HomeMy WebLinkAboutFinancial Reports-Comprehensive Annual Financial Report (CAFR) - 6/30/1999 Town of Oro Valley,
Arizona
Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 1999
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
of the
TOWN OF ORO VALLEY, ARIZONA
for the
FISCAL YEAR ENDED JUNE 30, 1999
Prepared by the Finance Department
Town Manager
Chuck Sweet
Finance Director
David L. Andrews
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TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
Contents Page
INTRODUCTORY SECTION
Letter of Transmittal i
GFOA Certificate of Achievement x
Organizational Chart xi
List of Principal Officials xii
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 34
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
Contents (Cont'd) Page
Combining, Individual Fund and Account Group
Statements and Schedules
GENERAL FUND:
Statement of Revenues, Expenditures and
Changes es in Fund Balance - Budget and Actual 38
SPECIAL REVENUE FUNDS:
CombiningBalance Sheet 40
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 41
HURF Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 42
State Seizures and Forfeitures Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 43
Public Transportation Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance -Budget and Actual 44
DEBT SERVICE FUNDS:
CombiningBalance Sheet 46
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 47
Naranj a Road Fund:
Statement of Revenues, Expenditures and Changes in
and Balance - Bud et and Actual 48
F g
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
Contents (Cont'd) Page
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 53
CDO Riverfront Park Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 54
Municipal Facilities Construction Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 55
Land Acquisition and Parks Development Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 56
Alternative Water Resources Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 57
Oro Valley Water Connection Fees Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 58
Townwide Roadway Development Impact Fee Fund:
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual 59
TOWN OF ORO VALLEY, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 1999
Contents (Concl'd) Page
GENERAL FIXED ASSETS ACCOUNT GROUP:
Comparative Schedules of General
Assets
Fixed by Source 62
Schedule of General Fixed Assets by
Function and Activity63
Schedule of Changes in General Fixed Assets
Function and Activity64
by
STATISTICAL SECTION
Government Revenues
General by Source 66
Goverment Expenditures
General Gov p by Function 67
Taxable Activities, Tax Rates and Distribution Shares 68
Transaction Privilege (Sales) Tax Rates by Category 69
Historical and Projected Excise Tax Collections 70
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Town Transaction Privilege (Sales) and Franchise Tax Collections 71
EstimatedRegarding
Debt Service Coverage Re Excise Tax Collections 72
Statement
of Bonded Indebtedness 73
Direct and Overlapping General Obligation Bonded Debt 74
n of Legal Debt Margin 75
Property Tax Assessment Ratios and Comparative Secondary Assessed
Valuation Histories 76
SecondaryAssessed Valuation Histories 77
Comparative 78
Assessed Valuations and Tax Rates
Primary and Secondary Property Tax Rates Direct and
Overlapping
Governments 79
Net Assessed and Full Cash Values of Taxable Property 80
Assessed Valuation byProperty Classification 81
Secondary 82
Secondary Assessed Valuation of Major Taxpayers
Historical and Projected Water System Revenues, Expenses, Debt
and
Service Coverage 83
Oro Valley Water Utility -
of Rates, Fees and Charges es 84 g
Number of Meters Connected 86
of Connections byType 87
Number yp 88
Schedule of the Fifteen Largest Water System Customers
Demographic Statistics 89
Property Value,
Construction and Bank Deposits 90
Em to ers 91
Schedule of Top ploy
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►► TOWN OF ORO VALLEY
11, 11000 N. LA CANADA DRIVE
ORO VALLEY, ARIZONA 85737
A ,,`,, Administrative Offices(520)297-2591 Fax(520)297-0428
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FUNDED�9
September 20, 1999
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, 1999, is hereby submitted. Local ordinances and state statutes require that the
Town issue annually a report on its financial position and activity, and that this report be audited
by an independent firm of certified public accountants. Responsibility for both the accuracy of
the data, and the completeness and fairness of the presentation, including all disclosures, rests
with management. To the best of our knowledge and belief, the enclosed data are accurate in all
material respects and are reported in a manner that presents fairly the financial position and
results of operations of the various funds and account groups of the Town of Oro Valley. All
disclosures necessary to enable the reader to gain an understanding of the Town's activities have
been included.
The Comprehensive Annual Financial Report is presented in three sections: Introductory,
Financial and Statistical. The Introductory Section includes this letter of transmittal, the GFOA
Certificate of Achievement, an organizational chart and a list of the Town of Oro Valley's
elected officials and department heads. The Financial Section includes the general purpose
financial statements and the combining and individual fund and account group financial
statements and schedules, as well as the independent auditor's report on these financial
statements and schedules. The Statistical Section includes selected financial and demographic
information, generally presented on a multi-year basis.
The Town of Oro Valley is required to undergo an annual single audit in conformity with the
provisions of the Single Audit Act of 1996 and U.S. Office of Management and Budget's
Circular A-133, Audits of State and Local Governments. The auditor's report states that the
Town of Oro Valley, Arizona, complied, in all material respects, with the provisions required of
the Single Audit Act of 1996 and U.S. Office of Management and Budget Circular A-133,Audits
of States, Local Governments, and Non-Profit Organizations.
The financial reporting entity (the Town) includes all the funds and account groups of the
primary government (i.e., the Town of Oro Valley as legally defined). The Town provides a full
range of services including police protection; the construction and maintenance of streets and
infrastructure; the provision of water services; public transportation services; recreational
activities 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.
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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 25,455.
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 Mayor is
elected by the citizens of Oro Valley. The Vice-Mayor is selected by the Council from among its
members. 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 economic outlook for the Town of Oro Valley is anticipated to remain positive over the next
five to ten years. Sales tax collections from the construction, retail trade, and hotel/motel
lodging industries constituted approximately 91% of all sales tax receipts for the fiscal year
ended June 30, 1999. Construction sales tax collections of $2,397,601 comprised 56% of all
sales tax receipts for the fiscal year. This figure reached an all time high this year and exceeded
last fiscal year by approximately 26%. The previous high was FY 1995/96 when $2,220,000 in
construction related sales taxes were collected.
Sales tax collections from retail trade continued to increase and offer considerable opportunities
for growth and sales tax base diversification. Approximately $674,000 was collected in FY
1998/99, a 31% increase over the previous year. Collections in FY 1999/2000 are estimated to
double to around $1.3M as several major new retailers will be open for business in the new fiscal
year. Additional retail interest continues to remain strong among commercial developers.
The hotel/motel lodging industry makes up about 19% of the Town's sales tax base. Receipts
decreased 2.5% from the previous year. However, several new projects are under consideration
and continued industry demand should help to maintain and possibly significantly expand the
industry as a major revenue source for the Town.
Other revenue sources such as state shared revenues, grants and impact fees are expected to
remain stable and reliable over the next few years. Based on the Town's population growth, the
Year 2000 Census may increase the Town's portion of state shared revenues by approximately
$2.7M, beginning in fiscal year 2001/02.
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MAJOR INITIATIVES
The Town of
Oro Valleyhas started and is anticipated to complete several major capital
improvement projects in fiscal year 1999/2000.
The Town began preliminaryarchitectural and landscaping work on the CDO Riverfront Park in
this fiscal ye budget The bud et for fiscal year 1999/2000 includes funding in the amount of
$2,412,132 132 for the completion of the park which is scheduled to open in the spring of 2000.
AnotherJ capitalproject major roJ'ect that began in this fiscal year is the construction of a 9,810 square
services buildingto be located at the existing Town hall facility. The building
foot development
be for the communitydevelopment and the public works departments. The facility is
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scheduled for completion in February or March of 2000. The estimated cost of the project is
$1,525,000
includingarchitectural and engineering, construction, furnishings and costs of
issuance.
Pima Countyheld a bond election in May 1997 that included funding to establish a new
northwest branch library. A facility to be built in Oro Valley has been approved by the County
with $2M fundingcoming from Pima County. Estimated costs to complete this project is
$4,144,000. The balance of the necessary funding will be provided by Oro Valley.
possible Town is also consideringthe purchase of state land from the Arizona State Land
Departmentpp in the amount of approximately $3,072,000. The State Land Department may hold
an auction in December, 1999.
Future roadway improvement projects include a townwide drainage basin study, bicycle lanes,
designfor La Canada Drive and traffic signal installations to be funded by the
landscaping
Highway
Fund and Townwide Development Impact Fees Fund. The Town may consider the
formation of an Oracle Road Improvement District. The improvement district will be for
roadway improvements along Oracle Road and will be assessed against commercial property
owners along a proposed district boundaries.
In June, 1999 the Oro Valley Water Utility took over the Oro Valley Water Improvement
District's share of the joint litan Domestic Water Improvement District.venture with the Metropolitan
In fiscalyear 1999/2000, capital improvements to this area includes replacing water mains, fire
p
hydrantsupgradesexisting
and to booster stations. Other water utility capital projects include
the construction of a replacement well, installation of water mains, telemetry equipment and
construction of four new reservoirs.
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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.
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, 1999, 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.
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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, 1999 and the amount of increases and decreases in relation to the prior year.
Increase/(Decrease)
1998/99 Percent From 1997/98 1997/98
Revenue Category Amounts Of Total Amount Percent Amounts
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Local taxes $ 4,518,732 27.0% $ 673,788 17.5% $ 3,844,944
Intergovernmental 6,780,403 40.4 517,881 8.3 6,262,522
Fines &
forfeiture 331,032 2.0 (64,442) (16.3) 395,474
Licenses &permits 1,411,820 8.4 328,928 30.4 1,082,892 1
Charges for services 239,945 1.4 (40,837) (14.5) 280,782
Contributions &
donations 2,001 .0 (35,277) (94.6) 37,278
Special assessments 2,472,834 14.8 416,850 20.3 2,055,984
Interest 960,231 5.7 315,542 48.9 644,689
Other income 50,902 .3 (11,951) (19.0) 62,853
Total $ 16,767,900
100.0% $ 2,100,482 14.3% $ 14,667,418
As shown in the schedule above revenues increased by $2,100,482 in fiscal year 1998/99 in
comparison to fiscal year 1997/98. Local taxes, intergovernmental revenues and licenses and
permits were the major revenue sources that accounted for the increase.
Local $673,788primarily taxesincreased by due to construction related sales tax collections
from v
residential buildingactivity. Revenue sources related to construction did much better than
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anticipated this fiscal year.
Intergovernmental revenues increased by $517,881. State and county shared revenues increased
Federal and state grants increased by $253,169, which included $220,000 from a
by $264,712.
federally funded COPS Universal grant.
Licensespermits and increased by $328,928 primarily due to residential building permit fees.
The presents followingschedule a summary of General Fund, Special Revenue Funds, Debt Service Funds and 99 Capital Projects Fund expenditures for the fiscal year ended June 30, 1999
and the increases and decreases in relation to prior year amounts.
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Increase/(Decrease)
1998/99 Percent From 1997/98 1997/98
Expenditure Category Amounts Of Total Amount Percent Amounts
Current
Generalg overnment $ 3,317,668 27.6% $ 437,100 15.2% $ 2,880,568
Public safety 5,240,616 43.6 989,385 23.3 4,251,231
Highways and streets 1,149,073 9.6 (58,364) (4.8) 1,207,437
Culture and recreation 636,302 5.3 (10,844) (1.7) 647,146
Capital outlay 878,843 7.3 40,900 4.9 837,943
Debt Service
Principal 400,000 3.3 (10,000) (2.4) 410,000
Interest and
fiscal charges 341,086 2.8 10,916 3.3 330,170
Bond issuance costs 52,126 .5 52,126 N/A -0-
Total Expenditures $ 12,015,714 100.0% $ 1,451,219 13.7% $ 10,564,495
Total expenditures increased by $1,451,219 or 13.7% primarily in the categories of general
government and public safety.
General government expenditures increased by $437,100. Expenditures increased due to
personnel, facility maintenance and general operations. Additional personnel were added in most
departments as a result of the Town's population growth.
The increase of $989,385 in public safety was mainly attributed to additional personnel for the
police department. Staff additions include eight police officers who were hired in conjunction
with the federally funded COPS Universal grant and a clerical position in the records division.
Federal seizure and forfeiture funds were used to purchase a mobile command specialty vehicle,
computer work stations and computer hardware/software.
Increases in capital outlay includes expenditures for preliminary architectural and landscaping
services in the amount of $159,881 for the construction of the CDO Riverfront Park and
$166,009 for the community development building. Additional funds of $312,785 in roadway
impact fees were expended while water impact fee expenditures decreased.
General Fund Balance The fund balance of the General Fund increased by $2,425,215 from
June 30, 1998. This increase was primarily due to increases in local taxes, intergovernmental
revenues and licenses and permits.
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Enterprise Operations
At June 30, 1g
999 retained earnings for the Oro Valley Water Utility was $1,011,862. Included
in retained earnings s is $432,860 which is the Town's portion of equity, capital assets and related
debt received upon the dissolution of the joint venture with Metropolitan Domestic Water
nt District (MDWID). The total contributed capital of $2,335,870 includes
Improveme
$1,534,245 from executed line extension agreements with area developers.
exceeded budget by $416,188. Net income at June 30, 1999 was a
Revenues of $5,219,301
negative $114,178. The utilitysettled a lawsuit for approximately $415,000 which was charged
to the fiscal year.
Debt
Administration At June 30, 1999, the Town had one improvement district bond, two
municipal property rp
i alcorporation bonds, and two certificates of participation issues outstanding.
The outstanding principal rinci al totaled $90,000 for the 1989 Naranja Road Improvement District
Serial
Bonds and $27,606,679 for the Municipal Property Corporation Bonds. The 1989
Certificates of Participation for the Town Hall facilities had outstanding principal of $170,000
and the 1996 Certificates of Participation for the land purchases had outstanding principal of
$4,805,000.
In June, 1999, the Town issued Municipal Property Corporation Bonds for future improvements
Oro ValleyWater Utilityand for construction of a community development building with
to the
outstanding principal of$3,186,183 and $1,695,000, respectively.
leases include, a police voice logger and a wheel loader with principal balances of
Capital
$17,044 and $31,677 respectively. The Town entered into another capital lease for the purchase
, .
backhoe to be shared between public works and the water utility. Outstanding principal is
ofa
$46,344.
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, 1999 is $514,815.
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 1997/98 was 5.794% and 5.339% for fiscal year 1998/99.
Investments held at LGIP earned interest revenue of$759,119 for the year ended June 30, 1999.
A debt
service reserve fund was established for the Municipal Property Corporation (MPC)
municipal system
i al water acquisition bonds. The MPC bonds issued this year were deposited in
the same funds. These monies, along with funds for future water improvement projects and the
construction of the development services building are maintained in a trust account with Norwest
These funds are invested solely in obligations that are issued or guaranteed by the U.S.
Bank.
Treasurye such as U.S. Treasury bills, bonds and notes ("U.S. Treasury Securities"). Interest on
investments held with the trustee earned$126,023 for fiscal year 1998/99.
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An account was opened with Norwest Bank for the acquisition and development of three parcels
of land purchased in FY 1996/97. Funds remaining in this account will be used for the
development of the CDO Riverfront Park. Funds held on deposit are invested 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 $28,258 for
fiscal year 1998/99.
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 $10,000,000 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, 1999 for the Town's 197 employees.
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 1999 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, 1998. In order to be awarded a Certificate of
Achievement, the Town published an easily readable and efficiently organized comprehensive
annual financial report. The report satisfied both generally accepted accounting principals and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
viii
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,
i
A „
Chuck Sweet
Town Manager
2,4241-
David L. Andrews
Finance Director
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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, 1998
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.
INCE 0444 C1/4;1 ....ch-a3 Ef...��i ���p v, �� �""0A g PresiAA.,dent
2 canrow�mn s
CNICAGD O`�
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Executive Director
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TOWN OF ORO VALLEY, ARIZONA
ORGANIZATIONAL CHART
H
,a Town Council
.
Boards &
Chuck Sweet George Dunscomb
Commissions Town Manager Town Magistrate
David Andrews H. Brent Sinclair
Finance Director Community
Development Director
4k.
Jeff Weir
Kevin Verville Ainsley Reeder
Economic i Information Systems , Parks & Recreation
Administrator Administrator
Development �``�
Administrator
Terry Vossler
Building Administrator
Kathi Cuvelier Bill Jansen
Town Clerk • Town Engineer
Bryant Nodine
Planning &Zoning
Administrator
1 Dan Dudley Werner Wolff
Town Attorney Police Chief
1 John Zukas
Transit Services
Administrator
X4,1 :.... . :. .. ._. .
: Jeff Grant David Hook
Human Resources Water Utility Director
Director
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TOWN OF ORO VALLEY,ARIZONA
List of Principal Officials
ELECTED OFFICIALS
Mayor Paul Loomis
Vice-Mayor Richard Johnson
Councilmember Wayne Bryant
Councilmember Francis LaSala
Councilmember Paul Parisi
DEPARTMENT HEADS
Town Manager Chuck Sweet
Finance Director David L. Andrews
Town Clerk Kathryn E. Cuvelier
Town Attorney Dan Dudley
Magistrate George Dunscomb
Human Resource Director Jeff Grant
Water Utility Director David Hook
Town Engineer Bill Jansen
Community Development Director H. Brent Sinclair
Chief of Police Werner S. Wolff
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Cil CRONSTROM
EII I &ATRBOVICH
C C O U NTA N T 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, 1999, 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, 1999,
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 20, 1999 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.
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.
1
8706 EAST MANZANITA DRIVE,SUITE 100 ■ SCOTTSDALE, ARIZONA 85258 • (602) 348-1102 • FAX 348-1104
A PROFESSIONAL CORPORATION
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.
0vt,44, ,i )
B C ,
Cronstrom & Trbovich, P.C.
September 20, 1999
2
General-Purpose Financial Statements
3
TOWN OF ORO VALLEY,ARIZONA
COMBINED BALANCE SHEET-ALL FUND TYPES AND ACCOUNT GROUPS
AS OF JUNE 30, 1999
Proprietary
Governmental Fund Types Fund Type
Special Debt Capital
General Revenue Service Projects Enterprise
Assets and Other Debits
Assets
Cash and investments $ 7,950,518 $ 3,168,885 $ 166,600 $ 7,946,004 $ 4,154,464
Cash on deposit with paying agent - - 393,362 1,877,229 2,183,445
Restricted assets - - - - 2,287,940
Accounts receivable 58,053 11,281 - 1,500 418,135
Taxes receivable 437,405 - - - -
Intergovernmental receivable 379,003 131,302 - - -
Interest receivable 29,888 10,688 125 31,837 22,276
Special assessments receivable - - 3,138 -
Due from other funds 454,454 - - - -
Prepaid items 1,101 - - -
Advances to other funds 514,815 - - - -
Deferred charges - - - - 931,061
Other assets - - - - 262,433
Fixed assets(net,where applicable,
of accumulated depreciation) - - - - 26,086,097
Other Debits _
Amount available in debt service fund - - - -
Amount to be provided for retirement
of general long-term debt - -
Total Assets And Other Debits $ 9 825.237 $ 3,322 156 $ 563,225 $ 9,856,570 $36 345 851
Liabilities,Equity and Other Credits
Liabilities
Accounts payable $ 262,663 $ 100,002 $ - $ 130,316 $ 518,666
Accrued wages and benefits 482,819 46,198 - - 20,286
Interest payable - - - - 750,018
Intergovernmental payable 16,894 - - - 767,550
Due to other funds - 149,111 196,320 109,023 -
Customer deposits - 630,106 - 4,632 109,379
Deferred revenue 198,856 3,036 3,138 - -
Compensated absences payable - - - - 16,186
Capital leases payable - - - - 23,172
Advances from other funds - - - 514,815
General obligation bonds payable - - - - 27,606,679
Revenue bonds payable - - - - 3,186,183
Certificates of participation - - - - -
Special assessment debt with - -
government commitment -
Total Liabilities 961,232 928,453 199,458 758,786 32,998,119
Equity and Other Credits - -
Investment in general fixed assets - - -
Contributed capital - - - - 2,335,870
Retained earnings
Unreserved - - - - 1,011,862
Fund balances
Reserved for preaid items 1,101 - - -
Reserved for advances 514,815 - - -
Unreserved,designated for
unemployment benefits 195,312 25,135 - -
Unreserved,undesignated 8,152,777 2,368,568 363,767 9,097,784
Total Equity and Other Credits 8,864,005 2,393,703 363,767 9,097,784 3,347,732
q y
Total Liabilities,Equity and Other Credits $ 9,825237 $ 3.322.156 $ 563.225 $ 6.57O $36 3,45,2851
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)
$ - $ - $23,386,471
4,454,036
2,287,940
488,969
437,405
510,305
94,814
3,138
454,454
1,101
514,815
931,061
262,433
15,196,636 - 41,282,733
363,767 363,767
6,468,126 6,468,126
$ 15 196 636 $ 6,831 893 $81 941 568
$ - $ - $ 1,011,647
549,303
750,018
784,444
454,454
_ - 744,117
205,030
16,186
71,893 95,065
- 514,815
1,695,000 29,301,679
3,186,183
4,975,000 4,975,000
90,000 90,000
6,831,893 42,677,941
15,196,636 - 15,196,636
2,335,870
_ - 1,011,862
1,101
514,815
220,447
19,982,896
15,196,636 - 39,263,627
$ 15,196,636 $ 6,831,893 $T81_941„568;
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, 1999
Totals
Special Debt Capital (Memorandum
General Revenue Service Projects Only)
Revenues
Taxes $ 4,518,732 $ - S - $ - $ 4,518,732
Intergovernmental 5,073,616 1,699,194 - 7,593 6,780,403
Fines and forfeitures 210,450 120,582 - - 331,032
Licenses and permits 1,396,431 15,389 - - 1,411,820
Charges for services 220,506 19,439 - - 239,945
Contributions and donations 2,001 - - - 2,001
Special assessments - - 34,099 2,438,735 2,472,834
Interest 402,475 157,348 8,208 392,200 960,231
Other 16,187 675 34,040 - 50,902
Total Revenues 11,840,398 2,012,627 76,347 2,838,528 16,767,900
Expenditures
Current
General government 3,131,693 185,975 - - 3,317,668
Public safety 5,048,148 192,468 - - 5,240,616
Highways and streets - 1,149,073 - - 1,149,073
Culture and recreation 636,302 - - - 636,302
Capital outlay - - - 878,843 878,843
Debt service
Principal retirement - - 400,000 - 400,000
Interest and fiscal charges - - 310,982 30,104 341,086
Bond issuance costs - - - 52,126 52,126
Total Expenditures 8,816,143 1,527,516 710,982 961,073 12,015,714
Excess of revenues over(under)expenditures 3,024,255 485,111 (634,635) 1,877,455 4,752,186
Other financing sources(uses)
Operating transfers in - - 599,040 505,876 1,104,916
Operating transfers out (599,040) - - (505,876) (1,104,916)
Proceeds from capital lease agreements - 34,781 - - 34,781
Proceeds from sale of bonds - - 172,279 1,518,070 1,690,349
Total other financing sources(uses) (599,040) 34,781 771,319 1,518,070 1,725,130
Excess of revenues and other sources
over(under)expenditures and other uses 2,425,215 519,892 136,684 3,395,525 6,477,316
Fund balance,beginning of year 6,438,790 1,873,811 227,083 5,702,259 14,241,943
Fund balance,end of year $ 8,864,005 $ 2,393,703 $ 363,767 $_9,097,784 $20,719,259
The accompanying notes to financial statements are an integral part of this statement.
7
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-
BUDGET AND ACTUAL-ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 1999
General Special Revenue
Variance Variance
Favorable Favorable
Budget Actual (Unfavorable) Budget Actual (Unfavorable)
Revenues
Taxes $ 3,723,000 $ 4,518,732 $ 795,732 $ - $ - $
Intergovernmental 4,766,346 5,073,616 307,270 2,007,000 1,699,194 (307,806)
Fines and forfeitures 233,000 210,450 (22,550) 50,000 15,860 (34,140)
Licenses andP ermits 1,001,000 1,396,431 395,431 17,000 15,389 (1,611)
Charges for services 208,950 220,506 11,556 21,000 19,439 (1,561)Contributions and donations 21,000 2,001 (18,999) - -
Special assessments -
Interest 240,000 402,475 162,475 28,000 106,706 78,706
Other 2,300 16,187 13,887 21,820 675 (21,145)
Total Revenues 10,195,596 11,840,398 1,644,802 2,144,820 _ 1,857,263 (287,557)
Expenditures
Current
GeneralS overnment 6,865,001 3,131,693 3,733,308 824,024 185,965 638,059
Public safety 5,233,850 5,048,148 185,702 224,634 22,520 202,114
Highways and streets - - - 3,055,991 1,149,073 1,906,918
Culture and recreation 632,654 636,302 (3,648) -
- -
Capital Outlay -
Debt service
Principal retirement - - - _
Interest and fiscal charges - -
Bond issuance costs - -
Total Expenditures 12,731,505 8,816,143 3,915,362 4,104,649 1,357,558 2,747,091
Excess of revenues over(under)expenditures (2,535,909) 3,024,255 5,560,164 (1,959,829) 499,705 2,459,534
Other financing sources(uses)
Operating transfers in - - - 285,000 - (285,000)
g
Operating transfers out (2,936,746) (599,040) 2,337,706 - -
Capital lease agreements 129,000 - (129,000) 45,000 34,781 (10,219)
Proceeds from sale of bonds - - -
Total other financing sources(uses) (2,807,746) (599,040) 2,208,706 330,000 34,781 (295,219)
Excess of revenues and other sources
over(under)expenditures and other uses (5,343,655) 2,425,215 7,768,870 (1,629,829) 534,486 2,164,315
Fund balance,beginning of year 5,343,655 6,438,790 1,095,135 1,629,829 1,632,827 2,998
Fund balance,end of year $ - $ 8.864,005 $ 8,864,005 $ - $ 2,167,313 $ 2,167,313
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)
$ - $ - $ - $ - $ - $ -
- - - 666,000 7,593 (658,407)
28,855 34,099 5,244 1,748,000 2,438,735 690,735
14,812 8,208 (6,604) 188,000 392,200 204,200
150 34,040 33,890 - - -
43,817 76,347 32,530 2,602,000 2,838,528 236,528
- - - 10,873,946 878,843 9,995,103
447,111 400,000 47,111 43,186 - 43,186
379,713 310,982 68,731 30,104 30,104 -
- - - - 52,126 52,126
826,824 710,982 115,842 10,947,236 961,073 9,986,163
(783,007) (634,635) 148,372 (8,345,236) 1,877,455 10,222,691
722,824 599,040 (123,784) 2,388,132 505,876 (1,882,256)
- - - (479,210) (505,876) (26,666)
- 172,279 172,279 915,030 1,518,070 603,040
722,824 771,319 48,495 2,823,952 1,518,070 (1,305,882)
(60,183) 136,684 196,867 (5,521,284) 3,395,525 8,916,809
60,183 227,083 166,900 5,521,284 5,702,259 180,975
5 - $ 363,767 $ 363,767 $ - $ 9,097 784 $ 9,097,784
The accompanying notes to financial statements are an integral part of this statement.
9
1
TOWN OF ORO VALLEY,ARIZONA
COMBINED STATEMENT OF REVENUES,EXPENSES AND CHANGES IN
RETAINED EARNINGS-ALL PROPRIETARY FUND TYPES
YEAR ENDED JUNE 30, 1999
Enterprise
Operating revenues
Charges for sales and services $ 4,925,501
Total operating revenues 4,925,501
Operating expenses
Costs of sales and services 2,620,007
Depreciation 1,186,978
Total operating expenses 3,8065985
Operating income 1,118,516
Nonoperating revenues(expenses)
Intergovernmental 1,500
Interest revenue 288,095
Interest expense (1,481,921)
Issuance costs (44,573)
Other 4,205
Total nonoperating revenues(expenses) (1,232,694)
Net income (114,178)
Retained earnings,beginning of year 1,126,040
Retained earnings,end of year $, 1,011,862
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, 1999
Enterprise
INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS
Cash flows from operating activities
Cash received from customers $ 5,05 8,196
Cash payments to employees for services (476,906)
Cash payments to suppliers for goods/services (1,813,570)
Nonoperating revenues 4,205
Customer deposits received 44,280
Net cash provided(used)by operating activities 2,816,205
Cash flows from non-capital financing activities
Intergovernmental revenue 1,500
Net cash provided(used)for non-capital financing activities 1,500
Cash flows from capital and related financing activities
Acquisition of capital assets (989,016)
Principal paid on capital leases (11,609)
Interest paid on capital leases (821)
Principal paid on general obligation bonds (325,000)
Interest paid on general obligation bonds (1,490,645)
Revenue bond proceeds 2,284,906
Net cash provided(used)for capital and related financing activities (532,185)
Cash flows from investing activities
Interest 288,524
Net cash provided by investing activities 288,524
Net increase(decrease)in cash and cash equivalents 2,574,044
Cash and cash equivalents at beginning of year 6,051,805
Cash and cash equivalents at end of year $ 8,625,849
RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET
Cash and investments per the balance sheet $ 4,154,464
Cash on deposit with paying agent 2,183,445
Restricted assets 2,287,940
Total S 8,625,849
(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, 1999
(Concluded)
Enterprise
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Operating income $ 1,118,516
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation 1,186,978
Nonoperating revenues 4,205
(Increase)decrease in operating assets
Accounts receivable 144,213
Prepaid expenses 90
Increase(decrease)in operating liabilities
Intergovernmental payable (11,518)
Accounts payable 314,843
Accrued payroll 7,223
Compensated absences payable 7,375
Customer deposits 44,280
Net cash provided(used)by operating activities $ 2,816,205
NON-CASH INVESTING,CAPITAL AND FINANCING ACTIVITIES
Bond issuance costs of$44,573 were amortized during the year.
Bond issuance costs of$65,594 were capitalized during the year.
The Town received$1,036,252 in fixed assets from the dissolution of the joint venture during the year.
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, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT A CCO UNTING 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
"moral obligation" for the repayment of the Municipal Property Corporation's
Municipal Facilities Revenue Bonds, Series 1996. The activity of the MPC is reported
in the applicable water enterprise 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, 1999
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
Fund Accounting - The accounts of the Town are organized on the basis of funds and
account groups,
each of which is considered a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-balancing accounts
that comprise its assets, liabilities, fund equity, revenues and expenditures, as
appropriate.ro riate. Government resources are allocated to and accounted for in individual
funds based purposes u on the for which they are to be spent and the means by which
p
spending activities are controlled. The various funds are grouped, in the financial
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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 thep ayment 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 theg overning body is that the costs (expenses, including depreciation) of
providing goods or services to the general public on a continuing basis be financed or
p g
recovered primarily through user charges; or (b) where the governing body has decided
thatp eriodic determination of revenues earned, expenses incurred, and/or net income is
appropriate ro riate for capital maintenance, public policy, management control, accountability,
p
or other purposes.
14
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
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, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
Proprietary Funds are accounted for using the accrual basis of accounting. The Town
p ry
applies all applicable FASB pronouncements issued on or before November 30, 1989,
pp pp
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 duringthe construction period net of interest on the investment of
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unexpended bond proceeds.
Budgetary Accounting - The Town Council follows these procedures in establishing
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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
g Y g
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
theytheear on the same modified accrual basis of accounting used to record actual
ear
revenues and expenditures (see Note 15 for individual funds with no adopted
budgets).
16
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Cont'd)
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.
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, 1999, were immaterial, they are not included
in the balance sheet.
17
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 1 -SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES(Cont'd)
Assets - Certain proceeds of the Town's bonds, as well as certain resources
Restricted
set aside for their repayment, are classified as restricted assets on the balance sheet
because their use is limited by applicable bond covenants.
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 onlyto the goverment. 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
p
equipment ui ment is recorded at historical cost. Donated fixed assets are valued at their
estimated fair market value on the date donated.
p
Property, lant and equipment acquired for proprietary funds is capitalized in the
respective funds to which it applies.
Assets in theg eneral 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
q
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
g
subject to change. Unreserved retained earnings for proprietary funds represent the net
assets available for future operation or distribution.
18
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Concl'd)
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.
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 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
Expenditures exceeded the adopted budget in the following funds:
Amount of
Fund Overexpenditure
General Fund:
Town Clerk $ 30,126
Magistrate Court 664
Building Safety 55,824
Parks and Recreation 3,648
Cash was available to meet the overexpenditure listed above.
19
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 3 - CASH AND INVESTMENTS
State statutes authorize the Town to invest in obligations of the U.S. Treasury and U.S.
agencies, certificates of deposit in eligible depositories, repurchase agreements,
obligations of the State of Arizona or any of its counties or incorporated cities, towns or
duly organized school districts, improvement districts in this state and the State
g
Treasurer's Local Government Investment Pool.
Cash and investments at June 30, 1999 consist of the following:
Cash on hand $ 2,650
Cash in bank 8,630,788
Cash with the County Treasurer 110,779
State Treasurer's Investment Pool 21,3 84,230
Total cash and investments 30,128,447
Cash on deposit with paying agent (4,454,036)
Restricted assets (2,287,940)
Total cash and investments on the
combined balance sheet $ 23,386,471
The Town's deposits as of June 30, 1999 were entirely insured or collateralized with
securities held by the Town's custodial bank in the Town's name.
The Town's investments at June 30, 1999 consisted of shares in the State Treasurer's
investmentp ool. The shares are not identified with specific investments and are not
subject to custodial credit risk. Cash on Deposit with the County Treasurer is pooled
and invested. Interest earned from investments purchased with such pooled monies is
allocated to each of the funds based on the average monthly balance.
NOTE 4 - RESTRICTED ASSETS
Restricted assets in the Enterprise Fund at June 30, 1999 consisted of the following:
Enterprise Fund
Future debt service $ 2,287,940
20
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE S - CHANGES IN GENERAL FIXED ASSETS
A summary of the changes in general fixed assets follows.
Balance Balance
July 1, 1998 Additions Deletions June 30, 1999
Land and improvements $ 6,811,338 $ 6,488 $ -0- $ 6,817,826
Buildings and improvements 4,446,156 17,168 -0- 4,463,324
Furniture and equipment 1,701,475 230,316 (44,663) 1,887,128
Vehicles 1,404,600 332,288 (14,950) 1,721,938
Construction in Progress -0- 306,420 -0- 306,420
Total $ 14,363,569 $ 892,680 $ (59,613) $ 15,196,636
Estimated cost to complete construction in progress at June 30, 1999 was $3,800,000.
NOTE 6-PROPRIETARY FUND FIXED ASSETS
The following is a summary of proprietary fund fixed assets at June 30, 1999:
Land $ 51,691
Water system 27,700,484
Equipment and vehicles 537,102
Water rights 762,361
Construction in progress 623,955
Less: accumulated depreciation (3,589,496)
Net fixed assets $ 26,086,097
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
21
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 7- OBLIGATIONS UNDER CAPITAL LEASES
The Town has acquired a wheel loader, a backhoe, and a police tape logger under the
provisions of long-term lease agreements classified as capital leases. Accordingly, the
principal al amount of the assets, totaling $160,361 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
leaseym a ents under the capital leases, together with the present value of the net
p
minimum lease payments as of June 30, 1999, were as follows.
General
Long-term Debt Enterprise
Year ending June 30,
2000 $ 57,585 $ 12,430
2001 18,491 12,430
Net minimum lease payments 76,076 24,860
interest amount representing interest (4,183) (1,688)
Present value of net minimum
capital lease payments $ 71,893 $ 23,172
A summary of the changes in capital lease obligations follows.
General Balance Balance
Long-term Debt July 1, 1998 Increase Reduction June 30, 1999
Furniture and equipment $ 89,146 $ 34,781 $ (52,034) $ 71,893
Balance Balance
Enterprise Fund July 1, 1998 Increase Reduction June 30, 1999
Equipment $ -0- S 34,781 $ (11,609) S 23,172
22
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 8 - GENERAL OBLIGATION BONDS PAYABLE
Bonds payable at June 30, 1999 consisted of the outstanding general obligation bonds
presented below. The bonds are generally callable with interest payable semiannually.
Principal and interest requirements at June 30, 1999, were as follows.
Enterprise Funds
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates(%) Maturity July 1, 1998 (Retirements) June 30, 1999
Municipal Property
Corporation, Water
System Acquisition,
1996 3.7-5.6 7/1/98-26 $ 28,300,000 $ (325,000) $ 27,975,000
Less: unamortized discount (368,321)
Total long-term bonds payable $ 27,606,679
General obligation bond debt service requirements to maturity, including $26,748,265
of interest, are as follows:
Year ending June 30:
2000 $ 1,816,750
2001 1,826,875
2002 1,935,562
2003 1,938,313
2004 1,939,163
Thereafter 44,898,281
$ 54,3 54,944
23
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 9 -REVENUE BONDS PAYABLE
Revenue Bonds payable at June 30, 1999 consisted of the outstanding revenue bonds
presented below. The bonds are generally callable with interest payable
semiannually. Principal and interest requirements at June 30, 1999 were as follows.
General Long-term Debt
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 1998 Issues Retirements June 30, 1999
Excise Tax Revenue
Bonds, Series 1999
3.5-4.5% 1/1/00-09 S -0- $ 1,695,000 $ -0- $ 1,695,000
Enterprise Funds
Outstanding Outstanding
Interest Principal Principal
Description Rates(%) Maturity July 1, 1998 Issues Retirements June 30, 1999
Excise Tax Revenue
Bonds, Series 1999
3.5-5% 1/1/00-19 $ -0- $ 3,235,000 $ -0- $ 3,235,000
Less: unamortized discount (48,817)
Total long-term bonds payable $ 3,186,183
24
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 9 -REVENUE BONDS PAYABLE (Concl'd)
Revenue bond debt service requirements to maturity, including $410,441 and
$1,793,692 of general long-term debt and enterprise fund interest, respectively, are as
follows:
General
Long-term Debt Enterprise
Year ending June 30:
2000 $ 214,186 $ 234,752
2001 208,415 263,808
2002 207,920 269,130
2003 212,045 269,285
2004 210,745 263,685
Thereafter 1,052,130 3,679,215
$ 2,105,441 $ 4,979,875
NOTE 10- SPECIAL ASSESSMENT DEBT WITH GOVERNMENT COMMITMENT
Special assessment debt with government commitment at June 30, 1999 consisted of
the outstanding bonds presented below. The bonds are generally noncallable with
interest payable semiannually. According to Arizona Revised Statute §48-5 57, if there
is a deficiency in the funds collected from special assessments, the general fund will
furnish an amount sufficient to meet the obligation of the bonds payable and reimburse
itself when funds are subsequently received. Principal and interest requirements at
June 30, 1999, were as follows.
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates(%) Maturity July 1, 1998 (Retirements) June 30, 1999
Naranja Road Improvement
District 7.25% 1/1/98-2000 $ 180,000 $ (90,000) $ 90,000
Special assessment debt service requirements to maturity, including $6,525 of interest,
are as follows:
Year ending June 30:
2000 $ 96,525
25
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 11 - CERTIFICATES OF PARTICIPATION
Certificates of Participation payable at June 30, 1999 consisted of the amounts
presented below. They are generally callable with interest payable semiannually.
Principal and interest requirements at June 30, 1999,were as follows.
Outstanding Outstanding
Interest Principal Issues/ Principal
Description Rates(%) Maturity July 1, 1998 (Retirements) June 30, 1999
Certificates of Participation,
Series 1989 6.2-9.2% 6/1/98-2000 $ 330,000 $ (160,000) $ 170,000
Certificates of Participation,
Series 1996 3.9-5.75% 7/1/98-2017 4,955,000 (150,000) 4,805,000
$ 5,285,000 $ (310,000) $ 4,975,000
Debt service requirements to maturity, including $3,044,863 of interest, are as follows:
Year ending June 30:
2000 $ 591,756
2001 408,322
2002 405,938
2003 407,994
2004 409,350
Thereafter 5,796,503
$ 8,019,863
26
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 12 -INTERFUND RECEIVABLES AND PAYABLES
As of June 30, 1999, interfund receivables and payables that resulted from various
interfund transactions were as follows:
Due from Due to
Other Funds Other Funds
General Fund $ 454,454 $ -0-
Special Revenue Funds:
HURF -0- 139,242
Public Transportation -0- 9,869
Debt Service Funds:
Naranja Road -0- 1,348
Municipal Debt Service -0- 194,972
Capital Projects Funds
CDO Riverfront -0- 12,390
Municipal Facilities -0- 96,633
$ 454,454 $ 454,454
As of June 30, 1999, 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- $ 514,815
Capital Projects Funds:
Connection Fee Fund 514,815 -0-
$ 514,815 $ 514,815
NOTE 13 - CONTRIBUTED CAPITAL
During the year, contributed capital changed by the following amounts:
Enterprise
Fund
Contributed capital July 1, 1998 $ 2,108,875
Current year increases:
Developer Contributions 226,995
Contributed capital June 30, 1999 $ 2,335,870
27
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 14 -PRIOR PERIOD ADJUSTMENT
During the
fiscal year 1998-99, the Town dissolved the joint venture entered into with
Metropolitan Domestic Water Improvement District (MDWID) in October of 1992.
o
With the dissolution of the joint venture, the Town took control of 6.758% of the
assets and liabilities. The percentage is equal to the Town's equity in the venture. As
a result of the dissolution a change in the Town's beginning retained earnings was
directly affected and will be restated as follows:
Beginning retained earnings
(as previously stated) $ 693,180
Adjustment 432,860
Beginning retained earnings
(as adjusted) $ 1,126,040
NOTE 15 -BUDGETARY BASIS OF A CCO UNTING
Budgets for the Industrial Development Authority, the Revegetation Assurances and
the Justice Seizures and Forfeitures Special Revenue Funds were not prepared. The
followingsummaries 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:
Other Fund Balance
Total Total Financing at Beginning
Revenues Expenditures Sources of Year
Combined Statement of
Revenues, Expenditures
and Changes in Fund
Balances $ 2,012,627 $ 1,527,516 $ 34,781 $ 1,873,811
Less: funds with no
adopted budget (155,364) (169,958) -0- (240,984)
p g
Combined Statement of
Revenues, Expenditures
and Changes in Fund
Balances - Budget and
Actual $ 1,857,263 $ 1,357,558 $ 34,781 $ 1,632,827
28
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 16- 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, 1999, totaled
$739,746.
NOTE 17- YEAR 2000 ISSUE
The year 2000 issue is the result of shortcomings in many electronic data processing
systems and other electronic equipment that could have adversely affected the Town's
operations as early as fiscal year 1998-99.
The Town has completed an inventory of computer systems and other electronic
equipment that may be affected by the year 2000 issue and that are necessary to
conducting Town operations and has determined that no significant remediation
efforts were required at June 30, 1999.
Because of the unprecedented nature of the Year 2000 issue, its effects and the
success of related remediation efforts will not be fully determinable until the year
2000 and thereafter. Management cannot assure that the Town is or will be year 2000
ready, that the Town's remediation efforts will be successful in whole or in part, or
that parties with whom the Town does business will be year 2000 ready.
NOTE 18 -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.
29
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 18-RISK MANAGEMENT(Concl'd)
The Town is insured by Arizona Municipal Workers Compensation Pool for potential
worker related accidents. The Town is self-insured for unemployment insurance.
Changes in the balances of claims liabilities during the past two years are as follows:
Year Ended June 30,
1999 1998
Unpaid claims, beginning of year $ -0- $ -0-
Incurred claims (including IBNRs) 6,240 6,069
Claimp ayments (6,240) (6,069)
Unpaid claims, end of year $ -0- $ -0-
NOTE 19-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, 1999 was $3,073,180. The Town's total payroll was $5,872,088.
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 ap articipant will receive depend solely on the amount contributed to the
participant's ant'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
pensionplan lan 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 1998-99 the required and
actual contributions amounted to $215,121. The employees' contributions totaled
$153,659.
No
ension provision changes occurred during the year that affected the required
p
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 1998-99 or as of the close of the fiscal year.
30
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 20 -RETIREMENT AND PENSION PLANS
Public Safety Personnel Retirement System (PSPRS)
Plan Description - The Town contributes to the Public Safety Personnel Retirement
System (PSPRS), an agent multiple-employer, public employee retirement system
that acts as a common investment and administrative agent to provide retirement and
death and disability benefits for public safety personnel who are regularly assigned
hazardous duty in the employ of the State of Arizona or a political subdivision
thereof. All benefit provisions and other requirements are established by State statute.
The Public Safety Personnel Retirement System issues a publicly available financial
report that includes financial statements and required supplementary information for
PSPRS. That report may be obtained by writing to Public Safety Personnel, 1020 E.
Missouri Ave., Phoenix, AZ 85014 or by calling (602) 255-5575.
Funding Policy - Covered employees are required to contribute 7.65 percent of their
annual salary to the PSPRS. The Town is required to contribute the remaining
amounts necessary to fund the PSPRS, as determined by the actuarial basis specified
by statute. The current rate is 7.71% of annual covered payroll.
Annual Pension Cost - During the year ended June 30, 1998 (the date of the last
available information), the Town's annual pension cost of $163,685 for police was
equal to the Town's required and actual contributions.
The required contribution was determined as part of the June 30, 1998 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, 1998, was 20 years.
The preceding methods comply with the financial reporting standards established by
the Governmental Accounting Standards Board.
31
TOWN OF ORO VALLEY, ARIZONA
NOTES TO FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 1999
NOTE 20-RETIREMENT AND PENSION PLANS(Concl'd)
Three-Year Trend Information
Police
Fiscal Annual
Year Ended Pension Percent Net Pension
June 30, Cost (APC) Contributed Obligation
1996 $ 109,223 100% $ -0-
1997 165,163 100 -0-
1998 163,685 100 -0-
Additional historical trend information for the Town's PSPRS is disclosed on page 34.
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.
NOTE 21 - CONTINGENT LIABILITIES
The Town is a defendant in various lawsuits. Although the outcome of these lawsuits
is not presentlydeterminable, it is the opinion of the Town's Counsel that resolution
of these matters will not have a material adverse effect on the financial condition of
the Town.
32
REQUIRED SUPPLEMENTARY INFORMATION
33
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
1997 $ 2,239,319 $ 2,614,221 $ 374,902 85.7% $ 1,682,582 22.3%
1998 2,772,586 3,067,826 295,246 90.4 1,890,076 15.6
34
Combining, Individual Fund and Account Group
Statements and Schedules
35
THIS PAGE BLANK
36
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.
37
TOWN OF ORO VALLEY,ARIZONA
GENERAL FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Taxes $ 3,723,000 $ 4,518,732 $ 795,732
Intergovernmental 4,766,346 5,073,616 307,270
g
Fines and forfeitures 233,000 210,450 (22,550)
Licenses and permits 1,001,000 1,396,431 395,431
Charges for services 208,950 220,506 11,556
g
Contributions and donations 21,000 2,001 (18,999)
Interest 240,000 402,475 162,475
Other 2,300 16,187 13,887
Total Revenues 10,195,596 11,840,398 1,644,802
Expenditures
Current
General government
Town Council 68,197 62,360 5,837
Town Clerk 217,995 248,121 (30,126)
Magistrate Court 363,499 364,163 (664)
Town Manager 351,895 344,701 7,194
Finance 300,964 276,741 24,223
Legal 355,652 246,578 109,074
Planning and Zoning 891,524 674,523 217,001
General Administration 3,619,557 386,305 3,233,252
Custodial Facility Maintenance 189,050 96,761 92,289
Economic Development 305,215 248,436 56,779
Community Development Administration 201,453 183,004 18,449
Total General government 6,865,001 3,13 1,693 3,733,308
Public safety
Police 4,818,149 4,576,623 241,526
Building safety 415,701 471,525 (55,824)
Total Public safety 5,233,850 5,048,148 185,702
Culture and recreation
Parks and Recreation 632,654 636,302 (3,648)
Total Culture and recreation 632,654 636,302 (3,648)
Total Expenditures 12,731,505 8,816,143 3,915,362
Excess of revenues over(under)expenditures (2,535,909) 3,024,255 5,560,164
Other financing sources(uses)
Operating transfers out (2,936,746) (599,040) 2,337,706
Proceeds from capital lease agreements 129,000 - (129,000)
Total other financing sources(uses) (2,807,746) (599,040) 2,208,706
Excess of revenues and other sources
over(under)expenditures and other uses (5,343,655) 2,425,215 7,768,870
Fund balance,beginning of year 5,343,655 6,438,790 1,095,135
Fund balance,end of year $ - $ 8,864,005 $ 8,864,005
38
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.
Justice 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.
39
TOWN OF ORO VALLEY,ARIZONA
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
AS OF JUNE 30, 1999
Industrial State Justice
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Assets
Cash and investments $ 2,109,580 S 206 $ 772,986 $ 81,115 5 84,285 $ 120,713 $ 3,168,885
Accounts receivable - - - 42 12 11,227 11,281
Intergovernmental receivable 131,302 - - - - - 131,302
,
Interest receivable 7,522 - 2,742 - -
424 10 688
Total Assets $ 2,248,404 5 206 5 775,728 $ 81,157 $ 84,297 $ 132,364 $ 3,322,156
Liabilities and Fund Balance
Liabilities
Accountsp y a able $ 85,743 - 6,671 46,198$ - $ - $ 1,028 $ 3,735 $ 9,496 $ 100,002
Accrued wages and benefits 39,527 - -
Due to other funds 139,242 - - - - 9,869 149,111
Customer deposits - - 630,106 - - - 630,106
p3,036 - - 3,036
Deferred revenue - -
Total Liabilities 264,512 - 630,106 _ 4,064 3,735 26,036 928,453
Fund balances
Unreserved,designated
for unemployment 23,056 - - - - 2,079 25,135
06
Unreserved,undesignated 1,960,836 �` 145,622 77 093 80,562 104,249 2,368,568
�-'
Total Fund Balance 1,983,892 206 145,622? 77,093 8 ,0 562 1 U6 328 2 393 703
Total Liabilities and Fund Balance S. 2,248„404 S $ 81,157 S 84,297 $ 132,364 53322,i56
� X06 $ 775 728
40
TOWN OF ORO VALLEY,ARIZONA
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 1999
Industrial State Justice
Development Revegetation Seizures and Seizures and Public
HURF Authority Assurances Forfeitures Forfeitures Transportation Totals
Revenues
Intergovernmental $ 1,521,025 S - S - $ - S - 5 178,169 $ 1,699,194
Fines and forfeitures - - - 15,860 104,722 - 120,582
Licenses and permits 15,389 - - - - - 15,389
Charges for services 4,585 - - - - 14,854 19,439
Interest 94,422 12 41,513 5,961 9,117 6,323 157,348
Other 675 - - - - - 675
Total Revenues 1,636,096 12 41,513 21,821 113,839 199,346 2,012,627
Expenditures
Current
General government - 10 - 1,657 - 184,308 185,975
Public safety - - - 22,520 169,948 - 192,468
Highways and streets 1,149,073 - - - - - 1,149,073
Total Expenditures 1,149,073 10 - 24,177 169,948 184,308 1,527,516
Excess of revenues over(under)
expenditures 487,023 2 41,513 (2,356) (56,109) 15,038 485,111
Other financing sources(uses)
Proceeds from capital lease
agreements 34,781 - - - - - 34,781
Total other financing
sources(uses) 34,781 - - - - - 34,781
Excess of revenues and other sources
over(under)expenditures and
other uses 521,804 2 41,513 (2,356) (56,109) 15,038 519,892
Fund balance,beginning of year 1,462,088 204 104,109 79,449 136,671 91,290 1,873,811
Fund balance,end of year $ 1,983,892 S 206 S 145,622 $ 77,093 $ 80,562 $ 106,328 $ 2,393,703
41
TOWN OF ORO VALLEY,ARIZONA
HURF FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 1,577,000 $ 1,521,025 $ (55,975)
Licenses and permits 17,000 15,389 (1,611)
Charges for services 10,500 4,585 (5,915)
Interest 25,000 94,422 69,422
Other 5,000 675 (4,325)
Total Revenues _1,634,500 1,636,096 1,596
Expenditures
Current
Highways and streets 3,055,991 1,149,073 1,906,918
Total Expenditures 3,055,991 1,149,073 1,906,918
Excess of revenues over(under)expenditures (1,421,491) 487,023 1,908,514
Other financing sources(uses)
Capital lease agreements 45,000 34,781 (10,219)
Total other financing sources(uses) 45,000 _ 34,781 (10,219)
Excess of revenues and other sources
over(under)expenditures and other uses (1,376,491) 521,804 1,898,295
Fund balance,beginning of year 1,376,491 1,462,088 85,597
Fund balance,end of year $ - $ 1_,983,892 $ 1,983,892
42
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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Fines and forfeitures $ 50,000 $ 15,860 $ (34,140)
Interest - 5,961 5,961
Total Revenues 50,000 21,821 (28,179)
Expenditures
Current
General government 6,073 1,657 4,416
Public safety 224,634 22,520 202,114
Total Expenditures 230,707 24,177 206,530
Excess of revenues over(under)expenditures (180,707) (2,356) 178,351
Fund balance,beginning of year 180,707 79,449 (101,258)
Fund balance,end of year $ - $ 77,093 $ 77 093
43
TOWN OF ORO VALLEY,ARIZONA
PUBLIC TRANSPORTATION FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 145,000 $ 178,169 $ 33,169
g
Charges for services 10,500 14,854 4,354
Interest 3,000 6,323 3,323
Other _ 16,820 - (16,820)
Total Revenues
175,320 199,346 24,0..6
Expenditures
Current
Generalovernment 247,951 184,308 63,643
g
Total Expenditures 247,951 184,308 63,643
-
Excess of revenues over(under)expenditures (72,631) 15,038 87,669
Fund balance,beginning of year 72,631 91,290 _ 18,659
Fund balance,end of year $ - $ 106 328 $ 106,328
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, 1999
Municipal
Naranja Road Debt Service Totals
Assets
Cash on deposit with paying agent $ 165,059 $ 228,303 $ 393,362
Restricted assets - 166,600 166,600
Interest receivable - 125 125
Special assessments receivable 3,138 - 3,138
Total Assets $ 168,197 $ 395,028 $ 563,225
Liabilities and Fund Balance
Liabilities
Due to other funds $ 1,348 $ 194,972 $ 196,320
Deferred revenue _ 3 138 - 3 138
Total Liabilities
4,486 194,972 199,458
Fund balances
Unreserved,undesignated 163,711 200,056 363,767
Total Fund Balance 163711 200,056 363,767
Total Liabilities and Fund Balance $ 168,197 $ 395,028 $ 563,225
46
TOWN OF ORO VALLEY,ARIZONA
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 1999
Municipal
Naranja Road Debt Service Totals
Revenues
Special assessments $ 34,099 $ - $ 34,099
Interest 6,846 1,362 8,208
Other 40 34,000 34,040
Total Revenues _ 40,985 35,362 76,347
Expenditures
Debt service
Principal retirement 90,000 310,000 400,000
Interest and fiscal charges 13,995 296,987 310,982
Total Expenditures 103,995 606,987 710,982
Excess of revenues over(under)expenditures (63,010) (571,625) (634,635)
Other financing sources(uses)
Operating transfers in - 599,040 599,040
Proceeds from sale of bonds - 172,279 172,279
Total other financing sources(uses) - 771,319 771,319
Excess of revenues and other sources
over(under)expenditures and other uses (63,010) 199,694 136,684
Fund balance,beginning of year 226,721 362 227,083
Fund balance,end of year S 163,711 $ 200,056 $ 363,767
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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 28,855 $ 34,099 $ 5,244
P
Interest 14,812 6,846 (7,966)
Other 150 40 110)
Total Revenues 43,817 40,985 (2,832)
Expenditures
Debt service
Principal retirement 90,000 90,000 -
Interest and fiscal charges 14,000 13,995 5
Total Expenditures 104,000 103,995 5
Excess of revenues over(under)expenditures (60,183) (63,010) (2,827)
Fund balance,beginning of year 60,183 226,721 166,538
Fund balance,end of year $ - $a 163,711 $ 163,711
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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Interest $ - $ 1,362 $ 1,362
Other - 34,000 34,000
Total Revenues - 35,362 35,362
Expenditures
Debt service
Principal retirement 357,111 310,000 47,111
Interest and fiscal charges _ 365,713 296,987 68,726
Total Expenditures
722,824 606,987 115,837
Excess of revenues over(under)expenditures (722,824) (571,625) 151,199
Other financing sources(uses)
Operating transfers in 722,824 599,040 (123,784)
Proceeds from sale of bonds - 172,279 172,279
Total other financing sources(uses) 722,824 771,319 48,495
Excess of revenues and other sources
over(under)expenditures and other uses - 199,694 199,694
Fund balance,beginning of year - 362 362
Fund balance,end of year $ - $ 100 056 $� 200,056
49
THIS PAGE BLANK
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.
Land Acquisition and Parks Development - accounts for the collection and land acquisition and
park development costs of the Land Acquisition and Parks Development Fund.
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.
Townwide Roadway Impact Fees - accounts for the collection and capital expenditures of the
Townwide Roadway Development Impact Fees.
51
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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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues $ (166 000
)
Intergovernmental $ 166,000 $ -
g - 28,258 _ 28,258
Interest —
Total Revenues 166,000 28,258 (137342)
Expenditures
Capital outlay2,554,132 159,881 2,394,251
p
Total Expenditures 2,554,132 159,881 _2,394,251
Excess of revenues over(under)expenditures (2,388,132) (131,623) 2,256,509
Other financing sources(uses)
Operating transfers in 2,388 132 505,876 (L882,256)
_ , , ,
Total other financing sources(uses) 2 388 132 505 876 (1,882,256)
Excess of revenues and other sources - 374,253 374,253
over(under)expenditures and other uses
Fund balance,beginning of year - - -
374 253 $ 374 253
Fund balance,end of year $ - $
54
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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Interest $ - $ 1,339 S 1,339
Total Revenues - 1,339 1,339
Expenditures
Capital outlay 915,030 113,883 801,147
Debt service
Bond issuance costs - 52,126 (52,126)
Total Expenditures 915,030 166,009 749,021
Excess of revenues over(under)expenditures (915,030) (164,670) 750,360
Other financing sources(uses)
Proceeds from sale of bonds 915,030 1,518,070 603,040
Total other financing sources(uses) 915,030 1,518,070 603,040
Excess of revenues and other sources
over(under)expenditures and other uses - 1,353,400 1,353,400
Fund balance,beginning of year - - -
Fund balance,end of year $ - 1 353
$ 1,353,400 $ , ,
` 400
55
TOWN OF ORO VALLEY,ARIZONA
LAND ACQUISITION AND DEVELOPMENT FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Other financing sources(uses)
Operating transfers out $ (479,210) $ (505,876) $ (26,666)Total other financing sources(uses) (479,210) (505,876) (26,666)
Fund balance,beginning of year 479,210 505,876 26,666
Fund balance,end of year S - - $ -
56
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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Special assessments $ 234,000 $ 354,690 $ 120,690
Interest 10,000 33,963 23,963
Total Revenues 244,000 388,653 144,653
Expenditures
Capital outlay 655,377 61,994 593,383
Total Expenditures 655,377 61,994 593,383
Excess of revenues over(under)expenditures (411,377) 326,659 738,036
Fund balance,beginning of year 411,377 480,680 69,303
Fund balance,end of year $ - $ 807339 $ 807.339
57
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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
for services S 349,000 S 523,188 S 174,188
Charges - 42,183_ 42,183
Interest
Total Revenues 349,000 565,371 216,371
Expenditures
Capital outlay598,943 230,300 368,643
Debt service 43,186
Principal retirement 43,186 -
Interest and fiscal charges 30,104 30,104 -
Total Expenditures 672,233 260,404 _ 411,829
Excess of revenues over(under)expenditures (323,233) 304,967 628,200
Fundbeginning balance,be innin of year 323,233 124,465 (198,768)Fund balance,end of year S - -- S 429,432 $ 429,432
58
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, 1999
Variance
Favorable
Budget Actual (Unfavorable)
Revenues
Intergovernmental $ 500,000 $ 7,593 $ (492,407)
Special assessments 1,165,000 1,560,857 395,857
Interest 178,000 286,457 108,457
Total Revenues 1,843,000 1,854,907 11,907
Expenditures
Capital outlay 6,150,464 312,785 5,837,679
Total Expenditures 6,150,464 312,785 5,837,679
Excess of revenues over(under)expenditures (4,307,464) 1,542,122 5,849,586
Fund balance,beginning of year 4,307,464 4,591,238 283,774
Fund balance,end of year $ - $ 6,133,360 $ 6,133,360
59
THIS PAGE BLANK
60
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.
61
TOWN OF ORO VALLEY,ARIZONA
COMPARATIVE SCHEDULES OF GENERAL FIXED ASSETS
BY SOURCE
JUNE 30, 1999 AND 1998
1999 1998
GENERAL FIXED ASSETS
Land and improvements $ 6,817,826 $ 6,811,338
Buildings and improvements 4,463,324 4,446,156
Furniture and equipment 1,887,128 1,701,475
Vehicles 1,721,938 1,404,600
Construction in progress 306 420 -
Total $ 15,196,636 $ 14,363,569
INVESTMENT IN GENERAL FIXED
ASSETS BY SOURCE
General Fund $ 6,125,162 $ 5,796,090
Special Revenue Funds 984,313 786,738
Capital Projects Funds 6,281,320 5,974,900
Donated Assets 1,805,841 1,805,841
Total $ 15,196,636 $14,363,569
62
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
AS OF JUNE 30, 1999
Buildings Furniture Construction
Land and and and in
Improvements Improvements Equipment Vehicles Progress Total
FUNCTION AND ACTIVITY
General government $ 6,067,826 $ 2,031,422 $ 691,665 $ 171,356 $ 146,539 $ 9,108,808
Public safety - 1,151,579 614,697 1,129,943 - 2,896,219
Public works - 54,302 355,956 397,267 - 807,525
Culture and recreation 750,000 1,226,021 224,810 23,372 159,881 2,384,084
Total $ 6,817,826 $ 4,463,324 $ 1,887,128 $ 1,721,938 $ 306,420 $ 15,196,636
63
TOWN OF ORO VALLEY,ARIZONA
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
FOR THE YEAR ENDED JUNE 30, 1999
General Fixed General Fixed
Assets Assets
July 1, 1998 Additions Deletions Adjustments June 30, 1999
FUNCTION AND ACTIVITY
Land and improvements
General government S 6,061,338 5 6,488 5 - $ - $ 6,067,826
Culture and recreation 750,000 - - - 750,000
Total Land and Improvements 6,811,338 6,488 - - 6,817,826
Buildings and improvements
General Government 2,023,675 7,747 - - 2,031,422
Public safety 1,147,894 3,685 - - 1,151,579
Public works 51,384 2,918 - - 54,302
Culture and recreation 1,223,203 2,818 - - 1,226,021
Total Buildings and Improvements 4,446,156 17,168 - - 4,463,324
Furniture and Equipment
General Govenment 597,031 95,253 (5,169) 4,550 691,665
Public safety 557,384 83,313 (26,000) - 614,697
Public works 331,633 39,373 (10,500) (4,550) 355,956
Culture and recreation 215 42712,377 (2,994) - 224,810
, , ,
Total Furniture and Equipment 1,701,475 =316 (44,663) - 1 887 128
Vehicles
General Govenment 145,814 25,542 - - 171,356
Public safety 864,571 280,322 (14,950) - 1,129,943
Public works 376,831 26,424 - (5,988) 397,267
Culture and recreation 17.384 - - 5'988 23'372
Total Vehicles _ 1,404,600 332,288 (14,950) - _ 1,721,938
Construction in Progress
General Government - 146,539 - - 146,539
Culture and Recreation - 159,881 - - 159,881
Total Construction in Progress - 306,420 - - 306,420
TOTAL GENERAL FIXED ASSETS $ 14:13569 $ 892 6 80 $ (59,6 13) - $ 15,196,636
, ,
64
STATISTICAL SECTION
65
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
' $298,260 $1,409,199 $5,517,991
1990 $2,345,630 $ 285,123 $ 515,424 $ 664,355 $ - . $ - $ -
1991 2,745,202
161,558 566,637 769,966 - - - 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
1
1993 2,133,813
1,689,032 467,377 r, 972,054 107,647 - 240,218 255,279 18,417 5,883,837
1994 2,903,973 1,852,882 267,093 093 1,338,826 182,122 125 119,608 265,466 7,428 6,937,523
4 2,455,266 407,933 1,275,265 224,759 , 800 196,663 384,742 74,723 , 8,479,
1995 3,459,75
905
32 3,230,509 263,386 990,713 200,525 7,681 399,511 450,712 , 90,276 9,425,94
1996 3,792,6 ,
5
1997 3,865,9
96 5,380,979 280,644 941,888 198,948 28,052 804,907 498,158+ 48,036 12,047,608
44 6,262,522 395,474 1,082,892 280,782 37,278 2,055,984 644,689 62,853 _ 14,667,418
1998 3,844,9 .
1999 4,518,732 6,780,403 331,032 1,411,820 239,945 2,001 2,472,834 960,231 50,902 16,767,900
Source: Oro Valley Finance Department
66
Town of Oro Valley, Arizona
General Government Expenditures By Function
Last Ten Fiscal Years
(Unaudited)
Fiscal Highways Culture
Year General Public and and Capital Debt
Ended Government Safety Streets Recreation Outlay Service Total
1990 $1,304,456 $1,436,709 $ 357,483 $ - $1,801,201 $ 188,941 $ 5,088,790
1991 I, 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 1 - 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 i 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
3 317 668 5 240 616 1 149 073 636,302 ' 878,843 793,212
1999 12,015,714
Source: Oro Valley Finance Department
67
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%
Trans ortaton - Persons and Frei 5.000% 20.00%
p �
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%
p ,
Retail (excluding food sales) 5.000% 40.00%
Hotel/Motel 5.500% 50.00%
Membership Camping ing 5.000% 40.00%
p
Timbering - Severance (a) 80.00%
(a) The amount of severance tax levied on a severer engaged in the business of timbering
shall be:
(1) Two dollars thirteen cents per thousand board feet for timber products
that are derived from ponderosa pine.
(2) One dollar fifty-one cents per thousand board feet for timber products
derived from all species except ponderosa pine.
Source: Arizona Department of Revenue
68
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
69
Town of Oro Valley,Arizona
Historical and Projected Excise Tax Collections
($000's)
June 30, 1999
(Unaudited)
Actual(a) Projected
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
Year Year Year Year Year Year
Revenue Source 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01
Town Sales and Franchise Taxes $ 3,886 $ 3,694 $ 3,845 $ 4,501 $ 4,962 $ 5,210
Licences and Permits 982 930 1,069 1,396 1,105 1,160
Fines 243 223 184 210 201 211
State-Shared Sales Tax 773 1,387 1,465 1,571 1,635 1,717
State-Shared Income Tax 672 1,489 1,682 1,963 2,178 2,287
Total $ 6,556 $ 7,723 $ 8,245 $ 9,641 $ 10,081 $ 10,585
(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
70
Town of Oro Valley,Arizona
Town Transaction Privilege(Sales)and Franchise Tax Collections
By Industry Classification
June 30, 1999
($000's)
(Unaudited)
Actual Projected
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
Industry Classification 1995/96 1996/97 1997/98 1998/99 1999/2000 2000/01
Construction $ 2,220 $ 1,844 $ 1,898 $ 2,398 $ 2,120 $ 2,226
Manufacturing 2 2 4 3 2 2
Transportation,Communications&Utilities 1 1 4 17 14 15
Wholesale Trade 16 19 18 13 13 14
Retail Trade 436 486 515 674 1,387 1,456
Restaurants,Bars&Lodging 840 888 896 916 981 1,030
Fire,Insurance&Real Estate 92 115 123 15 - -
Services 175 196 202 256 225 236
All Other 1 39 2 2 2 2
Cable Franchise 103 104 183 207 218 229
Total $ 3,886 $ 3,694 $ 3,845 $ 4,501 $ 4,962 $ 5,210
Source: Oro Valley Finance Department
71
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
Ac9 uisition 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 10,081,000 3.92x
2001 $1,826,876 $ 263,808 $205,935 $408,322 $2,704,941 10,585,000 3.91x
2002 $1,935,562 $ 269,130 $210,733 $405,938 $2,821,363 3.75x
2003 $1,938,312 $ 269,285 $210,070 $407,994 $2,825,661 3.75x
2004 $1,939,162 $ 263,685 $203,845 $409,350 $2,816,042
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
72
TOWN OF ORO VALLEY, ARIZONA
STATEMENT OF BONDED INDEBTEDNESS
XNE 30, 1999
(UNAUDITED)
Total General Obligation Bonded Debt None
Primary Assessed Valuation $ 186,13 8,419
Secondary Assessed Valuation 196,647,541
Estmated Full Cash Value 1,735,976,989
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 $ 27,606,679
Certificates of Participation 1996 Land Acquisition 07/01/17 4,805,000
Certificates of Participation 1989 Building Acquisition 06/01/00 170,000
Municipal Prop. Corp.-Excise Tax Rev. Bonds 1999 Dev. Serv. Bldg. 07/01/09 1,695,000
Municipal Prop. Corp.-Excise Tax Rev. Bonds 1999 Water Improvements 07/01/19 3,186,183
73
Town of Oro Valley, Arizona
Direct and Overlapping General Obligation Bonded Debt
June 30, 1999
(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) -
175,146,000 4.26 7,461,220
Pima County Community
College District (1) - 4.26 -
Pima County Flood Control
District (1) 8,135,000 5.88 478,338
Amphitheatter Unified School
District No. 10 (2) 109,035,000 27.19 29,646,617
Total Overlapping37,5 86,175
Total direct and overlapping general
obligation tion bonded debt $ 37,586,175
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
a@ 25,455 Valuation Value
Direct General Obligation
Bonded
Debt $ - 0.00% 0.00%
Direct and Overlapping Overla in 1,476.57 19.11% 2.17%
General Obligation Bonded Debt
74
TOWN OF ORO VALLEY,ARIZONA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30, 1999
(UNAUDITED)
Net secondary assessed valuation $ 196,647,541
Calculation of 20%Debt Limitation
20%of secondary net
assessed valuation $ 39,329,508
Bonds outstanding
Net 20%Debt Limitation 39,329,508
Calculation of 6%Debt Limitation
6%of secondary net
assessed valuation 11,798,852
Bonds outstanding
Net 6%Debt Limitation 11,798,852
Total Bonding Capacity $ 51,128,360
(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
75
Town of Oro Valley,Arizona
Property Tax Assessment Ratios and
Comparative Secondary Assessed Valuation Histories
1995 through 1999
(Unaudited)
Property Classification 1995 1996 1997 1998 1999
p
Mining 29% 28% 27% 26% 25%
Utility 29% 28% 27% 26% 25%
Commerical and Industrial 25% 25% 25% 25% 25%
Agriculture and Vacant Land 16% 16% 16% 16% 16%
Owner Occupied Residential 10% 10% 10% 10% 10%
Leased or Rented Residential 10% 10% 10% 10% 10%
Railroad,Private Car Company 26% 24% 23% 22% 21%
&Airline Flight Property
Source: Arizona Department of Revenue
76
Town of Oro Valley,Arizona
Comparative Secondary Assessed Valuation Histories
Fiscal Years 1994/95 through 1998/99
(Unaudited)
Pima State of
Fiscal Year County Arizona
1998/99 $ 4,616,303,822 $ 28,184,077,278
1997/98 4,915,883,987 26,793,103,101
1996/97 3,247,512,122 25,3 84,679,197
1995/96 3,218,883,605 23,022,330,962
1994/95 3,150,104,570 22,179,317,949
Source: Arizona Department of Revenue
77
Town of Oro Valley, Arizona
Assessed Valuations and Tax Rates
June 30, 1999
(Unaudited)
Arizona legistation limits increases in assessed valuation of residential properties, limits total
er taxes, levied bycounties, cities, towns, community college districts, fire districts and
property
school districts, establishes maximum limits on annual expenditures by counties, cities, towns,
community college e districts, fire districts and school districts subject to adjustments for
population ulation 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 in Secondary Assessed Valuation and Tax Rates per $100 of Assessed
Valuation (1)
1999/2000
Secondary Primary Tax Rates
Assessed Assessed Per $100 of
Overlapping P Y
Municipality Valuation Valuation Assessed Valuation
State of Arizona $28,184,077,278 $ 26,593,673,070 0.0000
Pima County 4,616,303,822 4,450,763,675 5.5287
Pima Cty. Comm. College Dist. 4,616,303,822 4,450,763,675 1.3696
Pima County Library District 4,616,303,822 N/A 0.2024
Pima Cty. Flood Control Dist. 3,345,513,150 N/A 0.3046
Pima Cty. Fire Dist. 4,616,303,822 N/A 0.0511
Central AZ. Water Conservation
District 4,616,303,822 N/A 0.1400
Golder Ranch Fire District 93,854,404 N/A 1.8900
Amphitheater Unified School
District 723,268,473 691,843,531 7.1715
Total Tax Rates Per $100 of Assessed
Valuation:
Total Tax Rates Inside Town of Oro Valley,
Golder Ranch Fire District and
Amphitheater Unified School District
District No. 10 16.6579
Total Tax Rates Inside Town of Oro Valley,
and Amphitheater Unified School District
No. 10 and Outside Golder Ranch Fire
District 14.7679
(1) upon Based 1999/2000 data obtained from the tax rolls of the Arizona Department of Revenue.
78
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
1990 0.4700 5.2682 0.5985 0.9010 0.2025 0.1000 0.0497 6.8789 0.0000 14.4688
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 f 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
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.
79
TOWN OF ORO VALLEY,ARIZONA
NET ASSESSED AND FULL CASH VALUES OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(UNAUDITED)
Secondary Total
Tax Assessed Full Value to Full
Year Type Value Cash Value Cash Value
1990 Secondary $ 57,361,643 $ 433,702,370 13.23%
1991 Secondary 61,090,215 473,100,360 12.91%
1992 Secondary 65,098,105 524,632,806 12.41%
1993 Secondary 71,925,888 589,807,394 12.19%
1994 Secondary 84,327,297 710,815,727 11.86%
•
1995 Secondary 119,234,229 1,027,672,095 11.60%
1996 Secondary 130,338,334 1,152,886,386 11.31%
1997 Secondary 165,265,200 1,465,659,846 11.28%
1998 Secondary 178,766,882 1,578,978,076 11.32%
1999 Secondary 196,647,541 1,735,976,989 11.33%
Source: Pima County Assessor
80
Town of Oro Valley,Arizona
Secondary Assessed Valuation by Property Classification
(Unaudited)
FY 1998/99 FY 1997/98 FY 1996/97 FY 1995/96 FY 1994/95
1. Mining and Timber $ - $ - $ - $ $
2. Utilities 4,265,797 3,585,691 3,573,365 4,339,492 2,238,341
3. Commercial and Industrial 22,341,369 19,040,627 13,458,310 13,831,747 13,468,824
4. Agricultural and Vacant 25,997,331 24,377,563 16,344,469 17,228,723 11,891,092
5. Residential(Owner Occupied) 136,071,440 124,950,876 91,523,202 79,747,629 52,849,488
6. Residential(Rental) 7,971,604 6,812,125 5,433,426 4,065,291 3,859,487
10. (B).Commercial Historic - - 5,562 5,233 -
11. Livestock,poultry,aquatic animals,and bees - - - - 20,067
12. Possesory Interests - - - 16,114 -
$ 196,647,541 $ 178,766,882 $ 130,338,334 $ 119,234,229 $ 84,327,299
Source: Arizona Department of Revenue
81
TOWN OF ORO VALLEY,ARIZONA
SECONDARY ASSESSED VALUATION OF MAJOR TAXPAYERS
JUNE 30, 1999
(UNAUDITED)
1999-00 As%of Town'
Secondary Total Secondar
Assessed Assessed
Taxpayer Valuation Valuation
El Conquistador Hotel Associates $ 12,141,335 6.17%
Tucson Electric Power 2,930,862 1.49%
Evans Withycombe Finance Partnership 1,999,200 1.02%
Overland Vistoso Limited Partnership 1,574,391 0.80%
U.S.West Communications 1,279,271 0.65%
Gateway Canyon,Inc. 1,129,000 0.57%
Lincoln National Life Insurance Co. 1,092,575 0.56%
Tucanada Holdings 875,000 0.44%
Kroger Corp. 745,200 0.38%
g �
Capri Company,LLC 578,420 0.29%
p
Totals $ 24,345,254 12.38%
Source: Pima County Assessor's Office
82
TOWN OF ORO VALLEY,ARIZONA
HISTORICAL AND PROJECTED WATER SYSTEM REVENUES,
EXPENSES,DEBT SERVICE AND COVERAGE
(UNAUDITED)
Historical Actual
1995/96 1996/97 1997/98 1998/99
Revenues:
Water revenues $ 779,303 $ 4,313,185 $ 4,494,937 $4,713,632
Other revenues 13,670 60,820 4,637 217,573
Interest income 121,044 225,118 279,891 288,095
Total revenues 914,017 4,599,123 4,779,465 5,219,300
Expenditures:
Personnel 58,238 427,402 490,399 622,762
Operations&maintenance 166,953 1,087,435 1,238,034 1,816,542
CAP water costs 24,780 114,261 167,078 180,704
Total expenditures 249,971 1,629,098 1,895,511 2,620,008
Net water system revenues 664,046 2,970,025 2,883,954 2,599,292
Water supported debt service:
1996 Bonds debt service 374,369 1,597,475 1,818,775 1,831,100
1999 Water related debt service
Total water supported debt service $374,369 $ 1,597,475 $ 1,818,775 $ 1,831,100
Net water system revenues
debt service coverage 1.77 x 1.86 x 1.59 x 1.42 x
Source: Oro Valley Finance Department
83
TOWN OF ORO VALLEY,ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
OCTOBER 2, 1999
(UNAUDITED)
Monthly Minimum
Water Rates
Meter Size Effective 8-21-99
City Non-City OV#1
5/8"X 3/4" $ 9.35 $ 10.81 $ 10.22
3/4" N/A N/A N/A
1" 23.40 27.10 25.55
1.5" 47.07 54.19 51.10
2" 74.83 86.66 81.76
3" 150.57 173.33 163.52
4" 237.50 274.25 255.50
6" 475.00 548.50 511.00
8" N/A 932.45 N/A
Notes:
• 1,000 gallons are included in the Minimum Monthly Charges for City&Non-City Customers.
•2,000 gallons are included in the Minimum Monthly Charge for OV#1 Customers.
•The commodity charge is$1.85 per 1,000 gallons-regardless of usage-for OV#l
•The 1st tier commodity charge is$1.73 per 1,000 gallons up to 10,000 gallons(City&Non-City)
•The 2nd tier commodity charge is$1.85 per 1,000 gallons as shown(City&Non-City):
5/8 x 3/4" in excess of 10,000 gallons 3" in excess of 186,000 gallons
1" in excess of 16,000 gallons 4" in excess of 169,000 gallons
1.5" in excess of 38,000 gallons 6" in excess of 1,800,000 gallons
2" in excess of 80,000 gallons 8" in excess of 8,000 gallons
•The 2nd tier for golf course will be assessed on usage in excess of ADWR annual allotment
•Special Commodity Charges:
Vistoso Highlands Golf Course: $ .30 per 1,000 gallons($100 per acre foot)
La Cholla AirPark: $1.55 per 1,000 gallons up to 1,800,000 gallons-Tier 1
$1.67 per 1,000 gallons over 1,800,000 gallons-Tier 2
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
84
TOWN OF ORO VALLEY, ARIZONA
ORO VALLEY WATER UTILITY
SCHEDULE OF RATES,FEES AND CHARGES
OCTOBER 2, 1999
(UNAUDITED)
Meter Hook-up Fees
Installation Effective
Meter Size Charges 5/28/96 AWRDF
Effective Effective
10/2/99 CH&OV#1 RV 8/13/96
5/8"X 3/4" $ 150 $ 575 $ 550 $ 300
1"standard 200 1,468 1,375 750
1.5"standard 390 2,875 2,750 1,500
1.5"turbine 560 2,875 2,750 1,500
2"standard 560 4,600 4,400 2,400
2"turbine 660 4,600 4,400 2,400
2"compound 1,365 4,600 4,400 2,400
3"turbine 875 8,625 8,250 4,500
3"compound 1,700 8,625 8,250 4,500
4"turbine 1,600 14,375 13,750 7,500
4"compound 2,750 14,375 13,750 7,500
6"turbine 3,240 28,750 27,500 15,000
6"compound 4,925 28,750 27,500 15,000
Time&
8"turbine Materials 28,750 N/A N/A
Multifamily
Per Unit Cost N/A * $275.00 * $260.00 ** $144.00
* 5% sales tax must be added to al Meter Installation Charges.
85
Town of Oro Valley, Arizona
Number of Meters Connected
(Unaudited)
Fiscal Meters Running
Year Connected Total
Pre-05/01/96 * 9,863 9,863
1995/96 ** 152 10,015
1996/97 523 10,538
1997/98 802 11,340
1998/99 985 12,325
1999/00 *** 1,864 14,189
2000/01 *** 901 15,090
2001/022001/02 *** 928 16,018
2002/03 *** 956 16,974
2003/04 *** 985 17,959
2004/05 *** 1,015 18,974
2005/06 *** 1,045 20,019
2006/07 *** 1,076 21,095
2007/08 *** 1,108 22,203
* Connections existing at the time the Town acquired the two private water
companies.
** Connections added between May 1st and June 30, 1996.
*** The TownJ
ro'ects meter connections to increase by 3% for each of these
P
years. These projections are forward looking statements. No assurance
can be given that these projections will be met.
Source: Oro Valley Water Utility
86
Town of Oro Valley, Arizona
Number of Connections by Type
Fiscal Year 1998/99
(Unaudited)
Number Percentage Percentage
of of Water of
User Type Connections Total Revenues Total
Residential 11,325 91.89% $ 3,026,494 64.21%
Commercial 117 0.95% 228,806 4.9%
Irrigation 266 2.16% 337,004 7.1%
Construction 604 4.90% 215,130 4.6%
Turf 9 0.07% 848,744 18.0%
Wholesale/Unmetered 4 0.03% 57,455 1.2%
Totals 12,325 100.0% $ 4,713,633 100.0%
Source: Oro Valley Water Utility and Finance Department
87
Town of Oro Valley,Arizona
Schedule of the 15 Largest Water System Customers
Fiscal Year 1998/99
(Unaudited)
Actual
Annual Actual
Gallons Annual
Consumed Water
Water System Customer (000's omitted) Charges
El Conquistador Golf Course&Country Club 345,286 $ 611,379
Sun City Golf Course 119,701 212,142
Vistoso Highland Golf Course 124,649 38,154
Sheraton El Conquistador Resort 45,441 91,316
Sun City Community Association 18,654 48,703
Copper Creek Elementary School 8,012 44,524
Evans Withycombe(Apartments) 19,404 39,790
Rockridge Apartments 19,075 41,070
La Cholla Air Park(Wholesale) 18,937 33,385
The Boulder Apartments 12,565 25,473
Palo Verde Christian School 7,618 18,631
Allied Signal 5,416 15,218
Fry's Grocery Store 10,592 22,344
Marana Public School(DeGrazia) 3,641 9,921
Countryside Community Association 4,670 9,691
Totals 763,661 $ 1,261,741
Percent of Town Totals 32.13% 26.77%
Source: Oro Valley Water Utility
88
TOWN OF ORO VALLEY,ARIZONA
DEMOGRAPHIC STATISTICS
JUNE 30, 1998
(UNAUDITED)
Population by Age Group
Percentage
Age Group Number of Total
Under 5 1,204 4.73%
5 - 14 3,274 12.86%
15 - 19 1,280 5.03%
20-29 1,535 6.03%
30- 39 3,515 13.81%
40-49 4,073 16.00%
50-64 4,791 18.82%
65 and over 5,783 22.73%
Total 25,455 100.00%
Population by Ethnic Background
Percentage
Category Number of Total
White 23,075 90.65%
Hispanic 909 3.57%
Black 201 0.79%
Native American 94 0.37%
Other 1,176 4.62%
Total 25,455 100.00%
Sources: Town of Oro Valley Planning and Zoning Department
89
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TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF TOP EMPLOYERS
JUNE 30, 1999
(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 600
Canyon Del Oro High School School 256
RVSI/Vanguard Automation Robotics/Automation 100
Town of Oro Valley Government 197
El Conquistador Country Club Dining/Recreation 150
Fry's Food Stores(2) Grocery Store 230
ABCO Food Stores Grocery Store 65
Selectide Medical Research 58
Oro Valley Country Club Dining/Recreation 90
Walgreens(2) Drug Store 35
Pizza Hut Restaurant 34
Burger King Restaurant 20
Target Retail Store 125
Securaplane Aerospace 85
Safeway Grocery Store 60
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 25,455 and recorded a 2.3%unemployment rate in 1998.
91
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TOWN OF ORO VALLEY, ARIZONA
SINGLE AUDIT ACT REPORTS
FOR THE
FISCAL YEAR ENDED JUNE 30, 1999
TOWN OF ORO VALLEY, ARIZONA
TABLE OF CONTENTS
FISCAL YEAR ENDED JUNE 30, 1999
Page
Report on Compliance and on Internal Control Over Financial
Reporting Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards 1
Report on Compliance with Requirements Applicable to each
Major Program and Internal Control over Compliance in
Accordance with OMB Circular A-133 3
Summary of Auditor's Results 5
Financial Statement Findings 6
Federal Award Findings and Questioned Costs 6
Summary Schedule of Prior Audit Findings 6
Supplementary Schedule of Expenditures of Federal Awards 7
. t
CII CRONSTROM
EIII &ATRBOVICH
CCOUNTANT S
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
The Honorable Mayor and Town Council of the
Town of Oro Valley, Arizona
We have audited the financial statements of Town as of and for the year ended June 30, 1999,
and have issued our report thereon dated September 20, 1999. 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.
As part of obtaining reasonable assurance about whether Town's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grants, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance that are
required to be reported under Government Auditing Standards.
In planning and performing our audit, we considered Town's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion
on the financial statements and not to provide assurance on the internal control over financial
reporting. Our consideration of the internal control over financial reporting would not
necessarily disclose all matters in the internal control over financial reporting that might be
material weaknesses. A material weakness is a condition in which the design or operation of one
or more of the internal control components does not reduce to a relatively low level the risk that
misstatements in amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in the normal course
of performing their assigned functions. We noted no matters involving the internal control over
financial reporting and its operation that we consider to be material weaknesses. However, we
noted other matters involving the internal control over financial reporting that we have reported
to management of the Town of Oro Valley, Arizona in a separate letter dated
September 20, 1999.
1
8706 EAST MANZANITA DRIVE,SUITE 100 • SCOTTSDALE, ARIZONA 85258 • (602) 348-1102 • FAX 348-1104
A PROFESSIONAL CORPORATION
This report is intended solely for the information and use of the members of the Arizona State
Legislature, the Auditor General of the State of Arizona, the Town Council, federal awarding
agencies, and pass-through entities and is not intended to be and should not be used by anyone
other than these specified parties. However, this report is a matter of public record and its
distribution is not limited.
Ciurolkov\ ME(1.
Cronstrom & Trbovich, P.C.
September 20, 1999
2
• .
1 CRONSTROM & TRBOVICH
CERTIFIED PUBLIC ACCOUNTANTS
..__.}
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH
MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN
ACCORDANCE WITH OMB CIRCULAR A-133
The Honorable Mayor and Town Council of the
Town of Oro Valley, Arizona
We have audited the compliance of Town with the types of compliance requirements described
in the U. S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement
that are applicable to each of its major federal programs for the year ended June 30, 1999.
Town's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of
laws, regulations, contracts and grants applicable to each of its major federal programs is the
responsibility of Town's management. Our responsibility is to express an opinion on Town's
compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards;
the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States; and OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a
direct and material effect on a major federal program occurred. An audit includes examining, on
a test basis, evidence about Town's compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination on
Town's compliance with those requirements.
In our opinion, Town complied, in all material respects, with the requirements referred to above
that are applicable to each of its major federal programs for the year ended June 30, 1999.
The management of Town is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts and grants applicable
to federal programs. In planning and performing our audit, we considered Town's internal
control over compliance with requirements that could have a direct and material effect on a
major federal program in order to determine our auditing procedures for the purpose of
expressing our opinion on compliance and to test and report on internal control over compliance
in accordance with OMB Circular A-133.
3
8706 EAST MANZANITA DRIVE,SUITE 100 ■ SCOTTSDALE, ARIZONA 85258 ■ (602) 348-1102 ■ FAX 348-1104
A PROFESSIONAL CORPORATION
' w
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that noncompliance with applicable
requirements of laws, regulations, contracts and grants that would be material in relation to a
major federal program being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control over compliance and its operation that we consider to be material
weaknesses. However, we noted certain immaterial instances of noncompliance that we reported
to management of the Town of Oro Valley in a separate letter dated September 20, 1999.
We have audited the general-purpose financial statements of Town as of and for the year ended
June 30, 1999, and have issued our report thereon dated September 20, 1999. Our audit was
performed for the purpose of forming an opinion on the general-purpose financial statements
taken as a whole. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by OMB Circular A-133 and is not a required part of
the general-purpose financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the general-purpose financial statements and, in our opinion, is
fairly stated, in all material respects, in relation to the general-purpose financial statements taken
as a whole.
This report is intended solely for the information and use of the members of the Arizona State
Legislature, the Auditor General of the State of Arizona, the Town Council, federal awarding
agencies, and pass-through entities and is not intended to be and should not be used by anyone
other than these specified parties. However, this report is a matter of public record and its
distribution is not limited.
\A-6-0-01vc.
Cronstrom & Trbovich, P.C.
September 20, 1999
4
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TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FISCAL YEAR ENDED JUNE 30, 1999
SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued: Unqualified
Internal control over financial reporting:
• Material weakness(es) identified? yes X no
• Reportable condition(s) identified
not considered to be material weaknesses? yes X none reported
• Noncompliance material to financial yes X no
statements noted?
Federal Awards
Internal Control over major programs:
• Material weakness(es) identified? yes X no
• Reportable condition(s) identified not
considered to be material weaknesses? yes X none reported
Type of auditor's report issued on compliance
for major programs: Unqualified
Any audit findings disclosed that are
required to be reported in accordance
with Circular A-133, Section .510(a)? yes X no
Identification of major programs:
CFDA Number(s) Name of Federal Program or Cluster
16.592 U.S. Department of Justice - COPS FAST
Dollar threshold used to distinguish
between Type A and Type B programs: $300,000
Auditee qualified as low-risk auditee? X yes no
5
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TOWN OF ORO VALLEY, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FISCAL YEAR ENDED JUNE 30, 1999
SECTION II FINANCIAL STATEMENT FINDINGS
No matters reported.
SECTION III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters reported.
SECTION IV SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
There were no prior audit findings.
6
TOWN OF ORO VALLEY,ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999
Federal Pass-through
CFDA Grantor's
Grantor Agency Number Number Revenues Expenditures
U.S.Department of Justice
COPS FAST 16.592 N/A $ 341,753 $ 341,753
DEA 16.Unknown N/A 6,519 6,519
Passed through the City of Tucson:
High Intensity Drug Trafficking Area(HIDTA) 16.579 092-2167 120,179 120,179
Metropolitan Area Narcotics Trafficking
Interdiction Squads(MANTIS) 16.579 092-2180 60,729 60,729
Total U.S.Department of Justice 529,180 529,180
TOTAL FEDERAL AWARDS $ 529,180 $ 529,180
(1) This schedule was prepared on the modified accrual basis of accounting.
7