981 and
$27,895,658 of general long-term debt and enterprise fund interest, respectively, are as
follows:
General
Long-term Debt Enterprise
Year ending June 30:
2003 $ 985,365 $ 2,615,975
2004 1,591,626 2,647,559
2005 957,742 2,620,424
2006 957,080 2,645,468
2007 948,699 2,619,194
Thereafter 11,390,545 49,865,962
$ 16,831,057 $ 63,014,582
24
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 9- CERTIFICATES OF PARTICIPATION
Certificates of Participation payable at June 30, 2002 consisted of the amounts
presented below. They are callable with interest payable semiannually. Principal and
interest requirements at June 30, 2002, were as follows.
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 2001 Retirements June 30, 2002
Certificates of Participation,
Series 1996 4.625%-5.75% 7/1/01-2017 S 4,500,000 $ (160,000) S 4,340,000
Debt service requirements to maturity, including $2,273,847 of interest, are as follows:
Year ending June 30:
2003 $ 407,994
2004 409,350
2005 410,005
2006 414,881
2007 413,959
Thereafter 4,55 7,65 8
1.6,613,847
NOTE.10-INTERFUND RECEIVABLES AND PAYABLES
As of June 30, 2002, interfund receivables and payables that resulted from various
interfund transactions were as follows:
Due from Due to
Other Funds Other Funds
General Fund $ 1,246,948 $ 222,904
Special Revenue Funds:
HURF 222,904 -0-
Federal Seizures and Forfeitures -0- 72,140
Public Transportation -0- 434,151
Debt Service Funds:
Municipal Debt Service -0- 740,657
$ 1,469,852 $ 1,469,852
25
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 10-INTERFUND RECEIVABLES AND PAYABLES(Conci'd)
As of June 30, 2002, advances that resulted from the approval of a long-term loan to
the Debt Service O.V. Water Connection Fee Fund from the General Fund were as
follows:
Advances from Advances to
Other Funds Other Funds
General Fund $ -0- $ 330,729
Debt Service Funds:
O.V. Water Connection Fee Fund 330,729 -0-
$ 330,729 $ 330,729
NOTE 11 - CONTRIBUTED CAPITAL
During the year, contributed capital changed by the following amounts:
Enterprise
Fund
Contributed capital July 1, 2001 $ 2,933,990
Current year increases:
Developer contributions 2,516,648
Current year decreases:
Developer refund (13,308)
Contributed capital June 30, 2002 $ 5,437,330
26
TOWN OF ORO VALLEY, ARIZONA
• NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 12 -BUDGETARY BASIS OF ACCOUNTING
Budgets for the Industrial Development Authority and the Revegetation Assurances
Special Revenue Funds were not prepared. The following summary is useful to
reconcile the Combined Statement of Revenues, Expenditures and Changes in Fund
Balances to the Combined Statement of Revenues, Expenditures and Changes in Fund
Balances -Budget and Actual:
Special Revenue
Fund Balance
Total Total at Beginning
Revenues Expenditures of Year
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances $ 3,229,185 $ 3,317,779 S 2,340,508
Less: funds with no adopted budget (21,056) (10) (240,912)
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances -Budget and
Actual S 3,208,129 $ 3,317,769 $ 2,099,596
NOTE 13 - CONTINGENT LIABILITIES
Accumulated Sick Leave - Sick leave benefits provide for ordinary sick pay and are
cumulative but do not vest with employees unless an employee has exceeded 90 days
of accrued sick leave, then one-half of the sick leave balance in excess of 90 days is
paid upon termination. Unvested accumulated sick leave of Town employees at June
30, 2002, totaled $1,343,021.
NOTE 14 -RISK MANAGEMENT
The Town of Oro Valley is exposed to various risks of loss related to torts; theft of,
damage to and destruction of assets; errors and omissions; and natural disasters. The
Town's insurance protection is provided by the Arizona Municipal Risk Retention
Pool, of which the Town is a participating member. The limit for basic coverage is
for $2,000,000 per occurrence on a claims made basis. Excess coverage is for an
additional $10,000,000 per occurrence on a follow form, claims made basis. The
aggregate limit is also $10,000,000. No significant reduction in insurance coverage
occurred during the year and no settlements exceeded insurance coverage during any
of the past three fiscal years.
27
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED RJNE 30, 2002
NOTE 14 -RISK MANAGEMENT(Concl'd)
The Arizona Municipal Risk Retention Pool is structured such that member premiums
are based on an actuarial review that will provide adequate reserves to allow the pool
to meet its expected financial obligations. The pool has the authority to assess its
members additional premiums should reserves and annual premiums be insufficient to
meet the pool's obligations.
The Town is insured by Arizona Municipal Workers Compensation Pool for potential
worker related accidents. The Town is self-insured for unemployment insurance.
Changes in the balances of claims liabilities during the past two years are as follows:
Year Ended June 30,
2002 2001
Unpaid claims,beginning of year $ -0- $ -0-
Incurred claims (including IBNRs) 16,563 4,573
Claim payments (16,563) (4,573)
Unpaid claims, end of year $ -0- $ -0-
NOTE 15 -DEFINED CONTRIBUTION PENSION PLAN
All non-peace officers and certain part-time employees of the Town participate in a
defined contribution pension plan administered by the ICMA Retirement Corporation
as a 401(a) plan. The payroll for Town employees covered by this plan for the year
ended June 30, 2002 was $6,341,400. The Town's total payroll was $10,057,148.
A defined contribution pension plan provides benefits in return for services rendered,
provides an individual account for each participant, and specifies how contributions to
the individual's account are to be determined instead of specifying the amount of
benefit the individual is to receive. Under a defined contribution pension plan, the
benefits a participant will receive depend solely on the amount contributed to the
participant's account, the returns earned on investments of those contributions, and
forfeitures of other participants' benefits that may be allocated to such participant's
account. All non-peace officer full-time Town employees must participate in the
pension plan six months from the date they are hired. Contributions made by an
employee vest immediately and contributions made by the Town vest after one year of
service.
28
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 15-DEFINED CONTRIBUTION PENSION PLAN(Conci'd)
An employee that leaves the employment of the Town is entitled to his or her
contributions and the vested portion of the Town's contributions, plus interest earned.
Each employee must contribute 5.0% of his or her gross earnings. The Town must
contribute 7.0% of covered earnings. During fiscal year 2001-02 the required and
actual contributions amounted to $443,898. The employees' contributions totaled
$318,369.
No pension provision changes occurred during the year that affected the required
contributions to be made by the Town or its employees.
The ICMA Retirement Corporation held no securities of the Town or other related
parties during the fiscal year 2001-02 or as of the close of the fiscal year.
NOTE 16-RETIREMENT AND PENSION PLANS
Public Safety Personnel Retirement System (PSPRS)
Plan Description - The Town contributes to the Public Safety Personnel Retirement
System (PSPRS), an agent multiple-employer, public employee retirement system that
acts as a common investment and administrative agent to provide retirement and
death and disability benefits for public safety personnel who are regularly assigned
hazardous duty in the employ of the State of Arizona or a political subdivision
thereof. All benefit provisions and other requirements are established by State statute.
The Public Safety Personnel Retirement System issues a publicly available financial
report that includes financial statements and required supplementary information for
PSPRS. That report may be obtained by writing to Public Safety Personnel, 1020 E.
Missouri Ave.,Phoenix, AZ 85014 or by calling(602)255-5575.
Funding Policy L Covered employees are required to contribute 7.65 percent of their
annual salary to the PSPRS. The Town is required to contribute the remaining
amounts necessary to fund the PSPRS, as determined by the actuarial basis specified
by statute. The current rate is 7.48% of annual covered payroll.
29
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2002
NOTE 16-RETIREMENT AND PENSION PLANS(Conci'd)
Annual Pension Cost - During the year ended June 30, 2001 (the date of the last
available information), the Town's annual pension cost of $331,950 for police was
equal to the Town's required and actual contributions.
The required contribution was determined as part of the June 30, 2001 actuarial
valuation using an entry age actuarial funding method. Significant actuarial
assumptions used in determining the entry age actuarial accrued liability include (a) a
rate of return on the investment of present and future assets of 9% per year
compounded annually, (b) projected salary increases of 6.5% per year compounded
annually, and (c) additional projected salary increases of 0.0% to 3% per year
attributable to seniority/merit.
The actuarial value of the Town's assets was determined using techniques that smooth
the effects of short-term volatility in the market value of investments over a four-year
period. The Town's unfunded actuarial accrued liability is being amortized as a level
percentage of projected payroll on a closed basis. The remaining amortization period
at June 30,2001,was 20 years.
The preceding methods comply with the financial reporting standards established by
the Governmental Accounting Standards Board.
Three-Year Trend Information
Police
Fiscal Annual
Year Ended Pension Percent Net Pension
June 30, Cost(APC) Contributed Obligation
1999 $ 174,091 100% $ -0-
2000 186,368 100 -0-
2001 331,950 100 -0-
Additional historical trend information for the Town's PSPRS is disclosed on page 32.
Historical trend information is presented in order for a reader to assess the progress
made in accumulating sufficient assets to pay pension benefits as they become
payable.
30
REQUIRED SUPPLEMENTARY INFORMATION
31
TOWN OF ORO VALLEY, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM
ANALYSIS OF FUNDING PROGRESS
Schedule of Funding Progress
Police
Entry Age Unfunded AAL
Valuation Actuarial Actuarial (Overfunded) Annual as a Percentage
Date Value of Accrued Unfunded Funded Covered of Covered
June 30, Assets Liability(AAL) AAL Ratio Payroll Payroll
1996 $ 1,591,318 $ 2,121,636 $ 530,318 75.0% $ 1,440,638 36.8%
1997 2,239,319 2,614,221 374,902 85.7 1,682,582 22.3
1998 2,772,586 3,067,826 295,240 90.4 1,890,076 15.6
1999 3,623,182 3,956,207 333,025 91.6 2,143,829 15.5
2000 4,583,291 4,862,212 278,921 94.3 2,493,062 11.2
2001 5,766,661 5,168,557 (598,104) 111.6 2,948,683 -
r
)
l .
)
)
)
)
)
32
)
Combining, individual Fund and Account Group
Statements and Schedules
33
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)
)
{
)
)
)
)
34
GENERAL FUND
The General Fund is the general operating fund of the Town. It is used to account for all
financial resources except those required to be accounted for in another fund.
35
TOWN OF ORO VALLEY,ARIZONA
GENERAL FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $ 6,150,000 $ 6,674,725 $ 524,725
Intergovernmental 7,194,270 7,097,629 (96,641)
Fines and forfeitures 220,000 203,385 (16,615)
Licenses and permits 2,240,000 1,415,028 (824,972)
Charges for services 357,425 5 03,314 145,889
Contributions and donations 500 - (500)
Interest 385,000 285,819 (99,181)
Other 25,000 88,795 63.795
Total Revenues 16,572,195 16,268,695 (303,500)
Expenditures
Current
General government
Town Council 126,408 122,827 3,581
Town Clerk 321,084 325,100 (4,016)
Magistrate Court 489,081 457,740 31,341
Town Manager 284,953 253,142 31,811
Finance 438,030 439,995 (1,965)
Legal 603,884 519,089 84,795
Planning and Zoning 1,117,888 1,027,297 90,591
General Administration 9,147,352 845,783 8,301,569
Custodial Facility Maintenance 146,475 140,479 5,996
Economic Development 706,992 563,812 143,180
Community Development Administration 436,496 417,990 18,506
Human Resources 210,374 219,368 (8,994)
Information Systems 426,122 416,361 9,761
Public Works 321,101 303,162 17,939
Total General government 14 776 240 6,052,145 8,724,095
Public safety
Police 7,591,863 7,490,166 101,697
Building safety 1,235,101 926.282 308,819
Total Public safety 8,826,964 8,416,448 410,516
Culture and recreation
Parks and Recreation 1,462,432 1,368,678 93,754
Library 360,058 105,989 254 069
Total Culture and recreation 1,822,490 1,474,667 347,823
Total Expenditures 25,425,694 15,9433260 9,482,434
Excess of revenues over(under)expenditures (8,853,499) 325,435 9,178,934
Other financing sources(uses)
Operating transfers out (1.155,104) (1,155,104) -
Total other financing sources(uses) (1.155,104) (1,155,104) -
Excess of revenues and other sources
over(under)expenditures and other uses (10,008,603) (829,669) 9,178,934
Fund balance,beginning of year 10,008,603 11,226,863 1,218,260
Fund balance,end of year S - $10,397,194 8.10.397 194
36
SPECIAL REVENUE FUNDS
Highway User Revenue Fund (HURF) - accounts for the Town's share of motor fuel tax
revenues.
Industrial Development Authority - accounts for the industrial development activities of the
Town.
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.
Public Transportation - accounts for the operation of the Town's public transportation system.
37
TOWN OF ORO VALLEY,ARIZONA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2002
Industrial State Federal
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Assets
Cash and investments $ 1,352,973 $ 206 $ 798,083 $ 50,622 $ 134,950 $ 541,635 $ 2,878,469
Accounts receivable 10,515 - - - - - 10,515
Intergovernmental receivable 200,561 - - 575 17,054 72,246 290,436
Interest receivable 2,511 - 1,244 1 - 168 3,924
Due from other funds 222,904 - - - - - 222,904
Total Assets $ 1.789,464 $ 206 $ 799,327 $ 51,198 $ 152,004 $ 614,049 $ 3.406 248
Liabilities and Fund Balance
Liabilities
Accounts payable $ 38,106 $ - $ - $ 457 $ 5,519 $ 10,781 $ 54,863
Accrued wages and benefits 7,481 - - - 2,573 4,838 14,892
Due to other funds - - - - 72,140 434,151 506,291
Customer deposits - - 537,575 - - - 537,575
Deferred revenue 2,454 - - 500 - - 2,954
Compensated absences payable 29,654 - - - 1,453 6,652 37.759
Total Liabilities 77.695 - 537,575 957 81,685 456,422 1.154,334
Fund balances
Unreserved,designated
for unemployment 23,056 - - - - 2,079 25,135
Unreserved,undesignated 1,688,713 206 261,752 50,241 70,319 155,548 2.226.779
Total Fund Balance 1.711 769 206 261,752 50,241 70,319 157,627 2.251,914
Total Liabilities and Fund Balance $ 1.789,464 $ 206 $ 799,327 $ 51,198 $ 152,004 $ 614,049 $ 3,406,248
38
TOWN OF ORO VALLEY,ARIZONA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2002
Industrial State Federal
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Revenues
Intergovernmental S 2,623,927 S - S - S - S - S 322,336 S 2,946,263
Fines and forfeitures - - - 31,290 81,664 - 112,954
Licenses and permits 15,129 - - - - - 15,129
Charges for services 13,646 - - - - 32,280 46,126
Interest 49,852 5 21,051 536 1,062 7,969 80,475
Other 25.140 - - - - 3,098 28.238
Total Revenues 2.727,894 5 21.051 31,826 82,726 365,683 3.229,185
Expenditures
Current
General government - 10 - 2,907 - - 2,917
Public safety - - - 239 169,947 - 170,186
Highways and streets 2,696,066 - - - - 448,610 3,144,676
Total Expenditures 2,696,066 10 - 3,146 169.947 448,610 3,317,779
Excess of revenues over(under)
expenditures 31,828 (5) 21,051 28,680 (87,221) (82,927) (88,594)
Fund balance,beginning of year 1,679,941 211 240,701 21,561 157,540 240,554 2.340 508
Fund balance,end of year S 1,711,769 $ 206 5 261,752 S 50,241 S 70.319 $ 157,627 $ 2,251 914
39
TOWN OF ORO VALLEY,ARIZONA
HURF FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 2,821,000 $ 2,623,927 $ (197,073)
Licenses and permits 28,000 15,129 (12,871)
Charges for services 20,000 13,846 (6,154)
Interest 40,000 49,852 9,852
Other 5,000 25,140 20,140
Total Revenues 2,914,000 2,727,894 (186,106)
Expenditures
Current
Highways and streets 4,398,394 2,696,066 1,702,328
Total Expenditures 4,398.394 2,696,066 1,702,328
Excess of revenues over(under)expenditures (1,484,394) 31,828 1,516,222
Fund balance,beginning of year 1,484,394 1,679,941 195,547
Fund balance,end of year $ - $ 1,711,769 $ 1,711,769
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40
TOWN OF ORO VALLEY,ARIZONA
STATE SEIZURES AND FORFEITURES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 5,000 $ 31,290 S 26,290
Interest - 536 536
Total Revenues 5,000 3L826 26,826
Expenditures
Current
General government 4,851 2,907 1,944
Public safety 18,122 239 17,883
Total Expenditures 22,973 3,146 19,827
Excess of revenues over(under)expenditures (17,973) 28,680 46,653
Fund balance,beginning of year 17,973 21,561 3,588
Fund balance,end of year S - $ 50,241 S 50,241
41
TOWN OF ORO VALLEY,ARIZONA
FEDERAL SEIZURES AND FORFEITURES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 45,000 $ 81,664 $ 36,664
Interest - 1,062 1,062
Total Revenues 45,000 82,726 37,726
Expenditures
Current
Public safety 148,676 169,947 (21,271)
Total Expenditures 148,676 169,947 (21,271)
Excess of revenues over(under)expenditures (103,676) (87,221) 16,455
Fund balance,beginning of year 103,676 157,540 53,864
Fund balance,end of year $ - $ 70,319 $ 70,319
42
TOWN OF ORO VALLEY,ARIZONA
PUBLIC TRANSPORTATION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental S 391,574 $ 322,336 S (69,238)
Charges for services 23,000 32,280 9,280
Interest 4,000 7,969 3,969
Other - 3,098 3.098
Total Revenues 418.574 365.683 (52.891)
Expenditures
Current
Highways and streets 646.806 448,610 198,196
Total Expenditures 646.806 448,610 198.196
Excess of revenues over(under)expenditures (228,232) (82,927) 145,305
Fund balance,beginning of year 228,232 240,554 12.322
Fund balance,end of year S - $ 157.627 S 15;',627
43
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44
DEBT SERVICE FUNDS
Municipal Debt Service - accounts for the payment of debt service on the 1996 Certificates of
Participation and the 1999 Municipal Property Corporation Excise Tax Revenue Bonds.
Oro Valley Water Connection Fee Debt Service - accounts for the payment of debt service on the
Water Development Fee Revenue Bond, Series 2000.
45
TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2002
Oro Valley Water
Municipal Connection Fee
Debt Service Debt Service Totals
Assets
Cash and investments $ 910,297 $ 1,543,010 $ 2,453,307
Interest receivable 819 2,406 3,225
Total Assets $ 911,116 $ 1,545,416 $ 2,456,532
Liabilities and Fund Balance
Liabilities
Interest payable $ - $ 171,713 $ 171,713
Due to other funds 740,657 - 740,657
Advances from other funds - 330,729 330,729
Revenue bonds payable - 420,000 420.000
Total Liabilities 740,657 922,442 1,663,099
Fund balances
Unreserved,undesignated 170,459 622,974 793,433
Total Fund Balance 170,459 622.974 793,433
Total Liabilities and Fund Balance $ 911,116 S 1,545,416 $ 2,456,532
46
TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2002
Oro Valley Water
Municipal Connection Fee
Debt Service Debt Service Totals
Revenues
Special assessments S - $ 1,180,614 S 1,180,614
Interest 28.578 27.915 56,493
Total Revenues 28,578 1,208.529 1,237,107
Expenditures
Debt service
Principal retirement 646,456 950,000 1,596,456
Interest and fiscal charges 572,534 359.590 932,124
Total Expenditures 1,218.990 1.309,590 2.528,580
Excess of revenues over(under)expenditures (1,190,412) (101,061) (1,291,473)
Other financing sources(uses)
Operating transfers in 1.155,104 - 1,155,104
Total other financing sources(uses) 1,155,104 - 1,155,104
Excess of revenues and other sources
over(under)expenditures and other uses (35,308) (101,061) (136,369)
Fund balance,beginning of year 205,767 724,035 929,802
Fund balance,end of year $ 170.459 S 672,974 S 793.433
47
TOWN OF ORO VALLEY,ARIZONA
MUNICIPAL DEBT SERVICE FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Interest S 20,000 $ 28,578 $ 8,578
Total Revenues 20,000 28,578 8,578
Expenditures
Debt service
Principal retirement 657,000 646,456 10,544
Interest and fiscal charges 718,940 572,534 146,406
Total Expenditures 1,375,940 1,218,990 156,950
Excess of revenues over(under)expenditures (1,355,940) (1,190Al2) 165,528
Other financing sources(uses)
Operating transfers in 1,155,104 1,155,104 -
Total other financing sources(uses) 1,155,104 1,155,104 -
Excess of revenues and other sources
over(under)expenditures and other uses (200,836) (35,308) 165,528
Fund balance,beginning of year 200,836 205,767 4,931
Fund balance,end of year S - $ 170,459 $ 170A59
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48
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER CONNECTION FEE DEBT SERVICE FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments S 1,342,000 $ 1,180,614 $ (161,386)
Interest 30,000 27,915 (2,085)
Total Revenues 1,372,000 1,208,529 (163,471)
Expenditures
Debt service
Principal retirement 950,000 950,000 -
Interest and fiscal charges L099,000 359,590 739,410
Total Expenditures 2,049,000 1,309,590 739.410
Excess of revenues over(under)expenditures (677,000) (101,061) 575,939
Fund balance,beginning of year 677,000 724,035 47,035
Fund balance,end of year $ - $ 622,974 $ 622,974
49
CAPITAL PROJECTS FUNDS
Alternative Water Resources - accounts for the collection and capital expenditures of the
Alternative Water Resources Development Impact Fees.
Oro Valley Connection Fees - accounts for the collection and capital expenditures of the Oro
Valley Water Development Impact Fees.
Library Construction - accounts for the collection and capital expenditures of the Oro Valley
Library.
Townwide Roadway Development Impact Fees - accounts for the collection and capital
expenditures of the Townwide Roadway Development Impact Fees.
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50
TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2002
Townwide
Alternative Oro Valley Roadway
Water Connection Library Development
Resources Fees Construction Impact Fees Totals
Assets
Cash and investments $ 1,5 81,364 S 5,801,014 $ 714,139 $ 7,747,886 S 15,844,403
Accounts receivable - - 20,000 35,000 55,000
Interest receivable 2.466 7.343 1.113 12,030 22,952
Total Assets $ 1.583.830 $ 5,808.357 S 735.252 $ 7,794.916 S 15,922,355
Liabilities and Fund Balance
Liabilities
Accounts payable $ 51,960 $ 134,711 $ 137,927 S 411,035 $ 735,633
Accrued wages and benefits - - - 5,969 5,969
Deferred revenue - - - 73,243 73,243
Total Liabilities 51,960 134,711 137,927 490,247 814.845
Fund balances
Unreserved,undesignated 1.531 870 5,673,646 597,325 7,304,669 15,107,510
Total Fund Balance 1,531.870 5.673,646 597,325 7,304.669 15,107,510
Total Liabilities and Fund Balance $ 1,583,830 $ 5.808,357 $ 735,252 S 7,794,916 S 15,922.355
51
TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2002
Townwide
Alternative Oro Valley Roadway
Water Connection Library Development
Resources Fees Construction Impact Fees Totals
Revenues
Intergovernmental $ - S - $ 1,688,192 $ 1,259,370 $ 2,947,562
Special assessments 194,099 4,772 - 1,033,403 1,232,274
Interest 43,805 147,998 49,975 210,796 452,574
Other - - 5,480 27,931 33,411
Total Revenues 237,904 152,770 1,743,647 2,531,500 4,665,821
Expenditures
Capital outlay 300,962 1,582,820 4.207,432 2,003,568 8,094,782
Total Expenditures 300,962 1,582,820 4,207,432 2,003,568 8,094,782
Excess of revenues over(under)
expenditures (63,058) (1,430,050) (2,463,785) 527,932 (3,428,961)
Fund balance,beginning of year 1,594,928 7,103.696 3,061,110 6,776,737 18,536,471
Fund balance,end of year $ 1,531 870 S 5.673.646 $ 597.325 S 7,304,669 $15,107.510
52
TOWN OF ORO VALLEY,ARIZONA
ALTERNATIVE WATER RESOURCES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments S 210,000 S 194,099 S (15,901)
Interest 75,000 43,805 (31,195)
Total Revenues 285.000 237,904 (47,096)
Expenditures
Capital outlay 1,847,143 300,962 1,546.181
Total Expenditures 1.847.143 300.962 1,546,181
Excess of revenues over(under)expenditures (1,562,143) (63,058) 1,499,085
Fund balance,beginning of year 1,562,143 1,594,928 32,785
Fund balance,end of year S - S 1,531,870 $ 1,531,870
53
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER CONNECTION FEES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments S - $ 4,772 $ 4,772
Interest 50.000 147,998 97,998
Total Revenues 50.000 152,770 . 102,770
Expenditures
Capital outlay 6,669,618 1,582,820 5,086,798
Total Expenditures 6,669,618 1,582,820 5,086.798
Excess of revenues over(under)expenditures (6,619,618) (1,430,050) 5,189,568
Fund balance,beginning of year 6,619,618 7.103,696 484,078
Fund balance,end of year S - $ 5,673,646 $ 5,673.646
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54
TOWN OF ORO VALLEY,ARIZONA
LIBRARY CONSTRUCTION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental S 2,000,000 S 1,688,192 $ (311,808)
Interest 50,000 49,975 (25)
Other - 5.480 5,480
Total Revenues 2,050,000 1.743,647 (306,353)
Expenditures
Capital outlay 4,032,371 4,207,432 (175,061)
Total Expenditures 4,032,371 4,207.432 (175,061)
Excess of revenues over(under)expenditures (1,982,371) (2,463,785) (481,414)
Fund balance,beginning of year 1,982,371 3,061.110 1,078,739
Fund balance,end of year S - S 597,325 $ 597,325
55
TOWN OF ORO VALLEY,ARIZONA
TOWNWIDE ROADWAY DEVELOPMENT IMPACT FEES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2002
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 4,011,012 $ 1,259,370 $ (2,751,642)
Special assessments 1,403,000 1,033,403 (369,597)
Interest 160,000 210,796 50,796
Other - 27,931 27,931
Total Revenues 5.574,012 2,531,500 (3.042,512)
Expenditures
Capital outlay 12,635,490 2,003.568 10,631.922
Total Expenditures 12,635,490 2,003,568 10,631,922
Excess of revenues over(under)expenditures (7,061,478) 527,932 7,589,410
Fund balance,beginning of year 7,061,478 6,776,737 (284,741)
Fund balance,end of year S - $ 7,304,669 $ 7,304.669
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ENTERPRISE FUNDS
Water—accounts for the costs to operate, construct and finance the Town's water system.
Stormwater Drainage—accounts for the costs to operate, construct and finance the Town's storm
drainage. In addition, it accounts for the cost to educate the public relating to storm drainage
water as required by the E.P.A.
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TOWN OF ORO VALLEY,ARIZONA
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2002
Stormwater
Water Drainage
Fund Fund Totals
Assets
Cash and investments $ 6,935,916 S 34,683 $ 6,970,599
Restricted assets 3,570,508 - 3,570,508
Accounts receivable 1,258,674 - 1,258,674
Interest receivable 13,623 - 13,623
Deferred charges 964,570 - 964,570
Fixed assets(net of accumulated depreciation) 39,823,473 - 39.823,473
Total Assets $52,566,764 S 34.683 $52,601,447
Liabilities and Fund Equity
Liabilities
Accounts payable $ 319,591 S - $ 319,591
Accrued wages and benefits 17,833 - 17,833
Interest payable 905,804 - 905,804
Intergovernmental payable 253,374 - 253,374
Customer deposits 74,858 - 74,858
Compensated absences payable 43,298 - 43,298
Note payable 4,869,000 - 4,869,000
Revenue bonds payable 34,720,989 - 34,720,989
Total Liabilities 41,204,747 - 41.204,747
Fund Equity
Contributed capital 5,437,330 - 5,437,330
Retained earnings
Unreserved 5,924,687 34,683 5,959,370
Total Fund Equity 11,362,017 34,683 11.396,700
Total Liabilities and Fund Equity $52,566,764 $ 34,683 $52,601,447
58
TOWN OF ORO VALLEY,ARIZONA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENSES AND CHANGES IN RETAINED EARNINGS
YEAR ENDED JUNE 30,2002
Stormwater
Water Drainage
Fund Fund Totals
Operating revenues
Charges for sales and services S 8,703.813 S - S 8,703,813
Total operating revenues 8,703,813 - 8.703.813
Operating expenses
Costs of sales and services 3,710,351 17,817 3,728,168
Depreciation 1,276,250 - 1,276,250
Total operating expenses 4,986,601 17.817 5.004,418
Operating income(loss) 3,717,212 (17,817) 3,699,395
Nonoperating revenues(expenses)
Intergovernmental - 52,500 52,500
Interest revenue 278,813 - 278,813
Interest expense (1,813,602) - (1,813,602)
Issuance costs (61,673) - (61,673)
Other 9,330 - 9.330
Total nonoperating revenues(expenses) (1.587,132) 52.500 (1,534,632)
Net income 2,130,080 34,683 2,164,763
Retained earnings,beginning of year 3,794,607 - 3,794.607
Retained earnings,end of year S 5,924,687 S 34,683 S 5,959.370
59
TOWN OF ORO VALLEY, ARIZONA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,2002
Stormwater
Water Drainage
Fund Fund Totals
INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities
Cash received from customers $ 8,514,154 $ - $ 8,514,154
Cash payments to employees for services (1,348,609) - (1,348,609)
Cash payments to suppliers for goods/services (2,650,749) (17,817) (2,668,566)
Customer deposits received (19,872) - (19,872)
Intergovernmental revenue - 52,500 52,500
Other nonoperating revenues 9.330 - 9,330
Net cash provided by operating activities 4,504.254 34,683 4.538,937
Cash flows from capital and related financing activities
Acquisition of capital assets (4,705,784) - (4,705,784)
Principal paid on note payable (541,000) - (541,000)
Principal paid on revenue bonds (868,544) - (868,544)
Interest paid on revenue bonds (1,767.442) - (1,767.442)
Net cash used for capital and related financing activities (7,882,770) - (7,882,770)
Cash flows from investing activities
Interest 308,026 - 308,026
Net cash provided by investing activities 308.026 - 308,026
Net increase(decrease)in cash and cash equivalents (3,070,490) 34,683 (3,035,807)
Cash and cash equivalents at beginning of year 13,576,914 - 13,576,914
Cash and cash equivalents at end of year $10.506,424 $ 34,683 S 10,541,107
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET
Cash and investments per the balance sheet $ 6,935,916 $ 34,683 $ 6,970,599
Restricted assets 3,570,508 - 3.570,508
Total S 10,506,424 5 34,683 S 10,541,107
(Continued)
60
TOWN OF ORO VALLEY,ARIZONA
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,2002
Stormwater
Water Drainage
Fund Fund Totals
(Concluded)
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income(loss) S 3,717,212 S (17,817) S 3,699,395
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation 1,276,250 - 1,276,250
Intergovernmental - 52,500 52,500
Other nonoperating revenues 9,330 - 9,330
(Increase)decrease in operating assets
Accounts receivable (419,057) - (419,057)
Increase(decrease)in operating liabilities
Accounts payable (275,149) - (275,149)
Accrued payroll (23,640) - (23,640)
Intergovernmental payable 229,398 - 229,398
Compensated absences payable 9,782 - 9,782
Customer deposits (19,872) - (19.872)
Net cash provided by operating activities S 4,504.254 $ 34,683 S 4.53 8.937
NON-CASH INVESTING,CAPITAL AND FINANCING ACTVITIES
Bond issuance costs of$61,673 were amortized during the year. The Town also purchased$5,410,000 of water rights through a note payable.
61
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GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets consist of land and improvements, buildings and improvements, equipment
and vehicles. These assets represent a major investment of Town funds. Adequate control and
accountability of general fixed assets are essential to the protective custody of Town property.
63
TOWN OF ORO VALLEY,ARIZONA
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE
JUNE 30,2002 AND 2001
2002 2001
GENERAL FIXED ASSETS
Land and improvements S 10,052,290 S 10,052,290
Buildings and improvements 10,576,007 9,781,3 81
Furniture and equipment 2,930,439 2,524,285
Vehicles 2,599,209 2,420,930
Construction in progress 4,671,477 500.021
Total $30,829,422 $25,278,907
INVESTMENT IN GENERAL FIXED
ASSETS BY SOURCE
General Fund S 10,883,914 $ 9,983,665
Special Revenue Funds 1,893,546 1,573,131
Capital Projects Funds 16,205,515 11,875,664
Donated Assets 1,846,447 1,846.447
Total S 30.829,422 S 25.278,907
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64
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
AS OF JUNE 30,2002
Buildings Furniture Construction
Land and and and in
Improvements Improvements Equipment Vehicles Progress Total
FUNCTION AND ACTIVITY
General government S 8,921,582 S 4,031,289 $ 1,086,091 5 161.783 $ 4,671,477 S 18,872,222
Public safety - 1,576,255 997,345 1,470,660 - 4,044,260
Public works 355,708 56,852 569,962 570,928 - 1,553,450
Culture and recreation 775,000 4,911,611 274,674 87,074 - 6,048,359
Public Transportation - - 2,367 308,764 - 311,131
Total $ 10.052,290 S 10.576.007 S 2,9 30,439 S 2.599.209 S 4.671,477 S 30,829,422
65
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED JUNE 30,2002
General Fixed General Fixed
Assets Completed Assets
July 1,2001 Additions Deletions Construction Adjustments June 30,2002
FUNCTION AND ACTIVITY
Land and Improvements
General government $ 8,921,582 S - S - $ - S - S 8,921,582
Public works 355,708 - - - - 355,708
Culture and recreation 775,000 - - - - 775,000
Total Land and Improvements 10,052290 - - - - 10.052 290
Buildings and Improvements
General government 3,689,638 344,626 - - (2,975) 4,031,289
Public safety 1,160,844 412,436 - - 2,975 1,576,255
Public works 56,852 - - - - 56,852
Culture and recreation 4,874,047 37.564 - - - 4,911,611
Total Buildings and Improvements 9.781.381 794,626 - - - 10,576.007
Furniture and Equipment
General government 955,041 169,285 (38,235) - - 1,086,091
Public safety 833,900 170,736 (7,291) - - 997,345
Public works 479,316 96,265 (5,619) - - 569,962
Culture and recreation 253,980 34,133 (13,439) - - 274,674
Public transportation 2,048 2,367 (2,048) - - 2,367
Total Furniture and Equipment 2,524,285 47 2,786 (66.632) - - 2,930,439
Vehicles
General government 133,318 28,465 - - - 161,783
Public safety 1,517,160 266,842 (313,342) - - 1,470,660
Public works 513,826 57,102 - - - 570,928
Culture and recreation 87,074 - - - - 87,074
Public transportation 169.552 139,212 - - - 308,764
Total Vehicles 2,420.930 491,621 (313,342) - - 2.599 209
Construction in Progress
General government 500,021 4,171,456 - - - 4.671.477
Total Construction in Progress 500,021 4,171,456 - - - 4.671,477
TOTAL GENERAL FIXED ASSETS $25.278.907 S 5,930,489 $ (379.974) $ - S - S 30.829.422
66
STATISTICAL SECTION
67
Town of Oro Valley,Arizona
General Government Revenues by Source
Last Ten Fiscal Years
(Unaudited)
Fiscal Fines Licenses Charges Contributions
Year Inter- and and for and Special
Ended Taxes Governmental Forfeitures Permits Services Donations Assessments Interest Other Total I
1993 $2,133,813 4 $ 1,689,032 1 $ 467,377 1 $ 972,054 $107,647 $ - $ 240,218 $ 255,279 $ 18,417 $5,883,837 1
1994 2,903,973 4 1,852,882267,093 1,338,826 182,122 125 119,608 265,466 7,428 6,937,523
1
1
1995 3,459,754 2455 266 407,933 1,275,265 224,759 800 196,663 384,742 1 74,723 8,479,905 °
� ,
1996 3 792,632 3,230,509 263,386 990,713 200,525 7,681 399,511 450,712 + 90,276 9,425,945 1
1
1997 3,865,996 5,380,979 280,644 941,888 198,948 28,052 804,907 498,158 48,036 12,047,608
1998 3,844,944 6,262,522 395,474 1,082,892 280,782 37,278 2,055,984 644,689 62,853 14,667,418.1
1
239 945 2 001 2,472,834 960,231 50,902 16,767,900
h 1999 4,518,732 6,780,403 331,032 1,411,820 4
2000 6,139,176 9,167,682 344,627 1,613,798 296,801 9,247 3,089,814 1,332,605 69,036 22,062,786.!
i
2001 6,429,157 8 328 908 333,755 1,776,265 387,657 3,785 3,089,032 1,757,232 172,726 22,278,517 1
1
2002 6,674,725 12,991,454 316,339 1,430,157 549,440 - 2,412.888 _ 875,361 150,444 25,400,808 i
Source: Oro Valley Finance Department
y,
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68 -:1
Town of Oro Valley,Arizona
General Government Expenditures By Function
Last Ten Fiscal Years
(Unaudited)
Fiscal Highways Culture Claims
Year General Public and and Capital and Debt
Ended Government Safety Streets Recreation Outlay 1 Judgements Service Total
1993 $1,421,059 $2,108,940 $ 658,629 $ - $ 251,429 $ - $ 397,830 $ 4.837,887
1994 1,646,245 2,316,936 678,180 - 823,750 - 345,910 5,811,021
1995 3,142,403 3,125,016 874,783 126,861 894,039 - 306,585 8,469,687
1996 2,778,347 3,670,514 1,216,141 407,484 167,662 - 398,348 8,638,496
1997 2,613,830 4,240,676 1,224,977 500,850 4,951,011 - 1,234,984 14,766,328
1998 2,880,570 4,251,231 1,207,437 647,146 837,944 - 740.170 10,564,498
1999 3,317,668 5,240,616 1,149,073 636.302878,843 - 793,212 .
. 12,015,714
2000 . 4,128,050 6,216,390 1,855,146 637,084 5,537,058 600,000 835,782 19,809,510
`
2001 7,256,772 7,347,742 2,924,119 1,193,846 3,628,630 - 2,537,759 24,888,868
2002 1 6,055,062 8,586,634 3,144,676 ' 1,474,667 ' 8,094,782 - 2,528,580 1 29,884,401
Source: Oro Valley Finance Department
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69
Town of Oro Valley, Arizona
State of Arizona Sales Tax Information
Taxable Activities, Tax Rates and Distribution Shares
(Unaudited)
Tax Distribution
Business Activity Category Rate Share
Mining-Severance 2.500% 80.00%
Oil and Gas, Sand and Gravel 3.125% 32.00%
Transportaton- Persons and Freight 5.600% 20.00%
Utilities 5.600% 20.00%
Communication 5.600% 20.00%
Publishing 5.600% 20.00%
Job Printing 5.600% 20.00%
Private Cars/Pipelines 5.600% 20.00%
Prime Contracting 5.600% 20.00%
Owner Buildings 5.600% 20.00%
Restaurants and Bars 5.600% 40.00%
Amusements 5.600% 40.00%
Personal Property Rentals 5.600% 40.00%
Retail (excluding food sales) 5.600% 40.00%
Hotel/Motel 5.500% 50.00%,
Membership Camping 5.600% 40.00%
Timbering - Severance (a) 80.00%
(a) The amount of severance tax levied on a severer engaged in the business of
timbering shall be:
(1) Two dollars thirteen cents per thousand board feet for timber products
that are derived from ponderosa pine.
(2) One dollar fifty-one cents per thousand board feet for timber products
derived from all species except ponderosa pine.
Source: Arizona Department of Revenue
70
Town of Oro Valley, Arizona
Transaction Privilege (Sales) Tax Rates by Category
(Unaudited)
Business Activity Category Rate
Publishing 2.0%
Printing and Advertising 2.0%
Contracting 2.0%
Retail Sales 2.0%
Restaurants and Bars 2.0%
Amusements 2.0%
Miscellaneous 2.0%
Hotel./Lodging Room Rentals 5.0%
Source: Oro Valley Finance Department
71
Town of Oro Valley,Arizona
Historical and Projected Excise Tax Collections
($000's)
June 30,2002
(Unaudited)
Actual(a) Projected
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year Year
Revenue Source 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
Town Sales and Franchise Taxes $ 4,501 $ 6,139 $ 6,395 $ 6,675 $ 6,282 $ 6,533
Licences and Permits 1,396 1,597 1,750 1,415 1,852 1,926
-
Fines 210 203 225 203 200 208
State-Shared Sales Tax 1,571 1,727 1,845 2,289 2,314 2,407
State-Shared Income Tax 1,963 2,178 2,346 3,098 3,163 3,290
Total $ 9,641 $ 11,844 $12,561 I $ 13,680 $ 13,811 1 $ 14,363
(a) All revenue sources are presented on a modified accrual basis of accounting except for Town sales taxes
which are presented on the cash basis of accounting per the Arizona Department of Revenue Standard
Industry Summary Local Taxes Collection Reports.
Source: Oro Valley Finance Department
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
$16'000 minya.tzwgip,;,,,-.40.=__.s• .p, .`yam.,•
$14 000 Ta�F."vt�4tJ`e ter .af�.t{ T2:ti + �r r�C�'m�fL,.
Y'�� .� ''rr.Y'a',�.�"i r� R �•'• f,�`.c'„�,..r*�-° �;u. ^+�}-�.r�+;.�3i+s: �:..,;�z�,�X;�•.
riv - 'PL''�?' �4 il! y,}.f`.rt.:C'.t'' n .:4:
$12,000 .7 177�,,v,,-,---04(...„ ,/,•�;r n1. ,7;'kSwq'ryV:ro�-',,,
-. R.LcJr:;w'Y;•,,wk''4
..%
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j
00 ,...=-7,7,7-4,4:,
7 -
$8,0 .. '.�1^.,-.�... �+r�w�•>,`r.rc.� ,-;,--:;:t7.77,7,?y.{, "., - y,-.1,7,-,,,',..:,C1i
+ .+'f' .o♦.�i4.�t7..M+ ..ri tk
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i
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..=4 "1,,,,,,,,,A. ti �t�.,
r .),:,,t6.4.:p�L. 3uyt4p
$6,000
.-�.-
, �.+ a.i,' �,y.' *.• t'S.' +-!'M.t"` J\ +i"� tet' ��.y..r.
+.f V r 7i z:,,.� 1r rix,f{e wy. :�..�1 i Y e•'�' ~7"` ; +:i;',:W
re•,•t •,4 5�l+', tiPiq„�+,,a?rA 4w^v'�rifii:+ ..r yVK','t'"" +ir 11arid:
$4'000 � .� � �r�"T4i '^L ,�, ..+y+�rtirQwa•`�fi�`S',
�7 yw,\.'M w,'�J,t •"�^{'y'1e�.ry • n -jl'w(a.. .Y}}r�:•�,,.o:
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$2,000 a tv� .7,.A ' 4�y��i•.>w,, "' �, 'x�;4 ~ �yti"�.,'��,_�Ys^�!':5�►.•..^t MEE~`Z`�ryY+w.�1
$'
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
72
Town of Oro Valley,Arizona
Town Transaction Privilege(Sales)and Franchise Tax Collections
By Industry Classification
June 30,2002
($000's)
(Unaudited)
1 Actual Projected
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 1 Fiscal Year
Industry Classification 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
Construction $ 2,398 $ 3,023 $ 2,913 $ 2.779 ( $ 2,350 $ 2,444
Manufacturing 3 3 2 6 3 3
'Transportation,Communications&Utilities 17 28 32 55 48 50
Wholesale Trade 13 13 13 61 16 17
Retail Trade 674 1,497 1,763 L877 1,950 2,028
Restaurants,Bars&Lodging 916 1.053 1.082 1,250 I 1,335 1.388
Fire,Insurance&Real Estate 15 25 73 45 45 47
Services 256 221 257 ' 258 225 234
All Other 2 51 (3) 42 10 10
Cable Franchise 207 225 263 302 300 1 312
_!
JTotal $ 4,501 $ 6,139 $ 6,395 n $ 6,675 1 $ 6,282 $ 6,533
Source: Oro Valley Finance Department
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
$8,000 �`'.; r+.�.�+. '•,;,, �S'G'�•'7 ,+ `" r .,.?:..X2 7 2.,, ry(• ,ti-
y ��.�" �..`�r'y���`�«��y5��'r4,�.•��.nfrt•44a.7F.,•W.•'�r�,.N.i.�„�.,a wy' ..,^'N'+.� ^.nr.^S%''`•�T��st,�r��•..
43 GY - ly•' �r�y�y L Y.�w!��.�!4 -.�!.,_ K•,'w}-r.• .t •ra,^,�•-r }+4•. •,, }`l r7, ri 7•,}l��..y
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:::::4:141-
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,, A Y: � r � T��' Y
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nr i•++' alL.J•...',..•.i: % " ,ar-a�` ;:, Cit,4 }� ' r,-
' •.—--r'';; . �t •�"� �.;•'mak .r`Clj,�t�wT'• L"V,,W-: +J.,+.., .'`,•.'�.'
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$4,0 0 0 �f .'Z.'-',.
a 1 wa7j :-,-'n"-:7-77...?..,--,-,�. c=: •}a ,•tM'w_.T" H{ 'L� �.,,�,,_'+ ij3fif a ��.+i+hi{•rra'�(r. }. + -.
+.M + ♦+ ...n`tc. '40
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$3,000 :1� -7 "`$�.�. .... 'r�r,„i��yr'•Yp`542:it�#v'�' SiC �cE�7o.�w
+ .:"7-773,.. t • ! r spa. +.:.. rx r ,...,-,,,,-- ,75-1.77r7,1;
.4_ �-. .�r+AT'G��j r ''.�_:'%',"'--4-17'7447-1,1=Z---:,� ry�
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• r."a/rY����yy.....��'.J'��s•M.�-�7�i•'�•..k'.1�4,Y+i l �t 4r7•�-��jirSv.!{Ij1t��:. i .,t moi['.!. ;r
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$2,000 2 „ '- ,.�a., �. �,.i- r , .._ ...... ...::
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.+ti +,t�.t yG ++'+v .,n.t.'L'�}..4`�y��[r.'`'n` �w i.`r+aryv.r�..�'.'.i+4'•l�'yk r��wL �•`� � �: Rr�`�'yfrr 1';; �,•n, :+. •r
R•r 7^t':2'•-.A4=4,Y-1y�5. y,I;,;',14 : 4.- Ki'i+Y:•-., :Mrs/a•y_t I.,. r•M� y r •...
I 000 r•,: tA:' . SS r+, $ ,Gti'; f l... 1 �� t+Z t,,
$ ./',rr"ii,:, .?"il•,,[''✓'7i""^n ri.'. ""f,i-v.y.'.•,�er•M, ,«/�.r�•K,,:t--~y'l"I;j'•.•�i�`/'.'+7a•=r�• :W��.ter} _.•',��y .;l•�::-.,:tt:.5-.,7 i~"t-•`
ay.rtircY?►'y� F`+u�v'-�'�G�l:'Y'-r�. oi��l+�'i''i`�`�1',4'iL�j�`+K'ti„t.T,��y^' t •tea a Y.�..t.•,.=► �•..�+:. -!5
�'�'"w•`;; .a..✓`a .,-. �:,y4.,{a +'� / 4' r w 'i. �'.�, ♦ a•-�.•r, Y . ,,��•..:,a�_�wv�:�y..,..0 F :•.
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•
I
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1998/99 1999/00 2000/01 2001/02 2002/03 2003/04
73
TOWN OF ORO VALLEY, ARIZONA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Special ' Special
Fiscal Assessment Assessment
Year Billing Collected
1993 240,000 240,218
1994 120,000 119,608
d `
1995 120,000 119,620
1996 145,550 145,386
1997 61,963 62,192
1998 31,424 54,651
1999 34,098 34,098
2000 3,138 3,138
2001 - -
2002 - - !
Source: Oro Valley Finance Department
Includes only debt service funds.
74
TOWN OF ORO VALLEY
ESTIMATED DEBT SERVICE COVERAGE
REGARDING
EXCISE TAX COLLECTIONS
(UNAUDITED)
Municipal Property Corporation
1996 1999 1999 2000 2001 2001 1996
Municipal Excise Tax Excise Tax Excise Tax Excise Tax Excise Tax Certificates
Water Systems Revenue Bonds Revenue Bonds Revenue Bonds Revenue Bon Revenue Bonds of Projected
Acquisition Bonds Water Building Land Water Library Participation 1
Projected Excise Tax
Fiscal Year
Endin Annual Annual Annual Annual Annual Annual Annual Combined Excise Tax Debt Service
g
(June 30) Total Total Total Total Total Total Total Debt Service Collections overage
S 416,844 $2,247,944 9,641,000 4.28x
1999 $1,831,104
$ 410,281 $2,572,389 11,844,000 4.60x
2000 $1,816,750 $ 234,752 $110,606 $ 408,322 $2,704,941 12,561,000 4.64x
2001 $1,826,876 $ 263,808 $205,935
2002 $1,935,562 $ 269,130 $210,733 S 271,669 $ 545.680 $ 324,901 $ 405,938 $3,963,613 13,680,000 3.45x
v
2003
$1,938,312 $ 269,285 $210,070 S 205,185 S 423,753 $ 252,305 $ 407,994 $3,706,904 13,811,000 3.73x
2004 $1,939,162 $ 263.685 $203,845 $ 206,430 $ 432,661 $ 257,609 $ 409,350 $3,712,742 14,363,000 3.87x
2005 $1,938,312 $ 263,285 $217,445 $ 207,405 $ 425,277 $ 253,212 $ 410,005 $3,714,941 3.85x
2006 $1,935,712 $ 271,985 $210,290 $ 212,985 $ 426,810 $ 254,125 $ 414,881 $3,726,788
2007 $1,956312 $ 275,575 $207,835 $ 208,285 $ 424,751 $ 252,899 $ 413,959 $3,739,616
,
2008 $1,947,512 $ 272,875 $209,895 $ 203,535 S 422,228 $ 251,397 $ 417,220 $3,724,662
2009 $1,937,412 $ 270,330 $211,425 $ 198,735 $ 422,269 $ 251,421 $ 414,225 $3,705,818
2010 $1,951,012 $ 272,140 $107,363 $ 203,640 $ 427,701 $ 254,655 $ 414,994 $3,631,505
2011 $1,937,012 $ 273,020 $ 203,128 $ 416,826 $ 248,180 $ 414,900 $3,493,066
2012 $1,944,776 S 268,540 $ 202,190 $ 421,151 $ 250,755 $ 413,944 501,356
$3,401.623
2013 $1,949,812 $ 166,340 $ 205,690 $ 418,487 5 249,169 $ ,
44
2014 $1,952,126 $ 225,375 $ 203,800 $ 421,212 $ 250,792 $ 414,300 4
$3,467,6 467,6
2015 $1,951,712 S 221,875 $ 206,520 $ 419,408 $ 249,717 $ 415,325
57
2016 $1,947,600 $ 227,875 S 203,625 $ 416,430 $ 247,945 $ 415,200 $3,458,675
2017 $1,940,712 $ 223,375 $ 205,100 $ 415,882 $ 247,618 $ 413,925 $3,446,612
2018 $1,931,050 $ 223,500 $ 206,025 $ 417,606 $ 48,645 $ 411,500 ,448 ,325
25
38,3
2019 $1,918,050 $ 223,125 $ 206,400 $ 415,333 $ 247,292
00
2020 $1,952,250 $ 206,225 $ 415,333 $ 247,292 $2,821,100
2021 $1,958,718
$ 205,500 $ 414,393 5 246,732 $2,825,343
$1,961,156
2022 $1,961,156
$1,959,562
2023 $1,959,562 $1,953,938
2024 $1,953,938 $1,969,282
2025 $1,969,282 $4,004,250
2026 $4,004,250
75
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF BONDED INDEBTEDNESS
JUNE 30,2002
(UNAUDITED)
Total General Obligation Bonded Debt None
Primary Assessed Valuation $ 276,358,507
Secondary Assessed Valuation 294,649,424
Estimated Full Cash Value 2,536,114,768
Source: Pima County Assessor
Direct General Obligation Bonded Debt Outstanding None
Water and Sewer Revenue Bonds Outstanding None
Street and Highway User Revenue Bonds Outstanding None
Issue Maturity Balance
Series Purpose Dates Outstanding
Municipal Property Corporation Bonds 1996 Water Company 07/01/26 $ 26,572,858
Certificates of Participation 1996 Land Acquisition 07/01/17 4,340,000
Municipal P . Co .-Excise Tax Rev. Bonds 1999 Dev. Serv. Bldg. 07/01/09 1,335,000
Prop. Corp.-Excise
al Prop. Corp.-Excise Tax Rev. Bonds 1999 Water Improvements 07/01/19 2,893,505
Water Development Fee Revenue Obligations 2000 Water Improvements 01/01/08 4,995,000
Excise Tax Revenue Obligations 2000 Land Acquisition 07/01/20 2,460,000
Municipal Prop. Corp.-Excise Tax Rev. Bonds 2001 Water Improvements 07/01/20 5,254.626
Municipal Prop. Corp.-Excise Tax Rev. Bonds 2001 Library 07/01/20 3,146,076
76
Town of Oro Valley, Arizona
Direct and Overlapping General Obligation Bonded Debt
June 30, 2002
(Unaudited)
General
Obligation Approx. Net Debt
Overlapping Jurisdiction Bonded Debt Percent Amount
State of Arizona None 0.80 None
Pima County 183,070,000 6.09 11,148,963
Pima County Community
College District 107,550,000 6.09 6,549,795
Pima County Flood Control
District 5,330,000 7.09 377,897
Amphitheater Unified School
District No. 10 139,009,000 33.10 46,011,979
Town of Oro Valley None 100.00 None
Total direct and overlapping general
obligation bonded debt $ 64,088,634
Direct and Overlapping General Obligation Debt Ratios
As % of As % of
Per Capita Town's Town's
Bonded Debt Secondary Estimated
Population Est. Assesssed Full Cash
@ 34,050 Valuation Value
Direct General Obligation
Bonded Debt $ - 0.00% 0.00%
Direct and Overlapping 1,882.19 21.75% 2.53%
General Obligation Bonded Debt
77
TOWN OF ORO VALLEY,ARIZONA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30,2002
(UNAUDITED)
Net secondary assessed valuation $ 294,649,424
Calculation of 20%Debt Limitation
20%of secondary net
assessed valuation $ 58,929,885
Bonds outstanding
Net 20%Debt Limitation 58,929,885
Calculation of 6%Debt Limitation
6%of secondary net
assessed valuation 17,678,965
Bonds outstanding
Net 6%Debt Limitation 17,678,965
Total Bonding Capacity $ 76,608,850
(1) Under Arizona law, cities can issue general obligation bonds for general municipal
purposes up to an amount not exceeding 6%of assessed valuation.
(2) Under Arizona law, cities can issue additional general obligation bonds for
supplying specific services, such as water, sewer, lighting, parks and recreational
facilities up to an amount not exceeding 20%of assessed valuation.
Source: Oro Valley Finance Department
78
Town of Oro Valley,Arizona
Property Tax Assessment Ratios and
Comparative Secondary Assessed Valuation Histories
Tax Years 1993 through 2002
(Unaudited)
Property Classification 1993 1994 j 1995 1996 1997 1998 1999 2000 2001 2002
P
Mining _ 30% 30% 29% 28% 27% 26% 25% 25% 25% 25%
Utility 30% 30% 29% 28% 27% 26% 25% 25% 25% 25%
Commerical and Industrial 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
Agriculture and Vacant Land 16% 16% 16% 16% 16% 16% 16% 16% 16% 16%
0 0 10% 10% 10% 10% 10% 10% 10% 0/
Owner Occupied Residential 10/0 10%` 10.E
Leased or Rented Residential 12% 11% 10% 10% 10% 10% 10%i 10% 10% 10%
Railroad,PrivateCompany Car Com an & 24% 25% 26% 24% 23% 22% 21% 10% 10% 10%
Airline Flight Property
Source: Arizona Department of Revenue
79
Town of Oro Valley,Arizona
Comparative Secondary Assessed Valuation Histories
Tax Years 1995 through 2002
(Unaudited)
Pima State of
Tax Year County Arizona
2002 $ 4,837,084,048 $ 36,825,660,973
2001 4,491,395,307 34,468,574,240
2000 4,196,858,967 32,071,738,214
1999 4,616,303,822 28,184,077,278
1998 4,915,883,987 26,793,103,101
1997 3,247,512,122 25,384,679,197
1996 3,218,883,605 23,022,330,962
1995 3,150,104,570 22,179,317,949
Source: Arizona Department of Revenue
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
)1
)
44
q
80
Town of Oro Valley, Arizona
Assessed Valuations and Tax Rates
June 30, 2002
(Unaudited)
Arizona legislation limits increases in assessed valuation of residential properties, limits total property
taxes, levied by counties, cities, towns, community college districts, fire districts and school districts,
establishes maximum limits on annual expenditures by counties, cities towns, community college
districts, fire districts and school districts subject to adjustments for population and cost of living
changes. There is no provision which would limit the amount of taxes which may be levied or
expended to pay debt service on existing or future bond issues.
Direct and Overlapping Secondary Assessed Valuation and Tax Rates per$100 of Assessed
Valuation (1)
2002
Secondary Primary Tax Rates
Assessed Assessed Per$100 of
Overlapping Municipality Valuation Valuation Assessed Valuation
State of Arizona $ 36,825,660,973 $ 34,868,616,692 0.0000
Pima County 4,837,084,048 4,667,364,797 5.3759
Pima Cty. Comm. College Dist. 4,837,084,048 4,667,364,797 1.5333
Pima County Library District 4,837,084,048 N/A 0.2124
Pima Cty. Flood Control Dist. 4,158,399,073 N/A 0.3546
Pima Cty. Fire Dist. 4,837,084,048 N/A 0.0458
Central AZ. Water Conservation
District 4,837,084,048 N/A 0.1300
Golder Ranch Fire District 141,817,222 N/A 1.9900
Amphitheater Unified School
District 890,250,363 847,472,378 7.0247
Total Tax Rates Per$100 of Assessed
Valuation:
Total Tax Rates Inside Town of Oro Valley,
Golder Ranch Fire District and
Amphitheater Unified School District
District No. 10 16.6667
Total Tax Rates Inside Town of Oro Valley,
and Amphitheater Unified School District
No. 10 and Outside Golder Ranch Fire
District 14.6767
(1) Based upon 2002 data obtained from the tax rolls of the Arizona Department of Revenue.
81
TOWN OF ORO VALLEY,ARIZONA
PRIMARY AND SECONDARY PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
(PER$100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
(UNAUDITED)
1 Pima
County Amphi.
Flood Pima County Central Unified
Fiscal State of Pima Control Comm. Free Arizona Fire School Town of
Year Arizona County District College Library Project District Distirct Oro Valley Total
1993 0.4700 5.1580 0.5398 1.0599 0.1924 0.1400 0.0567 7.5570 0.0000 15.1738
i
1994 0.4700 5.0603 0.4623 1.1038 0.2024 0.1400 0.0501 7.3911 0.0000 14.8800
1995 0.4700 5.0638 0.3596 1.2183 0.2124 0.1400 0.0539 8.1646 0.0000 15.6826
1996 0.0000 5.0138 0.3596 1.2433 0.2224 0.1400 0.0549 7.6789 0.0000 14.7129
1997 0.0000 5.1139 0.3296 1.1836 0.2224 0.1400 0.0517 7.5099 0.0000 14.5511
1998 0.0000 5.1802 0.3246 1.1922 0.2224 0.1400 0.0515 7.0881 0.0000 14.1990
i
1999 0.0000 5.5287 0.3046 1.3696 0.2024 0.14001 0.0511 7.1715 0.0000 14.7679
2000 0.0000 5.5193 0.3046 1.5574 0.2024 0.1300 0.0495 6.8816 0.0000 14.6448
2001 r 0.0000 3.4644 0.3546 1.5470 0.2124 0.1300 0.0488 7.4427 I 0.0000 15.1999
2002 0.0000 5.3759 0.3546 1.5333 0.2124 0.1300 _ 0.0458 _ 7.0247 _ 0.0000 _ 14.6767
Source: Arizona Tax Research Association
Note: The primary and secondary property tax rates for Pima County,Community College and the
Ampnitheater Unified School District jurisdictions are added together in the table.
2002 Property Tax Rates
Town of Oro State of Arizona
Valley 0.0000 Pima
Amphi. Unified 0.0000 County
5.3759
School Distirct7.0247 ,�44pg,
`
5:_ag,L,
'W7.4-75-
.,..4„.„.v.,,,
0. . .Y J
Pima County
Flood Control
Fire District Distric
0.0458 Pima Comm. 0.3546
College
Central Arizona County Free 1.5333
Project Library
0.1300 0.2124
82
TOWN OF ORO VALLEY, ARIZONA
NET ASSESSED AND FULL CASH VALUES OF TAXABLE PROPERTY
LAST TEN TAX YEARS
(UNAUDITED)
Secondary Total
Tax Assessed Full Value to Full
Year Type Value Cash Value Cash Value
1993 Secondary 71,925,888 579,263,289 12.42%
1994 Secondary 84,327,297 700,276,726 12.04%
1995 Secondary 119,234,229 1,012,388,701 11.78%
1996 Secondary 130,338,325 1,134,829,789 11.49%
1997 Secondary 165,265,200 1,443,744,912 , 11.45%
1998 Secondary 178,766,882 1,547,098,212 11.55%
1999 Secondary 196,647,641 1,660,678,769 11.84%
2000 Secondary 1,874,760,891 ' 11.77%
_
2001 Secondary 257,234,738 2,152,330,708 11.95%
2002 1 Secondary 294,649,424 2,536,114,768 11.62%
Source: Pima County Assessor
350,000,000 - .
300,000,000
250,000,000
200,000,000
150,000,000 ,
100,000,000
50,000,000 ,
�°�� �'? )Mcg (3 40)
°,c;\ °,cb� °�cP OOO oON X0`1.
83
Town of Oro Valley,Arizona
Secondary Assessed Valuation by Property Classification
Last Five Tax Years
(Unaudited)
1998 1999 2000 2001 2002
Secondary Secondary Secondary Secondary Secondary
Assessed Assessed Assessed Assessed Assessed
Property Class Valuation Valuation Valuation Valuation Valuation
Utilities $ 3,585,691 $ 3,805,840 $ 4,356,308 $ 4,224,746 $ 5,432,662
Commercial and Industrial 19,040,627 22,862,660 27,360,621 38,352,223 45,660,391
Agricultural and Vacant 24,377,563 1 22,076,492 26,182,766 30,114,158 35,879,382
Residential(owner occupied) 124,950,876 139,909,745 154,208,262 171,628,461 193,762,244
Residential(rental) 6,812,125 7,992,904 8,579,277 12,915,150 13,914,745
Commercial Historical Property - - - - -
I $ 178,766,882 I $ 196,647,641 $ 220,687,234 $ 257,234,738 $ 294,649,424
Source: Arizona Department of Revenue,Abstract of the Assessment Role and the Assessor of the County.
84
TOWN OF ORO VALLEY,ARIZONA
SECONDARY ASSESSED VALUATION OF MAJOR TAXPAYERS
JUNE 30,2002
(UNAUDITED)
2002 As%of Town's
Secondary Total Secondary
Assessed Assessed
Taxpayer Valuation Valuation
El Conquistador Hotel Associates 13,897,644 4.72%
Tucson Electric Power 2,691,386 0.91%
Ventana Medical Systems Inc. 3,016,189 1.02%
Safeway Inc. 2,027,209 0.69%
Evans Withycombe Finance Partnership 1,855,730 0.63%
Target ,715,776 0.58%
g Corp.�.
Rancho Vistoso Center LLC 1,715,151 0.58%
Canada Verde Luxury Dev.LLC 1,672,934 0.57%
Lincoln National Life Insurance Co. 1,393,932 0.47%
Qwest 1,308,281 0.44%
Totals S 31,294,232 10.62%
Source: Pima County Assessor's Office
85
TOWN OF ORO VALLEY,ARIZONA
HISTORICAL AND PROJECTED WATER SYSTEM REVENUES,
EXPENSES,DEBT SERVICE AND COVERAGE
(UNAUDITED)
Historical Actual
1998/99 1999/00 2000/01 2001/02
Revenues:
Water revenues $ 4,713,632 $ 6,454,446 $ 6,719,666 $ 8,176,260
Other revenues 217,573 346,669 495,386 536,881
Interest income 288,095 438,276 509,695 278,815
Total revenues 5,219,300 1 7,239,391 7,724,747 8,991,956
Expenditures:
Personnel 622,762 910,396 1,125,462 1,3 34,751
Operations&maintenance 1,816,542 1,951,456 3,179,939 3,477,382
CAP water costs 180,704 1 220,112 211,142 236,142
Total expenditures 2,620,008 r 3,081,964 4,516,543 5,048,274
Net water system revenues 2,599,292 4,157,427 3,208,204 3,943,682
Water supported debt service:
1996 Bonds debt service 1,831,100 1,816,750 1,826,875 1,935,563
1999 Water related debt service 234,752 263,808 269,130
2001 Water related debt service 426,225 426,950
.
Total water supported debt servic $ 1,831,100 , $ 2,051,502 $ 2,516,908 $2,631,642
Net water system revenues
debt service coverage 1.42 x _ 2.03 x 1.27 x " 1.50 x
Source: Oro Valley Finance Department
Note: The above information is provided for bond requirements only and the bond does not require ten
years of data.
86
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
(UNAUDITED)
SCHEDULE OF WATER RATES
EFFECTIVE JULY 5,2002
METER BASE RATE COMMODITY COMMODITY COMMODITY
SIZE includes TIER 1 TIER 2 TIER 3
ZERO gallons $1.90 per 1000 gallons $2.35 per 1000 gallons $3.00 per 1000 gallons
5/8 x 3/4 $12.00 0-10,000 10,001-25,000 over 25,000
3/4 x 3/4 $18.00 0-10,000 10,001-25,000 over 25,000
1 $30.01 0-16,000 16,001-27,000 over 27,000
1.5 $60.00 0-38,000 38,001-64,000 over 64,000
2 $96.00 0-80,000 80,001-134,000 over 134,000
3 $192.00 0-186,000 186,001-311,000 over 311,000
4 $300.00 0-169,000 1 169,001-283,000 over 283,000
6 $600.00 0-1,800,000 1,800,001-3,006,000 over 3,006,000
8 $1,200.00 0-1,800,000 1,800,001-3,006,000 _ over 3,006,000
Golf course usage to be billed at Tier 1 rates. Tier 2&Tier 3 will be implemented for any usage in excess
of ADWR allotment and will be billed after ADWR Annual report is filed.
The Town entered into an agreement at the time of acquisition of the Rancho Vistoso Water Company that
provides for a special rate for the Vistoso Partners golf courses. The commodity rate for any Vistoso
Partners golf course is$100.00 per acre foot of water. This rate is valid until an alternative source of water
can be provided to the golf courses.
Note: The golf course fees will increase to$194.00 on October 4,2002.
The following rates or service charges are effective October 2,1999:
Service Charge Amount
New Service Establishment Fee $20.00
Service Reconnection Fee $25.00
Service Reconnection Fee(after 5pm) $50.00
Meter Re-read Fee $20.00
Insufficient Funds/Return Check Fee $25.00
Backflow Prevention Install.Permit $35.00
Customer Requested Meter Test Cost
Customer Security Deposit(basic) $40.00
Destruction of Property Cost
Hydrant Meter Deposit $750.00
Delinquent Payment Fee $5.00
Service Area Inclusion Fee $5.00 per acre or$2.00 per
lot
87
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
(UNAUDITED)
Meter Installation
Meter Size Charges AWRD Fees
(in inches) Effective 10/2/1999 Effective 8/13/1996
5/8"X 3/4" $150.00 $300.00
3/4"X 3/4" 175* $450.00
1"standard $200.00 $750.00
1.5"standard $390.00 $1,500.00
1.5"turbine S560.00 $1,500.00
2"standard $560.00 $2,400.00
2"turbine $660.00 $2,400.00
2"compound $1,365.00 $2,400.00
3"turbine $875.00 $4,500.00
3"compound $1,700.00 $4,500.00
4"turbine $1,600.00 $7,500.00
4"compound $2,750.00 $7,500.00
6"turbine $3,240.00 $15,000.00
6"compound $4,925.00 $15,000.00
8"turbine Time&Materials N/A
Multifamily
Per Unit Cost N/A $144.00
*This fee became effective 7/6/02.
Note: 5.6%sales tax must be added to meter installation fees.
88
TOWN OF ORO VALLEY, ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
JULY 5, 2000
(UNAUDITED)
Potable Water System
Development Impact Fee Schedule
Single-Family *Comercial/ Irrigation(non-turf)
Meter Size Residential Industrial Fees Meter Fees
5/8" $1,774 $4,080 $3,193
1" $4,435 $10,200 $7,983
1 1/2" $8,870 $20,400 $15,965
2" $14,192 $32,640 $25,544
$65,280 $51,088
4" ___ $102,000 $79,825
6" ___ $204,000 $159,650
8" $408,000 $319,300
The meter component of the fee for master-metered residential uses is the higher of$834 per
unit or the single-family residential fee(s)for the master meter(s)*
Individual metered residential units shall pay the single-family residential fee for eacn meter.
Turf usage fee is$18,351 per acre of turf.
*The total Potable Water System Development Fee for commercial/industrial and master-
metered residential uses is the sum of the meter component set forth above and the following
supplemental fee based on fire flow for uses requiring more than 1,000 gpm of fire flow
(based on the total area of development and the fire flow requirement as determined by the
Fire Department):
Fire-Flow Requirement SDIFs
1,001 - 1,500 gpm $3,230/meter
1,501 -2,000 gpm $14,847/meter
2,001 -2,500 gpm $26,151/meter
For residential uses,this fee shall be paid when construction permits are issued. For all other
uses, this fee shall be paid when a water meter is obtained. If water system enhancements
are required in order to have sufficient capacity to provide water to a development which
will be served pursuant to a line extension agreement, the line extension agreement may
provide either that the developer pay the full fee provided by this section at the time of
entering into the line extension agreement or that the developer construct all system
enhancements needed to serve the development which is the subject of the line extension
agreement.
89
Town of Oro Valley, Arizona
Number of Meters Connected
(Unaudited)
Fiscal Meters Running
Year Connected Total
Pre-05/01/96 * 9,863 9,863
1995/96 ** 152 10,015
1996/97 629 10,644
1997/98 807 11,451
1998/99 985 12,436
1999/00 **** 2,157 14,593
2000/01 787 15,380
2001/02 507 15,887
2002/03 500 16,387
2003/04 500 16,887
2004/05 500 17,387
2005/06 500 17,887
2006/07 500 18,387
2007/08 500 18,887
* Connections existing at the time the Town acquired the two private
water companies.
** Connections added between May 1st and June 30, 1996.
*** The Town projects meter connections to stabilize over the next several
years as Town nears build-out of existing Town limits. These
projections are forward looking statements. No assurance can be given
that these projections will be met.
**** The Oro Valley water utility assumed management of the former OV
#1 customers (977) in July 1999.
Source: Oro Valley Water Utility
20,000
6
18,000
.rl• r``K• t .r.t .,>,'r:.,•Y+.�Y»'"�r'"*,..-...<. f✓'' '!v.-- .,;
,
a;-..:
1000 . •
v•
.'o.
+
4.
14=000
12,000 i.<'lt`:w.Tc•r+�•!,
v. °w i`mss•...
10,000 --=-� M yam.
8'000 t `.. ' .1r"�''S''{'if 11Y"a�•, ''!�7✓
69,0
, :_ .7 .-rY 'y.lily A`..... ' „1 r Jed"'Y'/3'•.v _J i'
4000 �..
2 000 ,.
CP C3 433 * (1 A\
Q
90
Town of Oro Valley, Arizona
Number of Connections by Type
Fiscal Year 2001/02
(Unaudited)
Number Percentage Percentage
of of Water of
User Type Connections Total Revenues Total
Residential 15,097 95.03% $ 5,529,185 68.09%
Commercial 180 1.13% 494,372 6.09%
Irrigation 316 1.99% 682,995 8.41%
Construction 285 1.79% 245,267 3.02%
Turf 9 0.06% 1,168,697 14.39%
Totals 15,887 100.0% $ 8,120,515 100.0%
Source: Oro Valley Water Utility and Finance Department
Turf
Construction 14.39%
3.02% -\
Irrigation
8.41% 411144 ,,
Commercial .- Residential
6.09% _---�'__, 6$.09%
91
Town of Oro Valley,Arizona
History of Connections to the Water System
Last Five Fiscal Years
(Unaudited)
Fiscal
Years Single Multi-
Ending Family Family Commercial Irrigation Turf Total Total
June 30 Connections Connections Connections Connections Connections Connections EDU's(a)
1998 783 2 12 10 - 807 936
1999 928 18 10 28 1 985 1,277
2000 927 24 33 21 1 1,006 (b) 1,397
2001 749 9 14 15 0 787 789
2002 477 1 11 18 0 507 666
(a) EDU's are determined by dividing the total amount collected with respect to connections to the system by the then
existing fee for a 5/8-inch connection. There can be no assurance that this level of connections or any other level
will continue in future years.
(b) On 7/1/99 the Town assumed managment of the OVWID #1 which consisted of 977 customers. These customers
are not considered "new" connections and were not subject to impact fees, they have not been included in this
figure.
Source: The Town.
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
Total EDU's
1,400 - I
^��`.
1,200
9 ;;:,-
1,000
�'
1 000 ten /• ,r,..qh�Y ., r
M1 �. n-�.n •/.. r..^,�" .,
o
1998 1999 2000 2001 2002
92
Town of Oro Valley, Arizona
History of Building Permits
Last Five Fiscal Years
(Unaudited)
i
Fiscal Year Ending June 30,
Building Permits 1998 1 1999 , 2000 1 1 2001 1 1 2002
Single Family Residential 851 1,020 1,144 793 534
.
Office 8 9 14 4 16
Miscellaneous 20 23 102 290 324
Retail - 7 I 11 6 11
Apartments i - 6 10 - -
Total Commercial 28 i 45 137 300 351
Total 879 1 1,065 1 1,281 1,093 885
Source: The Town.
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
Single Family Residential
1,144
1,200 1,020
1,000 h 793
800
534
600
400
III
200 4
,7, i
1998 1999 2000 2001 2002
93
Town of Oro Valley,Arizona
Schedule of the 15 Largest Water System Customers
Fiscal Year 2001/02
(Unaudited)
Annual Annual
Gallons Water
Water System Customer Delivered* Charges
El Conquistador Golf Course&Country Club $ 340,503 $ 644,549
Sun City Golf Course 141,058 273,371
Sheraton El Conquistador Resort 40,373 98,211
Vistoso Highland Golf Course 163,698 50,237
Sun City Community Association 22,828 74,297
Stone Canyon Golf Course 226,346 69,463
Rockridge Apartments 21,521 57,452
Copper Creek Elementary School 987 6,618
La Reserve Apartments(Evans/Withycombe) 20,132 51,752
La Cholla Air Park 23,799 53,231
The Boulder Apartments 11,841 33,399
Fry's Grocery Store 10,619 30,833
Honeywell(Allied Signal) 7,317 18,767
Pusch Ridge Christian Academy 9.765 27,590
Marana Public School(DeGrazia) 4,636 14,039
Totals $ 1,045,423 $ 1,503,809
* 000's omitted.
Source: Town
94
TOWN OF ORO VALLEY, ARIZONA
DEMOGRAPHIC STATISTICS
JUNE 30, 2002
(UNAUDITED)
Population by Age Group
Percentage
Age Group Number of Total
Under 5 1,710 5.02%
5 - 14 4,348 12.77%
15 - 19 1,834 5.39%
20 - 29 2,201 6.46%
30 - 39 3,974 11.67%
40 - 49 5,333 15.66%
50 - 64 6,923 20.33%
65 and over 7,727 22.70%
Total 34,050 100.00%
Sources: Town of Oro Valley Planning and Zoning Division
Under 5
65 and over 5.02% 5- 14
22.70% 12.77%
15- 19
5.39%
20 -29
6.46%
50 -64
20.33% 30- 39
11.67%
40-49
15.66%
95
TOWN OF ORO VALLEY,ARIZONA
DEMOGRAPHIC STATISTICS
June 30, 2002
(UNAUDITED)
Population by Ethnic Background
Percentage
Category Number of Total
White 30,016 88.15%
Hispanic 2,543 7.47%
Black/African American 348 1.02%
Native American 102 0.30%
Other 1,042 3.06%
Total 34,050 100.00%
Sources: Town of Oro Valley Planning and Zoning Division
Black/African Native
American American
1.02% 0.30% Other
Hispanic o
3.06/o
7.47%
1
White
88.15%
96
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TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF TOP EMPLOYERS
JUNE 30,2002
(UNAUDITED)
Governmental
The Town of Oro Valley was incorporated in April, 1974. The Town is governed by a mayor, four council
members, and a town manager. There is a local police department and service from Golder Ranch Fire
District and Rural-Metro Fire Department,a private company available through subscription.
Number of
Largest Employers Product/Service Employees
Sheraton El Conquistador Resort Dining/Recreation/Hotel 460
Town of Oro Valley Government 300
Ventana Medical Systems Medical 350
El Conquistador Country Club Dining/Recreation 230
Stone Canyon Golf/Golf Club at Vistoso Dining/Recreation 200
Fry's Food Stores(2) Grocery Store 137
Canyon Del Oro High School School ° 175
Target Retail Store 150
Home Depot Retail Store 137
Long Realty
Real Estate 115
Securaplane Aerospace 110
Basha s Food Store Grocery Store 105
Oro Valley Country Club Dining/Recreation 100
.
Safeway Grocery Store 90
Uno's Chicago Bar&Grill Restaurant/Bar 80
Selectide Medical Research 70
Risky Business
I Restaurant/Bar { 50
Desert Point Assisted Living 55
Alterra Claire Bridge Assisted Living 38
Pizza Hut Restaurant 38
Ross Stores Retail Store 29
Pusch Ridge Day Care Day Care 27
PetsMart l j Retail Store I _ 25
General
The Town of Oro Valley encompasses an area of approximately 32 square miles. Located in northeastern
Pima County, the Town is six miles north of the Tuscon city limits. The Town's current population is
34,050 and recorded a 2%unemployment rate in 2002.
98