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02/03/2009 Council Agenda Packet
~~~ ~~ ~~~~ REGULAR COUNCIL MEETING NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, February 3, 2009, at or after 7:00 PM Ed Honea, Mayor Herb Kai, Vice Mayor Russell Clanagan, Council Member Patti Comerford, Council Member Carol McGorray, Council Member Jon Post, Council Member Roxanne Ziegler, Council Member ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised agenda items appear in italics. As a courtesy to others,~lease turn off or put in silent mode all pagers and cell phones. Meetin Tg imes Welcome to this Marana Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 7:00 p.m. at the Marana Town Hall, although the date or time may change, or Special Meetings may be called at other times and/or places. Contact Town Hall or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings If you are interested in speaking to the Council during Call to the Public, Public Hearings, or other agenda items, you must fill out a speaker card (located in the lobby outside the Council Chambers) and deliver it to the Town Clerk prior to the convening of the meeting. All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council Rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from. the meeting and will not be allowed to return. Accessibil~ To better serve the citizens of Marana and others attending our meetings, the Council Chambers are wheelchair and handicapped accessible. Any person who, by reason of any disability, is in need of special services as a result of their disability, such as assistive listening devices, agenda materials printed in Braille or large print, a signer for the hearing impaired, etc., will be accommodated. Such special services are available upon prior request to the Town Clerk at least 10 working days prior to the Council meeting. Regular Council Meeting -February 3, 2009 -Page 1 of 265 Agendas Copies of the agenda are available the day of the meeting in the lobby outside the Council Chambers or online at ~~rww.marana.co, by linking to the Town Clerk page under Agendas, Minutes and Ordinances. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at 382- 1999, Monday through Friday from 8:00 a.m. to 5:00 p.m. Posted no later than Monday, February 02, 2009, 7:00 PM, at the Marana Municipal Complex, the Marana Operations Center and at www.marana.c©m under Town Clerk, Agendas, Minutes and Ordinances. REGULAR MEETING CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue not already on tonight's agenda. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the council may respond to criticism made by those who have addressed the Council, may ask staff to review the matter, or may ask that the matter be placed on a future agenda. PRESENTATIONS P 1: Presentation: Relating to the Town's financial statements for fiscal year ended June 30, 2008 (Erik Montague) ANNOUNCEMENTS/UPDATES PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS TOWN REPORTS GENERAL ORDER OF BUSINESS CONSENT AGENDA The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion will approve all items on the Consent agenda, including any resolutions or ordinances. A Council Member may remove any issue from the Consent agenda, and that issue will be discussed and voted upon separately, immediately following the Consent agenda. Regular Council Meeting -February 3, 2009 -Page 2 of 265 C 1: Resolution No. 2009-10: Relating to the budget and financial plan; approval of fiscal year 2008-2009 budget reallocations; and declaring an emergency (Erik Montague) C 2: Resolution No. 2009-11: Relating to Personnel; approving and authorizing an amendment to the classified salary schedule for FY 2008-2009 adopted by the Town Council on August 12, 2008; and declaring an emergency (Suzanne Machain) C 3: Resolution No. 2009-12: Relating to Development; approving and authorizing a final plat for Old West Industrial Village (Kevin Kish, AICP) C 4: Resolution No, 2009_-13:__Relating to Community Development; granting $24,000 in Discretionary Funding to the Marana Western Heritage Committee, Inc. an Arizona 501(c) (3) non-profit organization to support youth activities at the Marana Heritage Arena (T VanHook) C 5: Minutes of the January 20, 2009 regular council meeting and the January 20, 2009 special council meeting COUNCIL ACTION A 1: Ordinance No. 2008.26: Relating to to Development; approving and authorizing a rezoning for Marana Mercantile (Kevin Kish, AICP) A 2: PUBLIC HEARING: Resolution No. 2009-14: Relating to Real Estate; vacating and abandoning any rights granted to the public by the easement recorded in Docket 11280, Page 262, Pima County Recorder's office, including any previously-recorded versions and as it may have been amended, located within the town limits of the Town of Marana; and declaring an emergency (Frank Cassidy) A 3: PUBLIC HEARING: Resolution No. 2009-15: Relating to Real Estate; Vacating that portion of Thornydale Road right-of--way located north of the Saguaro Ranch roundabout within the town limits of Marana; conditionally authorizing the Town Engineer to execute deeds of abandonment; and declaring an emergency (Frank Cassidy) A 4: Ordinance No. 2009.01: Relating to Offenses; amending Title 11 of the Marana Town Code to prohibit the act of leaving a child under the age often unattended in a motor vehicle; adding Chapter 11-8; renumbering existing Chapters 11-8 and 11-9; and designating an effective date. (Jane Fairall) A 5: Resolution No. 2009-16: Relating to Strategic Planning; approving and authorizing the Town Manager to implement the Town of Marana Strategic Plan; and declaring an emergency (Gilbert Davidson) A 6: Resolution No. 2009-17: Relating to Utilities; revising Resolution No. 2009-08 by rescheduling the water rates public hearing for February 24, 2009 at 7:00 p.m. (Frank Cassidy) BOARDS, COMMISSIONS AND COMMITTEES ITEMS FOR DISCUSSION/POSSIBLE ACTION D 1: Legislative Issues: Discussion/Direction/Action regarding all pending bills before the Legislature (Steve Huffinan) EXECUTIVE SESSIONS Regular Council Meeting -February 3, 2009 -Page 3 of 265 E 1: Executive Session pursuant to A.R.S. §38-431.03 (A)(3), Council may ask for discussion or consultation for legal advice with the Town Attorney concerning any matter listed on this agenda. E 2: Executive Session pursuant to A.R.S. § 38-431.03(A)(3),(4) and (7), discussion or consultation for legal advice with the Town's attorneys and discussion and to consider its position and instruct the Town Manager and staff concerning (1) the lawsuit entitled Town of Marana v. Pima County/Pima County v. Marana (consolidated), Maricopa County Superior Court No. CV2008-001131, (2) pending legal issues, settlement discussions and contract negotiations relating to the transition of Marana wastewater collection and treatment to the Town of Marana. FUTURE AGENDA ITEMS Notwithstanding the mayor's discretion of what items to place on the agenda, if three or more council members request an item to be placed on the agenda, it must be placed upon the agenda for the second regular town council meeting after the date of the request (Marana Town Code, Title 2, Chapter 2-4, Section 2-4-2 B) ADJOURNMENT Regular Council Meeting -February 3, 2009 -Page 4 of 265 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council From: Erik Montague ,Finance Director Item P 1 Subject: Presentation: Relating to the Town's financial statements for fiscal year ended June 30, 2008 Discussion: The purpose of this item is to present Council with the Town's audited financial statement for fiscal year ended June 30, 2008. Financial Impact: Presentation only. • ATTACHMENTS: Name: Description: Type:. D 2008Financia_IStat_ements_Marana AZ.pdf FY2008 Financial Statements Caver Memo Staff Recommendation: Presentation only. Suggested Motion: Presentation only. Regular Council Meeting -February 3, 2009 -Page 5 of 263 U • ~~ Regular Council Meeting -February 3, 2009 -Page 7 of 263 TOWN OF MARANA, ARIZONA • COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED ]UNE 30, 2008 11555 W. Civic Center Dr., A3 Regular Council Meeting -February 3, 2009 -Page 8 $ana, Arizona 85653 • Regular Council Meeting -February 3, 2009 -Page 9 of 263 TOWN OF MARANA • MARANA, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DUNE 30, 2008 • ., .~ Issued by: Regular Council Meeting -February 3, Zoos - Page ~o of ~lanCe Department • • ~.' Regular Council Meeting -February 3, 2009 -Page 11 of 263 TOWN OF MARANA, ARIZONA TABLE OF CONTENTS INTRODUCTORY SECTION Paae Letter of Transmittal i Principal Officials vi Senior Staff vi Organizational Chart vii FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) 5 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Assets 25 Statement of Activities 26 Fund Financial Statements: Balance Sheet -Governmental Funds 30 Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets 33 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds to the Statement of Activities 37 Regular Council Meeting -February 3, 2009 -Page 12 of 263 TOWN OF MARANA, ARIZONA TABLE OF CONTENTS (Cont'd) • FINANCIAL SECTION (Cont'd) ~~ Paae BASIC FINANCIAL STATEMENTS (Concl'd) Statement of Net Assets -Proprietary Funds 38 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds 39 Statement of Cash Flows -Proprietary Funds 40 Notes to Financial Statements 41 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL (Required Supplementary Information) General Fund 69 Highway User Revenue Fund 70 • Note to Required Supplementary Information 71 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Other Major Governmental Funds Schedules of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual: South Benefit Area Impact Fees Fund 77 Transportation Fund 78 Other Capital Projects Fund 79 Non-Major Governmental Funds: Combining Balance Sheet -All Non-Major Governmental Funds - By Fund Type 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances -All Non-Major Governmental Funds - By Fund Type 84 Regular Council Meeting -February 3, 2009 -Page 13 of 263 TOWN OF MARANA, ARIZONA • TABLE OF CONTENTS (Concl'd) FINANCIAL SECTION (Concl'd) Paae COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Concl'd) Non-Major Special Revenue Funds: Combining Balance Sheet 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 92 Combining Schedule of Revenues, Expenditures and ~' Changes in Fund Balances -Budget and Actual 96 Non-Major Debt Service Funds: Combining Balance Sheet 110 • Combining Statement of Revenues, Expenditures and Changes in Fund Balances 112 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual 114 Non-Major Capital Projects Fund: Combining Balance Sheet 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 124 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual 126 STATISTICAL SECTION Statistical Section 135 • Regular Council Meeting -February 3, 2009 -Page 14 of 263 ~J r- ~~~~~~ WVVI TdWN dF MARANA • Regular Council Meeting -February 3, 2009 -Page 15 of 263 • INTRODUCTORY SECTION Regular Council Meeting -February 3, 2009 -Page 16 of 263 ~.. ~~ ~~~~1 ~~ ~v"~/V'~rI 1 TQWN OF MARANA r~ Regular Council Meeting -February 3, 2009 -Page 17 of 263 December 24, 2008 The Honorable Mayor and Town Council, and Citizens of the Town of Marana, Arizona: State statutes require that cities and towns publish a complete set of financial statements presented inconformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the annual financial .report of the Town of Marana, Arizona (Town) for the fiscal. year ended June 30, 2008. This report consists of senior management's representations concerning the finances of the . Town. Consequently, senior management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Town has established a comprehensive internal control framework that is designed to protect both the Town's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town's financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the Town's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town's financial statements have been audited by Henry & Horne, LLP, a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town for the fiscal year ended June 30, 2008, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial. statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town's financial statements for the fiscal year ended June 30, • 2008, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditors' report is presented as the first component of the financial section of this report. Regular Council Meeting -February 3, 2009 -Page 18 of 263 The independent audit of the financial statements of the Town was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act • Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Loca/ Governments and Non-Profit Organizations designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited Town's internal .controls and compliance with. legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town's MD&A can be found immediately following the report of the independent auditors. PROFILE OF THE TOWN The Town of Marana, incorporated in 1977, is located in northern Pima County and one of the fastest growing communities in Arizona. Straddling Interstate 10, Marana is only 10 miles north of downtown Tucson and 90 miles south of downtown Phoenix. Marana's original incorporation covered approximately ten square miles. The Town's planning area • currently occupies over 120 square miles and serves a population in excess of 34,000. In its infancy, the Town was primarily a rural, agricultural community. However, through annexations and planned growth, the Town is now home to several residential, commercial and industrial developments, including Continental Ranch, Continental Reserve, Sunflower, Heritage Highlands, Dove Mountain, Saguaro Ranch, Sky Ranch, Continental Ranch Business Park and Arizona Pavilions Drive. Legislative authority for the Town of Marana is vested in aseven-member Mayor and Council. Voters of the Town directly elect the Mayor. Council-members serve four-year staggered terms. The Council fixes the duties and compensation of Town officials and employees, and enacts ordinances and resolutions relating to Town services, taxes, appropriating and borrowing monies, licensing and regulating businesses and trades and other municipal purposes. The Town Council appoints the Town Manager who has full responsibility for executing Council polices and administering Town operations. Town employees are hired under personnel rules approved by the Council. A staff of approximately 360 employees is responsible for the functions and operations of the Town government. • Regular Council Meeting -February 3, 2009 -Page 19 of 263 • ECONOMIC CONDITION AND OUTLOOK The. national and local economies continued to slow significantly during the current fiscal year. This was especially true in the second half of the fiscal year ended June 30, 2008. The economic slowdown, and its effect on economically sensitive revenues, has resulted in significant decreases in revenues from building permits, planning. fees and construction sales taxes. These factors were included in the Town's multi-year revenue forecasts which provided the basis of the fiscal year 2008-09 budget. The Town's budget is structurally balanced with ongoing revenues supporting ongoing expenditures. One-time revenues like contracting sales taxes and building permits support one-time expenditures. The Town does not anticipate any significant increase in economically sensitive revenues until fiscal year 2009-10. As a result, the Town's adopted fiscal year 2008-09 budget, which anticipates reduced sales tax revenues and building related fees, focuses on the maintenance of essential services and programs. Current Condition The Town's current fiscal position improved slightly from fiscal year 2006-07. The financial performance of the Town as a whole is reflected in its governmental funds. As of June 30, 2008, the Town's governmental funds reported a combined fund balance of $42.3 million, of which $41.7 million is unreserved and available for spending at the Town's • discretion.. The Town, like most municipalities, is significantly dependent upon sales tax revenues which are subject to economic fluctuations. Sales tax revenues comprised 59% of general fund revenues. Retail and construction comprised 75% of total sales tax revenues. As described above, revenues related to the residential construction industry slowed significantly during the current fiscal year. Revenue shortfalls from -the slowdown in residential development were partially offset by revenues received from strong commercial development during the first half of the fiscal year. Residential development is expected to be relatively slow through at least the next fiscal year. In fiscal year 2008, the Town issued 353 single family residential (SFR) permits, a decrease of 52.5 .percent from the prior year. Future Economic Outlook Despite the significant slowdown in development, the Town of Marana's economic outlook continues to be largely positive. The Town is well positioned to take advantage of the eventual economic recovery. Once the economy rebounds, Marana will have rapid commercial, industrial and residential growth due to the abundance of developable land. Regular Council Meeting -February 3, 2009 -Page 20 of 263 Cash Management Cash is invested on a pooled basis with the Arizona State Treasurer's OfFice in the Local • Government Investment pool. Investment income is allocated to the funds monthly on the basis of the cash provided for investment. The average yield on investments held with the State Treasurer was 2.39% for fiscal year 2008-2009. Expenditure Limitation One June 30, 1980 Arizona voters approved general propositipns amending the Arizona Constitution to establish expenditure and revenue limitations for local governments. The purpose of the expenditure limitation is to control expenditures and to limit future increases in spending to adjustments for inflation, deflation and population growth of the Town. On May 17, 2005, the voters of the Town approved an alternative expenditure limitation, the effect of which is that the total budgeted expenditures of each yearly budget becomes the expenditure limitation for that year on a total budget basis. This alternative expenditure limitation is effective for four years. Single Audit As a recipient of Federal, State and County financial assistance, the Town is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws, regulations, contracts and grants related to those programs. Internal control is subject to periodic evaluation by management. As part of the Town's single audit described earlier, tests are made to determine the • adequacy of the internal controls, including that portion related to Federal financial assistance programs, as well as to determine that the Town has complied with applicable laws and regulations. Pension Benefits Employees of the Town of Marana participate in one of four pension plans. Most Town employees participate in the Arizona State Retirement System which administers acost- sharing, multiple-employer defined benefit pension plan that covers general employees of the Town. The Public Safety Retirement System administers an agent multiple-employer defined benefit pension plan that covers public safety personnel. Dispatchers participate in the Correctional OfFcers Retirement Plan which is an agent multiple-employer defined benefit pension plan. The Elected Officials' Retirement Plan administers acost-sharing multiple-employer defined benefit pension plan for elected officials. Risk Management The Town is responsible for the supervision and protection of the Town's assets by employing various risk management techniques and procedures, which will reduce, minimize or eliminate the potential for risk. The Town carries insurance for general liability, property, automobile, and public official's errors and omissions through the Arizona Municipal Risk Retention Pool (AMRRP). Regular Council Meeting -February 3, 2009 -Page 21 of 263 IV • • The preparation of this report would not have been possible without the efficient and dedicated services of the Finance Department. We would like to express our appreciation to all members of the Department who assisted and contributed to the preparation of this report. Acknowledgements A special thanks to the Mayor and Council for dedicating the resources to this project and for their leadership and support of staff. Respectfully submitted, ~~ Gilbert Davidson Town Manager Erik Montague, CPA Finance Director Regular Council Meeting -February 3, 2009 -Page 22 of 263 V TOWN OF MARANA, ARIZONA PRINCIPAL OFFICIALS OF THE TOWN OF MARANA FISCAL YEAR 2008 MAYOR AND COUNCIL Ed Honea, Mayor Herb Kai, Vice Mayor Roxanne Ziegler, Councilmember Russell Clanagan, Councilmember Patti Comerford, Councilmember Carol McGorray, Councilmember Jon Post, Councilmember MANAGEMENT STAFF Gilbert Davidson, Town Manager Deb Thalasitis, Assistant Town Manager DEPARTMENT HEADS Jocelyn Bronson, Town Clerk Mike Mencinger, Operations Division Manager Barbara Johnson, Public Works Director Kevin Kish, Planning Director John Huntley, Building Official Tom Ellis, Parks and Recreation Director Erik Montague, Finance Director Keith Brann, Town Engineer Frank Cassidy, Town Attorney Brad DeSpain, Utilities Director Charles Mangum, Airport Manager Charles Davies, Town Magistrate Terry Tometich, Police Chief Gary Hudman, Technology Services Director Suzanne Machain, Human Resources Director T. VanHook, Community Development Director • ., .~ • Regular Council Meeting -February 3, 2009 -Page 23 of 263 VI • TOWN OF MARANA, ARIZONA ORGANIZATIONAL CHART FISCAL YEAR 2008 Ci#i~ens of the Town of Marana ~~ Town Council `'''~ '`~~' ~~ ;°'`. Town Magistrate Public Information ~ Town Manager Office Deputy Town Manager ~ Assistant Town Manager ' . Building Planning ' Town Clerk Finance Services Parks $ Economic ~.~.~~:~ ,_,~ , ; ,_ ,,:~::„ . ~ ,:,:,~~ .~~. .<- ..~~~ Recreation Development Public Works Human Legal Resources Communi hr .. .. ,r,.~T~.R!F~dL:._ . ,. .,.41s~:~-;.t:,:, ,::~~~-,~~~ Development Technology Water Utility Operations 8 Airport Maintenance .x_ a~<::r .~..... Services Police. • Regular Council Meeting -February 3, 2009 -Page 24 of 263 VII • • • Regular Council Meeting -February 3, 2009 -Page 25 of 263 VIII • FINANCIAL SECTION • • Regular Council Meeting -February 3, 2009 -Page 26 of 263 • ~ i r i MAI~ANA ~.~1~ TOWN ~~ MARANA • • Regular Council Meeting -February 3, 2009 -Page 27 of 263 f. • H~:.~tz~~ r5T HQ~~'~dE~ ~.~.r- L„ti:r[~1ie~c].. FLt U...a~ t.,..::C'r+14~knt~: Independent Auditors' Report The Honorable Mayor and Council Town of Marana, Arizona We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Marana (the Town), Arizona, as of and. for the year ended June 30, 2008, which collectively comprise the Town's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of • the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective. financial position of the governmental. activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Marana, Arizona, as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In connection with our audit, nothing came to our attention that caused us to believe that the Town of Marana failed to use highway user revenue fund monies received by the Town of Marana pursuant. to Arizona Revised Statutes Title 28, Chapter 18, Article 2 and any other dedicated state transportation revenues received by the Town of Marana solely for the authorized transportation purposes. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Regular Council Meeting - Februa 3` 7009 y-~~~~_a a 28 of 263 4r~ "' 1,-~ a: ,. ,r,--~;r, ~ ~~~ .. ,~, -' - The Honorable Ma or and Council • y Town of Marana, Arizona In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2008 on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results ~ of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis on pages 5 through 20 and budgetary comparison information on pages 69 through 71 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Marana, Arizona basic financial • statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Casa Grande, Arizona December 23, 2008 Regular Council Meeting -February 3, 2009 -Page 29 of 263 • MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) • (Required Supplementary Information) • Regular Council Meeting -February 3, 2009 -Page 30 of 263 • • Regular Council Meeting -February 3, 2009 -Page 31 of 263 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD8eA) i YEAR ENDED JUNE 30, 2008 As management of the Town of Marana, Arizona, (Town) we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2008. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. FINANCIAL HIGHLIGHTS • The Town's total net assets of governmental activities increased $11.8 million which represents a 5.3 percent increase from fiscal year 2006-07. • General revenues from governmental activities accounted for $38.8 million in revenue, or 63 percent of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions accounted for $22.8 million, or 37 percent of total governmental activities. The • Town had $10.1 million of program revenues related to business-type activities. • The Town had approximately $49.6 million in expenses related to governmental activities; of which $22.8 million of these expenses were offset by program specific charges for services or grants and contributions. General revenues of $38.8 million were adequate to provide for the remaining costs of these programs. • Among major funds, the General Fund had $33.2 million in fiscal year 2007-08 revenues, which primarily consisted of sales taxes, intergovernmental revenue and licenses, fees and permits. The General fund had $31.8 million of expenditures during the year. • The Transportation Fund had $8.6 million in fiscal year 2007-08 revenues, primarily consisting of contracting sales taxes. The Transportation Fund's fund balance decreased from $17.2 million as of June 30, 2007 to $10.1 million as of June 30, 2008 due to increased capital activity in 2007-08. • Fund balance in the Other Capital Projects Fund decreased by $22.7 million in fiscal year 2007-08, primarily due to the use of bond proceeds to complete the Tangerine Farms Road capital project. • South Benefit Area Impact Fees Fund decreased by $3.7 million due to the .increased capital activity associated with the Twin Peaks interchange project which is the major project funded from this revenue source. Regular Council Meeting -February 3, 2009 -Page 32 of 263 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2008 OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the Town's basic financial statements. The Town's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town's finances, in a manner similar to aprivate-sector business. All of the activities of the Town, except those of a fiduciary nature, are included in these statements. The Town's activities are presented in two columns on these statements; governmental activities and business-type activities. A total column for these activities is also provided. The governmental activities include basic services of the Town including general government (administration), public safety (police and building safety), highways and streets, health and community welfare, economic and community development, culture and recreation, and transportation. These activities are primarily supported by general • taxes and revenues. The business-type activities include the private sector-type activities such as water utility and airport operations. These activities are supported primarily through user charges and fees. The statement of net assets presents information on all of the Town's assets and liabilities, both current and long-term, with the difference between the two reported as net assets. The focus on net assets is important because increases and decreases in net assets may serve as a useful indicator of how the financial position of the Town may be changing. Increases by indicate an improved financial position. However, decreases in net assets may not necessarily indicate the Town's financial position is deteriorating. Instead, it may reflect a situation where the Town may have used previously accumulated funds (i.e., cash collected over time to fund capital projects). As a result, other financial and non-financial indicators must also be considered to effectively assess the Town's overall financial health. The statement of activities presents information showing how the Town's net assets changed during the most recent fiscal year. Since economic resources measurement focus and accrual basis of accounting are used for the government-wide financial statements, all changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash .flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in • future fiscal periods (e.g., uncollected taxes and long-term debt that has not matured). This statement also focuses on both the gross and net costs of various Town functions, Regular Council Meeting -February 3, 2009 -Page 33 of 263 6 TOWN OF MARANA, ARIZONA • MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2008 based only on direct functional revenues and expenses. This is designed to show the extent to which the various functions are dependent on general taxes and revenues for support. In addition to the Town itself (primary government), the government-wide financial statements also include the Marana Municipal Property Corporation, a legally separate entity, for which. the Town is financially accountable. The Corporation also has. substantially the same governing board as the Town and provides services entirely to the Town. Financial information for this component unit is blended into the Town's financial statements. In addition, the` Gladden Farms Community Facilities District and the Vanderbilt Farms Community Facilities District are component units. The government-wide financial statements can be found on pages 25-27 of this report. Fund financial statements. Also presented are the financial statements for governmental funds and proprietary funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been .segregated for specific activities or objectives. The Town uses fund accounting to ensure and demonstrate compliance with • finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spefdable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the Town's near-term financing requirements and determining what financial resources are available in the near future to fund Town programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it may be useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Town's near-term financing decision. To facilitate this comparison, reconciliations of the differences between the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances and government-wide statement of net assets and statement of activities are provided immediately following the respective governmental fund statements. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for • the General, Highway Users Revenue, South Benefit Area Impact Fees, Transportation and Other Capital Projects, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund Regular Council Meeting -February 3, 2009 -Page 34 of 263 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED DUNE 30, 2008 data for each of these non-major governmental funds is provided in the form of combining statements and schedules. These statements are included as supplementary information after the basic financial statements starting on page 82. The Town adopts an annual budget and legally allocates (or appropriates) available monies for the General Fund, Highway User Revenue Fund, South Benefit Area Impact Fees Fund, Transportation Fund, Other Capital Projects Fund, and other non-major governmental funds. Budgetary comparison schedules have been presented for the Town's major funds (pages 69-79), and budgetary comparison schedules have been presented for the Town's non-major funds to demonstrate compliance with the annual budget. The basic governmental fund financial statements can be found on pages 30-40 and 82- 133 of this report. Proprietary funds. Proprietary funds are used to account for services primarily supported by user charges and fees. The Town maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for its water and airport services. Proprietary funds provide the same type of • information as the government-wide financial statements, only in more detail. Notes to -the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Required supplementary information other than MD8eA. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town's budget process. Governments have an option of including budgetary comparison statement of the General Fund and major special revenue funds as either part of the fund financial statements within the basic financial statements, or required supplementary information after the notes to the financial statements. The Town. has elected to present these budgetary comparison schedules as required supplemental information immediately following the notes to the financial statements. Additionally, governments are required to disclose certain information about employee pension funds. These disclosures are included within Note 9 Employee Retirement Systems on page 59 rather than separately presenting the information as required supplementary information. • Regular Council Meeting -February 3, 2009 -Page 35 of 263 8 .TOWN OF MARANA, ARIZONA . MANAGEMENT'S DISCUSSION AND ANALYSIS.(MD&A) YEAR ENDED JUNE 30, 2008 GOVERNMENT-WIDE FINANCIAL ANALYSIS Net assets may serve over time as a useful indicator of a government's financial position. In the case of the Town, assets exceeded liabilities by $264.6 million as of June 30, 2008. Net Assets. The majority of the Town's net assets reflect its investment in capital assets (land, building and improvements, vehicles and equipment and construction in progress) net of accumulated depreciation and any related outstanding debt -used to acquire or construct those assets. The Town uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the Town's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from .other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the Town's net assets are restricted for grants, highways and streets, capital outlay and debt service repayment. The Town's financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal • of capital assets, and the depreciation of capital assets. The following table presents a summary of the Town's net assets for the fiscal years ended June 30, 2008 and June 30, 2007. Governmental Activities Business-type Activities Total 2008 2007 2008 2007 2008 2007 Current and other assets 61,697,585 89,229,007 1,923,319 2,356,380 63,620,904 91,585,387 Capital assets, net 249,678,029 206,977,137 32,341,455 25,521,631 282,019,484 232,498,768 Total assets, net 311,375,614 296,206,144 34,264,774 27,878,011 345,640,388 324,084,155 Current liabilities 16,823,572 14,487,592 1,855,565 1,377,176 18,679,137 15,864,768 Noncurrent liabilities 62,370,865 62,720,682 12,839 7,084 62,383,704 62,727,766 Total liabilities 79,194,437 77,208,274 1,868,404 1,384,260 81,062,841 78,592,534 Net assets: Invested in capital assets, net of related debt 184,395,917 159,963,322 32,341,455 25,521,633 216,737,372 185,484,955 Restricted 25,465,039 59,313,117 1,297,127 - 26,762,166 59,313,117 Unrestricted 22,320,221 (278,569) (1,242,212) 965,967 21,078,009 687,398 Total net assets $ 232,181,177 $ 218,997,870 $ 32,396,370 $ 26,487,600 $ 264,577,547 $ 245,485,470 Regular Council Meeting- February 3, 2009 -Page 36 of 263 9 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2008 • GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd) The Town's net assets increased by $17.7 million or 8.0 percent in fiscal year 2008. Investment in capital assets of $216.7 million or 81.9 percent represents the largest portion of net assets. This reflects the Town's investment in capital assets, net of accumulated depreciation and related outstanding debt used to acquire those assets. These capital assets are used to provide services to the Town's citizens. Consequently, the Town does not intend to sell these assets and, therefore, they are not available for future spending. Although the capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves are not intended to be used to liquidate these liabilities. This portion of net assets increased by $31.2 million or 16.8 percent primarily as a result of the acquisition and construction of infrastructure assets and related improvements. The second largest portion of net assets of $26.8. million or 10.1 percent represents resources that are subject to external restrictions on how they may be utilized. The decrease of $32.5 million or 54.8 percent is due primarily to the utilization of current year resources to complete major transportation projects. Of the $26.8 million in restricted net assets, $20.4 million is restricted by enabling legislation. The third onion consists of unrestricted net assets of 21.1 million or 8.0 ercent. The • p $ p unreserved net assets balance consists of net assets remaining after calculating the other two categories discussed above. The net assets may be used to meet the Town's ongoing obligations to its citizens and creditors. Government-wide Net Assets at June 30, 2008 RestridE 10.1% Invested in capital assets, net of related debt 81.9% • Regular Council Meeting -February 3, 2009 -Page 37 of 263 10 Unrestricted TOWN OF MARANA, ARIZONA • MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED DUNE 30, 2008 Changes in net assets. The Town's total revenues for the fiscal year ended June 30, 2008, were $71..8 million. The total cost of all programs and services was $54.1 million. The following table presents a summary of the changes in net assets for the fiscal years ended June 30, 2008 and June 30, 2007. • • Governmental Activities Business-ty pe Activities Total. 2008 2007 2008 2007. 2008 2007 Revenues: Program revenues: Charges for services $ 3,478,454 $ 6,056,964 3,189,159 $ 3,090,233 $ 6,667,613 $ 9,147,197 Operating grants and contributions 4,699,681 1,404,429 - - 4,699,681 1,404,429 Capital grants and 14,589,920 5,904,043 6,884,770 9,072,643 21,474,690 14,976,686 General revenues: Sales taxes 27,172,921 30,899,549 - - 27,172,921 30,899,549 Property taxes 460,001 - - - 460,001 - Franchise taxes 308,617 - - - 308,617 - Highway users taxes - 2,067,893 - - - 2,067,893 State shared revenues 7,396,678 6,893,620 - - 7,396,678 6,893,620 System development fees - 230,677 - - - 230,677 Intergovernmental revenues - 4,810,090 - - - 4,810,090 Investment income 3,023,965 4,444,618 109,834 18,771 3,133,799 4,463,389 Miscellaneous revenues 458,995 220,950 37,093 - 496,088 220,950 Total revenues 61,589,232 62,932,833 10,220,856 12,181,647 71,810,088 75,114,480 Expenses: General government 12,925,376 10,133,839 - - .12,925,376 10,133,839 Public safety 11,215,325 9,187,308 - - 11,215,325 9,187,308 Highways and streets 10,268,874 15,898,158 - - 10,268,874 15,898,158 Health and welfare 129,757 - - - 129,757 - Emnomic and community development 8,642,906 3,817,047 8,642,906 3,817,047 Culture and recreation 3,977,850 3,557,473 - - 3,977,850 3,557,473 Interest on long-term debt 2,499,797 2,296,864 - - 2,499,797 2,296,864 Water - - 3,275,888 3,227,101 3,275,888 3,227,101 Airport - - 1,196,196 1,028,212 1,196,196 1,028,212 Total expenses 49,659,885 44,890,689 4,472,084 4,255,313 54,131,969 49,146,002 Increase in net assets before transfers $ 11,929,347 $ 18,042,144 $ 5,748,772 $ 7,926,334 $ 17,678,119 $ 25,968,478 Transfers $ (159,998) $ 470,357 $ 159,998 $ (470,357) - - Increase in net assets $ 11,769,349 $ 18,512,501 $ 5,908,770 $ 7,455,977 $ 17,678,119 $ 25,968,478 Regular Council Meeting -February 3, 2009 -Page 38 of 263 11 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD81:A) YEAR ENDED ]UNE 30, 2008 • GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd) Governmental Activities Governmental activities increased net assets by $11.8 million for fiscal year ended June 30, 2008, and accounted for 66.7 percent of the Town's overall increase in net assets. The overall increase in net assets during the year is attributable, in part, to the degree to which increases in ongoing revenues (sales taxes, State shared revenues, etc.) have kept pace with increases in expenses. General revenues of governmental activities of $38.8 million decreased by $10.8 million or 21.7 percent from the previous year. Of this decrease, $2.1 million is attributable to the reclassification of Highway User Revenue Fees revenue from a general revenue classification to the program revenue classification of operating grants and contributions for fiscal year 2007-08. An additional $4.8 million is due to the reclassification of intergovernmental revenues to program revenues for operating or capital grants and contributions, as applicable. The remaining portion of the decrease is primarily due to reduced sales tax revenue collections in fiscal year 2007-08 from the year earlier as a • result of the slowing economy. Almost all of this reduction was experienced in the contracting sales tax classification which the Town utilizes for one-time expenses in the budgetary process. Program revenues of $22.8 million increased by $9.4 million or 70.0 percent from the previous year. This increase is largely due to an $8.7 million increase in capital grants and contributions received due. to increased activity in projects funded by outside agencies combined with the reclassification of intergovernmental revenues described above from general revenues to capital grants and contributions. Approximately $2.5 million of the increase in operating. grants and contributions is due to the reclassification of Highway User Revenue Fees described above combined with other increases in operating grants. These increases are offset by a decrease in charges for services revenues of $2.4 million due to decreased residential building permits, building planning and review fees, engineering fees, etc. These decreases are due to the economic slow down and reduced building activity. The following table presents the cost of the nine major Town functional activities. The table also shows each function's net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and Town's taxpayers by each of these functions. • Regular Council Meeting -February 3, 2009 -Page 39 of 263 12 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD8cA) . YEAR ENDED DUNE 30, 2008 Year Ended June 30, 2008 Year Ended June 30, 2007 Total Net (Expense)/ Total Net (Expense)/ Expenses Revenue Expenses Revenue Governmental Activities General government $ 12,925,376 $ (10,498,554) $ 10,133,839 $ (8,098,875) Public safety 11,215,325 (10,713,699) 9,187,308 (8,800,330) Highways and streets 10,268,874 (4,444,547) 15,898,158 (11,544,196) Health and welfare 129,757 (87,575) - - Economic and community development 8,642,906 4,024,865 3,817,047 $ 1,172,660 Culture and recreation 3,977,850 (2,672,523) 3,557,473 (1,957,648) Interest on long-term debt 2,499,797 (2,499,797) 2,296,864 (2,296,864) Total 49,659,885 (26,891,830) 44,890,689 (31,525,253) Business-Type Activities Water 3,275,888 2,474,994 1,028,212 5,217,652 Airport 1,196,196 3,126,581 3,227,101 2,689,911 Total $ 4,472,084 $ 5,601,575 $ 4,255,313 $ 7,907,563 • The cost of all governmental activities this year was $49.6 million and the cost of all • business-type activities this year was $4.5 million. The increases are primarily due to a higher level of services delivered to meet the growing community. • Federal and State governments, contributions and charges for services subsidized certain programs with grants, contributions and other local revenues of $8.2 million. • Net cost of governmental activities ($26.9 million) was financed by general revenues, which are made up of primarily sales taxes totaling $38.8 million. The following graph shows the functional revenues and expenses of the governmental activities in order to demonstrate the extent to which the governmental functions produce direct revenues to offset related program costs. It should be noted that this graph is not intended to represent a full allocation to these functions. As described above, expenses not covered by direct program revenues are covered by the Town's general revenues which consist primarily of taxes and unrestricted State shared revenues. In governmental activities, the functional revenues of $22.8 million are 46.0 percent of expenses for fiscal year 2008, up from 29.8 percent a year earlier. • Regular Council Meeting -February 3, 2009 -Page 40 of 263 13 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED TUNE 30, 2008 Culture and recreation Economic and community development Health and welfare Highways and streets Public safety General government Governmental Activities Expenses and Program Revenues 13 I I $4.0 I $12.7 $8.6 $- $0.1 I I 5.8 $10.3 0.5 $11 2 I 2.4 $iZ.9 $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 ^ Revenues ^ E~q~enses As seen on the following graphs, the largest revenue source for the Town's governmental activities is sales taxes at 44.2 percent followed by capital grants and contributions at 23.7 percent and State shared revenues at 12.0 percent. The Town's largest expense category is general government at 26.0 percent, followed by public safety at 22.6 percent and highways and streets at 20.7 percent. • • Regular Council Meeting -February 3, 2009 -Page 41 of 263 14 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED DUNE 30, 2008 Governmental Activities Revenues by Type Charges for Miscellaneous services revenues 5.6% 0.7% ~ ~~ Investment income 4.9% State shared revenues 12.0% Franchise taxes 0.5% property taxes 0.7% r ~J Operating grants and contributions 7.6% Capital grants --and contributions 23.7% Sales taxes 44.2% Governmental Activities Expenses by Function Culture and recreation Economic and 8.0% community development ,,~. r 17.4°k fi ~ '`-, i~ Health and <<_ :_ .; welfare 0.3% Highways andJ streets 20.7% Business-type Activities Interest on long- term debt 5.0% General government 26.0% Public safety 22.6% Business-type activities increase the Town's net assets by $5.9 million for fiscal year ended • June 30, 2008, accounting for 33.3 percent of the Town's growth in net assets. The overall increase in net assets during the year is primarily attributable to capital grants and contributions. Regular Council Meeting -February 3, 2009 -Page 42 of 263 15 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED ]UNE 30, 2008 • Charges for services increased very modestly due primarily to the slow down. in the economy and reduced number of new water connections. Capital grants and contributions decreased by $2.2 million or 24.2 percent from a year earlier due to reduced development impact fees and reduced capital grant revenues due to the timing of capital projects at the Airport. Business-type Activities Expenses and Program Revenues Airport Water ^ Revenues ^ 6cpenses The Town's largest overall business-type activity is the Water Utility with $3.3 million in expenses and $5.8 million in program revenues during the year, followed by the Airport with $1.2 million in expenses and $4.3 million in program revenues. • Business-type Activities Revenues by Type Miscellaneous r Investment income 1.1% Charges for --vices ..2% Capital grants ,.nd contributions 67.3% Regular Council Meeting -February 3, 2009 -Page 43 of 263 16 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 TOWN OF MARANA, ARIZONA . MANAGEMENT'S DISCUSSION AND ANALYSIS (MD8cA) YEAR ENDED JUNE 30, 2008 FINANCIAL ANALYSIS OF THE TOWN'S FUNDS As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of the Town's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the Town's net resources available for spending at the end of the fiscal year. The financial performance of the Town as a whole is reflected in its governmental funds. As of June 30, 2008, the Town's governmental funds reported a combined fund balance. of $42.3 million, of which $41.7 million is unreserved and undesignated .and therefore available for spending at the Town's discretion. • The General Fund, which is the principal operating fund of the Town, had a fund balance of $20.4 million. Revenues decreased by $2.3 million or 6.5 percent from the previous fiscal year. The decrease in revenues is primarily attributable to a $2.2 million or 48.9 percent decrease in licenses, fees and permits due to the severe economic slowdown and reduced building activity. Sales tax revenues which comprise almost 60 percent of the General Fund's ongoing operating revenues, decreased by $1.0 million or 4.8 percent from the year earlier. These decreases in revenues were offset by increases of $0.9 million in other revenue categories like fines, fees and forfeitures and miscellaneous revenue. The Highway User Revenue Fund ending fund balance of $0.5 million reflects a $0.3 million increase over the previous fiscal year. This fund is required to account for the State allocation of gasoline taxes and other state revenues shared with local governments that are required to be used for transportation purposes. Revenues increased slightly by $32,046 or 1.6 percent from the year earlier. The Transportation Fund had a fund balance of $10.1 million which reflected a decrease of $7.1 million from a year earlier. This decrease is primarily due to increased capital project expenditures combined with decreased contracting sales tax revenues which are the primary funding source for future road infrastructure in this fund. Contracting sales tax revenues in this fund were down $2.4 million or 24.2 percent from the prior year due to the slowdown in building activity. • The South Benefit Area Impact Fee Fund balance of $5.4 million reflects a decrease of $3.7 million due to a combination of decreased revenue collections of the south benefit area Regular Council Meeting -February 3, 2009 -Page 44 of 263 17 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD8cA) YEAR ENDED TUNE 30, 2008 transportation impact fee combined with increased expenditures on the Twin Peaks interchange project for which the transportation benefit fee is collected. Other Capital Projects fund had a fund balance at the year of the year of $(1.9) million and reflects a $22.7 million decrease primarily due usage of remaining bond proceeds for the Tangerine Farms Road capital project. The deficit balance in the find is primarily due to the timing of revenue collections from cost reimbursement capital projects within the fund. The deficit balance will be eliminated once the revenues are received in fiscal year 2008- 09. Proprietary funds. The proprietary funds in the financial statements are prepared on the same measurement focus and accounting basis as the government-wide financial statements, but they provide more detail since each major enterprise fund is presented discretely. Of the total proprietary funds net assets of $32.4 million, $32.3 million comprised the funds' investment in capital assets, $1.3 million was restricted for capital projects and unrestricted net assets of $(1.2) million. The factors concerning the finances of these funds, as well as the changes in net assets, have been addressed previously in the discussion of the Town's business-type activities. BUDGETARY HIGHLIGHTS The Town's annual adopted budget established the legal level of expenditure control. Budgetary comparison statements are required for the General Fund and all major special revenue funds. These statements compare the original budget, the budget as amended throughout the year, and the actual revenues and expenditures. Budgetary schedules for other governmental funds are also presented in this report as other supplementary information. The following are significant current year transactions that explain the budget variances: • General Fund -License, fees and permit and charges for services revenues were below expectations due to the decline in the residential development market. • Highway User Revenue Fund -The variance in intergovernmental revenues was primarily attributable to decreased fuel consumption due to increased gasoline prices. • South Benefit Area Impact Fee Fund -The variance in contributions revenue is due to decreased impact fee collections as discussed earlier in this analysis. C • Transportation Fund -The sales tax variance is due to the reduction in contracting • sales tax revenues which are the primary source of revenue for this fund. The Regular Council Meeting -February 3, 2009 -Page 45 of 263 18 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) • YEAR ENDED TUNE 30, 2008 decrease is attributable to the slowdown in the economy and decreased. building activity. • Other Capital Projects Fund -The variance in intergovernmental revenues is due to the level of capital projects funded by other governmental sources. Amendments to the adopted budget may occur throughout the year between departments within the General Fund and between funds in all other funds in a legally permissible manner (see Note 3 -Budgetary Control). Budget adjustments between departments in the General Fund did occur. However, none of the amendments were significant. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets. As of June 30, 2008, the Town had .invested $282.0 million in governmental and business-type capital assets (net of accumulated depreciation). Total depreciation expense for the year was $10.9 million, with $10.0 million attributed to governmental activities and $0.9 million to business-type activities. • • The following schedule presents capital asset balances for the fiscal years ended June 30, 2008 and June 30, 2007. Additional information on the Town's capital assets can be found in Note 6. Land Water rights Construction in progress Buildings and improvements Machinery and equipment Infrastructure Less: Accumulated depreciation Total Governmental Activities As of As of June 30, 2008 June 30, 2007 $ 3,491,030. $ 3,491,030 81,688,306 42,012,605 17,134,558 159,017,599 (53,666,069) $ 249,678,029 32,590,723 41,786,107 15,634,383 157,187,070 (43,712,176) $ 206,977,137 Business-tvoe Activities As of As of June 30, 2008 June 30, 2007 $ 1,614,924 $ 221,810 543,696 543,696 3,598,748 6,232,398 30,755,565 21,826,244 404,059 398,976 39,388 54,737 (4,614,925) (3,759,230) $ 32,341,455 $ 25,518,631 Total As of As of June 30, 2008 June 30, 2007 $ 5,105,954 $ 3,712,840 543,696 543,696 85,287,054 38,823,121 72,768,170 63,612,351 17,538,617 16,033,359 159,056,987 157,241,807 (58,280,994) (47,471,406) $ 282,019,484 $ 232,495,768 Regular Council Meeting -February 3, 2009 -Page 46 of 263 19 TOWN OF MARANA, ARIZONA MANAGEMENT'S DISCUSSION AND ANALYSIS (MD8eA) YEAR ENDED JUNE 30, 2008 CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl'd) Debt Administration. At year-end, the Town had $66.4 million in long-term obligations outstanding with $3.9 million due within one year. During the year, the Gladden Farms Community Facility District (a component unit) issued $3.1 million in general obligation debt to acquire portions of roadway and other district infrastructure which is secured by property taxes within the benefiting district. The following table presents a summary of the Town's outstanding bonded debt for the fiscal years ended June 30, 2008 and June 30, 2007. Additional information on the Town's long-term obligations can be found in Note 7. General obligation bonds Revenue bonds Special assessment bonds Compensated absences Notes payable Capital Lease Total Governmental Activities 2008 2007 $ 8,385,000 $ 5,355,000 29,240,000 30,460,000 25,774,000 25,774,000 926,342 741,765 1,900,000 2,900,000 115,578 135,210 66,340,920 65,365,975 Business-type Activities 2008 2007 $ - $ - 64,196 27,962 - 8,800 $64,196 $36,762 Total 2008 2007 $ 8,385,000 $ 5,355,000 29,240,000 30,460,000 25,774,000 25,774,000 990,538 769,727 1,900,000 2,908,800 115,578 135,210 $66,405,116 $65,402,737 ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES The slowdown in the national economy and, in particular, the slowdown in the housing market in Arizona, is having a direct impact on the Town. Revenues from building permits, planning fees and construction sales taxes have slowed significantly. As a result, the Town adopted a fiscal year 2008-09 budget which anticipates reduced sales tax revenues and building related fees. The Town's multi-year revenue forecasts project flat revenue growth through at least fiscal year 2009-10. These revenue projections will require a focus on the maintenance if essential services and programs in the development of future budgets. CONTACTING THE TOWN'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the Town's finances and to demonstrate the Town's accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Department, Town of Marana, Arizona at 11555 West Civic Center Drive, Marana, Arizona 85653, or visit www.marana.com. • • • Regular Council Meeting -February 3, 2009 -Page 47 of 263 20 • BASIC FINANCIAL STATEMENTS • • Regular Council Meeting -February 3, 2009 -Page 48 of 263 21 • ~ ~ :\ TOWM OF MARANA Regular Council Meeting -February 3, 2009 -Page 49 of 263 • • 22 GOVERNMENT-WIDE FINANCIAL STATEMENTS • • Regular Council Meeting -February 3, 2009 -Page 50 of 263 23 • r~ ~~ • Regular Council Meeting -February 3, 2009 -Page 51 of 263 24 TOWN OF MARANA, ARIZONA STATEMENT OF NET ASSETS • ]UNE 30, 2008 Governmental Business-type Activities Activities Total ASSETS Current assets: Cash and cash equivalents $ 40,655,936 $ 1,382,687 $ 42,038,623 Taxes receivable 1,659 ~ - 1,659 Accounts receivable 117,258 429,094 546,352 Interest receivable 213,166 1,477 214,643 Due from other governments 13,630,043 1,823,045. 15,453,088 Internal balances 2,144,838 (2,144,838) - Prepaid items 298,568 431,854 730,422 Total current assets 57,061,468 1,923,319 58,984,787 Noncurrent assets: Restricted cash and investments 2,379,319 - 2,379,319 Deferred bond charges 2,256,798 - 2,256,798 Capital assets not depreciated 85,179,336 5,757,368 90,936,704 Capital assets (net of depreciation) 164,498,693 26,584,087 191,082,780 Total noncurrent assets 254,314,146 32,341,455 286,655,601 Total assets 311,375,614 34,264,774 345,640,388 LIABILITIES Current liabilities: Accounts payable 10,656,398 1,344,459 12,000,857 Accrued payroll and employee benefits 420,582 23,009 443,591 Unearned revenue 890,598 - 890,598 Deposits held for others 89,879 377,165 467,044 • Due to other government 59,575 59,575 Compensated absences 741,074 51,357 792,431 Capital leases 40,515 - 40,515 Notes payable 1,000,000 - 1,000,000 General obligation bonds -CFD 50,000 - 50,000 Special assessment bonds -TRFID 951,000 - 951,000 Revenue bonds 1,055,000 - 1,055,000 Accrued interest payable 928,526 - 928,526 Total current liabilities 16,823,572 1,855,565 18,679,137 Noncurrent liabilities: Compensated absences 185,268 12,839 198,107 Capital leases 75,063 75,063 Notes payable 900,000 - 900,000 Deferred loss on refunding (330,805) - (330,805) Deferred bond premium 198,339 - 198,339 General obligation bonds -CFD 8,335,000 - 8,335,000 Special assessment bonds -TRFID 24,823,000 - 24,823,000 Revenue bonds 28,185,000 - 28,185,000 Total non-current liabilities 62,370,865 12,839 62,383,704 Total liabilities 79,194,437 1,868,404 81,062,841 NET ASSETS Invested in capital assets, net of related debt 184,395,917 32,341,455 216,737,372 Restricted for: Grants 1,192,511 - 1,192,511 Highways and streets 448,889 - 448,889 Capital projects 23,604,258 1,297,127 24,901,385 Debt service 219,381 - 219,381 . Unrestricted 22,320,221 (1,242,212) 21,078,009 Total net assets $ 232,181,177 $ 32,396,370 $ 264,577,547 Regular Council Meeting -~Gr ~~~~~aggi~~tements are an integral part of this statement. 25 TOWN OF MARANA, ARIZONA STATEMENT OF ACTIVITIES YEAR ENDED ]UNE 30, 2008 Program Revenues Operating Capital Grants Charges for Grants and and Functions/Programs Expenses Services Contributions Contributions Primary Government Governmental activities: General government $ 12,925,376 $ 898,587 $ 1,528,235 $ - Public safety 11,215,325 - 501,626 - Highways and streets 10,268,874 - 2,224,312 3,600,015 Health and welfare 129,757 - 42,182 - Economic and community. development 8,642,906 2,379,875 315,424 9,972,472 Culture and recreation 3,977,850 199,992 87,902 1,017,433 Interest on long-term debt 2,499,797 - ~{ - - Total governmental activities 49,659,885 3,478,454 4,699,681 14,589,920 Business-type activities: Water Airport Total business-type activities Total primary government 3,275,888 2,967,670 - 2,783,482 1,196,196 221,489 - 4,101,288 4,472,084 3,189,159 - 6,884,770 $ 54,131,969 $ 6,667,613 $ 4,699,681 $ 21,474,690 General revenues: Taxes: Sales taxes Property taxes Franchise taxes State shared revenues, unrestricted Investment income Miscellaneous Transfers Total general revenues and transfers Changes in net assets Net assets, beginning of year as restated Net assets, end of year The notes to the financial statements are an integral part of this statement. Regular Council Meeting -February 3, 2009 -Page 53 of 263 • • • 26 • • Net (Expense) Revenue and Changes in Net Assets Governmental Business-type Activities Activities Totals $ (10,498,554) $ - $ (10,498,554) (10,713,699) - (10,713,699) (4,444,547) - (4,444,547) (87,575) - (87,575) 4,024,865 (2,672,523) (2,499,797) (26,891,830) 4,024,865 (2,672,523) (2,499,797) (26,891,830) - 2,475,264 2,475,264 - 3,126,581 3,126,581 - 5,601,845 5,601,845 (26,891,830) 5,601,845 (21,289,985) 27,172,921 - 27,172,921 460,001 - 460,001 308,617 - 308,617 7,396,678 - 7,396,678 3,023,965 109,834 3,133,799 458,995 37,093 496,088 (159,998) 159,998 - 38,661,179 306,925 38,968,104 11,769,349 5,908,770 17,678,119 220,411,828 26,487,600 246,899,428 $ 232,181,177 $ 32,396,370 $ 264,577,547 Regular Council Meeting -February 3, 2009 -Page 54 of 263 27 • Regular Council Meeting -February 3, 2009 -Page 55 of 263 28 • FUND FINANCIAL STATEMENTS C • Regular Council Meeting -February 3, 2009 -Page 56 of 263 29 TOWN OF MARANA, ARIZONA BALANCE SHEET -GOVERNMENTAL FUNDS TUNE 30, 2008 • South Benefit Highway User Area Impact General Fund Revenue Fees ASSETS Cash and cash equivalents Taxes receivable Accounts receivable Interest receivable Due from other governments Due from other funds Prepaid items Restricted cash and investments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued payroll and employee benefits Due to other funds Deposits held for others Deferred revenue Bonds payable Bond interest payable Total liabilities Fund balances (deficits): Reserved for: Prepaid items Debt service Unreserved reported in: General fund Special revenue funds Capital projects funds Total fund balances Total liabilities and fund balances $ 11,850,832 $ 921,175 $ 5,531,436 103,298 - - 78,182 - 29,193 3,369,906 164,857 - 9,416,860 - - 286,459 - - 119,819 - - $ 25,225,356 $ 1,086,032 $ 5,560,629 $ 3,941,394 $ 637,143 $ 169,128 420,582 - - 89,879 - - 358,736 - - 4,810, 591 637,143 169,128 286,459 - - 20,128,306 - - - 448,889 - - - 5,391,501 20,414,765 448,889 5,391,501 $ 25,225,356 $ 1,086,032 $ 5,560,629 The notes to the financial statements are an integral part of this statement. Regular Council Meeting -February 3, 2009 -Page 57 of 263 • 30 • • Non-Major Total Other Capital Governmental Governmental Transportation Projects Funds Funds $ 10,729,488 $ 26,234 $ 11,596,771 $ 40,655,936 - - 1,659 1,659 - - 13,960 117,258 60,310 18,133 27,348 213,166 1,506,075 6,836,802 1,752,403 13,630,043 172,877 - - 9,589,737 - 10,984 1,125 298,568 - - 2,259,500 2,379,319 $ 12,468,750 $ 6,892,153 $ 15,652,766 $ 66,885,686 $ 2,390,064 $ 2,794,915 $ 723,754 $ 10,656,398 - - - 420,582 - 3,665,572 3,779,327 7,444,899 - - - 89,879 - 2,349,755 1,782,122 4,490,613 - 575,000 575,000 - 11,937 916,589 928,526 2,390,064 8,822,179 7,776,792 24,605,897 - 10,984 1,125 298,568 - - 244,641 244,641 C] - - - 20,128,306 - - 1,192,512 1,641,401 10,078,686 (1,941,010) 6,437,696 19,966,873 10,078,686 (1,930,026) 7,875,974 42,279,789 $ 12,468,750 $ 6,892,153 $ 15,652,766 $ 66,885,686 Regular Council Meeting -February 3, 2009 -Page 58 of 263 31 • rr ® r Y V V Y~ TQWN dF MARANA Regular Council Meeting -February 3, 2009 -Page 59 of 263 • • 32 TOWN OF MARANA, ARIZONA . RECONCILIATION OF THE BALANCE SHEET -GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS YEAR ENDED TUNE 30, 2008 Total governmental fund balances Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmen~l funds: $ 42,279,789 Governmental capital assets $ 303,344,098 Less accumulated depreciation (53,666,069) 249,678,029 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds: Compensated absences (926,342) Capital Lease (115,578) Notes payable (1,900,000) Revenue bonds payable (28,715,000) General obligation bonds payable (8,335,000) Special assessment bonds (25,774,000) (65,765,920) ., .~ Deferred items related to the issuance of bonds are amortized over the life of the associated issue in the government-wide statements Bond Premium (198,339) Bond Discount 93,120 Bond issue costs 2,162,236 Deferred loss on refunding 330,805 2,387,822 Certain revenues earned, but not received within 60 days of year-end, are deferred on the governmental financial statement, but are recognized as revenue on the government-wide statements Properly tax revenue Intergovernmental revenue 1,442 .3,600,015 3,601,457 Net assets of governmental activities The notes to the financial statements are an integral part of this statement. $ 232,181,177 Regular Council Meeting -February 3, 2009 -Page 60 of 263 33 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND, CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS • YEAR ENDED DUNE 30, 2008 Highway User General Fund Revenue Revenues: Sales taxes $ 19,651,082 $ - Property taxes - - Intergovernmental 7,531,634 2,035,849 Licenses, fees & permits 2,307,878 - Fines, forfeitures & penalties 716,983 - Charges for services 979,797 - Lease income 987,107 - Contributions 60,788 - Investment income 569,125 - Miscellaneous 387,187 - Total revenues 33,191,581 2,035,849 Expenditures: Current - General government 8,239,993 - Public safety 10,181,339 - Highways and streets 2,303,668 1,021,490 Health and welfare 129,757 - Economic and community development 4,537,988 - Culture and recreation 3,266,690 - Capital outlay 3,111,517 693,193 Debt service - Principal retirement - - Interest and fiscal charges - - Total expenditures 31,770,952 1,714,683 Excess (deficiency) of revenues over expenditures 1,420,629 321,166 Other financing sources (uses): Face value of bonds issued - - Transfers in - - Transfers out (2,096,763) - 7ota1 other financing sources (uses) (2,096,763) - Changes in fund balances (676,134) 321,166 Fund balances, beginning of year, as restated 21,090,899 127,723 Fund balances (deficits), end of year $ 20,414,765 $ 448,889 Regular ~T~id~~t~h~o-,~'r~~~~~~~~i are an integral part of this statement. • • 34 • South Benefit Non-Major Total Area Impact Other Capital Governmental Governmental Fees Transportation Projects Funds Funds $ - $ 7,511,231 $ - $ 10,608 $ 27,172,921 - - - 460,001 460,001 - - 7,223,051 2,489,844 19,280,378 - - - 1,033,526 3,341,404 - - - 91,087 808,070 - - - - 979,797 - - - - 987,107 168,637 470,361 13,470 743,498 1,456,754 392,110 588,558 944,494 530,359 3,024,646 - 70,145 - 26,220 483,552 560,747 8,640,295 8,181,015 5,385,143 57,994,630 - 1,384,444 - 374,679 9,999,116 - - - 318,885 10,500,224 - 472,687 18,353 80,939 3,897,137 _ - = - 129,757 • 33,027 338,958 4,909,973 - - - - 3,266,690 4,244,028 13,787,912 28,560,641 6,815,693 57,212,984 - 38,591 - 2,090,229 2,128,820 - 6,104 12,859 3,101,596 3,120,559 4,244,028 15,722,765 28,591,853 13,120,979 95,165,260 (3,683,281) (7,082,470) (20,410,838) (7,735,836) (37,170,630) - - - 3,075,000 3,075,000 - - - 4,195,246 4,195,246 - - (2,258,481) - (4,355,244) - - (2,258,481) 7,270,246 2,915,002 (3,683,281) (7,082,470) (22,669,319) (465,590) (34,255,628) 9,074,782 17,161,156 20,739,293 8,341,564 76,535,417 $ 5,391,501 $ 10,078,686 $ (1,930,026) $ 7,875,974. $ 42,279,789 • Regular Council Meeting -February 3, 2009 -Page 62 of 263 35 • • L Regular Council Meeting -February 3, 2009 -Page 63 of 263 36 TOWN OF MARANA, ARIZONA • RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED ]UNE 30, 2008 Net changes in fund balances -total governmental funds $ (34,255,628) Amounts reported for governmental activities in the Statement of Activities are different because Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives depreciation expense. Expenditures for capitalized assets $ 52,688,717 Less current year depreciation (9,962,376) 42,726,341 Some items of the government funds are sources and uses of current financial resources and therefore are not reported as revenues or expenses in the Statement of Activities. Proceeds from bonds issued (3,075,000) Bond issuance costs 234,062 (2,840,938) • Repayment of debt principal are expenditures in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Assets. Capital lease principal retirement 38,860 Note principal retirement 1,000,000 Revenue bond principal retirement 1,090,000 2,128,860 Some revenues and expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as revenues or expenditures in governmental funds. Accrued interest 716,349 Loss on disposal of asset (25,449) Intergovernmental revenue 3,600,015. Compensated absences (184,577) Amortization of deferred charges (95,624) 4,010,714 Change in net assets in governmental activities . The notes to the financial statements are an integral part of this statement. Regular Council Meeting -February 3, 2009 -Page 64 of 263 $ 11,769,349 37 TOWN OF MARANA, ARIZONA STATEMENT OF NET ASSETS PROPRIETARY FUNDS TUNE 30, 2008 ASSETS Current assets: Cash and cash equivalents Accounts receivable Interest receivable Due from governments Prepaid items Total current assets Noncurrent assets: Capital assets not depreciated Capital assets (net of depreciation) Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Accrued payroll and employee benefits Compensated absences Due to other funds Deposits held for others Due to other governments Total current liabilities Noncurrent liabilities: Compensated absences Total non-current liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for capital projects Unrestricted Total net assets Enterprise Funds Water .Airport Total $ 767,297 380,656 1,477 431,464 1,580,894 1,936,199 10,984,051 12,920,250 14,501,144 497,658 19,136 41,305 377,165 59,575 994,839 10,326 10,326 1,005,165 12,920,250 1,297,127 (721,398) $ 13,495,979 $ 615,390 48,438 1,823,045 390 2,487,263 3,821,169 15,600,036 19,421,205 21,908,468 846,801 3,873 10,052 2,144,838 3,005,564 2,513 2,513 3,008,077 $ 1,382,687 429,094 1,477 1,823,045 431,854 4,068,157 5,757,368 26,584,087 32,341,455 36,409,612 1,344,459 23,009 51,357 2,144,838 377,165 59,575 4,000,403 12,839 12,839 4,013,242 19,421,205 32,341,455 - 1,297,127. (520,814) (1,242,212) $ 18,900,391 $ 32,396,370 • • Regular Coun~iR~~~u~9~#~'!~~e~nts are an integral part of this statement. 38 TOWN OF MARANA, ARIZONA STATEMENT OF REV ENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED ]UNE 30, 2008. Enterprise Funds Water Airport Total Operating revenues: Charges for services $ 2,717,562 $ 221,489 $ 2,939,051 Lease income 250,108 - 250,108 Miscellaneous 26,046 11,047 37,093 Total operating revenues 2,993,716 232,536 3,226,252 Operating expenses: Personnel costs 960,659 114,393 1,075,052 Contractual services 854,052 347,401 1,201,453 Commodities 878,296 50,102 928,398 Other 270,436 122,701 393,137 Depreciation expense 312,445 561,599 874,044 Total operating expenses 3,275,888 .1,196,196 4,472,084 Operating loss Nonoperating revenues: • Investment income Intergovernmental revenues Developer impact fees Total nonoperating revenues (282,172) (963,660) (1,245,832) 109,426 408 109,834 - 4,101,288 4,101,288 459,620 - 459,620 569,046 4,101,696 4,670,742 Income before capital contributions and transfers 286,874 3,138,036 3,424,910 Capital contributions Transfers in Transfers out Changes in net assets 2,323,862 - 2,323,862 - 398,575 398,575 (238,577) - (238,577) 2,372,159 3,536,611 5,908,770 Total net assets, beginning of year Total net assets, end of year • 11,123,820 15,363,780 26,487,600 $ 13,495,979 $ 18,900,391 $ 32,396,370 Regular Courpy~gtbr~i!f~ACi~bSC~t~~~ntS are an integral part of this statement. 39 TOWN OF MARANA, ARI20NA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED ]UNE 30, 2008 Water Airpon: Total Cash flows from operating activities: Received from customers $ 2,669,835 $ 218,703 $ 2,888,538 Payments to suppliers (2,270,496) 163,417 (2,107,079) Payments to employees (931,762) (112,558) (1,044,320) Miscellaneous revenues 276,154 11,047 287,201 Net cash provided (used) by operating activites (256,269) 280,609 24,340 Cash flows from noncapital financing activities Business-type Activities Enterprise Funds r Interfund borrowing - 1,642,798 1,642,798 Transfers in - 398,575 398,575 Transfers out (238,577) - (238,577) Net cash provided (used) for noncpaital and related financing activities (238,577) 2,041,373 1,802,796 Cash flows from capital and related financing activites Capital grants received - 2,364,453 2,364,453 Development fees received 459,620 - 459,620 Principal paid on long-term debt (8,800) - (8,800) Acquisition and construction (1,343,218) (4,071,452) (5,414,670) Net cash provided (used) for capital and related financing activities Cash flows from investing activities Investment income Net cash provided by investing activities Net change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation Change in assets and liabilities: (Increase) decrease in accounts receivable, net (Increase) decrease in prepaid assets Increase (decrease) in accounts payable Increase (decrease) in accrued wages and benefits Increase (decrease) in due to other governments Net cash provided (used) by operating activities (892,398) (1,706,999) (2,599,397) 107,949 407 108,356 107,949 407 108,356 (1,279,295) 615,390 (663,905) 2,046,592 - 2,046,592 $ 767,297 $ 615,390 $ 1,382,687 $ (282,172) $ (963,660) $ (1,245,832) 312,445 561,599 874,044 (132,856) (2,786) (135,642) (7,121) 1,280 (5,841) (260,591) 682,341 421,750 4,958 (4,352) 606 59,575 - 59,575 $. (256,269) $ 280,609 $ 24,340 • Regular Council MeetingT-~e~l'BfaPys3t2 ~%~f $~3tements are an integral part of this statement. 40 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing government accounting and financial reporting principles. A. Reporting Entity The Town. of Marana, Arizona (the Town) was incorporated on March 21, 1977, under the provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town operates under acouncil-mayor form of government. All funds and entities related to the Town that are controlled by the Mayor and Council are included in the annual financial report. Control is determined on the basis of budget adoption, taxing authority, and the ability to .significantly influence operations and accountability for fiscal matters. The Town provides a full range of services including general government, development and planning services, legal, public safety, public works, and parks and recreation services. In accordance with generally accepted accounting principles, these financial statements • present the Town and its component units, the Town of Marana Municipal Property Corporation (MMPC), the Gladden Farms Community Facilities District (GFCFD), the Vanderbilt Farms Community Facilities District (VFCFD) and the Tangerine Farms Road Improvement District (TFRID). The MMPC, GFCFD, VFCFD and TFRID are blended with the Town in these financial statements as all four were established by the Town in order to fund the debt incurred to finance the purchase of the Town hall, various capital projects, and capital assets used by the water fund. In addition, the MMPC only provides services to the Town. The MMPC, GFCFD, VFCFD and TFRID component units each have a June 30 year- end and are included in the 1997 Bond, 2003 Bond, and 2004 Bond Debt Service Funds, the Gladden Farms Capital Projects and Debt Service Funds, the Vanderbilt Farms Capital Projects and Debt Service Funds, and the Other Capital Projects Funds, respectively. Separate financial statements of the MMPC, the. GFCFD, the VFCFD and the TFRID are not prepared on a stand-alone basis. B. Basis of Presentation The basic financial statements include both .the government-wide statements and fund- based financial statements. The government-wide statements :focus on the Town as a whole, while the fund-based statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the usefulness of the information. Government-wide Financial Statements The government-wide financial statements (i.e. the statement of net assets and the • statement of activities) present financial information about the Town as a whole. The reported information includes all of the activities of the Town and its component units. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmental and business-type activities Regular Council Meeting -February 3, 2009 -Page 6 of 263 41 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS ]UNE 30, 2008 . NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) of the Town. Governmental activities normally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which are financed in whole or part by fees charged to external parties. The statement of activities demonstrates the degree to which the direct expenses of a given function of the Town's governmental activities or segment of its business-type activities are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The Town does not currently have an indirect cost allocation system. However, the General Fund does allocate administrative charges to the Enterprise funds to support general services used by those funds (line purchasing, accounting, administration, etc.) These fees are included in the expense column on the Statement of Activities. Program revenues include 1) charges to customers or applicants .who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, investment income, and other items not included among program revenues are reported instead as general revenues. Proprietary funds distinguish operating revenues and expenses from non-operating items. • Operating revenues and expenses result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Water Utility and Airport funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Generally, the effect of interfund activity has been eliminated from the government-wide financial statements to minimize the double counting of internal activities. However, charges for interfund services provided and used are not eliminated if doing so would .distort the direct costs and program revenues reported by the departments concerned. Fund Financial Statements Fund statements provide information about the Town's funds, including blended component units. Separate statements are presented for the governmental and proprietary fund categories. The- emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major funds. The Town reports the following major governmental funds: General Fund -This 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. • Regular Council Meeting -February 3, 2009 -Page 69 of 263 42 TOWN OF MARANA, ARIZONA • NOTES TO FINANCIAL STATEMENTS 7 U N E 30, 2008 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) Highway Users Revenue Fund -This fund accounts for the maintenance and construction of roads, streets and highways as well as payment of debt service associated with road construction. South Benefit Area Impact Fees -This fund accounts for the financing and construction of the Twin Peaks Interchange Project. Transportation -This fund accounts for the financing and construction of transportation capacity improvement projects. Other Capital Projects Fund -This fund accounts for the financing and construction of roads and other infrastructure associated with other capital improvements as well as the Tangerine Farms Road Improvement District. The Town reports the following major proprietary funds: Water Fund -This fund is used to account for the financing and operation of the Water • Utility. Airport Fund -This fund is used to account for the financing and .operation of the Marana Airport. C. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned, including unbilled water services which are accrued, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon all eligibility requirements imposed by the grantor or provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service resources are provided during the current year for payment of long-term debt principal and interest due early in the following year (not to exceed one month) and, therefore, the expenditures and related liabilities have been recognized. Compensated absences are recorded only when payment is due. Regular Council Meeting -February 3, 2009 -Page 70 of 263 43 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) Sales taxes, licenses and permits, charges for services, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not susceptible to accrual because generally they are not measurable until received in cash. The Town reports deferred revenue on its governmental funds balance sheet. Deferred revenues arise when potential revenue does not meet the 'measurable" and "available" criteria for recognition in the current period. Receivables that will not be collected within the available period have also been reported as deferred revenue on the governmental fund financial statements. In subsequent periods, when both the revenue recognition criteria are met, or when the Town has the legal claim to the resources, the liability for deferred revenue is removed from the governmental funds balance sheet and revenue is recognized. Proceeds of long-term debt and acquisitions under capital lease agreements are reported as other financing sources. When both restricted and unrestricted resources are available for use, it is the Town's policy • to use restricted resources first, then unrestricted resources as they are needed. Additionally, the Town funds certain programs by a combination of grants and general revenues. The Town applies grant resources to such programs before using general revenues. The Town as adopted GASB Statement No. 20, "Accounting and Financial Reporting for Proprietary Fund and Other Governmental Entities That Use Proprietary Accounting" for its business-type activities and enterprise funds. The Town has elected to apply all applicable GASB pronouncements as well as Financial Accounting Standards Board (°FASB'~ Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins issued prior to December 1, 1989, to the extent that those standards do not conflict with or contradict guidance of the GASB. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The Town has elected not to follow subsequent private-sector guidance. D. Cash and Cash Equivalents For the purposes of the statement of cash flows, the Town considers all highly liquid investments (including the funds' participation in the investment pool account, and appropriate restricted assets) to be cash equivalents. Individual fund investments with a maturity of three months or less when purchased are considered as cash equivalents. Regular Council Meeting -February 3, 2009 -Page 71 of 263 44 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS • JUNE 30, 2008 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) E. Investments Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer's Local Government Investment .Pool, interest-bearing savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; bonds or other. obligations of the U.S. government that are guaranteed as to principal and interest by the U.S. government; and bonds of the State of Arizona counties, cities, towns, school districts, and special districts as specified by statue. The State Board of Investment provides oversight for the State Treasurer's pools. The fair value of a participant's position in the pool approximates the value of that participant's pool shares Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and participating interest contracts with a remaining maturity of one year or less at time of purchase are stated at amortized cost. All investments are stated at fair value. • F. Restricted Assets The trust indentures executed for the entire bond series issued require all cash and investments for each bond series to be held on deposit by the trustee/fiscal agents. These assets are restricted for payment of interest and trustee fees associated with the bond issues, retirement of principal balances, and to finance various capital projects. In addition, the State of Arizona required that assets obtained at the completion of criminal proceedings by the Town's police department be given to Pima County for custodial purposes. These assets are restricted for expenses that will enhance the Town's ability to conduct police investigations. G. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed in the government-wide financial statements. Prepaid items are recorded as expenditures when purchased in the fund financial statements and are offset by a reserve of fund balance. H. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements • outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All trade and other receivables are shown net of an allowance for uncollectible amounts. Regular Council Meeting -February 3, 2009 -Page 72 of 263 45 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 • NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) I. Interfund Activity Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund statements ar•e reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses in proprietary funds. ]. Capital Assets Capital assets, including public domain infrastructure such as roads, bridges, curbs and sidewalks, lighting system, water distribution system and other assets that are immovable and of value to the Town, are defined as assets with an initial individual cost of $5,000 or more and an estimated useful life of more than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are valued at estimated fair value on the date donated. Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. No long-term assets or depreciation are shown in the governmental funds financial statements. • The Town has chosen not to apply the modified approach to any network, system, or subsystem of infrastructure assets. The cost of normal maintenance and repairs that do not significantly add to the value of the asset or materially extend the life of the asset are not capitalized. Major improvements are capitalized and depreciated over the remaining useful life of the related capital assets. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets is included as part of the capitalized value of the assets constructed. In a prior period, the Town has retroactively reported the Town's general infrastructure assets as by GASB 34, "Basic Financia/ Statements -and Managements Discussion and Ana/ysis -for State and Loca/ Governments "GASB 34 required the Town to report infrastructure assets acquired prior to July 1, 2002 within five years of that date. The effect of this change was to report and depreciate general infrastructure assets (e.g. roads, bridges, sidewalks, and similar items) acquired by the Town from July 1, 1980 to June 30, 2002. • Regular Council Meeting -February 3, 2009 -Page 73 of 263 46 TOWN OF MARANA, ARI20NA • NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) Depreciation is provided over the estimated useful lives of such assets using the straight- line method. These estimated useful lives are as follows. Years Buildings 40 Building improvements 10-15 Pump stations, distribution systems, equipment and improvements 45-75 Public domain infrastructure 20-50 Machinery, equipment, and assets under capital lease 4-10 K. Long-term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and .other long-term obligations are reported as liabilities in the applicable business-type activities and proprietary fund type statement of • net assets. Bond related charges and credits, such as premium discounts and issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types .recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances. are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. L. Compensated Absences The Town's employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. Vacation leave vests with the employee as it is earned. The current and long-term liabilities for accumulated vacation, including related benefits, are reported on the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations, and retirements. Sick leave benefits provided for ordinary sick pay. are not vested with the employees. Generally, resources from the General Fund are used to pay for compensated absences. M. Transactions Between Funds Transactions that would be treated as revenue or expenses if .they involved organizations external to the governmental unit are accounted for as revenue or expenses in the funds • involved. Transactions which constitute reimbursements of a fund for expenses initially made from that fund which are properly .applicable to another fund are recorded as exp,~ehnses in the reimbursing fund and as reductions of the expense in the fund that is Regular CoG~t~tf NI'~~i~~ February 3, 2009 -Page 74 of 263 47 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd) Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund statements are reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses in proprietary funds. N. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for expenditures or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. O. Use of Estimates • The preparation of financial statements in conformity with generally accepted accounting principles accepted in the United States of America requires management to make estimates and assumptions. This will affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ • from these estimates. P. Seized Property The Town Police have in their custody certain assets seized in criminal proceedings. Until formal procedures have been finalized, the ownership of this property is not determinable. In addition, legal requirements dictate that such assets not be reflected on the Town's financial records in an agency capacity until Town ownership has been determined. Consequently, no such assets are recorded on these financial statements. NOTE 2 -STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Individual Deficit Fund Balances - At June 30, 2008, the MANTIS Special Revenue Fund had a deficit fund balance of $88,090; the Vehicle Theft Task Force Special Revenue Fund had a deficit fund balance of $6,872; PAG Capital Projects Fund had a deficit fund balance of $2,923,983; the Other Capital Projects Fund had a deficit balance of $1,930,026; Pima County Bond Capital Fund, anon-major governmental fund reported a deficit of $823,884 in fund balance; and Other Debt Service had a deficit balance of $9,150. Deficit balances in the MANTIS and Vehicle Theft Task Force Special Revenue Funds are projected to be eliminated in fiscal year 2008-2009 through transfers from the general fund. All other funds with deficit fund balances account for the activity of cost/reimbursement programs. The deficits are as a result of the timing difference between the expenditures • and the receipt of reimbursement. The Town expects reimbursement for these expenditures early in fiscal year 2008 09 which are expected to eliminate the deficits. Regular Council Meeting -February 3, 2009 -Page 75 of 263 48 TOWN OF MARANA, ARIZONA • NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 3 -BUDGETARY CONTROL Excess Expenditures Over Budget - At June 30, 2008, the Town had expenditures in funds that exceeded the budget; however, this does not constitute a violation of any legal provisions. The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation that is applicable to all local governments. This limitation, based on expenditures of the. 1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in population and inflation. Certain expenditures are held to be excludable. The limitation is set by the State Economic Estimates Commission prior to April 1 of each year for the following fiscal year. As allowed, the voters of the Town of Marana, on May 17, 2005, approved an alternative expenditure limitation -home rule option to be applicable to the Town. This alternative expenditure limitation is free from any ties to the state imposed limitations and is in effect for four consecutive years beginning with the fiscal year ended June 30, 2006. This limitation provides for the Town to allow the Mayor and Council to adopt an annual expenditure limitation each year with no expenditures held to be excludable. Therefore, the annual expenditure limitation equals the adopted budget. • The Town establishes its fiscal year as the twelve-month period beginning July 1. The departments submit to the Town manager a budget of estimated expenditures for the ensuing fiscal year.. The Town manager and each department head meet to discuss mutually acceptable changes for the estimated expenditures for that department after which the Town manager subsequently submits a budget of estimated expenditures and revenues to the Town Council Upon receipt of the budget estimates, the Town Council will hold a public meeting to obtain taxpayer comments. Concurrently, a copy of the budget estimates is published in a local newspaper. The Town Council is prevented from legally enacting the budget through passage of a resolution until 15 days have passed after the date of the public meeting. Prior to July 1, the budget is legally enacted. The Town Council formally adopts the budget and legally allocates the .available monies for the General Fund, the Highway User Revenue Fund, the Local Transportation Assistance Fund, the M.A.N.T.I.S. Fund, the H.I.D.T.A Fund, the Vehicle Theft Task Force Fund, the Community Development Block Grant Fund, the Affordable Housing Revolving Fund, the Local JCEF Fund, the Local Technology Enhancement Fund, the Fill the Gap Fund, the RICO Fund, the Other Grants and Contributions Fund, the Other Debt Service Fund, the Transportation Fund, the 1/i Cent Sales Tax Fund, the Impact Fee Funds, the Other Capital Projects Funds and the Tangerine Farms Improvement District Fund. The enterprise funds, Water Department and Airport Authority, are subject to flexible budgets. The Town manager is authorized to transfer budgeted amounts within any department or • any fund; however, any revisions that reallocate budgeted amounts from the budget line items labeled "contingency" must be approved by the Town Council. Regular Council Meeting -February 3, 2009 -Page 76 of 263 49 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS 7 U N E 30, 2008 NOTE 4 -CASH AND INVESTMENTS A.R.S. authorize the Town to invest public monies in the State Treasurer's local government investment pools, the County Treasurer's investment pool, interest-bearing savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; bonds or other obligations of the U.S, government that are guaranteed as to principal and interest by the U.S. government; and bonds of the State of Arizona counties, cities, towns, school districts, and special districts as specified by statute. The statutes do not include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign currency risk for the Town's investments. The State Board of Investment provides oversight for the State Treasurer's pools. At June 30, 2008, the carrying amount of the Town's deposits was $2,487,170, and the bank balance was $6,206,479. The differences between the book and bank balances are due to timing of certain transactions like deposits in transit and outstanding checks. Of the bank balance, $600,000 was covered by Federal depository insurance, $5,606,479 was covered by collateral; no portion of the balance was uninsured and uncollateralized. At June 30, 2008, the Town's investments consisted of the following. Investment Type Money Market Investments U.S. Treasuries U.S. Agencies Investment Maturities (in Years) Fair Value Less than 1 1-5 $ 969,009 $ 969,009 $ - 1,211,302 1,211,302 - 16,916,108 9,723,948 7,192,160 $ 11,904,259 $ 7,192,160 • • State Treasurer's investment pool 5 10,024,150 78 days average maturities State Treasurer's investment pool 7 12,810,203 50 days average maturities $41,930,772 Interest Rate Risk. The Town does. not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. The Town has no investment policy that would further limit its investment choices. As of June 30, 2008, the Town's investment in the State Treasurer's investment pool did not receive a credit quality rating from a national rating agency. The Town's investments in U.S. Agencies were rated Aaa by Moody's Investors Service and AAA by Standard & Poor's. Custodia/ Credit Risk. The Town's investment in the State Treasurer's investment pool represents a proportionate interest in the pool's portfolio; however, the Town's portion is not identified with specific investments and is not subject to custodial credit risk. Regular Council Meeting -February 3, 2009 -Page 77 of 263 • 50 i• TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS ] U N E 30, 2008 NOTE 4 -CASH AND INVESTMENTS (cont'd) Concentration of Credit Risk. The Town places no limit on the amount it may invest in any one issuer. More than 5 percent of the Town's investments are in U.S. Agencies. These investments are 40% of the Town's total investments. NOTE 5 -RECEIVABLES Other receivables, net of allowance for uncollectibles, as of year end for the Town's individual major funds and non-major governmental funds in the aggregate, are as follows. SOUth Benefit Highway Area Users Non-Major Transportation Impact Revenue Other Capital Governmental Total General Fund Fund Fees Fund Projects Fund Funds Receivables Taxes receivable $ - $ - $ - $ - $ - $ 1,659 $ 1,659 Accounts receivable 103,298 - - - - 13,960 117,258 Interest receivable 78,182 60,310 29,193 - 18,133 27,348 213,166 Due from other governments 3,369,906 1,506,075 - 164,857 6,836,802 1,752,403 13,630,043 Due from other funds 9,416,860 172,877 - - - - 9,589,737 Net total receivables $ 12,968,246 $ 1,739,262 $ 29,193 $ 164,857 $ 6,854,935 $ 1,795,370 $ 23,551,863 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the governmental funds were as follows. • Deferred revenue Unavailable Program revenues -General Fund $ 31,309 Developer deposits held by Town -General Fund 327,427 Developer deposits held by Town - Non-Major governmental funds 531,862 Funds due from Federal Government -Twin Peaks Project 2,349,755 Funds due from Pima Association of Governments - Silverbell Road 1,250,260 Total deferred revenue $ 4,490,613 Regular Council Meeting -February 3, 2009 -Page 78 of 263 51 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 6 -CAPITAL ASSETS The following is a summary of the changes in capital assets for fiscal year ended June 30, 2008. Beginning , Governmental Activities Balance Additions Deletions Ending Balance Capital assets, not being depreciated: Land $ 3,491,030 $ - $ - $ 3,491,030 Construction in progress 32,590,723 50,787,787 1,690,204 81,688,306 Total capital assets, not being depreciated 36,081,753 50,787,787 1,690,204 85,179,336 Capital assets, being depreciated: Buildings and improvements 41,786,107 307,976 47,546 42,046,537 Machinery, equipment, and other assets 15,634,383 1,500,175 33,932 17,100,626 Infrastructure 157,187,070 1,885,118 54,589 159,017,599 Total capital assets being depreciated 214,607,560 3,693,269 136,067 218,164,762 Less accumulated depreciation for: Buildings and improvements (3,799,422) (1,261,591) - (5,061,013) Machinery, equipment, and other assets (8,507,539) (2,683,140) (8,483) (11,182,196) Infrastructure (31,405,215) (6,017,645) - (37,422,860) Total accumulated depreciation (43,712,176) (9,962,376) (8,483) (53,666,069) Total capital assets, being depreciated, net 170,895,384 (6,269,107) 127,584 164,753,861 Governmental activities capital assets, net $206,977,137 $44,518,680 $1,817,788 $249,678,029 Governmental activities depreciation expense was charged to function/programs as follows. Governmental Activities: General government Economic and community development Public safety Highways and streets Health and welfare Culture and recreation Total depreciation expense -governmental activities Regular Council Meeting -February 3, 2009 -Page 79 of 263 $ 1,781,877 43,206 1,231,185 6,274,979 26,168 604,961 $ 9,962,376 ., .~ • 52 TOWN OF MARANA, ARIZONA • NOTES TO FINANCIAL STATEMENTS DUNE 30, 2008 NOTE 6 -CAPITAL ASSETS (Cont'd) A summary of changes in capital assets for business-type activities is as follows. Beginning Business-type Activities Balance Additions Deletions Ending Balance Capital assets, not being depreciated: Land. $ 221,810 $ 1,393,114 $ - $ 1,614,924 Water rights 543,696 - - 543,696 Construction in progress 6,232,398 4,257,666 6,991,316 3,498,748 Total capital assets, not being depreciated 6,997,904 5,650,780 6,991,316 5,657,368 Capital assets, being depreciated: Buildings and improvements 21,826,244 8,929,321 - 30,755,565 Machinery, equipment, and other assets 398,976 5,083 - 404,059 Infrastructure 54,737 - 15,349 39,388 Total capital assets being depreciated 22,279,957 8,934,404 15,349 31,199,012 Less accumulated depreciation for: Buildings and improvements (3,496,526) (794,680) - (4,291,206) Machinery, equipment, and other assets (227,613) (78,379) - (305,992) Infrastructure (32,091) (985) (15,349) (17,727) Total accumulated de reciation p 230 (3 756, ) (874,044) (15,349) (4,614,925 ) • Total capital assets, being depreciated, net 18,523,727 8,060,360 - 26,584,087 Business-type activities capital assets, net $ 25,521,631 $13,711,140 $6,991,316 $ 32,241,455 Business-type depreciation expense was charged to functions/programs as follows. Business-type Activities: Water $ 312,445 Airport 561,599 Total depreciation expense -business-type activities $ 874,044 NOTE 7 -LONG-TERM DEBT A. Notes Payable In September 2005, the Town received a $7,.000,000 loan from the Arizona Department of Transportation (ADOT) through the Highway Expansion and Extension Loan Program (HELP) to help fund costs related to the Thornydale Road reconstruction. • Regular Council Meeting -February 3, 2009 -Page 80 of 263 53 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 7 -LONG-TERM DEBT (Cont'd) The following is a schedule by years of the debt service requirements for the loan as of June 30, 2008. Year ending June 30: 2009 2010 Total • Principal Interest Total $ 1,000,000 900,000 $ 1,900,000 $ 47,747 22,617 $ 70,364 $1,047,747 922,617 $1,970,364 B. Community Facilities District IiCFD) General Obligation Bonds Gladden Farms Community Facilities District (a component unit) issued general obligation bonds for infrastructure improvements. The CFD general obligation bonds outstanding as reported in governmental activities as of June 30, 2008, were as follows. Outstanding June 30, 2008 $2,105,000 CFD General Obligation Bonds, 2004 Series, due in annual installments of $45,000 to $165,000; through July 15, 2029; at a 5.0% to 6.5% interest rate. $ 2,060,000 $3,250,000 CFD General Obligation Bonds, 2006 Series, due in annual installments of $70,000 to $395,000; through July 15, 2031; at a 4.9% to 5.5% interest rate. 3,250,000 $3,075,000 CFD General Obligation Bonds, 2007 Series, due in annual installments of $60,000 to $605,000; through July 15, 2032; at a 4.4% to 5.45% interest rate. 3,075,000 Total $ 8,385,000 Annual debt service requirements to maturity on the CFD general obligation bonds at June 30, 2008, are summarized as follows. • Regular Council Meeting -February 3, 2009 -Page 81 of 263 54 TOWN OF MARANA, ARIZONA • NOTES TO FINANCIAL STATEMENTS TUNE 30, 2008 NOTE 7 -LONG-TERM DEBT (cont'd) Year Ending June 30: Principal Interest Total 2009 $ 50,000 $ 460,550 $ 640,550 2010 180,000 455,015 645,015 2011 190,000 446,194 646,194 2012 200,000 436,860 641,860 2013 205,000 427,108 642,108 2014-18 1,205,000 1,959,688 3,229,688 2019-23 1, 565,000 1, 585, 381 3, 240,381 2024-28 2,065,000 1,072,151 3,252,151 2029-32 2,725,000 392,391 2,632,391 Total 8 385 000 $7,235,338 $15,570,338 C. Tan4erine Farms Road Improvement District Improvement Bonds Tangerine Farms Road Improvement District (a component unit) issued special assessment • bonds for infrastructure improvements. The Town is required to cover delinquencies with other resources until foreclosure proceeds are received. The TFRID special assessment bonds outstanding as reported in governmental activities as of June 30, 2008, were as follows. Outstanding June 30, 2008 $25,774,000 TFRID Special Assessment Bonds, due in annual installments of $951,000 to $2,043,000; through January 1, 2026; at an interest rate of 4.6%. $ 25,774,000 Total $ 25,774,000 Annual debt service requirements to maturity on the TFRID special assessment bonds at June 30, 2008, are summarized as follows. Year Ending June 30: Principal Interest Total 2009 $ 951,000 $ 1,163,731 $ 2,114,731 2010 995,000 1,118,973 2,113,973 2011 1,040,000 1,072,168 2,112,168 2012 1,088,000 1,023,224 2,111,224 2013 1,138,000 972,026 2,110,026 2014 - 18 6,527,000 4,005,611 10,532,611 2019 - 23 8,172,000 2,322,080 10,494,080 • 2024 - 26 5,863,000 412,643 6,275,643 Total $ 25,774,000 $12,090,456 $37,864,456 Regular Council Meeting -February 3, 2009 -Page 82 of 263 55 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 7 -LONG-TERM DEBT (cont'd) D. Revenue Bonds The Town has issued revenue bonds for acquiring water systems, infrastructure upgrades, the design and construction of the new municipal complex and to refund prior issuances. These bonds are payable solely from the excise taxes collected by the Town. The revenue bonds outstanding as reported in governmental activities as of June 30, 2008 were as follows. Outstanding June 30, 2008 $8,175,000 Revenue Bonds, 1997 Series, due in bi- annual installments of $100,000 to $300,000; through July 1, 2022; at a 4.6% to 5.25% interest rate. $ 3,625,000 • $19,700,000 Revenue Bonds, 2003 Series, due in bi- annual installments of $260,000 to $665,000; through July 1, 2028; at a 2.0% to 5.0% interest rate. 17,845,000 • $8,675,000 Revenue and Refunding Bonds, 2004 Series, due in bi-annual installments of $130,000 to $320,000; through July 1, 2028; at a 3.0% to 5.25% interest rate. 7,770,000 Total $ 29,240,000 Annual debt service requirements to maturity on revenue bonds at June 30, 2008, are summarized as follows. Year ending June 30: Principal Interest Total 2009 $ 1,055,000 $ 1,363,763 $ 2,418,763 2010 1,075,000 1,327,431 2,402,431 2011 1,210,000 1,285,643 2,495,643 2012 1,270,000 1,234,684 2,504,684 2013 1,220,000 1,184,346 2,404,346 2017 - 23 7,615,000 5,488,479 13,103,479 2023 - 27 9,365,000 3,215,479 12,580,768 2027 - 28 6,430,000 9,990,667 16,330,667 Total $ 29 240 000 $ 25 000 783 • $ 54 240 783 , , , , , , Regular Council Meeting -February 3, 2009 -Page 83 of 263 56 TOWN OF MARANA, ARIZONA • NOTES TO FINANCIAL STATEMENTS DUNE 30, 2008 NOTE 7 -LONG-TERM DEBT (cont'd) E. Revenue Bonds In prior years, the Town defeased certain bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on .the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Town's governmental activities column of the statement of net assets. At June 30, 2008, $4,900,000 of bonds outstanding is considered defeased. F. Caaital Leases In February 2006, the Town entered into a 5-year lease agreement with National Bank of Arizona to acquire a road grader. Quarterly payments of $11,174 began effective June 1, 2006 and will continue through March 31, 2011, with an annual interest of 4.1% for the term of the agreement. Over the length of the loan, $23,028 will be applied to interest, $200,446 to principal. • The road grader has been capitalized at the present value of the future minimum lease payment as of the date of its inception. The book value of this capital lease is calculated as such: Lease Purchase Price $200,446 Less Accumulated Depreciation $80,178 Book Value of Capital Lease 120,268 Annual debt service requirements for this capital lease as of June 30, 2008 are summarized below: Year ending June 30: Principal Interest 2009 $ 40,515 $ 4,180 2010 42,227 2,468 2011 32,836 685 Total $ 115,578 $ 7,333 • Total $ 44,695 44,695 33,521 $ 122,911 Regular Council Meeting -February 3, 2009 -Page 84 of 263 57 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS ]UNE 30, 2008 NOTE 7 -LONG-TERM DEBT (Cont'd) The following is a summary of changes in long-term debt activity for fiscal year ended June 30, 2008. Governmental activities: General obligation bonds Revenue bonds Compensated absences Notes payable Special assessment bonds Capital lease Total Business-type activities: Compensated absences Note payable Total Beginning Due Within Balance Additions Reductions Ending Balance One Year $ 5,355,000 $ 3,075,000 $ 45,000 $ 8,385,000 $ 50,000 30,460,000 - 1,220,000 29,240,000 1,055,000 741,765 932,872 748,295 926,342 741,074 2,900,000 - 1,000,000 1,900,000 1,000,000 25,774,000 - - 25,774,000 951,000 154,438 - 38,860 115,578 40,515 $ 65,385,203 $ 4,007,872 $ 3,052,155 $ 66,340,920 $ 3,837,589 $ 34,340 $ 61,162 $ 31,306 $ 64,196 $ 51,357 8,800 - 8,800 - - ~ 43,140 $ 61,162 $ 40,106 $ 64,196 $ 51,357 NOTE 8 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Due to/from other funds: At June 30, 2008, several funds were involved in interfund borrowing arrangements with the General Fund and Transportation Fund due to insufficient resources available in the funds to cover expenditures. Through the fiscal year 2008-2009, these interfund borrowing will be eliminated as sufficient resources become available. Listed below is a summary of the intefund borrowing transactions. Due To General Fund Transportation Fund Total Other Capital Projects Due From Non-Major Governmental Business-Type Funds Activities Total $ 3,665,572 $ 3,606,450 $ 2,144,838 $ 9,416,860 - 172,877 - 172,877 ~ 3,665,572 $ 3,779,327 $ 2,144,838 9,589,737 • • Regular Council Meeting -February 3, 2009 -Page 85 of 263 58 TOWN OF MARANA, ARIZONA . NOTES TO FINANCIAL STATEMENTS ]UNE 30, 2008 NOTE 8 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Cont'd) Interfund transfers: Interfund transfers were made by the Town during the fiscal year to ensure that sufficient resources were available to cover expenditures in the applicable funds. These were direct transfers between funds 'and will not be eliminated as sufficient resources become available in the receiving funds. Listed below is a summary of transfers between funds. Transfers In Non-Major Business- Governmental Type Transfer Out Funds Activities Total General Fund $ 1,698,188 $ 398,575 $ 2,096,763 Other Capital Projects Fund 2,258,481 - 2,258,481 Water Fund 238,577 - 238,577 Total $ 4,195,246 $ 398,575. $ 4,593,821 • NOTE 9 -EMPLOYEE RETIREMENT SYSTEMS All full-time and permanent part-time employees participate in one of four different retirement plans. With the exception of public safety personnel, police dispatchers and elected officials, all other employees participate in the Arizona State Retirement System (ASKS). Certified public safety personnel participate in the Public Safety Retirement Systems (PSPRS). Police dispatch and communication staff participates in the Corrections Officer Retirement Plan (CORP). The Town's Mayor and Council Members participated in the Elected Officials' Retirement Plan (EORP). A. Public Safety Personnel Retirement System All of the Town's full-time police officers are covered by the Marana Police Arizona Public Safety Personnel Retirement System, which is an agent/multiple-employer administered by the fund manager of the Arizona Public Safety Personnel Retirement System, defined benefit public employee retirement system (PERS). Authority to establish and amend the benefit provisions of this pension plan is established by Arizona State statute. The State of Arizona Public Safety Personnel Retirement System issues a publicly available financial report that includes financial statements and required supplemental information for the Marana Marshal's plan. This report may be obtained by writing to the Arizona Public Safety Personnel Retirement System 1020 E. Missouri Phoenix, Arizona 85014. The contribution requirements of plan members are established and may be amended. by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required employee contribution rate was 7.65%; the Town's contribution rate was 10.5%. As of June 30, 2008, Regular Co~~l l~fg h~ra~t~il<ila~ i3@gLA~d amounts; no contributions were left unfunded. 59 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 • NOTE 9 -EMPLOYEE RETIREMENT SYSTEMS (Cont'd) Total contributions made during fiscal year 2007-08 were $836,566, of which $484,001 was made by the Town and $352,565 was made by police officers. The pension contributions represent funding for normal cost and the amortization of the unfunded actuarial accrued liability. The Town's pension cost for the year ending June 30, 2008,~the date of the most recent actuarial valuation and related information are summarized as follows: Contribution rates: Town 10.5% Plan member 7.65% Annual pension cost $836,566 Contributions made $836,566 Actuarial valuation date 6/30/2008 Actuarial cost method Projected unit credit Actuarial assumptions Investment rate of return 8.5% Projected salary increases 5.5% to 8.5% Post-retirement benefit increase Based on Investment Income • Amortization method Level percent closed for unfunded actuarial accrued liability, open for excess Remaining amortization period 29 years for unfunded actuarial accrued liability, 20 years for excess Asset valuation method Smoothed market value Trend Information Annual Pension Percent Net Pension Fiscal Year Ended June 30, Cost (APC) Contributed Obligation 2008 $483,724 100.0 - 0 - 2007 $386,239 100.0 - 0 - 2006 $347,042 100.0 - 0 - SCHEDULE OF FUNDING PROGRESS (6) Unfunded (2) AAL as a (1) Entry Age (3) (5) Percentage Actuarial Actuarial Percent (4) Annual of Covered Valuation Value of Accrued Funded Unfunded Covered Payroll Date June 30 Assets Liabili (AAL) 1 2 AAL 2 - 1 Payroll 4 5 2008 $9,429,944 $11,845,993 79.6 $2,416,049 $4,822,869 50.1% 2007 $8,392,338 $12,151,257 69.1. $3,758,919 $4,104,462 91.6% 2006 $7,603,870 $9,353,865 81.3 $1,749,995 $3,886,273 45.0% Regular Council Meeting -February 3, 2009 -Page 87 of 263 60 TOWN OF MARANA, ARI20NA NOTES TO FINANCIAL STATEMENTS • JUNE 30, 2008 NOTE 9 -EMPLOYEE RETIREMENT SYSTEMS (Cont'd) B. Arizona State Retirement System On July 11, 2007 the Town moved from the Money Purchase Retirement. Plan and Trust defined contribution plan administered by the International City Management Association to the Arizona State Retirement System (ASKS) defined benefit plan, amultiple-employer, cost-sharing plan. The ASKS is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. ASKS issues a .publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at ASKS, 3300 N. Central Avenue, P.0. Box 33910, Phoenix, Arizona -85012-3910 or by calling 602-240-2000 or 1-800-621-3778.. All full-time and permanent part-time employees not in the Public Safety Retirement System, Corrections Officers Retirement System or Elected Officials Retirement System are eligible to participate. The contribution requirements of plan members are established and maybe amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required contribution rate of members was 9.6%; the Town's contribution rate was 9.6%. As of June 30, 2008, the Town had contributed all required amounts; no contributions were left unfunded. The Town's total payroll in fiscal year 2007-08 was $22,888,487. The Town's contributions were calculated using the earnings amount of $10,744,553. For fiscal 2007-08, the covered employees made the required contribution, amounting to $1,031,477, with the Town making a contribution amounting to $1,031,477 for a total of $2,062,954. C. Corrections Officers Retirement Plan All full-time and permanent part-time employees employed as police dispatchers or communications operators are eligible to participate in the Corrections Officers Retirement Plan (CORP), amultiple-employer, cost-sharing plan. The CORP is governed by the Corrections Officers Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 6. Benefits. are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. CORP issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at CORP, 3300 N. Central Avenue, P.0. Box 33910, Phoenix, Arizona 85012-3910 or by calling 602-240-2000 or 1-800-621-3778. • The contribution requirements of plan members are established and maybe amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide Regular Council Meeting -February 3, 2009 -Page 88 of 263 61 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 • NOTE 9 -EMPLOYEE RETIREMENT SYSTEMS (Cont'd) assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required contribution rate of members was 5.0%; the Town's contribution rate was 7.96%. The Town's contributions to CORP for the fiscal years ended June 30, 2008, 2007 and 2006 were $73,818, $63,740 and $65,603, respectively, which were equal to the required contributions for those years. D. Elected Officials' Retirement Plan The Town's Mayor and Council Members are eligible to participate in the Elected Officials' Retirement Plan (EORP), amulti-employer, cost-sharing plan. The EORP is governed by the Public Safety Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 3. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. EORP issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at EORP, 3300 N. Central Avenue, P.O. Box 33910, Phoenix, Arizona 85012-3910 or by calling 602-240-2000 or 1-800-621-3778. The contribution requirements of plan members are established and maybe amended by . Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required contribution rate of members was 7.0%; the Town's contribution rate was 20.21%. The Town's contributions to EORP for the fiscal years ended June 30, 2008, 2007 and 2006 were $19,971, $16,101 and $18,803, respectively, which were equal to the required contributions for those years. NOTE 10 -RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; 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 basis coverage is for $2,000,000 per occurrence on a claims made purpose. Excess coverage is for an additional $13,000,000 per. occurrence on a follow form, claims made basis. 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. • Regular Council Meeting -February 3, 2009 -Page 89 of 263 62 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS TUNE 30, 2008 NOTE 10 -RISK MANAGEMENT (Cont'd) The Town continues to carry commercial insurance for all other risks of loss, including workers' compensation and employee health and accident insurance. Settled claims resulting from these risks .have not exceeded commercial. insurance coverage in any of the past three fiscal years. NOTE 11 -COMMITMENTS AND CONTINGENCIES The Town is subject to a number of lawsuits, investigations, and other claims (some of which involve substantial amounts) that are incidental to the ordinary course of its operations, including those related to wrongful death and personal injury matters. Although the Town Attorney does not currently possess .sufficient information to reasonably estimate the amounts of the liabilities to be recorded upon the settlement of such claims and lawsuits, some claims could be significant to the Town's operations. While the ultimate resolution of such lawsuits, investigations, and claims cannot be determined at this time, in the opinion of Town management, based on the advice of the Town Attorney, the resolution of these matters will not have a material adverse effect on the Town's financial position. Town of Marana v. Pima County • The Town has filed suit against Pima County in Superior Court seeking declaratory and injunctive relief on the issue of whether the Town owns the sewer facilities within the Town boundaries pursuant to an Intergovernmental Agreement the Town entered into with Pima County in 1979. As of June 30, 2008, the case was still pending and the issues of ownership of a treatment plant and affected sewer lines were still unresolved. Neither party ..seeks monetary damages from the other; however, there may be entitlement of attorneys' fees by the prevailing party. Significant Contractual Commitments At the end of fiscal year 2008, the Town was obligated to $24.8 million in significant contractual commitments for transportation, park and airport related construction projects. Silverbell Road Improvements, Ina Road to Cortaro Road, accounted for $14.5 million in commitments. Thornydale Road Improvements, Orange Grove to the CDO Wash; accounted for $5.5 in commitments. Other transportation related projects accounted for $3.2 million; other parks system related and airport construction projects accounted for $1.6 million. • Regular Council Meeting -February 3, 2009 -Page 90 of 263 63 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS DUNE 30, 2008 NOTE 12 -LEASING ARRANGEMENTS Air ort The Airport Authority, an Enterprise Fund, leases part of the airport to local Marana businesses under non-cancelable operating leases. requiring fixed and contingent rentals based on aviation fuel dispensed on the premises. The following is a schedule of future minimum rentals receivable under these leases at June 30, 2008, not including any year beyond the minimum of twenty years in the lease for the general fund and not including renewal options for the leases for the Airport Authority. Year Ending June 30: 2009 2010 2011 2012 2013 2014 - 18 2019 - 23 2024 - 28 2029 - 33 2034 - 38 2039 - 43 2044 - 48 Total Airport $ 155,529 173,628 173,711 174,342_ 174,428 882,704 1,057,896 1,068,280 1,143,416 1,447,190 1,847,019 2,357,317 $10,655,460 r~ ~~ • • Regular Council Meeting -February 3, 2009 -Page 91 of 263 64 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2008 NOTE 12 -LEASING ARRANGEMENTS (Cont'd) Land -State of Arizona The Town has assigned and assumed anon-cancelable long-term operating lease for 2,400 acres of land with the State of Arizona with an expiration of October 2099. This lease had an initial annual rent of $432,000 that requires 10% increases in the annual rent payments for each succeeding five year period. In conjunction with the Town assuming the long-term operating lease, a developer has signed anon-cancelable agreement to reimburse the Town the annual rental payment for a minimum of twenty years. This non-cancelable twenty year term begins after the first twelve consecutive months generate more than $1,000,000 in resort sales tax to the Town from the development project known as "Dove Mountain". It is unknown when this event will occur, resulting in the start of the twenty year term. These leases provide for payments of minimum annual rentals as follows, excluding real estate taxes, common area charges, management fees, and sales taxes. Years Ending June 30, 2009 475,200 2010 475,200 2011 522,720 2012 522,720 2013 522,720 2014 - 18 2,770,416 2019 - 23 3,047,457 2024 - 28 3,352,202 2029 - 33 3,687,422 2034 - 38 4,056,166 2039 - 43 4,461,782 2044 - 48 4,907,959 2049 - 53 5,398,757 2054 - 58 5,938,632 2059 - 63 6,532,495 2064 - 68 7,185,745 2069 - 73 7,904,319 2074 - 78 8,694,751 2079 - 83 9,564,226 2084 - 88 10,520,649 2089 - 93 11,572,714 2094 - 98 12,729,987 2099-2100 2,642,073 Total $117,486,312 • Minimum annual rentals above excludes annual rental under the remaining renewal options as of June 30,.2008. Rent expense under the above leases for fiscal 2007-08 aggregated $475,200, Regular Council Meeting -February 3, 2009 -Page 92 of 263 65 TOWN OF MARANA, ARI20NA NOTES TO FINANCIAL STATEMENTS ]UNE 30, 2008 • NOTE 13 -ACCOUNTING RESTATEMENTS Corrections were necessary to properly record revenues and expenditures in the proper fiscal year, ,which affected the fund-based statements. The reconciliation below also summarizes the differences between fiscal year 2007 fund balances as reported and beginning fund balances as reported in fiscal year 2008. South Benefit Gladden Area Impact Transportation Farms Debt General Fund Fees Fund Service Fund Fund Balance June 30, 2007 as previously reported $ 19,247,857 $ 9,644,781 $ 16,930,064 $ 210,581 Recognition of revenues in proper year 1,843,042 (570,000) 231,092 Recognition of expenditures in proper year (90,174) Account Balance, July 1, 2008, as restated $ 21,090,899 $ 9,074,782 $ 17,161,156 $ 120,407 Corrections were necessary to properly record revenues and expenditures in the proper fiscal year, which affected the government wide statements. The reconciliation below also summarizes the differences between fiscal year 2007 fund balances as reported and • beginning fund balances as reported in fiscal year 2008. Statement of Activities Net Assets June 30, 2007 as previously reported $ 218,997,870 Recognition of sales tax in appropriate period 2,504,132 Adjustment to investment earnings in appropriate period (1,090,174) Net Assets June 30, 2008, as restated $ 220,411,828 NOTE 14 -SUBSEQUENT EVENTS Debt Issuance On August 13, 2008, the Town of Marana Municipal Property Corporation issued $39,790,000 of Municipal Facilities Revenue Bonds, Series 2008. These bonds were issued for the purpose of acquiring certain public infrastructure. Interest rates range from 4.00 percent to 5.125 percent, with a term of 20 years. Local Government Investment Pool 5 Portions of the Town's investments are held by the Arizona State Treasurer in the Local Government Investment Pool 5. On September 15, 2008, the Town received notification that an investment held by the pool, Lehman Brothers Holding Inc., filed for Chapter 11 reorganization. The Town's pro-rata share of the Lehman Brothers Holding's bonds totaled • $121,315, so the State Treasurer reduced the Town's investments by the same amount. Regular Council Meeting -February 3, 2009 -Page 93 of 263 66 r~ ~. SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (REQUIRED SUPPLEMENTARY INFORMATION) • • Regular Council Meeting -February 3, 2009 -Page 94 of 263 67 • • Regular Council Meeting -February 3, 2009 -Page 95 of 263 68 TOWN OF MARANA, ARIZONA • SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -GENERAL FUND YEAR ENDED DUNE 30, 2008 • Revenues: Sales taxes Intergovernmental Licenses, fees & permits Fines, forfeitures & penalties Charges for services Lease income Contributions Investment income Miscellaneous Total revenues Expenditures: Current - General government Public safety Highways and streets Health and welfare Economic and community development Cuture and recreation Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Budgeted Amounts. Variance - Positive Original Final Actual (Negative) $19,098,627 $19,098,627 $ 19,651,082 $ 552,455 7,420,691 7,420,691 7,531,634 110,943 4,271,670 4,271,670 2,307,878 (1,963,792) 654,275 654,275 716,983 62,708 1,186,782 1,186,782 979,797 (206,985) 493,300 493,300 987,107 493,807 35,000 35,000 60,788 25,788 564,250 564,250 569,125 .4,875 622,748 622,748 387,187 (235,561) 34,347,343 34,347,343 33,191,581 (1,155,762) 9,710,599 9,838,492 8,239,993. 1,598,499 10,714,443 10,773,273 10,181,339 591,934 2,227,219 2,230,219 2,303,668 (73,449) 62,834 62,834 129,757 (66,923) 4,458,036 4,523,613 4,537,988 (14,375) 3,449,180 3,458,180 3,266,690 191,490 4,334,098 4,069,798 3,111,517 958,281 34,956,409 34,956,409 31,770,952 3,185,457 (609,066) (609,066) 1,420,629 2,029,695 Other financing sources (uses): Transfers out (2,423,560) (2,423,560) (2,096,763) 326,797 Total other financing sources (uses) (2,423,560) (2,423,560) (2,096,763) 326,797 Changes in fund balances (3,032,626) (3,032,626) (676,134) 2,356,492 Fund balances, beginning of year as restated 14,463,737 14,463,737 21,090,899 6,627,162 Fund balances, end of year $11,431,111 $11,431,111 $ 20,414,765. $ 8,983,654 See accompanying notes to this schedule. Regular Council Meeting -February 3, 2009 -Page 96 of 263 69 TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -HIGHWAY USER REVENUE FUND • YEAR ENDED TUNE 30, 2008 Budgeted Amounts Variance - Positive Original Final Actual (Negative) Revenues: Intergovernmental $ 2,244,207 $ 2,244,207 $ 2,035,849 $ (208,358) Total revenues 2,244,207 2,244,207 2,035,849 (208,358) Expenditures: Current - Highways and streets 1,234,575 1,234,575 1,021,490 213,085 Capital outlay 1,100,000 1,100,000 693,193 406,807 Total expenditures 2,334,575 2,334,575 1,714,683 619,892 Changes in fund balances (90,368) (90,368) 321,166 411,534 Fund balances, beginning of year 211,826 211,826 127,723 (84,103) Fund balances, end of year $ 121,458 $ 121,458 $ 448,889 $ 327,431 • See accompanying notes to this schedule. Regular Council Meeting -February 3, 2009 -Page 97 of 263 70 TOWN OF MARANA, ARIZONA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION . JUNE 30, 2008 NOTE 1 -BUDGETARY BASIS OF ACCOUNTING The adopted budget of the Town is prepared on a basis of accounting consistent with accounting principles generally accepted in the United States of America. • • Regular Council Meeting -February 3, 2009 -Page 98 of 263 71 • • Regular Council Meeting -February 3, 2009 -.Page 99 of 263 72 • COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES • Regular Council Meeting -February 3, 2009 -Page 100 of 263 73 • • Regular Council Meeting -February 3, 2009 -Page 101 of 263 74 • OTHER MA7OR GOVERNMENTAL FUNDS SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL • • Regular Council Meeting -February 3, 2009 -Page 102 of 263 75 • • Regular Council Meeting -February 3, 2009 -Page 103 of 263 76 TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN • FUND BALANCES -BUDGET AND ACTUAL -SOUTH BENEFIT AREA IMPACT FEES YEAR ENDED JUNE 30, 2008 • Revenues: Contributions Investment income Total revenues Expenditures: Current - Capital outlay Total expenditures Changes in fund balances Budgeted Amounts Variance - Positive. Original Final Actual (Negative) $717,120 $717,120 $168,637 $ (548,483). 225,414 225,414 392,110 166,696 942,534 942,534 560,747 (381,787) 8,967,000 8,967,000 4,244,028 .4,722,972 8,967,000 8,967,000 4,244,028 4,722,972 (8,024,466) (8,024,466) (3,683,281) 4,341,185 Fund balances, beginning of year as restated 8,602,785 8,602,785 9,074,782 471,997 Fund balances, end of year $ 578,319 $ 578,319 $ 5,391,501 $ 4,813,182 Regular Council Meeting -February 3, 2009 -Page 104 of 263 77 TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -TRANSPORTATION YEAR ENDED .TUNE 30, 2008 Revenues: Sales taxes Contributions Investment income Miscellaneous Total revenues Expenditures: Current - General government Highways and streets Economic and community development Capital outlay Debt service - Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Face value of bonds issued Transfers out Total other financing sources (uses) Changes in fund balances Budgeted Amounts Variance - Positive Original Final Actual (Negative) $ 9,427,533 $ 9,427,533 $ 7,511,231 $ (1,916,302) - - 470,361 470,361 286,655 286,655 588,558 301,903 - - 70,145 70,145 9,714,188 9,714,188 8,640,295 (1,073,893) 1,750,000 1,750,000 1,384,444 365,556 145,514 145,514 472,687 (327,173) 278 52,278 33,027 19,251 14,861,337 14,809,337 13,787,912 1,021,425 44,695 44,695 38,591 6,104 - - 6,104 (6,104) 16,801,824 16,801,824 15,722,765 1,079,059 (7,087,636) (7,087,636) (7,082,470) 5,166 9,000,000 9,000,000 - (9,000,000) (2,110,377) (2,110,377) - 2,110,377 6,889,623 6,889,623 - (6,889,623) (198,013) (198,013) (7,082,470) (6,884,457) Fund balances, beginning of year as restated 14,143,540 14,143,540 17,161,156 3,017,616 Fund balances, end of year $13,945,527 $13,945,527 $10,078,686 $ (3,866,841) Regular Council Meeting -February 3, 2009 -Page 105 of 263 • 78 TOWN OF MARANA, ARIZONA • SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -OTHER CAPITAL PR07ECTS YEAR ENDED TUNE 30, 2008 Revenues: Intergovernmental Contributions Investment income Total revenues Expenditures: Current - Highways and streets Capital outlay Debt service - Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Face value of bonds issued Transfers out Total other financing sources (uses) Changes in fund balances Fund balances, beginning of year 23,826,406 23,826,406 20,739,293 (3,087,113) Fund balances (deficits), end of year $ - $ - $ (1,930,026) $ (1,930,026) Budgeted Amounts Variance - Positive Original Final Actual (Negative) $17,206,800 $17,206,800 $ 7,223,051 $ (9,983,749) - - 13,470 13,470 359,638 359,638 944,494 584,856 17,566,438 17,566,438 8,181,015 (9,385,423) - - 18,353 (18,353) 52,345,849 52,345,849 28,560,641 23,785,208 146,995 146,995 12,859 134,136 52,492,844 52,492,844 28,591,853 23,900,991 (34,926,406) (34,926,406) (20,410,838) 14,515,568 11,100,000 11,100,000 - 11,100,000 - - (2,258,481) 2,258,481 11,100,000 11,100,000 (2,258,481) 13,358,481 (23,826,406) (23,826,406) (22,669,319) 1,157,087 • Regular Council Meeting -February 3, 2009 -Page 106 of 263 79 • . ~, i ~~ ~~! f, •~ tI ~ 1 TOWN OP MARANA Regular Council Meeting -February 3, 2009 -Page 107 of 263 • • 80 • NON-MAJOR GOVERNMENTAL FUNDS • Regular Council Meeting -February 3, 2009 -Page 108 of 263 81 TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET -ALL NON-MA7OR GOVERNMENTAL FUNDS - BY FUND TYPE DUNE 30, 2008 ASSETS Cash and cash equivalents Taxes receivable Accounts receivable Interest receivable Due from governments Prepaid items Restricted cash and investments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Deferred revenue Bonds payable Bond interest payable Total liabilities Fund balances: Reserved for: Prepaid items Debt service Unreserved Total fund balances Total liabilities and fund balances Special Revenue Debt Service Capital Projects $ 1,331,075 $ 94,989 $ 10,170,707 - 1,659 - 13,739 - 221 - 1,421 25,927 24,678 - 1,727,725 - 1,125 - 79,202 2,180,298 - $ 1,448,694 $ 2,279,492 $ 11,924,580 $ 158,826 $ 2,905 $ 562,023 97,356 7,370 3,674,601 - 531,862 1,250,260 - 575,000 - - 916,589- - 256,182 2,033,726 5,486,884 - 1,125 - - 244,641 - 1,192,512 - 6,437,696 1,192,512 245,766 6,437,696 $ 1,448,694 $ 2,279,492 $ 11,924,580 Regular Council Meeting -February 3, 2009 -Page 109 of 263 • r~ ~~ ,. 82 • Total Non-Major Governmental Funds $ 11,596,771 1,659 13,960 27,348 1,752,403 1,125 2,259,500 $ 15,652,766 $ 723,754 3,779,327 1,782,122 575,000 916,589 • 7,776,792 1,125 244,641 7,630,208 7,875,974 $ 15,652,766 Regular Council Meeting -February 3, 2009 -Page 110 of 263 83 TOWN OF MARANA, ARIZONA - COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE YEAR ENDED TUNE 30, 2008 Revenues: Sales tax Property tax Intergovernmental Licenses, fees & permits Fines, forfeitures & penalties Contributions Investment income Miscellaneous Total revenues Expenditures: Current - General government Public safety Highways and streets Community development Capital outlay Debt service - Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Face value of bonds issued Transfers in Total other financing sources (uses) Change in fund balances Fund balances, beginning of year as restated Fund balances, end of year Special Capital Revenue Debt Service Projects $ - $ - $ 10,608 - 422,922 37,079 566,974 - 1,922,870 - - 1,033,526 91,087 - - 643,498 - 100,000 3,288 135,638 391,433 26,220 - - 1,331,067 558,560 3,495,516 94,784 - 279,895 318,885 - - 80,939 - - 338,958 - - - - 6,815,693 - 2,090,229 - - 3,101,596 - 833,566 5,191,825 7,095,588 497,501 (4,633,265) (3,600,072) - - 3,075,000 12,188 4,183,058 - 12,188 4,183,058 3,075,000 509,689 (450,207) (525,072) 682,823 695,973 6,962,768 $ 1,192,512 $ 245,766 $ 6,437,696 • • Regular Council Meeting -February 3, 2009 -Page 111 of 263 84 • Total Non-Major Governmental Funds $ 10,608 460,001 2,489,844 1,033,526 91,087 743,498 530,359 26,220 5,385,143 374,679 318,885 80,939 338,958 • 6,815,693 2,090,229 3,101,596 13,120,979 (7,735,836) 3,075,000 4,195,246 7,270,246 (465,590) 8,341,564 $ 7,875,974. Regular Council Meeting -February 3, 2009 -Page 112 of 263 85 rr I~ (,Aj ~! {~~/~ +4f Y V 1f/ ~ 1 TC}WN QF MARANA Regular Council Meeting -February 3, 2009 -Page 113 of 263 • 86 NON-MA]OR SPECIAL REVENUE FUNDS Federal Grant Funds -includes the Community Development Block Grants, the HOME Program, HIDTA, and MANTIS Grant. The separate funds have been established to account for grant revenues and to provide compliance with Federal grant regulations. Other Grant Funds -includes COPS Grant, JCEF Court fund, RICO, Auto Theft, Highway User Revenue, Local Transportation, Fill The Gap and Local Technology -Courts Funds. These funds . are non-federal funds required by Arizona Statues to be used for police, public works, or magistrate court expenditures. • Regular Council Meeting -February 3, 2009 -Page 114 of 263 87 TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET -NON-MA70R SPECIAL REVENUE FUNDS )UNE 30, 2008 • Community Development Affordable Block Grant Housing JCEF Court RICO ASSETS Cash and cash equivalents $ 109,249 $ 66,509 $ 30,545 $ 30,461 Accounts receivable - - - - Due from governments 9,413 - - - Restricted cash and investments - - - 58,555 Total assets $ 118,662 $ 66,509. $ 30,545 $ 89,016 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 77,182 $ 7,631 $ - $ - Due to other funds - - - - Totalliabilities 77,182 7,631 - - Fund balances: Unreserved 41,480 58,878 30,545 89,016 Total fund balances 41,480 58,878 30,545 89,016 Total liabilities and fund balances $ 118,662 $ 66,509 $ 30,545 $ 89,016 • • Regular Council Meeting -February 3, 2009 -Page 115 of 263 88 • Local Local HIDTA MANTIS Auto Theft Transportation Fill-the-Gap Technology $ 125,435 $ - $ - $ 296,312 $ 26,428 $ 185,040 - 2,861 - - 1,819 - 12,564 - - - - - $ 137,999 $ 2,861 $ - $ 296,312 $ 28,247 $ 185,040 $ - $ 466 $ - $ 73,547 $ - $ - - 90,484 6,872 - - - - 90,950 6,872 73,547 - - 137,999 (88,089) (6,872) 222,765 28,247 185,040 137,999 (88,089) (6,872) 222,765 28,247 185,040 $ 137,999 $ 2,861 $ - $ 296,312 $ 28,247 $ 185,040 • Regular Council Meeting -February 3, 2009 -Page 116 of 263 (Continued) 89 TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET -NON-MA70R SPECIAL REVENUE FUNDS TUNE 30, 2008 (Concluded) ASSETS Cash and cash equivalents Accounts receivable Due from governments Restricted cash and investments Total assets LIABILITIES AND FUND BALANCES Liabilities: Other Special Revenue Fund Totals $ 461,096 $ 1,331,075 9,059 13,739 2,701 24,678 20,647 79,202 $ 493,503 $ 1,448,694 Accounts payable $ - $ 158,826 Due to other funds ~ - 97,356 Total liabilities - 256,182 Fund balances: Unreserved 493,503 1,192,512 Total fund balances 493,503 1,192,512 Total liabilities and fund balances $ 493,503 $ 1,448,694 Regular Council Meeting -February 3, 2009 -Page 117 of 263 • 90 .,~ ~..~ • Regular Council Meeting -February 3, 2009 -Page 118 of 263 91 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MA)ORSPEOIAL REVENUE FUNDS YEAR ENDED )UNE 30, 2008 Revenues: Intergovernmental Fines, forfeitures & penalties Contributions Investment income Miscellaneous Total revenues Expenditures: Current - General government Public safety Highways and streets Community development Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Change in fund balances Fund balances (deficits), beginning of year Fund balances (deficits), end of year Community Development Affordable Block Grant Housing ]CEF Court $ 183,902 $ - $ - - - 12,653 - 26,220 - 183,902 26,220 12,653 - - 20,992 163,454 175,504 - 163,454 175,504 20,992 20,448 (149,284) (8,339) 20,448 (149,284) (8,339) 21,032 208,162 38,884 $ 41,480 $ 58,878 $ 30,545 •i • • Regular Council Meeting -February 3, 2009 -Page 119 of 263 92 i• Local RICO HIDTA MANTIS Auto Theft Transportation Fill-the-Gap $ 35,804 $ 54,440 $ 24,482 $ 37,815 $ 188,463 $ - - - - - - 6,495 43,476 - - - - - 3,263 - - - - - 82,543 54,440 24,482 37,815 188,463 6,495 67,900 - 102,973 61,142 - - - - - - 80,939 - 67,900 - 102,973 61,142 80,939 - 14,643 54,440 (78,491) (23,327) 107,524 6,495 • - - - - 12,188 - - - - - 12,188 - 14,643 54,440 (78,491) (23,327) 119,712 6,495 74,373 83,559 (9,598) 16,455 103,053 21,752 $ 89,016 $ 137,999 $ (88,089) $ (6,872) $ 222,765 $ 28,247 i• Regular Council Meeting -February 3, 2009 -Page 120 of 263 (Continued) 93 TOWN OF MARANA, ARI20NA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MA70R SPECIAL REVENUE FUNDS . YEAR ENDED TUNE 30, 2008 (Concluded) Revenues: Intergovernmental. Fines, forfeitures & penalties Contributions Investment income Miscellaneous Total revenues Local Other Special Technology Revenue Fund $ - $ 42,067 $ 566,973 71,939 - 91,087 - 600,023 643,499 - 25 3,288 - - 26,220 71,939 642,115 1,331,067 Expenditures: Current - General government - 73,792 94,784 Public safety - 86,870 318,885 Highways and streets - - 80,939 Community development - - 338,958 Total expenditures - 160,662 833,566 Excess (deficiency) of revenues over expenditures 71,939 481,453 497,501 • Other financing sources (uses): Transfers in - - 12,188 Total other financing sources (uses) - - 12,188 Change in fund balances 71,939 481,453 509,689 Fund balances (deficits), beginning of year 113,101 12,050 682,823 Fund balances (deficits), end of year $ 185,040 $ 493,503 $ 1,192,512 • Totals Regular Council Meeting -February 3, 2009 -Page 121 of 263 94 • • • Regular Council Meeting -February 3, 2009 -Page 122 of 263 95 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2008 Revenues: Intergovernmental Miscellaneous Total revenues Expenditures: Current - Community development Capital outlay Total expenditures Change in fund balances Fund balances (deficits), July 1, 2007 Community Development Block Grant ariance - Original Positive Budget Final Budget Actual (Negative) $ 275,000 $ 275,000 $ 183,902 $ (91,098) 275,000 275,000 183,902 (91,098) 175,000 175, 000 163,454 11, 546 100,000 100,000 - 100,000 275,000 275,000 163,454 111,546 20,448 20,448 21,032 21,032 • • Fund balances (deficits), June 30, 2008 $ - $ - $ 41,480 $ 41,480 • Regular Council Meeting -February 3, 2009 -Page 123 of 263 96 • Affordable Housing Revolving Fund Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ 10,000 10,000 26,220 16,220 10,000 10,000 26,220 .16,220 50,000 110,000 175,504 (65,504) 50,000 110,000 .175,504 (65,504) (40,000) (100,000) (149,284) (49,284) 140,000 140,000 208,162 68,162 $ 100,000 $ 40,000 $ 58,878. $ 18,878 • (continued) Regular Council Meeting -February 3, 2009 -Page 124 of 263 97 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2008 (Continued) JCEF Court Variance - Original Positive Budget Final Budget Actual (Negative) Revenues: •i .Intergovernmental $ - $ - $ - $ - Fines, forfeitures & penalties 12,250 12,250 12,653 403 Contributions - - - - Investment income - - - - Total revenues 12,250 12,250 12,653 403 Expenditures: Current - General government 12,250 12,250 20,992 (8,742) Public safety - - - - Total expenditures 12,250 12,250 20,992 (8,742) Change in fund balances - - (8,339) (8,339) Fund balances (deficits), July 1, 2007 - - 38,884 38,884 • Fund balances (deficits), June 30, 2008 $ - $ - $ 30,545 $ 30,545 Regular Council Meeting -February 3, 2009 -Page 125 of 263 • 98 • RICO ariance - Original Positive Budget Final Budget Actual (Negative) $ 20,000 $ 20,000 $ 35,804 $ 15,804 - - 43,476 43,476 - - 3,263 3,263 20,000 20,000 82,543 62,543 108,602 108,602 67,900 40,702 108,602 108,602 67,900 40,702 (88,602) (88,602) 14,643 103,245 • 88,602 88,602 74,373 14,229 $ - $ - $ 89,016 $ 89,016 • w (continued) Regular Council Meeting -February 3, 2009 -Page 126 of 263 99 TOWN OF MARANA, ARI20NA COMBINING SCH EDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA70R SPECIAL REVENUE FU NDS YEAR ENDED TUNE 30, 2008 • (Continued) HIDTA arlance - Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental $ 52,000 $ 52,000 $ 54,440 $ 2,440 Total revenues 52,000 52,000 54,440 2,440 Expenditures: Current - Public safety 47,653 47,653 - 47,653 Total expenditures 47,653 47,653 - 47,653 Change in fund balances 4,347 4,347 54,440 50,093 Fund balances (deficits), 7uly i, 2007 - - 83,559 83,559 Fund balances (deficits), Tune 30, 2008 $ 4,347 $ 4,347 $ 137,999 $ 133,652 • fir • Regular Council Meeting -February 3, 2009 -Page 127 of 263 100 C~ MANTIS ariance - Original Positive Budget Final Budget Actual (Negative) $ 61,975 $ 61,975 $ 24,482 $ (37,493) 61,975 61,975 24,482 (37,493) 61,975 61,975 102,973 (40,998) 61,975 61,975 102,973 (40,998) - - (78,491) (78,491) (9,598) (9,598) • $ - $ - $ (88,089) $ (88,089) • (continued) Regular Council Meeting -February 3, 2009 -Page 128 of 263 101 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA]OR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2008 (Continued) Auto Theft Variance - Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental $ 61,975 $ 61,975 $ 37,815 $ (24,160) Total revenues 61,975 61,975 37,815 (24,160) Expenditures: Current - Public safety Highways and streets Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Change in fund balances - - (23,327) (23,327) Fund balances (deficits), ]uly 1, 2007 - - 16,455 16,455 Fund balances (deficits), June 30, 2008 $ - $ - $ (6,872) $ (6,872) • • • 61,975 61,975 61,142 833 61,975 61,975 61,142 833 - - (23,327) (23,327) Regular Council Meeting -February 3, 2009 -Page 129 of 263 102 • • • Local Transportation Assistance Fund vanance- Original Positive Budget Final Budget Actual (Negative) $ 139,711. $ 139,711 $ 188,463 $ 48,752 139,711 139,711 188,463 48,752 154,475 154,475 80,939 73,536 154,475 154,475 80,939 73,536 (14,764) (14,764) 107,524 122,288 12,188 12,188 12,188 12,188 (14,764) (14,764) 119,712 134,476 14,764 14,764 103,053 88,289 $ - $ - $ 222,765 $ 222,765 (continued) Regular Council Meeting -February 3, 2009 -Page 130 of 263 103 TOWN OF MARANA, ARI20NA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2008 (Continued) Fill-the-Gap Variance - Original Positive Budget Final Budget Actual (Negative) Revenues: Fines, forfeitures & penalties $ 5,000 $ 5,000 $ 6,495 $ 1,495 Total revenues 5,000 5,000 6,495 1,495 Expenditures: Current - General government 5,000 5,000 - 5,000 Total expenditures 5,000 5,000 - 5,000 Change in fund balances - - 6,495 6,495 Fund balances (deficits), July 1, 2007 - - 21,752 21,752 Fund balances (deficits), June 30, 2008 $ - $ - $ 28,247 $ 28,247 • Regular Council Meeting -February 3, 2009 -Page 131 of 263 104 Local Technolo y ariance - Original Positive Budget Final Budget Actual (Negative) $ 59,950 $ 59,950 $ 71,939 $ 11,989 59,950 59,950 71,939 11,989 59,950 59,950 - 59,950 59,950 59,950 - 59,950 50,712 71,939 21,227 - - 113,101 113,101 • $ - $ 50,712 $ 185,040 $ 134,328 C7 Regular Council Meeting -February 3, 2009 -Page 132 of 263 105 TOWN OF MARANA, ARI20NA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA]OR SPECIAL REVENUE FUNDS YEAR ENDED ]UNE 30, 2008 (Concluded) Other Special Revenue Fund Variance - Original Positive Budget Final Budget Actual (Negative) Revenues: Intergovernmental $ - $ - $ 42,067 $ 42,067 Fines, forfeitures & penalties - - - - Contributions 1,000,000 1,000,000 600,023 (399,977) Investment income - - 25 25 Miscellaneous - - - - Total revenues 1,000,000 1,000,000 642,115 (357,885) Expenditures: Current - General government Public safety Highways and streets Community development Capital outlay Total expenditures Change in fund balances Other financing sources (uses): Transfers in Total other financing sources (uses) Change in fund balances 1,100,000 1,100,000 73,792 1,026,208 - - 86,870 (86,870) 1,100,000 1,100,000 160,662 939,338 (100,000) (100,000) 481,453 581,453 Fund balances (deficits), ]uly 1, 2007 100,000 100,000 12,050 (87,950) Fund balances (deficits), ]une 30, 2008 $ - $ - $ 493,503 $ 493,503 Regular Council Meeting -February 3, 2009 -Page 133 of 263 •i •i 106 ~i Totals variance - Original Positive Budget Final Budget Actual (Negative) $ 610,661 $ 610,661 $ 566,973 $ (43,688) 77,200 77,200 91,087 13,887 1,000,000 1,000,000 643,499 (356,501) - - 3,288 3,288 10,000 10,000 26,220 16,220 1,697,861 1,697,861 1,331,067 (366,794) 1,177,200 1,177,200 94,784 1,082,416 280,205 280,205 318,885 (38,680) 154,475 154,475 80,939 73,536 225,000 285,000 338,958 (53,958) 100,000 100,000 - 100,000 1,936,880 1,996,880 833,566 1,163,314 (239,019) (299,019) 497,501 796,520 - 12,188 12,188 - 12,188 12,188 (239,019) (299,019) 509,689 808,708 343,366 343,366 682,823 339,457 $ 104,347 $ 44,347 $ 1,192,512 $ 1,148,165 • Regular Cpuncil Meeting -February 3, 2009 -Page 134 of 263 107 • • Regular Council Meeting -February 3, 2009 -Page 135 of 263 108 • NON-MA7OR DEBT SERVICE FUNDS Debt Service Funds are created to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. 1997 Bond Debt Service Fund -this fund accounts for the accumulation of resources and payment of principal and interest on the series 1997 revenue bonds. The Town has pledged Town sales tax revenue, state shared revenues licenses, fees and permits revenue, and fines, forfeitures and penalties revenue to make the required payments for this series. 2003 Bond Debt Service Fund -this fund accounts for the accumulation of resources and payment of principal and interest on the Series 2003 Revenue Bonds. The Town has pledged Town sales tax revenue, state shared revenues, licenses, fees and permits revenue, and fines, forfeitures and penalties revenue to make the required payments for this series. • 2004 Bond Debt Service Fund -this fund accounts for the accumulation of resources and payment of principal and interest on the series 2004 revenue bonds. The Town has pledged Town sales tax revenue, state shared revenues, licenses, fees and permits revenue, and fines, forfeitures and penalties revenue to make the required payments .for this series. Gladden Farms Debt Service Fund -this fund accounts for the accumulation of resources and payment of principal and interest on the Gladden Farms general obligation bonds. • Regular Council Meeting -February 3, 2009 -Page 136 of 263 109 TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET -NON-MA70R DEBT SERVICE FUNDS TUNE 30, 2008 ASSETS Cash and cash equivalents Taxes receivable Interest receviable Prepaid items Restricted cash and investments Total assets 1997 Bond 2003 Bond 2004 Bond Debt Service Debt Service Debt Service $ 1,254 $ 70,432 $ 1,848 28 96 45 203,436 685,640 322,225 $ 204,718 $ 756,168 $ 324,118 Other Debt Service LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Deferred revenue Bonds payable Bond interest payable Total liabilities Fund balances: Reserved for prepaid items Reserved for debt service Total fund balances Total liabilities and fund balances $ - 1,125 $ 1,125 $ - $ - $ - $ 2,905 - - - 7,370 110,000 275,000 140,000 - 93,334 410,291 182,064 - 203,334 685,291 322,064 10,275 - - - 1,125 1,384 70,877 2,054 (10,275) 1,384 70,877 2,054 (9,150) $ 204,718 $ 756,168 $ 324,118 $ 1,125 • • Regular Council Meeting -February 3, 2009 -Page 137 of 263 110 • • Gladden Farms Debt Service Totals $ 21,455 $ 94,989 1,659 1,659 1,252 1,421 - 1,125 968,997 2,180,298 $ 993,363 $ 2,279,492 $ - $ 2,905 - 7,370 531,862 531,862 50,000 575,000 230,900 916,589 812,762 2,033,726 - 1,125 180,601 244,641 180,601 245,766 $ 993,363 $ 2,279,492 Regular Council Meeting -February 3, 2009 -Page 138 of 263 111 TOWN OF MARANA, ARIZONA i COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MA7OR DEBT SERVICE FUNDS YEAR ENDED TUNE 30, 2008 1997 Bond 2003 Bond 2004 Bond Revenues: Property Taxes $ - $ - $ - Investment income - - - Total revenues - - - Expenditures: Debt service - Principal retirement 215,000 550,000 275,000 Interest and fiscal charges 190,179 826,552 369,097 Total expenditures 405,179 1,376,552 644,097 Excess (deficiency) of revenues over expenditures (405,179) (1,376,552) (644,097) Other financing sources (uses): Transfers in 404,577 875,000 645,000 Total other financing sources (uses) 404,577 875,000 645,000 Change in fund balances (602) (501,552) 903 Fund balances, beginning of year as restated 1,986 572,429 1,151 Fund balances, end of year $ 1,384 $ 70,877 $ 2,054 Regular Council Meeting -February 3, 2009 -Page 139 of 263 • •i •i 112 C7 Gladden Other. Debt Farms Debt Service Service Totals $ - $ 422,922 $ 422,922 - 135,638 135,638 - 558,560 558,560 1,000,229 50,000 2,090,229 1,267,402 448,366 3,101,596 2,267,631 498,366 5,191,825 (2,267,631) 60,194 (4,633,265) 2,258,481 - 4,183,058 • 2,258,481 - 4,183,058 .(9,150) 60,194 (450,207) - 120,407 695,973 $ (9,150) $ 180,601 $ 245,766 Regular Council Meeting -February 3, 2009 -Page 140 of 263 113 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA]OR DEBT SERVICE FUNDS YEAR ENDED ]UNE 30, 2008 Revenues: Property Taxes Intergovernmental Contributions Investment income Total revenues Expenditures: Debt service - Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in 1997 Bond Debt Service Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ - 215,000 215,000. 215,000 - 189,450 189,450 190,179 (729) 404,450 404,450 405,179 (729) (404,450) (404,450) (405,179) (729) 643,577 643,577 404,577. (239,000) Total other financing sources (uses) 643,577 643,577 404,577 (239,000) Change in fund balances 239,127 239,127 (602) (239,729) Fund balances, ]uly 1, 2007 - - 1,986 1,986 Fund balances, ]une 30, 2008 $ 239,127 $ 239,127 $ 1,384 $ (237,743) Regular Council Meeting -February 3, 2009 -Page 141 of 263 • • • 114 • 2003 Bond Debt Service Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ - 545,000 545,000 550,000 (5,000) 830,500 830,500 826,552 .3,948 1,375,500 1,375,500 1,376,552 (1,052) (1,375,500) (1,375,500) (1,376,552) (1,052) • 875,500 875,500 875,000 500 875,500 875,500 875,000 500 (500,000) (500,000) (501,552) (1,552) 500,000 500,000 572,429 72,429 $ - $ - $ 70,877 $ 70,877 • (Continued) Regular Council Meeting -February 3, 2009 -Page 142 of 263 115 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MAJOR DEBT SERVICE FUNDS YEAR ENDED TUNE 30, 2008 (Continued) 2004 Bond Debt Service Revenues: Property Taxes Intergovernmental Contributions Investment income Total revenues Expenditures: Debt service - Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ - 275,000 275,000 275,000 - 366,500 366,500 369,097 (2,597) 641,500 641,500 644,097 (2,597) (641,500) (641,500) (644,097) (2,597) Transfers in 645,000 645,000 645,000 - Total other financing sources (uses) 645,000 645,000 645,000 - Change in fund balances 3,500 3,500 903 (2,597) Fund balances, July 1, 2007 - - 1,151 1,151 Fund balances, June 30, 2008 $ 3,500 $ 3,500 $ 2,054 1,446 Regular Council Meeting -February 3, 2009 -Page 143 of 263 • • • 116 Other Debt Service Variance - Positive Original Budget Final Budget Actual (Negative) $ - $ - $ - $ - 900,000 900,000 - (900,000) 900,000 900,000 - (900,000) 4,008,482 3,936,482 1,000,229 2,936,253 - 72,000 1,267,402 (1,195,402) 4,008,482 4,008,482 2,267,631 1,740,851 (3,108,482) (3,108,482) (2,267,631) 840,851 • - - 2,258,481 2,258,481 - - 2,258,481 2,258,481 (3,108,482) (3,108,482) (9,150) 3,099,332 $ (3,108,482) $ (3,108,482) $ (9,150) $ 3,099,332 • (Continued) Regular Council Meeting -February 3, 2009 -Page 144 of 263 117 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA]OR DEBT SERVICE FUNDS YEAR ENDED ]UNE 30, 2008 (Concluded) Revenues: Property Taxes Intergovernmental Contributions Investment income Total revenues Expenditures: Debt service - Principal retirement Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Change in fund balances Fund balances, ]uly 1, 2007 as restated Fund balances, ]une 30, 2008 Gladden Farms Debt Service Variance - Original Positive Budget Final Budget Actual (Negative) $ 489,233 $ 489,233 $ 422,922 $ (66,311) 23,014 23,014 - .(23,014) - - 135,638 135,638 512,247 512,247 558,560 46,313 45,000 45,000 50,000 (5,000) 467,247 467,247 448,366 18,881 512,247 512,247 498,366 13,881 - - 60,194 60,194 - - 60,194 60,194 120,000 120,000 120,407 407 $ 120,000 $ 120,000 $ 180,601 $ 60,601 Regular Council Meeting -February 3, 2009 -Page 145 of 263 • • 118 Totals Variance - Positive Original Budget Final Budget Actual (Negative) $ 489,233 $ 489,233 $ 422,922 $ - 900,000 900,000 - 900,000 23,014 23,014 - 23,014 - - 135,638 (135,638) 1,412,247 1,412,247 558,560 787,376 5,088,482 5,016,482 2,090,229 - 1,853,697 1,925,697 3,101,596 857 6,942,179 6,942,179 5,191,825 857 (5,529,932) (5,529,932) (4,633,265) 896,667 • 2,164,077 2,164,077 4,183,058 - 2,164,077 2,164,077 4,183,058 - (3,365,855) (3,365,855) (450,207) 2,915,648 620,000 620,000 695,973 75,973 $ (2,745,855) $ (2,745,855) $ 245,766 $ 2,991,621 • Regular Council Meeting -February 3, 2009 -Page 146 of 263 119 • ~: ~1 ~~~~~~ ~~~~ TOWN OF MARANA Regular Council Meeting -February 3, 2009 -Page 147 of 263 • • 120 • NON-MA7OR CAPITAL PROJECTS FUND Capital Projects Funds are created to account for the purchase or construction of major. capital facilities which are not financed by the general, enterprise, or special revenue funds. North Benefit Area Impact Fees -this fund accounts for the financing and construction of transportation projects that are defined within the benefit area. Park Impact Fees Fund -this fund accounts for park impact fees collected by the Town and utilized for authorized capital improvements. Pima County Bond Fund -this fund accounts for the financing and construction of projects funded through Pima County Bond program. • PAG Capital Fund -this fund accounts for proceeds from Pima Association of Governments which is used for the Thornydale Road and Silverbell Road Improvements Projects. Sales Tax Capital Fund -this fund accounts for sales tax proceeds which are used for authorized capital improvements. Gladden Farms Capital Fund -this fund accounts for the proceeds from the sale of general obligation bonds which are used for authorized capital improvements. Vanderbilt Farms Capital Fund -this fund accounts for the proceeds from property tax revenues to be used for authorized capital improvements. Regular Council Meeting -February 3, 2009 -Page 148 of 263 121 TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET -NON-MAJOR CAPITAL PR0.7ECTS FUNDS DUNE 30, 2008 ASSETS Cash and cash equivalents Accounts receivable Interest receivable Due from governments Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Deferred revenue Total liabilities Fund balances: Unreserved Total fund balances Total liabilities and fund balances North Benefit Area Impact Fees $ 1,274,707 1,274,707 Park Impact Pima County Fees Bond Capital $ 3,704,861 $ - 9,436 - - 193,215 3,714,297 193,215 $ 7,436 $ 2,762 $ 223,949 - - 793,150 7,436 2,762 1,017,099 1,267,271 3,711,535 (823,884) 1,267,271 3,711,535 (823,884) $ 1,274,707 $ 3,714,297 $ 193,215 •i •i •i Regular Council Meeting -February 3, 2009 -Page 149 of 263 122 ., .~ • Gladden Vanderbilt PAG Capital Sales Tax Capital Farms Capital Farms Capital Totals $ - $ 5,028,538 $ 136,299 $ 26,302 $ 10,170,707 - - 199 22 221 - 16,491 - - 25,927 1,534,510 - - - 1,727,725 1,534,510 5,045,029 136,498 26,324 11,924,580 $ 326,782 2,881,451 1,250,260 4,458,493 $ - $ 1,002 $ ~,.. 92 $ 562,023 - 3,674,601 - 1,250,260 92 5,486,884 (2,923,983) 5,045,029 135,496 26,232 6,437,696 (2,923,983) 5,045,029 135,496 26,232 6,437,696 $ 1,534,510 $ 5,045,029 $ 136,498 $ 26,324 $ 11,924,580 Regular Council Meeting -February 3, 2009 -Page 150 of 263 123 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR CAPITAL PROJECTS FUNDS • YEAR ENDED JUNE 30, 2008 North Benefit Area Impact Park Impact Pima County Fees Fees Bond Capital Revenues: Sales tax $ - $ - $ - Property tax - - - Intergovernmental - - 913,662 Licenses, fees & permits 367,689 665,837 -- Contributions - - 25,000 Investment income - 118,722 - Total revenues 367,689 784,559 938,662 Expenditures: Current - General government - 44,140 - Capital outlay 59,130 142,070 1,435,492 Total expenditures 59,130 186,210 1,435,492 Excess (deficiency) of revenues over expenditures 308,559 598,349 (496,830) Other financing sources (uses): • Face value of bonds issued - - - Total other financing sources (uses) - - - Change in fund balances 308,559 598,349 (496,830) Fund balances (deficits), beginning of year 958,712 3,113,186 (327,054) Fund balances (deficits), end of year $ 1,267,271 $ 3,711,535 $ (823,884) Regular Council Meeting -February 3, 2009 -Page 151 of 263 124 • Sales Tax Gladden Farms Vanderbilt PAG Capital Capital Capital Farms Capital Totals $ - $ 10,608 $ - $ - $ 10,608 - - 35,093 1,986 37,079 1,009,208 - - - 1,922,870 - - - - 1,033,526 - - 75,000 - 100,000 - 269,973 2,215 523 391,433 1,009,208 280,581 112,308 2,509 3,495,516 - - 235,619 136 279,895 2,168,859 169,204 2,840,938 - 6,815,693 2,168,859 169,204 3,076,557 136 7,095,588 • (1,159,651) 111,377 (2,964,249) 2,373 (3,600,072) - - 3,075,000 3,075,000 - - 3,075,000 - 3,075,000 (1,159,651) 111,377 110,751 2,373 (525,072) (1,764,332) 4,933,652 24,745 23,859 6,962,768 $ (2,923,983) $ 5,045,029 $ 135,496 $ 26,232 $ 6,437,696 • Regular Council Meeting -February 3, 2009 -Page 152 of 263 125 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MAJOR CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 2008 North Benefit Area Impact Fees Revenues: Sales tax Property tax Intergovernmental Licenses, fees & permits Contributions Investment income Total revenues Expenditures: Current - General government Culture and recreation Capital outlay Debt service - Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Face value of bonds issued Total other financing sources (uses) Change in fund balances Fund balances (deficits), July 1, 2007 Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ - 662,457 662,457 367,689 (294,768) 42,98.1 42,981 - (42,981) 705,438 705,438 367,689 (337,749) 600,000 600,000 59,130 540,870 105,438 105,438 308,559 203,121 105,438 105,438 308,559 203,121 948,169 948,169 958,712 10,543 Fund balances (deficits), June 30, 2008 $ 1,053,607 $ 1,053,607 $ 1,267,271 $ 213,664 Regular Council Meeting -February 3, 2009 -Page 153 of 263 • • • 126 Park Impact Fees Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ 920,767 920,767 665,837 (254,930) 158,890 158,890 118,722 (40,168) .1,079,657 1,079,657 784,559 (295,098) 120,000 120,000 44,140 75,860 675,000 675,000 142,070 532,930 795,000 795,000 186,210 608,790 • 284 657 284 657 598 349 313 692 284,657 284,657 598,349 313,692 3,215,423 3,215,423 3,113,186 (102,237) $ 3,500,080 $ 3,500,080 $ 3,711,535 $ 211,455 • Regular Council Meeting -February 3, 2009 -Page 154 of 263 (Continued) 127 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA]OR CAPITAL PRO]ECTS FUNDS YEAR ENDED ]UNE 30, 2008 (Continued) • Pima County Bond Capital Variance - Original Positive Budget Final Budget Actual (Negative) Revenues: Sales tax $ - $ - $ - $ - Property tax - - - - Intergovernmental 4,960,000 4,960,000 913,662 (4,046,338) Licenses, fees & permits - - - - Contributions - - 25,000 25,000 Investment income - ~ - - - Total revenues 4,960,000 4,960,000 938,662 (4,021,338) Expenditures: Current - General government Culture and recreation Capital outlay Debt service - Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Face value of bonds issued Total other financing sources (uses) 4,960,000 4,960,000 1,435,492 3,524,508 4,960,000 4,960,000 1,435,492 3,524,508 - - (496,830) (496,830) Change in fund balances Fund balances (deficits), ]uly 1, 2007 - (496,830) (496,830) - (327,054) (327,054) Fund balances (deficits), ]une 30, 2008 $ - $ - $ (823 884) $ (823,884) •i •i •i Regular Council Meeting -February 3, 2009 -Page 155 of 263 128 i• i• i• PAG Capital Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ - 18,956,740 18,956,740 1,009,208 (17,947,532) 18,956,740 18,956,740 1,009,208 (17,947,532) 18,956,740 18,956,740 2,168,859 16,787,881 18,956,740 18,956,740 2,168,859 16,787,881 - - (1,159,651) (1,159,651) - - (1,159,651) (1,159,651) - - (1,764,332) (1,764,332) $ - $ - $ (2,923,983) $ (2,923,983) Regular Council Meeting -February 3, 2009 -Page 156 of 263 129 (Continued) TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA]OR CAPITAL PRO]ECTS FUNDS • YEAR ENDED TUNE 30, 2008 (Continued) Sales Tax Capital Revenues: Sales tax Property tax Intergovernmental Licenses, fees & permits Contributions Investment income Total revenues Expenditures: Current - General government Culture and recreation Capital outlay Debt service - Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Face value of bonds issued Total other financing sources (uses) Change in fund balances Fund balances (deficits), ]uly 1, 2007 Variance - Original Positive Budget Final Budget Actual (Negative) $ 59,101 $ 59,101 $ 10,608 $ (48,493) 86,420 86,420 269,973 183,553 145,521 145,521 280,581 135,060 5,000,000 5,000,000 169,204 4,830,796 (4,854,479) (4,854,479) 111,377 4,965,856 (4,854,479) (4,854,479) 111,377 4,965,856 5,014,888 5,014,888 4,933,652 81,236 Fund balances (deficits), ]une 30, 2008 $ 160,409 $ 160,409 $ 5,045,029 $ 5,047,092 Regular Council Meeting -February 3, 2009 -Page 157 of 263 •i • 130 Gladden Farms Capital Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ - $ - $ - 58,708 58,708 35,093 (23,615) 323,000 323,000 75,000 (248,000) - - 2,215 2,215 381,708 381,708 112,308 (269,400) 417,000 417,000 235,619 181,381 2,995,208 2,995,208 2,840,938 154,270 4,500 4,500 - 4,500 3,416,708 3,416,708 3,076,557 340,151 3 035 000 3 035 000 2 964 249 70 751 3,035,000 3,035,000 3,075,000 40,000 3,035,000 3,035,000 3,075,000 40,000 - - 110,751 110,751 - - 24,745 24,745 $ - $ - $ 135,496 $ 135,496 • Regular Council Meeting -February 3, 2009 -Page 158 of 263 (Continued) 131 TOWN OF MARANA, ARIZONA COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL -NON-MA]OR CAPITAL PRO]ECTS FUNDS • YEAR ENDED ]UNE 30, 2008 (Concluded) Revenues: Sales tax Property tax Intergovernmental Licenses, fees & permits Contributions Investment income Total revenues Expenditures: Current - General government Culture and recreation Capital outlay Debt service - Bond issuance costs Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Face value of bonds issued Total other financing sources (uses) Change in fund balances Fund balances (deficits), ]uly 1, 2007 Vanderbilt Farms Capital Variance - Original Positive Budget Final Budget Actual (Negative) $ - $ 3,397 $ - $ (3,397) 3,397 - 1,986 1,986 - 1,000,000 - (1,000,000) 1,000,000 - - - - 1,008 523 (485) 1,003,397 1,004,405 2,509 (1,001,896) 315,000 315,000 136 314,864 2,795,000 2,795,000 - 2,795,000 3,110,000 3,110,000 (2,106,603) (2,105,595) 2,373 2,107,968 136 3,109,864 3,050,000 3,050,000 - (3,050,000) 3,050,000 3,050,000 - (3,050,000) 943,397 944,405 2,373 (942,032) 23,859 23,859 Fund balances (deficits), ]une 30, 2008 $ 943,397 $ 944,405 $ 26,232 $ (918,173) • Regular Council Meeting -February 3, 2009 -Page 159 of 263 132 • Totals Variance - Original Positive Budget Final Budget Actual (Negative) $ 59,101 $ 62,498 $ 10,608 $ (51,890) 62,105 58,708 37,079 (21,629) 23,916,740 23,916,740 1,922,870 (21,993,870) 1,583,224 2,583,224 1,033,526 (1,549,698) 1,323,000 323,000 100,000 (223,000) 288,291 289,299 391,433 102,134 27,232,461 27,233,469 3,495,516 (23,737,953) 732,000 732,000 235,755 496,245 .120,000 120,000 44,140 75,860 35,981,948 35,981,948 6,815,693 29,166,255 4,500 4,500 - 4,500 36,838,448 36,838,448 7,095,588 29,742,860 • (9,605,987) (9,604,979) .(3,600,072) 6,004,907 6,085,000 6,085,000 3,075,000 (3,010,000) 6,085,000 6,085,000 3,075,000 (3,010,000) (3,520,987) (3,519,979) (525,072) 2,994,907 9,178,480 9,178,480 6,962,768 (2,215,712) $ 5,657,493 $ 5,658,501 $ 6,437,696 $ 779,195 • Regular Council Meeting -February 3, 2009 -Page 160 of 263 133 • ~~~~f ~~ ~~~ TOWN OF MARANA Regular Council Meeting -February 3, 2009 -Page 161 of 263 • • 134 TOWN OF MARANA, ARIZONA STATISTICAL SECTION • JUNE 30, 2008 Statistical Section Financial presentations included in the Statistical Section provide data and information on the financial, physical, a and economic characteristics of the Town of Marana. The following schedules cover multiple fiscal years and provide users with a broader and more complete understanding of the Town and its financial affairs and economic condition. They also present detailed infromation as a context for understanding this year's financial statements, note disclosures, and required supplementary information. Schedule Page Financial Trends These schedules contain trend information to help users understand and assess how the Town's financial position has changed over time. Net Assets by Component -Last Five Fiscal Years 1 137 Changes in Net Assets -Last Five Fiscal Years 2 138 Governmental Activities Tax Revenues by Source -Last Five Years 3 140 Fund Balances of Governmental Funds -Last Five Fiscal Years 4 141 Changes in Fund Balances of Governmental Funds -Last Six Fiscal Years 5 142 Revenue Capacity These schedules contain information to help users understand and assess the Town's local revenue source, the property tax. Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable Property - 6 143 Last Ten Years Property Tax Rates -Direct and Overlapping Governments -Last Ten Years 7 144 and Nine Years Ago 8 145 • Property Tax Levies and Collections -Last Ten Fiscal Years 9 146 Debt Capacity These schedules present information to help users understand and assess the Town's debt burden and its ability to service current debt and to issue additional debt in the future. Ratios of Outstanding Debt by Type -Last Ten Fiscal Years 10 147 Ratios of General Bonded Debt Outstanding -Last Ten Fiscal Years 11 148 Direct and Overlapping Governmental Activities Debt 12 149 Pledged-Revenue Coverage -Last Ten Fiscal Years 13 150 Demographic and Economic Information These schedules present economic and demographic indicators to help users understand the environment within which the Town's financial activities take place. Demographic and Economic Statistics -Last Ten Fiscal Years 14 151 Principal Employers -Current Year and Nine Years Ago 15 152 Operating Information These schedules present information to help users understand the Town's operations and resources as well as to provide a context for understanding and assessing the Town's economic condition. Full-time Equivalent City Government Employees by Function -Last Five Fiscal Years 16 153 Other Information • These schedules present information to help users understand potential for growth and economic opportunites within the town. Sales Tax by Industry -Last Five Years 17 154 Principal Retail and Contracting Sales Taxpayers 18 155 Regular 6i~ieies~mtialyPar~Is 168shfS~n Years 19 156 135 • .® ~~ ~~~~~~ WVV~ TOWN OF MARANA Regular Council Meeting -February 3, 2009 -Page 163 of 263 • • 136 Schedule i TOWN OF MARANA NET ASSETS BY COMPONENT LAST FIVE FISCAL YEARS - (Accrual basis of accounting) (Amounts expressed in thousands) Fiscal Year 2004 2005 2006 2007 2008 (as restated) Governmental activities Invested in capital assets, net of related debt $ .20,044 $ 28,450 $ 73,954 $ 159,963 $ 184,386 Restricted - - 11,939 59,313 25,465 Unrestricted 25,044 31,044 33,018 (279) 22,320 Total governmental activities net assets 45,087 59,495 118,912 218,998 232,181 Business-type activities Invested in capital assets, net of related debt 11,749 11,657 14,990 25,522 32,341 Restricted - - - - 1,297 Unrestricted (2,091) (236) 131 966 (1,242) Total business-type activities net assets 9,658 11,421 15,122 26,488 32,396 Primary government Invested in capital assets, net of related debt 31,792 40,107 88,944 185,485 216,737 Restricted - - 11,939 59,313 26,762 Unrestricted 22,953 30,808 33,149 687 21,078 Total primary government net assets $ 54,745 $ 70,915 $ 134,033 $ 245,485 $ 264,577 *The Town implemented Government Accounting Standards Board Statement #34 effective fiscal year 2003. Therefore, any presentation based on the accrual basis of accounting will reflect five years of historical data; in contrast to any presentation based on the modified accrual basis of accounting which reflect ten years of historical data. • Regular Council Meeting -February 3, 2009 -Page 164 of 263 137 TOWN OF MARANA CHANGES IN NET ASSETS LAST FIVE FISCAL YEARS (Accrual basis of accounting) (Amounts expressed in thousands) Expenses Government activities: General government Development & planning services Town Attorney Public safety Magistrate court Highways and streets Health & Welfare *** Culture & recreation Economic & community development**** Interest on long-term debt Total government activities expenses Business-type activities: Airport Water Total business-type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services: General government Development & planning services Town attorney Public safety Magistrate court. Highways and streets Health & Welfare Culture and recreation Economic & community development Operating grants and contributions Capital grants and contributions Total government activites program revenues Business-type activites: Changes for services: Airport Water Capital grants and contributions Total business-type activity program revenues Total primary government program revenues Net (expense)/revenue Governmental activities Business-type activities Total primary government net expense Fiscal Year* 2004 2005 2006 2007 2008 $ 5,845 $ 6,175 $ 8,740 $ 10,134 $ 12,925 3,465 4,803 6,438 3,442 - 208 401 489 - - 5,305 6,309 8,948 .9,187 11,215 492 741 807 -, - 3,294 4,086 5,510 15,898 10,269 - - - - 130 2,079 2,642 3,307 3,557 3,978 275 238 256 375 8,643 689 1,709 1,816 2,297 2,500 21,650 27,105 36,311 44,891 49,660 391 564 837 1,028 1,196 1,730 1,974 2,629 3,227 3,276 2,122 2,538 3,466 4,255 4,472 $ 23,772 $ 29,643 $ 39,777 $ 49,146 $ 54,132 $ 1,797 $ 696 $ 472 $ 1,108 $ 899 1,050 3,153 5,969 4,718 - 70 26 13 - - 1,580 338 192 19 - 163 521 648 - - 801 3,933 590 5 - 577 722 191 208 200 - 77 51 2,380 534 785 450 1,404 4,700 4,323 3,135, 26,036 5,904 14,590 10,894 13,385 34,614 13,365 22,768 102 134 144 185 221 1,552 2,375 3,216 2,905 2,968 729 595 3,531 9,073 6,885 2,383 3,103 6,891 12,163 10,074 13,276 16,488 41,506 25,528 32,842 (10,756) (13,720) (1,697) (31,525) (26,892) 261 565 3,426 7,908 5,602 $ 10,495) $ (13,155) $ 1,729 $ (23,618) $ (21,290) • • Regular Council Meeting -February 3, 2009 -Page 165 of 263 138 Schedule 2 • •- • General Revenues and Other Changes in Net Assets Governmental activities: General revenues City sales taxes Property taxes Franchise fees Highway Users/Local Transit Assistance Funding State shared revenues Pima Association of Governments Funding Intergovernmental System development fees Investment income (loss) Miscellaneous Transfers Total governmental activities Business-type activities: General revenues Investment income Miscellaneous Transfers Total business-type activities Total primary government Change in Net Assets Fiscal Year* 2004 2005 2006 2007 2008 $ 20,059 $ 25,126 $ 34,167 $ 30,900 $ 27,173 - - - - 460 - - - - 309 2,471 1,285 1,253 2,068 - 2,938 1,803 3,634 6,894 7,397 1,418 - - - - - - - 4,810 - - 115 3,588 231 - 602 757 1,835 4,463 3,024 - - - 221 459 - - - 470 (160) 27,489 29,088 44,476 50,057 38,661 - - - - 110 - - - - 37 - - - (470) 160 - - - (470) 307 27,489 29,088 44,476 49,586 38,968 Governmental activities 16,733 15,368 42,779 18,531 11,769 Business-type activities 261 565 3,426 7,437 5,909. Total primary government $ 16,994 $ 15,933 $ 46,204 $ 25,968 $ 17,678 *The Town implemented Government Accounting Standards Board Statement #34 effective fiscal year 2003. Therefore, any presentation based on the accrual basis of accounting will reflect five years of historical data; in contrast to any presentation based on the modified accrual basis of accounting which reflect ten years of historical data. ** In prior fiscal years, 2003 through 2006, the functions of Town Attorney and Magistrate Court were reported separately. However, both functions have been consolidated as par of the General Government function, as per General Accounting and Financial Reporting standards. ***In prior fiscal years, 2003 througe 2008, programs and services offered by the Senior Center were included in the function of Culture and Recreation. Effective fiscal year 2008, these programs and services are reported under the function of Health and Welfare. ****In prior fiscal years, 2003 through 2007, the functions of Development and Planning Services and Economic Development were reported separately. Effective. fiscal year 2008, the functions were consolidated under one function, Economic and Community Development. In prior fiscal years, Highway Users Revenues and Local Transportation Assistance Funds were reported as general revenues. Effective fiscal year 2008, these revenues are being reported as program revenues. Regular Council Meeting -February 3, 2009 -Page 166 of 263 139 Schedule 3 TOWN OF MARANA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST FIVE FISCAL YEARS • (Accrual basis of accounting) -` (Amounts expressed in thousands) Fiscal Highway User Year Sales Tax Revenue taxes Total 2008 $ 27,173 $ 2,036 $ 29,209 2007 30,900 2,068 32,969 2006 34,167 1,253 35,420 2005 25,126 1,285 26,411 2004 20,059 2,471 22,530 *The Town implemented Government Accounting Standards Board Statement #34 effective fiscal year 2003. Therefore, any presentation based on the accrual basis of accounting will reflect five years of historical data; in constrast to any presentation based on the modified accrual basis of accounting which reflect ten years of historical data. Regular Council Meeting -February 3, 2009 -Page 167 of 263 140 N ~ ~ N+ -i~ N C71 d' ' 00 N b} iff if1- i~ M LA 00 O M N 01 d- +--~ +--~ M CI' ~--~ O +-a Cr ~ N ^ NON C11 O ' oD .--i O 0 O ^ ~ M ~ N . a , -i . -I I ~ ~T ~ ~ ' 00 00 ' CI- O M r\ d' N O +-i ,-~ r\ V7 M tD N ~ O n r\ N t0 t0 V1 .--I 00 O M M M N N O N .-I ,--~ M M Ln ifs '~ ii4 i~T ' 00 ' ~Otp~~DN N ~ ~ ~ .--I N O O . -i + -i L l1 07 d- l0 O M M O N M t0 N rl .--I N N M f!4 '~ Et} i~ O C71 C11 ' 01 ,-i tf1 N 00 r\ ~ 0 ~ O O 0 'n O r\ M 111 N N 0 ,-i n M N +--~ ~ i~ ifF H4 iii 0 Z ~ v ~ ~ ce ~ O ~ M V. C y I l1 M Cnr\~ i, -i L iO iO ~ O ~O Lff ri r\ N 3 1p Z •'~ V W W L 1p Z~ ' C: J O C N O M ~ 0 ~ ~ ~ Q W Q H~ O ' 0 1 O O ~ '~ v1 ~ ~- - d O Ia L V . Z Z Oy~ i X 3 01010 " LnOMO ~ v,i- ~„ o o~ ~~oo Z ~ i~ L~ ~ ifl- d O i~. O m OQ N 00 0 f7 ~ V p ~ r\ ~ ~ 0001 ' ~--~ O 01 O t 0 Ln Z V O CO oo N M ,-i N ra ,~ r1 rl M LL +~} i14 tfl- t~ 01 ~ N N ~ ~ M ~ 01 ' 00 01 ~ ~ M M r\ .--~ r~ ,--i .-~ ifs ~' i~ ~ C ~ w ~ +C Vf ' C ~ ++ C - C C C E N ~ '~ ~ Cw~' 6 i O ~ ~va~a~~a~ °' ~ Q~ ' ~ w C L ~ O i i~~ C .6 ~ ~ 01_ N a~.+ ~ ~ . u~ ~~c O1~ o 'a~ir° ~n a~ -p - ~~ pp v i ~ N N N ~~ N~ (n C~ 0 3 O Regular Council Meeting -February 3, 2~9 - Pag~ 68 of 2~ ~°, 141 Schedule 4 TOWN OF MARANA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST SEVEN FISCAL YEARS (Modified accrual basis of accounting) (Amounts expressed in thousands) Schedule 5 Fiscal Year 2002 2003 2004 2005 2006 2007 2008 Reveues Sales taxes $ 15,258 $ 17,336 $ 20,059 $ 25,126 $ 34,167 $ 30,900 $ 27,173 Propety taxes - - - - - - 460 Intergovenmentalrevenues 11,737 6,620 7,189 4,160 11,227 14,690 19,280 Licenses, fees and permits 5,380 6,065 6,264 7,914 6,201 10,109 3,341 Fines, fon`eitures and penalties 362 313 365 481 628 767 808 Charges for services - 148 116 113 220 380 980 Lease Income - 456 442 438 498 20 987 Contributions - - - - - 379 1,457 System development fees - - - 1,721 3,588 355 - Investment earnings 959 (213) 602 757 1,835 4,445 3,025 Miscellaneous 913 199 719 518 511 1,054 484 Total revenues 34,609 30,924 35,758 41,230 58,874 63,096 57,995 Expenditures General government 3,521 3,960 5,307 5,626 6,533 8,485 9,999 Public safety 4,070 4,254 4,865 5,325 7,125 7,910 10,500 Highways and streets 2,987 3,102 2,365 2,833 3,152 5,868 3,897 Health and welfare - - - - - 130 Economic and community development 4,519 2,578 3,101 4,050 5,615 3,345 4,910 Culture and recreation 1,399 1,673 1,705 2,045 2,574 2,894 3,267 Town attorney 371 354 208 365 427 - - Magistrate Court 386 441 480 557 704 - - Community development 306 316 275 202 217 343 - Capital outlay 14,100 16,414 18,808 29,084 13,062 32,710 57,213 Debt service Principal 1,441 1,533 1,569 1,489 3,450 3,477 2,129 Interest 807 758 689 1,611 1,785 2,453 3,121 Other charges 4 4 505 465 - 1,184 - Totalexpenditures 33,909 35,384 39,876 53,651 44,644 68,670 95,165 Excess of revenues over (under) expenditures 701 (4,461) (4,119) (12,421) 14,230 (5,574) (37,171) Other financing sources (uses) Transfers in 8,680 16,498 12,211 39,766 4,698 2,826 4,195 Transfers out (8,680) (17,601) (12,211) (39,766) (4,698) (2,355) (4,355) Bonds issued - - 19,700 10,780 - 29,024 3,075 Note Proceeds - - - 7,000 - - - Lease purchase proceeds 591 - - - - - - Premium on bonds issued - - - 307 - - - Discount on bonds issued - - (111) - - - - Payments to refunded bond escrow agent - - - (6,644) - - - Residual equity transfer out (1,845) - - - - - - Total other financing sources (uses) (1,254) (1,103) 19,589 11,443 - 29,494 2,915 Net change in fund balance Debt service as a percentage of noncapital expenditures $ (553) $ (5,564) $ 15,470 $ (978) $ 14,230 $ 23,920 $ (34,256) 12.8% 13.8% 15.1% 17.0% 19.9% 24.7% 16.1% / 1 J • • Regular Council Meeting -February 3, 2009 -Page 169 of 263 142 Schedule 6 TOWN OF MARANA • ASSESSED VALUE A ND ESTIMATED ACTUAL OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (Amounts expressed in housa nds) Assessed Fiscal Total Estimated Value as a Year Less: Tax Taxable Total Actual Percentage Ended Residential Commercial Exempt Real Assessed Direct Tax Taxable of Actual June 30 Property Property Property Value Rate Value Value 2008 $ 296,761 $ 218,942 $ 17,228 $ 532,931 $ 4.6291 $ 4,344,724 12.3% 2007 225,022 204,381. 16,038 413,365 5.0674 3,321,030 12.4% 2006 164,013 161,008 14,694 310,328 5.3406 2,456,873 12.6% 2005 126,136 136,270 .14,149 248,257 5.4611 1,933,911 12.8% 2004 104,736 122,380 13,696 213,420 5.4967 1,650,694 12.9% 2003 80,003 115,954 13,079 182,878 5.4981 1,363,836 13.4% 2002 63,610 100,054 7,113 156,551 5.4998 1,116,238 14.0% 2001 50,080 87,121 7,226 129,975 5.5828 920,663 14.1% 2000 40,168 70,954 6,178 104,944 5.5635 729,878 14.4% 1999 54,505 38,644 5,822 87,327 5.5651 591,981 14.8% SOURCE: Pima County Assessor's Office • Regular Council Meeting -February 3, 2009 -Page 170 of 263 143 ij ~ O~OOINO V'nNOO ~ Q to ~0 N CO N T O 00 ~ 111 N 0 n 111 M~ d' W O M .--~ C p ~ d~ ~ n n~ O N n n l11 M ~O y = ~ f6 Lf] ^ 0 N lD V' cY lC l0 l0 ` ~~ N N N N N N N N N N ~ H Q ~ j .~ '-J ~ ~ O O O •~- ~ pi C ~+ M M M ~ X O~ O~ C 0 0 0 ~ ~p+ • ~ i i i ~ ~ ~ i O C LL ~ ~ ~ N N N L ~ " ~ U LL. V} (1 ~ O ~ ~ to 00000 C O ~ N 0 aci ~ ~ °; ~ ° ° O ° ° `6 n c -p E _; O O 0 O o ooom00 ~ . -p •~ ~ ~ •~ ~ N N N N N ~ ~ ~ ~ ~ O LL' ~ ~ ~ p U ttr r0 O~ 'O ~ 0 0 0 0 0 0 0 0 0 0 0 ~ ; ~ 0000000000 0 ~ O ~ l~6 ~-' ~ONNNNMMMM L "O p J-+ N ` ti H ri rl r-1 ri ri ri r-I r-1 H ~ Q j C 0 0 0 0 0 0 0 0 0 0 ~ ~ U Q N ~ U ~ Fo- c O_ ~ ai ~ L +, C w 0 V W M Lf1 O n +--I 00 OO L!1 H V- 3 -O ~ C O CO +-1 N N I.n 0 T .--1 CO M d' r d- O O i ~ ~_ +O+ ~ C 0 0 0 0 0 0 0 0 0 0 ~ • N O m ~ ~' n ~ M M M M M M M M M M ~ L + ~ a . C W Q ~ N ~ ~ O O O Z ~ l0 LI'f Ln ~ OD ~' M O Cr l0 >' U • U C N ~+ M Cr +-1 r-1 N O~ M n n 0 ~ y ~ N ~ ~ ~ O N ~ . -1 ~ N M M ~ LMl1 LEA I~If M ~ N L y C ~ Z ~ ~ `Q C ~ Q C H ti .--1 •--0 •--1 .--1 .--1 .ti ti ,--1 O QJ .O Q r p L ~ ~"~ Z a ~ Q~I yV r o ' ~ ~ O. ~ 0 a.., Lf1 n N M O l!f Lfl 00 QON ~ ~ N ~p LL LL C ul O U O'C lOnM W OnnN N+-y lO ~OOOO In N.--1TOl l0 ~ ~ ~~ O ~ 41L ~ NODOLfItGNN~~00 N O Z~~Z O ~ cn 0 ~O IGnO~OnnOOO ~ a`.+ f6 C O > O O O F N C > a g ~ C I.ry l~ .•-I Q O M M GO O~ 00 l `~ "y Ol 0 O N N ~ ~ Z O f6 O L- +' N r O OO .--i Ol O T t0 lD O ~ ~ O Ill n LP O _ •E ~••- N d IA ~ ~ L ? f l0 ~ M M n M O N ~~ ~ In LI'f O 0 t0 n n n n n ry Uf L i {A ~ T ~ ~ o_ m W ~ ~ a ~ ~"~ 0 .~.± O ' ~' t0 l0 l0 l0 l0 t0 l0 l0 l0 01 ~ ' - " ~ ~ ~ 7 Ol `~ ~ O C O U O +`.~ C CY ~ ~ d Cr d ~ ~ N u n n to lff Lf1 Ln O O •X O i ~ N L ++ O M M M M M M M M M O L N O ~ +' Il U ~ 0000000000 p_IA > . c0 p i~ ~ O ~ ~ ~ ~ Z` ~' M n (~ n N N N N N N '~' N O O' ~ i '` C M Ol O 111 .--~ ti .--i ,-•~ O O • C a-~ 16 N 1p ~ O M M N N N N N N ~ , }' • 1Z 7 N N to - O ~ U ~ ~ 0000000000 ~ p • ~ ~ `r' O N a X y ul^i N ~ d' M- 111 O n .--I QQ OO LI.1 ,•~ U ~ l7 ~1 f6 -! fa C O n Lff 00 Q1 01 .-•1 N lA l0 07 M N 01 N N M M .-1 IJ1 ll1 O M LI•f 00 01 T 0 0 0 O ~ Ql 1p l0 ~..~ i ~ ` a.+ 1!1 ~ _ d U d" ~ Cf ~ d' ~ CI' 111 l!1 Lf1 N tj ~ ~ 0 113 ~ ~ X iC ~ C ~ i ~O C D O ~ O X ~ O Q j U .~ O ~ 0 (11 Q i i i ~ i i i i i i U ~ Q> to O O ~ ~ _ of C v ll. O C ~ ~ ~ ~ i y C ~ d ~ 3 ~ Oi ` c QQ ~ p~ F- ~ ~ ~ ~ i i i ~ i i C O • U C ~ +L+ ~ 16 a f0 li ~ H m ip i td v 07 n 0 Ll1 ~ M N r-I O O1 00000000001 m N> N N ' t i) N 00000000001 L O L L C •LL } N N N N N N N N N ti y ~ V ~ ~ d Regular Council M eeting -February 3, 009 -Page 171 of 263 O z .=•1 N M d' 144 C O 0 W O C 4J i-' Q O C N Q C O U E a vi w Schedule 7 r~ ~. • • TOWN OF MARANA • PRINCIPAL PROPERTY TAXPAYERS FOR THE YEAR ENDING JUNE 30, 2008 (Amounts expressed in thousands) 2008 Schedule 8 Percentage of Taxable Total taxable Assessed Assessed Taxpayer Value Rank Value Fidelity National Title TR 30212 $ 2,300,637 1 52.2% Fidelity National Title TR 60360 339,496 2 7.7% Fidelity National Title TR 60338 328,000 3 7.4% Smith Food & Drug Centers Inc 324,150 4 7.4% Gladden 25 LLC 282,240 S 6.4% Weingarten Newquist LLC 224,452 6 5.1% Freedber Barry & Freedbrg Bella 201,120 7 4.6% Miramonte Gladden Farms LLC 170,777 8 3.9% OS Realty LLC 134,400 9 3.0% Title Security Agency of AZ TR 891 103,152 10 2.3% Totals $ 4,408,424 Notes: • The Town of Marana does not impose a property tax; principal property taxpayers. represented above reflect those properties within the boundaries of the Gladden Farms Community Facilities District, which does impose a property tax. Source: Pima County Assessor's Office - IS Dept (Infomration Systems's Coordinator) • Regular Council Meeting -February 3, 2009 -Page 172 of 263 145 TOWN OF MARANA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (Amounts expressed in thousands) Collected within the Fiscal Year of the Levy Fiscal Year Schedule 9 Total Collections to Date Ended June Total Tax Levy for Percentage Percentage of 30 Fiscal Year Amount of Levy Amount Levy 2008 $ 688 $ 687 99.70% $ 686 99.70% 2007 287 286 99.70% 286 99.70% 2006 64 62 97.54% 64 100.00% 2005 8 8 99.96% 8 100.00% 2004 - - - - - 2003 - - - - - 2002 - - - - - 2001 - - - - - 2000 - - - - - 1999 - - - - - Notes: The Town does not impose a property tax; levies and collections presented above reflect assessments • directly related to the Gladden Farms Community Facilities District. Prior to fiscal year 2005, the CFD did not exist; therefore, no levies or collections are presented in fiscal years 2004 and prior. Source: Pima County Treasurer's Office Regular Council Meeting -February 3, 2009 -Page 173 of 263 146 Schedule 10 TOWN OF MARANA • RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (Amounts expressed in thousands, except per capita amount) Governmental Activities General Total Percentage Revenue Obligation Capital Primary of Personal Fiscal Year Bonds Bonds* Leases Government Income ** Per Capita 2008 $ 29,225 $ 8,385 $ 115 $ 37,725 151.6% $ 1,258 2007 30,460 5,355 154 35,969 134.7% 1,199 2006 .31,835 2,105 - 33,940 118.2% 1,131 2005 33,395 2,105 - 35,500 132.9% 1,328 2004 32,100 - 154 32,254 129.6% 1,396 2003 13,780 - 199 13,979 61.3% 685 2002 15,080 - 544 15,624 71.3% 863 2001 16,330 - - 16,330 76.4% 1,040 2000 17,515 - 50 17,565 85.6% 1,236 1999 7,930 - 122 8,052 42.2% 613 Notes: • *Bonds issued for Gladden Farms Facilities District FY 05, a component unit of the Town. Principal debt payoff does not begin until fiscal year 2008. ** Indivdiual statistics not available for Marana, included in figures for Pima County and Tucson Metropolitan area. Source: US Census Bureau, Bureau of Economic Analysis • Regular Council Meeting -February 3, 2009 -Page 174 of 263 147 Schedule 11 TOWN OF MARANA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (Amounts expressed in thousands, except per capita amount) Less: Amounts General Avaliable in Obligation Debt Service Fiscal Year Bonds Fund Total 2008 $ 8,385 $ 2,180 $ 6,205 2007 5,355 2,257 .3,098 2006 2,105 2,031 74 2005 2,105 - 2,105 2004 - - - 2003 - - - 2002 - - - 2001 - - - 2000 - - - 1999 - - - Percentage of Estimated Actual Taxable Value of Per property Capita 0.19% 18.6% 0.13% 10.3% 0.00% 0.2% 0.11% 7.9% 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - 0.00% - Notes: The Town of Marana does not impose a property tax; any property taxes presented in this report are directly related to the Gladden Farms Community Facilities District, formed in fiscal year 2005. Consequently, no general obligation bonds were issued by the District until fiscal year 2005. Regular Council Meeting -February 3, 2009 -Page 175 of 263 • I •i •i 148 Schedule 12 TOWN OF MARANA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DE AS OF TUNE 30,2008 BT (Amounts expressed in thousands) Estimated Debt Percentage Estimated Share of Governmental Unit Outstanding Applicable Overlapping Debt State of Arizona None 0.58% None Pima County $ 389,590,000 4.52% $ 19,596,377 Pima County Community College District 51,155,000 4.52% 2,573,097 Pima County Flood Control District 1,470,000 5.08% 82,026 Metropolitan Domestic Water Improvement District None 71.11% None Northwest Fire District 26,575,000 38.25% 11,023,310 Gladden Farms Community Facilities District 8,385,000 100.00% 8,385,000 Red Hawk Community Facilities District None 100.00% None Tangerine Farms Road Improvement District 25,774,000 100.00% 25,774,000 Flowing Wells Unified School District No. 8 9,590,000 100.00% 18,786,810 Marana Unfied School District No. 6 61,085,000 52.32% 33,645,618 Town of Marana n Total direct and overlapping debt None 100.00% None $ 119,866,238 Notes: * Does not include the Municipal Property Corporation municipal facilities revenue bonds. outstanding in the aggregate principal amount of $29,240,000. Does not include the Bonds. Sources: The various entities Regular Council Meeting -February 3, 2009 -Page 176 of 263 149 ~a .~ v7 ~L W '~ ~ R •Y 3 z>~° ~o~~ W J C a ~ :~ ~z~N O>~` Z O~~~ ~ ~ ~ c W ~ O J a a .. ~J C ~ ~ ~ C O O L m cQ C C H Cy C ~ ro a~ C .~ O C 0 O 0 rLa a~ c a~ ~i '~ ~_ 0 a~ - -o o m .~ C7 CC C U li C N .O (7 I 1 1 , 1 1 1 1 I I 1 rn a~ 0 U ~~ 1 1 1 1 1 1 1 1 >- r..j U a"1 C .~ 1--I {~ 'U 1 1 1 I 1 1 1 1 1 1 a` ~' ~ N C O (6 ~ p 1 1 1 1 1 1 1 1 1 1 .~ ~ a ~ ~ ~ O Q U yj. 1 I 1 1 1 1 I I I m o O ~ 0 0 U VI (n a~ O ~ 1 1 1 1 1 1 1 1 ~ ~ ~ C I--1 ~ o I 1 1 1 1 I I 1 1 ~U C ~L d ~ ~ N N C ~ 1 1 1 I 1 1 I I 1 O_ ~~ N N O O a` U t~ N ~ O N t0 Lf) d- M N .--i O O~ 0000000000 0000000000 V N N N N N N N N N +--i Regular Council Meeting -February 3, 2009 -Page 177 of 263 00 0 O r`N ~ Q~ LPL C C ~U C ~L ~ C C OO I- O ~ ~C O a ~ c of ~ `~ °o ~p N a.+ ~ ~ N ~U ~ ~ C ~~ ~ ~6 ~ ~~ C p i~ O C ~ ~ N ~, ~ ~_~ O ~ ~ ~~ ~ ~ ~ O > vii °~ o ro c a a is ~ ~ a~i o~ y a O (0 O ~ O N tp ++ O f~0 ~ ~ ~ ~ ~~ ~' o f° ~ u ~ ~ •~ m a~ ~ ~ ~ c ~ Q C ~ w ~ O C O a..l 1-" m cn ~ o ~ N .a U ~ ~ ~ N O O ~ N ~ O V- L N N C X -6 ~ N f0 C ~O T C ~ 'C +~ ~ C9 n ~ ~ o ~ fl. 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O ~~ V1 iri U ~~ ~~ Regular Council Meeting -February 3, 2009 -Page 178 of 263 151 TOWN OF MARANA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Schedule 15 2008 1999 Percentage of Percentage of Total City Total City Employees Employment Employees Employment Employer Marana Unified School District 1,776 24.1% 1,212 18.1% Army Reserve/National Guard Training Center 205 2.8% 161 2.4% Evergreen Air Center, Inc. 423 5.7% 643 9.6% Wal-Mart 450 6.1% - 0.0% (2) Town of Marana 367 5.0% 145 2.2% Costco 275 3.7% - 0.0% (1) Sargent Controls & Aerospace 244 3.3% 216 3.2% Target 225 3.1% - 0.0% (1) Comcast of Arizona 189 2.6% 145 2.2% Coca-Cola Bottling 185 2.5% 213 3.2% Trico Electric Co-operative 135 1.8% - 0.0% (1) Notes: (1) 1998 Profile unavailable (2) New business opened FY 2003 Regular Council Meeting -February 3, 2009 -Page 179 of 263 • • 152 • • • Schedule 16 TOWN OF MARANA FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION LAST FIVE FISCAL YEARS Function General Government Development & planning services Public Safety Police Officers Civilians Building Safety Highways and streets Engineering Maintenance Culture and recreation Community Development Economic & community development Water Utilities Municipal Airport Total 2004 2005 2006 2007 2008 41.5 41.5 54.5 58.0 64.0 39.0 50.5 51.5 51.5 - 67.0 71.0 82.0 84.0 84.0 20.0 21.0 27.0 29.0 29.5. - - - - 19.0 31.0 32.0 35.0 36.0 - 13.0 18.5 20.5 22.0 , 40.8 - - - - 35.0 35.8 35.5 41.0 49.3 49.8 1.0 1.0 1.0 3.0 - - - - - 18.0 11.0 14.0 18.5 18.0 19.0 2.0 2.0 2.0 2.0 3.0 261.3 287.0 333.0 352.8 362.0 Source: Town of Marana, Human Resources Department Regular Council Meeting -February 3, 2009 -Page 180 of 263 153 0 0 0 N 00 n 0 0 0 0 0 0 0 0 O ~}' M t!'f N 01 n N 0 O .--i ~--i ~O O 01 M rl 01 N 00 LPl O o O ~D O 01 rl ~ L1j L(j N M O O M M O V1 l0 Lfl O n n .-y M ~ tT LA OO ~ M 00 d' u'1M000NUIOM ~G ~ ~ MOIA ~001O01NtOM1~ d' X O M Ln M O~ !b O n l0 tD tC .-i Oi LLJ N M 00 OD Lff N 00 O .--i N In tT .-a O~ .-+ 01 ~ LA M ~ l0 ~O O .--i N Oi ,--i ti .--i M ri ~ y, N ifl- i~ O n ~ ~ c o 0 0 O 111 M 0 0 0 0 0 0 0 0 M n Lff O C1' N M n 0 O 16 e O ~--~ 01 Vl Lfl 00 N r+ ~ O M O ~ O M N 00 ti N~ O N ~"~ O O ~ .--~ + C 3 t001 W lOOOONd-N+-a 00 M U M M lD n to M N N O lf1 tD t\ N ~--iMn ~MHO~V'111Tt0 O O O00 NNQ100 .~NOiN ~ a O N .~ 01 O 00 .-~ OD ~ 00 .--~ ~ l/1 .-1 ~O ~ CO N .--~ n In .--~ n ~O N N N OD .-i M M ~ . -~ fPr ~. O T 0 0 0 0 0 0 0 0 0 0 0 0 Ct' *y n ~ Lr) t0 01 00 t0 01 M O N o O 01 N ti L% N 111 N N O l0 O ~ O H O n O M~ M N N O 0 0 ~ .--1 N O N .-i M 01 +--~ 00 GO ~ N ~O Vl 01 0101 00.~10N.-~NntO d' O. l~ Lf1 O M 01 M W ~"~ d- r-I r~ 01 l0 ~ ~ M lD ~--~ O r\ O t\ O~ .-a N LIl ~O ~ N ti O O O ~~ O n ~ C F'.ti fY ~ I) .--1 I n N ti .--i N ~ Q ~ . -i M ~ J d Z Q I.y ~~ o 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o ~ O O N ~ M~ O ^ ~ O C m~ o i M. . y i 1 tT l O 0 O O O O O 00 O M~ M N N O 0 ~ 0 ~ ~ 3 ~ ~ W H I11 n N tf' M O .--~ M n l0 OD 111 01 --i --~ ~-i .-~ ~p ~ J l/1 L11 f O N O M . . . O N O O n N n ~ lf'f ~O CO t0 O ~ u1 ~ '+'' Q ~~ p O Oi t0 Lff 00 .-i t0 .--1 .--I M L!1 ~ Oi O ' N N N C N n 01 M n V1 M n ~- O O O N 01 t0 n O ~ O N Oi +-i N ~ O iii ifs fl. ~_ 0 0 0 00 W.-~ 0 0 0 0 0 0 0 0 OLl101nOt0Nn 0 O N O N N ~ V: r-1 01 .-I t0 ~ .-+ O I- 0010 W On~MNMO O t/f M M O N •--~ r0 V7 l0 N l0 LA O~ t0 O 07 .~ .--i .--~ ~ ~ 07 N p L11 M 00 ll) l0 O .-i M l0 .-I o COMC~ 01O01NI~~D~ n O c O t1f t~ O N~ O n n~~ N In N M ~ ~ M M O N O b ~ l 0 l i t0 111 l D p O .--i ^ ~ iii i~ O. N L C ~ ~ ` I- C O ~ Y v ;~ ~o ~o O 7 Lu 01 N (~ ~ f6 C N j V ~ ~ J 7 G ~ O ~ C O O ~ m U N ~ ~-" 0 ~ 'ate In N f N ~ ~ ~ + Q O X .1 ~ ~ a . ~ ~ ~ C O ` a {..~ = L ~ ~ O a.. ~ fl. ~ N ~ O C N t ~J ~ C C O C OZS p f6 +~ N +O~ ~ 0 ~ `~ N Regular Counci l Meeti - ~et>~a~ ~200~ l~eg~' 1~1 ~ ~~ z * ~ 154 U 3 0 Schedule 17 • • • TOWN OF MARANA • PRINCIPAL RETAIL AND CONTRACTING. SALES TAXPAYERS AS OF TUNE 30, 2008 Schedule 18 Fiscal Year 2008 Fiscal Year 2005 Percentage of Percentage of Sales Tax Total Sales Sales Tax Total Sales Payments Rank Tax Payments Payments Rank Tax Payments RETAIL Taxpayer A $ 1,655,581 1 6.1% $ 1,733,396 1 6.9% Taxpayer B 1,148,426 2 4.2% 1,192,851 2 4.7% Taxpayer C 651,584 3 2.4% 840,015 3 3.3% Taxpayer D 625,854 4 2.3% 591,457 5 2.4% Taxpayer E 550,143 5 2.0% 685,476 4 2.7% Taxpayer F 431,407 6 1.6% Taxpayer G 428,407 7 1.6% 538,590 6 2.1% Taxpayer H 360,998 8 1.3% Taxpayer I 304,463 9 1.1% 359,538 7 1.4% Taxpayer ] 191,998 10 0.7% Taxpayer K 338,849 8 1.3% Taxpayer L 201,110 9 0.8% Taxpayer M 158,555 10 0.6% $ 6,348,861 23.3% $ 6,639,837 26.2% CONTRACTING Taxpayer A $ 971,314 1 3.6% $ 647,801 3 2.6% Taxpayer B 751,351 2 2.8% 2,848,947 1 11.3% Taxpayer C 708,430 3 2.6% Taxpayer D 392,241 4 1.4% Taxpayer E 380,777 5 1.4% Taxpayer F 290,378 6 1.1% 505,619 4 2.0% Taxpayer G 380,874 7 1.4% Taxpayer H 271,586 8 1.0% Taxpayer I 268,550 9 1.0% Taxpayer J 241,352 10 0.9% Taxpayer K 1,008,932 2 4.0% Taxpayer L 398,134 5 1.6% Taxpayer M 393,308 6 1.6% Taxpayer N 361,226 7 1.4% Taxpayer O 250,964 8 1.0% Taxpayer P 229,312 9 0.9% Taxpayer Q 225,784 10 0.9% $ 4,656,853 17.2% $ 6,870,027 27.3% • Re9uiar~y~~-~ep~~~pt, Arizona Department of Revenue 155 TOWN OF MARANA SINGLE FAMILY RESIDENTIAL PERMITS LAST EIGHT FISCAL YEARS Schedule 19 Month 2001 2002 2003 2004 2005 2006 2007 2008 January 53 83 101 81 130 52 35 11 February 50 62 99 71 129 44 83 27 March 65 87 105 105 180 134 53 12 April 68 70 129 52 203 68 55 50 May 81 105 138 136 222 61 81 18 June 66 47 99 108 123 75 65 28 July 81 122 99 140 168 92 51 21 August 73 87 123 134 143 99 50 76 September 90 70 96 175 149 27 30 27 October 65 72 86 141 139 34 35 7 November 50 55 55 119 79 61 13 5 December 46 102 76 136 106 59 28 Calendar Total 788 962 1,206 1,398 1,771 806 579 282 Fiscal Total 712 859 1,179 1,088 1,832 1,218 744 353 Source: Town of Marana Finance Department, Town of Marana Building Services Regular Council Meeting -February 3, 2009 -Page 183 of 263 • • • 156 • • Regular Council Meeting -February 3, 2009 -Page 184 of 263 Town of Marana 11555 W. Civic Center Drive Marana, Arizona 85653 Phone: 520-382-1900 Fax: 520-382-1901 www.marana.com • Regular Council Meeting -February 3, 2009 -Page 185 of 263 ~~~ - ~W ~~~ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council From: Erik Montague ,Finance Director Item C 1 Subject: Resolution No. 2009-10: Relating to the budget and financial plan; approval of fiscal year 2008-2009 budget reallocations; and declaring an emergency Discussion: Town Council adopted the fiscal year 2008-09 budget on June 17, 2008. The adopted budget set the legal level of budgetary control for the Town at the department level for the General Fund and at the fund level for all other funds. Additionally, the approved budget established the total number of authorized positions at 367. Changes to the organizational structure have occurred subsequent to budget adoption which require the reallocation of resources. Budget adjustments that move expenditure authority between departments in the General Fund or between funds for all other funds require Council approval. Changes to the number of authorized positions also require Council approval. This agenda item completes the "housekeeping" that requires council authorization. These changes do not affect the fiscal plan and savings strategy presented. to the council at the December 9, 2008 study session. The following describes the requested budgetary adjustments and changes to number of authorized positions: 1. Move the Administrative Assistant to the Deputy Town Manager position and budget to the Town Manager's department. Additionally, the position will be renamed to the title of Council Liaison. 2. Move the Community Events and Program Manager position and budget from the Town Manager's department to Parks and Recreation. Additionally, the position will be renamed to the title of Special Events Coordinator. 3. Eliminate one Lieutenant position in the Police Department and add of two additional dispatchers. The Police Department is in need of additional dispatchers to cover increased call loads, as well as for ensuring coverage for unanticipated absences. Due to changes within the department, the Chief has identified one vacant Lieutenant position that will be eliminated to create the funding required for two additional dispatchers. The additional FTE needed will be offset by a reduction of one Permit and Fee Technician. The overall annual savings from these reductions will exceed $80,000. 4. The transfer of one Senior Permit Clerk and three Permit Clerks from Building Safety to Development Services. These positions will transfer to the centralized records and permit center. Financial Impact: There is no cost change for items 1, 2, and 4. Item 4 will result in an estimated annual savings of over $80,000. Regular Council Meeting -February 3, 2009 -Page 186 of 263 ATTACHMENTS: NaL: O Reso_[utan_Bu..dget Adjustments.doc D Exhibit_A- Budget adjustments.pdf Staff Recommendation: Description: Budget Realloctions Resolution Exhibit ~ Recomend approval of resolution 2009-I0. Suggested Motion: I move to adopt Resolution No. 2009-10. Type;: Resol~.stion Exhibit Regular Council Meeting -February 3, 2009 -Page 187 of 263 MARANA RESOLUTION N0.2009-10 RELATING TO THE BUDGET AND FINANCIAL PLAN; APPOVAL OF FISCAL YEAR 2008-2009 BUDGET REALLOCATIONS; AND DECLARING AN EMERGENCY WHEREAS, on June 17, 2008, the Council adopted the fiscal year 2008-2009 budgetary document and overall financial plan which set the legal level of budgetary control at the department level for the General Fund and at the fund level for all other funds; and WHEREAS, reallocations of budgetary amounts between departments in the General Fund and between funds for all other funds are necessary from time to time. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that the budgetary adjustments attached hereto as Exhibit A shall be approved. BE IT FURTHER RESOLVED THAT since it is necessary for the preservation of the peace, health and safety of the Town of Marana that this resolution become immediately effective, an emergency is hereby declared to exist, and this resolution shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 3`d day of February, 2009. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Regular Council Meeting -February 3, 2009 -Page 188 of 263 Exhibit A Budget Reallocations ~ Department Decrease Increase Bldg Safety 76,590 Development Svc. 76,590 Town Manager 46,755 Parks & Recreation 46,755 Development Services 56,650 Town Manager 56,650 Total Budget Adjustment $ 179,995 $ 179,995 Authorized Position Reellocations Department Decrease Increase Bldg Safety 4 Development Svc. Development Services Town Manager's Ofc. Police Police Town Manager Parks & Recreation Building Safety Total Strength Adjustment 1 1 1 1 4 1 FY 2008 - 2009 Purpose Transfer 4 personnel & associated expenses to Development Services Transfer 4 personnel & associated expenses from Building Safety transfer Special Events Coordinator to Parks and Recreation Transfer Special Events Coordinator from Town Manager's Office Transfer Council Liaison to Town Manger's Office Transfer Council Liaison from Development Services FY 2008 - 2009 Purpose Transfer 3 Permit Clerks and 1 Senior Permit Clerk to Development Services Transfer 3 Permit Clerks and 1 Senior Permit Clerk to Development Services Move Council Liaison Position to Town Manager's Office Move Council Liaison Position from Development Services Dissolve 1 Lieutenant Position 2 Create 2 new E911 Dispatch positions Transfer Special Events Coordinator to Parks and Recreation Transfer Special Events Coordinator from Town 1 Manager's Office Dissolve 1 Fee and Permit Technician position 8 8 Regular Council Meeting -February 3, 2009 -Page 189 of 263 f ~1i~1 ~tH ~~~~ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council Item C 2 From: Suzanne Machain ,Human Resources Director Subject: Resolution No. 2009-11: Relating to Personnel; approving and authorizing an amendment to the classified salary schedule for FY 2008-2009 adopted by the Town Council on August 12, 2008; and declaring an emergency Discussion: The attached Resolution accomplishes an amendment to the Town's current FY 2008-2009 Classified Salary Schedule for purposes of classification and compensation plan maintenance. This amendment incorporates a new classification entitled Software Engineer. While this classification involves a new description of work, these functions will be fulfilled by an existing vacant position, with potential savings due to the proposed lower salary grade. A request was recently submitted to the Human Resources Department, by Technology Services Director Gary Hudman, requesting that one of his department's existing positions be reclassified to a Software Engineer. The position is currently classified as a Senior Software Engineer (salary grade 23). Mr. Hudman's request is the result of his identification of a need for a journey level classification that does not necessarily maintain the required experience, skills or qualifications of a more seasoned software engineer. This position will report directly to the Technology Services Director and will be responsible for the design and implementation of Town software needs, an analysis of those needs and providing requested technical support to Town staff. Again, this is a downgrade in the pay rate of an existing vacant position, and does not represent a cost to the Town. Estimated savings may be as high at $8,000, depending upon the rate of pay paid to the successful candidate. As a result of a market study of the Town's comparator communities and a comparison of classifications compensated at similar grades, the Human Resources Department is recommending that the new classification be assigned to salary grade 21 ($52,040-$78,060). ATTACHMENTS: Narrte: Description: Type: ^ Reso re amendment to classified salary scheduie.D~G Resol~~tion Resalution ^ FY2008-09 Adopted. F.ay Plan.xls Classified Service Salary Sohedule FY 2€l~~-;?6fl9 Imxhibit Staff Recommendation: Staff recommends that the proposed amendment to the Classified Service Salary Schedule for FY 2008-2009 be adopted. Suggested Motion: I move to adopt Resolution No. 2009-11. Regular Council Meeting -February 3, 2009 -Page 190 of 263 MARANA RESOLUTION N0.2009-11 RELATING TO PERSONNEL; APPROVING AND AUTHORIZING AN AMENDMENT TO THE CLASSIFIED SALARY SCHEDULE FOR FY 2008-2009 ADOPTED BY THE TOWN COUNCIL ON AUGUST 12, 2008; AND DECLARING AN EMERGENCY WHEREAS the Marana Town Code, Section 3-3-1, provides that the Town Council shall adopt a personnel system for classified employees of the Town; and WHEREAS on August 12, 2008, the Town Council adopted a classified salary schedule for FY 2008-2009; and WHEREAS the Town's Personnel Policies and Procedures, Policy 3-3, provides that the Town Manager shall ensure the preparation, development and maintenance of the classification plan; and WHEREAS the Town's Personnel Policies and Procedures, Section 3-3-2, provides that amendments to the classification plan require the approval of the Town Council; and WHEREAS the Town Council finds that amending the Town's classification plan as set forth in this resolution is in the best interests of the Town and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Town of Marana hereby approves the amended classified salary schedule, attached to and incorporated by this reference in this resolution as Exhibit A. SECTION 2. The Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to implement the amended classified salary schedule in Exhibit A. SECTION 3. Since it is necessary for the preservation of the peace, health and safety of the Town of Marana that this resolution become immediately effective, an emergency is hereby declared to exist, and this resolution shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 3`d day of February, 2009. ATTEST: Jocelyn C. 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CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COi1NCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council Item C 3 From: Kevin Kish, AICP ,Planning Director Subject: Resolution No. 2009-12: Relating to Development; approving and authorizing a final plat for Old West Industrial Village Discussion: Request The applicant is requesting approval of a final plat for the development of an industrial condominium project consisting of 16 units. Location The site is generally located at the southern end of Camino Martin approximately one-half mile south of Ina Road. History The Town Council approved a rezoning of the property from "R-36" to "HI" (Heavy Industrial) on March 19, 2002 by Ordinance 2002.05. The purpose of the HI zone is to provide for those employment activities that often require outdoor activity and/or storage. The area along Camino Martin consists of industrial office and storage buildings, self-storage facilities and contractor's yards which are consistent with the HI zoning. The Town Council approved the preliminary plat for this project on March 29, 2007 by Resolution 2007-43. Project Description The industrial complex encompasses 3.7 acres. The condominium development will consist of one lot with 16 units; Common Element "A"which will consist of the internal drive and parking areas, and Common Element "B" which will be an outdoor storage area enclosed by a masonry wall. Each unit will be available for individual purchase. Common Element "B" is available to the tenants/owners of the center for additional storage needs. The building is currently being constructed under the approved preliminary plat and only allows the units to the leased. This final plat will allow the individual units to be sold to separate owners. Transportation Access to the Old West Industrial Village has been provided from Camino Martin with improvements done by the owner. The improvements to Camino Martin include the extension of the roadway and creation of a turnaround at the northwest end of the property. Access to the southern portion of Lot 6 of Thornydale Plaza (Parcel Number 101-OS-043K) has been provided via an existing 60 foot right-of--way through the southwest side of the property. ATTACHMENTS: Regular Council Meeting -February 3, 2009 -Page 198 of 263 Name. I~esc.t°iptic~n: "I'}-°pe: o Resolution zoas-xx o~d West Industrial Village FP,dac Resalutian Resolution ^ PRV-03096f.U1_d_est IndustrialVillag_e FP,gdf Iwocatlan Map t3ackup Material ~ PRV-f33.6_9.6.O1d West dusts( Viilage_FP,pdf Final Plat Backup Materlal -~ -- - Staff Recommendation: Staff has reviewed the request against the requirements of the Marana Land Development Code, the Marana General Plan and the Rezoning Conditions of Ordinance 2002.05 and the approved preliminary plat. This final plat is in conformance with all required development regulations and design guidelines. Staff recommends approval of the final plat for Old West Industrial Village. Suggested Motion: I move to approve Resolution No. 2009-12. Regular Council Meeting -February 3, 2009 -Page 199 of 263 MARANA RESOLUTION N0.2009-12 RELATING TO DEVELOPMENT; APPROVING AND AUTHORIZING A FINAL PLAT FOR OLD WEST INDUSTRIAL VILLAGE WHEREAS, Stanley Engineering & Drainage, Inc., representing the owner of Old West Industrial Village, has applied for approval of a final plat for an industrial condominium project consisting of 16 units on 3.7 acres, including Lot 1 (units 1-16) and Common Element "A" and "B" and is generally located at the southern end of Camino Martin approximately half a mile south of Ina Road in a portion of Section 6, Township 13 South, Range 13 East; and WHEREAS, on March. 19, 2002, the Town of Marana adopted Ordinance 2002.05 approving a rezoning of the property from "R-36" to "HI" (Heavy Industrial); WHEREAS, on March 20, 2007, the Town of Marana adopted Resolution 2007-43 approving the preliminary plat for Old West Industrial Village; WHEREAS, the Town Council, at their regular meeting on February 3, 2009, has determined that Old West Industrial Village final plat should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona, that Old West Industrial Village final plat is hereby approved. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 3`° day of February, 2009. ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Mayor Ed Honea Regular Council Meeting -February 3, 2009 -Page 200 of 263 E ~ ,~ d. ~~~~~ ~ - Old West Industrial Village k Final Plat r. ~ t CAS E P RV-03096f ~, ,z L _ -- 1 I C Z __. _ ,.. , ,._. _ , `` m , ~' ; , i _ ~'J fiJA RD `~~'y INA RD ~ - - - o _ - ~ -- -- - _ - _ - .W WARD- - - - 4 ~ ~s ~~ ~ f !J i~ 4 > I`) ~ '~V JEREMY PL - - - i,, - ;~ ~ ~ x ./j~ __ ....... ~~ ~n \ -. ~ y `,. ' .r~ ~ , ~ Z ~1., `~ ~ ~ _ ___ ~~, ~~ _s, ~ ~_ . \ ~~~,, ~ -~ ^ Subject Property , ~ ,.~~~ .~ ~` W:WALKER RD `~,~~ r RegU@St o aoo soon. " A request for final plat approval of an industrial park located on 3.7 acres at the south end of Camino Martin. Data Disclaimer: The Town of Marana provides this map information 'As Is' at the request of the user with the understanding that is not guaranteed to be accurate, correct or complete and conclusions drawn from such information are the responsibility of the user. In no event shall The Town of Marana become liable to users of these data, or any other part , fo y r any loss or direct, indirect, special,incidental or consequential damages, including but not limited to time, money or goodwill, arising from the ~~ n d user ~dit~ouncgfMeetin '- Februa 3 2009 - Pa a 201 of 263 W 0 m v 0 N s w $~~ N ~~ ~~ ~~$ t $s 2 m $ n ~ ~~ ~ ' ~ $ `° ~ s$ ~ ~ A ~g ~~ ~ ~p ~~~ s= ~a ~~ ~ ~ a isl<~~ ~ ~' ~ ~~ wg $• y 8~~~~~ g~ ~`rH, s '~ ~ E ~ A~$~ n g? ~~ 3 i `~ R °< wy„ ~S ~ g 3~a~ a ~9 ~ ~ `x ~ ~ ~Z j ~~~m ~ N ~ ~ a ~~~ ~ ~~ i 1 g~gg~~ ~A ~ ~ ~ ~ ~~ §~~5 I ~~~j ~~~ ~~ ~ ~ ~ i ~~gg ~ ~ ~ e ~ ~m o g is B ~ ~5 I ~ _ _ f w. 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Y m Dn f7 Sm ~~ m~ O~ m° O~ o_ tt61' ~ ~2~ ~ _Q &3 ~ m Q+ ~~~ ~ . ~ ~. ~~~ ~ 3 A ~ z ~o~~~~ ~ ~ ~°~ rw ~ ~~~~ rn .~~ LL ~ ~3Q~~x~ y~y ~ ° ~Tg ~.~~~ AI ~i ~ ,w m y E ° a ,rsr n~v~ ~ F}?, ~~$' m u a te rarr g x» na• ~' $ - 5 xa• ~°mL x~S tea' aaL~ ' S- 0 ~ 8' ~~- ~ n~8a. ~ f4 ~' ~m~= ~~ ~ t~~ m g ~~~ ~ a # $- ~ ~ 'eke ~ ~ 5r _ r 8 a. ~ ~0' ~ - J861 s 8 ~~°~ mse• ~ m:~~ tlb ° g. ~ _s~=`- ~ ,x aAti ~ ~ g¢r _ um' BOOK. PAGE ~~ ~~~ ~~~~ ~~ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council Item C 4 From: T VanHook ,Community Development Director Subject: Resolution No. 2009-13: Relating to Community Development; granting $24,000 in Discretionary Funding to the Marana Western Heritage Committee, Inc. an Arizona 501(c)(3) non-profit organization to support youth activities at the. Marana Heritage Arena Discussion: The Marana Western Heritage Committee, Inc. (MWHC) is requesting $3,000 per month in Discretionary Funding to support the operation of the Western Heritage Arena. MWHC was incorporated on September 6, 2007 and received non-profit status under IRS Code 501(c)(3) in May 2008. The organization's mission is to promote and cultivate Marana's rich western equestrian and agrarian heritage, history and culture. MWHC places an emphasis on fostering equestrian events, especially encouraging and supporting youth participation through the Marana Junior Rodeo. The two primary goals of the MWHC are to: (1) preserve the western way of life that Marana is known for; and (2) afford youth a place to go and participate in our western equine heritage at an affordable cost that is close to home. MWHC operates the Heritage Arena located on the Casa Grande Highway at Postvale Road in Marana. The Arena provides a facility for Marana community for youth rodeos, gymkhanas, team roping, barrel racing, pro- and amateur-rodeo, mounted shooters. The Arena offers a safe, affordable alternative with well run services that meet the needs of these youth, senior adults, and families. Programs sponsored by the MWHC address three Mayor and Council objectives by: promoting events that encourage positive activities for youth and families; helping to enrich lives, provide safe environments, and encourage volunteerism for older citizens; and helping ensure access to events that preserve, the unique cultural heritage of the Town of Marana. Rodeo and western equestrian events target youth and seniors specifically. Activities are staffed by volunteers including, youth, parents, grandparents, and supporters. All events are free for spectators and scholarship support helps ensure that everyone has an opportunity to participate. During the funding period ending June 30, 2009, the MWHC plans to hold more than 125days of events at the arena and anticipates that well over 10,000 entrants will participate in these events. In February, when the City of Tucson hosts the Fiesta De Las Vaqueros, Professional Rodeo, the MWHC will provide arena facilities for an additional professional roping competition, barrel racing, and other overflow events. These events and many others will bring to the Town of Marana multiple entrants that utilize Marana businesses to purchase food, lodging, and supplies. On an ongoing basis, the MWHC will provide opportunities for local residents to utilize the practice Regular Council Meeting -February 3, 2009 -Page 207 of 263 area, free of charge with an appointment; regularly scheduled weekly practice events; and junior rodeo. The MWHC will document and report to the Town event entry numbers, demographic information, prize awards, and to the best of its ability, they will track the zip codes of entrants to help estimate the economic impact of events on local businesses. ATTACHMENTS: Name: I)e;sc.ription: "l'ype.: o nnv~~ic Resoiut~o~, 200$- 20~9j2].doc MWHC Discretionary Funding Rescaiution Resolution Staff Recommendation: Staff recommends granting $24,000 in Discretionary Funding to the Marana Western Heritage Committee, Inc. to support youth activities at the Marana Heritage Arena. This funding will support operations from November 1, 2008 to June 30, 2009. Suggested Motion: I move to adopt Resolution No. 2009-13 granting $24,000 in Discretionary Funding to the Marana Western Heritage Committee to support youth activities at the Marana Heritage Arena. Regular Council Meeting -February 3, 2009 -Page 208 of 263 MARANA RESOLUTION N0.2009-13 RELATING TO COMMUNITY DEVELOPMENT; GRANTING $24,000 IN DISCRETIONARY FUNDING TO THE MARANA WESTERN HERITAGE COMMITTEE, INC. AN ARIZONA 501(C)(3) NON-PROFIT ORGANIZATION TO SUPPORT YOUTH ACTIVITIES AT THE MARANA HERITAGE ARENA WHEREAS, the Town of Marana has establish a Discretionary Fund to support local no- profit and grassroots organizations forwarding the priorities set by Mayor and Council; and WHEREAS, the Town of Marana is committed to preserving and celebrating its western heritage and supporting programs that encourage positive activities for Marana youth and families; and WHEREAS, the Town has. constructed and owns a rodeo arena known as the Western Heritage Arena which is located on property owned by the Marana Unified School District; and WHEREAS, the Marana Western Heritage Committee supports the preservation of the area's unique western heritage by organizing special events, providing outreach; and encouraging volunteerism; and WHEREAS, the Marana Western Heritage Committee operates the Heritage Arena providing a facility for youth rodeos, gymkhanas, team roping, barrel racing, pro- and amateur- rodeo; and WHEREAS, the Mayor and Town Council of the Town of Marana find that the best interest of the public are served by support youth activities at the Western Heritage Arena. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the Mayor is authorized to execute a Discretionary Funding Agreement the Marana Western Heritage Committee for Fiscal Year 2009. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 3rd day of February, 2009. ATTEST: Mayor Ed Honea Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Regular Council Meeting -February 3, 2009 -Page 209 of 263 ~~ ~ ~~"~ ~~ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council From: Item C 5 Subject: Minutes of the January 20, 2009 regular council meeting and the January 20, 2009 special. council meeting Discussion: ATTACHMENTS: Name: ^ fl1-20-Q9 C3raft tNnutes.pd ^ fl1_20-09 Special_Drafi Mnutes.pdf Staff Recommendation: Suggested Motion: II;?escription: 01-20-2009 Regular Minutes 01-20-2009 Special Minutes Type: Backup Material Backup Material Regular Council Meeting -February 3, 2009 -Page 210 of 263 ~~~ x~ <. ~.~ REGULAR COUNCIL MEETING " MINUTES 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, January 20, 2009, at or after 7: (10 PM Ed Honea, Mayor Herb Kai, Vice Mayor Russell Clanagan, Council 1~9 ~ m bar Patti Comerford, Council Member Carol McGorray, Council ~9 e ~ nber Jon Post, Council l\~lember Roxanne Ziegler, Council Member. REG U L.4R MEETING CALL TO ORDER AND ROLL CALL..-1/I menrher.c here present PLEDGE OF ALLEGIANC:1?/INVOCATION/MOM HINT OF SILENCE APPROVAL OF :~G1~:1\ I).1. a9otion by Council ,?IlemberMcGorray, second by Council Member C~nrerfurcl. Passed r~nanim~~usly. CALL T O T IiE P C l3 L I C. David M ~~ ra les spoke regarding three words that define the foundation. of a community: God. country, family - in that order. His comments related to eilipo~i erment of the candidates who will be elected in March. Regarding Budget and Policy - 90°~~~ of their time should. be dedicated to the budget because of the current fiscal situation. Ln~po~~~erment comes from the people. Remember the two main goals - setting policy Lind setting budget. PRESENTATIONS P 1: Presentation: Relating to Offenses; discussion and direction regarding proposed amendments to Title 11 of the Marana Town Code to prohibit the act of leaving a child under the age often unattended in a motor vehicle. Jane Fairall presented this item on behalf of the Police Citizen Advisory Commission, adding a new ordinance to the town code. This is the first of two readings. This item was initially presented to the CAC by the police department for review and consideration. Ms. Fairall noted that in the initial discussions a similar ordinance was proposed Regular Council Meeting -February 3, 2009 -Page 211 of 263 regarding leaving animals unattended in cars, which has now been adopted. Council Member Post asked what areas this would affect. Ms. Fairall replied that this would be effective anywhere in the Town of Marana. Council Member McGorray moved to bring this item forward for adoption, second by Council Member Clanagan. Passed unanimously. ANNOUNCEMENTS/UPDATES PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF C l~ K R L:NT EVENTS . Mayor Honea reported on the inauguration and its peacc~Jul trcnr,~rtion and equated it to Marana. MANAGER'S REPORT: SUMMARY OF CL K K E N 7' EVENTS Mr. Davidson reported on the Twin Peaks project. There i~ a two week delay initiated by an amendment from ADOT. The January 29 opcnin`~~ has been extended another two weeks. The other issue is the contemplated federal stimulus package. The town is working hard to anticipate any possible project in terms of 1-ending for the final list. The list will be provided to Council by this co m i n ~~ Friday. TOWN REPORTS Marana Chamber 20O~ ~ rci an~i 4th Quarter Keports. Ed Stolmaker presented a brief PowerPoint report. Currcntl~. ~ 17 active companies now belong to the Chamber. There was a reduction in ne~~ members, bui they are hoLeling steady. The 4~' quarter showed the highest number oC~~isitor: since the -~°i quarter of2007. He also reviewed the accomplishment; of the Chamber for this period. The 2009 directories were also distributed to Councih Citizen A~I~ is~~ry Commission Reports. Jim Shaw, chair of the Police CAC, introduced himself. Chief Tametich presented the other members of the commission in attendance: Michael Lektorich and Barbara Winters. He also noted Council Member Clanagan's presence as Council liaison. GENERAL ORDER OF BUSINESS CONSENT AGENDA. Council Member Post asked the town clerk about a set of minutes from June 20, 2007. Ms. Bronson responded that the minutes had inadvertently not been approved after the June meeting and that approval was necessary to have all permanent records compliant with statute. Council Member Ziegler questioned an item related to the intergovernmental agreement for election services. Mr. Cassidy responded. Upon motion by Council Member Post, second by Council Member McGorray, the consent agenda was unanimously approved. Regular Council Meeting -February 3, 2009 -Page 212 of 263 C 1: Resolution No. 2009-05: Relating to Elections; approving and authorizing the Mayor to execute an intergovernmental agreement with Pima County for the provision of election services; and declaring an emergency C 2: Resolution No. 2009-06: Relating to water; approving and authorizing the Mayor to execute a Pipeline Crossing Agreement with Union Pacific Railroad Company; and declaring an emergency . C 3: Minutes of the January 6, 2009 regular council meeting and June 20, 2007 special council meeting. COUNCIL ACTION A 1: Resolution No. 2009-07: Relating to real estate; vacating portions of Continental Links Drive and Norway Spruce Road public right-of=way; and conditionally authorizing the Town Engineer to execute a deed of abandonment. This item was presented by Frank Cassidy. :'1lntinn >o «pprove by Council ,tiTember Post, second by Council Member Comerford. Pn.csc cl uturrrimously. A 2: Resolution No. 2009-08: Relatinv~ to Utilities; adopting a notice of intention to increase water rates, rate components, iers. and service charges, and setting a February 20, 2009 public hearing on the proposed a~iohtion. Gilbert Davidson introduced the item and then t~uyicd it over to Barbara Johnson for the full presentation, including a PowerPoint review of the past and future fees and needs She discussed the valor oh ha~~in~> a self-suft~icient Enterprise Fund and how to transition into this type of fund. Erik Montague discussed the proposed rate structure, emergency replacement reserves and General Fund reimbursement of central service costs necessary to maintain a vi~~ble utilit~~. ~9r. ~1lonta~ue presented a comparison of surrounding providers based on di(~lerrnt le~~cls of consumption. Dorothy O'Brien then reported on intended quarterly updates to Counci I on the Enterprise Fund. With the adoption of tonibht's Notice of Intent, a public forum will be scheduled for February 20, 2009. Council 1\lemher Ziegler th<<nked the team for putting together a very balanced report. Motion by C'~iuncil Me~~hc~• Post, second by Council Member Ziegler to adopt a Notice oflntent. Passed un~rnnnnc~sly. BOARDS, COMMISSIONS AND COMMITTEES ITEMS FOR DISCUSSION/POSSIBLE ACTION D 1: Legislative Issues: Discussion/Direction/Action regarding all pending bills before the Legislature. Presented by Steve Huffman. He noted the unique position Arizona is in with the departure of Governor Napolitano to the Obama administration and the inauguration of Regular Council Meeting -February 3, 2009 -Page 213 of 263 Janice Brewer as the new ('iovernor, especially in light of the budget crisis facing the state. He spoke of some serious challenges, especially with the latest revenue projections. We could be looking at three to five years before the state gets back on its feet financially. He noted that the federal stimulus package requires project requests to be ready to go in the next 20 days for the first round of stimulus fund distribution. Many funds will be available to ADOT that will be of benefit to Marana because of where it's positioned on Interstate 10. There are opportunities along with the serious challenges for Marana. Council Member Ziegler asked if Marana could schedule a legislative day with the League and if it would be a good use of their time. Mr. Huffman replied that this was already in process. EXECUTIVE SESSIONS. Moved by Council Member McCor•ral•, second by Council Member Post to going into executive session for Item E3. Z.`nuninaously approved. E 1: Executive Session pursuant to A.R.S. §38-431.0 ~ {~~(3), Council may ask for discussion or consultation for legal advice with the "I own Attorney concerning any matter listed on this agenda. E 2: Executive Session pursuant to A.R.S. § 38-431.03~n)~ ~ ~,(4) and (7), discussion or consultation for legal advice with the Town's attorneys and discussion and to consider its position and instruct the Town Manager and staff concerni n`~ ~ 1) the lawsuit entitled Town of Marana v. Pima County/Pima County ~~. Marana f consolidated), Maricopa County Superior Court No. CV2008-001 l ~ I . ~~) pendin~~ le~~al issues, settlement discussions and contract ne~utiations relatin~~ to the transition ofMarana wastewater collection and treatment to the Town of Marana. E 3: Executive Sess~iun Pursuant to ~1.R.S. § 38-431.03(A)(4) and (7) to consider the town's position and instruct its re~~rescntativesregarding negotiations for the purchase of propert~~ ri~~hts i3ccdcd fur the Camino de, Manana & Dove Mountain Extension project, CIP number 2001-05~. from the parcels of property generally identified as Pima County Assessor's F~arcel numbers ? I t~-33-097K, 216-32-0250, 0260, 0270 and 0280. Mr. Cassias asked for ~ motion to proceed as directed in executive session on the first property in an amount not to exceed $300,913 including closing costs. Motion. by Council Member Posh, second by Council Member Clanagan. Unanimously approved. Mr. Cassidy asked fur a motion to proceed as directed in executive session on the remaining four parcels in an amount not to exceed $300,669 including closing costs. Motion by Council Member Clanagan, second by Council Member Post. Unanimously approved. FUTURE AGENDA ITEMS Notwithstanding the mayor's discretion of what items to place on the agenda, if three or more council members request an item to be placed on the agenda, it must be placed upon Regular Council Meeting -February 3, 2009 -Page 214 of 263 the agenda for the second regular town council meeting after the date of the request (Marana Town Code, Title 2, Chapter 2-4, Section 2-4-2 B) ADJOURNMENT. Motion by Council Member Post, second by Council Member McGorray. Unanimously approved. CERTIFICATION ' I hereby certify that the foregoing are the true and correct minutes of the Marana Town Council meeting held on January 20, 2009. I further certify that a quorum was present. Jocelyn C. Bronson, Town Clerk Regular Council Meeting -February 3, 2009 -Page 215 of 263 ~.~"~~ ~~~~1 ~~~ triw~gi. wi~ku SPECIAL COUNCIL MEETING MINUTES ' 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, January 20, 2009, at or after 5: f10 PM Ed Honea, Mayor Herb Kai, Vice Mayor Russell Clanagan, Council Memt~er Patti Comerford, Council Member Carol McGorray, Council Member Jon Post, Council M ~ tuber Roxanne Ziegler, Council Memhcl• SPECIAL 111;FETING CALL TO ORDER AND ROLL CALL. Council i19e~~tbers Clanagan and Comerford were excused. A quor~rn, ~~~as present. Notc: Council ~tile,~rlber Comerford arrived at 5:11 pm. PLEDGE OF ALLEC1.a>\CE/1NVOCATIO`/MOMENT OF SILENCE APPROVAL OF AG El\ D;1. rt~lo~~on Li~ Council Member Post, second by Council Member 1lcGorray. U~runinnnlsh~ approved. CALL "1~0 THE PUBLIC' PRESENTATIONS P 1: Presentation:. Kelating to the information and feedback obtained from residents and staff concerning Mai clna's Strategic Plan Gilbert Davidson gave a brief overview of the strategic plan process to date and how the strategic plan elements will be incorporated in the future. Deb Thalasitis gave the presentation of where the town has been and how comments from the public have been incorporated into the plan through public open house meetings. There have been twelve open house/public sessions. She discussed action steps for atwo-year period and the five focus areas which will bring the diverse community -geographically and culturally - together: commerce, community building, progress and innovation, heritage, and recreation capital of Arizona. Regular Council Meeting -February 3, 2009 -Page 216 of 263 Eighteen comments were received from the public which have been reviewed. Ms. Thalasitis then summarized the comments and the recommendations of staff from those comments. Ms. Thalasitis then noted that staff is requesting feedback from Council on the information presented tonight. When the recommendations are approved they will be forwarded to PSA for final adoption at the February. 3,'2009 meeting. This plan will be revisited on an annual basis prior to the budget each year. She recognized Breanne Lorefice, Josh Wright, Rodney Campbell anc~ Gary Hudman and thanked them for their contributions to putting the presentation to<~rther. Council Member McGorray addressed the item of mission anei processes associated with the Town's citizen advisory boards and commissio~~s and asked for a unified process to report quarterly to Council. Ms. Bronson was asked to send the Police C:~C to the chairs of the commissions to assist them in pre~arin~_= their reports. Under prot~ress is an innovation for developing a code of ethics for elected and ahhpinted official;. Council Member Ziegler addressed the issue of Council ethics. tits. Thalasitis noted that this has been considered a `best practice' among all municip~ilitics and entities as a way of communicating expectations to the public. Council Member Ziegler stated that she does not want it included in the strategic plan. ~la~ or Honea commented on how this is primarily setting guidelines rather than ho~~ to be moral Iv corrrrt. Council Member McGorray also addressed the issue. Council 1\9crubcr- Post also addressed the issue and asked how the strategic plan ~~ as going to be implemental. Ms. Thalasitis commented that staff and Counc i I ~~ r~ u l d tic. t h e areas to the budget process and through the agenda communication prorrss. Vice Mayor Kai ad~resscd the green building program and stated that he hoped ~~ hates cr i done is economically feasible to builders and developers. Council Membe~• Comerford said that it a~~e~rred they were working off of three different doc~unc;nts. and that she ~~ ould like to see the final documents prior to the Febnr a rv ;meeting. C o u n c i l.~ l e m b er McGorray also addressed the green building issue and the cost of certi f icationsiyr,alifications at different levels. Ms. Thalasitis clarified that she was referring; to the League certification process and that did not necessarily have to be part of the process. Mayor Honea commented on city/town recognition a~sards as wrl I a5 the ethnicity issue under the heritage focus area. He also. noted that a firm rchortin`~ schedule from the CAC's may be able to be set up outside the strategic plan. He also commended the staff for the work that has been done on the strategic plan.. ANNOUNCEMENTS/UPDATES PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER'S REPORT: SUMMARY OF CURRENT EVENTS Regular Council Meeting -February 3, 2009 -Page 217 of 263 TOWN REPORTS GENERAL ORDER OF BUSINESS CONSENT AGENDA COUNCIL ACTION BOARDS, COMMISSIONS AND COMMITTEES ITEMS FOR DISCUSSION/POSSIBLE ACTION EXECUTIVE SESSIONS E l: Executive Session pursuant to A.R.S. §3S-~ ~ I.O ~ (~)( ~), Council may ask for discussion or consultation for legal advice with the "l u~~ n :attorney concerning any matter listed on this agenda. FUTURE AGENDA ITEMS Notwithstanding the mayor's discretion a l~ ~~ h a t items to ~~ l a c c. o n the agenda, if three or more council members redlaest an item to be hlaced on the a~~enda, it must be placed upon the agenda for the second regular town counc i l meeting a Cter the date of the request (Marana Town Code, Title ?. ('hapter 2-4, Section 2-4-2 B) ADJOURNMENT. alutr~,~r h~~ Corurril Merrnc~r Post, seconded by Council Member McGorray. Passed urruninrnr~.~~l~•. CERT 1 F I CATION I her~;bv certify that the furc~~uing are the true and correct minutes of the Marana Town Council Special meeting held an January 20, 2009. I further certify that a quorum was present. Jocelyn C. Bronson, Town Clerk Regular Council Meeting -February 3, 2009 -Page 218 of 263 ~~ '1. ,~~~*~ ~~• `rR 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council From: Kevin Kish, AICP ,Planning Director Item A 1 Subject: Ordinance No. 2008.26: Relating to to Development; approving and authorizing a rezoning for Marana Mercantile Discussion: The applicant, Diversified Partners Development Company, LLC, has requested that this public hearing be continued to the Town Council meeting of April 7, 2009. ATTACHMENTS: Name: ^ Marana Mercantile Rezone Continuance Ltr.pdf ^ PCZ-08013 Marana Mercantile Rezone.pdf ^ Marana Mercantile Rezone Aplication.pdf Staff Recommendation: Description: Marana Mercantile Rezone Continuance Ltr Marana Mercantile Rezone Location Map Marana Mercantile Rezone Application `l`ype: Backup Material Backup Material Backup Material Suggested Motion: I move to continue the public hearing for the Marana Mercantile Rezone, Ordinance No. 2008.26 to Apri17, 2009. Regular Council Meeting -February 3, 2009 -Page 219 of 263 January 21, 2009 Steven Vasquez Planner I Torn+n of Marano Planning Department 11555 W. Civic Center Drive Mai°ana, Arizona 85653 Subject: PCZ-08Q1~ M~rana Mercantile Rezoning TPC Jab DPD-01 Dear Steven: Ur7 behalf of my client, Diversified Partners Levelopmsnt Go. LLC, I respectfulEy request a carrtinuance of our hearing with the Mayor and Ceuncil from the February 3, ~~309 hearing to the April 7, 2009 hearing. This additional time will allow us to continue to work with staff #o dsrrelop a mutually beneficial solution to the offsite transpartatian improvements. Thank you for your assistance. Please Est me know if you have any questions ar need any. further information.- Sincerely, THE PLANNING CENTER ~~ ~ ~ ~___ __ i-°' Linda S. Morales AlCP Principal L: _ ~ ~;~ ~_u i~ , . Regular Council Meeting -February 3, 2009 -Page 220 of 263 , , (~l ~~« ~~~ t;~ Marana Mercantile Rezone ~. ~~ ~ ~'~~~ ~ ~ CASE PCZ-08013 ' ~'~~~ ~Jillages of Toftolita Specific Plan Area '~ 0 vi ,~ ~\~~ ~EE'RUSN RD Subject Prope rty F y S L ' an uca Uptown at fvlarana Spec fic Plan Area S . ~ ~_ ~~~ ~, ~~ ~~ ~ ,, ~ w MaR~iri- ~ r, Circle K ,~` Marana Chevron `~~ 0 s -z f, W GRfER RD RegU@St o goo ~40o n. " A request for approval to rezone a 39.09 acre parcel from R-144 (Residential - 144,000 square foot minimum lot size) & HI (Heavy Industrial) to VC (Village Commercial). Data Disclaimer: The Town of Marano provides this map information 'As Is' at the request of the user with the understanding that is not guaranteed to be accurate, correct or complete and conclusions drawn from such information are the responsibility of the user. In no event shall The Town of Marano become liable to users of these data, or any other party, for any loss or direct, indirect, special,incidental or consequential damages, including but not limited to time, money or goodwill, arising from the us °a °r 'f u f ~' ~ n ' u~ e r Lo nGR l ee l -February 3, 2009= Paoe 221_of 263 ~`~~~ TC3'~'VN t~I+~ ~~ARAlIr~ PariA~ANA I'Ian~Tin~ Depa~~tzlient .. ~ ~:;~:~° j V ` 15~5 ~'~'. Ci~~ic C;cnter 13r. Malana r~T $5653 1 ~~.~ ,~~ (520 382-26Q0 lax, (S20j 382-2639 i~L~r~~~~G ~: ze~~v~ec ~~1}~LZCI~ r~a~e~ _ _~_ ~~ It lII'L.t31~1t'C'I:I~~~I~)?~~c.ll,,i:c)IlL} __.._ o Preliminary' Plat ~ General Plan Alncladment o ~`ariancc o l:inal flat v Specific Plar1 Ametldltlcnt a Ce~.xlitional Use PeilT~it o Devek~pmeiltPlan ~ ~ i~ezoneJSpecific Plan a C7the2°~ ~. ~_..~-~ -~~_~~~ o I,andscapc Plan o Si~nifzcaut Lard Cise Change o Native Platlt Pcrrni€ o Y~inor Land Di~`ision .2. (.I'.tif.i„~I.I}<11E~ REfQLIt#.Lll .~.___ Assessor`s Paz-cet Nlrsnber(s) GeneralPlan Desi~natiot2 217-25-002Ii {"r~t~c.oon~~,n<~~~rsme~ Ibwn Center Plannzn~ r Gross Area (Acro,%Sq. fit.) ~ ~ C`itrrel~tLonin~ ~9.d aCre$ {to~ccPnfarrxledfry=stet(} ~--.~Lk~i c3IItl k~~ Developmcnt<~l?roject Narne _ ~ Plapased Zotlin~, ~ Zvlarana dercantile Reaone 'C ___ PTG)~Ct Loeatlon ~ ~. of Parana Rd. , t~~. of I-10 Fronta e Rd. ~:. of Il to^~rn at i~arana I}c_scription of Project: ~ 27i 125 SE~ Commercial Detail Prope-rty Owner , ~ver.sified Partners Ilevelo alert Com an Street ,address ~563~ N Scottsdale Road Suite I50 - City ~ State Zip Code Pholle Number Pax h'umbet' P:-Mail Address ~ elzzabeth 4 Scottsdale ~ t~Z 8520 480-947-8800 480-947--8834 dcre~cort --- - Contact Perso~t ~ Phone Number j Liz Gaston 484--947-8804 _.. Applicant Same as 1'rt~perCy Owner Sheet Address Cit}- ~ State Zia Code ~ Phc~23e T~ttnTher I°tax Nultzher E-i~~t~til Address (~=ontact Person Phone Number A~cr€G{2eprescnt~tive ` lhe Plannit~ Center = - Street 13ddress ll~ ~OUtal Church t`lVenUe Slrlee, 6~ ~~ Cat}` .. ~ StiltC `llp ~.t?de PIt().11t; ~UIl2~7EY ~' iY Nt1tT1(~ll' l.i-!'~'l ~ll~ t~(IC~.TeS$ 1 lmarales @ Tucson A7 85741 524--623_6146 20-622-190 az Tannin center. ColTtaef Person _ ~ ~ Totiv°n v}' M<~ralta 1 T-; nda Morales Business License No . 102691. ~- , __.__.._ ;3, AL'THC~t21!,_~ ['lU1 UI' Pl20Pl~:1c"i1 U1~~_~`L:R .~~ I, the undLrsigned, celti~ that atl of the facts set forth in this application are tnre to the best o~ IYi~ knowied~e and that I aeli either the otiviler of the property or that L hai`e been ~authorizecl in w2'itint by the tlrv7Ter to file this applicatic~rf <utd checklist. {Tf rat azvner of rert~rd, attach wt-Itt~n atath~ ri~atit>u from t['_e ow°ner.) ~~o -'" ~}~~{ ~i Y 111 ~, ~• # i~~ ~r~i ~=> - ~ ~ - ___ __ _ s~~~~_~ _ Punt NaIIIC of ApplicanUAgelu Signature Bate yea om X'\SFI:LREi~ FILES~,Review CIlc,cklist~Apl~lication,doa Uav 2t)E?5 Regular Council Meeting -February 3, 2009 -Page 222 of 263 ~~~`'\ ~~~~ r ~~~ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council Item A 2 From: Frank Cassidy ,Town Attorney Subject: _Resolution No. 2009-14: Relating to Real Estate; vacating and abandoning any rights granted to the public by the easement recorded in Docket 11280, Page 262, Pima County Recorder's office, including any previously-recorded versions and as it may have been amended, located within the town limits of the Town of Marana; and declaring an emergency Discussion: This is a public hearing to consider whether to vacate and abandon any rights granted to the public by the easement recorded in Docket 11280, Page 262, Pima County Recorder's office, including any previously-recorded versions and as it may have been amended, located within the town limits of the Town of Marana. This easement, referred to as the "Subject Easement" in this Council Communication and in the proposed resolution, is the subject of litigation between Theresa Chamberlain and others as Plaintiffs and Saguaro Ranch Development Corporation and others as Defendants, Pima County Superior Court case number 020083779. Pima County Superior Court Judge John Davis issued an August 12 ruling in that case in which he stated: "Which party will succeed at trial on the merits rests upon whether or not the Town of Marana has or will exercise its prerogatives pursuant to A.R.S. § 9-240 (3)e. The record made at this hearing is sparse regarding the Town's position on abandonment." A copy of the ruling is included in the backup materials. This public hearing gives the Town Council the opportunity to make a record concerning its position on abandonment of the Subject Easement. Notice of this public hearing in the form included with the backup materials was sent by First Class Mail to the owners of the land identified on the Abandonment Notice Area map included with the backup materials. The notice area includes land whose owner may assert a need to retain a right of ingress or egress over the Subject Easement. A.R.S. § 28-7215(A) provides that "a roadway shall not be vacated if any land adjoining the roadway is left without a public or private legal access connecting the land with an established public roadway, unless there is expressly reserved in the conveying instrument the roadway rights of ingress and egress for public or emergency vehicles, all property owners, property owner guests and invitees and persons lawfully conducting business on the land." In addition, Town staff sent courtesy copies of the full draft of the proposed Council packet on this agenda item to the attorneys representing parties directly or indirectly involved in legal proceedings that may be affected by any possible Council action on this item and to individuals who specifically requested copies. As noted below, the original draft documents have been modified to incorporate an alternative, second motion. If approved, this resolution will authorize the Town Engineer to execute deeds of abandonment in favor of the abutting property owners, transferring title to the Subject Easement in the manner prescribed by A.R.S. § 28-7205. To satisfy the requirements of A.R.S. § 28-7215(A), each deed of abandonment will reserve a private easement for ingress and egress to properties that rely on the Subject Easement as their ONLY means of access, from the point of existing access on the Subject Easement Regular Council Meeting -February 3, 2009 -Page 223 of 263 southward. No private easement rights will be reserved north of each property's existing access point on the Subject Easement. ATTACHMENTS: Naz~~.e: ^ Reso_ Vacat""€ng_Saguaro Ranch easement (Of309271 i~DOC ^ Public Easement Abandonment Areas.pdf ^ Rlotice to Vacate_Saguaro Ranch easement (00.01.27Q7~,_C}f~_C I~escriptio~~: '1`ype: Reno abandoning Saguaro Ranch public easement Resolution Exh A to Resolution: Map of Public Easement Abandonment Areas Exhibit Notice iCt Vacate Saguaro Ranch publlG eaSe177ent ^ Thornydale public easement Abandonment Notice Area P~lap notice map_{a0012589).PDF ^ 2008081.2 Saguaro Ranch ruin df August 12 Court Ruling -g ~P- Staff Recommendation: Backup Material Backup Material Backup Material Given the volume of public input received since distribution of the initial draft materials for this agenda item, staff is providing the council with two possible alternative motions. The council may chose. to use one or the other, or substitute an entirely different motion. The first motion would be to approve the attached resolution. A second, alternative motion would be to direct staff to review and research the comments received from the public and continue consideration of this item until a future meeting when the information is available. Suggested Motion: Alternative Motion l: I move to adopt Resolution No. 2009-14. OR Alternative Motion 2: I move to direct staff to research the comments received and report any findings to the Town Council at a future meeting. Regular Council Meeting -February 3, 2009 -Page 224 of 263 MARANA RESOLUTION N0.2009-14 RELATING TO REAL ESTATE; VACATING AND ABANDONING ANY RIGHTS GRANTED TO THE PUBLIC BY THE EASEMENT RECORDED IN DOCKET 11280, PAGE 262, PIMA COUNTY RECORDER'S OFFICE, INCLUDING ANY PREVIOUSLY- RECORDED VERSIONS AND AS IT MAY HAVE BEEN AMENDED, LOCATED WITHIN THE TOWN LIMITS OF THE TOWN OF MARANA; AND DECLARING AN EMERGENCY.. WHEREAS the Town of Marana is authorized by A.R.S. §§ 9-240(B)(3)(e) and 28-7205 to vacate and abandon unnecessary Town roadways; and WHEREAS this resolution addresses rights granted to the public by the easement recorded in Docket 11280, Page 262, Pima County Recorder's Office, including any previously- recorded versions and as it may have been amended, located within the Town limits of the Town of Marana, all of which rights are referred to in this resolution as the "Subject Easement"; and WHEREAS the Town Council finds that the Subject Easement is not suitable for safe use as a public roadway and has no viable use and no market value for the purposes of A.R.S. § 28-7215(B); and WHEREAS the Town Council finds that it is necessary to reserve certain rights of ingress and egress to certain properties that rely on the Subject Easement as their only means of access; and WHEREAS the Town Council finds that this resolution is in the best interests of the Town and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL, OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Town of Marana hereby vacates and abandons the Subject Easement depicted on Exhibit A attached to and incorporated in this resolution, being those rights granted to the public by the easement recorded in Docket 11280, Page 262, Pima County Recorder's Office, including any previously-recorded versions and as it may have been amended, located within the Town limits of the Town of Marana. The Subject Easement vacated and abandoned by this resolution traverses portions of Sections 17, 20 and 29 of Township 11 South, Range 13 East, Gila and Salt River Base and Meridian. SECTION 2. The Town Engineer is hereby authorized to execute Deeds of Abandonment, vacating and abandoning the Subject Easement in favor of the adjacent land {00012711.DOC /} 1/14/2009 5:02 PM FJC/kc Regular Council Meeting -February 3, 2009 -Page 225 of 263 _ ] _ owners as described in A.R.S. § 28-7205, after and conditioned upon each individual adjacent property owner executing the acceptance block on the Deed of Abandonment, evidencing their acceptance of reservations in the Deed of Abandonment and their assumption of the cost of maintaining, and the liability for, the abandoned area. SECTION 3. The Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out this resolution. SECTION 4. It is necessary for the preservation of the peace, health and safety of the Town of Marana that this resolution become immediately effective, so an emergency is hereby declared to exist and this resolution shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 3`d day of February, 2009. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney {00012711.DOC /} 1/14/2009 5:02 PM FJC/kc Regular Council Meeting -February 3, 2009 -Page 226 of 263 _ 2 _ NOTICE OF PUBLIC HEARING TO VACATE PUBLIC EASEMENT NEAR AND THROUGH SAGUARO RANCH Mayor and Council of the Town of Marana February 3, 2009, at or after 7:00 p.m. Town Council Chambers, First Floor 11555 West Civic Center Drive Marana, Arizona 85653 NOTICE iS HEREBY GIVEN that the Mayor and Council of the Town of Marana will hold a public hearing to consider whether to vacate those portions of the public easement recorded in Docket 11280, Page 262, Pima County Recorder's Office, including any previously-recorded versions and as it may have been amended, located within the Town limits of the Town of Marana. If approved, this action would vacate the public's rights to the easement areas generally depicted on Exhibit A attached to this notice. This public easement traverses portions of Sections 17, 20 and 29 of Township 11 South, Range 13 East, Gila and Salt River Base and Meridian. Any objections to the Town .vacating and abandoning the identified portions of this public easement, including without limitation any claim that this action will leave land adjoining the easement without a public or private legal access connecting the land with an established public roadway (see A.R.S. ~ 28-7215), must be presented to the Mayor and Council of the Town of Marana at or prior to the public hearing in order to be timely considered. DATED this 15`'' day of January, 2009. By: Jocelyn Bronson, Town Clerk Regular Council Meeting -February 3, 2009 -Page 228 of 263 {00012707.DOC /} 1 /14/2009 4:44 PM FJC/kc • C: • N Abandonment Notice Area Background Image: May 2008 PAG Orthophoto C eeting -February 3, 2009 -Page 229 of 263 $ 1,000 500 0 1,000 2,000 3,000 Feet [wa Ou~xvn>.u x~.:°~~~nnhp~~:~u~,m ~w,~, ..~., W~, a,m *u ra., ar.~n.a.E..,. ~.w..ew.. a•mu a.. ~~.. r« e+r,M. ~ a..a..~..a ~.~w.,~w..w .,o w~c_Haa nA..m,e ~~ .~ y ~~~~~ p~G ~. ~ Zoas ~~~r~~~t~ ~ ~~~.~~~ ~~.c~., SGPf`Sltt~~t G(1 ~. ~~~5 A~li~~ 33 ARIZONA SUPERIOR COURT, PIMA COUNTY. JUDGE: HON. JOHN E. DAVIS CASE AIO. COURT REPORTER: NONE THERESA CHAMBERLAIN, a married woman, in her individual capacity and as member of the public Plaintiff vs. SAGUARO RANCH DEVELOPMENT CORPORATION an Arizona corporation; SAGUARO RANCH INVESTMENTS, LLC, AN Arizona limited liability company, et al., Defendants 020083779 DATE: August 12, 2008 RULING II~T CHAMBERS: The plaintiffs seek injunctive relief in order to enforce their access to a disputed area they argue is a deeded public easement. The defendants dispute the plaintiff's right to access and assert a right to prevent such access. The matter was briefed and argued after the conclusion of testimony and the admission of documents. The defendants opposed consolidation with an allegation in the amended complaint regarding a private easement claim and on the merits. Pursuant to Rule 65 (a) 2. Ariz. R. Civ. P. 'The parties agree there was a public easement. They disagree over its nature and whether it remains in existence. In order to obtain their injunction plaintiffs must show the passibility of irreparable injury. The defendants have blocked their access and summoned the Marana police. The likelihood of irreparable harm to plaintiffs during the pendency of this law seems remote because the Mauna police have been advised "not to issue any citations for criminal trespass within the disputed easement areas, unless and until a final judgment is obtained holding that these third parties have no rights within the disputed easement areas." Letter of May 1, 2008 to defendants' attorney from Frank Cassidy, Marana Brenda Goode Judicial Admirtistrative Assistant Regul~¢ga~gy$il Meeting -February 3, 2009 -Page 230 of 263 RULING Page: 2 Date: August 12, 2008 Case No: 020083779 Town Attorney. The plaintiff must also show that the balance of hardship favors them. As stated above the likelihood of police action imposing any hardship on the plaintiffs is remote. The defendants have declined to accelerate a resolution on the merits pursuant to Rule 65(a) 2 and seem content to await a final judgment leaving undecided whether Saguaro Ranch will or will not have the exclusivity it markets to its buyers. The plaintiffs have not shown that the balance of hardship favors them. Which party will succeed at trial on the merits rests upon whether or not the Town of Marana has or will exercise its prerogatives pursuant to ARS § 9-240 (3) e. The record made at this hearing is sparse regarding the Town's position on abandonment. The letter of May 1, 2008 quoted earlier does not resolve the issue. The record is insufficient to support plaintiffs' case for injunctive relief. Public policy would disfavor a ruling by a Court on the core issue of abandonment of a public easement where the Town has the prerogative to abandon or not abandon at any time pursuant to ARS § 9-240 {3} e. IT IS ORDERED the plaintiffs request for injunctive relief is DENIED. cc: Hon. John E. Davis Stephen M. Weeks, Esq. Craig Keller, Esq./ Daryl Wilson, Esq. 2177 E. Warner Rd, Ste 103 Tempe,. AZ 85284 Drue Morgan-Birch, Esq. Brenda Goode Judicial Administrative Assistant Regul~ <~¢i~l Meeting -February 3, 2009 -Page 231 of 263 ~w~~w~w~w~w~ '\. ~~~~ "~^s YNww =A1 NCR. N:AVJ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council From: Frank Cassidy ,Town Attorney Item A 3 Subject: Resolution No. 2009-15: Relating to Real Estate; Vacating that portion of Thornydale Road right-of--way located north of the Saguaro Ranch roundabout within the town limits of Marana; conditionally authorizing the Town Engineer to execute deeds of abandonment; and declaring an emergency Discussion: This is a public hearing to consider whether to vacate and abandon that portion of Thornydale Road right-of--way located within the town limits of Marana and north of the Saguaro Ranch roundabout, where the paved section of Thornydale Road ends. A dirt jeep trail currently exists within the portion of Thornydale Road proposed to be vacated by this resolution. The jeep trail is an unvegetated scar over the saddle located west of the Saguaro Ranch tunnel and east of the Tapestry (Foothills) project. Town staff is bringing this resolution forward for the Council's consideration pursuant to paragraph 3.7 of the First Amendment to Foothills Development Agreement approved by the Council's adoption of Resolution No. 2008-164 on December 2, 2008. Notice of this public hearing in the form included with the backup materials was sent by First Class Mail to the same landowners who received notice of abandonment of the Saguaro Ranch public easement. These are the owners of land abutting the right-of--way that is proposed to be vacated and the owners of all land that might possibly assert a need to retain rights over the right-of--way that is proposed to be vacated. A.R.S. § 28-7215(A) provides that "a roadway shall not be vacated if any land adjoining the roadway is left without a public or private legal access connecting the land with an established public roadway, unless there is expressly reserved in the conveying instrument the roadway rights of ingress and egress for public or emergency vehicles, all property owners, property owner guests and invitees and persons lawfully conducting business on the land." In addition, Town staff sent courtesy copies of the full draft of the proposed Council packet on this agenda item to the attorneys representing parties directly or indirectly involved in legal proceedings that may be affected by any possible Council action on this item and to individuals who specifically requested copies. As noted below, the original draft documents have been modified to incorporate an alternative, second motion. A letter dated December 23, 2008, from attorney John J. Brady of the Udall Law Firm, on behalf of James and Mary Schwebel, is included with the backup materials. Mr. Brady contends that the Schwebels currently rely on the Thornydale Road right-of--way for their legal access. Town staff contends that access over the right-of--way that is proposed to be vacated and abandoned by this action is hazardous due to the extremely hilly and rocky terrain, and believes that the Schwebels and anyone else who claims this area for legal access has existing alternative access to their properties. If approved, this resolution will authorize the Town Engineer to execute deeds of abandonment in favor Regular Council Meeting -February 3, 2009 -Page 232 of 263 of the abutting property owners, transferring title to the vacated roadway in the manner prescribed by A.R.S. § 28-7205. The Town Engineer will be authorized to execute each deed of abandonment when the receiving party signs the deed of abandonment and thereby agrees to assume any costs and liability associated with ownership of the abandoned right-of--way. ATTACHMENTS: Nttme: ~ Reso_Vacating__o_rth Thornydale_ROW (OOE112519}._DOC C~ North Thornydale_Road Abandonment Area ap,pdf ~ Tapestry. North Thornydale deed of abandonment ~O(}01252 ~.DOC ^ Saguaro_Ranch_Norfh Tbornydale_deed of abandonment (00012523~._D®C L~esc~°iption: Type: Resolution Extribit Exhibit Exhibit Backup Material Backup Material Reso vacating North Thornydale ROL^J Exh A to Reso: Map of Public Easement Abandonmer~t Areas Exh B to Reso: Tapestry C3eed of Abandonment Exh C to Reso: Saguaro Ranch Geed of Abandonment ~ Notiee_ta Va_cate_Thornydale Notice to Vacate Thornydale ROW RUW (00012510~.C30C ~ John Brady__Letter_re Schwebel Access (a©01249.0).PDF_ Staff Recommendation: Brady letter rs Schv~aebel access Given the volume of public input received since distribution of the initial draft materials for this agenda item, staff is providing the council with two possible alternative motions. The council may chose to use one or the other, or substitute an entirely different motion. The first motion would be to approve the attached resolution. A second, alternative motion would be to direct staff to review and research the comments received from the public and continue consideration of this item until a future meeting when the information is available. Suggested Motion: Alternative 1: I move to adopt Resolution No. 2009-15. OR Alternative 2: I move to direct staff to research the comments received and report any findings to the Town Council at a future meeting. Regular Council Meeting -February 3, 2009 -Page 233 of 263 MARANA RESOLUTION N0.2009-15 RELATING TO REAL ESTATE; VACATING THAT PORTION OF THORNYDALE ROAD RIGHT-OF-WAY LOCATED NORTH OF THE SAGUARO RANCH ROUNDABOUT WITHIN THE TOWN LIMITS OF MARANA; CONDITIONALLY AUTHORIZING THE TOWN ENGINEER TO EXECUTE DEEDS OF ABANDONMENT; AND DECLARING AN EMERGENCY WHEREAS the Town of Marana is authorized by A.R.S. §§ 9-240(B)(3)(e) and 28-7205. to vacate and abandon unnecessary Town roadways; and WHEREAS the Town Council finds that the Thornydale Road right-of--way specifically described below and referred to in this resolution as the Abandonment Area is not suitable for safe use as a public roadway and has no public use and no market value for the purposes of A.R.S. § 28-7215(B); and WHEREAS the Town Council finds that it is necessary to reserve certain rights of ingress and egress where an existing dirt access road crosses a portion of the Abandonment Area; and WHEREAS the Town Council finds that this resolution is in the best interests of the Town and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Town of Marana hereby vacates and abandons the Thornydale Road public right-of--way depicted on Exhibit A attached to and incorporated in this resolution and specifically described as follows (which is referred to in this resolution as the "Abandonment Area"): The East 75 feet of the South Half of the South Half of the Northeast Quarter of the Northeast Quarter, and the East 75 feet of the Southeast Quarter of the Northeast Quarter except the South Half of the South Half thereof, of Section 30, Township 11 South, Range 13 East, Gila and Salt River Base and Meridian; and The West 75 feet of the South Half of the South Half of the Northwest Quarter of the Northwest Quarter, and the West 75 feet of the Southwest Quarter of the Northwest Quarter except the South Half of the South Half thereof, of Section 29, Township 11 South, Range 13 East, Gila and Salt River Base and Meridian. {00012519.DOC /} 1/5/2009 3:06 PM FJC Regular Council Meeting -February 3, 2009 -Page 234 of 263 _ 1 SECTION 2. The Town Engineer is hereby authorized to execute the Deeds of Abandonment in substantially the form attached as Exhibit B and Exhibit C to this. resolution, after and conditioned upon each individual property owner executing the acceptance block on the Deed of Abandonment, evidencing their acceptance of reservations in the Deed of Abandonment and their assumption of the costs of maintaining, and the liability'for, the abandoned area. SECTION 3. The Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out this resolution.' SECTION 4. It is necessary for the preservation of the peace, health and safety of the Town of Marana that this resolution become immediately effective, so an emergency is hereby declared to exist and this resolution shall be effective immediately upon its passage and adoption. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 3`d day of February, 2009. Mayor Ed Honea ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney {00012519.DOC /} 1/5/2009 3:06 PM FJC Regular Council Meeting -February 3, 2009 -Page 235 of 263 _ 2 _ Map Ins~f ~ ~ ~ ~ , ~ ~,, .~ z m ~ ~ a , .~* . ~. _, ~ . • ~ ° M ' ' ~ s = ~ ~ f °" ' b~~ I +~°'~ °~ l `1 -,~ I W TANGERINE RD `' ~',:., :: t' .The Town at Marana provides this map information "AS Is" at the request cf the user wMh the understandlnp that It Is not puarameetl to be accurate, `. correct or complete and conclusions drawn hom such Information ara the ~ ~ ~• reaponaitrilKy of dte user. ~,... ,' ~.. in no evem shall The Town of Marana become I leble to users of these data - or any other party, for any loss or direct, intlirect, special, incitlemal or consequendal tlamapes, Including but not limited to time, money or m poodwlll, arlsing hom the use or motlMicadon of the dNa. . ' ~ y. ,~. N North Thorydale Road Abandonment Area -.~~ , w ~~~E ~ Marana Town Limits „ Matz.a~,~ f Regu~~r Council Meeting -February 3, 2009 -Page 2~6~nd Image: May 2008 PAG Orthophoto f "* $ touo soo o tooo aooo Feet Flle: ll'.\Town Attnnaykeguero rench_ebentlanmana_cmelr m~tl ®12-fla Tavn of Morena DEED OF ABANDONMENT (Exempt: A.R.S. ~ 11-1134 (A) (3)) The TOWN oN MARAN ~, an Arizona municipal corporation, hereby abandons pursuant to A.R.S. ~ 28-7205 and Town of Marana Resolution No. 2009-XXX in favor of TAPESTRY PROPERTIES III, L.L.C., an Arizona limited liability company, the following described real property situated in Pima County, Arizona. The East 75 feet of the South Half of the South Half of the Northeast Quarter .of the Northeast Quarter, and the East 75 feet of the Southeast Quarter of the Northeast Quarter except the South Half of the South Half thereof, of Section 30, Township 11 South, Range 13 East, Gila and Salt River Base and Meridian RESERVING easements, if any, pursuant to A.R.S. ~ 28-7210 for the following as they existed before this abandonment: (a) existing sewer, gas, water or similar pipelines and appurtenances, and (b) electric, telephone and similar lines and appurtenances. FURTIIER RESERVING for the benefit of the "Affected Neighborhood" as identified 1n Ex- hibit A to the First Amendment to Foothills Development Agreement recorded December 30, 2008 at Docket 13464, Page 394, Pima County Recorder's office, an ingress-egress easement over the South 50 feet of the North 170 feet of the property abandoned by this instnunent. DATED February , 2009. TOWN OF MARANA, ARIZONA Keith Brann, Town Engineer ATTEST: Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: Frank Cassidy, Town Attorney Regul~~~~~l~~ti~ -February 3, 2009 -Page 237 of 263 _ 1 - 1/5/2009 3:4f; PM FJC STATE OF ARIZONA County of Pima ~ ss. This instrument was acknowledged before me on February , 2009, by Keith Brann, Town Engineer, on behalf of the TOWN OF MARANA. My Commission Expires: Notary Public The undersigned hereby accepts title to the property abandoned by this instrument subject to the reservations set forth in this instrument, and agrees, pursuant to A.R.S. ~ 28-7215(B), to assume the costs of maintaining and the liability for the property abandoned by this instrument. TAPESTRY PROPERTIES III, L.L.C., an Arizona limited liability company By: FOOTHILLS NL1R:1Nr1, L.L.C., an Arizona limited liability company, a Member By: TOWN WEST REALTY, INC., an Arizona corporation, its Manager By: Title: By: GEORUIO L.L.C., an Arizona limited liability company, a Member By: George Costantini, Manager & Member By: FUTURE OF NEW MEXICO, L.P., a Delaware limited partnership, a Member By: Peter Fasseas, General Partner STATE OF ARIZONA County of Pima ~ ss. The foregoing instrument was acknowledged before me on 2009, by as of TOWN WEST REALTY, INC., an Arizona corporation, as Manager of FOOTHILLS MARANA, L.L.C., an Arizona limited liability company, as a Member of TAPESTRY PROPERTIES, III, L.L.C., an Arizona limited liability company, on behalf of the LLC. My commission expires: Notary Public Regu1~6~~~1~@ti~g -February 3, 2009 -Page 238 of 263 _ 2 _ 1/5/2009 3:45 PM FJC STATE OF ARIZONA County of Pima ~ ss. The foregoing instrument was acknowledged before me on , 2009, by George Costantini, as the Manager and the Member of GEORUIO L.L.C., an Arizona limited liability com- pany, aMember, as a Member of TAPESTRY PROPERTIES, III, L.L.C., an Arizona limited liability company, on behalf of the LLC. My commission expires: Notary Public STATE OF ARIZONA County of Pima ~ ss. The foregoing instrument was acknowledged before me on , 2009, by Peter Fasseas, as the General Partner of FUTURE of NEW MExICq L.P., a Delaware limited partnership, as a Member of TAPESTRY PROPERTIES, III, L.L.C., an Arizona limited liability company, on behalf of the LLC. My commission expires: Notary Public Regul~6~~~l~~ti~ -February 3, 2009 -Page 239 of 263 _ 3 _ 1/5/2009 3:48 PM FJC DEED OF ABANDONMENT (Exempt: A.R.S.. 11-1134 (A) (3)) The TOWN oF' M~R~~N:~, an Arizona municipal corporation, hereby abandons pursuant to A.R.S. ~ 28-7205 and Town of Marana Resolution No. 2009-XXX in favor of TITLE SECURITY AGENCY OF ARIZONA, INC., an Arizona corporation, as trustee under Trust No. 773 and not otherwise, the following described real property situated in Pima County, Arizona. The West 75 feet of the South Half of the South Half of the Northwest Quarter of the Northwest Quarter, and the West 75 feet of the Southwest Quarter of the Northwest Quarter except the South Half of the South Half thereof, of Section 29, Township 11 South, Range 13 East, Gila and Salt River Base and Meridian. RESERVING easements, if any, pursuant to A.R.S. ~ 28-7210 for the following as they existed before this abandonment: (a) existing sewer, gas, water or similar pipelines and appurtenances, and (b) electric, telephone and similar lines and appurtenances. FURTHER RESERVING for the benefit of the "Affected Neighborhood" as identified in Ex- hibit A to the First Amendment to Foothills Development Agreement recorded December 30, 2008 at Docket 13464, Page 394, Pima County Recorder's office, an ingress-egress easement over the South 50 feet of the North 170 feet of the property abandoned by this instrument. DATED February , 2009. The undersigned hereby accepts title to the property abandoned by this instrument sub- ject to the reservations set forth in this in- strument, and agrees, pursuant to A.R.S. ~ 28-7215(B), to assume the costs of maintain- ing and the liability for the property aban- doned by this instrument. TOWN OF MARANA, ARIZONA Keith Brann, Town Engineer ATTEST: TITLE SECURITY AGENCY OF ARIZONA, INC., an Arizona corporation, as trustee under Trust No. 773 and not otherwise Jocelyn C. Bronson, Town Clerk APPROVED AS TO FORM: By: Its: Frank Cassidy, Town Attorney Regul~6~~~1~e@t~ -February 3, 2009 -Page 240 of 263 _ 1 - 1/5/2009 3:48 PM FJC STATE OF ARIZONA County of Pima ~ ss. This instrument was acknowledged before me on February , 2009, by Keith Brann, Town Engineer, on behalf of the TOwN of MARANi~. My Commission Expires: STATE of ARIZONA County of Pima ~ ss. The foregoing instrument was acknowledged before me on as AC=ENCY OF ARIZON~~, INC., an Arizona corporation, as trustee under Trust No. wise. Notary Public My commission expires: 2009, by of TITLE SECURITY 773 and not other- Notary Public Regul~b~~~l A~e~ti~g -February 3, 2009 -Page 241 of 263 _ 2 - ~ /5/2009 3:48 PM FJC NOTICE OF PUBLIC HEARING TO VACATE THORNYDALE ROAD NORTH OF THE SAGUARO RANCH ROUNDABOUT Mayor and Council of the Town of Marana February 3, 2009, at or after 7:00 p.m. Town Council Chambers, First Floor 11555 West Civic Center Drive Marana, Arizona 85653 NOTICE IS FIEREBY GIVEN that the Mayor and Council of the Town of Marana will hold a public hearing to consider whether to vacate that portion of the Thornydale Road public right-of--way located within the town limits of the Town of Marana and north of the Saguaro Ranch roundabout. If approved, this action would vacate the public Thornydale Road right-of--way generally depicted on Exhibit A attached to this notice and specifically described as follows: The East 75 feet of the South Half of the South Half of the Northeast Quarter of the Northeast Quarter, and the East 75 feet of the Southeast Quarter of the Northeast Quarter except the South Half of the South Half thereof, of Section 30, Township 11 South, Range 13 East, Gila and Salt River Base and Meridian; and The West 75 feet of the South Half of the South Half of the Northwest Quarter of the Northwest Quarter, and the West 75 feet of the Southwest Quarter of the Northwest Quarter except the South Half of the South Half thereof, of Section 29, Township 11 South, Range 13 East, Gila and Salt River Base and Meridian. Any objections to the Town vacating and abandoning this right-of--way, including without limitation any claim that this action will leave land adjoining the right-of--way without a public or private legal access connecting the land with an established public roadway (see A.R.S. ~ 28-7215), must be presented to the Mayor and Council of the Town of Marana at or prior to the public hearing in order to be timely considered. DATED this 9`'' day of January, 2009. By: Jocelyn Bronson, Town Clerk Regular Council Meeting -February 3, 2009 -Page 242 of 263 {00012510.DOC /} D.B. UDALL EDWIN M. GAINES. JR. JOHN J. BRADY PETER AKMA.IIAN LORI A. PETERSEN THOMAS A. LANGAN LAWRENCE S. ROLLIN $ EDWARD MOOMJIAN II SUZAIVNE L. BREI $$ UDaLL Law FIRM., LLP ATTORNEYS AT LAW 4801 E. BROADWAX BLVD. SUITE 400 TUCSON, ARIZONA 85711-3638 TELEPHONE (520) 623-4353 FAx (520) 792-3426 www.udalllaw.com December 23, 2008 Frank Cassidy Town Attorney TOWN OF MARANA 11555 W. Civic Center Dr., Bldg A2 Marana, AZ 85653-7003 Dear Frank: Re: Saguaro Ranch/Thornydale Road MICHELE G. THOMPSON MARC CULLEN GOLDSEN MELISSA NOSHAY PETEO JEANNA CHANDLER NASH JANET HOMO LINTON $ ALSO GCENSED IN ILLINOIS $$ AL50 LICENSED IN CALIFOIWIA $ NEVADA John J. Brady 520-623-4353 JBradyC~udalllaw.com Client Matter No. ~ECEIVEI? DEG ~ ~ 20~g ~ TO1R/ry /`1TTOgyEY I believe at some point near in time to your deposition we discussed access through Saguaro Ranch.. This is to confirm that my clients', James and Mary Schwebel, presently enjoy only a verbal license to use the "tunnel entrance" to the Old Ranch House Road and related easements through Saguaro Ranch Development. This license, obviously, is terminal at any time at the will of Saguaro Ranch Development. It is my understanding that -you are in the process of evaluating the potential abandonment of other legal access routes in the area, specifically Thornydale Road. In your review, please keep in mind my clients' legal access is currently through Thornydale Road and not through the tunnel. Please include rriy clients' considrr~ations as you move forward. By copy of this letter to Joe Tarver and Craig Keller, attorneys for Saguaro Ranch, I am requesting they re-evaluate their client's position to only grant my client a verbal license to use this access. In the event they would grant my clients a permanent easement through the tunnel and through Saguaro Ranch Road, I believe we would have no further involvement in any. abandonment proceedings you where to undertake. Regular Council Meeting -February 3, 2009 -Page 243 of 263 B>L~s,~~FIRM, LLP December 23, 2~8 Page 2 If you have any questions, please do not hesitate to contact me. Sincerely, UDALL LAW FIRM, LLP ohn J. rady cc: Joe Tarver Craig Keller Regular Council Meeting -February 3, 2009 -Page 244 of 263 .~ ~~~ ~~{ ~~.,~ fl~ ~Kx. 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council From: Jane Fairall ,Deputy Town Attorney Item A 4 Subject: Ordinance No. 2009.01: Relating to Offenses; amending Title 11 of the Marana Town Code to prohibit the act of leaving a child under the age often unattended in a motor vehicle; adding Chapter 11-8; renumbering existing Chapters 11-8 and 11-9; and designating an effective date. Discussion: The proposed item was first presented to Council for discussion and direction at the January 20, 2009 Council meeting. No changes have been made to this items since its initial presentation. This proposed ordinance would add a new chapter to Title 11 of the Marana Town Code prohibiting the act of leaving children under 10 years of age unattended in vehicles under certain circumstances. The Marana Police Citizen Advisory Commission considered the proposed ordinance at its December 9, 2008 meeting and recommended that the ordinance be presented to the Council for its consideration. The ordinance prohibits leaving children under 10 in a vehicle by themselves if 1) doing so would present a risk to the child's health, safety or welfare or 2) if the vehicle's engine is running or the keys are located within the passenger compartment of the vehicle. The ordinance does not apply if a person age 14 or older is in the vehicle with the child. A violation of the ordinance would be a class 1 misdemeanor. If convicted, offenders would face a minimum mandatory sentence of a $1,000 fine. The Marana Town Code (Section 6-4-2) already contains a provision that prohibits leaving animals unattended in vehicles where the ventilation is such that the animal's health would be endangered. While the state .criminal code contains laws generally prohibiting child abuse, endangerment and neglect, the proposed Town Code ordinance would address the issue of leaving children in motor vehicles, which is not specifically addressed in state law. ATTACHMENTS: Name: 3escriptic>n: ,l.yfse: O Unattended children in vehicles ordinance (f10092044- C}rdinance ®rdinance 2}C}~C Staff Recommendation: Staff recommends approval the ordinance prohibiting the act of leaving children under ten years of age unattended in a motor vehicle. Commission Recommendation - if applicable: The Police Citizen Advisory Commission voted unanimously at its December 9, 2008 meeting to Regular Council Meeting -February 3, 2009 -Page 245 of 263 recommend that the proposed ordinance be presented to Council for its consideration. Suggested Motion: I move to adopt Ordinance No. 2009.01. Regular Council Meeting -February 3, 2009 -Page 246 of 263 MARANA ORDINANCE N0.2009.01 RELATING TO OFFENSES; AMENDING TITLE 11 OF THE MARANA TOWN CODE TO PROHIBIT THE ACT OF LEAVING A CHILD UNDER THE AGE OF TEN UNATTENDED IN A MOTOR VEHICLE; ADDING CHAPTER 11-8; RENUMBERING EXISTING CHAPTERS 11-8 AND 11-9; AND DESIGNATING AN EFFECTIVE DATE WHEREAS the Town Council finds that the act of leaving a child under the age of ten unattended in a motor vehicle presents a risk to the child's health, safety or welfare; and WHEREAS the Town Council finds that the Town's interest in protecting the welfare of its citizens is compelling; and WHEREAS the Town Council finds that the adoption of a prohibition on the act of leav- ing children under the age of ten unattended in motor vehicles as set forth in this ordinance is in the best interests of the Town and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, as follows: SECTION 1. Title 11 of the Marana Town Code is hereby revised by renumbering exist- ing Chapter 11-8 as Chapter 11-9 and renumbering existing Chapter 11-9 as Chapter 11-10 and by adding new Chapter 11-8, as follows: Chapter 11-8 UNATTENDED CHILD IN MOTOR VEHICLE; CLASSIFICATION; PENALTY Section 11-8-1 Prohibited conduct It is unlawful to leave a child who is under ten years of age in a motor vehicle without supervision by another person in the motor vehicle who is at least 14 years of age if either of the following applies: A. The conditions tend to present a risk to the child's health, safety or welfare; or B. The motor vehicle engine is running or the key to the motor vehicle is located in the passenger compartment of the motor vehicle. Section 11-8-2 Protection of children by town A. Any peace officer is authorized to use whatever force is reasonable and nec- essary to remove any child from a motor vehicle whenever it appears that the child's life or health is endangered by extreme temperatures, lack of ventila- tion or any other condition existing within the motor vehicle. Regul~6~u~i~l~~ir~~~ February 3, 2009 -Page 247 of 263 _ 1 _ JF 1/21/09 B. No peace officer shall be liable for damages to property caused by the use of reasonable force to remove a child from a motor vehicle as described in this section. Section 11-8-3 Violation; penalty A. A violation of this chapter is a class 1 misdemeanor. B. A person convicted of violating this chapter shall be fined not less than $1,000. The magistrate may not grant probation in lieu of or otherwise sus- pend the imposition of the minimum fine prescribed by this paragraph. SECTION 2. This Ordinance shall become effective on the 3rd day of March, 2009. PASSED AND. ADOPTED BY THE MAYOR AND COUNCIL OF THE .TOWN OF MARANA, ARIZONA, this 3rd day of February, 2009. ATTEST: Jocelyn C. Bronson, Town Clerk Mayor Ed Honea APPROVED AS TO FORM: Frank Cassidy,. Town Attorney Regul~6~u~i~f~4ir~~F February 3, 2009 -Page 248 of 263 _ 2 - JF 1/21/09 .~ ~" "'t ~~~ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council Item A 5 From: Gilbert Davidson ,Town Manager Subject: Resolution No. 2009-16: Relating to Strategic Planning; approving and authorizing the Town Manager to implement the Town of Marana Strategic Plan; and declaring an emergency Discussion: The Town of Marana has completed its first Strategic Plan, representing four months of in-depth work to identify the key focus areas and initiatives that are priorities for the community and the council. The strategic plan serves as the foundation for future land use planning, the Town's budget process, and for assessing individual and organizational performance. Beginning with the council's retreat on November 14, 2008, the strategic plan was crafted with input from all corners of the Marana community, including residents, homeowner's associations, citizen advisory commissions, business concerns and the Marana Chamber of Commerce, the Marana Unified School District, and Town employees. A total of 12 public forums were held to solicit comments and input on the plan. Citizens were also invited to submit comments via the Town's web page. In developing the plan, the council also looked outside of their immediate jurisdiction and examined best practices in communities who were able to successfully translate their strategic vision into reality. During the November retreat the council met with representatives and toured the cities of Tempe, Glendale and Chandler. The key components of the strategic plan document include the following: 1. Vision Statement -unique and distinct to the Town of Marana, based on the Town's assets and values. 2. Five Focus Areas -broad areas of concentration as the Town moves forward in its development. 3. Overriding Principles -key values underlying the Town's actions. 4. Initiatives -broad efforts the council wishes to see undertaken in each focus area. 5. Action Strategies -specific actions staff will undertake to support initiatives. On January 20, 2009, the council received a summary of citizen comments, along with staff recommendations for incorporating those comments. Those recommendations have been addressed in the final document under consideration this evening as well as the additional comments the council provided on January 20. A summary of the comments that have been incorporated into the document is attached to this cover sheet. Regular Council Meeting -February 3, 2009 -Page 249 of 263 This evening the council may adopt the strategic plan in its current form, or propose additional revisions and direct staff to return with those changes. Staff has prepared a resolution for adoption of the document in its current form. If approved, the attached information will be printed and distributed both in hard copy and electronically wherever possible. A copy of the final document will also be posted on the Town's web page. Following adoption of this document, the strategic plan information will be incorporated and used in the preparation of the FY 2010 budget and employee performance management system. The strategic plan document will be distributed separately from agenda materials and no later than January 29, 2009. Financial Impact: There. are no immediate financial impacts, however the individual initiatives and action strategies have costs associated with them that will need to be fully identified by the staff and considered by the Council given evolving economic conditions. These will generally be considered as part of annual fiscial year budget development and adoption. ATTACHMENTS: Name: [description: ~ Reso re adoptic~n_of strategic plan {00012899).I~C}C Resolutior3 ^ Deb_strategcp{_a_n carrrments and recommendations 1-22-09.doc Strategic Flan Cornrr€enfs 1-22-09 Staff Recommendation: ,l`ype: Cover Mento Cover Memo Staff recommends the adoption of Resolution 2009-16 approving the Town's Strategic Plan. Commission Recommendation - if applicable: Presentations about the strategic plan were provided to Boards and Commissions and comments were solicited. Where received, those comments have been included in the plan document. Suggested Motion: I move to adopt Resolution 2009-16. Regular Council Meeting -February 3, 2009 -Page 250 of 263 MARANA RESOLUTION NO.2009-16 RELATING TO STRATEGIC PLANNING; APPROVING AND AUTHORIZING THE TOWN MANAGER TO IMPLEMENT THE TOWN OF MARANA STRATEGIC PLAN; AND DECLAR- ING AN EMERGENCY. WHEREAS the Town of Marana has engaged in a four month process of in-depth work to identify the key focus areas and initiatives that are priorities for the Town of Marana; and WHEREAS the Town of Marana has developed a strategic planning document to serve as the foundation for the Town's future, including land use planning, budget development and assessment of individual and organizational performance; and WHEREAS the Town Council finds that adoption of the strategic plan as set forth in this resolution is in the best interests of the Town and its residents. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Town of Marana Strategic Plan, attached to and incorporated by this refer- ence in this resolution as Exhibit A, is hereby approved, and the Town Manager is hereby authorized to implement it for and on behalf of the Town of Marana. SECTION 2. The Town's Manager and staffare hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the aforementioned Town of Marana Strategic Plan. SECTION 3. Since it is necessary for the preservation of the peace, health and safety of the Town of Marana that this resolution become immediately effective, an emergency is hereby declared to exist, and this resolution shall be effective immediately upon its passage and adoption. PASSED, ADOPTED, and APPROVED by the Mayor and Council ofthe Town of Marana, Arizona, this 3`d day of February, 2009. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. 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Q N c ~ 3 ~ a C > c ~ ~ c ~ ` o F iL ~ t C N -O s ~ } •3 m ~ '- ~ ~ ~ 3 'X ~^ ~ C a N •x Y L o a ~ a, a O p c '~+ ~ s o L Q ~ a s a {.~ C L ~ O d c O_ ~ O 0 N L ~^ O } N c O s ^3 ~ a a ~ ~' o a ~ ~ N Q ~ ~ ~ a1 N a N o c o $ ~ ~ a a~ o m a a ,~ ~ 3 Q Q C c ~ a L O N~ c `- a ~ O O L N N~ ~ N F- as- N ~ a N N y- ~ C (}J • ~ y c O L C N L N c ~ ~ ~ c Q- ~ ~ 'a t ~ O ~ N ~ ~ ~ a C N ; O a L ~ } L ~} ~' a V u, L ~ ~ s ~ ~ ~ a c a N ~ 'O" N a O ~ N ~ N E a O ~ Q ~ o v x ~ = E N m V V V 3 c r W a ~ ~ L ~ N ' ~ L O ~ O } 3 y _ H ~ ~-o c N a o v v a ~- L °' o~ ~ ~ a V ~ c 3 o ' E 0 .~ a~ c H W c o_ E a t o m o .- a E y = } ~, '} ~ j o E Q a m s = .. r ~ °~ ~ C m t O V N ~ s O a a 3 ~ Q ~ ~ c ~ `L' ~ a > o `~ ' ~ 3 `~' - ~ ~ 5 a a a a ~, ~ - a ~ ~ a W L OL ~ ' O c ~ 0 N V O N ~ y c a 0 U ~ c i 5 ~ a E ` ~; cOc ' ~ ~ Z , ~ ~ a N • • • L ~ ~ 0 ~ c • a c • Z V Q V c ~ 0~ ~ ~ . w ru o W m ~ V O N~ ~N Z N LL ~ a~ a C a N C .y 7 ~ a c } N a L N ~ O s a ~ o ~ ~ ~ ~ c~ Q- d ~ ~ ~ Y a S } L ~ '" 3 a O Q N ~ L ~ O. a m ~ N ~ C ' O C • Z L ~ ~ ~ T ~ ~ ~ ~ Y V_ • '- O a ~ ~ ~ O t _ N a ~ ~ ~ ~ ~ V C a = a ~ Y o ~ a V ~ ~ Q ~ N o v = ~° } a N N N ~ p } } p ~ W O } a ~ N C W ~ ~ •~ ° ~ N N ~ a ~ a V a ~ N ~ W N N a t~ a N ~ Z } w N ~ ~ Q O ~ H a N • • Z Q U F- W m ~ N V } J ~F ~ VI O _ C V N . .~ L ..~ a a m ~ N a V •~ ~1~ ~/ } ~ C C ~ < a Q ° ' ,i ~ O N LL ~ ~ L a ~ ~ y ~ ~ } - O } ~ ~ L N O v 7 ~ C C ~ a a ~ O cv • w CI c a O L V a ~ ~ x ~ ~ C C C v u ~ U } •~ ~ ~ ~ N a a '^ ~ N V o ~ ~ o Q- ~ N ~ t ~ N N 'VI N } _~ T N c O a = a L c O v Q. a c ~ a O } ' ;~ X ~ ~ N c ^~ ~ c a W >- ~ ~ ~ ~ \ ~ ~+ ~ N = N p N v } V ~ ~ N uNi a ~ fl' > a C9 > '> o ~ m a ~ ° ~ a o W a a a ~ w_ N } n u ; ~ H ~ ~ ~ a w~ ` L L / Z ~ m U a Q O ~ o ~ V a • Z a ~ w a ~ a ~ W ~ m ~ ~ C ~a- O N • ~ ~ v ' a ~ ~ L } ~ A, YI N ~ ~„~ N O ~ LS ~ ~w N N V z m LL ~ _O c C ~ a C u N a ~ O c . ~ O -a ~ Q a ~ . } V a ~ ~ N } .~ Q L o ~ ,o O ~"' ~ ~ } ~^ V N '~ a .o a '> Q ~ V 'L 3 O L N L N O ~ ~ ~ ~ 3 ~ ~ ;.. O O ~ a ~ ~ ~ c _ 4; ~ ~ C a a ~ ~ a ~ t J V ~ Q) N = L y_ ` ^ N ~ L s N ~ ~ V ~ O - _ a ~ ~ c • = 3 o N ~ c ~ ~ O ~ } L ~ W C N ~' 4'- ~ ~n N ~ a ~ ~ o ~ ~ ? . _ ~ a ~ ~ o a ~ .O W ~ Y } L N O Q (7 N ~ w ' ~ X ~+- O O N W F Z Q ~ o a Q ~ L '= y- ~. ~ W ~ ~ ~ ~ $ a ~ v ~ ~ Z Q U '^ ~ ~ `.~ a O o L ~ Q- E U ~ • Q • Z ~ a o W W m V ~+ ''^^ O V V N N Z 'O E u, a' V N C .~ L a Q a V a C O N L a N a~ ~ c N y Q > > W i~ a x ,~ N a ~ y T ~ W ~ N ~ N WW` ~ L r O ~ a a oc t W H S ~ ~ ~ Z a o V o ? a~ o- a F W m ~ ~ ~ ~ V V V V ~ ~ ~ ~ ~ ~ y- ~ V •p N _ N _ _N N _ m Z o o m o C C ~ E I.L C o a a C a C a C a ~ N ' a m C a V a } } C a m ~ o } o N 4- m ~ N V . ^ C ~ • O a i C i o a ~ ~ < < ~ a i C N ` • v T ' Q ~ a a C } ~ N N s *' ~ ~ > a } ~ ~ ~ c > N ~ O ~ L N •- a m = a i- L = a N . C .~ ~ ~ a . N O W E ~ > a) a ~ V ~ _ ~ _ N ~ N ~ V N N ~_ • K N O W y N O L L } N ~ = O ~ Q ~ Q ~ 4- a) N ~C X ~. 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N '> Q N ~ N m a O Q O V c ~O ~ ~ ~ Q i ~ u a L a ~ Q 'V ~ 'c c ~ a ~ ~ } N a V ~ N Q a L ~ ~ a - 3 c ~ ~ ~ '~ a N a~ N W ~ c ~ N ~ 'v~ ~. m m a~ a tyu O N ~ p N a a m ~ ~ N ~ a c w ~ ~ a ~ Z ~ ~ a O :~ a ~ v Z Q ~ X F W 0 m R ~ +9 ~ ~ A U V ~ ~ V 7 c d C ~ a a N Y ~ ~ O V • V • c LL U • d c a nn,~ W L ~ L ~ L ~n C ~ c N U v ~ N N u `~ N N v `+' N N V ~ c~ ~ ~ O ~? o c O c' •~ V ~ 'i C ~ ,N L ~ ~ ^VI L N G N '.L c~ o ~ Z Q to O ;~ ~ N d N Q u+ m N ~ C Q. H m ~ ~ V ~ o ' a o ' Q 0 ~ Y c c > L C > L H a ~ ~ ~ ~ ~ ~ o~ f o~ v N N N a } = ~ -a a °~ m ~ L ~ a '3 V c ,~ v N N ~ •~ ~ N _ 3 •L ~ ~ ~ V a T c a N ~ o N L N s ~ a s ~ v O N N ~ ~ ~ Q ~ c ~ ~ L "' c '- o a N ~ . ~ N ~ N E c ~ ', -_ ~ ^ N t N ~ V N Q- O Q ~ E V O N O w~ W ~- C C C _ '~( L }_ V ~ N T N ~ ~,~ W U . O O L O ~ ~ a ~ V ~ N U ~ a } a c O ~ .> Q ~ L a Q o ~ u Q o ~ L a `F o ~ V _ ~ N ~ '~ ~ V O ~ ~ ~ ~ a Q a 0 ~F m } c ~ ~ > c c a ~` Q .- N ~- ~ c N to ~ +- a v m c > N O O s c o c N a ,,, ~~ ~ y N ~ N O ~ ~ ' N V ~ ~ ~ ~ t0 ! a ~ `~ a ~ a a > ~ s a ~~ m _ i O ~ L a Q o a i E 3 c a E . ~ ~ ._. a o c y ~n o n V W ~- m ~ ~ ~C ~ > c ~ o a' w O L N o +- N O N (J 'p N ~ '~ a s s ~ > a ~ ~ a ° ~ .~ ~ ~ a ° a a } a ~ N o ~ a p m o N Q ~ c ~ N ~ ~ ~ ~ a a 3 T ~ ~ a ~ :~ a o >. a~ a ~ ' ~ m ~ L ~ ~ ~ ~ c ~ o ~ ~ ~ 3 m > ~ ~ a ui H N *- c c c a N 3 ?` ~ c m o c~ o V ~ a Z ~ ~ ~ - a U~ a s ~ s ~ a ' ^ y U w Q p m o ~ ~ ~' a ~ a Z Q U ~ ~ ~ O d ~ w N r~ 1 zz ~ Q ~~ m a t i H W ~ m if? ~ ~ C V Q~ O v ~ > O ~ •~ •~ ` Q ~ N N vi a N "- ~ a • C S L • Z a. Q o vi i~ ~ N ~ ~ t U U ~ 1 ~ N N ~ ~ d N a ~ 3 O O d O ~ m O L ~ N N ~ N a 3 _ ~ 'o } a ~ ~ ~ • m ~ 3 '- ~ ~ O N _ O ~' t H ~ a U ~ ~ ~ s a ~-c ~ p a } ~, a c a 'a •L a ~ ,~ o ~° ,~ o ~ o ~ ~- a~ < a = a " ~ ~ ~ O ' a ~ m ~ ~ 3 a a , 3 ~ ~ ~ a o ~ • 3 ° L ~ ~ ~ ~ } O O N O ~ O Q ~ Q ~ ~ L ~~ ~ N ~ O ~ = O } s O +- O O } v +.. , ,~ N a C O ,n C } ,,, o ~ L 3 ~ o a o a~+- a~ ~ a ° C ~ ~ V Q ~ Q O I.F N ~ ~ ~ L ~ s> > o a~ ~ V Q C O V ~ ~ N ~ ~ L ~ ~ C ~ _ a ' ° a ~ a u , ~ o s ~ ~ ~ ~ :~ ~ m ~ i o a ~ Q ~ ~n N C ~ ~ i :_^ ~ ~ ~ ~ ~ W O>> ~ O Q v ~ W a~ a v o a ~~ ~ ~, t- ~ a o~ o a o a ~_ Q ~ } -a m ~ ~ a 3 " ~ ~ O~ } a } Q N }~ H W > N a aai 3 m ,~°' ~ a > a ~ > I- Z Q,n ~ a a ~ o 3 5 O '^ ~ Z U a ~ ~ ~ o~= > ~ =~, O O ~ H W ~ m s9 9 R o O = v N ~ ~ ~ d VI N N Vl ~ V U V V a •L •L O •L •L V N N N N~ N N N O ~ N ~ O N w _ C N N ~ ~ Z Q. o Q Q ~ Q. _ {i L! 0 O m a 0 O U ~ O N . Q ~ ~ ~ ~ N 0 ~ a O~ ~ ~ N ~ O } ~ O O ~ u o ~ ~ ~~ ~ c a ~ ~L N ~ ~ Q' N ~ O a v ~ N ~ ~ O L Q ~ ~ } ~ ~ Q cc C N } ~ ~ O L O ~ () a m O w ~ N d ~ N t ~ ~ ~ N ~ ~ O Q 4~ N O W~ O~ N O O a) a • ~. ~ ~ O~ ~ v a a N a' _ N C a ~ ~ -~ a ~ ~ ~ a N a g U ~ V ~ C a Z ~ ~~ } O L ~ ~ N C a W ~- c a . U ' c 0 ~ ~c E ~ ~- O L s •i N ~ ~ ~ ~ ~ ~ y- 5 ` ~ N ~ ~ ~ ~ O ~ } N • ~ O ~ C .O ~ W Q~ •~ ~ ~ } c ~ .~ ~ ~ O c 'K N Q } ~ ,~ c a) N . 0 N N N ~ N~~ ~ N O p ~ N N a ~~ >~ 'a ~° a ~ c H s ~ y a, t~ 3 a m ~' o o ~ a~ c o ~ W a a' a ~~ ~ - . 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W a s a m ar ' ~~ ~ E ._ ~ y ~ s ~ v ~ ~ N .L ~ a ~ N .~ N ~ ~ ~ ~ y- ~ ~ O W o ~ m O ~ ~ ~ ~ O O ~ > E a N v c • ~ _ ~ `{' N a W C ~ C O ~ Q". ~ N a .L ~ `~ ~ m F- a •~ ~ a~ p ~ E~ L m r ;~ tJ ~ a a ~ -° ~ ° 0 c ~ ~ ~ tit H ~ N ~ > w , ~ ~ ~ ~ ~ Z a; ~ a. 0~ 3 a a o- a 4 O ~ m a , °' . ~ V ~ ~ a m u a s a W H W m U C C •A 'N Z m LL ~ LL C ~ a a ~= N a Z5 C O O ~ a a m °- 0 u ~ a~ ~ a a N a ~ c ~ U 5 •N i- N ~_ V N o } a L a`_ ~ '~ ~ c~ ~ T ~ } au a 1 ~ ~ ~- N ~ ~ ~ ~, a W s fl~ ~- } °' N 3 N ~ W Q W '^ Q F c x a o w d, a W ~" ~ H N Z Q a O ~ U ~ ao N f :., 1 i i~ 1 1 1-- W ~ m ~ ~ ~ N V C a C LL. C ~. O } O a m } a V U ~+- O V ~ N _ ~ L Z o ~ c o ~ a ~ aN Q Y C V Y y n ~ d d - N ~ ~ C ~ • O C • ~ ~ ~ mil! ^, V V Li t C *~ ~ •N _ c ~ O O ~ 'v a ~' L O a N w - ~ L ~ V ~ ~ L a O "' 3 3 c ° o o a a ,~ m N +. N N a a $ o ~ •- } L •> Q V1 .~ ~ ~ a~ „ O v N a' 3 ~. ~ae> L a °~ } d cc L O C ~ ° ~ = a ~ V ~ ° o a ~ a s ~~ a N d © W L = ~ a i ~ ~- t ~ ~ ~ E 0! N E m W Q ~ E ~ t O . L ? W N ~ V ~ ~ ~ E _ a ~ } ~~. ~ ~ ~ a o ~ ~ ~ H a ~~ ~ Q o m a Z a p a o~ u ~ 4 O o ~ m ~ > ~ C Z Q 0 U F ~ W ~S ~ 8? ~ m ts'3 L ~n Qk .~ L ° 2 ~r A, ° V ~ ~N •~ O ° •A _VI Z a~ ~ ~ ~ ° Q a _ c a a Q H +_ Z's N U Q' a _a o ~ ~ ° ~ ,F L ~" s ~ ~ ~ ~ N N .~ •_ 4~ 0 ~ ~ a 'i' N (y L n Q ~ N _~ ~- a ~ ~ ,~ o a c`s ~~ .~ } m a ~ a H ~~ a ~ a~ _ v i r~ O ~ c ~ ? Q ~ N ~ O ~ N N ~ ~ L > "' u N V } ,~ ~ H s a ~ W } ~ ~ `n ~ i •a) ~ ,n W O N ~ _ ~ ~ Q ~ a N ST N O C u Z N ~ ~- ` Q a 0 'c_ } ~ ~ V o 0 z ~auu H W m b9 ~ C) U ':t r ~ • a ~ QY C O ; O } O } y_ a m y a i L L , A , W A '' W `~ ~ ~ ~ Z a a ~ W ~ Y N d d d3 a ~ ~ y .1- ~ N CR L w~w,, u W A ,, ~ ~ W ~ C ~ ~ ~ C 4> ~ ~ U ~ v ~- ~ > a a a ~ p ~ ~ > ~ ~ '3 O a d c a ' 0 ~ a ~ m ai V ; ~ ~ ~J L GI L V ~O uu } ~ W ~ ~ ~ ~ ~ :~ N o N ~ 2 ±- L ~' o a a ~ < ~ ~ N ~ ~ ~ ~ Y ~ cn O X ~? ~ Q Q u' N ~> d .Q O ~ L E a w N ~ v as c oY ~~ ~ ~ V ~ C ~ ~ ~ =a ~ a CS a O V } ~ ~ ~ 0 ~ y '- ~3 W ~ u C Z ~ •L O Q? ~ O i N ~ v ~ ~ ~ .F. ~ ~ C ~~ ~ N L N u N ,~ a N a "- ~ m ~ o a a c ~ ~ ~ `- ~ ~ a ~~ " i Q ~ s I ~ 1~ W ~/ } ~ y L L ~ N Z ~ s } ~ ~ 3 3 ~ ~ L ^ L c O Q C a ~ 3 oc~ o, N z !] 0 1 w O N ~ u~ ~ N ~ ~ C c ~ } C aC d u ~ ~ p ~ _ O - ~ c Y '^ a ~ a ~ ~ a m 3~i o ~ c a ~ L .~ o a ~ c a ~, o ~ ~ ~ a ~ ~ a ~ +- s o~ ~-a o o ~ ~ a ~~ ~ 0 3 = a ~ ~, a ~ .~ 3 0 0 ~0 3 o m m~ ~ a m Q m a s ~ ~' ?~ ~ m o m ~ ~' ~ } N ~ Q c v cOi • =' O t H d E s ~` N _ ~ 3~ o a N s ~~ m E a ~ ~ L N ,^ C > p N C ~ E ~ p N E V } - o } ~c N .3 s ~ a a> •- a > N ~ O } ~ c ~ m -Y -a c '~ ~ •~ E a m o 3 ~° a o _ Q E m ~ a Q c N D o c h o c • ~, L ~ Q~ m~~ a ~ ~ VI .~ ~ t Q c ~ . ~ ~ p ~ ~ ~ L ~ a OWN o~ - °'` ~3 ~ 3 > m ~ m 3 o a ~ _ ~ ~ ~ ~ ~ .3 O a > O t t. N L a } ~ ~ } i ~ Q L = ~ C N - ~ ~ ~ ~ S V ~ ` _ a ~ } O ~' = m a a a~ a s ~~ 3~ s c } ~ 3 a~ ~ 0= '~ ~ m~~ a ~ ,,, c s . c 3 O .- ~ ~ N ~ ~ ~ 0 a ~ a s ~w ~ N c} ~ ~3 ~ to ~ a } c d 'v v+ w a) N N c ~ c ~~ s m ~ m a ' ~ U ~ ` s E o o ~" ~ - •~O =} a ~ Q ~ ~ ~ .~ c in a Q a ° ~ a ~ t ~ ~ ~ ~ ~ ~a~i c c _ • ~ ?~'3 0 ~ a ~ a _ a~ ~ .: ~ ~ a ~ ~ .Q a ~ .~ N ° ~ ° ~ ~ a s > `~ ~" _ ~~ a y ~- o" ' ~~~~ a a' -°' c d ~' 3~ ~ ~ c o _ Asa ao~ =~ ~`a8a ' ~ a s ~ ,u 4 ,~ ~ N ~ •3 ,v V }~~ N Ada- ~~ O .~~~o~ ,,, ,,,, ~ ~ O a ~ -~ L a a ~ ~ ate ~ ~ ~ ~ ~ , N OO ~ a i D~ d a i . . s ~C E N V cn Q O ~ a E N ~ a a~ ~ o a O M '+- o s ~ t o 3 ~ "' ~ ~ s .~ ~ a c o ~ a> s a> a a °' a "" C ~ ` °' •V _ u C ~ L ~ ~ a ~ a O Q v = o ~ ~ m ~ ~~ a a ~ L ~ .a ~ O ~ `~ ~ T N V Q ~ U ~ t a1 ~ O O ~ ~ Q } X O N ~ ~ ~ } } a ~ N h _ a ' a C ~ a, 0 'u w. .~ 3. L •~ o V c~ ~ o ~ o m a L ~~ ~ m a ~ o a == a~ C9 o IV ~ ~ U 3 ~ O (~ £ ~ a_ W O ~ ~ O C a ~ 3 ' F- o a~ V p ~ c z _ > o ~ a c ~ ~ ,~ ~ o - ~ °-°' ~ a ~ V~dV c pG o } '> a 3 ?~ a~i ~ ~ N ~ C } 'O C? C Q U L } ~ ~ ~ } ~ ~ V L ~ m } ~ o ~' a m ~ Y N ~ _ ~ ~s 0 ~ ~ 3 ~ ~ ~ ~ c ~ a _ 3 a} a a o ~ ~ Q ~- a a- c _ c E ~ ~ ~ } gym V ' = Q ~ a~>o ~ -a N N V u ^N' W s.. ~I- N O ~ .~ ~ ~ O i ~ O ~ ~ ~ ~ .v_' ~ H .F ~ ~ O ~A~, W •~ V L M ~'~` ~~~~ z~,. ~ ~~, 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council Item A 6 From: Frank Cassidy ,Town Attorney Subject: _Resolution No. 2009-17: Relating to Utilities; revising Resolution No. 2009-08 by rescheduling the water rates public hearing for February 24, 2009 at 7:00 p.m. Discussion: On January 20, the Town Council adopted a notice of intention to increase water rates, rate components, fees and service charges, and set the earliest possible date for the public hearing -- on Friday, February 20. The resolution proposed for adoption tonight would reschedule the public hearing for Tuesday, February 24, 2009, at or after 7:00 p.m. If the new rates are adopted that evening, they will be effective on March 26 -- before high summer usage begins. The rescheduled public hearing date and time is intended to increase possible public feedback and participation by occurring at a more convenient and normal day and time for a Marana Town Council meeting. ATTACHMENTS: Name: Description: Type: ~ Reso re_p~~blic hearing moved to Feb 24 ~i=CO_643~,DOC. Reno rescheduling water public hearing to Feb 24 Resolution Staff Recommendation: Staff recommends adoption of Resolution No. 2009-17. Suggested Motion: I move to adopt Resolution No. 2009-17. Regular Council Meeting -February 3, 2009 -Page 256 of 265 MARANA RESOLUTION N0.2009-17 RELATING TO UTILITIES; REVISING RESOLUTION NO. 2009-08 BY RESCHEDULING THE WATER RATES PUBLIC HEARING FOR FEBRUARY 24, 2009 AT 7:00 P.M. WHEREAS A.R.S. § 9-511.01 requires the Town Council to adopt a notice of intention to increase water rates, rate components, fees or service charges and to release to the public a written report containing certain required information about the rates, rate components, fees and service charges; and WHEREAS the Town Council adopted the notice of intention by Resolution No. 2009-08 on February 20, 2009; and WHEREAS Resolution No. 2009-08 set a Friday, February 20, 2009 public hearing on the proposed water rates, rate components, fees or service charges; and WHEREAS the Mayor and Council find that moving the public hearing to a Tuesday evening may increase the opportunity for members of the public to be heard. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, that Resolution No.2009-08 is hereby revised by rescheduling the public hearing on the proposed water rates, rate components, fees or service charges to Tuesday, February 24, 2009 at 7:00 p.m. in the Council chambers on the first floor of the Administration building, Marana Municipal Complex, 11555 West Civic Center Drive, Marana, Arizona 85653. IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms and objectives of this resolution. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 3rd day of February, 2009. Mayor Ed Honea ATTEST: APPROVED AS TO FORM: Jocelyn C. Bronson, Town Clerk Frank Cassidy, Town Attorney Regul~~.~8~~ib~~e~ng -February 3, 2009 -Page 257 of 265 1/27/2009 9:33 PM FJC ~~ 11555 W. CIVIC CENTER DRIVE, MARANA, ARIZONA 85653 COUNCIL CHAMBERS, February 3, 2009, 7:00:00 PM To: Mayor and Council From: Steve Huffman ,Intergovernmental Affairs Administrator Item D 1 Subject: Legislative Issues: Discussion/Direction/Action regarding all pending bills before the Legislature Discussion: This item is scheduled for each regular council meeting in order to provide an opportunity to discuss any legislative item that might arise during the current session of the State Legislature. Periodically, an oral report may be given to supplement the Legislative Bulletins. ATTACHMENTS: Name: Description: Type: ~ Bulletin-#2.pdf Bulletin 2 l~ackutt Material ~ Bulletin-#3.pdf Bulletin 3 Backup Material Staff Recommendation: Upon the request of Council, staff will be pleased to provide recommendations on specific legislative issues. Suggested Motion: Mayor and Council's pleasure: Regular Council Meeting -February 3, 2009 -Page 256 of 263 IN THIS ISSUE Start Of The 49~' Legislature .. 1 State Of The State: Governor Napolitano Says Goodbye ...................... 1 Budget Reality ................:....... 2 The Business Community Speaks .................................. 2 The Role Of Cities And Counties In The Budget ....... 2 Weekly Spotlight .................... 3 Legislative Bulletin is published by the League of Arizona Ci[ies and Towns. Forward your comments or suggestions to: League of Arizona Cities & Towns 1820 West Washington S[ree[ Phoenix, Arizona 85007 Phone: 602-258-5786 Fax: 602-253-3874 Email: league@azleague.org Internet: www.azleague.org Bulletin Issue 2 -January 16, 2009 START OF THE 49TH LEGISLATURE Monday marked the beginning of the 2009 legislative session with both the House of Representatives and the Senate swearing in the new members of the 49`l' Legislature. Members of the House of Representatives were sworn in by Arizona Supreme Court Chief Justice Ruth McGregor. Legislators, state elected leaders and their guests joined many mayors, council members and city officials from around the State for the festivities. Committee meetings were not held the first week of session, a usual move to accommodate the ceremonies of the beginning of session. Therefore, no bills have been heard yet. STATE OF THE STATE: GOVERNOR NAPOLITANO SAYS GOODBYE Governor Janet Napolitano gave the State of the State Address as tradition calls for each year. It was Governor Napolitano's final address as the state's chief executive due to her nomination to become the new Secretary of the Department of Homeland Security for President-Elect Barack Obama's Administration. Napolitano's speech touched upon many of the issues and topics most might have expected-mainly the budget and education. She referred to past administrative successes in the budget, highlighting the rainy day fund and education funding. Napolitano noted that the state's public schools are "educating 82 percent of Arizona's students" and she called upon the state's universities to "double the number of bachelor's degrees in Arizona by 2020." With budget cuts looming in the state, Napolitano said that education should not be involved in discussions of these cuts. Between alluding to more problems caused by economic conditions and her administrative accomplishments, the overall tone of the message was a positive outlook of the future matched by more civic service by Arizonans. Napolitano told members that she would submit a budget for FY 2009 by the end of the week. To see the full text of the Governor's address, go to http://www.governorstate.az.us. Regular Council Meeting -February 3, 2009 -Page 257 of 263 January 16, 2009 BUDGET REALITY On Tuesday the Financial Advisory Committee met in the Senate to discuss and address the current budget deficit. The current projected budget deficit for FY `09 exceeds roughly $1.58 billion. The most optimistic forecasts show a budget turnaround beginning in 2010, but most likely in 2011. Along with that, sales tax revenue is expected to be down 8.2 percent in FY `09 and 3.2 percent in FY ' 10. Individual income tax collections are projected to be down 7.2 percent in FY `09 and 2.8 percent in FY `10, and corporate income tax is expected to plummet 23 percent in FY `09 and 4.1 in. FY ` 10. In addition, as reported previously, the Urban Revenue Sharing Fund is expected to decrease by $100 million in the next year. All of these figures were delivered by the Joint Legislative Budget Committee which gave two presentations during the week on the budget shortfalls for the state and alternative options for lawmakers on the budget... Furthering the discussion, staff presented a grim outlook of the national economic situation and tried to put in context the current situation on how and why the economy has continued in decline. Some factors include the rising prices of food and gas, larger debt growth combined with lower savings rates and the burst of the housing bubble. Most panelists said this crisis resembles that of the late 1970s and early 1980s, with inflation crippling the economy, and that comparisons with the Great Depression are less of a reality than most might think. It was reported that a staggering 49.8 percent of homes in the Greater Phoenix Area are being sold at a loss and 37.9 percent of those sold are in foreclosure. Consumer confidence of the .region and the United States would help the economy recover with the "wealth effect" coming into play, meaning when people feel poorer, they spend less. All eyes point to 2010 as the anticipated beginning of the recovery period, especially in the state with personal income set to increase 3.2 percent after negative growth. Arizona's State Treasurer Dean Martin gave the summary of the state budget and future outlook. Once again the numbers told the story with the state forecasting a revenue decline of 13.66 percent. All JLBC reports can be found at: http://www.azleg.state.az.us/jlbc.htm. Regular Council Meeting -February 3, 2009 -Page 258 of 263 THE BUSINESS COMMUNITY SPEAKS Wednesday morning began in the Senate with members having a discussion with several business leaders who are affected by the struggling economy in Arizona. The business panel included representatives from Wells Fargo, U.S. Airways, and Freeport- McMoran Copper & Gold Inc., as well as other small businesses representing most aspects in the business community. The continuing message being sent by the business community was the elimination of government hindrances and continuing to suspend the education equalization property tax enabling business to attract future growth. Other items frequently mentioned included budget cuts, hiring-freezes, and tax revenue loss. Members of the Legislature made comments and asked for advice on how to work with and fix the economic problems with the business community and state government. Senate Majority Leader Chuck Gray (R-Mesa) asked the panel to compile a list of things that create conflicts in running their business. Also, Minority Whip Representative Chad Campbell (D-Phoenix) asked that without structural tax reform, what else could be done. The business leaders generally favored some kind of restructuring of the tax system, making the tax load more equitable. THE ROLE OF CITIES AND COUNTIES IN THE BUDGET Thursday in the Senate, a panel of city and county officials, including League Executive Director Ken Strobeck, met to discuss current budget issues. Strobeck addressed issues regarding cities and towns in the state by reporting on the results of a new survey of municipal responses to the budget downturn. Most notably, 73 percent of those who responded to the survey said their community had implemented hiring- freezes, acommon theme among the panel. Phoenix City Manager Frank Fairbanks addressed how his city is dealing with budgetary issues by identifying eight criteria for each budget cut, including the importance of communication with staff, citizens and the media. Both Mayors Scott Smith from Mesa and Larry Nelson of Yuma addressed the elimination of redundancy within their respective city's governments, along with capital project budget freezes. Mayor Smith observed that this situation may teach local communities revenue discipline in the future. Mayor Nelson emphasized the importance of volunteers by noting that a new park in Yuma was built using donated materials and volunteer effort and finances. 2 January 16, 2009 Meanwhile, county government from around the state was also represented on the panel with Martin Willet from -Pima County, Sandi Wilson of Maricopa County, and Julie Ayers of Yavapai County. Each discussed their respective budget deficits and steps they have taken to operate within their financial means. Mark Barnes, speaking for the County Supervisors Association, said that counties are being forced to seek alternate ways of delivering services in order to balance their budgets. Ayers added that her county was forced to close the Prescott jail, saving $2.4 million even though there is now only one jail within the county. Overall the message was clear that the state government's budget deficit might have been foreseen or alleviated slightly had the state taken the same steps cities and counties began in FY `07. Representatives Tom Chabin (D-Flagstaff) and John Kavanaugh (R-Fountain Hills) asked how reduction of government regulations would be helpful to city and county governments.. House Majority Leader John McComish (R-Ahwatukee) suggested this would be a good year for local governments to let state lawmakers know which state regulations could be reduced or eliminated in order to make their jobs easier and less costly. The following are the survey results Ken Strobeck cited in his remarks to legislators: 90% report their General Fund is either flat or declined compared to one year ago, with declines ranging from 1% to 37%. The mean is approximately 9%; 40% of cities are experiencing declines of 10% or greater. Local sales tax represents the largest general fund revenue source, followed by shared revenue. Local sales tax is generally around 38% of general fund revenue; shared revenue is generally 33%-37%. Only about half of the cities and towns in Arizona have a primary property tax, which is typically the smallest tax component of general fund revenue (generally 6%-9% of general fund). Actions taken since the beginning of the fiscal year to deal with the budget shortfall: a. 16% Across-the-board budget cuts; b. 77% Targeted budget cuts; i. Examples: Neighborhood services, building department, capital equipment, central service departments, contracts, court, development services, engineering, finance, golf, HURF fund, information systems, library, arks, personnel, Regular Councl Meeting - February3, 2009 -Page 259 of 263 planning & development, police, bldg inspection, public works, recreation, street dept, supplies, training, training, travel. c. 23% Reduced office operating hours; d. 73% Implemented hiring freeze or a policy ofnon-replacement of open positions; e. 25% Laid-off personnel; and f. 2% Laid-off police and fire personnel while others report contingency plans to do so. 98% report projecting lower revenues in the next fiscal year, generally ranging between expected declines of 10%-25% over the current fiscal year. Weekly Spotlight - Representative Steve Court In each bulletin during the session we have The Spotlight, where we focus on one legislator. This week we have Representative Steve Court, (R - Mesa). Mr. Court worked for Motorola in accounting and finance for over 20 years. He has also been a small business owner and a Scout Master in the Boy Scouts of America. He has a Bachelor of Science degree in Accounting and Business from the University of Massachus certified diver. He and his wife S children and 5 grandchildren. 1) What prompted you to run for the legislature? The major item that prompted me to run was the frustration in watching the budget process of the past few years. We have been. playing games with the constitutional requirement to have a balanced budget. The state needs to live by the same requirements as most people and businesses, live within your means. 2) What's your proudest legislative achievement? For new members, what do you hope to accomplish? As a new member I hope to help bring the state back into a truly balanced budget situation, and to do so as intelligently as possible. I also hope to bring some reforms to schools that will improve the education system without adding costs. 4) How can the state government and local governments be better partners? Probably in two different ways. One, keep the lines of communication wide open; we need to know what the January 16, 2009 Administration efts, and is a usan have four impact of actions at the state are having on the local level, as well as to have ideas flow back and forth freely. And two, make sure that we are never putting in place requirements that are duplicative or unnecessary. S) YVhat kinds of things do you do to relax favorite music, books, etc? I enjoy traveling and SCUBA diving with my wife, and I enjoy reading novels by Clive Cussler and John Grisham. Thank you for your time. You are welcome. Regular Council Meeting -February 3, 2009 -Page 260 of 263 4 January 16, 2009 IN THIS ISSUE Oral Arguments Heard By Arizona Supreme Coutt ................................... 1 Inauguration of Governor Janice K. Brewer ................ 1 Committees Begin To Meet ............... 2 Weekly Spotlight ................................ 2 Schedule A Legislative Day! ................................. 3 Legislative Bulletin is published by the League of Arizona Cities and Towns. Forward your comments or suggestions to: League of Arizona Cities & Towns 1820 West Washington Street Phoenix, Arizona 85007 Phone: 602-258-5786 Fax: 602-253-3874 Email league@azleague.org Internet: www.azleague.org If you would like to be added to our bulletin a-mail list please forwazd your e-mail request to: csmith-humphrey@azleague.org Bulletin Issue 3 -January 23, 2009 ORAL ARGUMENTS HEARD BY ARIZONA SUPREME COURT On Wednesday, the Arizona Supreme Court heard oral arguments in the League's challenge of the "contribution" section of last session's appropriations bill, House Bill 2209. Representing the League was attorney Chuck Blanchard; the Executive Branch was represented by Kimberly Demarchi (Governor) and Mary. O'Grady (State Treasurer). The League's position is that a portion of the general appropriations bill for Fiscal Year 2009 is invalid under the Arizona Constitution because it imposes a new tax, fee, or assessment not approved by two-thirds vote in both houses of the Arizona Legislature. The League also challenged that a "contribution" by local governments does not belong in an appropriations bill. Justices questioned each attorney vigorously. Chief Justice McGregor stated at the end of the session that a decision would come in due time. Below is a link to the Supreme Court website if you would like to watch a recording of the oral arguments. http://supremestateaz.granicus.com/MediaPlayer.php?view id=2&clip id=42 INAUGURATION OF GOVERNOR JANICE K. BREWER Wednesday January 21St was the Inauguration of Arizona's new Governor Janice K. Brewer. The ceremony follows the departure of former Governor Janet Napolitano who became the new U.S. Secretary of Homeland Security. It marks the first time in seven years that the state will see a new governor. Event attendees included four previous state governors, along with state legislators, mayors, and many other state and local officials. Governor Brewer addressed the audience on several issues, including the budget and the state's large deficit, her commitment to smaller government and to the principles of individual freedom. Brewer also compared the state's economic situation to the nation's economic woes, vowing to pull the state out of the budget crisis through innovative measures on reducing spending and generating revenue. Governor Brewer concluded her inaugural remarks by saying she believed that Arizona will emerge from this budget situation stronger than before. Here is a link to the text of her speech: httn://www.az~overnor.~ov/documents/NR 012109 Inaugural Address.pdf Regular Council Meeting -February 3, ZOiTg~age'1b''f ofi~63 January 23, 2009 COMMITTEES BEGIN TO MEET While floor action has been limited to formalities, both Senate and House Committees started meeting this week. House committees heard a total of 24 bills and the Senate committees witnessed presentations. Senate President Bob Burns (R-Peoria) has indicated that Senate committees will not hear bills until a budget agreement is reached. The Senate Finance Committee did see a presentation on Government Property Lease Excise Tax (GPLET) given by the Joint Legislative Budget Committee (JLBC). GPLET is a local excise tax that has been under fire at the legislature for the past few sessions and it appears it will be again this session. The League is involved with negotiations on this issue and is working to preserve this last remaining economic development tool for cities and towns. The JLBC also gave presentations on budget- related issues to three other legislative committees. The Committee on Public Employees, Retirement and Entitlement Reform, chaired by Representative Tom Boone (R-Peoria), heard the bills comprising the legislative agenda of the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS). They passed easily out of committee. The House Transportation and Infrastructure Committee heard House Bill 2106, sponsored by Representative Sam Crump (R-Anthem), which prohibits photo radar on Arizona state highways. This bill does not currently impact local photo enforcement programs but such a provision is likely to at least be discussed this session. It passed out of committee on a 5-2 vote after several hours of discussion. The Weekly Spotlight -President of the Senate Robert Burns This week we focus on President of the Senate Robert "Bob" Burns, (R-Peoria). Senator Burns was a member of the House of Representatives from 1989-2000. For the last eight years of that tenure, Senator Burns also served as the House Appropriations Chairman. Elected in November 2002 to represent Legislative District 9 in the Arizona State Senate, Senator Burns is a veteran of the legislature and brings invaluable experience to the body. Senator Burns' political experience extends beyond his substantial time in the State's legislature. He has served d~~~~~H'~~~t~ctEig~~ tr~1~i~~aAater Conservation District, as well as a legislative district chairman, precinct committeeman, deputy registrar and volunteer lobbyist for the child care industry. The Senator is also a member of Republican Forum West and the Sun City Republican Club. In addition to his extensive record of public service, Senator Burns is an extremely active member of the community. He is currently on the Board of Directors of Friends of West Valley Recreation Corridor, and. is a member of the Glendale Kachina Rotary Club, Arizona Telemedicine Council, Arizona Town Hall, and a sponsor of an in line rollerblade/hockey team. In the past, the Senator has coached in the Summer Baseball League and been a member of the Arizona, Phoenix and Glendale Chambers of Commerce. After leaving his position as a programming analyst for Honeywell in 1978, Senator Burns continued more fully down an entrepreneurial path that he began in 1971 as President of BMG Investments, Inc., a real estate management business he still operates today. He has also owned .and operated several other businesses, including the Rainbow Elementary Prep Schools for 16 years. An Iowa native, Senator Burns has been married to his wife Gayle since 1960. They have two sons, five grandchildren and one great grandchild. 1) What prompted you to run for the legislature? Beginning in the late 70's my wife and I were building our child care operation which required considerable interaction with a number of state agencies - DHS for licensure -DES contract to serve low income families - ADE -child care food program. These interactions did not always go smoothly and in the process of trying to improve the working relationships I was continually drawn deeper and deeper into the administrative/legislative arena. During my tenure as District Chairman of then LD 17 the opportunity to run for the Arizona House occurred and I did so. 2) What's your proudest legislative achievement? I have sponsored legislation to establish the Government Information and Technology Agency (GITA), the office of Ombudsman Citizens Aid, and the Arizona Telemedicine Program (ATP). ATP started out as an eight-site pilot program designed to serve Arizona's Correction system and Arizona's rural communities. ATP, without increased appropriation has grown from its original 8 sites to now over 170 and has won national and international awards. ATP provides enhanced health care services to inmates within Arizona's prison system and to the citizens of rural Arizona. In addition to health care directly, ATP, through its "grand rounds" educational component provides continuing education January 23, 2009 for medical providers throughout Arizona. 3) How can the state government and local governments be better partners? By continuing and increasing communication between elected officials at the policy level and staff at management level. 4) What kinds of things do you do to relax favorite music, books, etc? My stress release/relaxation mechanism is strenuous exercise. I have a 2 hour exercise routine which I try to do at least 3 days per week. On the days I miss that routine I try to ride my bike on a 17 mile trail along the New River. When all else fails there is always golf which sometime creates the need for its own stress release. Thank you for your time. You're welcome. Regular Council Meeting -February 3, 2009 -Page 263 of 263 SCHEDULE A LEGISLATIVE DAY! If your city or town would like to meet with your legislators in a comfortable, small group setting, please contact Cheyenne at the League about scheduling a Legislative Day. These meetings are a great opportunity to discuss issues unique to your community with your delegation over lunch. The League will host the meeting and provide lunch, and can assist you in contacting your legislators, providing session updates and other information to make your meeting more productive. You can reach Cheyenne at 602-258-5786 or cwalsh ~azlea~ue.org, January 23, 2009