HomeMy WebLinkAboutFinancial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/2001 LOBBY COPY
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
TOWN OF ORO VALLEY,ARIZONA
for the
FISCAL YEAR ENDED JUNE 30, 2001
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, 2001
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, 2001
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, 2001
Contents (Cont'd) Page
Municipal Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 48
CAPITAL PROJECTS FUNDS:
Combining Balance Sheet 50
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 52
D.W. Pool Renovation Project Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 54
Alternative Water Resources Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 55
Oro Valley Water Connection Fees Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 56
Library Construction Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 57
Townwide Roadway Development Impact Fees Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 58
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Contents (Cont'd) Page
GENERAL FIXED ASSETS ACCOUNT GROUP:
Comparative Schedules of General
Fixed Assets by Source 60
Schedule of General Fixed Assets by
Function and Activity 61
Schedule of Changes in General Fixed Assets
by Function and Activity 62
STATISTICAL SECTION
General Government Revenues by Source 64
General Government Expenditures by Function 65
Taxable Activities, Tax Rates and Distribution Shares 66
Transaction Privilege(Sales) Tax Rates by Category 67
Historical and Projected Excise Tax Collections 68
Town Transaction Privilege (Sales) and Franchise Tax Collections 69
Special Assessment Billings and Collections 70
Estimated Debt Service Coverage Regarding Excise Tax Collections 71
Statement of Bonded Indebtedness 72
Direct and Overlapping General Obligation Bonded Debt 73
Computation of Legal Debt Margin 74
Property Tax Assessment Ratios and Comparative Secondary Assessed
Valuation Histories 75
Comparative Secondary Assessed Valuation Histories 76
Assessed Valuations and Tax Rates 77
Primary and Secondary Property Tax Rates Direct and
Overlapping Governments 78
Net Assessed and Full Cash Values of Taxable Property 79
Secondary Assessed Valuation by Property Classification 80
TOWN OF ORO VALLEY,ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Contents (Concl'd) Page
Secondary Assessed Valuation of Major Taxpayers 81
Historical and Projected Water System Revenues, Expenses, Debt
Service and Coverage 82
Oro Valley Water Utility-
Schedule of Rates, Fees and Charges 83
Number of Meters Connected 86
Number of Connections by Type 87
History of Connections to the Water System 88
History of Building Permits 89
Schedule of the Fifteen Largest Water System Customers 90
Demographic Statistics 91
Property Value, Construction and Bank Deposits 92
Schedule of Top Employers 93
INTRODUCTORY SECTION
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iiMr TOWN OF ORO VALLEY
'' 11000 N. LA CANADA DRIVE
4 ORO VALLEY,ARIZONA 85737
Administrative Offices(520)229-4700 Fax(520)297-0428
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A
NOUN DED,g't
October 5,2001
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, 2001, 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, 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 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.
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 30 square miles. The Town's population figure from the Year 2000 Census is 29,700.
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
Councilmembers. Councilmembers are elected to four-year staggered terms. The citizens of Oro
Valley elect the Mayor. The Council, from among its members, selects the Vice-Mayor. The
Town Council is responsible, among other things, for the adoption of local ordinances, budget
adoption, the development of citizen advisory committees and the hiring of the Town Manager.
The Town 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 2000/01.
As in past years, the Town relies heavily on local sales tax revenues from various industries such
as construction, retail trade and hotel/motel lodging.
Construction sales taxes for this fiscal year total $2,913,000 approximately 4% lower than the
previous fiscal year. This amount accounts for approximately 48% 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 32%. This trend may continue for the next few years.
The Town will continue to expand its economic development efforts to attract retail and resort
businesses into the Oro Valley area to offset this possible decline.
Retail sales tax collections totaled $1,763,000 for an increase of 18% compared to the previous
fiscal year. This increase was mainly due to a full fiscal year of retail activity already within the
Town. As mentioned previously, this industry 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 within the next 12 to
36 months.
Sales tax collections from the hotel/motel lodging industry decreased by 3% which may be
attributed to a decline in the national economy as a whole. On September 1, 2001, the Town will
increase its bed tax rate from 1% to 3%. The proceeds of this tax increase are being used as
economic incentives to promote the tourism and resort hotel industry. Additionally, a five-star
resort is expected to open in November 2003 and is projected to generate approximately $1.3M
in direct sales taxes annually.
In addition, state shared taxes will increase by $1,280,000 or 31% in fiscal year 2001/02 due to
an increase in the Town's population from the Year 2000 Census.
ii
As discussed above, the Town's long term economic outlook is to build its retail sales tax base
by attracting commercial development into Oro Valley. These efforts should offset the effects of
a possible decline in construction activity in Oro Valley. During this time, the Town will also
need to focus its efforts on cost control due to the length of the lead time required for some of the
more significant retail developments.
MAJOR INITIATIVES
The Town of Oro Valley began several major capital projects during fiscal year 2000/01. Details
of these projects are discussed in the following paragraphs.
On November 29, 2000, the Town acquired a 173-acre parcel of land from the Arizona State
Land Department at a total cost of $2,823,053. Future plans for this site have not been
determined at this time. The Town has formed a citizen-based committee to develop a master
plan for the site.
Renovations to the James D. Kriegh Park swimming pool were completed in May, 2001 at a total
cost of$1,112,329.
Groundbreaking for the Oro Valley Public Library was held on June 1, 2001. The facility is
expected to be completed around April — May, 2002. Costs for this project total $5.1M which
includes construction, furnishings and library collections. Funding for the library will come from
Pima County bond proceeds in an amount of $2 million. The Town issued bonds for the
remaining balance. Operating costs will be shared by the Town and the Pima County Library
District.
$2.6M in road improvement projects were completed in this fiscal year. Some of these projects
include bicycle and pedestrian multi-use paths, roadway system capacity improvements, traffic
signals and street overlays.
$11,275,000 in improvements to the Oro Valley Water Utility are currently in progress and are
expected to be completed within the next two years. These projects are primarily to make
existing water system improvements and to keep up with the current growth of the Town.
Projects include items such as transmission/distribution lines, wells, booster stations and
reservoirs.
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, 2001, 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, 2001 and the amount of increases and decreases in relation to the prior
year.
Increase/(Decrease)
2000/2001 Percent From 1999/2000 1999/2000
Revenue Category Amounts Of Total Amount Percent Amounts
Local Taxes $ 6,429,157 28.9% $ 289,981 4.7% $ 6,13 9,176
Intergovernmental 8,328,908 37.0 (838,774) (9.1) 9,167,682
Fines & forfeiture 333,755 1.5 (10,872) (3.2) 344,627
Licenses &permits 1,776,265 8.0 162,467 10.1 1,613,798
Charges for services 387,657 1.7 90,856 30.6 296,801
Contributions &
Donations 3,785 0.0 (5,462) (59.1) 9,247
Special Assessments 3,089,032 13.9 (782) 0.0 3,089,814
Interest 1,757,232 7.9 424,627 31.9 1,332,605
Other Income 172,726 0.7 103,690 150.2 69,036
Total $ 22,278,517 100.0% $ 215,731 1.0% $ 22,062,786
iv
Total revenues for fiscal year 2000/01 increased slightly by $215,731 or 1.0% compared to last
fiscal year. Major revenues sources are local sales taxes, intergovernmental revenues and special
assessments.
Local sales taxes increased by$289,981 primarily due to the Town's retail industry but also with
a slight increase in services.
Intergovernmental revenues decreased by $838,774. Pima County bond proceeds decreased by
$938,192 due to the completion of the CDO Riverfront Park in fiscal year ended June 30, 2000.
Decreases in state and federal grants were offset by slight increases in state shared revenue
sources.
Licenses and permits increased by $162,467 primarily due to residential building permit fees.
While the number of single family residential building permits issued did decline, the average fee
per permit increased significantly.
As previously discussed, the Town relies heavily on local sales taxes from construction. This
fiscal year construction sales tax decreased by 4%compared to last fiscal year. This may account
for the modest increase in total revenues.
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, 2001
and the increases and decreases in relation to prior year amounts.
Increase/(Decrease)
2000/2001 Percent From 1999/2000 1999/2000
Expenditure Category Amounts Of Total Amount Percent Amounts
Current
General government $ 7,256,772 29.2% $ 3,128,722 75.8% $ 4,128,050
Public Safety 7,347,742 29.5 1,131,352 18.2 6,216,390
Highways and streets 2,924,119 11.7 1,068,973 57.6 1,855,146
Culture &recreation 1,193,846 4.8 556,762 87.4 637,084
Other- claims &
judgements -0- 0.0 (600,000) (100.0) 600,000
Capital Outlay 3,628,630 14.6 (1,908,428) (34.4) 5,537,058
Debt Service
Principal 1,120,000 4.5 640,000 133.3 480,000
Interest& fiscal charges 616,880 2.5 261,098 73.4 355,782
Bond issuance costs 800,879 3.3 800,879 n/a -0-
Total Expenditures $ 24,888,868 100.0% $ 5,079,358 25.6% $ 19,809,510
Overall, expenditures for the Town increased by$5,079,358 or 25.6%.
General government increased by $3,128,722. This was primarily due to the acquisition of land
from the Arizona State Land Department totaling $2.8M. A citizen-based committee is
developing a master plan to determine how the Town will utilize this site.
v
Public Safety expenditures increased primarily due to staffing and salary increases for police
department personnel. Building Safety also experienced significant staffing increases.
An increase of $1,068,973 in the highways and streets function is attributed to design and
construction costs for several roadway improvement projects.
Culture and recreation increased by $556,762 due to a full year of personnel and operations and
maintenance costs associated with the new CDO Riverfront Park.
Debt service increased by $901,098. This increase was mainly attributed to a debt service
payment due on July 1, 2001 on the Water Development Fee Revenue Obligation bond issued in
this fiscal year. Bond issuance costs of$800,879 were for three debt issues made in this fiscal
year.
General Fund Balance The General Fund's fund balance increased by $560,762 primarily
attributed to local sales tax collections and interest earnings.
Enterprise Operations At June 30, 2001, retained earnings for the Oro Valley Water Utility
increased by $1,565,345 for a total of $3,794,607. Water sales and interest earnings were the
primary revenue sources that accounted for this increase. Contributed capital totaled $2,933,990
including $946,523 in capital improvements related to the Oro Valley Water Connection Fees
Fund (development impact fees). $1,987,467 was derived from line extension agreements with
developers.
Net income for the fiscal year was $1,565,345. Total revenues of$7,724,749 exceeded budget
by $847,049 primarily related to water sales ($414K), interest earnings ($210K) and
miscellaneous service revenues ($222K). Expenses were under budget by $706,466 due to
savings in operations and maintenance.
Debt Administration At June 30, 2001, the Town had three Municipal Property Corporation
bonds, a certificate of participation, an excise tax revenue obligation and a water development
fee revenue obligation outstanding. Three of these were debt issues in this fiscal year.
Municipal Property Corporation Bonds Series 1996 issued for the acquisition of the Oro Valley
Water Utility and had an outstanding principal balance of $26,933,509. 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
$3,021,687 and $1,485,000,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
amounts at June 30, 2001 were $5,616,542 and $3,362,532, respectively.
The Certificate of Participation Series 1996 for land acquisitions had an outstanding principal
balance of$4,500,000.
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, 2001 was $2,580,000.
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 was
$6,770,000.
In November 2000, an advance was made from the General Fund to the Oro Valley Connection
Fees debt service fund for$330,729.
There were no outstanding capital leases at June 30, 2001.
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 Bills and federally guaranteed insurance contracts.
The average interest rate for this fiscal year was 6.126%. Investments held at LGIP earned
$1,755,745 in interest revenue of for the year ended June 30, 2001.
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 $458,884 for fiscal year
2000/2001.
Risk Management The Town of Oro Valley participates in the Arizona Municipal Risk
Retention Pool. Risk coverage includes general liability, errors and omissions, property and
automobile insurance. The policy insures up to $2,000,000 per incident occurrence plus any
excess liability of up to a $10,000,000 limit per occurrence per year. Coverage is provided on a
claims made basis.
The Town participates in the Arizona Municipal Workers Compensation Pool for workers
compensation insurance coverage.
The Town of Oro Valley is self-insured for unemployment compensation. Unemployment
reserves totaled $228,593 as of June 30, 2001 for the Town's 237 full-time and 39 seasonal
employees. The Town did not make an unemployment contribution in fiscal year 2000/2001.
vii
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 2001 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 ose financial statements and combing, individual and account group 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, 2000. 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
was
Report made possible by the dedicated work of the Finance Department staff. Each member
p
of the department has our sincere appreciation for the contributions made in the preparation of
this report.
Respectfully s .bmitted,
f _
/ , /
Chuck Sweet
Town Manager
LA Azi d. a,j,,,,,..
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, 2000
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
sc.:ON /ef.,;‘,17
ORTEDAZATES .1 I
au""0" C "resident
CORPORATOR r
>c� SEAL �'
Oficw
4Y07 Olee
Executive Director
ix
TOWN OF ORO VALLEY, ARIZONA
ORGANIZATIONAL CHART
Town Council
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Boards & Chuck Sweet George Dunscomb
Commissions Town Manager Town Magistrate
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ry
Jeff Weir H. Brent Sinclair
Economic Community
Development Development Director
Administrator
Ainsley Reeder
Parks & Recreation
Administrator
Terry Vosler
Building Administrator
Kathi Cuvelier Daniel Sharp
Town Clerk Police Chief
Bryant Nodine
Planning &Zoning
Administrator
Dan Dudley Alan Forrest
Town Attorney Water Utility Director
Mary Musgrave
Managing Librarian
Jeff Grant Bill Jansen
Human Resources Town Engineer
Director
David Andrews John Zukas
Finance Director Transit Services
Administrator
I N
Kevin Verville
Information Systems
Administrator
x
TOWN OF ORO VALLEY,ARIZONA
List of Principal Officials
ELECTED OFFICIALS
Mayor Paul Loomis
Vice-Mayor Francis LaSala
Councilmember Richard Johnson
Councilmember Barton Rochman
Councilmember 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
THIS PAGE BLANK
FINANCIAL SECTION
THIS PAGE BLANK
CRONSTROM 8. TRBOVICH
CERTIFIED PUBLIC ACCOUNTANTS
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, 2001, 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 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, 2001,
and the results of its operations and the cash flows of its proprietary fund types for the year then
ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated
October 5, 2001 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 MANZANITA DRIVE,SUITE 100 • SCOTTSDALE, ARIZONA 85258 ■ (480) 348-1102 • FAX (480) 348-1 104
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.
NivultOWV4'01917t-C ) PC '
Cronstrom &Trbovich, P.C.
October 5, 2001
2
General-Purpose Financial Statements
3
TOWN OF ORO VALLEY,ARIZONA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
AS OF JUNE 30,2001
Proprietary
Governmental Fund Types Fund Type
Special Debt Capital
General Revenue Service Projects Enterprise
Assets and Other Debits
Assets
Cash and investments $ 9,845,237 $ 3,373,755 $ 3,121,489 $19,720,305 $ 5,094,713
Restricted assets - - - - 8,482,201
Accounts receivable 160,010 - - 35,000 839,617
Taxes receivable 455,006 - - - -
Intergovernmental receivable 513,013 221,812 - - -
Interest receivable 42,997 13,371 10,781 71,586 42,836
Due from other funds 1,204,147 - - - -
Prepaid items 18,514 - - - -
Advances to other funds 330,729 - - - -
Deferred charges - - - - 1,008,448
Fixed assets(net,where applicable,
of accumulated depreciation) - - - - 28,480,599
Other Debits
Amount available in debt service fund - - - - -
Amount to be provided for retirement
of general long-term debt - - - - -
Total Assets And Other Debits $12,569,653 $ 3,608,938 $ 3,132,270 $19,826,891 $43,948,414
Liabilities,Equity and Other Credits
Liabilities
Accounts payable $ 296,985 $ 158,707 $ - $ 303,318 $ 594,740
Accrued wages and benefits 345,099 39,331 - 12,123 41,473
Interest payable - - 232,497 - 859,644
Intergovernmental payable 24,194 88 - - 23,976
Due to other funds - 389,905 814,242 - -
Customer deposits 79,982 643,320 - 4,742 94,730
Deferred revenue 165,994 5,973 - 970,237 -
Compensated absences payable 430,536 31,106 - - 33,516
Advances from other funds - - 330,729 - -
Revenue bonds payable - - 825,000 - 35,571,738
Certificates of participation - - - - -
Total Liabilities 1,342,790 1,268,430 2,202,468 1,290,420 37,219,817
Equity and Other Credits
Investment in general fixed assets - - - - -
Contributed capital - - - - 2,933,990
Retained earnings
Unreserved - - - - 3,794,607
Fund balances
Reserved for preaid items 18,514 - - - -
Reserved for advances 330,729 - - - -
Unreserved,designated for
unemployment benefits 195,312 25,135 - - -
Unreserved,undesignated 10,682,308 2,315,373 929,802 18,536,471 -
Total Equity and Other Credits 11,226,863 2,340,508 929,802 18,536,471 6,728,597
Total Liabilities,Equity and Other Credits $12,569,653 $ 3,608,938 $ 3,132,270 $19,826,891 $43,948,414
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)
$ - $ - $ 41,15 5,499
- - 8,482,201
- - 1,034,627
- - 455,006
- - 734,825
- - 181,571
- - 1,204,147
- - 18,514
- - 330,729
- - 1,008,448
25,278,907 - 53,759,506
- 929,802 929,802
- 16,942,730 16,942,730
$25,278,907 $17,872,532 $126,237,605
$ - $ - $ 1,353,750
- - 438,026
- - 1,092,141
- - 48,258
- - 1,204,147
- - 822,774
- - 1,142,204
- - 495,158
- - 330,729
- 13,372,532 49,769,270
- 4,500,000 4,500,000
- 17,872,532 61,196,457
25,278,907 - 25,278,907
- - 2,933,990
- - 3,794,607
- - 18,514
- - 330,729
- - 220,447
- - 32,463,954
25,278,907 - 65,041,148
$25,278,907 $17,872,532 $126,237,605
The accompanying notes to fianacial statements are an integral part of this statement.
5
THIS PAGE BLANK
6
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30,2001
Totals
Special Debt Capital (Memorandum
General Revenue Service Projects Only)
Revenues
Taxes $ 6,429,157 $ - $ - $ - $ 6,429,157
Intergovernmental 5,774,770 2,077,702 - 476,436 8,328,908
Fines and forfeitures 225,409 108,346 - - 333,755
Licenses and permits 1,749,793 26,472 - - 1,776,265
Charges for services 339,592 48,065 - - 387,657
Contributions and donations 2,752 1,033 - - 3,785
Special assessments - - 1,399,574 1,689,458 3,089,032
Interest 638,441 218,702 108,572 791,517 1,757,232
Other 61,071 70,579 - 41,076 172,726
Total Revenues 15,220,985 2,550,899 1,508,146 2,998,487 22,278,517
Expenditures
Current
General government 7,256,133 639 - - 7,256,772
Public safety 7,193,831 153,911 - - 7,347,742
Highways and streets - 2,924,119 - - 2,924,119
Culture and recreation 1,193,846 - - - 1,193,846
Capital outlay - - - 3,628,630 3,628,630
Debt service
Principal retirement - - 1,120,000 - 1,120,000
Interest and fiscal charges - - 608,364 8,516 616,880
Bond issuance costs - - 800,879 - 800,879
Total Expenditures 15,643,810 3,078,669 2,529,243 3,637,146 24,888,868
Excess of revenues over(under)expenditures (422,825) (527,770) (1,021,097) (638,659) (2,610,351)
Other financing sources(uses)
Operating transfers in 238,269 - 592,906 1,112,329 1,943,504
Operating transfers out (1,705,235) - - (23 8,269) (1,943,5 04)
Proceeds from sale of bonds 2,450,553 - 1,157,157 9,063,750 12,671,460
Total other financing sources(uses) 983,587 - 1,750,063 9,937,810 12,671,460
Excess of revenues and other sources
over(under)expenditures and other uses 560,762 (527,770) 728,966 9,299,151 10,061,109
Fund balance,beginning of year 10,666,101 2,868,278 200,836 9,237,320 22,972,535
Fund balance,end of year $ 11,226,863 $ 2,340,508 $ 929,802 $18,536,471 $33,033,644
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 30,2001
General Special Revenue
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Taxes $ 5,857,000 $ 6,429,157 $ 572,157 $ - $ - $ -
Intergovernmental 5,676,604 5,774,770 98,166 1,987,176 2,077,702 90,526
Fines and forfeitures 220,000 225,409 5,409 40,000 108,346 68,346
Licenses and permits 2,002,300 1,749,793 (252,507) 17,000 26,472 9,472
Charges for services 272,800 339,592 66,792 23,800 48,065 24,265
Contributions and donations 200 2,752 2,552 - 1,033 1,033
Special assessments - - - - - -
Interest 275,000 638,441 363,441 57,000 173,481 116,481
Other 29,000 61,071 32,071 1,800 70,579 68,779
Total Revenues 14,332,904 15,220,985 888,081 2,126,776 2,505,678 378,902
Expenditures
Current
General government 14,271,974 7,256,133 7,015,841 5,852 629 5,223
Public safety 7,700,411 7,193,831 506,580 218,422 153,911 64,511
Highways and streets - - - 4,182,543 2,924,119 1,25 8,424
Culture and recreation 1,245,707 1,193,846 51,861 - - -
Capital Outlay - - - - - -
Debt service
Principal retirement - - - - - -
Interest and fiscal charges - - - - - -
Bond issuance costs - - - - - -
Total Expenditures 23,218,092 15,643,810 7,574,282 4,406,817 3,078,659 1,328,158
Excess of revenues over(under)expenditures (8,885,188) (422,825) 8,462,363 (2,280,041) (572,981) 1,707,060
Other financing sources(uses)
Operating transfers in 144,000 238,269 94,269 - - -
Operating transfers out (2,248,226) (1,705,235) 542,991 - - -
Proceeds from sale of bonds 2,700,000 2,450,553 (249,447) - - -
Total other financing sources(uses) 595,774 983,587 387,813 - - -
Excess of revenues and other sources
over(under)expenditures and other uses (8,289,414) 560,762 8,850,176 (2,280,041) (572,981) 1,707,060
Fund balance,beginning of year 8,289,414 10,666,101 2,376,687 2,280,041 2,672,577 392,536
Fund balance,end of year $ - $11,226,863 $ 11,226,863 $ - $ 2,099,596 $ 2,099,596
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)
$ - $ - $ - $ - $ - $ -
- - - 2,000,000 476,436 (1,523,564)
- - - 3,612,680 1,689,458 (1,923,222)
11,000 24,830 13,830 294,125 789,551 495,426
- - - - 41,076 41,076
11,000 24,830 13,830 5,906,805 2,996,521 (2,910,284)
- - - 26,225,242 3,571,879 22,653,363
366,218 295,000 71,218 - - -
523,656 324,311 199,345 - 8,516 (8,516)
309,100 202,030 107,070 - - -
1,198,974 821,341 377,633 26,225,242 3,580 395 22,644,847
(1,187,974) (796,511) 391,463 (20,318,437) (583,874) 19,734,563
888,226 592,906 (295,320) 1,115,400 1,112,329 (3,071)
- - - - (144,000) (144,000)
100,000 208,536 108,536 11,515,000 9,063,750 (2,451,250)
988,226 801,442 (186,784) 12,630,400 10,032,079 (2,598,321)
(199,748) 4,931 204,679 (7,688,037) 9,448,205 17,136,242
199,748 200,836 1,088 7,688,037 9,088,266 1,400,229
$ - $ 205,767 $ 205,767 $ - $18,536,471 $ 18,536,471
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 30,2001
Enterprise
Operating revenues
Charges for sales and services $ 7,190,5 84
Total operating revenues 7,190,584
Operating expenses
Costs of sales and services 3,163,858
Depreciation 1,300,504
Total operating expenses 4,464,362
Operating income 2,726,222
Nonoperating revenues(expenses)
Interest revenue 509,697
Interest expense (1,642,861)
Issuance costs (52,181)
Other 24,468_
Total nonoperating revenues(expenses) (1,160,877)
Net income 1,565,345
Retained earnings,beginning of year 2,229,262
Retained earnings,end of year $ 3,794,607
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 30,2001
Enterprise
INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities
Cash received from customers $ 7,221,418
Cash payments to employees for services (1,101,893)
Cash payments to suppliers for goods/services (1,625,181)
Nonoperating revenues 24,468
Customer deposits received (65,460)
Net cash provided(used)by operating activities 4,453,352
Cash flows from capital and related financing activities
Acquisition of capital assets (3,323,565)
Principal paid on capital leases (11,915)
Interest paid on capital leases (516)
Principal paid on revenue bonds (475,000)
Interest paid on revenue bonds (1,5 89,3 84)
Bond issuance costs on revenue bonds (180,341)
Revenue bond proceeds 5,647,468
Net cash provided(used)for capital and related financing activities 66,747
Cash flows from investing activities
Interest 513,129
Net cash provided by investing activities 513,129
Net increase(decrease)in cash and cash equivalents 5,033,228
Cash and cash equivalents at beginning of year 8,543,686
Cash and cash equivalents at end of year $ 13,576,914
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET
Cash and investments per the balance sheet $ 5,094,713
Restricted assets 8,482,201
Total $ 13,576,914
(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 30,2001
Enterprise
(Concluded)
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income $ 2,726,222
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation 1,300,504
Nonoperating revenues 24,468
(Increase)decrease in operating assets
Accounts receivable 36,351
Prepaid expenses 36
Increase(decrease)in operating liabilities
Accounts payable 413,179
Accrued payroll 19,311
Intergovernmental payable (5,517)
Compensated absences payable 4,258
Customer deposits (65,460)
Net cash provided(used)by operating activities $ 4,453,352
NON-CASH INVESTING,CAPITAL AND FINANCING ACTIVITIES
Bond issuance costs of$52,181 were amortized during the year. The Town also issued$5,647,468 of
revenue bonds. The issuance costs of these bonds$180,341 have been deferred and will be amortized
over the life of the bond.
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 TUNE 30, 2001
NOTE 1 -SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES
The general-purpose financial statements of the Town of Oro Valley, Arizona (Town)
conform to 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 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, 2001
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 Fund - The Enterprise Fund is 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, 2001
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING 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, 2001
NOTE 1 -SUMMARY OF SIGNIFICANT A CCO UNTING 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, 2001
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING 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, numerous
transactions occur between individual funds for goods provided or services rendered.
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, 2001, 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, 2001
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, 2001
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 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 Council $ 2,795
Parks and Recreation 20,685
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, 2001
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, 2001 consist of the following:
Cash on hand $ 2,850
Cash in bank 22,813,734
Cash with the County Treasurer 264,259
State Treasurer's Investment Pool 26,556,857
Total cash and investments 49,637,700
Restricted assets (8,482,201)
Total cash and investments on the
combined balance sheet $ 41,155,499
The Town's deposits as of June 30, 2001 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, 2001 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.
NOTE 4 -RESTRICTED ASSETS
Restricted assets in the Enterprise Fund at June 30, 2001 consisted of the following:
Enterprise Fund
Future debt service $ 2,287,940
Customer deposits 94,730
Construction accounts 6,099,531
$ 8,482,201
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 5 - CHANGES IN GENERAL FIXED ASSETS
A summary of the changes in general fixed assets follows.
Balance Completed Balance
July 1, 2000 Additions Deletions Construction June 30, 2001
Land and improvements $ 7,192,250 $ 2,860,040 $ -0- $ -0- $ 10,052,290
Buildings and
improvements 8,493,683 1,287,698 -0- -0- 9,781,381
Furniture and equipment 2,334,794 258,812 (69,321) -0- 2,524,285
Vehicles 2,007,681 413,249 -0- -0- 2,420,930
Construction in Progress 70,629 429,392 -0- -0- 500,021
Total $ 20,099,037 $ 5,249,191 $ (69,321) $ -0- $ 25,278,907
Estimated cost to complete construction in progress at June 30, 2001 was $4,499,979.
NOTE 6-PROPRIETARY FUND FIXED ASSETS
The following is a summary of proprietary fund fixed assets at June 30, 2001:
Land $ 103,691
Water system 30,879,546
Equipment and vehicles 854,369
Water rights 762,361
Construction in progress 2,030,802
Less: accumulated depreciation (6,150,170)
Net fixed assets $ 28,480,599
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, 2001 was
$9,244,198.
21
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 7- OBLIGATIONS UNDER CAPITAL LEASES
During the fiscal year, the Town paid off all outstanding capital leases. A summary of
the changes in capital lease obligation follows.
General Balance Balance
Long-term Debt July 1, 2000 Increase Reduction June 30, 2001
Furniture and equipment $ 17,781 $ -0- $ (17,781) $ -0-
Balance Balance
Enterprise Fund July 1, 2000 Increase Reduction June 30, 2001
Equipment $ 11,915 $ -0- $ (11,915) $ -0-
NOTE 8-REVENUE BONDS PAYABLE
Revenue bonds payable at June 30, 2001 consisted of the outstanding revenue bonds
presented below. The bonds are callable with interest payable semiannually.
Principal and interest requirements at June 30, 2001 were as follows.
General Long-term Debt
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 2000 Issues Retirements June 30, 2001
MPC, Excise Tax Revenue
Bonds, Series 1999
3.5%-4.5% 1/1/01-09 $ 1,625,000 $ -0- $ (140,000) $ 1,48 5,000
Excise Tax Revenue
Bonds, Series 2000
4.4%-5.5% 7/1/01-20 -0- 2,580,000 -0- 2,580,000
Excise Tax Revenue
Bonds, Series 2001
3.25%-5.0%7/1/01-20 -0- 3,362,532 -0- 3,362,532
Water Development
Fee Revenue Bonds,
Series 2000 6.1%-6.4% 7/1/01-08 -0- 6,770,000 -0- 6,770,000
$ 1,625,000 $ 12,712,532 $ (140,000) 14,197,532
Less: Amounts transferred to Debt Service Fund
To retire bonds payable on July 1, 2001 (825,000)
$ 13,372,532
22
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 8-REVENUE BONDS PAYABLE(Concl'd)
Enterprise Funds
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 2000 Issues Retirements June 30, 2001
MPC, Water
System Acquisition,
1996 4.25%-5.6%7/1/00-26 $ 27,625,000 $ -0- $ (350,000) $ 27,275,000
MPC, Excise Tax Revenue
Bonds, Series 1999
3.5%-5.0% 1/1/01-19 3,190,000 -0- (125,000) 3,065,000
Excise Tax Revenue
Bonds, Series 2001
3.25%-5.0%7/1/01/20 -0- 5,647,468 -0- 5,647,468
$ 30,815,000 $ 5,647,468 $ (475,000) 35,987,468
Less: unamortized discount (415,730)
Total long-term bonds payable $ 35,571,738
Revenue bond debt service requirements to maturity, including $5,936,995 and
$27,737,861 of general long-term debt and enterprise fund interest, respectively, are as
follows:
General
Long-term Debt Enterprise
Year ending June 30:
2002 $ 1,233,382 $ 2,631,642
2003 1,093,640 2,643,824
2004 2,668,964 2,631,944
2005 957,742 2,632,457
2006 957,080 2,636,726
Thereafter 12,398,719 50,133,006
$ 19,309,527 $ 63,309,599
23
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 9- CERTIFICATES OF PARTICIPATION
Certificates of Participation payable at June 30, 2001 consisted of the amounts
presented below. They are callable with interest payable semiannually. Principal and
interest requirements at June 30, 2001, were as follows.
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 2000 Retirements June 30, 2001
Certificates of Participation,
Series 1996 4.625%-5.75% 7/1/00-2017 $ 4,655,000 $ (155,000) $ 4,500,000
Debt service requirements to maturity, including $2,519,785 of interest, are as follows:
Year ending June 30:
2002 $ 405,938
2003 407,994
2004 409,350
2005 410,005
2006 414,881
Thereafter 4,971,617
$ 7,019,785
NOTE 10-INTERFUND RECEIVABLES AND PAYABLES
As of June 30, 2001, interfund receivables and payables that resulted from various
interfund transactions were as follows:
Due from Due to
Other Funds Other Funds
General Fund $ 1,204,147 $ -0-
Special Revenue Funds:
HURF -0- 37,988
Federal Seizures and Forfeitures -0- 75,952
Public Transportation -0- 275,965
Debt Service Funds:
Municipal Debt Service -0- 814,242
$ 1,204,147 $ 1,204,147
24
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 10-INTERFUND RECEIVABLES AND PAYABLES(Conci'd)
As of June 30, 2001, advances that resulted from the approval of a long-term loan to
the Debt Service Q.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, 2000 $ 2,589,698
Current year increases:
Developer Contributions 354,742
Current year decreases:
Developer refund (10,450)
Contributed capital June 30, 2001 $ 2,933,990
25
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 12-BUDGETARY BASIS OF ACCOUNTING
Budgets for the Industrial Development Authority and the Revegetation Assurances
Special Revenue, the Oro Valley Water Connection Fee Debt Service and the CDO
Riverfront Park Capital Projects Funds were not prepared. The following summaries
are 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 $ 2,550,899 $ 3,078,669 $ 2,868,278
Less: funds with no adopted budget (45,221) (10) (195,701)
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances-Budget and
Actual $ 2,505,678 $ 3,078,659 $ 2,672,577
Debt Service
Other
Financing Fund Balance
Total Total Sources at Beginning
Revenues Expenditures and Uses of Year
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances $ 1,508,146 $ 2,529,243 $ 1,750,063 $ 200,836
Less: fund with no adopted budget (1,483,316) (1,707,902) (948,621) -0-
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balance -Budget and
Actual $ 24,830 $ 821,341 $ 801,442 $ 200,836
26
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 12-BUDGETARY BASIS OF ACCOUNTING(Conci'd)
Capital Projects
Other
Financing Fund Balance
Total Total Sources at Beginning
Revenues Expenditures and Uses of Year
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances $ 2,998,487 $ 3,637,146 $ 9,937,810 $ 9,237,320
Less: funds with no adopted budget (1,966) (56,751) 94,269 (149,054)
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balance - Budget and
Actual $ 2,996,521 $ 3,580,395 $ 10,032,079 $ 9,088,266
NOTE 13- CONTINGENT LIABILITIES
Accumulated Sick Leave - Sick leave benefits provide for ordinary sick pay and are
cumulative but do not vest with employees. Therefore, sick leave is not accrued.
Unvested accumulated sick leave of Town employees at June 30, 2001, totaled
$1,139,372.
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. No
significant reduction in insurance coverage occurred during the year and no
settlements exceeded insurance coverage during any of the past three fiscal years.
The Arizona Municipal Risk Retention Pool is structured such that member premiums
are based on an actuarial review that will provide adequate reserves to allow the pool
to meet its expected financial obligations. The pool has the authority to assess its
members additional premiums should reserves and annual premiums be insufficient to
meet the pool's obligations.
27
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 14 -RISK MANAGEMENT(Concl'd)
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,
2001 2000
Unpaid claims,beginning of year $ -0- $ -0-
Incurred claims (including IBNRs) 4,573 4,357
Claim payments (4,573) (4,357)
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, 2001 was $5,261,651. The Town's total payroll was $8,772,920.
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.
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 2000-01 the required and
actual contributions amounted to $368,316. The employees' contributions totaled
$263,083.
28
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 15 -DEFINED CONTRIBUTION PENSION PLAN
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 2000-01 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 - 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.
Annual Pension Cost - During the year ended June 30, 2000 (the date of the last
available information), the Town's annual pension cost of $186,368 for police was
equal to the Town's required and actual contributions.
The required contribution was determined as part of the June 30, 2000 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.
29
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 16-RETIREMENT AND PENSION PLANS(Conci'd)
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, 2000, 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
1998 $ 163,685 100% $ -0-
1999 174,091 100 -0-
2000 186,368 100 -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 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
32
Combining, Individual Fund and Account Group
Statements and Schedules
33
THIS PAGE BLANK
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 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $ 5,857,000 $ 6,429,157 $ 572,157
Intergovernmental 5,676,604 5,774,770 98,166
Fines and forfeitures 220,000 225,409 5,409
Licenses and permits 2,002,300 1,749,793 (252,507)
Charges for services 272,800 339,592 66,792
Contributions and donations 200 2,752 2,552
Interest 275,000 638,441 363,441
Other 29,000 61,071 32,071
Total Revenues 14,332,904 15,220,985 888,081
Expenditures
Current
General government
Town Council 107,552 110,347 (2,795)
Town Clerk 225,355 219,042 6,313
Magistrate Court 429,646 416,121 13,525
Town Manager 263,308 239,801 23,507
Finance 371,370 363,287 8,083
Legal 551,887 502,619 49,268
Planning and Zoning 1,455,320 1,189,820 265,500
General Administration 9,704,470 3,157,819 6,546,651
Custodial Facility Maintenance 120,297 119,422 875
Economic Development 311,599 289,374 22,225
Community Development Administration 366,533 304,782 61,751
Human Resources 191,244 185,580 5,664
Information Systems 173,393 158,119 15,274
Total General government 14,271,974 7,256,133 7,015,841
Public safety
Police 6,527,887 6,187,434 340,453
Building safety 1,172,524 1,006,397 166,127
Total Public safety 7,700,411 7,193,831 506,580
Culture and recreation
Parks and Recreation 1,107,067 1,127,752 (20,685)
Library 138,640 66,094 72,546
Total Culture and recreation 1,245,707 1,193,846 51,861
Total Expenditures 23,218,092 15,643,810 7,574,282
Excess of revenues over(under)expenditures (8,885,188) (422,825) 8,462,363
Other financing sources(uses)
Operating transfers in 144,000 238,269 94,269
Operating transfers out (2,248,226) (1,705,235) 542,991
Proceeds from sale of bonds 2,700,000 2,450,553 (249,447)
Total other financing sources(uses) 595,774 983,587 387,813
Excess of revenues and other sources
over(under)expenditures and other uses (8,289,414) 560,762 8,850,176
Fund balance,beginning of year 8,289,414 10,666,101 2,376,687
Fund balance,end of year $ - $11,226,863 $11,226,863
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 30,2001
Industrial State Federal
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Assets
Cash and investments $ 1,710,712 $ 210 $ 880,296 $ 29,340 $ 236,814 $ 516,383 $ 3,373,755
Intergovernmental receivable 200,429 - - - - 21,383 221,812
Interest receivable 8,420 1 3,725 15 - 1,210 13,371
Total Assets $ 1,919,561 $ 211 $ 884,021 $ 29,355 $ 236,814 $ 538,976 $ 3,608,938
Liabilities and Fund Balance
Liabilities
Accounts payable $ 142,928 $ - $ - $ 4,275 $ 438 $ 11,066 $ 158,707
Accrued wages and benefits 30,795 - - - 2,189 6,347 39,331
Intergovernmental payable 20 - - - 68 - 88
Due to other funds 37,988 - - - 75,952 275,965 389,905
Customer deposits - - 643,320 - - - 643,320
Deferred revenue 2,454 - - 3,519 - - 5,973
Compensated absences payable 25,435 - - - 627 5,044 31,106
Total Liabilities 239,620 - 643,320 7,794 79,274 298,422 1,268,430
Fund balances
Unreserved,designated
for unemployment 23,056 - - - - 2,079 25,135
Unreserved,undesignated 1,656,885 211 240,701 21,561 157,540 238,475 2,315,373
Total Fund Balance 1,679,941 211 240,701 21,561 157,540 240,554 2,340,508
Total Liabilities and Fund Balance $ 1,919,561 $ 211 $ 884,021 $ 29,355 $ 236,814 $ 538,976 $ 3,608,938
38
TOWN OF ORO VALLEY,ARIZONA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2001
Industrial State Federal
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Revenues
Intergovernmental $ 1,830,465 $ - $ - $ - $ - $ 247,237 $ 2,077,702
Fines and forfeitures - - - 5,507 102,839 - 108,346
Licenses and permits 26,472 - - - - - 26,472
Charges for services 21,113 - - - - 26,952 48,065
Contributions and donations - - - - - 1,033 1,033
Interest 140,344 15 45,206 3,504 13,910 15,723 218,702
Other 69,525 - - - - 1,054 70,579
Total Revenues 2,087,919 15 45,206 9,011 116,749 291,999 2,550,899
Expenditures
Current
General government - 10 - 629 - - 639
Public safety - - - 16,224 137,687 - 153,911
Highways and streets 2,683,498 - - - - 240,621 2,924,119
Total Expenditures 2,683,498 10 - 16,853 137,687 240,621 3,078,669
Excess of revenues over(under)
expenditures (595,579) 5 45,206 (7,842) (20,938) 51,378 (527,770)
Fund balance,beginning of year 2,275,520 206 195,495 29,403 178,478 189,176 2,868,278
Fund balance,end of year $ 1,679,941 $ 211 $ 240,701 $ 21,561 $ 157,540 $ 240,554 $ 2,340,508
39
TOWN OF ORO VALLEY,ARIZONA
HURF FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 1,729,000 $ 1,830,465 $ 101,465
Licenses and permits 17,000 26,472 9,472
Charges for services 5,800 21,113 15,313
Interest 50,000 140,344 90,344
Other 1,800 69,525 67,725
Total Revenues 1,803,600 2,087,919 284,319
Expenditures
Current
Highways and streets 3,741,667 2,683,498 1,058 169
Total Expenditures 3,741,667 2,683,498 1,058 169
Excess of revenues over(under)expenditures (1,938,067) (595,579) 1,342,488
Fund balance,beginning of year 1,938,067 2,275,520 337,453
Fund balance,end of year $ - $ 1,679,941 $ 1,679,941
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 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 10,000 $ 5,507 $ (4,493)
Interest - 3,504 3,504
Total Revenues 10,000 9,011 (989)
Expenditures
Current
General government 5,852 629 5,223
Public safety 13,762 16,224 (2,462)
Total Expenditures 19,614 16,853 2,761
Excess of revenues over(under)expenditures (9,614) (7,842) 1,772
Fund balance,beginning of year 9,614 29,403 19,789
Fund balance,end of year $ - $ 21,561 $ 21,561
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 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 30,000 $ 102,839 $ 72,839
Interest - 13,910 13,910
Total Revenues 30,000 116,749 86,749
Expenditures
Current
Public safety 204,660 137,687 66,973
Total Expenditures 204,660 137,687 66,973
Excess of revenues over(under)expenditures (174,660) (20,938) 153,722
Fund balance,beginning of year 174,660 178,478 3,818
Fund balance,end of year $ - $ 157,540 $ 157,540
42
TOWN OF ORO VALLEY,ARIZONA
PUBLIC TRANSPORTATION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 258,176 $ 247,237 $ (10,939)
Charges for services 18,000 26,952 8,952
Contributions and donations - 1,033 1,033
Interest 7,000 15,723 8,723
Other - 1,054 1,054
Total Revenues 283,176 291,999 8,823
Expenditures
Current
Highways and streets 440,876 240,621 200,255
Total Expenditures 440,876 240,621 200,255
Excess of revenues over(under)expenditures (157,700) 51,378 209,078
Fund balance,beginning of year 157,700 189,176 31,476
Fund balance,end of year $ - $ 240,554 $ 240,554
43
THIS PAGE BLANK
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 30,2001
Oro Valley Water
Municipal Connection Fee
Debt Service Debt Service Totals
Assets
Cash and investments $ 1,037,251 $ 2,084,238 $ 3,121,489
Interest receivable 2,215 8,566 10,781
Total Assets $ 1,039,466 $ 2,092,804 $ 3,132,270
Liabilities and Fund Balance
Liabilities
Interest payable $ 19,457 $ 213,040 $ 232,497
Due to other funds 814,242 - 814,242
Advances from other funds - 330,729 330,729
Revenue bonds payable - 825,000 825,000
Total Liabilities 833,699 1,368,769 2,202,468
Fund balances
Unreserved,undesignated 205,767 724,035 929,802
Total Fund Balance 205,767 724,035 929,802
Total Liabilities and Fund Balance $ 1,039,466 $ 2,092,804 $ 3,132,270
46
TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2001
Oro Valley Water
Municipal Connection Fee
Debt Service Debt Service Totals
Revenues
Special assessments $ - $ 1,399,574 $ 1,399,574
Interest 24,830 83,742 108,572
Total Revenues 24,830 1,483,316 1,508,146
Expenditures
Debt service
Principal retirement 295,000 825,000 1,120,000
Interest and fiscal charges 324,311 284,053 608,364
Bond issuance costs 202,030 598,849 800,879
Total Expenditures 821,341 1,707,902 2,529,243
Excess of revenues over(under)expenditures (796,511) (224,586) (1,021,097)
Other financing sources(uses)
Operating transfers in 592,906 - 592,906
Proceeds from sale of bonds 208,536 948,621 1,157,157
Total other financing sources(uses) 801,442 948,621 1,750,063
Excess of revenues and other sources
over(under)expenditures and other uses 4,931 724,035 728,966
Fund balance,beginning of year 200,836 - 200,836
Fund balance,end of year $ 205,767 $ 724,035 $ 929,802
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 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Interest $ 11,000 $ 24,830 $ 13,830
Total Revenues 11,000 24,830 13,830
Expenditures
Debt service
Principal retirement 366,218 295,000 71,218
Interest and fiscal charges 523,656 324,311 199,345
Bond issuance costs 309,100 202,030 107,070
Total Expenditures 1,198,974 821,341 377,633
Excess of revenues over(under)expenditures (1,187,974) (796,511) 391,463
Other financing sources(uses)
Operating transfers in 888,226 592,906 (295,320)
Proceeds from sale of bonds 100,000 208,536 108,536
Total other financing sources(uses) 988,226 801,442 (186,784)
Excess of revenues and other sources
over(under)expenditures and other uses (199,748) 4,931 204,679
Fund balance,beginning of year 199,748 200,836 1,088
Fund balance,end of year $ - $ 205,767 $ 205,767
48
CAPITAL PROJECTS FUNDS
CDO Riverfront Park- accounts for the capital expenditures related to the CDO Riverfront Park.
D.W Pool Renovation Project - accounts for the collection and capital expenditures of the D.W.
Pool Renovation Project.
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 Impact Fees - accounts for the collection and capital expenditures of the
Townwide Roadway Development Impact Fees.
49
TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2001
CDO D.W.Pool Alternative Oro Valley
Riverfront Renovation Water Connection
Park Project Resources Fees
Assets
Cash and investments $ - $ 28,187 $ 1,588,922 $ 7,096,499
Accounts receivable - - - -
Interest receivable - - 6,725 22,124
Total Assets $ - $ 28,187 $ 1,595,647 $ 7,118,623
Liabilities and Fund Balance
Liabilities
Accounts payable $ - $ 28,187 $ 719 $ 10,185
Accrued wages and benefits - - - -
Customer deposits - - - 4,742
Deferred revenue - - - -
Total Liabilities - 28,187 719 14,927
Fund balances
Unreserved,undesignated - - 1,594,928 7,103,696
Total Fund Balance - - 1,594,928 7,103,696
Total Liabilities and Fund Balance $ - $ 28,187 $ 1,595,647 $ 7,118,623
50
Townwide
Roadway
Library Development
Construction Impact Fees Totals
$ 3,194,777 $ 7,811,920 $19,720,305
- 35,000 3 5,000
9,674 33,063 71,586
$ 3,204,451 $ 7,879,983 $19,826,891
$ 143,341 $ 120,886 $ 303,318
- 12,123 12,123
- - 4,742
- 970,237 970,237
143,341 1,103,246 1,290,420
3,061,110 6,776,737 18,536,471
3,061,110 6,776,737 18,536,471
$ 3,204,451 $ 7,879,983 $19,826,891
51
TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2001
CDO D.W.Pool Alternative Oro Valley
Riverfront Renovation Water Connection
Park Project Resources Fees
Revenues
Intergovernmental $ - $ - $ - $ -
Special assessments - - 275,526 -
Interest 1,966 - 92,070 238,606
Other - - - -
Total Revenues 1,966 - 367 596 238,606
Expenditures
Capital outlay 56,751 1,112,329 99,812 94,528
Debt service
Interest and fiscal charges - - - 8,516
Total Expenditures p 56,751 1,112,329 99,812 103,044
Excess of revenues over(under)
expenditures (54,785) (1,112,329) 267,784 135,562
Other financing sources(uses)
Operating transfers in - 1,112,329 - -
Operating transfers out (94,269) - - -
Proceeds from sale of bonds - - - 5,808,750
Total other financing sources(uses) (94,269) 1,112,329 - 5,808,750
Excess of revenues and other sources
over(under)expenditures and
other uses (149,054) - 267,784 5,944,312
Fund balance,beginning of year 149,054 - 1,327,144 1,159,384
Fund balance,end of year $ - $ - $ 1,594,928 $ 7,103,696
52
Townwide
Roadway
Library Development
Construction Impact Fees Totals
$ 311,808 $ 164,628 $ 476,436
- 1,413,932 1,689,458
21,454 437,421 791,517
- 41,076 41,076
333,262 2,057,057 2,998,487
456,524 1,808,686 3,628,630
- - 8,516
456,524 1,808,686 3,637,146
(123,262) 248,371 (638,659)
- - 1,112,329
(144,000) - (23 8,269)
3,255,000 - 9,063,750
3,111,000 - 9,937,810
2,987,738 248,371 9,299,151
73,372 6,528,366 9,237,320
$ 3,061,110 $ 6,776,737 $18,536,471
53
TOWN OF ORO VALLEY,ARIZONA
D.W.POOL RENOVATION PROJECT FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Expenditures
Capital outlay $ 1,115,400 $ 1,112,329 $ 3,071
Total Expenditures 1,115,400 1,112,329 3,071
Excess of revenues over(under)expenditures (1,115,400) (1,112,329) 3,071
Other financing sources(uses)
Operating transfers in 1,115,400 1,112,329 (3,071)
Total other financing sources(uses) 1,115,400 1,112,329 (3,071)
Excess of revenues and other sources
over(under)expenditures and other uses - - -
Fund balance,beginning of year - - -
Fund balance,end of year $ - $ - $ -
54
TOWN OF ORO VALLEY,ARIZONA
ALTERNATIVE WATER RESOURCES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 261,000 $ 275,526 $ 14,526
Interest 50,000 92,070 42,070
Total Revenues 311,000 367,596 56,596
Expenditures
Capital outlay 1,404,139 99,812 1,304,327
Total Expenditures 1,404,139 99,812 1,304,327
Excess of revenues over(under)expenditures (1,093,139) 267,784 1,360,923
Fund balance,beginning of year 1,093,139 1,327,144 234,005
Fund balance,end of year $ - $ 1,594,928 $ 1,594,928
55
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 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 1,717,800 $ - $ (1,717,800)
Interest 44,125 238 606 194,481
Total Revenues 1,761,925 238 606 (1,523,319)
Expenditures
Capital outlay 11,232,897 94,528 11,138,369
Debt service
Interest and fiscal charges - 8,516 (8,516)
Total Expenditures 11,232,897 103,044 11,129,853
Excess of revenues over(under)expenditures (9,470,972) 135,562 9,606,534
Other financing sources(uses)
Proceeds from sale of bonds 8,435,000 5,808,750 (2,626,250)
Total other financing sources(uses) 8,435,000 5,808,750 (2,626,250)
Excess of revenues and other sources
over(under)expenditures and other uses (1,035,972) 5,944,312 6,980,284
Fund balance,beginning of year 1,035,972 1,159,384 123,412
Fund balance,end of year $ - $ 7,103,696 $ 7,103,696
56
TOWN OF ORO VALLEY,ARIZONA
LIBRARY CONSTRUCTION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 2,000,000 $ 311,808 $ (1,688,192)
Interest - 21,454 21,454
Total Revenues 2,000,000 333,262 (1,666,738)
Expenditures
Capital outlay 5,080,000 456,524 4,623,476
Total Expenditures 5,080,000 456,524 4,623,476
Excess of revenues over(under)expenditures (3,080,000) (123,262) 2,956,738
Other financing sources(uses)
Operating transfers out - (144,000) (144,000)
Proceeds from sale of bonds 3,080,000 3,255,000 175,000
Total other financing sources(uses) 3,080,000 3,111,000 31,000
Excess of revenues and other sources
over(under)expenditures and other uses - 2,987,738 2,987,738
Fund balance,beginning of year - 73,372 73,372
Fund balance,end of year $ - $ 3,061,110 $ 3,061,110
57
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 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ - $ 164,628 $ 164,628
Special assessments 1,633,880 1,413,932 (219,948)
Interest 200,000 437,421 237,421
Other - 41,076 41,076
Total Revenues 1,833,880 2,057,057 223,177
Expenditures
Capital outlay 7,392,806 1,808,686 5,584,120
Total Expenditures 7,392,806 1,808,686 5,584,120
Excess of revenues over(under)expenditures (5,558,926) 248,371 5,807,297
Fund balance,beginning of year 5,558,926 6,528,366 969,440
Fund balance,end of year $ - $ 6,776,737 $ 6,776,737
58
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. Ade uate control and
q
accountability of general fixed assets are essential to the protective custody of Town property.
p _
59
TOWN OF ORO VALLEY,ARIZONA
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE
JUNE 30,2001 AND 2000
2001 2000
GENERAL FIXED ASSETS
Land and improvements $ 10,052,290 $ 7,192,250
Buildings and improvements 9,781,381 8,493,683
Furniture and equipment 2,524,285 2,334,794
Vehicles 2,420,930 2,007,681
Construction in progress 500,021 70,629
Total $25,278,907 $20,099,037
INVESTMENT IN GENERAL FIXED
ASSETS BY SOURCE
General Fund $ 9,983,665 $ 6,486,256
Special Revenue Funds 1,573,131 1,390,174
Capital Projects Funds 11,875,664 10,376,160
Donated Assets 1,846,447 1,846,447
Total $25,278,907 $20,099,037
60
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
AS OF JUNE 30,2001
Buildings Furniture Construction
Land and and and in
Improvements Improvements Equipment Vehicles Progress Total
FUNCTION AND ACTIVITY
General government $ 8,921,582 $ 3,689,638 $ 955,041 $ 133,318 $ 500,021 $14,199,600
Public safety - 1,160,844 833,900 1,517,160 - 3,511,904
Public works 355,708 56,852 479,316 513,826 - 1,405,702
Culture and recreation 775,000 4,874,047 253,980 87,074 - 5,990,101
Public Transportation - - 2,048 169,552 - 171,600
Total $10,052,290 $ 9 781 381 $ 2,524,285 $ 2,420,930 $ 500,021 $25,278,907
61
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED JUNE 30,2001
General Fixed General Fixed
Assets Completed Assets
July 1,2000 Additions Deletions Construction Adjustments June 30,2001
FUNCTION AND ACTIVITY
Land and improvements
General government $ 6,086,542 $ 2,835,040 $ - $ - $ - $ 8,921,582
Public works 355,708 - - - - 355,708
Culture and recreation 750,000 25,000 - - - 775,000
Total Land and Improvements 7,192,250 2,860,040 - - - 10,052,290
Buildings and improvements
General Government 3,613,766 75,872 - - - 3,689,638
Public safety 1,152,753 8,091 - - - 1,160,844
Public works 2,501,143 - - - (2,444,291) 56,852
Culture and recreation 1,226,021 1,203,735 - - 2,444,291 4,874,047
Total Buildings and Improvements 8,493,683 1,287,698 - - - 9,781,381
Furniture and Equipment
General Govenment 892,254 93,628 (30,841) - - 955,041
Public safety 710,346 124,578 (1,024) - - 833,900
Public works 504,452 12,320 (37,456) - - 479,316
Culture and recreation 225,694 28,286 - - - 253,980
Public Transfportation 2,048 - - - - 2,048
Total Furniture and Equipment 2,334,794 258,812 (69,321) - - 2,524,285
Vehicles
General Govenment 108,058 25,260 - - - 133,318
Public safety 1,318,042 199,118 - - - 1,517,160
Public works 351,955 161,871 - - - 513,826
Culture and recreation 60,074 27,000 - - - 87,074
Public Transportation 169,552 - - - - 169,552
Total Vehicles 2,007,681 413,249 - - - 2,420,930
Construction in Progress
General Government 70,629 429,392 - - - 500,021
Total Construction in Progress 70,629 429,392 - - - 500,021
TOTAL GENERAL FIXED ASSETS $20,099,037 $ 5,249,191 $ (69,321) - - $25,278,907
62
STATISTICAL SECTION
63
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
1992 $1,768,406 $ 1,624,472 $ 536,114 $759,626 $ - $ - $ - $273,704 $ 372,203 $5,334,525
1993 2,133,813 1,689,032 467,377 972,054 107,647 - 240,218 255,279 18,417 5,883,837
1994 2,903,973 1,852,882 267,093 1,338,826 182,122 125 119,608 265,466 7,428 6,937,523
1995 3,459,754 2,455,266 407,933 1,275,265 224,759 800 196,663 384,742 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
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
1999 4,518,732 6,780,403 331,032 1,411,820 239,945 2,001 2,472,834 960,231 50,902 16,767,900
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
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
Source: Oro Valley Finance Department
64
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 Judgements Service Total
1992 $1,502,052 $1,871,058 $ 568,627 $ - $ 323,090 $ - $ 441,033 4,705,860
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 1 - 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 ' 636,302 878,843 - 793,212 12,015,714
2000 4,128,050 6,216,390 1,855,146 637,084 5,537,058 600,000 1 835,782 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
Source: Oro Valley Finance Department
65
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
66
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
67
Town of Oro Valley,Arizona
Historical and Projected Excise Tax Collections
($000's)
June 30,2001
(Unaudited)
Actual(a) Projected
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year Year
Revenue Source 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03
Town Sales and Franchise Taxes $ 3,845 $ 4,501 $ 6,139 $ 6,395 $ 6,150 $ 6,395
Licences and Permits 1,069 1,396 1,597 1,750 2,240 2,330
Fines 184 210 203 225 220 229
State-Shared Sales Tax 1,465 1,571 1,727 1,845 2,374 2,469
State-Shared Income Tax 1,682 1,963 2,178 2,346 3,097 3,221
Total $ 8,245 $ 9,641 $ 11,844 $ 12,561 $ 14,081 $ 14,644
(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.
68
Town of Oro Valley,Arizona
Town Transaction Privilege(Sales)and Franchise Tax Collections
By Industry Classification
June 30,2001
($000's)
(Unaudited)
Actual Projected
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Industry Classification 1997/98 1998/99 1999/2000 2000/01 2001/02 2002/03
Construction $ 1,898 $ 2,398 $ 3,023 $ 2,913 $ 2,212 $ 2,300
Manufacturing 4 3 3 2 3 3
Transportation,Communications&Utilities 4 17 28 32 40 42
Wholesale Trade 18 13 13 13 15 16
Retail Trade 515 674 1,497 1,763 1,785 1,856
Restaurants,Bars&Lodging 896 916 1,053 1,082 1,555 1,617
Fire,Insurance&Real Estate 123 15 25 73 25 26
Services 202 256 221 257 210 218
All Other 2 2 51 (3) 35 36
Cable Franchise 183 207 225 263 270 281
Total $ 3,845 $ 4,501 $ 6,139 $ 6,395 $ 6,150 $ 6,395
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.
69
TOWN OF ORO VALLEY, ARIZONA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Special Special
Fiscal Assessment Assessment
Year Billing Collected
1992 169,000 169,000
1993 240,000 240,218
1994 120,000 119,608
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 - -
Source: Oro Valley Finance Department
Includes only special assessment district debt service funds.
70
TOWN OF ORO VALLEY,ARIZONA
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 Bonds Revenue Bonds of
Acquisition Bonds Water Building Land Water Library Participation Projected
Fiscal Year Projected Excise Tax
Ending Annual Annual Annual Annual Annual Annual Annual Combined Excise Tax Debt Service
(June 30) Total _ Total Total _ Total Total Total Total Debt Service Collections Coverage
1999 $1,831,100 $ 416,844 $2,247,944 9,659,000 4.30x
2000 $1,816,750 $ 234,752 $110,606 $ 410,281 $2,572,389 11,844,000 4.60x
2001 $1,826,876 $ 263,808 $205,935 $ 408,322 $2,704,941 12,561,000 4.64x
2002 $1,935,562 $ 269,130 $210,733 $ 271,669 $ 545,680 $ 324,901 $ 405,938 $3,963,613 14,081,000 3.55x
2003 $1,938,312 $ 269,285 $210,070 $ 205,185 $ 423,753 $ 252,305 $ 407,994 $3,706,904 14,645,000 3.80x
2004 $1,939,162 $ 263,685 $203,845 $ 206,430 $ 432,661 $ 257,609 $ 409,350 $3,712,742 3.79x
2005 $1,938,312 $ 263,285 $217,445 $ 207,405 $ 425,277 $ 253,212 $ 410,005 $3,714,941 3.94x
2006 $1,935,712 $ 271,985 $210,290 $ 212,985 $ 426,810 $ 254,125 $ 414,881 $3,726,788
2007 $1,956,312 $ 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 $ 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 $ 268,540 $ 202,190 $ 421,151 $ 250,755 $ 413,944 $3,501,356
2013 $1,949,812 $ 166,340 $ 205,690 $ 418,487 $ 249,169 $ 412,125 $3,401,623
2014 $1,952,126 $ 225,375 $ 203,800 $ 421,212 $ 250,792 $ 414,300 $3,467,604
2015 $1,951,712 $ 221,875 $ 206,520 $ 419,408 $ 249,717 $ 415,325 $3,464,557
2016 $1,947,600 $ 227,875 $ 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 $ 248,645 $ 411,500 $3,438,325
2019 $1,918,050 $ 223,125 $ 206,400 $ 415,333 $ 247,292 $3,010,200
2020 $1,952,250 $ 206,225 $ 415,333 $ 247,292 $2,821,100
2021 $1,958,718 $ 205,500 $ 414,393 $ 246,732 $2,825,343
2022 $1,961,156 $1,961,156
2023 $1,959,562 $1,959,562
2024 $1,953,938 $1,953,938
2025 $1,969,282 $1,969,282
2026 $4,004,250 $4,004,250
71
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF BONDED INDEBTEDNESS
JUNE 30, 2001
(UNAUDITED)
Total General Obligation Bonded Debt None
Primary Assessed Valuation $ 244,196,918
Secondary Assessed Valuation 257,234,738
Estimated Full Cash Value 2,152,330,708
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 $ 26,933,509
Certificates of Participation 1996 Land Acquisition 07/01/17 4,500,000
Municipal Prop. Corp.-Excise Tax Rev. Bonds 1999 Dev. Serv. Bldg. 07/01/09 1,485,000
Municipal Prop. Corp.-Excise Tax Rev. Bonds 1999 Water Improvements 07/01/19 3,021,687
Water Development Fee Revenue Obligations 2000 Water Improvements 01/01/08 6,770,000
Municipal Prop. Corp.-Excise Tax Rev. Bonds 2001 Water Improvements 07/01/20 5,616,542
Municipal Prop. Corp.-Excise Tax Rev. Bonds 2001 Library 07/01/20 3,362,532
72
Town of Oro Valley, Arizona
Direct and Overlapping General Obligation Bonded Debt
June 30, 2001
(Unaudited)
General
Obligation • Approx. Net Debt
Overlapping Jurisdiction Bonded Debt Percent Amount
State of Arizona None 0.69 None
Pima County 153,280,000 5.73 8,782,944
Pima County Community
College District 81,470,000 5.73 4,668,231
Pima County Flood Control
District 6,595,000 6.71 442,525
Amphitheater Unified School
District No. 10 131,795,000 31.83 41,950,349
Town of Oro Valley None 100.00 None
Total direct and overlapping general
obligation bonded debt $ 55,844,049
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
@ 29,700 Valuation Value
Direct General Obligation
Bonded Debt $ 0.00% 0.00%
Direct and Overlapping 1,880.27 21.71% 2.59%
General Obligation Bonded Debt
73
TOWN OF ORO VALLEY,ARIZONA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30,2001
(UNAUDITED)
Net secondary assessed valuation $ 257,234,738
Calculation of 20%Debt Limitation
20%of secondary net
assessed valuation $ 51,446,948
Bonds outstanding
Net 20%Debt Limitation 51,446,948
Calculation of 6%Debt Limitation
6%of secondary net
assessed valuation 15,434,084
Bonds outstanding
Net 6%Debt Limitation 15,434,084
Total Bonding Capacity $ 66,881,032
(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
74
Town of Oro Valley,Arizona
Property Tax Assessment Ratios and
Comparative Secondary Assessed Valuation Histories
Tax Years 1992 through 2001
(Unaudited)
Property Classification 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mining 30% 30% 30% 29% 28% 27% 26% 25% 25% 25%
Utility 30% 30% 30% 29% 28% 27% 26% 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%
Owner Occupied Residential 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
Leased or Rented Residential 13% 12% 11% 10% 10% 10% 10% 10% 10% 10%
Railroad,Private Car Company& 24% 24% 25% 26% 24% 23% 22% 21% 10% 10%
Airline Flight Property
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.
75
Town of Oro Valley,Arizona
Comparative Secondary Assessed Valuation Histories
Tax Years 1995 through 2001
(Unaudited)
Pima State of
Tax Year County Arizona
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 25,3 84,679,197
1996 3,218,883,605 23,022,330,962
1995 3,150,104,570 22,179,317,949
Source: Arizona Department of Revenue
76
Town of Oro Valley,Arizona
Assessed Valuations and Tax Rates
June 30, 2001
(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)
2001
Secondary Primary Tax Rates
Assessed Assessed Per$100 of
Overlapping Municipality Valuation Valuation Assessed Valuation
State of Arizona $ 34,468,574,240 $ 32,518,431,391 0.0000
Pima County 4,491,395,307 4,361,492,992 5.4644
Pima Cty. Comm. College Dist. 4,491,395,307 4,361,492,992 1.5470
Pima County Library District 4,491,395,307 N/A 0.2124
Pima Cty. Flood Control Dist. 3,834,690,947 N/A 0.3546
Pima Cty. Fire Dist. 4,491,395,307 N/A 0.0488
Central AZ. Water Conservation
District 4,491,395,307 N/A 0.1300
Golder Ranch Fire District 11,700,824 N/A 1.8900
Amphitheater Unified School
District 808,292,410 775,202,512 7.4427
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 17.0899
Total Tax Rates Inside Town of Oro Valley,
and Amphitheater Unified School District
No. 10 and Outside Golder Ranch Fire
District 15.1999
(1) Based upon 2001 data obtained from the tax rolls of the Arizona Department of Revenue.
77
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)
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
1992 0.4700 5.3297 0.5871 0.9958 0.2025 0.1400 0.0535 7.1992 0.0000 14.9778
1993 0.4700 5.1580 0.5398 1.0599 0.1924 0.1400 0.0567 7.5570 0.0000 15.1738
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
1999 0.0000 5.5287 0.3046 1.3696 0.2024 0.1400 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 0.0000 5.4644 0.3546 1.5470 0.2124 0.1300 0.0488 7.4427 0.0000 15.1999
Source: Arizona Tax Research Association
Note: The primary and secondary property tax rates for Pima County,Community College and the
Amphitheater Unified School District jurisdictions are added together in the table.
78
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
1992 Secondary 65,098,105 513,072,404 12.69%
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 220,687,234 1,874,760,891 11.77%
2001 Secondary 257,234,738 2,152,330,708 11.95%
Source: Pima County Assessor
79
Town of Oro Valley,Arizona
Secondary Assessed Valuation by Property Classification
Last Five Tax Years
(Unaudited)
1997 1998 1999 2000 2001
Secondary Secondary Secondary Secondary Secondary
Assessed Assessed Assessed Assessed Assessed
Property Class Valuation Valuation Valuation Valuation Valuation
P
Utilities $ 3,723,602 $ 3,585,691 $ 3,805,840 $ 4,356,308 $ 4,224,746
Commercial and Industrial 15,587,445 19,040,627 22,862,660 27,360,621 38,352,223
Agricultural and Vacant 22,846,489 24,377,563 22,076,492 26,182,766 30,114,158
Residential(owner occupied) 116,846,833 124,950,876 139,909,745 154,208,262 171,628,461
Residential(rental) 6,260,831 6,812,125 7,992,904 8,579,277 12,915,150
Commercial Historical Property - - - -
$ 165,265,200 $ 178,766,882 $ 196,647,641 $ 220,687,234 $ 257,234,738
Source: Arizona Department of Revenue,Abstract of the Assessment Role and the Assessor of the County.
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
80
TOWN OF ORO VALLEY,ARIZONA
SECONDARY ASSESSED VALUATION OF MAJOR TAXPAYERS
JUNE 30,2001
(UNAUDITED)
2001 As%of Town's
Secondary Total Secondary
Assessed Assessed
Taxpayer Valuation Valuation
El Conquistador Hotel Associates $ 13,292,409 5.17%
Tucson Electric Power 2,566,441 1.00%
Evans Withycombe Finance Partnership 1,866,000 0.73%
Barclay Group No 10&Dayton 1,853,734 0.72%
Overland Vistoso Limited Partnership 1,781,968 0.69%
Dayton Hudson 1,564,092 0.61%
Home Depot 1,525,000 0.59%
Canada Verde Luxury Development 1,441,763 0.56%
Lincoln National Life Insurance Co. 1,312,143 0.51%
U.S.West Communications 1,252,834 0.49%
Totals $ 28,456,384 11.06%
Source: Pima County Assessor's Office
81
TOWN OF ORO VALLEY,ARIZONA
HISTORICAL AND PROJECTED WATER SYSTEM REVENUES,
EXPENSES,DEBT SERVICE AND COVERAGE
(UNAUDITED)
Historical Actual
1997/98 1998/99 1999/00 2000/01
Revenues:
Water revenues $ 4,494,937 $ 4,713,632 $ 6,454,446 $6,719,666
Other revenues 4,637 217,573 346,669 495,386
Interest income 279,891 288,095 438,276 509,697
Total revenues 4,779,465 5,219,300 7,239,391 7,724,749
Expenditures:
Personnel 490,399 622,762 910,396 1,125,462
Operations&maintenance 1,238,034 1,816,542 1,951,456 3,179,939
CAP water costs 167,078 180,704 220,112 211,142
Total expenditures 1,895,511 2,620,008 3,081,964 4,516,543
Net water system revenues 2,883,954 2,599,292 4,157,427 3,208,206
Water supported debt service:
1996 Bonds debt service 1,818,775 1,831,100 1,816,750 1,826,875
1999 Water related debt service 234,752 263,808
2001 Water related debt service 426,225
Total water supported debt service $ 1,818,775 $ 1,831,100 $ 2,051,502 $2,516,908
Net water system revenues
debt service coverage 1.59 x 1.42 x 2.03 x 1.27 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.
82
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
(UNAUDITED)
SCHEDULE OF WATER RATES
EFFECTIVE AUGUST 18,2001
METER BASE RATE COMMODITY COMMODITY COMMODITY
SIZE includes TIER 1 TIER 2 TIER 3
1,000 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
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 0-169,000 169,001-283,000 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
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.
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
83
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
1"standard $200.00 $750.00
1.5"standard $390.00 $1,500.00
1.5"turbine $560.00 $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
Note: 5.6%sales tax must be added to meter installation fees.
84
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
3" --- $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 each 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.
85
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 *** 810 16,190
2002/03 *** 834 17,024
2003/04 *** 859 17,883
2004/05 *** 885 18,768
2005/06 *** 911 19,679
2006/07 *** 938 20,617
2007/08 *** 966 21,583
* 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 increase by 3% for each of
these years. 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
86
Town of Oro Valley, Arizona
Number of Connections by Type
Fiscal Year 2000/01
(Unaudited)
Number Percentage Percentage
of of Water of
User Type Connections Total Revenues Total
Residential 14,132 92.55% $ 4,513,444 67.17%
Commercial 172 1.13% 402,707 5.99%
Irrigation 325 2.13% 537,148 7.99%
Construction 626 4.10% 285,503 4.25%
Turf 10 0.07% 933,629 13.89%
Wholesale/Unmetered 4 0.03% 47,235 0.70%
Totals 15,269 100.0% $ 6,719,666 100.0%
Source: Oro Valley Water Utility and Finance Department
87
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)
2001 749 9 14 15 0 787 789
2000 927 24 33 21 1 1,006 (b) 1,397
1999 928 18 10 28 1 985 1,277
1998 783 2 12 10 - 807 936
1997 621 - 3 5 - 629 639
1996 (c) 152 - - - - 152 152
(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.
(c) On May 1, 1996, the Town entered into a lease-purchase agreement to acquire two water companies' assets which
were the bulk of the facilities then supplying the water needs of the area within the boundaries of the Town as well
as certain areas outside the boundaries of the Town. At that time, there were 9,863 existing connections. From
May 1, 1996,to June 30, 1996, 152 connections were added.
Source: The Town.
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
88
Town of Oro Valley,Arizona
History of Building Permits
Last Five Fiscal Years
(Unaudited)
Fiscal Year Ending June 30,
Building Permits 1997 1998 1999 2000 2001
Single Family Residential 684 851 1,020 1,144 793
Office 5 8 9 14 4
Miscellaneous 28 20 23 102 290
Retail 3 - 7 11 6
Apartments 1 - 6 10 -
Total Commercial 37 28 45 137 300
Total 721 879 1,065 1,281 1,093
Source: The Town.
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
89
Town of Oro Valley,Arizona
Schedule of the 15 Largest Water System Customers
Fiscal Year 2000/01
(Unaudited)
Annual Annual
Gallons Water
Water System Customer Delivered* Charges
El Conquistador Golf Course&Country Club $ 310,036 $ 588,041
Sun City Golf Course 106,380 162,580
Sheraton El Conquistador Resort 49,027 119,874
Vistoso Highland Golf Course 128,891 35,970
Sun City Community Association 17,294 54,125
Stone Canyon Golf Course 189,077 61,262
Rockridge Apartments 18,280 46,690
Copper Creek Elementary School 1,748 20,860
La Reserve Apartments(Evans/Withycombe) 17,748 45,471
La Cholla Air Park 21,691 39,124
The Boulder Apartments 11,041 24,504
Fry's Grocery Store 8,725 23,388
Honeywell(Allied Signal) 5,974 19,504
Pusch Ridge Christian Academy 6,695 20,004
Marana Public School(DeGrazia) 3,650 11,628
Totals $ 896,257 $ 1,273,025
* 000's omitted.
Source: Town
90
TOWN OF ORO VALLEY,ARIZONA
DEMOGRAPHIC STATISTICS
JUNE 30,2001
(UNAUDITED)
Population by Age Group
Percentage
Age Group Number of Total
Under 5 1,405 4.73%
5 - 14 3,819 12.86%
15 - 19 1,494 5.03%
20-29 1,791 6.03%
30-39 4,102 13.81%
40-49 4,752 16.00%
50-64 5,589 18.82%
65 and over 6,748 22.73%
Total 29,700 100.00%
Population by Ethnic Background
Percentage
Category Number of Total
White 26,923 90.65%
Hispanic 1,060 3.57%
Black 235 0.79%
Native American 110 0.37%
Other 1,372 4.62%
Total 29,700 100.00%
Sources: Town of Oro Valley Planning and Zoning Department
91
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TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF TOP EMPLOYERS
JUNE 30,2001
(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 500
Town of Oro Valley Government 277
El Conquistador Country Club Dining/Recreation 250
Fry's Food Stores(2) Grocery Store 214
Canyon Del Oro High School School 175
Target Retail Store 130
Home Depot Retail Store 121
RVSI/Vanguard Automation Robotics/Automation 110
Securaplane Aerospace 110
Oro Valley Country Club Dining/Recreation 95
Basha's Food Store Grocery Store 80
Selectide Medical Research 75
Safeway Grocery Store 75
Walgreens(2) Drug Store 55
Pizza Hut Restaurant 47
PetsMart Retail Store 28
Burger King Restaurant 26
Carl's Junior Restaurant 22
Rubio's Baja Grill Restaurant 14
Payless Shoes Retail Store 5
Sleep America Retail Store 2
General
The Town of Oro Valley encompasses an area of approximately 30 square miles. Located in
northeastern Pirna County,the Town is six miles north of the Tuscon city limits. The Town's
population figure from the Year 2000 Census is 29,700 and recorded a 2.0%unemployment rate
in 2001.
93
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1
COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
TOWN OF ORO VALLEY, ARIZONA
for the
FISCAL YEAR ENDED JUNE 30, 2001
Prepared by the Finance Department
1
Town Manager
Chuck Sweet
1
Finance Director
David L. Andrews
1
1
i
1
1
TOWN OF ORO VALLEY, ARIZONA �
COMPREHENSIVE ANNUAL FINANCIAL REPORT �
FOR THE FISCAL YEAR ENDED JUNE 30, 2001 �
1
Contents Page �
1
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement ix �
Organizational Chart x �
List of Principal Officials xi �
FINANCIAL SECTION
Independent Auditor's Report 1
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 4
1
Required Supplementary Information: 4
1
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, 2001
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:
CombiningBalance 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, 2001
Contents (Cont'd) Page
Municipal Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 48
CAPITAL PROJECTS FUNDS:
ombinin Balance Sheet 50
C g
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 52 �
D.W. Pool Renovation Project Fund:
Statement of Revenues, Expenditures and Changes in
1
Fund Balance - Budget and Actual
54 �
1
Alternative Water Resources Fund:
1
1
1
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 55 4
1
Oro Valley Water Connection Fees
Fund: 4
4
Statement of Revenues, Expenditures and Changes in 4
Fund Balance Budget and
Actual 56 1
Library Construction Fund: 4
Statement of Revenues, Expenditures and Changes in
g
Fund Balance
- Budget and Actual 57 4
4
Impact Townwide Roadway Development Fees Fund: 4
Expenditures and Changes in
Statement of Revenues, p
Fund Balance -Budget and Actual 58
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Contents (Cont'd) Page
GENERAL FIXED ASSETS ACCOUNT GROUP:
Comparative Schedules of General
► Fixed Assets by Source 60
Schedule of General Fixed Assets by
Function and Activity 61
Schedule of Changes in General Fixed Assets
by Function and Activity
62
STATISTICAL SECTION
General Government Revenues by Source 64
General Government Expenditures by Function 65
Taxable Activities, Tax Rates and Distribution Shares 66
Transaction Privilege (Sales) Tax Rates by Category 67
Historical and Projected Excise Tax Collections 68
Town Transaction Privilege (Sales) and Franchise Tax Collections 69
Special Assessment Billings and Collections 70
Estimated Debt Service Coverage Regarding Excise Tax Collections 71
Statement of Bonded Indebtedness 72
► Direct and Overlapping General Obligation Bonded Debt 73
Computation of Legal Debt Margin 74
Property Tax Assessment Ratios and Comparative Secondary Assessed
► Valuation Histories 75
► Comparative Secondary Assessed Valuation Histories 76
Assessed Valuations and Tax Rates 77
Primary and Secondary Property Tax Rates Direct and
Overlapping Governments 78
Net Assessed and Full Cash Values of Taxable Property 79
► Secondary Assessed Valuation by Property Classification 80
►
►
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1
TOWN OF ORO VALLEY,ARIZONA I
COMPREHENSIVE ANNUAL FINANCIAL REPORT I
FOR THE FISCAL YEAR ENDED JUNE 30, 2001 1
1
I
Contents (Concl'd) Page 1
1
1
1
8]
Secondary Assessed Valuation of Major Taxpayers I
Historical and Projected Water System Revenues,Expenses,Debt i
Service and Coverage 82 I
Oro Valley Water Utility- I
Schedule of Rates, Fees and Charges 83 1
Number of Meters Connected 86 4
1
Number of Connections by Type 87 4
History of Connections to the Water System 88 4
History of Building Permits 89 4
1
Schedule of the Fifteen Largest Water System Customers 90 4
Demographic Statistics 91 1
Property Value, Construction and Bank Deposits 92 4
Schedule of Top Employers 93 1
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INTRODUCTORY SECTION
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411
41
THIS PAGE BLANK ;
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I ``LEY 4'9
:. '. 7
1 ,�/� . TOWN OF ORO VALLEY
--,, ,t � 11000 N. LA CANADA DRIVE
:` VORO VALLEY,ARIZONA 85737
.. � :- w Administrative Offices(520)229-4700 Fax(520)297-0428
1 ,y- �° �` : •`y' ', www.ci.oro-valley.az.us
/ D
1
1 October 5, 2001
1
1
TO THE HONORABLE MAYOR AND COUNCIL
I Town of Oro Valley, Arizona
I
I The Comprehensive Annual Financial Report (CAFR) of the Town of Oro Valley for the year
I ended June 30, 2001,
is hereby submitted. Local ordinances and state statutes require that the
p
I Town issue annually a report on its financial position and activity, and that this report be audited
I by an independent firm
of certified public accountants. Responsibility for both the accuracy of
p
I the data, and
the completeness and fairness of the presentation, including all disclosures, rests
To the best of our knowledge and belief, the enclosed data are accurate in all
I with management.
nd are re
ported in a manner that presents fairly the financial position and
I material respects a p
of the various funds and account groups of the Town of Oro Valley. All
I results of operations to enable the reader to gain an understanding of the Town's activities have
I disclosures necessary
I been included.
I .
Annual Financial Report is presented in three sections: introductory,
I The Comprehensive GFOA
Statistical. The Introductory Section includes this letter of transmittal, the
� Financial and ,
Achievement, an organizational chart and a list of the Town of Oro Valley's
1 Certificate of A � g p
0 elected officials
and department heads. The Financial Section includes the general-purpose
purpose
I financial statements and the combining, individual fund and account group financial statements
I and schedules, as well as the independent auditor's report on these financial statements and
e P
0 schedules. The
Statistical Section includes selected financial and demographic information,
generally presented on a multi-year basis.
y is required uired to undergo an annual single audit in conformity with the
� The Town of Oro q
1 provisions of the Single le 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
Valley, Arizona, complied, in all material respects, with the provisions required of
� Town of Oro Va y, p
0 the Single Audit Act of 1996 and U.S. Office of Management and Budget Circular A-133,Audits
1 ofStates, Local Governments, and Non-Profit Organizations.
i
The financial reporting entity Town) includesall the funds and account groups o the
1 primary government (i.e.,
the Town of Oro Valley as legally defined). The Town provides a full
) range of services protection;includingpolice the construction and maintenance of streets and
1 infrastructure, the provision of water services; public transpor
• tation services; recreational
1 activities and cultural events. In addition to general government activities, the governing body is
I financially accountable for the Municipal Property Corporation; therefore, this activity is
included in the reporting entity.
1 i
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I
GOVERNMENTAL STRUCTURE, LOCAL ECONOMIC
CONDITION AND OUTLOOK
Governmental Structure
was incorporated in 1974. It is located in northeastern Pima County and has a land
Oro Valley rp
of 30 square miles. The Town'spopulation figure from the Year 2000 Census is 29,700.
area q
government operates under the Council-Manager form of government. Policymaking
1
The Town g p
legislative authorityis vested in the Town Council, which consists of a Mayor and four
and . ,
Councilmembers are elected to four-year staggered terms. The citizens of Oro
Councilmembers.
elect the Mayor. The Council, from among its members, selects the Vice-Mayor. The
Valley y
Town Councilpamong
is responsible, other things, for the adoption of local ordinances, budget
adoption,tion the development of citizen advisory committees and the hiring of the Town Manager.
Town Manager is responsible for implementation of the policies of the Town Council. The
The g p
Town Manager appoints all department heads except the Town Clerk, Chief of Police, Town
g pp P
Engineer and Magistrate.
Local Economic Condition and Outlook
The local economic condition for the Town of Oro Valley remained stable in fiscal year 2000/01.
.
pastyears, the Town relies heavily on local sales tax revenues from various industries such
As in
as construction, retail trade and hotel/motel lodging.
Construction sales taxes for this fiscal year total $2,913,000 approximately 4% lower than the
previous fiscal year. This amount accounts for approximately 48% 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 32%. This trend may continue for the next few years.
The Town will continue to expand its economic development efforts to attract retail and resort 4
businesses into the Oro Valley area to offset this possible decline.
Retail sales tax collections totaled $1,763,000 for an increase of 18% compared to the previous
fiscal year. This increase was mainly due to a full fiscal year of retail activity already within the
Town. As mentioned previously, this industry will be the primary focus of the Town's
economic development efforts for the next five years. The Town has recently been working
p 1
closely with several developers to effectuate some significant retail projects within the next 12 to
cl y p
36 months. 1
Sales tax collections from the hotel/motel lodging industry decreased by 3% which may be
attributed to a decline in the national economy as a whole. On September 1, 2001, the Town will
increase its bed tax rate from 1% to 3%. The proceeds of this tax increase are being used as
economic incentives topromote the tourism and resort hotel industry. Additionally, a five-star
. .3M
resort is expected to open in November 2003 and is projected to generate approximately $1 4
p p
in direct sales taxes annually. 4
In addition, state shared taxes will increase by $1,280,000 or 31% in fiscal year 2001/02 due to
an increase in the Town's population from the Year 2000 Census. 4
ii
4
1
As discussed above, the Town's long term economic outlook is to build its retail sales tax base
by attracting commercial development into Oro Valley. These efforts should offset the effects of
ap ossible decline in construction activity in Oro Valley. During this time, the Town will also
need to focus its efforts on cost control due to the length of the lead time required for some of the
more significant retail developments.
MAJOR INITIATIVES
1 The Town of Oro Valley began several major capital projects during fiscal year 2000/01. Details
of these projects are discussed in the following paragraphs.
On November 29, 2000, the Town acquired a 173-acre parcel of land from the Arizona State
Land Department at a total cost of $2,823,053. Future plans for this site have not been
determined at this time. The Town has formed a citizen-based committee to develop a master
plan for the site.
Renovations to the James D. Kriegh Park swimming pool were completed in May, 2001 at a total
cost of$1,112,329.
Groundbreaking for the Oro Valley Public Library was held on June 1, 2001. The facility is
expected to be completed around April — May, 2002. Costs for this project total $5.1M which
p p
includes construction, furnishings and library collections. Funding for the library will come from
1 Pima County bond proceeds in an amount of $2 million. The Town issued bonds for the
remaining balance. Operating costs will be shared by the Town and the Pima County Library
District.
$2.6M in road improvement projects were completed in this fiscal year. Some of these projects
p
include bicycle and pedestrian multi-use paths, roadway system capacity improvements, traffic
1 signals and street overlays.
$11,275,000 in improvements to the Oro Valley Water Utility are currently in progress and are
expected to be completed within the next two years. These projects are primarily to make
existing system s stem improvements and to keep up with the current growth of the Town.
Projects include items such as transmission/distribution lines, wells, booster stations and
reservoirs.
f FINANCIAL INFORMATION
Town Management is responsible for establishing and maintaining an internal control structure
t 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
I
4
ci ient of federal and state financial assistance, the management is also responsible for
As a re p 4
ensuring an
that adequate internal control structure is in place to ensure and document 4
q
compliancepp with applicable laws and regulations related to these programs. This internal control 1
structure is subject to periodic evaluation by management.
of the Town's single audit, tests were made of the internal control structure and of its
I
As a part g 1
ce with a licable laws and regulations, including those related an pp to federal financial 1
ro ams. Althoughthis testing was not sufficient to support an opinion on the
assistance p gr4
' internal control system or its compliance with laws and regulations related to nonmajor
Town's y 1
financial assistance programs, the audit for the year ended June 30, 2001, disclosed no
federal p 1
material internal control weaknesses or material violations of laws and regulations.
4
In addition, the Town of Oro Valley maintains extensive budgetary controls. The objective of 4
controls is to ensure compliance with legal provisions embodied in the annual appropriated
these p �
approved bythegovernment's council. Activities of the general fund, certain special
budget I
funds, enterprise funds, debt service funds and capital projects funds are included in the
revenue rp
annualg �
budget. The level of budgetary control (i.e., the level at which expenditures cannot
Fund and in 4
all exceed theappropriated amount) is the departmental level for the General F
legally
total byfund for the other funds. The Town also maintains an encumbrance accounting system
I
method of maintainingbudgetary control. Encumbered amounts lapse at year end.
as one g I
r outstandingencumbrances generally are reappropriated as part of the subsequent year's
However,
budget.
As demonstrated by the statements and schedules included in the Financial Section of this report, 4
' responsibility for sound financial management. I
I
the Town of Oro Valley continues to meet its responsibility g
General Government Functions The following schedule presents a summary of General 4
Funds, Debt Service Funds and Capital Projects Funds Special Revenue revenues for the 4
fiscal year ended June 30, 2001 and the amount of increases and decreases in relation to the prior I
year. 4
1
1
Increase/(Decrease) 4
2000/2001 Percent From 1999/2000 1999/2000 1
Revenue Category Amounts_ Of Total Amount Percent Amounts 4
g ry
I
Local Taxes $ 6,429,157 28.9% $ 289,981 4.7% $ 6,139,176 1
Intergovernmental 8,328,908 37.0 (838,774) (9.1) 9,167,682 4
Fines & forfeiture 333,755 1.5 (10,872) (3.2) 344,627 4
Licenses &permits 1,776,265 8.0 162,467 10.1 1,613,798 4
Charges for services 387,657 1.7 90,856 30.6 296,801
Contributions&
1
Donations
3,785 0.0 (5,462) (59.1) 9,247 4
Special Assessments 3,089,032 13.9 (782) 0.0 3,089,814 4
Interest >
1 757 232 7.9 424,627 31.9 1,332,605
Other Income
172,726 0.7 103,690 150.2 69,036 4
o 1
Total $ 22,278,517 100.0% $ 215,731 1.0% $ 22,062,786
4
iv 4
4
4
Total revenues for fiscal year 2000/01 increased slightly by $215,731 or 1.0% compared to last
► fiscalY ear. Major revenues sources are local sales taxes, intergovernmental revenues and special
assessments.
Local sales taxes increased by $289,981 primarily due to the Town's retail industry but also with
►
a slight increase in services.
Intergovernmental revenues decreased by $838,774. Pima County bond proceeds decreased by
$938,192 due to the completion of the CDO Riverfront Park in fiscal year ended June 30, 2000.
Decreases in state and federal grants were offset by slight increases in state shared revenue
sources.
Licenses and permits increased by $162,467 primarily due to residential building permit fees.
While the number of single family residential building permits issued did decline, the average fee
per permit increased significantly.
Asreviousl discussed, the Town relies heavily on local sales taxes from construction. This
P Y
fiscalY ear construction sales tax decreased by 4% compared to last fiscal year. This may account
for the modest increase in total revenues.
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, 2001
and the increases and decreases in relation to prior year amounts.
Increase/(Decrease)
2000/2001 Percent From 1999/2000 1999/2000
Expenditure Category Amounts Of Total Amount Percent Amounts
Current
Generalg overnment $ 7,256,772 29.2% $ 3,128,722 75.8% $ 4,128,050
Public Safety 7,347,742 29.5 1,131,352 18.2 6,216,390
Highways and streets 2,924,119 11.7 1,068,973 57.6 1,855,146
Culture &recreation 1,193,846 4.8 556,762 87.4 637,084
Other- claims & •
judgements -0- 0.0 (600,000) (100.0) 600,000
Capital Outlay3,628,630 14.6 (1,908,428) (34.4) 5,537,058
z p
Debt Service
13 3.3 480 000
Principal 1,120,000 4.5 640,000 }
Interest & fiscal charges 616,880 2.5 261,098 73.4 355,782
Bond issuance costs 800,879 3.3 800,879 n/a -0-
Total Expenditures $ 24,888,868 100.0% $ 5,079,358 25.6% $ 19,809,510
Overall, expenditures for the Town increased by$5,079,358 or 25.6%.
Generalg over ment increased by $3,128,722. This was primarily due to the acquisition of land from the Arizona State Land Department totaling $2.8M. A citizen-based committee is
developing a master plan to determine how the Town will utilize this site.
v
4
Public Safety expenditures increased primarily due to staffing and salary increases for police
department personnel. Building Safety also experienced significant staffing increases. i
An increase of $1,068,973 in the highways and streets function is attributed to design and !
construction costs for several roadway improvement projects. 1
Culture and recreation increased by $556,762 due to a full year of personnel and operations and 4
maintenance costs associated with the new CDO Riverfront Park.
4
Debt service increased by $901,098. This increase was mainly attributed to a debt service 1
payment due on July1, 2001 on the Water Development Fee Revenue Obligation bond issued in
this fiscalY ear. Bond issuance costs of$800,879 were for three debt issues made in this fiscal 1
year. t
i
General Fund Balance The General Fund's fund balance increased by $560,762 primarily
attributed to local sales tax collections and interest earnings. 1
i
Enterprise Operations At June 30, 2001, retained earnings for the Oro Valley Water Utility
increased by $1,565,345 for a total of $3,794,607. Water sales and interest earnings were the 1
primary revenue sources that accounted for this increase. Contributed capital totaled $2,933,990 i
including $946,523 in capital improvements related to the Oro Valley Water Connection Fees 4
Fund (development impact fees). $1,987,467 was derived from line extension agreements with 1
p
developers. i
1
Net income for the fiscal year was $1,565,345. Total revenues of$7,724,749 exceeded budget
by $847,049 primarily related to water sales ($414K), interest earnings ($210K) and 4
miscellaneous service revenues ($222K). Expenses were under budget by $706,466 due to 1
savings in operations and maintenance.
Debt Administration At June 30, 2001, the Town had three Municipal Property Corporation
bonds, a certificate of participation, an excise tax revenue obligation and a water development 1
fee revenue obligation outstanding. Three of these were debt issues in this fiscal year.
1
Municipal Property Corporation Bonds Series 1996 issued for the acquisition of the Oro Valley
p p rtY �
Water Utility and had an outstanding principal balance of $26,933,509. Municipal Property 1
Corporation Bonds Series 1999 were issued for improvements to the water utility and i
construction of the community development building and had outstanding principal balances of 4
$3,021,687 and $1,485,000, respectively.
In April 2001, the Town issued Municipal Property Corporation Bonds Series 2001 for water systemimprovements im rovements and construction of the Oro Valley Public Library. Outstanding principal
amounts at June 30, 2001 were $5,616,542 and $3,362,532, respectively.
The Certificate of Participation Series 1996 for land acquisitions had an outstanding principal
balance of$4,500,000.
VI ,
1
1
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, 2001 was $2,580,000.
Water Development Fee Revenue Obligation Series 2000 were issued in November, 2000. These
1 bonds will be repaid with water system development impact fees. Outstanding principal was
$6,770,000.
In November 2000, an advance was made from the General Fund to the Oro Valley Connection
Fees debt service fund for$330,729.
► There were no outstanding capital leases at June 30, 2001.
► 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 Bills and federally guaranteed insurance contracts.
► The average interest rate for this fiscal year was 6.126%. Investments held at LGIP earned
$1,755,745 in interest revenue of for the year ended June 30, 2001.
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
�� fiscal
►
Securities"). Interest on investments held with the trustee earned $458,884 for year
2000/2001.
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 Townp articipates in the Arizona Municipal Workers Compensation Pool for workers
compensation insurance coverage.
The Town of Oro Valley is self-insured for unemployment compensation. Unemployment
reserves totaled $228,593 as of June 30, 2001 for the Town's 237 full-time and 39 seasonal
employees. The Town did not make an unemployment contribution in fiscal year 2000/2001.
vii
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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 2001 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, individual and account group 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, 2000. In order to be awarded a Certificate of
Achievement, the Town published an easily readable and efficiently organized comprehensive 1
annual financial report. The report satisfied both generally accepted accounting principals and �
applicable legal requirements. 1
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. �
1
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. �
i
1
Respectfully s bmitted,Oid
�
Chuck Sweet
Town Manager �
David L. Andrews 1
Finance Director
viii
4
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, 2000
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
0
AGE oFf,�
ez.;07
n STARS N w AND /
Z CANADA
coRPoR,,,p„ S 'resident
SEAL cc,
YO7
Executive Director
ix
TOWN OF ORO VALLEY, ARIZONA
ORGANIZATIONAL CHART I
4
Town Council 1
i
1
Boards & Chuck Sweet George Dunscomb
Commissions Town Manager Town Magistrate
1
Jeff Weir H. Brent Sinclair 1
Economic Community
Development Development Director
Administrator
1
Ainsley Reeder
Parks & Recreation
Administrator 1
1
1
Terry Vosler
Building Administrator
Kathi Cuvelier Daniel Sharp
Town Clerk Police Chief
Bryant Nodine
Planning & Zoning 1
Administrator 1
Dan Dudley Alan Forrest : : 1
Town Attorney Water Utility Director Mary Musgrave
rave
Managing Librarian
1
Jeff Grant Bill Jansen
Human Resources Town Engineer
Director 4
David Andrews John Zukas
Finance Director Transit Services
Administrator
Kevin Verville
Information Systems
Administrator
x
p
TOWN OF ORO VALLEY,ARIZONA
List of Principal Officials
1
► ELECTED OFFICIALS
Mayor Paul Loomis
1 Vice-Mayor Francis LaSala
1 Councilmember Richard Johnson
Councilmember Barton Rochman
Councilmember Werner S. Wolff
1
1
DEPARTMENT HEADS
1 Town Manager Chuck Sweet
1
Finance Director David L. Andrews
1
1 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 ment Director H. Brent Sinclair
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CRONSTROM 8. TRBOVICH
CERT 1 F l E D PUBLIC ACCOUNTANTS
► INDEPENDENT AUDITOR'S REPORT
►
► The Honorable Mayor and the Town Council of the
► Town of Oro Valley, Arizona
► the accompanying general-purpose financial statements of the Town of Oro
We have audited
as of and for the ended June 30, 2001, as listed in the table of
Valley, Arizona (Town), year contents. These general-purpose eneralfinancial statements are the responsibility of the Town's
g -
responsibility is to express an opinion on these general-purpose financial
► management. Our p ty p
statements based on our audit.
We conducted
our audit in accordance with generally accepted auditing standards and the
able to financial audits contained in Government Auditing Standards, issued by
standards applicable
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
amounts and disclosures in the general-purpose financial statements. An audit
supporting the
also includes assessing the accounting principles used and significant estimates made by
management, as
well as evaluatingthe 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
►
the financialposition of the Town of Oro Valley, Arizona as of June 30, 2001,
material respects,and the results of its operations and the cash flows of its proprietary fund types for the year
then
ended in conformity with generally accepted accounting principles.
In accordance with
Government AuditingStandards, we have also issued a report dated
October 5, 2001 on our consideration of the Town's internal control over financial reporting and
compliance with certain provisions of laws, regulations, contracts and grants.
our tests of its p
integralpart of an auditperformed in accordance with Government Auditing
That report i s an gr Standards and should be read in conjunction with this report in considering the results of our
audit.
1
8706 EAST MANZANITA DRIVE,SUITE 100 • SCOTTSDALE, ARIZONA 85258 • (480) 348-1102 ■ FAX (480) 348-1104
A PROFESSIONAL CORPORATION
II
II
Our audit was made for the purpose of forming an opinion on the general-purpose financial 1
statements taken as a whole. The combining and individual fund and account group financial I
statements and schedules listed in the table of contents as supplementary information are 41
presented for purposes of additional analysis and are not a required part of the general-purpose I
financial statements. Such information has been subjected to the auditing procedures applied in I
the audit of the general-purpose financial statements and, in our opinion, is fairly stated in all 1
material respects in relation to the general-purpose financial statements taken as a whole. II
11
The other information included in this report, designated as the "Statistical Section" in the table a
of contents,was not audited by us and, accordingly,we express no opinion on it. ,
1
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Npfulttot4/0-4-&-&-utC \ ) Pc • 4
III
Cronstrom &Trbovich,P.C. 4
1
October 5, 2001 4
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General-Purpose Financial Statements
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III
•
TOWN OF ORO VALLEY,ARIZONA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS III
S OF JUNE 30 2001 I
A � .
Proprietary II
Governmental Fund Types Fund Type4
II
Special Debt Capital 411
General Revenue Service Projects Enterprise
4
Assets and Other Debits 41
Assets 4
Cash and investments $ 9,845,237 $ 3,373,755 $ 3,121,489 $19,720,305 $ 5,094,713
Restricted assets - - - - 8,482,201 !
Accounts receivable 160,010 - - 35,000 839,617
Taxes receivable 455,006 - - -
I - 4
ntergovernmental receivable 513,013 221,812 42,836
- 41
Interest receivable 42,997 13,371 10,781 71,5864
Due from other funds 1,204,147 - -
Prepaid items 18,514 - - - - I-
other funds 330,729 - - 4
Advances to _ - - 1,008,448
Deferred charges
Fixed assets(net,where applicable, 4
_ - - 28,480,599
of accumulated depreciation) -
4
Other Debits
4
Amount available in debt service fund - - - - - i
Amount to be provided for retirement - - - -
of general long-term debt
Total Assets And Other Debits $ 12,569,653 $ 3,608,938 $ 3,132,270 $19,826,891 $43,948,414 4
Liabilities,Equity E ui and Other Credits 4
Liabilities
Accountspayable a able $ 296,985 $ 158,707 $ - $ 303,318 $ 594,740 4
Accrued wages and benefits 345,099 39,331 -
12,123 41,473 4
Interestp y a able - - 232,497 - 859,644
- 4
23,976
Intergovernmental payable 24,194 88 - - -
Due to other funds - 389,905 814,242
79,982 643,320 - 4,742 94,730 4
Customer deposits -
Deferred revenue 165,994 5,973 - 970,237II
Compensated absences payable 430,536 31,106 - - 33,516 Advances from other funds - 330,729 - -35,571,738
Revenue bonds payable - - 825,000 -
Certificates of participation - 0 420 37 219 817
Total Liabilities 1,342,790 1,268,430 2,202,468 1,29 , ,
Equity and Other Credits - - -
Investment in general fixed assets - _ - - 2,933,990
Contributed capital
Retained earnings 4
Unreserved - - - - 3,794,6074
Fund balances '
Reserved for preaid items 18,514 - - -
Reserved for advances 330,729 - - 1
Unreserved,designated for
unemployment benefits 195,312 25,135 - - -
Unreserved,undesignated 10,682,308 2,315,373 929,802 18,536,471 - 4
Total Equity and Other Credits 11,226,863 2,340,508 929,802 18,536,471 6,728,597
q � 19,826,891 $43,948,414 4
Total Liabilities,Equity and Other Credits $ 12,569,653 $ 3,608,93 8 $ 3,132,270 $ 4
4
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The accompanying notes to financial statements are an integral part of this statement.
4 E
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Account Groups
Totals
General General (Memorandum
Fixed Assets Long-term Debt Only)
$ - $ - $ 41,15 5,499
8,482,201
! _ - 1,034,627
I _ - 455,006
_ - 734,825
181,571
I _ - 1,204,147
I _ - 18,514
I _ - 330,729
_ - 1,008,448
25,278,907 - 53,759,506
- 929,802 929,802
I - 16,942,730 16,942,730
$25,278,907 $y17,872,532 $126,237,605
$ - $ - $ 1,353,750
! _ -
438,026
_ - 1,092,141
48,258
_ - 1,204,147
I _ - 822,774
1,142,204
! _ -
495,158
_ - 330,729
I - 13,372,532 49,769,270
4,500,000 4,500,000
1 - 17,872,532 61,196,457
25,278,907 - 25,278,907
I _ - 2,933,990
_ - 3,794,607
_ - 18,514
330,729
! _ - 220,447
32,463,954
25,278,907 - 65,041,148
$25,278,907 $ 17,872,532 $126,237,605
► The accompanying notes to fianacial statements are an integral part of this statement.
5
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TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES TN FUND BALANCES-
1 ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30,2001
Totals
Special Debt Capital (Memorandum
General Revenue Service Projects Only)
Revenues
Taxes $ 6,429,157 $ - $ - $ - $ 6,429,157
Intergovernmental 5,774,770 2,077,702 - 476,436 8,328,908
Fines and forfeitures 225,409 108,346 - - 333,755
Licenses and permits 1,749,793 26,472 - - 1,776,265
Charges for services 339,592 .48,065 - - 387,657
Contributions and donations 2,752 1,033 - - 3,785
Special assessments - - 1,399,574 1,689,458 3,089,032
Interest 638,441 218,702 108,572 791,517 1,757,232
Other 61,071 70,579 - 41,076 172,726
Total Revenues 15,220,985 2,550,899 1,508,146 2,998,487 22,278,517
Expenditures
f Current
General government 7,256,133 639 - - 7,256,772
Public safety 7,193,831 153,911 - - 7,347,742
Highways and streets - 2,924,119 - - 2,924,119
Culture and recreation 1,193,846 - - - 1,193,846
Capital outlay - - - 3,628,630 3,628,630
Debt service
1 Principal retirement - - 1,120,000 - 1,120,000
Interest and fiscal charges - - 608,364 8,516 616,880
Bond issuance costs - - 800,879 - 800,879
Total Expenditures 15,643,810 3,078,669 2,529,243 3,637,146 24,888,868
Excess of revenues over(under)expenditures (422,825) (527,770) (1,021,097) (638,659) (2,610,351)
Other financing sources(uses)
Operating transfers in 238,269 - 592,906 1,112,329 1,943,504
Operating transfers out (1,705,235) - - (238,269) (1,943,504)
Proceeds from sale of bonds 2,450,553 - 1,157,157 9,063,750 12,671,460
Total other financing sources(uses) 983,587 - 1,750,063 9,937,810 12,671,460
Excess of revenues and other sources
over(under)expenditures and other uses 560,762 (527,770) 728,966 9,299,151 10,061,109
Fund balance,beginning of year 10,666,101 2,868,278 200,836 9,237,320 22,972,535
Fund balance,end of year $ 11,226,863 $ 2,340,508 $ 929,802 $18,536,471 $33,033,644
The accompanying notes to financial statements are an integral part of this statement.
7
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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 30,2001 II
III
I
General Special Revenue 4
Variance Variance I
Favorable Favorable 41
Budget Actual (Unfavorable) Budget Actual (Unfavorable) ,
Revenues III
Taxes
$ 5,857,000 $ 6,429,157 $ 572,157 $ - $ - $ -
Intergovernmental 5,676,604 5,774,770 98,166 1,987,176 2,077,702 90,52611
Fines and forfeitures 220,000 225,409 5,409 40,000 108,346 68,346 I and permits 2,002,300 1,749,793 (252,507) 17,000 26,472 9,472
Charges for services 272,800 339,592 66,792 23,800 48,065 24,265
4
Contributions and donations 200 2,752 2,552 - 1,033 1,033 !
Special assessments - -
638 441
Interest 275,000 363,441 57,000 173,481 116,481
Other29,000 61,071 32,071 1,800 70,579 68,779 1
Total Revenues 1443332,_ 15,220,985 888,081 2,126,776 2,505,678 378,902
Expenditures I
Current 1
General government 14,271,974 7,256,133 7,015,841 5,852 629 5,223 I
Public safety 7,700,411 7,193,831 506,580 218,422 153,911 64,511
Highways and streets - - - 4,182,543 2,924,119 1,25 8,424 I
Culture and recreation 1,245,707 1,193,846 51,861 - - - ,
Capital Outlay - - - - - -
4
Debt service
Principal retirement - - - - -
1
Interest and fiscal charges - - - - - - 1
Bond issuance costs - - - -
Total Expenditures 23,218,092 15,643,810 7,574,282 4,406,817 3,078,659 1,328,158 4
1
Excess of revenues over(under)expenditures (8,885,188) (422,825) 8,462,363 (2,280,041) (572,981) 1,707,060 '
Other financing sources(uses) 1
Operating transfers in 144,000 238,269 94,269 - - -
Operating transfers out (2,248,226) (1,705,235) 542,991 -
Proceeds from sale of bonds 2,700,000 2,450,553 (249,447)
Total other financing sources(uses) 595,774 983,587 387,813 - - - 4
4
Excess of revenues and other sources
over(under)expenditures and other uses (8,289,414) 560,762 8,850,176 (2,280,041) (572,981) 1,707,060 4
I
Fund balance,beginning of year 8,289,414 10,666,101 2,376,687 2,280,041 2,672,577 392,536
Fund balance,end of year $ - $ 11,226,863 $11,226,863 $ - $ 2,099,596 $, 2,099,596
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Debt Service Capital Projects
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
$ - $ - $ - $ - $ - $ -
- - - 2,000,000 476,436 (1,523,564)
-
- - - 3,612,680 1,689,458 (1,923,222)
11,000 24,830 13,830 294,125 789,551 495,426
- - - - 41,076 41,076
11,000 24,830 13,830 5,906,805 2,996,521 (2,910,284)
- - - 26,225,242 3,571,879 22,653,363
366,218 295,000 71,218 - - -
523,656 324,311 199,345 - 8,516 (8,516)
► 309,100 202,030 107,070 - - -
E 1,198,974 821,341 377,633 26,225,242 3,580,395 22,644,847
1 (1,187,974) (796,511) 391,463 (20,318,437) (583,874) 19,7341563
888,226 592,906 (295,320) 1,115,400 1,112,329 (3,071)
- - - - (144,000) (144,000)
100,000 208,536 108,536 11,515,000 9,063,750 (2,451,250)
988,226 801,442 (186,784) 12,630,400 10,032,079 (2,598,321)
(199,748) 4,931 204,679 (7,688,037) 9,448,205 17,136,242
199,748 200,836 1,088 7,688,037 9,088,266 1,400,229
$ - $ 205,767 $ 205,767 $ - $18,536,471 $18,536,471
The accompanying notes to financial statements are an integral part of this statement.
9
f
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENSES AND CHANGES IN
RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30,2001
Enterprise
Operating revenues
Charges for sales and services $ 7,190,584
Total operating revenues 7,190,584 1
Operating expenses
Costs of sales and services 3,163,858
Depreciation _ 1,300,504 4
Total operating expenses 4,464,362 ,
Operating income 2,726,222 1
P g
Nonoperating revenues(expenses)
Interest revenue 509,697
Interest expense (1,642,861) 4
Issuance costs (52,181)
Other 24,468
Total nonoperating revenues(expenses) (1,160,877)
41
Net income 1,565,345 i
Retained earnings,beginning of year 2,229,262 4
g g
4
Retained earnings,end of year $ 3,794,607
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The accompanyingnotes to financial statements are an integral part of this statement.
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TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF CASH FLOWS-ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30,2001
Enterprise
INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities
Cash received from customers $ 7,221,418
Cash payments to employees for services (1,101,893)
Cash payments to suppliers for goods/services (1,625,181)
1 Nonoperating revenues 24,468
Customer deposits received (65,460)
Net cash provided(used)by operating activities 4,453,352
Cash flows from capital and related financing activities
Acquisition of capital assets (3,323,565)
Principal paid on capital leases (11,915)
Interest paid on capital leases (516)
Principal paid on revenue bonds (475,000)
Interest paid on revenue bonds (1,5 89,3 84)
Bond issuance costs on revenue bonds (180,341)
Revenue bond proceeds 5,647,468
Net cash provided(used)for capital and related financing activities 66347
Cash flows from investing activities
Interest 513,129
Net cash provided by investing activities 513,129
Net increase(decrease)in cash and cash equivalents 5,033,228
Cash and cash equivalents at beginning of year 8,543,686
Cash and cash equivalents at end of year $ 13,576,914
I RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET
Cash and investments per the balance sheet $ 5,094,713
Restricted assets 8,482,201
Total $ 13,576,914
1 (Continued)
The accompanying notes to financial statements are an integral part of this statement.
11
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TOWN OF ORO VALLEY,ARIZONA 111
COMBINED STATEMENT OF CASH FLOWS-ALL PROPRIETARY FUND TYPES '
YEAR ENDED JUNE 30,2001
II
II
Enterprise
(Concluded) 111
I
RECONCILIATION OF OPERATING INCOME TO NET CASH IPROVIDED BY OPERATING ACTIVITIES
111
Operating income $ 2,726,222 ,
Adjustments to reconcile operating income to net cash I
provided by operating activities
Depreciation 1,300,504
•
Nonoperating revenues 24,468
(Increase)decrease in operating assets 1
Accounts receivable 36,351 1
Prepaid expenses 36 ,
Increase(decrease)in operating liabilities ,
Accounts payable 413,179
Accrued payroll 19,311
4
Intergovernmental payable (5,517) '
Compensated absences payable 4,258
Customer deposits (65A60)
4
Net cash provided(used)by operating activities $ 4,453,352 4
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NON-CASH INVESTING,CAPITAL AND FINANCING ACTIVITIES 4
Bond issuance costs of$52,181 were amortized during the year. The Town also issued$5,647,468 of II
revenue bonds. The issuance costs of these bonds$180,341 have been deferred and will be amortized II
over the life of the bond.
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The accompanying notes to financial statements are an integral part of this statement.
4
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TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The general-purpose financial statements of the Town of Oro Valley, Arizona (Town)
conform to 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 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
111
I
TOWN OF ORO VALLEY, ARIZONA II
NOTES TO FINANCIAL STATEMENTS 1
FISCAL YEAR ENDED JUNE 30, 2001 II
I
I
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd) I
I
Fund Accounting - The accounts of the Town are organized on the basis of funds and 4111
account groups, each of which is considered a separate accounting entity. The I
operations of each fund are accounted for with a separate set of self-balancing accounts 1
that comprise its assets, liabilities, fund equity, revenues and expenditures, as 4
appropriate. Government resources are allocated to and accounted for in individual 4
funds based upon the purposes for which they are to be spent and the means by which 4
spending activities are controlled. The various funds are grouped, in the financial I
statements in this report, into generic fund types and broad categories as follows: I
I
Governmental Funds 4
I
General Fund - The General Fund is the general operating fund of the Town. It is used 1
to account for all financial resources except those required to be accounted for in 4
another fund. 4
4
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds 4
of specific revenue sources (other than special assessments, expendable trusts, or major 4
capital projects)that are legally restricted to expenditures for specified purposes. 4
4
Debt Service Funds - The Debt Service Funds account for the accumulation of 4
resources for, and the payment of, general long-term debt principal, interest and related 4
costs. 4
Capital Projects Funds - The Capital Projects Funds are used to account for the 4
acquisition and construction of major capital facilities other than those financed by 4
proprietary funds and trust funds. 4
4
Proprietary Fund 4
4
Enterprise Fund - The Enterprise Fund is used to account for operations (a) that are
financed and operated in a manner similar to private business enterprises--where the 4
intent of the governing body is that the costs (expenses, including depreciation) of 4
providing goods or services to the general public on a continuing basis be financed or I
recovered primarily through user charges; or (b) where the governing body has decided 4
that periodic determination of revenues earned, expenses incurred, and/or net income is 4
appropriate for capital maintenance, public policy, management control, accountability, 4
or other purposes. 4
4
I
1
1
1
14 4
4
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING 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 30,2001
1
t
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
1
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 41
unexpended bond proceeds. 1
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 1
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). A
1
4. Expenditures may not legally exceed the locally adopted expenditure limitation of 4
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. 1
The Town Manager, subject to Town Council approval, may at any time transfer 1
various unencumbered appropriation balances or portions thereof between a 1
department or activity. The adopted budget cannot be amended in any way 1
without Town Council approval. 1
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 4
limitation is applied to the total of the combined funds. The Town complied with this 4
4
law during the year.
16
4
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE ] - SUMMARY OF SIGNIFICANT ACCOUNTING 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, numerous
transactions occur between individual funds for goods provided or services rendered.
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, 2001, 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
1
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
1
1
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
1
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. 1
1
Property, plant and equipment acquired for proprietary funds is capitalized in the �
respective funds to which it applies. �
1
Assets in the general fixed assets account group are not depreciated. Depreciation of 1
buildings, equipment and vehicles in the proprietary fund types is computed using the �
straight-line method. �
1
Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The �
amount of interest capitalized was calculated by offsetting interest expense incurred 1
from the date of the borrowing until completion of the project with interest earned on �
invested proceeds over the same period. �
J
Fund Equity - The unreserved fund balances for governmental funds represent the 1
amount available for budgeting future operations. The reserved fund balances for 1
governmental funds represent the amount that has been legally identified for specific 1
purposes. Designations of fund balance represent tentative management plans that are
subject to change. Unreserved retained earnings for proprietary funds represent the net 1
assets available for future operation or distribution. 4
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 4
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, 2001
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.
i
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 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 Council $ 2,795
Parks and Recreation 20,685
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, 2001 411
I
I
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
g
Treasurer's Local Government Investment Pool.
Cash and investments at June 30, 2001 consist of the following:
Cash on hand
$ 2,850
bank in b nk 22,813,734
with the County y Treasurer 264,259
State Treasurer's Investment Pool 26,556,857
i
Total cash and investments 49,637,700
Restricted assets (8,482,201) 4
Total cash and investments on the
combined balance sheet $ 41,155,499 4
I
The Town's deposits as of June 30, 2001 were entirely insured or collateralized with 1
securities held by the Town's custodial bank in the Town's name. 4
The Town's investments at June 30, 2001 consisted of shares in the State Treasurer's 4
investmentP ool. 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 4
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
P
from investments purchased with such pooled monies is allocated to each of the funds
based on the average monthly balance.
1
1
NOTE 4 - RESTRICTED ASSETS
Restricted assets in the Enterprise Fund at June 30, 2001 consisted of the following:
Enterprise Fund 1
Future debt service $ 2,287,940 1
Customer deposits 94,730
Construction accounts 6,099,531
$ 8,482,201
4
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
►
►
NOTE S - CHANGES IN GENERAL FIXED ASSETS
A summary of the changes in general fixed assets follows.
Balance Completed Balance
July 1, 2000 Additions Deletions Construction June 30, 2001
Land and improvements $ 7,192,250 $ 2,860,040 $ -0- $ -0- $ 10,052,290
Buildings and
improvements 8,493,683 1,287,698 -0- -0- 9,781,381
Furniture and equipment 2,334,794 258,812 (69,321) -0- 2,524,285
Vehicles 2,007,681 413,249 -0- -0- 2,420,930
Construction in Progress 70,629 429,392 -0- -0- 500,021
Total $ 20,099,037 $ 5,249,191_ $ (69,321) $ -0- $ 25,278,907
Estimated cost to complete construction in progress at June 30, 2001 was $4,499,979.
►
NOTE 6 -PROPRIETARY FUND FIXED ASSETS
The following is a summary of proprietary fund fixed assets at June 30, 2001:
Land $ 103,691
Water system 30,879,546
Equipment and vehicles 854,369
Water rights 762,361
Construction in progress 2,030,802
Less: accumulated depreciation (6,150,170)
Net fixed assets $ 28,480,599
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, 2001 was
$9,244,198.
21
U
II
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS II
FISCAL YEAR ENDED JUNE 30, 2001 III
i
II
NOTE 7 - OBLIGATIONS UNDER CAPITAL LEASES
Duringthe fiscalyear, the Town paid off all outstanding capital leases. A summary of
II
1
the changes in capital lease obligation follows. II
General Balance
Balance 1
Long-term Debt July 1, 2000 Increase
Reduction June 30, 2001 1
1
Furniture and equipment $ 17,781 $ -0- $ (17,781) $ -0- 41
I
Balance Balance I
Enterprise Fund July 1, 2000 Increase Reduction June 30,2001 4
- - (11,915) $ -0- �
E uipment $ 11,915 $ 0 $q4
I
NOTE 8-REVENUE BONDS PAYABLE
41
Revenue bonds payable at June 30, 2001 consisted of the outstanding revenue bonds
presented below. The bonds are callable with interest payable semiannually. 1
Principal and interest requirements at June 30, 2001 were as follows. 4
General Long-term Debt
I
Outstanding Outstanding
Interest Principal Principal 4
Description Rates(%) Maturity July 1, 2000
Issues Retirements June 30, 2001 1
1
MPC, Excise Tax Revenue 1
Bonds, Series 1999 4
3.5%-4.5% 1/1/01-09 $ 1,625,000 $ -0- $ (140,000) $ 1,485,000
Excise Tax Revenue
4
Bonds, Series 2000
4
4.4/0_5.5/0 oo 7/1/01-20 -0- 2,580,000 -0- 2,580,000 1
4
Excise Tax Revenue 1
Bonds, Series 2001 1
3.25%-5.0%7/1/01-20 -0- 3,362,532 -0- 3,362,532 4
Water Development
4
Fee Revenue Bonds,
1
_ 7/1/01-08 -0-
Series 2000 6.1 /0 6.4/0 6,770,000 -0- 6,770,000 1
1
$ 1,625,000 $ 12,712,532 $ (140,000) 14,197,532 1
1
Less: Amounts transferred to Debt Service Fund
To retire bonds payable on July 1, 2001 (825,000) i
$ 13,372,532 i
22 I
1
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 8 -REVENUE BONDS PAYABLE (Conci'd)
Enterprise Funds
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 2000 Issues Retirements June 30, 2001
MPC,Water
System Acquisition,
1996 4.25%-5.6%7/1/00-26 $ 27,625,000 $ -0- $ (350,000) $ 27,275,000
MPC, Excise Tax Revenue
Bonds, Series 1999
3.5%-5.0% 1/1/01-19 3,190,000 -0- (125,000) 3,065,000
Excise Tax Revenue
Bonds, Series 2001
3.25%-5.0%7/1/01/20 -0- 5,647,468 -0- 5,647,468
$ 30,815,000 $ 5,647,468 $ (475,000) 35,987,468
Less: unamortized discount (415,730)
Total long-term bonds payable $ 35,571,738
Revenue bond debt service requirements to maturity, including $5,936,995 and
$27,737,861 of general long-term debt and enterprise fund interest, respectively, are as
follows:
General
Long-term Debt Enterprise
Year ending June 30:
2002 $ 1,233,382 $ 2,631,642
2003 1,093,640 2,643,824
2004 2,668,964 2,631,944
2005 957,742 2,632,457
2006 957,080 2,636,726
Thereafter 12,398,719 50,133,006
$ 19,309,527 $ 63,309,599
23
4
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS 4
FISCAL YEAR ENDED JUNE 30,2001 4
i
t
NOTE 9- CERTIFICATES OF PARTICIPATION �
1
Certificates of Participation payable at June 30, 2001 consisted of the amounts �
presented below. They are callable with interest payable semiannually. Principal and �
interest requirements at June 30, 2001, were as follows.
1
Outstanding Outstanding 1
Interest Principal Principal �
Description Rates(%) Maturity July 1, 2000 Retirements June 30, 2001 �
Certificates of Participation,
Series 1996 4.625%-5.75% 7/1/00-2017 $ 4,655,000 $ (155,000) $ 4,500,000
1
Debt service requirements to maturity, including $2,519,785 of interest, are as follows:
1
Year ending June 30: 1
2002 $ 405,938
2003 407,994
2004 409,350
2005 410,005 41
2006 414,881 �
Thereafter 4,971,617
$ 7,019,785
1
NOTE 10-INTERFUND RECEIVABLES AND PAYABLES
As of June 30, 2001, interfund receivables and payables that resulted from various �
interfund transactions were as follows:
Due from Due to
Other Funds Other Funds �
General Fund $ 1,204,147 $ -0- 1
Special Revenue Funds: �
HURF -0- 37,988 1
Federal Seizures and Forfeitures -0- 75,952 �
Public Transportation -0- 275,965 �
Debt Service Funds: �
Municipal Debt Service -0- 814,242 �
1
$ 1,204,147 $ 1,204,147
1
24
1
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 10-INTERFUND RECEIVABLES AND PAYABLES(Conci'd)
As of June 30, 2001, 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, 2000 $ 2,589,698
Current year increases:
Developer Contributions 354,742
Current year decreases:
Developer refund (10,450)
Contributed capital June 30, 2001 $ 2,933,990
25
4
TOWN OF ORO VALLEY,ARIZONA 4
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
1
i
NOTE 12 -BUDGETARY BASIS OF ACCOUNTING
1
Budgets for the Industrial Development Authority and the Revegetation Assurances 4
Special Revenue, the Oro Valley Water Connection Fee Debt Service and the CDO
Riverfront Park Capital Projects Funds were not prepared. The following summaries
are 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 4
Fund Balance
Total at Beginning4
Total
p
Revenues
Expenditures of Year
Combined Statement of Revenues,
i 1
Expenditures and Changes n
4
Fund Balances $ 2,550,899 $ 3,078,669 $ 2868>278
t
Less: funds with no adopted budget (45,221) (10) (195,701) 1
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances -Budget and
Actual $ 2,505,678 $ 3,078,659 $ 2,672,577 4
Debt Service
Other 4
Financing Fund Balance 1
Total Total Sources at Beginning 1
Revenues Expenditures and Uses of Year 1
Combined Statement of Revenues,
Expenditures and Changes in 4
p
Fund Balances $ 1,508,146 $ 2,529,243 $ 1,750,063 $ 200,836 i
Less: fund with no adopted budget (1,483,316) (1,707,902) (948,621) -0-
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balance- Budget and
Actual $ 24,830 $ 821,341 $ 801,442 $ 200,836
26
►
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 12 -BUDGETARY BASIS OF ACCOUNTING (Conci'd)
Capital Projects
Other
Financing Fund Balance
Total Total Sources at Beginning
► Revenues Expenditures and Uses of Year
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances $ 2,998,487 $ 3,637,146 $ 9,937,810 $ 9,237,320
Less: funds with no adopted budget (1,966) (56,751) 94,269 (149,054)
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balance - Budget and
Actual $ 2,996,521 $ 3,580,395 $ 10,032,079 $ 9,088,266
NOTE 13 - CONTINGENT LIABILITIES
Accumulated Sick Leave - Sick leave benefits provide for ordinary sick pay and are
cumulative but do not vest with employees. Therefore, sick leave is not accrued.
Unvested accumulated sick leave of Town employees at June 30, 2001, totaled
$1,139,372.
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. No
significant reduction in insurance coverage occurred during the year and no
settlements exceeded insurance coverage during any of the past three fiscal years.
The Arizona Municipal Risk Retention Pool is structured such that member premiums
are based on an actuarial review that will provide adequate reserves to allow the pool
to meet its expected financial obligations. The pool has the authority to assess its
members additional premiums should reserves and annual premiums be insufficient to
meet the pool's obligations.
27
I
I
TOWN OF ORO VALLEY, ARIZONA I
NOTES TO FINANCIAL STATEMENTS 4
FISCAL YEAR ENDED JUNE 30, 2001 4
I
t
NOTE 14 -RISK MANAGEMENT(Concl'd) 1
I
The Town is insured by Arizona Municipal Workers Compensation Pool for potential 41
worker related accidents. The Town is self-insured for unemployment insurance. 1
Changes in the balances of claims liabilities during the past two years are as follows: 1
I
Year Ended June 30, I
2001 2000 1
I
Unpaid claims,beginning of year $ -0- $ -0- I
Incurred claims (including IBNRs) 4,573 4,357 I
Claim payments (4,573) (4,357) I
1
Unpaid claims, end of year $ -0- $ -0- 4
I
NOTE 15 -DEFINED CONTRIBUTION PENSION PLAN I
1
All non-peace officers and certain part-time employees of the Town participate in a 1
defined contribution pension plan administered by the ICMA Retirement Corporation I
as a 401(a) plan. The payroll for Town employees covered by this plan for the year 1
ended June 30, 2001 was $5,261,651. The Town's total payroll was $8,772,920. I
1
A defined contribution pension plan provides benefits in return for services rendered, 4
provides an individual account for each participant, and specifies how contributions to i
the individual's account are to be determined instead of specifying the amount of �
I
benefit the individual is to receive. Under a defined contribution pension plan, the 4
benefits a participant will receive depend solely on the amount contributed to the
4
participant's account, the returns earned on investments of those contributions, and 4
forfeitures of other participants' benefits that may be allocated to such participant's 4
account. All non-peace officer full-time Town employees must participate in the 1
pension plan six months from the date they are hired. Contributions made by an 4
employee vest immediately and contributions made by the Town vest after one year of I
service. 1
An employee that leaves the employment of the Town is entitled to his or her 4
contributions and the vested portion of the Town's contributions, plus interest earned. I
Each employee must contribute 5.0% of his or her gross earnings. The Town must I
contribute 7.0% of covered earnings. During fiscal year 2000-01 the required and I
actual contributions amounted to $368,316. The employees' contributions totaled 4
1
$263,083. i
1
i
7
28 i
1
4
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2001
NOTE 15 -DEFINED CONTRIBUTION PENSION PLAN
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 2000-01 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 - 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.
Annual Pension Cost - During the year ended June 30, 2000 (the date of the last
available information), the Town's annual pension cost of $186,368 for police was
equal to the Town's required and actual contributions.
The required contribution was determined as part of the June 30, 2000 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.
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TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS 1
FISCAL YEAR ENDED JUNE 30, 2001
1
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NOTE 16- RETIREMENT AND PENSION PLANS(Concl'd)
4
The actuarial value of the Town's assets was determined using techniques that smooth 4
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
pg projected e of payroll on a closed basis. The remaining amortization period
at June 30, 2000,was 20 years.
1
Thep receding methods comply with the financial reporting standards established by 4
the Governmental Accounting Standards Board. 1
Three-Year Trend Information 4
1
Police
Fiscal Annual 4
Year Ended Pension Percent Net Pension
June 30, Cost (APC) Contributed Obligation 1
1998 $ 163,685 100% $ -0-
1999 174,091 100 -0-
2000 186,368 100 -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.
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1 REQUIRED SUPPLEMENTARY INFORMATION
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TOWN OF ORO VALLEY,ARIZONA 4
REQUIRED SUPPLEMENTARY INFORMATION 1
PUBLIC SAFETY PERSONNEL RETIREMENT SYSTEM 1
ANALYSIS OF FUNDING PROGRESS 1
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Schedule of Funding Progress 1
Police 1
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Entry Age Unfunded AAL II
Valuation Actuarial Actuarial Annual as a Percentage 4
Date Value of Accrued Unfunded Funded Covered of Covered 4
June 30, Assets Liability(AAL) AAL Ratio Payroll Payroll 4
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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 4
1998 2.,772,586 3,067,826 295,240 90.4 1,890,076 15.6 4
1999 3,623,182 3,956,207 333,025 91.6 2,143,829 15.5 1
2000 4,583,291 4,862,212 278,921 94.3 2,493,062 11.2 1
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Combining, Individual Fund and Account Group
Statements and Schedules
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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.
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TOWN OF ORO VALLEY,ARIZONA 4
GENERAL FUND ,
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001 I
Variance I
Favorable 4
Budget Actual (Unfavorable)
Revenues
Taxes $ 5,857,000 $ 6,429,157 $ 572,157
Intergovernmental 5,676,604 5,774,770 98,166 '
Fines and forfeitures 220,000 225,409 5,409
Licenses and permits 2,002,300 1,749,793 (252,507) 4
Charges for services 272,800 339,592 66,792 4
Contributions and donations 200 2,752 2,552
Interest 275,000 638,441 363,441
Other 29,000 61,071 32,071 1
Total Revenues 14,332,904 15,220,985 888,081
Expenditures
Current
General government 4
Town Council 107,552 110,347 (2,795)
Town Clerk 225,355 219,042 6,313 1
Magistrate Court 429,646 416,121 13,525 4
Town Manager 263,308 239,801 23,507 ,
Finance 371,370 363,287 8,083
Legal 551,887 502,619 49,268 4
Planning and Zoning 1,455,320 1,189,820 265,500 '
General Administration 9,704,470 3,157,819 6,546,651
Custodial Facility Maintenance 120,297 119,422 875 4
Economic Development 311,599 289,374 22,225 4
Community Development Administration 366,533 304,782 61,751 '
Human Resources 191,244 185,580 5,664
Information Systems 173,393 158,119 15,274 4
Total General government 14,271,974 7,256,133 7,015,841 4
Public safety
Police 6,527,887 6,187,434 340,453 4
Building safety 1,172,524 1,006,397 166,127 4
Total Public safety 7,700,411 7,193,831 506,580 '
Culture and recreation 4
Parks and Recreation 1,107,067 1,127,752 (20,685)
Library 138,640 66,094 72,546 4
Total Culture and recreation 1,245,707 1,193,846 51,8614
Total Expenditures 23,218,092 15,643,810 7,574,282 '
Excess of revenues over(under)expenditures (8,885,188) (422,825) 8,462,363 4
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Other financing sources(uses)
Operating transfers in 144,000 238,269 94,269 4
Operating transfers out (2,248,226) (1,705,235) 542,991 I
Proceeds from sale of bonds 2,700,000 2,450,553 (249,447) 1
Total other financing sources(uses) 595,774 983,587 387,813
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Excess of revenues and other sources
over(under)expenditures and other uses (8,289,414) 560,762 8,850,176 '
Fund balance,beginning of year 8,289,414 10,666,101 2,376,687
Fund balance,end of year $ - $ 11,226,863 $11,226,863
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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.
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TOWN OF ORO VALLEY,ARIZONA 4
SPECIAL REVENUE FUNDS '
COMBINING BALANCE SHEET
AS OF JUNE 30,2001
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Development Revegetation Seizures and Seizures and Public !
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
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Assets 4
Cash and investments $ 1,710,712 $ 210 $ 880,296 $ 29,340 $ 236,814 $ 516,383 $ 3,373,755
Intergovernmental receivable 200,429 - - - - 21,383 221,812 I
Interest receivable 8,420 1 3,725 15 - 1,210 13,371 4
Total Assets $ 1,919,561 $ 211 $ 884,021 $ 29,355 $ 236,814 $ 538,976 $ 3,608,938 ,
Liabilities and Fund Balance I
Liabilities
Accounts payable $ 142,928 $ - $ - $ 4,275 $ 438 $ 11,066 $ 158,707
Accrued wages and benefits 30,795 - - - 2,189 6,347 39,331
Intergovernmental payable 20 - - - 68 - 88 1
Due to other funds 37,988 - - - 75,952 275,965 389,905 4
Customer deposits - - 643,320 - - - 643,320 t
Deferred revenue 2,454 - - 3,519 - - 5,973
Compensated absences payable 25,435, - - - 627 5,044 31,106 4
Total Liabilities 239,620 - 643,320 7,794 79,274 298,422 1,268,430 4
Fund balances 4
Unreserved,designated 4
for unemployment 23,056 - - - - 2,079 25,135 ,
Unreserved,undesignated 1,656,885 211 240,701 21,561 157,540 238,475 2,315,373
Total Fund Balance 1,679,941 211 240,701 21,561 157,540 240,554 2,340,508 4
Total Liabilities and Fund Balance $ 1,919,561 $ 211 $ 884,021 $ 29,355 $ 236,814 $ 538,976 $ 1608,938 4
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TOWN OF ORO VALLEY,ARIZONA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2001
Industrial State Federal
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Revenues
Intergovernmental $ 1,830,465 $ - $ - $ - $ - $ 247,237 $ 2,077,702
Fines and forfeitures - - - 5,507 102,839 - 108,346
Licenses and permits 26,472 - - - - - 26,472
Charges for services 21,113 - - - - 26,952 48,065
Contributions and donations - - - - - 1,033 1,03
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Interest 140,344 15 45,206 3,504 13,910 15,723 218,702
Other 69,525 - - - - 1,054 70,579
Total Revenues 2,087,919 15 45,206 9,011 116,749 291,999 2,550,899
Expenditures
Current
General government - 10 - 629 - - 639
Public safety - - - 16,224 137,687 - 153,911
Highways and streets 2,683,498 - - - - 240,621 2,924,119
Total Expenditures 2,683,498 10 - 16,853 137,687 240,621 3,078,669
Excess of revenues over(under)
expenditures (595,579) 5 45,206 (7,842) (20,938) 51,378 (527,770)
Fund balance,beginning of year 2,275,520 206 195,495 29,403 178,478 189,176 2,868,278
Fund balance,end of year $ 1,679,941 $ 211 $ 240,701 $ 21,561 $ 157,540 $ 240,554 $ 2,340,508
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411
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TOWN OF ORO VALLEY,ARIZONA
HURF FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,200141
I
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 1,729,000 $ 1,830,465 $ 101,465
Licenses and permits 17,000 26,472 9,472 4
Charges for services 5,800 21,113 15,313
Interest 50,000 140,344 90,344
Other 1,800 69,525 67,725 1
Total Revenues 1,803,600 2,087,919 284,319 1
Expenditures
Current
Highways and streets 3,741,667 2,683,498 1,05 8,169
Total Expenditures 3,74 1,667 2,683,498 1,058,169
Excess of revenues over(under)expenditures (1,938,067) (595,579) 1,342,488 4
Fund balance,beginning of year 1,93 8,067 2 337 453,275,520 '
Fund balance,end of year $ - $ 1,679,941 $ 1,679,941
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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 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 10,000 $ 5,507 $ (4,493)
Interest - 3,504 3,504
Total Revenues 10,000 9,011 (989)
Expenditures
Current
General government 5,852 629 5,223
Public safety 13,762 16,224 (2A62)
Total Expenditures 19,614 16,853 2,761
Excess of revenues over(under)expenditures (9,614) (7,842) 1,772
Fund balance,beginning of year _ 9,614 _ 29,403 19,789,
Fund balance,end of year $ - $ 21,561 $ 21,561
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TOWN OF ORO VALLEY,ARIZONA
FEDERAL SEIZURES AND FORFEITURES FUND - ISTATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,20014
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Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 30,000 $ 102,839 $ 72,839
Interest - 13,910 13,910
Total Revenues 30,000 116,749 86,749 1
Expenditures
Current 1
Public safety 204,660 137,687 66,973
Total Expenditures 204,660 137,687 66,973
Excess of revenues over(under)expenditures (174,660) (20,938) 153,722 41
478 3,818
Fund balance,beginning of year 174,660 178,
Fund balance,end of year $ - $ 157,540 $ 157,540
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TOWN OF ORO VALLEY,ARIZONA
PUBLIC TRANSPORTATION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
( BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 258,176 $ 247,237 $ (10,939)
Charges for services 18,000 26,952 8,952
Contributions and donations - 1,033 1,033
Interest 7,000 15,723 8,723
1 Other - 1,054 1,054
Total Revenues 283,176 291,999 8,823
Expenditures
Current
Highways and streets 440,876 240,621 200,255
Total Expenditures 440,876 240,621 200,255
Excess of revenues over(under)expenditures (157,700) 51,378 209,078
Fund balance,beginning of year 157,700 189,176 31,476
Fund balance,end of year $ - $ 240,554 $ 240,554
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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.
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TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2001
Oro Valley Water 1
Municipal Connection Fee
Debt Service Debt Service Totals i
Assets
Cash and investments $ 1,037,251 $ 2,084,238 $ 3,121,489
Interest receivable 2,215 8,566 10,781
Total Assets $ 1,039,466 $ 2,092,804 $ 3.1 32,270
Liabilities and Fund Balance
Liabilities
Interest payable $ 19,457 $ 213,040 $ 232,497
Due to other funds 814,242 - 814,242
Advances from other funds - 330,729 330,729
Revenue bonds payable - 825,000 825,000 41Total Liabilities 833,699 1,368,769 2,202,468
Fund balances
Unreserved,undesignated 205,767 724,035 929,802
Total Fund Balance 205,767 724,035 929,802
Total Liabilities and Fund Balance $ 1,039,466 $ 2,092,804 $ 3,132,270 4
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TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2001
Oro Valley Water
Municipal Connection Fee
Debt Service Debt Service Totals
Revenues
Special assessments $ - $ 1,399,574 $ 1,399,574
Interest 24,830 83,742 108,572
Total Revenues 24,830 1,483,316 1,508,146
Expenditures
Debt service
Principal retirement 295,000 825,000 1,120,000
Interest and fiscal charges 324,311 284,053 608,364
Bond issuance costs 202,030 598,849 800,879
Total Expenditures 821,341 1,707,902 2,529,243
Excess of revenues over(under)expenditures (796,511) (224,5 86) (1,021,097)
Other financing sources(uses)
Operating transfers in 592,906 - 592,906
Proceeds from sale of bonds 208,536 948,621 1,157,157
Total other financing sources(uses) 801,442 948,621 1,750,063
Excess of revenues and other sources
over(under)expenditures and other uses 4,931 724,035 728,966
Fund balance,beginning of year 200,836 - 200,836
Fund balance,end of year $ 205,767 $ 724,035 $ 929,802
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TOWN OF ORO VALLEY,ARIZONA 1
MUNICIPAL DEBT SERVICE FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL 4
YEAR ENDED JUNE 30,2001 1
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Variance
Favorable
Budget Actual (Unfavorable) 4
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Revenues
Interest $ 11,000 $ 24,830 $ 13,830
Total Revenues 11,000 24,830 13,830
Expenditures
Debt service
Principal retirement 366,218 295,000 71,218 1
Interest and fiscal charges 523,656 324,311 199,345
Bond issuance costs 309,100 202,030 107,070
Total Expenditures 1,198,974 821,341 377,633
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Excess of revenues over(under)expenditures (1,187,974) (796,511) 391,463 S
Other financing sources(uses) 4
Operating transfers in 888,226 592,906 (295,320) 1
Proceeds from sale of bonds 100,000 208,536 108,536
Total other financing sources(uses) 988,226 801,442 (186,784)
Excess of revenues and other sources
over(under)expenditures and other uses (199,748) 4,931 204,679 1
Fund balance,beginning of year 199,748 200,836 1,088 4
Fund balance,end of year $ - $ 205,767 $ 205,767 4
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CAPITAL PROJECTS FUNDS
CDO Riverfront Park- accounts for the capital expenditures related to the CDO Riverfront Park.
D.W. Pool Renovation Project - accounts for the collection and capital expenditures of the D.W.
Pool Renovation Project.
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 Impact Fees - accounts for the collection and capital expenditures of the
Townwide Roadway Development Impact Fees.
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TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS '
COMBINING BALANCE SHEET
AS OF JUNE 30,2001
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CDO D.W.Pool Alternative Oro Valley
Riverfront Renovation Water Connection I
Park Project Resources Fees
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Assets 4
Cash and investments $ - $ 28,187 $ 1,588,922 $ 7,096,499
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Accounts receivable - - -
Interest receivable - - 6,725 22,124 4
Total Assets $ - $ 28,187 $ 1,595,647 $ 7,118,623 4
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Liabilities and Fund Balance
Liabilities
Accounts payable $ - $ 28,187 $ 719 $ 10,185 4
Accrued wages and benefits - - - - 1
Customer deposits - - - 4,742
Deferred revenue - - -
Total Liabilities - 28,187 719 14,927 4
Fund balances
Unreserved,undesignated - - 1,594,928 7,103,696 4
Total Fund Balance - - 1,594,928 7,103,696 I
Total Liabilities and Fund Balance $ - $ 28,187 $ 1,595,647 $ 7,118,623
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Townwide
Roadway
Library Development
Construction Impact Fees Totals
$ 3,194,777 $ 7,811,920 $19,720,305
1 - 35,000 35,000
9,674 33,063 71,586
$ 3,204,451 $ 7,879,983 $ 19,826,891
$ 143,341 $ 120,886 $ 303,318
- 12,123 12,123
r - - 4,742
1 - 970,237 970,237
143,341 1,103,246 1,290,420
3,061,110 6,776,737 18,536,471
3,061,110 6,776,737 18,536,471
1 $ 3,204,451 $ 7,879,983 $ 19,826,891
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TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS ill
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2001 4
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Riverfront Renovation Water Connection ,
Park Project Resources Fees
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Revenues 4
Intergovernmental . $ - $ - $ - $ - ill
Special assessments - - 275,526 -
Interest 1,966 - 92,070 238,606 I
Other - - - -
Total Revenues 1,966 - 367 596 238,606
Expenditures 4
Capital outlay 56,751 1,112,329 99,812 94,528id
Debt service i
Interest and fiscal charges - - - 8,516
Total Expenditures 56,751 1,112,329 99,812 103,044 4
Excess of revenues over(under)
expenditures (54,785) (1,112,329) 267,784 135,562 4
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Other financing sources(uses) '
Operating transfers in - 1,112,329 - -
Operating eratin transfers out (94,269) - - - 4
Proceeds from sale of bonds - - - 5,808,750
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Total other financing sources(uses) (94,269) 1,112,329 - 5,808,750
Excess of revenues and other sources 4
over(under)expenditures and
other uses (149,054) - 267,784 5,944,312
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Fund balance,beginning of year 149,054 - 1,327,144 1,159,384 4
Fund balance,end of year $ - $ - $ 1,594,928 $ 7,103,696 ,
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Townwide
Roadway
Library Development
Construction Impact Fees Totals
$ 311,808 $ 164,628 $ 476,436
- 1,413,932 1,689,458
21,454 437,421 791,517
- 41,076 41,076
333,262 2,057,057 2,998,487
456,524 1,808,686 3,628,630
- - 8,516
456,524 1,808,686 3,637,146
(123,262) 248,371 (638,659)
- - 1,112,329
(144,000) - (238,269)
3,255,000 - 9,063,750
3,111,000 - 9,937,810
2,987,738 248,371 9,299,151
73,372 6,528,366 9,237,320
$ 3,061,110 $ 6,776,737 $18,536,471
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TOWN OF ORO VALLEY,ARIZONA I
D.W.POOL RENOVATION PROJECT FUND - I
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL 4
YEAR ENDED JUNE 30,2001 I
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Variance
II
Favorable
Budget Actual (Unfavorable) I
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Expenditures
Capital outlay $ L115,400 $ 1,1 1 2,329 $ 3,071
Total Expenditures 1,115,400 l,112,329 3,071 4
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Excess of revenues over(under)expenditures (L115,400) (1,112329) 3,071 4
Other financing sources(uses) 4
Operating transfers in 1,115,400 1,112,329 (3,071)
4
Total other financing sources(uses) 1,115,400 1,112,329 (3,071)
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Excess of revenues and other sources 1
over(under)expenditures and other uses - - - 4
Fund balance,beginning of year - - - 4
Fund balance,end of year $ - $ - $ - 4
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4
I
1
1
1
1
1
4
1
1
1
54 1
1
1
TOWN OF ORO VALLEY,ARIZONA
ALTERNATIVE WATER RESOURCES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 261,000 $ 275,526 $ 14,526
Interest 50,000 92,070 42,070
Total Revenues 311,000 367,596 56,596
Expenditures
Capital outlay 1,404,139 99,812 1,304,327
Total Expenditures 1,404,139 99,812 1,304,327
Excess of revenues over(under)expenditures (1,093,139) 267,784 1,360,923
Fund balance,beginning of year 1,093,139 1,327,144 234,005
Fund balance,end of year $ - $ 1,594,928 $ 1,594,928
55
1
4
t
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER CONNECTION FEES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL 4
YEAR ENDED JUNE 30,2001 '
I
4
Variance
Favorable
Budget Actual (Unfavorable) 4
4
Revenues ,
Special assessments $ 1,717,800 $ - $ (1,717,800)
Interest 44,125 238,606 194,481 4
Total Revenues 1,761,925 238 606 (1,523,319) '
Expenditures
Capital outlay 11,232,897 94,528 11,138,369 4
Debt service 4
Interest and fiscal charges - 8,516 (8,516)
Total Expenditures 11,232,897 103,044 11,129 853
4
I
Excess of revenues over(under)expenditures (9,470,972) 135,562 9,606,534 4
Other financing sources(uses) 4
Proceeds from sale of bonds 8,435,000 5,808,750 (2,626,250) 4
Total other financing sources(uses) 8,435,000 5,808,750 (2,626,250)
Excess of revenues and other sources 4
over(under)expenditures and other uses (1,035,972) 5,944,312 6,980,284 4
Fund balance,beginning of year 1,035,972 1,159,384 123,412 4
Fund balance,end of year $ - $ 7,103,696 $ 7,103,696 4
4
4
4
4
4
4
1
1
1
1
1
1
1
1
4
56 1
1
1
TOWN OF ORO VALLEY,ARIZONA
LIBRARY CONSTRUCTION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2001
s Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 2,000,000 $ 311,808 $ (1,688,192)
g - 21,454 21,454
Interest
Total Revenues 2,000,000 333,262 (1,666,738)
► Expenditures
Capital outlay 5,080,000 456,524 4,623,476
p 5,080,000 456,524 4 623 476
Total Expenditures `76
Excess of revenues over(under)expenditures (3,080,000) (123,262) 2,956,738
Other financing sources(uses)
Operating transfers out - (144,000) (144,000)
p
Proceeds from sale of bonds 3,080,000 3,255,000 175,000
Total other financing sources(uses) 3,080,000 3,11 1,000 31,000
Excess of revenues and other sources
over(under)expenditures enditures and other uses - 2,987,738 2,987,738
P
Fund balance,beginning of year
- 73,372 73,372
Fund balance,end of year $ - $ 3,061,110 $ 3,061,110
1
57
1
4
TOWN OF ORO VALLEY,ARIZONA
TOWNWIDE ROADWAY DEVELOPMENT IMPACT FEES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL 4
YEAR ENDED JUNE 30,2001 4
4
4
Variance
Favorable
Budget Actual (Unfavorable) 4
'
Revenues28 4
Intergovernmental $ - $ 164,628 $ 164,6
g
Special assessments 1,633,880 1,413,932 (219,948)
200,000 437,421 237,421 4
Interest _ 41,076 411076
Other
Total Revenues 1,833,880 2,057,057 223,177
4
Expenditures
Capital outlay 4
P p 7,392,806 1,808,686 5,584,120
�
Total Expenditures 7,392,806 1,808,686 5,584,120
4
Excess of revenues over(under)expenditures (5,558,926) 248,371 5,807,297 '
366 969
528
6, , ,440 �
Fund balance,beginning of year 5,558,926 '
Fund balance,end of year $ - $ 6,776,737 $ 6,776,737
4
4
I
4
4
4
4
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4
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1
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4
58 4
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.
59
immussi
, I
TOWN OF ORO VALLEY,ARIZONA 41
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE ,
JUNE 30,2001 AND 2000
111
2001 2000
GENERAL FIXED ASSETS i
$10,052,290 $ 7,192,250 111
Land and improvements 8,493,683
Buildings and improvements 9,781,381
and equipment 2,524,285 2,334,794
Furniture2,420930 2,007,681
Vehicles '
Construction in progress -
500 021 70,629,
Total $25,278,907 $20,099,037
I
INVESTMENT IN GENERAL FIXED
ASSETS BY SOURCE
General Fund
$ 9,983,665 $ 6,486,256
Special Revenue Funds 1,573,131 1,390,174
Capital Projects Funds 11,875,664 10,376,160
p Projects
Donated Assets 1,846,447 1,846,447
$20,099,037
Total
$25,278,907
I
411 i
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1
1
1
1
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60
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4
miiriorilm
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
AS OF JUNE 30,2001
Buildings Furniture Construction
Land and and and in
Improvements Improvements Equipment Vehicles Progress Total
FUNCTION AND ACTIVITY
Generalgovernment $ 8,921,582 $ 3,689,638 $ 955,041 $ 133,318 $ 500,021 $ 14,199,600
Public safety - 1,160,844 833,900 1,517,160 - 3,511,904
Public works 355,708 56,852 479,316 513,826 - 1,405,702
Culture and recreation 775,000 4,874,047 253,980 87,074 - 5,990,101
Public Transportation - - 2,048 169,552, - 171,600
p 021 $25,278,907
Total $ 10,052,290 $ 9,781,381 $ 2,524,285 $ 2,420,930 $ 500,
61
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4
41
TOWN OF ORO VALLEY,ARIZONA 5
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY 111
FOR THE YEAR ENDED JUNE 30,2001 III
S
4
General
Fixed General Fixed 4 Assets Completed Assets II
July 1,2000 Additions Deletions Construction Adjustments June 30,2001
I
FUNCTION AND ACTIVITY 44
Land and improvements $ - $ - $ 8,921,5 82
General government $ 6,086,542 $ 2,835,040 $ -- - - I
Public works
355,708 - 355,708
- 5
775,000
Culture and recreation 750,000, 25,000 - II
Improvements 7,192,250, 2,860,040 - - - 10,052,290
Total Land and 1m p i
and improvements 1
Buildings p - - 3,689,63 8
General Government 3,613,766 75,872 - - - 1, 89,63 8
Public safety 1,152,753 8,091
4 4
Public works 2,501,143 - - - (2,444,291) 56,852 4
Culture and recreation 1,226,021 1,203,735 - - 2.444,291 4,874,047411
ins and Improvements 8,493,68 , 1,287,698 - - - 9,78 l,381
Total Buildings 3
p 1
Furniture and Equipment - 955,041
II
General Govenment 892,254 93,628 (30,841) - i
safety710,346 124,578 (1,024) - - 833,900
Public
Public works 504,452 12,320 (37,456) -
- 479,316 4
Culture and recreation 225,694 28,286 - - - 253,980 4
,
Public Transfportation 2,048 - - - 048
2
-2,334,794 258,812 (69,321) - 2,524,285
II
Total Furniture and Equipment e
Vehicles4
General -
Govenment 108,058 25,260 - - 133,318 i
Public works
Public safety 1,318,042 199,118 - -
1,517,160
351,955 161,871 - - 513,826
II
Culture and recreation 60,074 27,000 - - - 87,074
P Pi
ublic Trans ortation 169,552 - - - - 169,552
, ,
Total Vehicles 2,007,681 413,249 -
- 2 420 930 Ii
Construction in Progress - - - 500,021
General Government 70,629 429,392
Total Construction in Progress
70 629 429,392 - - - 500,021
4
TOTAL
GENERAL FIXED ASSETS $20,099,037 $ 5,249,191 $ (69,321) - - $25,278,907 4
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4
STATISTICAL SECTION
63
11
Town of Oro Valle ,Arizona 4
y
General Government Revenues by Source
Last Ten Fiscal Years
(Unaudited) 1
4
4
I
Fiscal Fines Licenses Charges Contributions
Year
Inter- and and for and Special 4 Ended Taxes Governmental Forfeitures Permits Services Donations Assessments Interest Other Total '
• 704 $ 372,203 $5,334,525
1992 $1,768,406 $ 1,624,472 $ 536,114 $759,626 $ - $ - $ - $273, - . 1
255,279 18,417 5,883,837 4
1993 2,133,813 1,689,032467,377 972,054 107,647240,218
- - ' I
_
182 122 125 119,608 265,466 7,428 6,937,523
1994 2,903,973 1,852,882 267,093 1,338,8264
1995 3,459,754 2,45
,266 266 407 933 1,275,265 224,759 800 196,663 384,742 74,723 8,479,905 4
_
1996 3,792,632 3,230,509 509 263 386 990,713 200,525 ` 7,681 _ 399,511 450,712 + 90,276 _ 9,425,945i
380 979 280,644 941,888 198,948 28,052 804,907 498,158 + 48,036 12,047,6
08 4
1997 3,865,996 5, 4
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 4
331 032. 1,411,820 239,945 2,001 2,472,834 960,231 50,902 16,767,900 4
1999 4,518,732 6,780,403 i
f167 682 344,627 1,613,798 296,801 `
2000 6,139,176 9 9,247 3,089,814 1,332,605 69,036 22,062,7 86 '
. ,
- 3,089,032 1,757,232 + 172,726 22,278,517 ' 4
2001 6,429,157 8,328,908 333,755 1 1,776,265 387,657 3,785, 1
4
Source: Oro Valley Finance Department 4
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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
SafetyStreets Recreation Outlay Judgements Service Total
1992 $1,
502 052 $1>871,058 $ 568,627 $ - $ 323,090 $ - $ 441,033 4,705,860
1993
1421059 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
2,778,347 3,670,514 1,216,141 407,484 167,662 - 398,348 8,638,496
1996 �
1
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 - 1 740,170 10,564,498
199
9 3 317,668 5,240,616 1,149,073 636,302 878,843 793,212 12,015,714
19,809,510
6 216 390 1 855,146 637,084 5,537,058 600,000 835,782
2000 4,128,050 � _ _
1 7,256,772 7,347,742 2,924,119 1,193,846 3,628,630 - 2,537,759 24,888,868
2001 _ _ _ 1
1 Source: Oro Valley Finance Department
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65
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1
Oro Valley, 1
Town of Arizona
State of Arizona Sales Tax
Information 1
Taxable Activities, Tax Rates and Distribution Shares
1
(Unaudited)
I
1
1
Tax Distribution
I
Business Activity Category Rate Share
Mg
-Severance-Severance 2.500% 80.00%
O
it and Gas, Sand and Gravel 3.125% 32.00% 1
Transportaton -Persons and Freight 5.600% 20.00%
Utilities 5.600% 20.00% 1
Communication 5.600% 20.00%
Publishing
5.600% 20.00% I
Job Printing .5600% 20.00% I
i
Private Cars/Pipelines 5.600% 20.00%
P
Prime Contracting 5.600% 20.00% �
g 20.00% 4
Restaurants and Bars
Owner Buildin s 5.600%
' 5.600% 40.00% 4
4
Amusements 5.600% 40.00%
40.00%
I
Personal Property Rentals 5.600%
p '
Retail (excluding excludin food sales) 5.600% 40.00% 4
Hotel/Motel 5.500% 50.00% 4
Membership 0 Camping 5.600% 40.00
Timbering - Severance (a) 80.00%
4
4
(a) The amount of severance tax levied on a severer engaged in the business of 4
timbering shall be: 4
4
• feet for timber products 4
(1) Two dollars thirteen cents per thousand board
that are derived from ponderosa pine. 4
4
One dollar fif -one cents per thousand board feet for timber products
(2) ty
derived from all species except ponderosa pine. 4
4
Source: Arizona Department of Revenue 1
4
1
4
4
4
4
1
1
1
1
66 1
1
1
1
Town of Oro Valley, Arizona
1 Transaction Privilege (Sales)Tax Rates by Category
1 (Unaudited)
1
1
►
Rate
Business Activity Category
Publishing 2.0%
Printing and Advertising 2.0%
1 Contracting 2.0%
Retail Sales 2.0%
► Restaurants and Bars 2.0%
1 Amusements 2.0%
Miscellaneous 2.0%
1 Hotel/Lodging Room Rentals 5.0%
1
Source: Oro Valley Finance Department
►
►
1
►
►
►
►
►
►
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67
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4
of Oro Valley,Arizona 4
HistoricalProjected and Projected Excise Tax Collections 4
($000's) 4
June 30,2001 4
(Unaudited) 4
4
4
4
1
Actual(a) Projected l Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year
Year 4
Revenue Source 1997/98 1998/99 1999/00 2000/01
2001/02 2002/03 4
4
395 $ 6,150 $ 6,395 4
Town Sales and Franchise Taxes $ 3,845 $ 4,501 $ 6,139 $ 6,395
Licences and Permits 1,069 1,396 1,597 1,750 2,240 2,330 4
Fines 184
210 203 225 220 229 4
1 465
State-Shared Sales Tax 1,571 1,727 1,845 2,374 2,469 4
State-Shared Income Tax 1,682 1,963 2,178 2,346 3,097 3,221 4
4
Total
$ 8,245 $ 9,641 $ 11,844 $ 12,561 $ 14,081 $ 14,644 4
4
(a)
All revenue sources are presented on a modified accrual basis of accounting except for Town sales taxes
which areP resented on the cash basis of accounting per the Arizona Department of Revenue Standard 4
Industry Summary Local Taxes Collection Reports. 4
i
Source: Oro Valley Finance Department 4
Note: The above information is provided for bond requirements only and the bond does not require ten years of data. 4
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0
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68 1
1
1
Town of Oro Valley,Arizona
Town Transaction Privilege(Sales)and Franchise Tax Collections
By Industry Classification
June 30,2001
(5000's)
(Unaudited)
Actual Projected
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Industry Classification 1997/98 1998/99 1999/2000 2000/01 2001/02 2002/03
Construction $ 1,898 $ 2,398 $ 3,023 $ 2,913 $ 2,212 $ 2,300
Manufacturing g 4 3 3 2 3 3
Transportation,Communications&Utilities 4 17 28 32 40 42
Wholesale Trade 18 13 13 13 15 16
Retail Trade 515 674 1,497 1,763 1,785 1,856
Restaurants,Bars&Lodging 896 916 1,053 1,082 1,555 1,617
g g
Fire,Insurance&Real Estate 123 15 25 73 25 26
Services 202 256 221 257 210 218
All
Other 2 2 51 (3) 35 36
Cable Franchise 183 207 225 263 270 281
Total $ 3,845 $ 4,501 $ 6,139 $ 6,395 $ 6,150 $ 6,395
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.
69
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4
TOWN OF ORO VALLEY, ARIZONA �
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS �
LAST TEN FISCAL YEARS �
(UNAUDITED) �
Special Special 4
Fiscal Assessment Assessment �
Year Billing Collected
1
1992 169,000 169,000 �
1
1993 240,000 240,218 �
1
1994 120,000 119,608 �
1
1995 120,000 119,620
1996 145,550 145,386
1
1997 61,963 62,192 �
1
1998 31,424 54,651 1
1
1999 34,098 34,098 �
1
2000 3,138 3,138 �
1
2001
1
1
Source: Oro Valley Finance Department �
1
Includes only special assessment district debt service funds.
1
1
70
(
TOWN OF ORO VALLEY,ARIZONA
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 Bonds Revenue Bonds of
Acquisition Bonds Water Building Land _ Water Library Participation Projected
- - Projected Excise Tax
Fiscal Year
Ending Annual Annual Annual Annual Annual Annual Annual Combined Excise Tax Debt Service
(June 30) Total _ Total Total Total Total Total Total _Debt Service Collections_ Coverage
1999 $1,831,100 $ 416,844 $2,247,944 9,659,000 4.30x
2000 $1,816,750 $ 234,752 $110,606 $ 410,281 $2,572,389 11,844,000 4.60x
2001 $1,826,876 $ 263,808 $205,935 $ 408,322 $2,704,941 12,561,000 4.64x
2002 $1,935,562 $ 269,130 $210,733 $ 271,669 $ 545,680 $ 324,901 $ 405,938 $3,963,613 14,081,000 3.55x
2003 $1,938,312 $ 269,285 $210,070 $ 205,185 $ 423,753 $ 252,305 $ 407,994 $3,706,904 14,645,000 3.80x
2004 $1,939,162 $ 263,685 $203,845 $ 206,430 $ 432,661 $ 257,609 $ 409,350 $3,712,742 3.79x
2005 $1,938,312 $ 263,285 $217,445 $ 207,405 $ 425,277 $ 253,212 $ 410,005 $3,714,941 3.94x
2006 $1,935,712 $ 271,985 $210,290 $ 212,985 $ 426,810 $ 254,125 $ 414,881 $3,726,788
2007 $1,956,312 $ 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 $ 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 $ 268,540 $ 202,190 $ 421,151 $ 250,755 $ 413,944 $3,501,356
2013 $1,949,812 $ 166,340 $ 205,690 $ 418,487 $ 249,169 $ 412,125 $3,401,623
2014 $1,952,126 $ 225,375 $ 203,800 $ 421,212 $ 250,792 $ 414,300 $3,467,604
` 2015 $1,951,712 $ 221,875 $ 206,520 $ 419,408 $ 249,717 $ 415,325 $3,464,557
2016 $1,947,600 $ 227,875 $ 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 $ 248,645 $ 411,500 $3,438,325
2019 $1,918,050 $ 223,125 $ 206,400 $ 415,333 $ 247,292 $3,010,200
2020 $1,952,250 $ 206,225 $ 415,333 $ 247,292 $2,821,100
2021 $1,958,718 $ 205,500 $ 414,393 $ 246,732 $2,825,343
2022 $1,961,156 $1,961,156
2023 $1,959,562 $1,959,562
2024 $1,953,938 $1,953,938
2025 $1,969,282 $1,969,282
2026 $4,004,250 $4,004,250
71
1
TOWN OF ORO VALLEY,ARIZONA �
STATEMENT OF BONDED INDEBTEDNESS �
JUNE 30,2001 �
(UNAUDITED) �
1
i
1
1
Total General Obligation Bonded Debt None �
Primary Assessed Valuation $ 244,196,918 �
Secondary Assessed Valuation 257,234,738 �
Estimated Full Cash Value 2,152,330,708 �
1
Source: Pima County Assessor �
1
Direct General Obligation Bonded Debt Outstanding None �
Water and Sewer Revenue Bonds Outstanding None �
Street and Highway User Revenue Bonds Outstanding N one �
Issue Maturity Balance �
Series Purpose Dates Outstanding �
Municipal Property Corporation Bonds 1996 Water Company 07/01/26 $ 26,933,509 �
Certificates of Participation 1996 Land Acquisition 07/01/17 4,500,000 �
Municipal Prop. Corp.-Excise Tax Rev. Bonds 1999 Dev. Serv. Bldg. 07/01/09 1,485,000
Municipal Prop. Corp.-Excise Tax Rev. Bonds 1999 Water Improvements 07/01/19 3,021,687 �
Water Development Fee Revenue Obligations 2000 Water Improvements 01/01/08 6,770,000 �
Municipal Prop. Corp.-Excise Tax Rev. Bonds 2001 Water Improvements 07/01/20 5,616,542
Municipal Prop. Corp.-Excise Tax Rev. Bonds 2001 Library 07/01/20 3,362,532 �
1
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72 1
1
1
Town of Oro Valley, Arizona
Direct and Overlapping General Obligation Bonded Debt
June 30, 2001
(Unaudited)
General
Obligation Approx. Net Debt
Overlapping in Jurisdiction Bonded Debt Percent Amount
State of Arizona None 0.69 None
Pima County 153,280,000 5.73 8,782,944
Pima County Community
College District 81,470,000 5.73 4,668,231
Pima County Flood Control
District 6,595,000 6.71 442,525
Amphitheater Unified School
District No. 10 131,795,000 31.83 41,950,349
Town of Oro Valley None 100.00 None
Total direct and overlapping general
obligation bonded debt $ 55,844,049
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
@ 29,700 Valuation Value
Direct General Obligation
Bonded Debt $ - 0.00% 0.00%
Direct and Overlapping in 1,880.27 21.71% 2.59%
General Obligation Bonded Debt
73
4
TOWN OF ORO VALLEY,ARIZONA 4
COMPUTATION OF LEGAL DEBT MARGIN 4
JUNE 30,2001 4
(UNAUDITED) 4
4
1
4
Net secondary assessed valuation
$ 257,234,738 4
Calculation�on of 20%Debt Limitation i
1
20%of secondary net
assessed valuation
$ 51,446,948
Bonds outstanding
Net 20%Debt Limitation 51,446,948
Calculation of 6%Debt Limitation
6%of secondary net
assessed valuation 15,434,084
Bonds outstanding 4
Net 6%Debt Limitation
15,434,084
Capacity Total
BondingCa acity $ 66,881,032 1
f
1
1 Under Arizona law, cities can issue general obligation bonds for general municipal
purposes up to an amount not exceeding 6%of assessed valuation. 1
1
issue additional general obligation bonds for 4
(2) Under Arizona law, cities can
p
supplying specific services, such as water, sewer, lighting, parks and recreational 1
facilities up to an amount not exceeding 20%of assessed valuation. 1
4
Source: Oro Valley Finance Department 1
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/ Town of Oro Valley,Arizona
Property Tax Assessment Ratios and
` Comparative Secondary Assessed Valuation Histories
Tax Years 1992 through 2001
/ (Unaudited)
1
Property Classification 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Mining 30% 30% 30% 29% 28% 27% 26% 25% 25% 25%
Utility 30% 30% 30% 29% 28% 27% 26% 25% 25% 25%
1 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%
Owner Occupied Residential 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
` Leased or Rented Residential 13% 12% 11% 10% 10% 10% 10% 10% 10% 10%
/ Railroad,Private Car Company& 24% 24% 25% 26% 24% 23% 22% 21% 10% 10%
1 Airline Flight Property
1
Source: Arizona Department of Revenue
I Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
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Valley,Town of Oro al y,Arizona 4
Comparative SecondaryAssessed Valuation Histories 4
Tax Years 1995 through 2001 1
(Unaudited) 4
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11
Pima State of4
Tax Year County Arizona
4
4
2001 $ 4,491,395,307 $ 34,468,574,240
2000 4,196,858,967 32,071,73 8,214 41
1999 4,616,303,822 28,184,077,
278 4
1998 4,915,883,987 26793103>101 4
1997 3,2
47,512,122 25,384,679,197 4
1996
3,218,883,605 23,022,330,962 4
1995 3,150,104,570 22,179,317,949 4
4
Source: Arizona Department of Revenue 4
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I Town of Oro Valley,Arizona
I Assessed Valuations and Tax Rates
I June 30,2001
(Unaudited)
I
I
Arizona legislation limits increases in assessed valuation of residential properties, limits total property
I taxes, levied by counties, cities, towns, community college districts, fire districts and school districts,
I 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
I 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.
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Direct and Overlapping Secondary Assessed Valuation and Tax Rates per$100 of Assessed
Valuation (1)
I 2001
I Secondary Primary Tax Rates
Assessed Assessed Per$100 of
Overlapping Municipality Valuation Valuation Assessed Valuation
I
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State of Arizona $ 34,468,574,240 $ 32,518,431,391 0.0000
o Pima County 4,491,395,307 4,361,492,992 5.4644
Pima Cty. Comm. College Dist. 4,491,395,307 4,361,492,992 1.5470
Pima County Library District 4,491,395,307 N/A 0.2124
i
Pima Cty. Flood Control Dist. 3,834,690,947 N/A 0.3546
1
Pima Cty. Fire Dist. 4,491,395,307 N/A 0.0488
Central AZ.Water Conservation
District 4,491,395,307 N/A 0.1300
Golder Ranch Fire District 11,700,824 N/A 1.8900
Amphitheater Unified School
District 808,292,410 775,202,512 7.4427
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 17.0899
Total Tax Rates Inside Town of Oro Valley,
and Amphitheater Unified School District
No. 10 and Outside Golder Ranch Fire
District 15.1999
(1) Based upon 2001 data obtained from the tax rolls of the Arizona Department of Revenue.
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TOWN OF ORO VALLEY,ARIZONA
PRIMARY AND SECONDARY PROPERTY TAX RATES 4
DIRECT AND OVERLAPPING GOVERNMENTS a
(PER$100 OF ASSESSED VALUE) 4
LAST TEN FISCAL YEARS
(UNAUDITED)
1
Pima 1
County Ambi.
Flood Pima County Central Unified
Fiscal State of Pima Control Comm. Free Arizona Fire School Town of1
Year Arizona County District College Library Project District Distirct Oro Valley Total
1992 0.4700 5.3297 0.5871 0.9958 0.2025 0.1400 0.0535 7.1992 0.0000 14.9778
1993 0.4700 5.1580 0.5398 1.0599 0.1924 0.1400 0.0567 7.5570 0.0000 15.1738
1994 0.4700 5.0603 0.4623 1.1038 0.2024 0.1400 0.0501 7.3911 0.0000 14.8800
1
1995 0.4700 5.0638 0.3596 1.2183 0.2124 0.1400 0.0539 8.1646 0.0000 15.6826
I 1
1996 0.0000 5.0138 0.3596 1.2433 0.2224 0.1400 0.0549 7.6789 0.0000 14.7129
1
1997 0.0000 5.1139 0.3296 1.1836 0.2224 0.1400 0.0517 7.5099 0.0000 14.5511 4
1998 0.0000 5.1802 0.3246 1.1922 0.2224 0.1400 0.0515 7.0881 0.0000 14.1990 4
1999 0.0000 5.5287 0.3046 1.3696 • 0.2024 0.1400 0.0511 7.1715 0.0000 14.7679
4
2000 0.0000 5.5193 0.3046 1.5574 0.2024 0.1300 0.0495 6.8816 0.0000 14.6448
2001 0.0000 5.4644 0.3546 1.5470 0.2124 0.1300 0.0488 7.4427 0.0000 15.1999 ,
Source: Arizona Tax Research Association
1
Note: The primary and secondary property tax rates for Pima County, Community College
• in the table. �
Amphitheater Unified School District jurisdictions are added together '
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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
1992 Secondary 65,098,105 513,072,404 12.69%
t .
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 220,687,234 1,874,760,891 11.77%
2001 Secondary 257,234,738 2,152,330,708 11.95%
Source: Pima County Assessor
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Town of Oro Valley,Arizona a
Secondary Assessed Valuation by Property Classification 41
Last Five Tax Years a
(Unaudited)
41I
1997 1998 1999 2000 2001 I
Secondary Secondary Secondary Secondary Secondary I
Assessed Assessed Assessed Assessed Assessed
a
Property Class Valuation Valuation Valuation Valuation Valuation ,
P
Utilities $ 3,723,602 $ 3,585,691 $ 3,805,840 $ 4,356,308 $ 4,224,746 a
4
Commercial and Industrial 15,587,445 19,040,627 22,862,660 27,360,621 38,352,2231
. 6 492 26 182 766 30,114,158 4
Agricultural and Vacant 22,846,489 24,377,563 22,07 , ,
a
Residential( occupied)occu ied owner 116,846,833 124,950,876 139,909,745 154,208,262 171,628,461 4
I
Residential(rental) 6,260,831 6,812,125 7,992,904 8,579,277 12,915,150 a
Commercial Historical Property -
- - - - 4
1
$ 165,265,200 $ 178,766,882 $ 196,647,641 $ 220,687,234 $ 257,234,738
44
Source: Arizona Department of Revenue,
Abstract of the Assessment Role and the Assessor of the County. I
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Note: The above information is provided for bond requirements only and the bond does not require ten years of data. 4
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TOWN OF ORO VALLEY,ARIZONA
SECONDARY ASSESSED VALUATION OF MAJOR TAXPAYERS
JUNE 30,2001
(UNAUDITED)
2001 As%of Town's
Secondary Total Secondary
Assessed Assessed
1
Taxpayer Valuation Valuation
El Conquistador Hotel Associates $ 13,292,409 5.17%
Tucson Electric Power 2,566,441 1.00%
► Evans Withycombe Finance Partnership 1,866,000 0.73%
Barclay Group No 10&Dayton 1,853,734 0.72%
Overland Vistoso Limited Partnership 1,781,968 0.69%
Dayton Hudson 1,564,092 0.61%
Home Depot 1,525,000 0.59%
Canada Verde Luxury Development 1,441,763 0.56%
Lincoln National Life Insurance Co. 1,312,143 0.51%
U.S.West Communications 1,252,834 0.49%
Totals $ 28,456,384 11.06%
Source: Pima County Assessor's Office
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41
TOWN OF ORO VALLEY,ARIZONA 411
HISTORICAL AND
PROJECTED WATER SYSTEM REVENUES, ill
EXPENSES,DEBT SERVICE AND COVERAGE
(UNAUDITED) 1
41II
I
Historical Actual ,
1997/98 1998/99 1999/00 2000/01 ,
Revenues: 4
Water revenues $ 4,494,937 $ 4,713,632 $ 6,454,446 $6,719,666III
Other revenues 4,637 217,573 346,669 495,386 ,
Interest income 279,891 288,095 438,276 509,697
Total revenues 4,779,465 5,219,300 7,239,391 7,724,749
4I
Expenditures:
Personnel
490,399 622,762 910,396 1,125,462 1
Operations&
maintenance 1,238,034 1,816,542 1,951,456 3,179,939 I
CAP water costs 167,078 180,704 220,112 211,142 1
Total expenditures 1,895,511 2,620,008 3,081,964 4,516,543 1
4
Net water system revenues 2,883,954 2,599,292 4,157,427 3,208,206 4
I
Water supported debt service: 1
1996 Bonds debt service 1,818,775 1,831,100 1,816,750 1,826,875 4
1999 Water related debt service 234,752 263,808
I
2001 Water related debt service 426,2251
I
Total water supported debt service $ 1,818,775 $
1,831,100 $ 2,051,502 $2,516,908 I
11
Net water system revenues
debt service coverage 1.59 x 1.42 x 2.03 x 1.27 x
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Source: Oro Valley Department De artment 4
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Note: The above information is provided for bond requirements only and the bond does not require ten years of data. 1
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TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
(UNAUDITED)
SCHEDULE OF WATER RATES
EFFECTIVE AUGUST 18,2001
METER BASE RATE COMMODITY COMMODITY COMMODITY
SIZE includes TIER 1 TIER 2 TIER 3
1,000 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
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 0-169,000 169,001-283,000 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
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.
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
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VALLEY,OF ORO ARIZONA I
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES a
(UNAUDITED) a
I
a
Meter Installation a
es AWRD Fees a
Char
Meter Size g
(in inches) Effective 10/2/1999 Effective 8/13/1996
5/8"X 3/4"
$150.00 $300.00
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1"standard
$200.00 $750.00
a
1.5"standard $390.00 $1,500.00 I
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1.5"turbine $560.00 $1,500.00
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2"standard $560.00 $2,400.00 a
4
2"turbine $660.00 $2,400.00 4
4
2"compound $1,365.00 $2,400.00 4
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3"turbine $875.00 $4,500.00
4
3"compound $1,700.00 $4,500.00
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4"turbine $1,600.00 $7,500.00 1
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4"compound $2,750.00 $7,500.00
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6"turbine $3,240.00 $15,000.00
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6"compound $4,925.00 $15,000.00 4
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8"turbine Time&Materials N/A
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Multifamily i
Per Unit Cost N/A $144.00
4
0
Note: 5.6% sales tax must be added to meter installation fees. 4
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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
1 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
1
2" $14,192 $32,640 $25,544
3u --- $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 each 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.
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Town of Oro Valley,Arizona
Number of Meters Connected
(Unaudited)
Fiscal Meters Running
Year Connected Total
1
Pre-05/01/96 * 9,863 9,863
1995/96 ** 152 10,015
1996/97 629 10,644 �
1997/98 807 11,451 1
1998/99 985 12,436 �
1999/00 **** 2,157 14,593 �
2000/01 *** 787 15,380
2001/02 *** 810 16,190
2002/03 *** 834 17,024
2003/04 *** 859 17,883
2004/05 *** 885 18,768
2005/06 *** 911 19,679 �
2006/07 *** 938 20,617
2007/08 *** 966 21,583
* 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 increase by 3% for each of
these years. These projections are forward looking statements. No
assurance can be given that these projections will be met.
1
**** The Oro Valley water utility assumed management of the former OV 1
#1 customers (977) in July 1999. �
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Source: Oro Valley Water Utility
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Town of Oro Valley, Arizona
Number of Connections by Type
Fiscal Year 2000/01
(Unaudited)
Number Percentage Percentage
of of Water of
User Type Connections Total Revenues Total
Residential 14,132 92.55% $ 4,513,444 67.17%
Commercial 172 1.13% 402,707 5.99%
Irrigation 325 2.13% 537,148 7.99%
Construction 626 4.10% 285,503 4.25%
Turf 10 0.07% 933,629 13.89%
Wholesale/Unmetered 4 0.03% 47,235 0.70%
Totals 15,269 100.0% $ 6,719,666 100.0%
Source: Oro Valley Water Utility and Finance Department
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Town of Oro Valley,Arizona 4
History of Connections to the Water System 4
Last Five Fiscal Years 41
(Unaudited) '
1
4
Fiscal 4
Years Single Multi- 4
Ending Family Family Commercial Irrigation Turf Total Total 1
June 30 Connections Connections Connections Connections Connections Connections EDU's(a) 4
4
2001 749 9 14 15 0 787 789
4
21 1
2000 927 24 331,006 (b) 1,397 4
1
1999 928 18 10 28 1 985 1,277 1
I
1998 783 2 12 10 - 807 936
4
1997 621 - 3 5 - 629 639 4
1
1996 (c) 152 - - - - 152 152 '
1
(a) I
bydividingthe total amount collected with respect to connections to the system by the then
EDU's are determinedy
existingfee 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. I
1
(b) On 7/1/99 the Town assumed managment of the OVWID #1 which consisted of 977 customers. These customers
are 4
not considered"new"connections and were not subject to impact fees,they have not been included in this figure. '
(c) On May 1, 1996, the Town entered into a lease-purchase agreement to acquire two water companies' assets which '
were the bulk of the facilities then supplying the water needs of the area within the boundaries of the Town as well
as certain areas outside the boundaries of the Town. At that time, there were 9,863 existing connections. From 1
May 1, 1996,to June 30, 1996, 152 connections were added. 4
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Source: The Town.
1
Note: The above information is provided for bond requirements only and the bond does not require ten years of data. 4
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Town of Oro Valley,Arizona
History of Building Permits
Last Five Fiscal Years
(Unaudited)
Fiscal Year Ending June 30,
Building Permits 1997 1998 1999 2000 2001
Single Family Residential 684 851 1,020 1,144 793
Office 5 8 9 14 4
Miscellaneous 28 20 23 102 290
Retail 3 - 7 11 6
Apartments 1 - 6 10 -
Total Commercial 37 28 45 137 300
Total 721 879 1,065 1,281 1,093
Source: The Town.
Note: The above information is provided for bond requirements only and the bond does not require ten years of data.
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Town of Oro Valley,Arizona 4
Schedule of the 15 Largest Water System Customers 4
Fiscal Year 2000/01 4
(Unaudited) 4
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4
4
Annual Annual
4
Gallons Water
Water System Customer Delivered* Charges
44
Golf Course&CountryClub $ 310,036 $ 588,041 4
El Conquistador
Sun City Golf Course 106,380 162,580
Sheraton El Conquistador Resort 49,027 119,874 1
Vistoso Highland Golf Course 128,891 35,970 4
Sun City Community Association 17,294 54,125 '4
Stone Canyon Golf Course 189,077 61,262 1
Rockridge Apartments 18,280 46,690 4
Copper Creek Elementary School 1,748 20,860 4
La Reserve Apartments(Evans/Withycombe) 17,748 45,471 4
La Cholla Air Park 21,691 39,124 4
The Boulder Apartments 11,041 24,504 ,
Fry's Grocery Store 8,725 23,388
4
Honeywell (Allied Signal) 5,974 19,504
1
Pusch Ridge Christian Academy 6,695 20,004
Marana Public School(DeGrazia) 3,650 11,628 4
4
Totals $ 896,257 $ 1,273,025 4
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* 000's omitted.
4
Source: Town
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TOWN OF ORO VALLEY,ARIZONA
DEMOGRAPHIC STATISTICS
JUNE 30,2001
(UNAUDITED)
Population by Age Group
P erc entag e
Age Group Number of Total
Under 5 1,405 4.73%
5 - 14 3,819 12.86%
15 - 19 1,494 5.03%
20-29 1,791 6.03%
30-39 4,102 13.81%
40-49 4,752 16.00%
50-64 5,589 18.82%
65 and over 6,748 22.73%
Total 29,700 100.00%
Population by Ethnic Background
Percentage
Category Number of Total
White 26,923 90.65%
Hispanic 1,060 3.57%
Black 235 0.79%
Native American 110 0.37%
Other 1,372 4.62%
Total 29,700 100.00%
Sources: Town of Oro Valley Planning and Zoning Department
91
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TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF TOP EMPLOYERS
JUNE 30,2001
► (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 500
Town of Oro Valley Government 277
El Conquistador Country Club Dining/Recreation 250
Fry's Food Stores(2) Grocery Store 214
Canyon Del Oro High School School 175
Target Retail Store 130
Home Depot Retail Store 121
RVSI/Vanguard Automation Robotics/Automation 110
Securaplane Aerospace 110
Oro Valley Country Club Dining/Recreation 95
Basha's Food Store Grocery Store 80
Selectide Medical Research 75
Safeway Grocery Store 75
Walgreens(2) Drug Store 55
Pizza Hut Restaurant 47
PetsMart Retail Store 28
Burger King Restaurant 26
Carl's Junior Restaurant 22
Rubio's Baja Grill Restaurant 14
Payless Shoes Retail Store 5
Sleep America Retail Store 2
General
The Town of Oro Valley encompasses an area of approximately 30 square miles. Located in
northeastern Pima County,the Town is six miles north of the Tuscon city limits. The Town's
population figure from the Year 2000 Census is 29,700 and recorded a 2.0% unemployment rate
in 2001.
93
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TOWN OF ORO VALLEY
COUNCIL COMMUNICATION MEETING DATE: December 5, 2001
TO: HONORABLE MAYOR & COUNCIL
FROM: David L. Andrews, Finance Director
SUBJECT: Town Council Acceptance of the Town's Financial Audit
for the Fiscal Year Ended June 30, 2001
SUMMARY:
The certified public accounting firm of Cronstrom & Trbovich has completed the financial audit for
fiscal year ended June 30, 2001. The financial audit was conducted in accordance with gen y
accepted auditing standards and the auditors have rendered an opinion that the Town's general-
purpose financial statements fairly present the Town's financial position as of June 30, 2001 .
At the November 1, 2001 Budget and Bond Committee meeting the members were presented the
results from the Town's audit. The committee recommended forwarding the audit to council with a
favorable acceptance.
Mr. Craig Trbovich, partner in the firm of Cronstrom & Trbovich, is here this evening to present an
overview of the audit to the council.
ANALYSIS:
The following is an overview of the Town's financial operations for the fiscal year ended June 30,
2001:
✓ At June 30, 2001 the General Fund's fund balance was $11,226,863 which increased by
$560,762 or 5.26% compared to last fiscal year. This increase is primarily attributed to local
sales taxes and interest earnings (page 36).
✓ General Fund revenues exceeded budget by $888,081 . Local sales tax collections ($572K)
and interest earnings ($363K) were the primary revenue sources that accounted for the
increase (page 36). Construction sales tax collections exceeded budget by $530K.
✓ General Fund expenditures were below budget by $2,992,347 (excluding contingency reserves
of $4,581 ,935). $1,422K for the administration building expansion was not expended at June
30, 2001 and was carried forward to the current year budget. The remaining amount of
$1,570K may be attributed to departmental operations (page 36).
✓ The Highway Fund's fund balance decreased by $596K. This was mainly due to the
completion of several capital projects such as street reconstruction and overlays ($252K),
slope protection ($181 K), drainage improvements ($224K) and various street improvements
($244K) (page 40).
TOWN OF ORO VALLEY
COUNCIL COMMUNICATION PAGE 2 OF 4
✓ The Public Transportation Fund's (Coyote Run) fund balance increased by $51 K for a total of
$240,554 (page 43).
✓ The Townwide Roadway Development Impact Fees Fund has a fund balance of $6,776,737.
Several capital improvement projects were completed such as, traffic signal installations
($231 K), pedestrian multi-use path ($496K) and roadway system capacity improvements
($936K) (page 58).
✓ The Oro Valley Water Connection Fees Fund has a fund balance of $7,103,696 (page 56).
Bonds in the amount of $6,770,000 were issued in this fiscal year to fund projects related to
infrastructure needed for future water utility customers. Water System Development Impact
Fees are being used to pay back the debt.
✓ The Library Construction Fund was established to account for the construction of the Oro
Valley Public Library. Costs for the project total $5.1 M which includes construction, furnishings
and library collections. Funding for the library will come from Pima County bond proceeds in
an amount of $2 million. Bonds were issued in April 2001 for $3,255,000 for the remaining
funds needed for this project (page 57).
The following is the financial position of the Oro Valley Water Utility at June 30, 2001:
✓ Total revenues of $7,724,747 exceeded budget by $847,047 primarily related to water sales
($414K), interest earnings ($210K) and miscellaneous service revenues ($222K).
✓ Expenses were under budget by $706,466 due to savings in operations and maintenance.
✓ Retained earnings increased by $1,565,345 for a total of $3,794,607. Water sales and interest
earnings were the primary revenue sources that accounted for most of this increase (page 10).
✓ Contributed capital totaled $2,933,990 including $946,523 in capital improvements related to
the Oro Valley Water Connection Fund (development impact fees) and line extension
agreements with developers of $1,987,467.
✓ At June 30, 2001 the balance sheet reflected the following cash balances (page 11-12):
Operating Cash $3,466,665
Cash held by Trustee for debt service payments 1,722,778
Cash Project Improvements — 2001 bonds 5,488,111
Cash Project Improvements — 1999 bonds 611,420
Debt Service Reserve Fund 2,287,940
Total $13,576,914
TOWN OF ORO VALLEY
COUNCIL COMMUNICATION PAGE 3 OF 4
ATTACHMENTS:
Select Page References from Comprehensive Annual Financial Report:
1. Independent Auditor's Report (pages 1-2)
2. Letter of Transmittal to Mayor and Council from Town Manager & Finance Director
(pages i —viii)
3. General Fund — Statement of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual (page 36)
4. Highway Fund-Statement of Revenues, Expenditures and Changes in Fund Balance-
Budget and Actual (page 40)
5. Public Transportation Fund-Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual (page 43)
6. Townwide Roadway Development Impact Fees Fund-Statement of Revenues,
Expenditures and Changes in Fund Balance-Budget and Actual (page 58)
7. Oro Valley Water Connection Fees Fund-Statement of Revenues, Expenditures and
Changes in Fund Balance-Budget and Actual (page 56)
8. Library Construction Fund-Statement of Revenues, Expenditures and Changes in Fund
Balance-Budget and Actual (page 57)
9. Combined Statement of Revenues & Expenses —Water Utility (page 10)
10. Cash Flow Statements —Water Utility (pages 11-12)
11. State Expenditure Limitation Report (pages 1-5)
12. Single Audit Act Report (pages 1-7)
13. Management Letter (pages 1-2)
14. Full Copy— Fiscal Year Ended June 30, 2001 — Comprehensive Annual Financial Report
TOWN OF ORO VALLEY
COUNCIL COMMUNICATION PAGE 4 OF 4
RECOMMENDATION:
Acceptance of the financial audit for the fiscal year ended June 30, 2001 is recommended.
SUGGESTED MOTION:
I make a motion to accept the Town's financial audit for the fiscal year ended June 30, 2001.
14 .24.0.11s2.--dr•=a&eithe)---
David L. Andrews
Finance Director
/ .
Chuck Sw-et
Town Manager
DRAFI
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor and the Town Council of the
Town of Oro Valley, Arizona
We have auditedaccompanying the accom n general-purpose financial statements of the Town of Oro
yi g
a (Town), as of and for the year ended June 30, 2001, as listed in the table of
Valley, Arizon
contents. general-purpose ,
These financial statements are the responsibility of the Towns
management.
Our responsibility is to express an opinion on these general-purpose financial
statements based on our audit.
ted our audit in accordance with generally accepted auditing standards and the
We conducted
applicable to financial audits contained in Government Auditing Standards, issued by
standards pp
Comptroller General of the United States. Those standards require that we plan and perform
the
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
the amounts and disclosures in the general-purpose financial statements. An audit
supporting
also
includes assessingthe accounting principles used and significant estimates made by
management, as well as evaluatingthe overall general-purpose financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our
o.inion the •eneral-•u�ose financial statements referred to above •resent fairlyjn_alL
_
material res ects the financial position of the Town of Oro Valley, Arizona as of June 30, 2001,
p_____,
and the
results of its o.erations and the cash flows of it .r••a - . nd t j•es for the year then
ended in conformity with generally accepted accounting principles.,
In accordance with Government Auditing Standards, we have also issued a report dated
October 5, 2001 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.
p
That reportis an integral part of an audit performed in accordance with Government Auditing
gr
Standards and should be read in conjunction with this report in considering the results of our
audit.
1
auditDRAFT,
was made for the purpose of forming an opinion on the general-purpose financial
Our p rp
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
p �
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of therP
-eneralu ose financial statements and, in our opinion, is fairly stated in all
g p
material respects in relation to the general-purpose 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.
Cronstrom &Trbovich, P.C.
October 5, 2001
2