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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
TOWN OF ORO VALLEY,ARIZONA
for the
FISCAL YEAR ENDED JUNE 30, 2000
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, 2000
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:
Arizona 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, 2000
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, 2000
Contents (Cont'd) Page
Naranj a Road Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 48
Municipal Debt Service Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance- Budget and Actual 49
CAPITAL PROJECTS FUNDS:
Combining Balance Sheet 52
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 54
CDO Riverfront Park Fund:
Statement of Revenues,Expenditures and Changes in
Fund Balance-Budget and Actual 56
Municipal Facilities Construction Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 57
Alternative Water Resources Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 58
Oro Valley Water Connection Fees Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual 59
Library Construction Fund:
Statement of Revenues,Expenditures and Changes in
Fund Balance-Budget and Actual 60
Townwide Roadway Development Impact Fee Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance- Budget and Actual 61
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Contents (Concl'd) Page
GENERAL FIXED ASSETS ACCOUNT GROUP:
Comparative Schedules of General
Fixed Assets by Source 64
Schedule of General Fixed Assets by
Function and Activity 65
Schedule of Changes in General Fixed Assets
by Function and Activity 66
STATISTICAL SECTION
General Government Revenues by Source 68
General Government Expenditures by Function 69
Taxable Activities, Tax Rates and Distribution Shares 70
Transaction Privilege(Sales) Tax Rates by Category 71
Historical and Projected Excise Tax Collections 72
Town Transaction Privilege(Sales) and Franchise Tax Collections 73
Special Assessment Billings and Collections 74
Estimated Debt Service Coverage Regarding Excise Tax Collections 75
Statement of Bonded Indebtedness 76
Direct and Overlapping General Obligation Bonded Debt 77
Computation of Legal Debt Margin 78
Property Tax Assessment Ratios and Comparative Secondary Assessed
Valuation Histories 79
Comparative Secondary Assessed Valuation Histories 80
Assessed Valuations and Tax Rates 81
Primary and Secondary Property Tax Rates Direct and
Overlapping Governments S2
Net Assessed and Full Cash Values of Taxable Property 83
Secondary Assessed Valuation by Property Classification 84
Secondary Assessed Valuation of Major Taxpayers 85
Historical and Projected Water System Revenues, Expenses, Debt
Service and Coverage 86
Oro Valley Water Utility-
Schedule of Rates, Fees and Charges 87
Number of Meters Connected 90
Number of Connections by Type 91
History of Connections 92
Building Permits 93
Schedule of the Fifteen Largest Water System Customers 94
Demographic Statistics 95
Property Value, Construction and Bank Deposits 96
Schedule of Top Employers 97
1P�LEY 4,
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TOWN OF ORO VALLEY
14 10" 11000 N. LA CANADA DRIVE
ORO VALLEY,ARIZONA 85737
Administrative Offices(520)229-4700 Fax(520)297-0428
www.ci.oro-valley.az.us
4110,
OUN D E D0'
September 8, 2000
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, 2000, is hereby submitted. Local ordinances and state statutes require that the
Town issue annually a report on its financial position and activity, and that this report be audited
by an independent firm of certified public accountants. Responsibility for both the accuracy of
the data, and the completeness and fairness of the presentation, including all disclosures, rests
with management. To the best of our knowledge and belief, the enclosed data are accurate in all
material respects and are reported in a manner that presents fairly the financial position and
results of operations of the various funds and account groups of the Town of Oro Valley. All
disclosures necessary to enable the reader to gain an understanding of the Town's activities have
been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory,
Financial and Statistical. The Introductory Section includes this letter of transmittal, the GFOA
Certificate of Achievement, an organizational chart and a list of the Town of Oro Valley's
elected officials and department heads. The Financial Section includes the general purpose
financial statements and the combining and individual fund and account group financial
statements and schedules, as well as the independent auditor's report on these financial
statements and schedules. The Statistical Section includes selected financial and demographic
information, generally presented on a multi-year basis.
The Town of Oro Valley is required to undergo an annual single audit in conformity with the
provisions of the Single Audit Act of 1996 and U.S. Office of Management and Budget's
Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. 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 32 square miles. The current population is estimated at 27,350.
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 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 Town of Oro Valley's local economic condition and outlook is expected to remain positive
over the next five to ten years. As in prior years, sales tax collections from construction, retail
trade and hotel/motel industries along with state shared revenues are the Town's major revenue
sources.
Sales tax collections from construction totaled $3,022,948, which is 52% of total sales tax
collections. This is a $625K or 26% increase compared to last fiscal year. Construction related
sales tax collections are anticipated to remain a significant portion of the Town's sales tax base
over the next five years.
Retail sales tax collections increased by $823,000 (122%) over last fiscal year. This significant
increase was mainly attributed to the openings of two major retailers during the fiscal year. Also,
several restaurants and smaller retail stores opened for business throughout the year. This figure
is expected to increase due to the growth of the Town and the need for local shopping
opportunities and services.
Sales tax collections from the hotel/motel lodging industry increased by 14% compared to last
fiscal year. The resort hotel industry has enjoyed a favorable business climate over the past few
years and the local four-star resort recently completed an expansion of its facilities. The Town
consummated an economic development agreement with a five-star resort in January 2000. The
facility expects its opening date to be in November 2002 and will generate approximately $1.3M
in direct sales taxes annually.
State shared taxes will increase by approximately $3.OM annually in FY 2001-02. This figure
assumes an estimated Town population of 30,000 pursuant to the Year 2000 Census.
ii
MAJOR INITIATIVES
The Town of Oro Valley completed several significant projects this fiscal year and has included
several others in the budget for fiscal year 2000/2001.
CDO Riverfront Park was completed in April 2000 at a total cost of$2,432,109 with funding
sources coming from the Town and $1,250,000 from Pima County bond proceeds. Park facilities
include soccer and baseball fields, tennis courts and ramadas. In fiscal year 2000/2001, $1
million has been budgeted for renovations to the swimming pool at Dennis Weaver Park.
Another addition to the Town's campus is a new community development building. This
building houses community development administration, planning and zoning, building safety
and the public works engineering division. Total cost of this facility including architectural
services, construction and furnishings totaled $1,509,710 and was financed with 1999 Municipal
Property Corporation bonds.
Construction of a new Town library is scheduled to begin early this fiscal year with a budget of
$5,080,000. Funding for the project will come from Pima County ($2 million) with the
remaining balance being financed by the Town.
$3,075,000 has been budgeted in fiscal year 2000/2001 for the possible purchase of a 173-acre
parcel of land located near Town hall facilities. The Arizona State Land Department has
scheduled an auction of this land for December 2000. The Town may use the land for expansion
of Town facilities.
Several road improvement projects are scheduled in the upcoming year. These improvements
include street maintenance and repairs, bicycle lanes, multi-use paths, drainage studies, roadway
system capacity improvements and traffic signals.
Oro Valley Water Utility has included $7.8 million in system upgrade and expansion projects for
fiscal year 2000/2001. Significant projects include transmission/distribution mains, reservoirs,
wells and booster stations.
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 judgements by management.
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.
ill
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, 2000, 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, 2000 and the amount of increases and decreases in relation to the prior year.
Increase/(Decrease)
1999/00 Percent From 1998/99 1998/99
Revenue Category Amounts Of Total Amount Percent Amounts
Local taxes $ 6,139,176 27.83% $ 1,620,444 35.86% $ 4,518,732
Intergovernmental 9,167,682 41.55 2,387,279 35.21 6,780,403
Fines & forfeiture 344,627 1.56 13,595 4.11 331,032
Licenses &permits 1,613 798 7.31 201,978 14.31 1,411,820
Charges for services 296,801 1.35 56,856 23.70 239,945
Contributions &
donations 9,247 0.04 7,246 319.64 2,001
Special assessments 3,089,814 14.00 616,980 24.95 2,472,834
Interest 1,332,605 6.04 372,374 38.88 960,231
Other income 69,036 0.32 18,134 37.30 50,902
Total $ 22,062,786 100.00% $ 5,294,886 31.58% $ 16,767,900
Total revenues for fiscal year 1999/2000 increased by $5,294,886 or 31.6%. Local taxes,
intergovernmental revenues and special assessments were the primary revenue sources that
accounted for the increase.
iv
Local taxes increased by $1,620,444. Retail sales tax collections increased by $823K compared
to last fiscal year due to the opening of several major retail chains and local businesses in the Oro
Valley area. Sales tax collections from construction related activities increased by $625K as
compared to last fiscal year.
Intergovernmental revenues increased by $2,387,279. State and federal grant revenue increased
by $489,239. State and county shared revenues increased by $1,898,040, which includes
$1,250,000 in bond proceeds from Pima County for the construction of CDO Riverfront Park.
Special assessments increased by $616,980 primarily due to development impact fees collected
in the Townwide Roadway Development Impact Fees fund for roadway system capacity
improvements.
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, 2000
and the increases and decreases in relation to prior year amounts.
Increase/(Decrease)
1999/00 Percent From 1998/99 1998/99
Expenditure Category Amounts Of Total Amount Percent Amounts
Current
General government $ 4,128,050 21.84% $ 810,382 24.43% $ 3,317,668
Public safety 6,216,390 31.38 975,774 18.62 5,240,616
Highways & streets 1,855,146 8.36 706,073 61.45 1,149,073
Culture &recreation 637,084 3.22 782 0.12 636,302
Other- claims &
judgments 600,000 3.03 600,000 0.00 -0-
Capital outlay 5,537,058 28.09 4,658,215 530.04 878,843
Debt Service
Principal 480,000 2.42 80,000 20.00 400,000
Interest& fiscal charges 355,782 1.66 14,696 4.31 341,086
Bond issuance costs -0- 0.00 (52,126) (100.00) 52,126
Total Expenditures $ 19,809,510 100.00% $ 7,793,796 64.87% $ 12,015,714
As indicated in the schedule above expenditures increased by $7,793,796 or 64.9% primarily in
the categories of general government, public safety, public works and capital outlay.
General government expenditures increased by $810,382 attributed mainly to personnel costs and
related benefits due to the Town's growth. The Town also spent $250,000 for a new campus-
wide telephone system.
Expenditures increased by $975,774 in the category of public safety. This increase was mainly
attributed to additional personnel in the police department and building safety division.
V
Highways and streets expenditures increased by $706,073 due to purchases of street maintenance
equipment, vehicles and the completion of various street improvement projects. Several street
improvement projects that were not completed last fiscal year were completed this fiscal year.
Several major projects were completed in this fiscal year which attributed to the increase of
$4,658,215 in capital outlay. CDO Riverfront Park was completed in June 2000 for a total of
$2,272,228. In April 2000, the community development building was completed. Total cost of
the building was $1,395,827. In the Townwide Roadway Development Impact Fees fund a total
of$1,608,705 was expended for roadway capacity improvements projects.
General Fund Balance The General Fund's fund balance increased by $1,802,096 or 20%
primarily due to better than expected revenue collections as previously discussed.
Enterprise Operations At June 30, 2000, retained earnings for the Oro Valley Water Utility
was $2,229,262 an increase of $1,217,400 (120%) from last fiscal year. This increase was
primarily due to an increase in water usage during the extremely dry summer months of the past
year. Contributed capital totaled $2,589,698 with $853,995 attributed to capital improvements
from the Oro Valley Water Connection Fees Fund (development impact fees) and $1,735,703
from line extension agreements with area developers.
Water revenues exceeded budget by $1,612,395. Operating expenses exceeded budget by
$288,286 while capital assets were under budget by $1,970,106. Net income at June 30, 2000
was $1,217,400. Operating expenses that exceeded budget were primarily electricity for pumping
and unexpected equipment repairs.
Debt Administration At June 30, 2000, the Town had two Municipal Property Corporation
bonds and a certificate of participation issue outstanding. $27,270,405 was the outstanding
principal balance for the 1996 Municipal Property Corporation bonds issued for the purchase of
the water utility. The 1999 Municipal Property Corporation bonds issued last fiscal year to
finance water system improvements and the community development building had an
outstanding principal balance of$3,143,624 and $1,625,000, respectively. The 1996 certificate
of participation issue had an outstanding principal balance of$4,655,000.
The Town had two capital leases outstanding at June 30, 2000, a police voice logger and a
backhoe shared by the public works department and the water utility. Outstanding principal
balances for the voice logger is $5,867 and$23,829 for the backhoe.
An advance from the General Fund to the Oro Valley Connection Fees Fund was made in the
amount of$558,000 on June 1, 1998. Outstanding principal at June 30, 2000 is $469,221.
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 fiscal year 1998/99 was 5.339% and 5.885% for fiscal year
1999/2000. Investments held at LGIP earned interest revenue of$1,071,213 for the year ended
June 30, 2000.
vi
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. These reserve funds are maintained in a trust account
with Wells Fargo Bank (formerly Norwest 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 $257,789 for fiscal year 1999/2000.
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, 2000 for the Town's 219 employees. The Town did not
make an unemployment contribution in fiscal year 1999/2000.
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 2000 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 combining and individual fund statements and
schedules is included in the Financial Section of this report. The auditor's reports on internal
controls and compliance with applicable laws and regulations can be found in a separately issued
single audit report.
Awards The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the Town for its Comprehensive Annual
Financial Report for the year ended June 30, 1999. 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 principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
vii
Acknowledgements We would also like to extend our appreciation to the Mayor and Council
for their leadership and support. The preparation of this Comprehensive Annual Financial
Report was made possible by the dedicated work of the Finance Department staff. Each member
of the department has our sincere appreciation for the contributions made in the preparation of
this report.
Respectfully submitted,
Chuck Sweet
Town Manager
2,/ilid
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, 1999
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.
• IC4
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C*1,#____72 R.....eNITEILITIATES N yy
�:�n }� oN
President
,iHICA60 Aff.,,,,., „
Executive Director
ix
TOWN OF ORO VALLEY, ARIZONA
ORGANIZATIONAL CHART
Town Council
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Boards & .:i
, Chuck Sweet „,,,, George Dunscomb
Commissions Town Manager Town Magistrate
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David Andrews LH. Brent Sinclair
Finance Director Community
Development Director
Jeff Weir Kevin Verville Ainsley Reeder
'° Economic Information Systems Parks & Recreation
ii
kl Development Administrator Administrator
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Administrator ,r.
Terry Vosler
r.. , ,.,, �n,,,��� Building Administrator
.
011111111111111111111111111111111111111111111EML
Kathi Cuvelier Daniel Sharp
Town Clerk - Police Chief
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Bryant Nodine
Planning &Zoning
Administrator
ami: 77,77,1751! .,. ",,r;, ,
Dan Dudley Alan Forrest
7.;,4ti"s• , ,:.`«.. .i ia± ,
Town Attorney `` Water Utility Director
i; Mary Musgrave
tiManaging Librarian
r;F..,a<,, sc4 x a',+,;w c r6fA y.'. r;< k,: "r, .:1s..:,l-'! l.rg,,_.,w..A rr
474.11
4 Jeff Grant Bill Jansen
: Human Resources Town Engineer
.: Director ii
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John Zukas
Transit Services
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
Ci
C}
el CRONSTROM
EI &ATRBOVICH
CCOUNTANT S
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, 2000, 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, 2000,
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
September 8, 2000 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) 348-1 102 • FAX (480) 348-1104
A PROFESSIONAL CORPORATION
Our audit was made for the purpose of forming an opinion on the general-purpose financial
statements taken as a whole. The combining and individual fund and account group financial
statements and schedules listed in the table of contents as supplementary information are
presented for purposes of additional analysis and are not a required part of the general-purpose
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the general-purpose financial statements and, in our opinion, is fairly stated in all
material respects in relation to the general-purpose 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.
tA.Miabt.nAe\4 ‘AAYMI:C/t"\ - C.
Cronstrom & Trbovich, P.C.
September 8, 2000
2
General-Purpose Financial Statements
3
TOWN OF ORO VALLEY,ARIZONA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
AS OF JUNE 30,2000
Proprietary
Governmental Fund Types Fund Type
Special Debt Capital
General Revenue Service Projects Enterprise
Assets and Other Debits
Assets
Cash and investments $ 9,459,925 $ 3,779,717 $ 166,600 $10,440,569 $ 3,889,474
Cash on deposit with paying agent - - 296,865 366,195 2,206,082
Restricted assets - - - - 2,448,130
Accounts receivable 163,807 - - 61,514 875,968
Taxes receivable 510,564 - - - -
Intergovernmental receivable 391,832 177,087 - - -
Interest receivable 65,014 21,283 2,478 63,553 46,268
Due from other funds 820,390 7,784 - - -
Prepaid items 11,750 - - - 36
Advances to other funds 469,221 - - - -
Deferred charges - - - - 895,047
Fixed assets(net,where applicable,
of accumulated depreciation) - - - - 26,113,246
Other Debits
Amount available in debt service fund - - - - -
Amount to be provided for retirement
of general long-term debt - - - - -
Total Assets And Other Debits $11,892,503 $ 3,985,871 $ 465,943 $10,931,831 $36 474 251
Liabilities,Equity and Other Credits
Liabilities
Accounts payable $ 267,714 $ 39,550 $ - $ 306,013 $ 181,561
Accrued wages and benefits 669,726 50,306 - 4,010 22,162
Claims payable - - - 600,000 -
Interest payable - - - - 806,683
Intergovernmental payable 21,543 168 - 3,876 29,493
Due to other funds 7,784 258,773 265,107 296,510 -
Customer deposits 99,982 763,135 - 4,688 160,190
Deferred revenue 159,653 5,661 - 10,193 -
Compensated absences payable - - - - 29,258
Capital leases payable - - - - 11,915
Advances from other funds - - - 469,221 -
Revenue bonds payable - - - - 30,414,029
Certificates of participation - - - - -
Total Liabilities 1,226,402 1,117,593 265,107 1,694,511 31,655 291
Equity and Other Credits
Investment in general fixed assets - - - - -
Contributed capital - - - - 2,589,698
Retained earnings
Unreserved - - - - 2,229,262
Fund balances
Reserved for preaid items 11,750 - - - -
Reserved for advances 469,221 - - - -
Unreserved,designated for
unemployment benefits 195,312 25,135 - - -
Unreserved,undesignated 9,989,818 2,843,143 200,836 9,237,320 -
Total Equity and Other Credits 10,666,101 2,868,278 200,836 9,237,320 4,818,960
Total Liabilities,Equity and Other Credits $11 892,503 $ 3,985,871 $ 465,943 $10,931,831 $36,474,251
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)
$ - $ - $27,736,285
- 2,869,142
2,448,130
1,101,289
510,564
568,919
198,596
828,174
11,786
469,221
895,047
20,099,037 - 46,212,283
200,836 200,836
6,096,945 6,096,945
$20 099 037 $ 6,297,781 $90,147,217
$ - $ - $ 794,838
746,204
- - 600,000
806,683
55,080
828,174
1,027,995
175,507
29,258
17,781 29,696
469,221
1,625,000 32,039,029
4,655,000 4,655,000
6,297,781 42,256,685
20,099,037 - 20,099,037
2,589,698
2,229,262
11,750
469,221
220,447
22,271,117
20,099,037 - 47,890,532
$20,099,037 $ 6,297,781 $90,147,217
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 30,2000
Totals
Special Debt Capital (Memorandum
General Revenue Service Projects Only)
Revenues
Taxes $ 6,139,176 $ - $ - $ - $ 6,139,176
Intergovernmental 5,486,779 1,960,903 - 1,720,000 9,167,682
Fines and forfeitures 202,714 141,913 - - 344,627
Licenses and permits 1,596,520 17,278 - - 1,613,798
Charges for services 269,665 27,136 - - 296,801
Contributions and donations 8,397 850 - - 9,247
Special assessments - - 3,138 3,086,676 3,089,814
Interest 547,657 190,589 14,000 580,359 1,332,605
Other 49,628 19,402 6 - 69,036
Total Revenues 14,300,536 2,358,071 17,144 5,387,035 22,062,786
Expenditures
Current
General government 4,127,761 289 - - 4,128,050
Public safety 6,116,785 99,605 - - 6,216,390
Highways and streets - 1,855,146 - - 1,855,146
Culture and recreation 637,084 - - - 637,084
Claims and judgements - - - 600,000 600,000
Capital outlay - - - 5,537,058 5,537,058
Debt service
Principal retirement - - 480,000 - 480,000
Interest and fiscal charges - - 328,085 27,697 355,782
Total Expenditures 10,881,630 1,955,040 808,085 6,164,755 19,809,510
Excess of revenues over(under)expenditures 3,418,906 403,031 (790,941) (777,720) 2,253,276
Other financing sources(uses)
Operating transfers in - - 699,554 917,256 1,616,810
Operating transfers out (1,616,810) - - - (1,616,810)
Total other financing sources(uses) (1,616,810) - 699,554 917,256 -
Excess of revenues and other sources
over(under)expenditures and other uses 1,802,096 403,031 (91,387) 139,536 2,253,276
Fund balance,beginning of year 8,864,005 2,393,703 363,767 9,097,784 20,719,259
Residual equity transfers - 71,544 (71,544) - -
Fund balance,end of year $10,666,101 $ 2,868,278 $ 200,836 $ 9,237,320 $22 972 535
The accompanying notes to financial statements are an integral part of this statement.
7
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENDI"T"URES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL-ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30,2000
General Special Revenue
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Taxes $ 4,962,000 $ 6,139,176 $ 1,177,176 $ - $ - $ -
Intergovernmental 5,432,316 5,486,779 54,463 1,796,000 1,960,903 164,903
Fines and forfeitures 201,000 202,714 1,714 40,000 141,913 101,913
Licenses and permits 1,105,000 1,596,520 491,520 15,400 17,278 1,878
Charges for services 210,600 269,665 59,065 16,400 27,136 10,736
Rents and royalties 10,000 - (10,000) - - -
Contributions and donations 1,000 8,397 7,397 - 850 850
Special assessments - - - - - -
Interest 318,600 547,657 229,057 58,500 140,706 82,206
Other 14,500 49,628 35,128 1,000 19,402 18 402
Total Revenues 12,255,016 14,300,536 2,045,520 1,927,300 2,308,188 380,888
Expenditures
Current
General government 13,217,399 4,127,761 9,089,638 5,248 279 4,969
Public safety 6,518,239 6,116,785 401,454 126,705 99,605 27,100
Highways and streets - - - 3,865,691 1,855,146 2,010,545
Culture and recreation 849,292 637,084 212,208 - - -
Claims and judgements - - - - - -
Capital Outlay - - - - - -
Debt service
Principal retirement - - - - - -
Interest and fiscal charges - - - - - -
Total Expenditures 20,584,930 10,881,630 9,703,300 3,997,644 1,955,030 2,042,614
Excess of revenues over(under)expenditures (8,329,914) 3,418,906 11,748,820 (2,070,344) 353,158 2,423,502
Other financing sources(uses)
Operating transfers in - - - - - -
Operating transfers out (1,901,810) (1,616,810) 285,000 - - -
Proceeds from sale of bonds 2,700,000 - (2,700,000) - - -
Total other financing sources(uses) 798,190 (1,616,810) (2,415,000) - - -
Excess of revenues and other sources
over(under)expenditures and other uses (7,531,724) 1,802,096 9,333,820 (2,070,344) 353,158 2,423,502
Fund balance,beginning of year 7,531,724 8,864,005 1,332,281 1,996,484 2,247,875 251,391
Residual equity transfers - - - 73,860 71,544 (2,316)
Fund balance,end of year $ - $10,666,101 $10,666,101 $ - $ 2,672,577 $ 2,672,577
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)
$ - $ - $ - $ - $ - $ -
- - - 3,250,000 1,720,000 (1,530,000)
15,307 3,138 (12,169) 2,322,000 3,086,676 764,676
4,563 14,000 9,437 310,000 580,359 270,359
100 6 (94) - - -
19,970 17,144 (2,826) 5,882,000 5,387,035 (494,965)
- - - - 600,000 (600,000)
- - - 17,446,008 5,537,058 11,908,950
475,000 480,000 (5,000) - - -
357,529 328,085 29,444 73,289 27,697 45,592
832,529 808,085 24,444 17,519,297 6,164,755 11,354,542
(812,559) (790,941) 21,618 (11,637,297) (777,720) 10,859,577
699,554 699,554 - 917,256 917,256 -
- - - 2,000,000 - (2,000,000)
699,554 699,554 - 2,917,256 917,256 (2,000,000)
(113,005) (91,387) 21,618 (8,720,041) 139,536 8,859,577
186,865 363,767 176,902 8,720,041 9,097,784 377,743
(73,860) (71,544) 2,316 - - -
$ - $ 200,836 $ 200,836 $ - $ 9,237,320 $ 9,237,320
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 30,2000
Enterprise
Operating revenues
Charges for sales and services $ 6,751,792
Total operating revenues 6,751,792
Operating expenses
Costs of sales and services 3,081,964
Depreciation 1,260,171
Total operating expenses 4,342,135
Operating income 2,409,657
Nonoperating revenues(expenses)
Interest revenue 438,276
Interest expense (1,627,675)
Issuance costs (52,181)
Other 49,323
Total nonoperating revenues(expenses) (1,192,257)
Net income 1,217,400
Retained earnings,beginning of year 1,011,862
Retained earnings,end of year $ 2,229,262
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 30,2000
Enterprise
INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities
Cash received from customers $ 5,818,335
Cash payments to employees for services (895,448)
Cash payments to suppliers for goods/services (2,508,709)
Nonoperating revenues 49,323
Customer deposits received 50,811
Net cash provided(used)by operating activities 2,514,312
Cash flows from capital and related financing activities
Acquisition of capital assets (1,033,492)
Principal paid on capital leases (11,257)
Interest paid on capital leases (1,173)
Principal paid on revenue bonds (395,000)
Interest paid on revenue bonds (1,569,837)
Net cash provided(used)for capital and related financing activities (3,010,759)
Cash flows from investing activities
Interest 414,284
Net cash provided by investing activities 414,284
Net increase(decrease)in cash and cash equivalents (82,163)
Cash and cash equivalents at beginning of year 8,625,849
Cash and cash equivalents at end of year $ 8,543,686
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET
Cash and investments per the balance sheet $ 3,889,474
Cash on deposit with paying agent 2,206,082
Restricted assets 2,448,130
Total $ 8,543,686
(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 30,2000
Enterprise
(Concluded)
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income $ 2,409,657
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation 1,260,171
Nonoperating revenues 49,323
(Increase)decrease in operating assets
Accounts receivable (457,833)
Prepaid expenses (36)
Other assets 262,433
Increase(decrease)in operating liabilities
Accounts payable (337,105)
Accrued payroll 1,876
Intergovernmental payable (738,057)
Compensated absences payable 13,072
Customer deposits 50,811
Net cash provided(used)by operating activities $ 2,514,312
NON-CASH INVESTING,CAPITAL AND FINANCING ACTIVITIES
Bond issuance costs of$52,181 were amortized during the year. The Town also received$256,777 in
fixed assets from developers.
The accompanying notes to financial statements are an integral part of this statement.
12
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The 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, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT A CCO UNTING 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, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES(Cont'd)
Account Groups
General Fixed Assets - The General Fixed Assets Account Group accounts for the
fixed assets of the Town.
General Long-term Debt - The General Long-term Debt Account Group accounts for
the unmatured principal balances of bonds and other long-term debt not reported in
proprietary funds.
Measurement Focus - The accounting and financial reporting treatment applied to a
fund is determined by its measurement focus. All Governmental Funds are accounted
for using a current financial resources measurement focus. With this measurement
focus, only current assets and current liabilities generally are included on the balance
sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net
current assets.
Proprietary Funds are accounted for on a cost of services or "capital maintenance"
measurement focus. This means that all assets and all liabilities (whether current or
noncurrent) associated with the activity are included on their balance sheets. The
measurement focus is upon the determination of net income, financial position and
changes in financial position.
Basis of Accounting - Basis of accounting refers to when revenues and expenditures or
expenses are recognized in the accounts and reported in the financial statements.
Governmental Funds are accounted for using the modified accrual basis of accounting.
Revenues are recognized when they become measurable and available to finance
expenditures of the current period. Expenditures are recognized when the related fund
liability is incurred, except for principal and interest on general long-term debt that are
recognized when due.
Those revenues susceptible to accrual are intergovernmental grants and appropriations,
franchise taxes, licenses, interest revenue and charges for services. Sales taxes
collected and held by the state at year end on behalf of the government also are
recognized as revenue. Fines, permits, and other revenues are not susceptible to accrual
because generally they are not measurable until received in cash.
15
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
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 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, 2000
NOTE 1 -SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES(Cont'd)
No supplementary budgetary appropriations were necessary during the year.
Encumbrances - Encumbrance accounting, under which purchase orders, contracts and
other commitments for the expenditure of monies are recorded to reserve that portion of
the applicable fund balance, is employed in the General, Special Revenue and Capital
Projects Funds. Encumbrances outstanding at year-end are reported as reservations of
fund balances since they do not constitute expenditures or liabilities.
All appropriations lapse at year-end.
Cash Equivalents - Cash equivalents consist of short-term, highly liquid investments
that are both (a) readily convertible to known amounts of cash; and (b) so near their
maturity that they present insignificant risk of changes in value because of changes in
interest rates. Generally, only investments with original maturities of three months or
less meet this definition.
Investments - Investments in securities are stated at fair value in accordance with
GASB Statement No. 31.
Prepaid items - Certain payments to vendors reflect costs applicable to future
accounting periods and are recorded as prepaid items. The costs are recorded as
expenditures in governmental fund-types when consumed rather than when purchased.
Interfund Receivables/Payables - During the course of operations, 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, 2000, 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, 2000
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, 2000
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- 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, 2000 consist of the following:
Cash on hand $ 2,750
Cash in bank 5,164,496
Cash with the County Treasurer 306,736
State Treasurer's Investment Pool 27,579,575
Total cash and investments 33,053,557
Cash on deposit with paying agent (2,869,142)
Restricted assets (2,448,130)
Total cash and investments on the
combined balance sheet $ 27,736,285
The Town's deposits as of June 30, 2000 were entirely insured or collateralized with
securities held by the Town's custodial bank in the Town's name.
19
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 2 - CASH AND INVESTMENTS(Conci'd)
The Town's investments at June 30, 2000 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 3 -RESTRICTED ASSETS
Restricted assets in the Enterprise Fund at June 30, 2000 consisted of the following:
Enterprise Fund
Future debt service $ 2,287,940
Customer deposits 160,190
$ 2,448,130
NOTE 4- CHANGES IN GENERAL FIXED ASSETS
A summary of the changes in general fixed assets follows.
Balance Completed Balance
July 1, 1999 Additions Deletions Construction June 30, 2000
Land and improvements $ 6,817,826 $ 374,424 $ -0- $ -0- $ 7,192,250
Buildings and
improvements 4,463,324 3,724 -0- 4,026,635 8,493,683
Furniture and equipment 1,887,128 755,364 (307,698) -0- 2,334,794
Vehicles 1,721,938 507,012 (221,269) -0- 2,007,681
Construction in Progress 306,420 3,790,844 -0- (4,026,635) 70,629
Total $ 15,196,636 $ 5,431,368 $ (528,967) $ -0- $ 20,099,037
Estimated cost to complete construction in progress at June 30, 2000 was $4,909,371.
20
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
•
NOTE S-PROPRIETARY FUND FIXED ASSETS
The following is a summary of proprietary fund fixed assets at June 30, 2000:
Land $ 51,691
Water system 29,392,404
Equipment and vehicles 639,325
Water rights 762,361
Construction in progress 117,131
Less: accumulated depreciation (4,849,666)
Net fixed assets $ 26,113,246
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
NOTE 6- OBLIGATIONS UNDER CAPITAL LEASES
The Town has acquired a backhoe and a police voice logger under the provisions of
long-term lease agreements classified as capital leases. Accordingly, the principal
amount of the assets, totaling $68,361 and $34,781, are capitalized in the General Fixed
Assets Account Group and the Enterprise Fund, respectively. The leases provide for
bargain purchase options at the end of the lease terms. The future minimum lease
payments under the capital leases, together with the present value of the net minimum
lease payments as of June 30, 2000, were as follows.
General
Long-term Debt Enterprise
Year ending June 30, 2001 $ 18,491 $ 12,430
Less: amount representing interest (710) (515)
Present value of net minimum
capital lease payments $ 17,781 $ 11,915
21
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 6- OBLIGATIONS UNDER CAPITAL LEASES(Conci'd)
A summary of the changes in capital lease obligations follows.
General Balance Balance
Long-term Debt July 1, 1999 Increase Reduction June 30, 2000
Furniture and equipment $ 71,893 $_-__0: $ (54,112) $ 17,781
Balance Balance
Enterprise Fund July 1, 1999 Increase Reduction June 30, 2000
Equipment $ 23,172 $-0= $ (11,257) $ 11,915
NOTE 7-REVENUE BONDS PAYABLE
Revenue bonds payable at June 30, 2000 consisted of the outstanding revenue bonds
presented below. The bonds are callable with interest payable semiannually.
Principal and interest requirements at June 30, 2000 were as follows.
General Long-term Debt
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates(%) Maturity July 1, 1999 Retirements June 30, 2000
MPC, Excise Tax Revenue
Bonds, Series 1999
3.5%-4.5% 1/1/00-09 $ 1,695,000 $ (70,000) $ 1,625,000
22
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 7-RE VENUE BONDS PAYABLE (Conci'd)
Enterprise Funds
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates(%) Maturity July 1, 1999 Retirements June 30, 2000
MPC, Water
System Acquisition,
1996 3.7%-5.6% 7/1/99-26 $ 27,975,000 $ (350,000) $ 27,625,000
MPC, Excise Tax Revenue
Bonds, Series 1999
3.5%-5.0% 1/1/00-19 3,235,000 (45,000) 3,190,000
$ 31,210,000 $ (395,000) 30,815,000
Less: unamortized discount (400,971)
Total long-term bonds payable $ 30,414,029
Revenue bond debt service requirements to maturity, including $369,835 and
$26,972,096 of general long-term debt and enterprise fund interest, respectively, are as
follows:
General
Long-term Debt Enterprise
Year ending June 30:
2001 $ 205,935 $ 2,097,965
2002 210,733 2,207,150
2003 210,070 2,194,973
2004 203,845 2,215,748
2005 217,445 2,193,798
Thereafter 946,807 46,476,491
$ 1,994,835 $ 57,386,125
23
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 8-SPECIAL ASSESSMENT DEBT WITH GOVERNMENT COMMITMENT
Special assessment debt with government commitment was retired during fiscal year
1999-00 as follows:
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates(%) Maturity July 1, 1999 (Retirements) June 30, 2000
Naranja Road Improvement
District 7.25% 1/1/00 $ 90,000 $ (90,000)
NOTE 9- CERTIFICATES OF PARTICIPATION
Certificates of Participation payable at June 30, 2000 consisted of the amounts
presented below. They are callable with interest payable semiannually. Principal and
interest requirements at June 30, 2000, were as follows.
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates(%) Maturity July 1, 1999 (Retirements) June 30, 2000
Certificates of Participation,
Series 1989 6.2%-9.2% 6/1/00 $ 170,000 $ (170,000) $ -0-
Certificates of Participation,
Series 1996 3.9%-5.75% 7/1/99-2017 4,805,000 (150,000) 4,655,000
$ 4,975,000 $ (320,000) $ 4,655,000
Debt service requirements to maturity, including $2,773,107 of interest, are as follows:
Year ending June 30:
2001 $ 408,322
2002 405,938
2003 407,994
2004 409,350
2005 410,005
Thereafter 5,386,498
$ 7,428,107
24
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 10-INTERFUND RECEIVABLES AND PAYABLES
As of June 30, 2000, interfund receivables and payables that resulted from various
interfund transactions were as follows:
Due from Due to
Other Funds Other Funds
General Fund $ 820,390 $ 7,784
Special Revenue Funds:
HURF 7,784 -0-
State Seizures and Forfeitures -0- 59,607
Federal Seizures and Forfeitures -0- 30,278
Public Transportation -0- 168,888
Debt Service Funds:
Municipal Debt Service -0- 265,107
Capital Projects Funds
Municipal Facilities -0- 296,510
$ 828,174 $ 828,174
As of June 30, 2000, advances that resulted from the approval of a long-term loan to
the Capital Projects Connection Fee Fund from the General Fund were as follows:
Advances from Advances to
Other Funds Other Funds
General Fund $ -0- $ 469,221
Capital Projects Funds:
Connection Fee Fund 469,221 -0-
$ 469,221 $ 469,221
NOTE 11 - CONTRIBUTED CAPITAL
During the year, contributed capital changed by the following amounts:
Enterprise
Fund
Contributed capital July 1, 1999 $ 2,335,870
Current year increases:
Developer Contributions 256,777
Current year decreases:
Developer refund (2,949)
Contributed capital June 30, 2000 $ 2,589,698
25
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 12 -BUDGETARY BASIS OF ACCOUNTING
Budgets for the Industrial Development Authority and the Revegetation Assurances
Special Revenue 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:
Fund Balance
Total Total at Beginning
Revenues Expenditures of Year
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances $ 2,358,071 $ 1,955,040 $ 2,393,703
Less: funds with no adopted budget (49,883) (10) (145,828)
Combined Statement of Revenues,
Expenditures and Changes in
Fund Balances - Budget and
Actual $ 2,308,188 $ 1,955,030 $ 2,247,875
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, 2000, totaled
$828,762.
Lawsuits - The Town is a defendant in various lawsuits. As of June 30, 2000, it was
determined by the Town Council that the Town's probability of being liable for
$600,000 in development fee overcharges was probable. Subsequently, in August of
2000 a judgment was rendered and the Town paid a settlement in the amount of
$600,000. Therefore, a liability has been recorded in the Capital Projects Funds at
June 30, 2000 for$600,000.
26
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
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 $8,000,000 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.
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,
2000 1999
Unpaid claims, beginning of year $ -0- $ -0-
Incurred claims (including IBNRs) 4,357 6,240
Claim payments (4,357) (6,240)
Unpaid claims, end of year $ -0- $ -0-
27
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
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, 2000 was $3,692,460. The Town's total payroll was $7,165,544.
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 1999-00 the required and
actual contributions amounted to $258,472. The employees' contributions totaled
$184,623.
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 1999-00 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.
28
TOWN OF ORO VALLEY,ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2000
NOTE 16-RETIREMENT AND PENSION PLANS(Conci'd)
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 7.71% of annual covered payroll.
Annual Pension Cost - During the year ended June 30, 1999 (the date of the last
available information), the Town's annual pension cost of $174,091 for police was
equal to the Town's required and actual contributions.
The required contribution was determined as part of the June 30, 1999 actuarial
valuation using an entry age actuarial funding method. Significant actuarial
assumptions used in determining the entry age actuarial accrued liability include (a) a
rate of return on the investment of present and future assets of 9% per year
compounded annually, (b) projected salary increases of 6.5% per year compounded
annually, and (c) additional projected salary increases of 0.0% to 3% per year
attributable to seniority/merit.
The actuarial value of the Town's assets was determined using techniques that smooth
the effects of short-term volatility in the market value of investments over a four-year
period. The Town's unfunded actuarial accrued liability is being amortized as a level
percentage of projected payroll on a closed basis. The remaining amortization period
at June 30, 1999, 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
1997 $ 165,163 100% $ -0-
1998 163,685 100 -0-
1999 174,091 100 -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.
29
THIS PAGE BLANK
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
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 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $ 4,962,000 $ 6,139,176 $ 1,177,176
Intergovernmental 5,432,316 5,486,779 54,463
Fines and forfeitures 201,000 202,714 1,714
Licenses and permits 1,105,000 1,596,520 491,520
Charges for services 210,600 269,665 59,065
Rents and royalties 10,000 - (10,000)
Contributions and donations 1,000 8,397 7,397
Interest 318,600 547,657 229,057
Other 14,500 49,628 35,128
Total Revenues 12,255,016 14,300,536 2,045,520
Expenditures
Current
General government
Town Council 81,983 82,457 (474)
Town Clerk 275,132 257,944 17,188
Magistrate Court 347,338 342,104 5,234
Town Manager 243,401 223,991 19,410
Finance 334,793 311,615 23,178
Legal 459,809 414,925 44,884
Planning and Zoning 971,541 882,902 88,639
General Administration 9,564,634 787,285 8,777,349
Custodial Facility Maintenance 146,752 130,130 16,622
Economic Development 313,249 285,626 27,623
Community Development Administration 298,440 245,615 52,825
Human Resources 180,327 163,167 17,160
Total General government 13,217,399 4,127,761 9,089,638
Public safety
Police 5,583,467 5,312,532 270,935
Building safety 934,772 804,253 130,519
Total Public safety 6,518,239 6,116,785 401,454
Culture and recreation
Parks and Recreation 849,292 637,084 212,208
Total Culture and recreation 849,292 637,084 212,208
Total Expenditures 20,584,930 10,881,630 9,703,300
Excess of revenues over(under)expenditures (8,329,914) 3,418,906 11,748,820
Other financing sources(uses)
Operating transfers out (1,901,810) (1,616,810) 285,000
Proceeds from sale of bonds 2,700,000 - (2,700,000)
Total other financing sources(uses) 798,190 (1,616,810) (2,415,000)
Excess of revenues and other sources
over(under)expenditures and other uses (7,531,724) 1,802,096 9,333,820
Fund balance,beginning of year 7,531,724 8,864,005 1,332,281
Fund balance,end of year $ - $10,666,101 $10,666,101
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 30,2000
Industrial State Federal
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Assets
Cash and investments $ 2,175,614 $ 206 $ 952,579 $ 92,436 $ 214,300 $ 344,582 $ 3,779,717
Intergovernmental receivable 153,043 - - - - 24,044 177,087
Interest receivable 14,072 - 6,051 20 - 1,140 21,283
Due from other funds 7,784 - - - - - 7,784
Total Assets $ 2,350,513 $ 206 $ 958,630 $ 92,456 $ 214,300 $ 369,766 $ 3,985,871
Liabilities and Fund Balance
Liabilities
Accounts payable $ 29,888 $ - $ - $ 186 $ 5,544 $ 3,932 $ 39,550
Accrued wages and benefits 42,536 - - - - 7,770 50,306
Intergovernmental payable 115 - - 53 - - 168
Due to other funds - - - 59,607 30,278 168,888 258,773
Customer deposits - - 763,135 - - - 763,135
Deferred revenue 2,454 - - 3,207 - - 5,661
Total Liabilities 74,993 - 763,135 63,053 35,822 180,590 1,117,593
Fund balances
Unreserved,designated
for unemployment 23,056 - - - - 2,079 25,135
Unreserved,undesignated 2,252,464 206 195,495 29 403 178,478 187,097 2,843,143
Total Fund Balance 2,275,520 206 195,495 29,403 178,478 189,176 2_ 868.278
Total Liabilities and Fund Balance $ 2,350,513 $ 206 $ 958,630 $ 92,456 $ 214,300 $ 369,766 $ 3,985,871
38
TOWN OF ORO VALLEY,ARIZONA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2000
Industrial State Federal
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Revenues
Intergovernmental $ 1,708,258 $ - $ - $ - $ - $ 252,645 $ 1,960,903
Fines and forfeitures - - - 12,954 128,959 - 141,913
Licenses and permits 17,278 - - - - - 17,278
Charges for services 7,314 - - - - 19,822 27,136
Contributions and donations - - - - - 850 850
Interest 123,541 10 49,873 2,854 5,343 8,968 190,589
Other 19,402 - - - - - 19,402
Total Revenues 1,875,793 10 49,873 15,808 134,302 282,285 2,358,071
Expenditures
Current
General government - 10 - 279 - - 289
Public safety - - - 63,219 36,386 - 99,605
Highways and streets 1,655,709 - - - - 199,437 1,855,146
Total Expenditures 1,655,709 10 - 63,498 36,386 199,437 1,955,040
Excess of revenues over(under)
expenditures 220,084 - 49,873 (47,690) 97,916 82,848 403,031
Fund balance,beginning of year 1,983,892 206 145,622 77,093 80,562 106,328 2,393,703
Residual equity transfers 71,544 - - - - - 71,544
Fund balance,end of year $ 2,275,520 $ 206 $ 195,495 $ 29,403 $ 178,478 $ 189,176 $ 2,868,278
39
TOWN OF ORO VALLEY,ARIZONA
HURF FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 1,629,000 $ 1,708,258 $ 79,258
Licenses and permits 15,400 17,278 1,878
Charges for services 4,400 7,314 2,914
Interest 50,000 123,541 73,541
Other 1,000 19,402 1_8,402
Total Revenues 1,699,800 1,875,793 175,993
Expenditures
Current
Highways and streets 3,606,038 1,655,709 1,950,329
Total Expenditures 3,606,038 1,655,709 1,950,329
Excess of revenues over(under)expenditures (1,906,238) 220,084 2,126,322
Fund balance,beginning of year 1,832,378 1,983,892 151,514
Residual equity transfers •
73,860 71,544 (2,316)
Fund balance,end of year $ - $ 2,275,520 $ 2,275,520
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 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 10,000 $ 12,954 $ 2,954
Interest 500 2,854 2,354
Total Revenues 10,500 15,808 5,308
Expenditures
Current
General government 5,248 279 4,969
Public safety 73,651 63,219 10,432
Total Expenditures 78,899 63,498 15,401
Excess of revenues over(under)expenditures (68,399) (47,690) 20,709
Fund balance,beginning of year 68,399 77,093 8,694
Fund balance,end of year $ - $ 29,403 $ 29,403
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 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 30,000 $ 128,959 $ 98,959
Interest 1,500 5,343 3,843
Total Revenues 31,500 134,302 102,802
Expenditures
Current
Public safety 53,054 36,386 16,668
Total Expenditures 53,054 36,386 16,668
Excess of revenues over(under)expenditures (21,554) 97,916 119,470
Fund balance,beginning of year 21,554 80,562 59,008
Fund balance,end of year $ - $ 178,478 $ 178,478
•
42
TOWN OF ORO VALLEY,ARIZONA
PUBLIC TRANSPORTATION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 167,000 $ 252,645 $ 85,645
Charges for services 12,000 19,822 7,822
Contributions and donations - 850 850
Interest 6,500 8,968 2,468
Total Revenues 185,500 282,285 96,785
Expenditures
Current
Highways and streets 259,653 199,437 60,216
Total Expenditures 259,653 199,437 60,216
Excess of revenues over(under)expenditures (74,153) 82,848 157,001
Fund balance,beginning of year 74,153 106,328 32,175
Fund balance,end of year $ - $ 189,176 $ 189,176
43
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44
DEBT SERVICE FUNDS
Naranja Road - accounts for the special assessments and debt service of the Naranja Road
Improvement District.
Municipal Debt Service - accounts for the payment of debt service on the 1989 and 1996
Certificates of Participation and the 1999 Municipal Property Corporation Excise Tax Revenue
Bonds.
45
TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2000
Municipal
Naranja Road Debt Service Totals
Assets
Cash and investments $ - $ 166,600 $ 166,600
Cash on deposit with paying agent - 296,865 296,865
Interest receivable - 2,478 2,478
Total Assets $ - $ 465,943 $ 465,943
Liabilities and Fund Balance
Liabilities
Due to other funds $ - $ 265,107 $ 265,107
Total Liabilities - 265,107 265,107
Fund balances
Unreserved,undesignated - 200,836 200,836
Total Fund Balance - 200,836 200,836
Total Liabilities and Fund Balance $ - $ 465,943 $ 465,943
46
TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2000
Municipal
Naranja Road Debt Service Totals
Revenues
Special assessments $ 3,138 $ - $ 3,138
Interest 1,904 12,096 14,000
Other 6 - 6
Total Revenues 5,048 12,096 17,144
Expenditures
Debt service
Principal retirement 90,000 390,000 480,000
Interest and fiscal charges 7,215 320,870 328,085
Total Expenditures 97,215 710,870 808,085
Excess of revenues over(under)expenditures (92,167) (698,774) (790,941)
Other financing sources(uses)
Operating transfers in - 699,554 699,554
Total other financing sources(uses) - 699,554 699,554
Excess of revenues and other sources
over(under)expenditures and other uses (92,167) 780 (91,387)
Fund balance,beginning of year 163,711 200,056 363,767
Residual equity transfers (71,544) - (71,544)
Fund balance,end of year $ - $ 200,836 $ 200,836
47
TOWN OF ORO VALLEY,ARIZONA
NARANJA ROAD FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 15,307 $ 3,138 $ (12,169)
Interest 3,063 1,904 (1,159)
Other 100 6 _94)
Total Revenues 18,470 5,048 (13,422)
Expenditures
Debt service
Principal retirement 90,000 90,000 -
Interest and fiscal charges 7,475 7,215 260
Total Expenditures 97,475 97,215 260
Excess of revenues over(under)expenditures (79,005) (92,167) (13,162)
Fund balance,beginning of year 152,865 163,711 10,846
Residual equity transfers (73,860) (71,544) 2,316
Fund balance,end of year $ - $ - $ -
48
TOWN OF ORO VALLEY,ARIZONA
MUNICIPAL DEBT SERVICE FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Interest $ 1,500 $ 12,096 $ 10,596
Total Revenues 1,500 12,096 10,596
Expenditures
Debt service
Principal retirement 385,000 390,000 (5,000)
Interest and fiscal charges 350,054 320,870 29,184
Total Expenditures 735,054 710,870 24,184
Excess of revenues over(under)expenditures (733,554) (698,774) 34,780
Other financing sources(uses)
Operating transfers in 699,554 699,554 -
Total other financing sources(uses) 699,554 699,554 -
Excess of revenues and other sources
over(under)expenditures and other uses (34,000) 780 34,780
Fund balance,beginning of year 34,000 200,056 166,056
Fund balance,end of year $ - $ 200,836 $ 200,836
49
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50
CAPITAL PROJECTS FUNDS
CDO Riverfront Park- accounts for the capital expenditures related to the CDO Riverfront Park.
Municipal Facilities Construction - accounts for the bond proceeds and capital expenditures of
the municipal facilities construction projects.
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.
51
TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30,2000
CDO Municipal Alternative Oro Valley
Riverfront Facilities Water Connection
Park Construction Resources Fees
Assets
Cash and investments $ 208,260 $ - $ 1,318,767 $ 1,623,014
Cash on deposit with paying agent - 366,195 - -
Accounts receivable 26,514 - - -
Interest receivable 1,231 438 8,377 10,279
Total Assets $ 236,005 $ 366,633 $ 1,327,144 $ 1,633,293
Liabilities and Fund Balance
Liabilities
Accounts payable $ 86,951 $ 66,247 $ - $ -
Accrued wages and benefits - - - -
Claims payable - - - -
Intergovernmental payable - 3,876 - -
Due to other funds - 296,510 - -
Customer deposits - - - 4,688
Deferred revenue - - - -
Advances from other funds - - - 469,221
Total Liabilities 86,951 366,633 - 473,909
Fund balances
Unreserved,undesignated 149,054 - 1,327,144 1,159,384
Total Fund Balance 149,054 - 1,327,144 1,159,384
Total Liabilities and Fund Balance $ 236,005 $ 366,633 $ 1,327,144 $ 1,633,293
52
Townwide
Library Development
Construction Impact Fees Totals
$ 99,095 $ 7,191,433 $10,440,569
366,195
35,000 61,514
43,228 63,553
$ 99,095 $ 7,269,661 $10,931,831
$ 25,723 $ 127,092 $ 306,013
4,010 4,010
600,000 600,000
3,876
296,510
4,688
10,193 10,193
469,221
25,723 741295 1,694,511
73,372 6,528,366 9,237,320
73,372 6,528,366 9,237,320
$ 99,095 $ 7,269,661 $10,931,831
53
TOWN OF ORO VALLEY,ARIZONA
CAPITAL PROJECTS FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30,2000
CDO Municpal Alternative Oro Valley
Riverfront Facilities Water Connection
Park Construction Resources Fees
Revenues
Intergovernmental $ 1,250,000 $ - $ - $ -
Special assessments - - 600,726 738,737
Interest 23,773 42,427 56,379 71,282
Total Revenues 1,273,773 42,427 657,105 810,019
Expenditures
Current
Claims and judgements - - - -
Capital outlay 2,272,228 1,395,827 137,300 52,370
Debt service
Interest and fiscal charges - - - 27,697
Total Expenditures 2,272,228 1 395,827 137,300 80,067
Excess of revenues over(under)
expenditures (998,455) (1,353,400) 519,805 729,952
Other financing sources(uses)
Operating transfers in 773,256 - - -
Total other financing sources(uses) 773,256 - - -
Excess of revenues and other sources
over(under)expenditures and
other uses (225,199) (1,353,400) 519,805 729,952
Fund balance,beginning of year 374,253 1,353,400 807,339 429,432
Fund balance,end of year $ 149,054 $ - $ 1,327,144 $ 1,159,384
54
Townwide
Library Development
Construction Impact Fees Totals
$ - $ 470,000 $ 1,720,000
- 1,747,213 3,086,676
- 386,498 580,359
- 2,603,711 5,387,035
- 600,000 600,000
70,628 1,608,705 5,537,058
- - 27,697
70,628 2,208,705 6,164,755
(70,628) 395,006 (777,720)
144,000 - 917,256
144,000 - 917,256
73,372 395,006 139,536
- 6,133,360 9,097,784
$ 73,372 $ 6,528,366 $ 9,237,320
55
TOWN OF ORO VALLEY,ARIZONA
CDO RIVERFRONT PARK FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 1,250,000 $ 1,250,000 $ -
Interest - 23,773 23,773
Total Revenues 1,250,000 1,273,773 23,773
Expenditures
Capital outlay 2,412,132 2,272,228 139,904
Total Expenditures 2,412,132 2,272,228 139,904
Excess of revenues over(under)expenditures (1,162,132) (998,455) 163,677
Other financing sources(uses)
Operating transfers in 773,256 773,256 -
Total other financing sources(uses) 773,256 773,256 -
Excess of revenues and other sources
over(under)expenditures and other uses (388,876) (225,199) 163,677
Fund balance,beginning of year 388,876 374,253 (14,623)
Fund balance,end of year $ - $ 149,054 $ 149,054
56
TOWN OF ORO VALLEY,ARIZONA
MUNICIPAL FACILITIES CONSTRUCTION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Interest $ - $ 42,427 $ 42,427
Total Revenues - 42,427 42,427
Expenditures
Capital outlay 1,435,944 1 395,827 40,117
Total Expenditures 1,435,944 1,395,827 40,117
Excess of revenues over(under)expenditures (1,435,944) (1,353,400) 82,544
Fund balance,beginning of year 1,435,944 1,353,400 (82,544)
Fund balance,end of year $ - $ - $ -
57
TOWN OF ORO VALLEY,ARIZONA
ALTERNATIVE WATER RESOURCES FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 240,000 $ 600,726 $ 360,726
Interest 40,000 56,379 16,379
Total Revenues 280,000 657,105 377,105
Expenditures
Capital outlay 1,003,680 137,300 866,380
Total Expenditures 1,003,680 137,300 866,380
Excess of revenues over(under)expenditures (723,680) 519,805 1,243,485
Fund balance,beginning of year 723,680 807,339 83,659
Fund balance,end of year $ - • $ 1,327,144 $ 1,327,144
58
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 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 775,000 $ 738,737 $ (36,263)
Interest - 71,282 71.282
Total Revenues 775,000 810,019 35,019
Expenditures
Capital outlay 1,445,014 52,370 1,392,644
Debt service
Interest and fiscal charges 73,289 27,697 45,592
Total Expenditures 1,518,303 80,067 1,438,236
Excess of revenues over(under)expenditures (743,303) 729,952 1,473,255
Fund balance,beginning of year 743,303 429,432 (313,871)
Fund balance,end of year $ - $ 1,159,384 $ 1,159,384
59
TOWN OF ORO VALLEY,ARIZONA
LIBRARY CONSTRUCTION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 2,000,000 $ - $ (2,000,000)
Total Revenues 2,000,000 - (2,000,000)
Expenditures
Capital outlay 4,144,000 70,628 4,073,372
Total Expenditures 4,144,000 70,628 4,073,372
Excess of revenues over(under)expenditures (2,144,000) (70,628) 2,073,372
Other financing sources(uses)
Operating transfers in 144,000 144,000 -
Proceeds from sale of bonds 2,000,000 - (2,000,000)
Total other financing sources(uses) 2,144,000 144,000 (2,000,000)
Excess of revenues and other sources
over(under)expenditures and other uses - 73,372 73,372
Fund balance,beginning of year - - -
Fund balance,end of year $ - $ 73,372 $ 73,372
60
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 30,2000
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ - $ 470,000 $ 470,000
Special assessments 1,307,000 1,747,213 440,213
Interest 270,000 386,498 116,498
Total Revenues 1,577,000 2,603,711 1,026,711
Expenditures
Current
Claims and judgements - 600,000 (600,000)
Capital outlay 7,005,238 1,608,705 5,396,533
Total Expenditures 7,005,238 2,208,705 4,796,533
Excess of revenues over(under)expenditures (5,428,238) 395,006 5,823,244
Fund balance,beginning of year 5,428,238 6,133,360 705,122
Fund balance,end of year $ - $ 6,528,366 $ 6,528,366
61
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62
GENERAL FIXED ASSETS ACCOUNT GROUP
General fixed assets consist of land and improvements, buildings and improvements, equipment
and vehicles. These assets represent a major investment of Town funds. Adequate control and
accountability of general fixed assets are essential to the protective custody of Town property.
63
TOWN OF ORO VALLEY,ARIZONA
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE
JUNE 30,2000 AND 1999
2000 1999
GENERAL FIXED ASSETS
Land and improvements $ 7,192,250 $ 6,817,826
Buildings and improvements 8,493,683 4,463,324
Furniture and equipment 2,334,794 1,887,128
Vehicles 2,007,681 1,721,938
Construction in progress 70,629 306,420
Total $20,099,037 $15,196,636
INVESTMENT IN GENERAL FIXED
ASSETS BY SOURCE
General Fund $ 6,486,256 $ 6,125,162
Special Revenue Funds 1,390,174 984,313
Capital Projects Funds 10,376,160 6,281,320
Donated Assets 1,846,447 1,805,841
Total $20,099,037 $15,196,636
64
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
AS OF JUNE 30,2000
Buildings Furniture Construction
Land and and and in
Improvements Improvements Equipment Vehicles Progress Total
FUNCTION AND ACTIVITY
General government $ 6,086,542 $ 3,613,766 $ 892,254 $ 108,058 $ 70,629 $10,771,249
Public safety - 1,152,753 710,346 1,318,042 - 3,181,141
Public works 355,708 2,501,143 504,452 351,955 - 3,713,258
Culture and recreation 750,000 1,226,021 225,694 60,074 - 2,261,789
Public Transportation - - 2,048 169,552 - 171,600
Total $ 7,192,250 $ 8,493,683 $ 2,334,794 $ 2,007,681 $ 70,629 $20,099,037
65
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED JUNE 30,2000
General Fixed General Fixed
Assets Completed Assets
July 1, 1999 Additions Deletions Construction Adjustments June 30,2000
FUNCTION AND ACTIVITY
Land and improvements
General government $ 6,067,826 $ 18,716 $ - $ - $ - $ 6,086,542
Public works - 355,708 - - - 355,708
Culture and recreation 750,000 - - - - 750,000
Total Land and Improvements 6,817,826 374,424 - - - 7,192,250
Buildings and improvements
General Government 2,031,422 - - 1,582,344 - 3,613,766
Public safety 1,151,579 1,174 - - - 1,152,753
Public works 54,302 2,550 - 2,444,291 - 2,501,143
Culture and recreation 1,226,021 - - - - 1,226,021
Total Buildings and Improvements 4,463,324 3,724 - 4,026,635 - 8,493,683
Furniture and Equipment
General Govenment 691,665 373,009 (170,351) - (2,069) 892,254
Public safety 614,697 158,335 (68,953) - 6,267 710,346
Public works 355,956 210,350 (57,656) - (4,198) 504,452
Culture and recreation 224,810 11,622 (10,738) - - 225,694
Public Transfportation - 2,048 - - - 2,048
Total Furniture and Equipment 1,887,128 755,364 (307,698) - - 2,334,794
Vehicles
General Govenment 171,356 17,080 (63,816) - (16,562) 108,058
Public safety 1,129,943 234,922 (46,823) - - 1,318,042
Public works 397,267 59,330 (104,642) - - 351,955
Culture and recreation 23,372 26,128 (5,988) - 16,562 60,074
Public Transportation - 169,552 - - - 169,552
Total Vehicles 1,721,938 507,012 (221,269) - - 2,007,681
Construction in Progress
General Government 146,539 1,506,434 - (1,582,344) - 70,629
Culture and Recreation 159,881 2,284,410 - (2,444,291) - -
Total Construction in Progress 306,420 3,790,844 - (4,026,635) - 70,629
TOTAL GENERALFIXED ASSETS $15,196,636 $ 5,431,368 $ (528,967) - - $20,099,037
66
STATISTICAL SECTION
67
Town of Oro Valley,Arizona
General Government Revenues by Source
Last Ten Fiscal Years
(Unaudited)
Fiscal Fines Licenses Charges Contributions
Year Inter- and and for and Special
Ended Taxes Governmental Forfeitures Permits Services Donations Assessments Interest Other Total
1991 $2,745,202 $ 161,558 $ 566,637 $ 769,966 $ - 1 $ - $ - $ 391,519 $ 351,476 $4,986,358
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 1,852,882 267,0937 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 1 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
Source: Oro Valley Finance Department
68
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
1991 $1,561,085 $1,607,495 $ 326,736 $ - $1,698,346 $ - $ 423,420 $ 5,617,082
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 - 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 5,537,058 600,000 835,782 19,809,510
Source: Oro Valley Finance Department
69
Town of Oro Valley, Arizona
State of Arizona Sales Tax Information
Taxable Activities, Tax Rates and Distribution Shares
(Unaudited)
Tax Distribution
Business Activity Category Rate Share
Mining-Severance 2.500% 80.00%
Oil and Gas, Sand and Gravel 3.125% 32.00%
Transportaton- Persons and Freight 5.000% 20.00%
Utilities 5.000% 20.00%
Communication 5.000% 20.00%
Publishing 5.000% 20.00%
Job Printing 5.000% 20.00%
Private Cars/Pipelines 5.000% 20.00%
Prime Contracting 5.000% 20.00%
Owner Buildings 5.000% 20.00%
Restaurants and Bars 5.000% 40.00%
Amusements 5.000% 40.00%
Personal Property Rentals 5.000% 40.00%
Retail (excluding food sales) 5.000% 40.00%
Hotel/Motel 5.500% 50.00%
Membership Camping 5.000% 40.00%
Timbering- Severance (a) 80.00%
(a)The amount of severance tax levied on a severer engaged in the business of
timbering shall b e:
(1) Two dollars thirteen cents per thousand board feet for timber products
that are derived from ponderosa pine.
(2) One dollar fifty-one cents per thousand board feet for timber products
derived from all species except ponderosa pine.
Source: Arizona Department of Revenue
70
Town of Oro Valley, Arizona
Transaction Privilege (Sales) Tax Rates by Category
(Unaudited)
Business Activity Category Rate
Publishing 2.0%
Printing and Advertising 2.0%
Contracting 2.0%
Retail Sales 2.0%
Restaurants and Bars 2.0%
Amusements 2.0%
Miscellaneous 2.0%
Hotel/Lodging Room Rentals 3.0%
Source: Oro Valley Finance Department
71
Town of Oro Valley,Arizona
Historical and Projected Excise Tax Collections
($000's)
June 30,2000
(Unaudited)
Actual(a) Projected
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year Year
Revenue Source 1996/97 1997/98 1998/99 1999/00 2000/01 2000/02
Town Sales and Franchise Taxes $ 3,866 $ 3,845 $ 4,519 $ 6,139 $ 5,857 $ 6,091
Licences and Permits 930 1,069 1,396 1,597 2,002 2,082
Fines 223 184 210 203 220 229
State-Shared Sales Tax 1,387 1,465 1,571 1,727 1,788 1,860
State-Shared Income Tax 1,489 1,682 1,963 2,178 2,342 2,436
Total $ 7,895 $ 8,245 $ 9,659 $ 11,844 $ 12,209 $ 12,698
(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
72
Town of Oro Valley,Arizona
Town Transaction Privilege(Sales)and Franchise Tax Collections
By Industry Classification
June 30,2000
($000's)
(Unaudited)
Actual Projected
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Industry Classification 1996/97 1997/98 1998/99 1999/2000 2000/01 2001/02
Construction $ 1,844 $ 1,898 $ 2,398 $ 3,023 $ 2,695 $ 2,803
Manufacturing 2 4 3 3 3 3
Transportation,Communications&Utilities 1 4 17 28 28 29
Wholesale Trade 19 18 13 13 15 16
Retail Trade 486 515 674 1,497 1,710 1,778
Restaurants,Bars&Lodging 888 896 916 1,053 1,100 1,144
Fire,Insurance&Real Estate 115 123 15 25 28 29
Services 196 202 256 221 200 208
All Other 39 2 2 51 57 59
Cable Franchise 104 183 207 225 233 242
Total $ 3,694 $ 3,845 $ 4,501 $ 6,139 $ 6,069 $ 6,311
Source: Oro Valley Finance Department
73
TOWN OF ORO VALLEY, ARIZONA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
(UNAUDITED)
Special Special
Fiscal Assessment Assessment
Year Billing Collected
1991 $ 218,000 $ 218,000
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
Source: Oro Valley Finance Department
Includes only debt service funds.
74
TOWN OF ORO VALLEY,ARIZONA
ESTIMATED DEBT SERVICE COVERAGE
REGARDING
EXCISE TAX COLLECTIONS
(UNAUDITED)
Municipal Property Corporation
1996 1999 1999 1996
Municipal Excise Tax Excise Tax Certificates
Water Systems Revenue Bonds Revenue Bonds of
Acquisition Bonds Water Building Participation Projected
Fiscal Year Projected Excise Tax
Ending I Annual Annual Annual Annual Combined Excise Tax Debt Service
(June 30) Total Total Total Total Debt Service Collections Coverage
1999 $1,831,100 $416,844 $2,247,944 9,641,000 4.29x
2000 $1,816,750 $234,752 $110,606 $410,281 $2,572,389 11,844,000 4.61x
2001 $1,826,876 $263,808 $205,935 $408,322 $2,704,941 12,209,000 4.52x
2002 $1,935,562 $269,130 $210,733 $405,938 $2,821,363 12,698,000 4.51x
2003 $1,938,312 $269,285 $210,070 $407,994 $2,825,661 4.50x
2004 $1,939,162 $ 263,685 $203,845 $409,350 $2,816,042 4.51x
2005 $1,938,312 $ 263,285 $217,445 $410,005 $2,829,047
2006 $1,935,712 $ 271,985 $210,290 $414,881 $2,832,868
2007 $1,956,312 $ 275,575 $207,835 $413,959 $2,853,681
2008 $1,947,512 $272,875 $209,895 $417,220 $2,847,502
2009 $1,937,412 $270,330 $211,425 $414,225 $2,833,392
2010 $1,951,012 $272,140 $107,363 $414,994 $2,745,509
2011 $1,937,012 $ 273,020 $414,900 $2,624,932
2012 $1,944,776 $ 268,540 $413,944 $2,627,260
2013 $1,949,812 $ 166,340 $412,125 $2,528,277
2014 $1,952,126 $ 225,375 $414,300 $2,591,801
2015 $1,951,712 $ 221,875 $415,325 $2,588,912
2016 $1,947,600 $227,875 $415,200 $2,590,675
2017 $1,940,712 $ 223,375 $413,925 $2,578,012
2018 $1,931,050 $ 223,500 $411,500 $2,566,050
2019 $1,918,050 $ 223,125 $2,141,175
2020 $1,952,250 $1,952,250
2021 $1,958,718 $1,958,718
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
75
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF BONDED INDEBTEDNESS
JUNE 30,2000
(UNAUDITED)
Total General Obligation Bonded Debt None
Primary Assessed Valuation $ 210,675,432
Secondary Assessed Valuation 220,687,234
Estimated Full Cash Value 1,874,760,891
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 $ 27,270,405
Certificates of Participation 1996 Land Acquisition 07/01/17 4,655,000
Municipal Prop. Corp.-Excise Tax Rev.Bonds 1999 Dev. Serv.Bldg. 07/01/09 1,625,000
Municipal Prop. Corp.-Excise Tax Rev.Bonds 1999 Water Improvements 07/01/19 3,143,624
76
Town of Oro Valley,Arizona
Direct and Overlapping General Obligation Bonded Debt
June 30, 2000
(Unaudited)
General
Obligation Approx. Net Debt
Jurisdiction Bonded Debt Percent Amount
Direct:
Town of Oro Valley $ - 100.00 $ -
Overlapping:
State of Arizona - 0.7 -
Pima County (1) 146,468,000 5.26 7,704,217
Pima County Community
College District(1) - 5.26 -
Pima County Flood Control
District(1) 7,360,000 6.19 455,584
Amphitheater Unified School
District No. 10 (2) 96,685,000 30.15 29,150,528
Total Overlapping 37,310,329
Total direct and overlapping general
obligation bonded debt $ 37,310,329
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
@ 27,350 Valuation Value
Direct General Obligation
Bonded Debt $ - 0.00% 0.00%
Direct and Overlapping 1,364.18 16.91% 1.99%
General Obligation Bonded Debt
77
TOWN OF ORO VALLEY,ARIZONA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30,2000
(UNAUDITED)
Net secondary assessed valuation $ 220,687,234
Calculation of 20%Debt Limitation
20%of secondary net
assessed valuation $ 44,137,447
Bonds outstanding -
Net 20%Debt Limitation 44,137,447
Calculation of 6%Debt Limitation
6%of secondary net
assessed valuation 13,241,234
Bonds outstanding -
Net 6%Debt Limitation 13,241,234
Total Bonding Capacity $ 57,378,681
(1) Under Arizona law, cities can issue general obligation bonds for general municipal
purposes up to an amount not exceeding 6%of assessed valuation.
(2) Under Arizona law, cities can issue additional general obligation bonds for
supplying specific services, such as water, sewer, lighting, parks and recreational
facilities up to an amount not exceeding 20%of assessed valuation.
Source: Oro Valley Finance Department
78
Town of Oro Valley,Arizona
Property Tax Assessment Ratios and
Comparative Secondary Assessed Valuation Histories
Tax Years 1995 through 2000
(Unaudited)
Property Classification 1995 1996 1997 1998 1999 2000
Mining 29% 28% 27% 26% 25% 25%
Utility 29% 28% 27% 26% 25% 25%
Commerical and Industrial 25% 25% 25% 25% 25% 25%
Agriculture and Vacant Land 16% 16% 16% 16% 16% 16%
Owner Occupied Residential 10% 10% 10% 10% 10% 10%
Leased or Rented Residential 10% 10% 10% 10% 10% 10%
Railroad,Private Car Company 26% 24% 23% 22% 21% 21%
&Airline Flight Property
Source: Arizona Department of Revenue
79
Town of Oro Valley,Arizona
Comparative Secondary Assessed Valuation Histories
Tax Years 1995 through 2000
(Unaudited)
Pima State of
Tax Year County Arizona
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
80
Town of Oro Valley,Arizona
Assessed Valuations and Tax Rates
June 30,2000
(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)
2000
Secondary Primary Tax Rates
Assessed Assessed Per$100 of
Overlapping Municipality Valuation Valuation Assessed Valuation
State of Arizona $ 32,071,738,214 $ 30,144,285,019 0.0000
Pima County 4,196,858,967 4,061,227,651 4.0720
Pima Cty. Comm. College Dist. 4,196,858,967 4,061,227,651 0.3865
Pima County Library District 4,196,858,967 N/A 0.2024
Pima Cty.Flood Control Dist. 3,569,807,606 N/A 0.3046
Pima Cty.Fire Dist. 4,196,858,967 N/A 0.0495
Central AZ. Water Conservation
District 4,196,858,967 N/A 0.1300
Golder Ranch Fire District 93,771,429 N/A 1.8900
Amphitheater Unified School
District 732,038,272 704,744,770 5.1457
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 12.1807
Total Tax Rates Inside Town of Oro Valley,
and Amphitheater Unified School District
No. 10 and Outside Golder Ranch Fire
District 10.2907
(1) Based upon 2000 data obtained from the tax rolls of the Arizona Department of Revenue.
81
TOWN OF ORO VALLEY,ARIZONA
PRIMARY AND SECONDARY PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
(PER$100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
(UNAUDITED)
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
1991 0.4700 5.3340 0.5871 0.9448 0.2025 0.1400 0.0528 6.9033 0.0000 14.6345
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
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.
82
TOWN OF ORO VALLEY,ARIZONA
NET ASSESSED AND FULL CASH VALUES OF TAXABLE PROPERTY
LAST TEN TAX YEARS
(UNAUDITED)
Secondary Total
Tax Assessed Full Value to Full
Year Type Value Cash Value Cash Value
1991 Secondary $ 61,090,215 $ 462,253,305 13.22%
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%
Source: Pima County Assessor
83
Town of Oro Valley,Arizona
Secondary Assessed Valuation by Property Classification
Last Five Tax Years
(Unaudited)
1996 1997 1998 1999 2000
Secondary Secondary Secondary Secondary Secondary
Assessed Assessed Assessed Assessed Assessed
Property Class Valuation Valuation Valuation Valuation Valuation
Utilities $ 3,573,693 $ 3,723,602 $ 3,585,691 $ 3,805,840 $ 4,356,308
Commercial and Industrial 13,447,546 15,587,445 19,040,627 22,862,660 27,360,621
Agricultural and Vacant 16,345,970 22,846,489 24,377,563 22,076,492 26,182,766
Residential(owner occupied) 91,531,607 116,846,833 124,950,876 139,909,745 154,208,262
Residential(rental) 5,433,925 6,260,831 6,812,125 7,992,904 8,579,277
Commercial Historical Property 5,584 - - - -
$ 130,338,325 $ 165,265,200 $ 178,766,882 $ 196,647,641 $ 220,687;234
Source: Arizona Department of Revenue,Abstract of the Assessment Role and the Assessor of the County.
84
TOWN OF ORO VALLEY,ARIZONA
SECONDARY ASSESSED VALUATION OF MAJOR TAXPAYERS
JUNE 30,2000
(UNAUDITED)
2000 As%of Town's
Secondary Total Secondary
Assessed Assessed
Taxpayer Valuation Valuation
El Conquistador Hotel Associates $ 13,417,409 6.08%
Tucson Electric Power 3,613,599 1.64%
Evans Withycombe Finance Partnership 1,818,800 0.83%
Overland Vistoso Limited Partnership 1,739,328 0.79%
Barclay Group No 10&Dayton 1,509,387 0.69%
Lincoln National Life Insurance 1,248,885 0.57%
Canada Verde Luxury Development 1,167,720 0.53%
U.S.West Communications 1,163,956 0.53%
Gateway Canyon,Inc. 1,140,000 0.52%
Home Depot 1,056,096 0.48%
Totals $ 27,875,180 12.66%
Source: Pima County Assessor's Office
85
TOWN OF ORO VALLEY,ARIZONA
HISTORICAL AND PROJECTED WATER SYSTEM REVENUES,
EXPENSES,DEBT SERVICE AND COVERAGE
(UNAUDITED)
Historical Actual
1996/97 1997/98 1998/99 1999/00
Revenues:
Water revenues $4,313,185 $ 4,494,937 $ 4,713,632 $6,454,446
Other revenues 60,820 4,637 217,573 346,669
Interest income 225,118 279,891 288,095 438,276
Total revenues 4,599,123 4,779,465 5,219,300 7,239,391
Expenditures:
Personnel 427,402 490,399 622,762 910,396
Operations&maintenance 1,087,435 1,238,034 1,816,542 1,951,456
CAP water costs 114,261 167,078 180,704 220,112
Total expenditures 1,629,098 1,895,511 2,620,008 3,081,964
Net water system revenues 2,970,025 2,883,954 2,599,292 4,157,427
Water supported debt service:
1996 Bonds debt service 1,597,475 1,818,775 1,831,100 1,816,750
1999 Water related debt service 234,752
Total water supported debt service $1,597,475 $ 1,818,775 $ 1,831,100 $2,051,502
Net water system revenues
debt service coverage 1.86 x 1.59 x 1.42 x 2.03 x
Source: Oro Valley Finance Department
86
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
(UNAUDITED)
SCHEDULE OF WATER RATES
EFFECTIVE AUGUST 19,2000
METER BASE RATE COMMODITY COMMODITY COMMODITY
SIZE includes TIER 1 TIER 2 TIER 3
1,000 gallons $1.78 per 1000 gallons $2.08 per 1000 gallons $2.31 per 1000 gallons
5/8 x 3/4 $11.25 0-8,000 8,001-16,000 over 16,000
1 $28.13 0-16,000 16,001-27,000 over 27,000
1.5 $56.25 0-38,000 38,001-64,000 over 64,000
2 $90.00 0-80,000 80,001-134,000 over 134,000
3 $180.00 0-186,000 186,001-311,000 over 311,000
4 $281.25 0-169,000 169,001-283,000 over 283,000
6 $562.50 0-1,800,000 1,800,001-3,006,000 over 3,006,000
8 $1,125.00 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
87
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
(UNAUDITED)
Meter Installation
Meter Size Charges AWRD Fees
(in inches) Effective 10/2/1999 Effective 8/13/1996
5/8"X 3/4" $150.00 $300.00
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%sales tax must be added to meter installation fees.
88
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
JULY 5,2000
(UNAUDITED)
Potable Water System
Development Impact Fee Schedule
Single-Family *Comercial/ Irrigation(non-turf)
Meter Size Residential Industrial Fees Meter Fees
5/8" $1,774 $4,080 $3,193
1" $4,435 $10,200 $7,983
1 1/2" $8,870 $20,400 $15,965
2" $14,192 $32,640 $25,544
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.
89
Town of Oro Valley, Arizona
Number of Meters Connected
(Unaudited)
Fiscal Meters Running
Year Connected Total
Pre-05/01/96 * 9,863 9,863
1995/96 ** 152 10,015
1996/97 523 10,538
1997/98 802 11,340
1998/99 985 12,325
1999/00 **** 2,157 14,482
2000/01 *** 1,216 15,698
2001/02 *** 1,253 16,951
2002/03 *** 1,291 18,242
2003/04 *** 1,330 19,572
2004/05 *** 1,370 20,942
2005/06 *** 1,412 22,354
2006/07 *** 1,455 23,809
2007/08 *** 1,499 25,308
* 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
90
Town of Oro Valley,Arizona
Number of Connections by Type
Fiscal Year 1999/00
(Unaudited)
Number Percentage Percentage
of of Water of
User Type Connections Total Revenues Total
Residential 13,316 91.95% $ 4,017,640 65.65%
Commercial 164 1.13% 366,779 5.99%
Irrigation 310 2.14% 492,441 8.05%
Construction 642 4.43% 229,414 3.75%
Turf 10 0.07% 967,720 15.81%
Wholesale/Unmetered 40 0.28% 45,884 0.75%
Totals 14,482 100.0% $ 6,119,878 100.0%
Source: Oro Valley Water Utility and Finance Department
91
Town of Oro Valley,Arizona
History of Connections to the Water System
Last Five Fiscal Years
(Unaudited)
Fiscal
Years Single Multi-
Ending Family Family Commercial Irrigation Turf Total Total
June 30 Connections Connections Connections Connections Connections Connections EDU's(a)
2000 927 24 33 21 1 1,006 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 (b) 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 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.
92
Town of Oro Valley,Arizona
History of Building Permits
Last Five Fiscal Years
(Unaudited)
Fiscal Year Ending June 30,
Building Permits 1996 1997 1998 1999 2000
Single Family Residential 781 684 851 1,020 1,144
Office 1 5 8 9 14
Miscellaneous 38 28 20 23 102
Retail 1 3 - 7 11
Apartments - 1 - 6 10
Total Commercial 40 37 28 45 137
Total 821 721 879 1,065 1,281
Source: The Town.
93
Town of Oro Valley,Arizona
Schedule of the 15 Largest Water System Customers
Fiscal Year 1999/00
(Unaudited)
Annual Annual
Gallons Water
Water System Customer Delivered* Charges
El Conquistador Golf Course&Country Club $ 403,967 $ 795,156
Sun City Golf Course 143,821 279,668
Sheraton El Conquistador Resort 55,651 124,505
Vistoso Highland Golf Course 171,089 61,352
Sun City Community Association 20,284 57,963
Stone Canyon Golf Course 162,312 53,400
Rockridge Apartments 20,011 47,062
Copper Creek Elementary School 8,367 44,146
La Reserve Apartments(Evans/Withycombe) 18,835 42,870
La Cholla Air Park 19,848 38,887
The Boulder Apartments 11,801 26,760
Fry's Grocery Store 8,744 21,247
Honeywell(Allied Signal) 6,436 18,479
Palo Verde Christian School 5,581 16,633
Marana Public School(DeGrazia) 5,857 15,041
Totals $ 1,062,604 $ 1,643,169
* 000's omitted.
Source: Town
94
TOWN OF ORO VALLEY,ARIZONA
DEMOGRAPHIC STATISTICS
JUNE 30, 2000
(UNAUDITED)
Population by Age Group
Percentage
Age Group Number of Total
Under 5 1,294 4.73%
5 - 14 3,517 12.86%
15 - 19 1,376 5.03%
20 -29 1,649 6.03%
30-39 3,777 13.81%
40 -49 4,376 16.00%
50 - 64 5,147 18.82%
65 and over 6,214 22.73%
Total 27,350 100.00%
Population by Ethnic Background
Percentage
Category Number of Total
White 24,793 90.65%
Hispanic 976 3.57%
Black 216 0.79%
Native American 101 0.37%
Other 1,264 4.62%
Total 27,350 100.00%
Sources: Town of Oro Valley Planning and Zoning Department
95
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TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF TOP EMPLOYERS
JUNE 30,2000
(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 615
Canyon Del Oro High School School 226
RVSI/Vanguard Automation Robotics/Automation 117
Town of Oro Valley Government 223
El Conquistador Country Club Dining/Recreation 135
Fry's Food Stores(2) Grocery Store 232
ABCO Food Stores Grocery Store 85
Selectide Medical Research 58
Oro Valley Country Club Dining/Recreation 100
Walgreens(2) Drug Store 35
Pizza Hut Restaurant 46
Burger King Restaurant 29
Target Retail Store 120
Securaplane Aerospace 110
Safeway Grocery Store 76
Home Depot Retail Store 113
Rubio's Baja Grill Restaurant 22
Carl's Junior Restaurant 18
PetsMart Retail Store 27
Sleep America Retail Store 2
Payless Shoes Retail Store 5
General
The Town of Oro Valley encompasses an area of approximately 32 square miles. Located in
northeastern Pima County, the Town is six miles north of the Tuscon city limits. The Town's
population was estimated at 27,350 and recorded a 1.9%unemployment rate in 2000.
97
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