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HomeMy WebLinkAbout2000 Financial Statement June 30TOWN OF MARANA comprehensive Annual Financial Report _ for the Fiscal Year Ended June 30, 2000 Prepared by Town of Marana Finance Department Marana, Ariiona 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TABLE OF CONTENTS INTRODUCTORY SECTION p~.gg Letter of Transmittal ...................................................................................... I Town of Marana Officials .............................................................................. IX Town of Marana Organizational Chart .......................................................... X GFOA Certificate of Achievement ................................................................ XI FINANCIAL SECTION Opinion of the Certified Public Accountant .................................................. 1 Combined Balance Sheet -All Fund Types and Account Groups ............................................................ 1 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances.- All Governmental Fund Types ............................................................................. 2 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual -General, Special Revenue, and Capital Project Funds ................ 3 5 Combined Statement of Revenues, Expenses and Changes in Equity -All Proprietary Fund Types.......... 4 7 Combined Statement of Cash Flows -All Proprietary Fund Types .................................................................... 5 8 Notes to Combined Financial Statements ........................ - 9 Combining, Individual Fund and Account C'Trni~n Statements a_nd Schedules General Fund Comparative Balance Sheets ..................... ^ ....................A-1 ~ 5 Statement of Revenues, Expenditures and Changes in Unreserved Fund Balance -Budget and Actual......A-2 36 Special Revenue Funds Combining Balance Sheet .............................................B-1 41 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................B-2 43 1998 Community Development Block Grant -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ^ ......................................B-~ 45 TABLE OF CONTENTS Combining, Individual Fund and Acrnunt ('Trnt~~n Statements and Schedules (Continued) Exhibit p~g~ Special Revenue Funds (Continued) 1999 Community Development Block Grant -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ......................................B-4 46 HOME Program -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-5 47 COPS Grant -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-6 48 CJEF Court Fund -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual....B-7 49 RICO -Statement of Revenues, Expenditures and "Changes in Fund Balance -Budget and Actual ..........B-8 50 GITEM -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-9 51 HIDTA -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-10 52 MANTIS -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-11 53 Auto Theft -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-12 54 Highway User Revenue -Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .......................................................B-13 55 LTAF - Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-14 56 2000 LLEBG -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ..........B-15 57 Airport -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual....B-16 58 Debt Service Funds Combining Balance Sheet .............................................C-1 59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................C-2 60 TABLE OF CONTENTS Combining, Individual Fund and Account Groun Statements and Schedules (Continued) Exhibit Pegg Capital Projects Funds Combining Balance Sheet .............................................D-1 61 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................D-2 62 2000 General Obligation -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ......................................D-3 63 1997 General Obligation -Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ......................................D-4 64 Other Capital Project Funds -Statement 'of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual ......................................D-5 65 Enterprise Funds Combining Balance Sheet ............................................. E-1 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... E-2 67 Combining Statement of Cash Flows ........................... E-3 68 Comparative Balance Sheets -Water Fund .................. E-4 69 Statement of Revenues, Expenses and Changes in Fun d Equity -.Water Fund -Budget and Actual .................. E-5 70 General Fixed Assets Account Group Comparative Schedule of General Fixed Assets by Source ......................................................................... F-1 71 Schedule of General Fixed Assets - By Function and Activity ................................................................. F-2 72 Schedule of Changes in General Fixed Assets - By Function and Activity ............................................ F-3 73 TABLE OF CONTENTS STATISTICAL SECTION (Unaudited) Table ~g~ General Government Expenditures by Function - Last Ten Fiscal Years ...........................................................I 75 General Revenues by Source -Last Ten Fiscal Years ...........II 76 Assessed and Estimated Value of Taxable Property - Last Ten Fiscal Years .......................................................... .III 77 Property Tax Rates -Direct and Overlapping Governments - (Per $100 of Assessed Value) -Last Ten Fiscal Years....... .IV 78 Computation of Legal Debt Margin General Obligation Bonds .................................................................................. .V 79 Computation of Direct and Overlapping Debt ...................... .VI 80 Lease Revenue Bond Coverage -Last Ten Fiscal Years ...... .VII 81 Demographics ....................................................................... .VIII 82 Property Value and Construction - Last Ten Fiscal Years .......................................................... .IX 83 Top Ten Sales Taxpayers ...................................................... .X 84 Miscellaneous Statistical Data .............................................. .XI 85 r I MARANA 1 /I\ TOWN OF MARANA ~ December 29, 2000 The Honorable Mayor and Council Town of Marana, Arizona The Comprehensive Annual Financial Re ort CAFR .of the Town of Marana for the ear ended June 30 p ~ ) Y 2000 is hereby submitted. 1 The Government Finance Officers Association of the United States and Canada (GFOA) most recently awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Marana for its ' comprehensive annual financial report for the fiscal year ended June 30, 1999. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The Town of Marana has received a ' Certificate of Achievement for the last four consecutive fiscal years ended June 30, 1999, 1998, 1997 and 1996. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA. The CAFR has been prepared under the direction of Mr. Roy Cuaron, Finance Director, in coordination with the Town's special consultant, Mr. Ron Kovar, CPA and the Town's auditors, Clifton Gunderson L.L.C. Responsibility for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the Town. To the best of our knowledge and belief, the data contained in the CAFR is accurate in all material respects, and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the Town. All disclosures necessary to enable the reader to gain an understanding of the Town's financial activities have been included. The CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductory Section includes this transmittal letter, a listing of principal Town officials and staff and the Town's organizational chart. The Financial section includes the auditor's opinion on the financial statements and schedules, the general purpose financial statements, footnotes, and required supplemental information and the combining statements and schedules by fund and account group, which provides additional detailed information. The Statistical Section includes selected financial and demographic information, generally presented on a multi- yearbasis to demonstrate trends. THE REPORTING ENTITY AND ITS SERVICES Background Located in northern Pima County, the Town of Marana is one of the fastest growing communities in Arizona. Marana straddles Interstate 10 and is only 10 miles north of downtown Tucson and 90 miles south of downtown Phoenix. 13251 N. LON ADAMS ROAD ~ MARANA, ARIZONA 85653 ~ PHONE: (520) 682-3401 ~ FAX: 682-2654 Marana's original incorporation covered approximately ten square miles. Today, the Town boundaries encompass over seventy-five square miles with a population base in excess of twelve thousand. 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. 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 moneys, 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 175 employees is responsible for the functions and operations of the Town government. The combined financial statements of the Town include all governmental activities, organizations and functions for which the Town is financially accountable as defined by the Governmental Accounting Standards Board. Based upon these criteria, the Town of Marana Municipal Property Corporation is included in this report. Services Provided The Town provides a range of services that include police, water, construction and maintenance of streets and roads and other infrastructure, flood control, low-income housing, recreational activities and cultural events. ECONOMIC CONDITION AND OUTLOOK Current Condition The fiscal condition of the Town of Marana again continues to demonstrate significant growth and improvement. At June 30, 2000, the unreserved, general fund balance was $18.SM, an increase of nearly 30% from the previous fiscal year. Since fiscal 1996, the unrestricted general fund balance has nearly tripled, increasing from $6.6M to nearly $18.SM at fiscal 1999-00 year end. The Town's economic prosperity and fiscal improvement continue to be fueled by a strong national and local economy, prudent fiscal management and a philosophy and commitment to responsive customer service and economic development. Sales tax revenues, which account for 71% of total general fund revenues, increased by nearly 25% from fisca198-99. Not surprisingly, the construction industry sector accounted for approximately 50% of the growth ($1.3M). A one- percent increase in the tax rate for construction activity contributed significantly to the industry's growth rate. The balance of the growth is attributed primarily to the retail trade sector. Tax revenues from the top five retailers increased by nearly $700K from the previous fiscal year. A strong economy, combined with a burgeoning population in Marana and surrounding communities, continues to positively impact retail trade Implementation of sound, prudent fiscal management practices has been paramount to the significant improvement in the Town's financial position. Commencing with the budgetary process, which provides the framework that allocates the Town's fiscal resources in a fiscally prudent manner, and continuing with monthly management reports that monitor and report budget variances, the fiscal processes ensures that total spending remains within approved budgetary levels and within available financial resources. To illustrate, while total expenditures, including full funding of the Capital Improvement Plan increased by 9.5% over FY 99, total revenues increased by 16%. II ' The Marana Town Council, through the establishment of clear and concise polices on growth management, assures that expansion of the Town boundaries occurs when an economic benefit accrues to the Town and its ' residents. Further, apro-business attitude and emphasis on responsive customer service foster an environment that encourages economic development. The combination of these two factors has been instrumental in the growth and fiscal prosperity of the Town. I Future Economic Outlook The economic outlook for the Town of Marana continues to be very positive. With an abundance of developable land, Marana is expected to have very rapid commercial, industrial and residential growth in the next ten years. While the 1995 U.S. Census Bureau officially lists Marana's population at 5,309, recent Arizona Department of Economic Security statistics have Marana's population in excess of 12,000. The population increase is reflective of continued strong residential activity in Continental Ranch and Dove Mountain. Major developments in the former include Silver Moon, Cortaro Ranch and Sunflower. On the horizon are Continental Reserve, Saguaro Springs, Silverbell West and Silverbell Place. Among the major developments in the latter on Heritage Highlands, Quail Crossing, Canyon Pass and Villages at Dove Mountain and Dove Creek. Collectively, these developments are planned for over 10,000 homes. With the adoption of the Northwest Marana Regional Plan and completion of bank protection along the Santa Cruz River, significant residential activity is expected to occur in the northwest quadrant of the township. Imminent projects include Rancho Santa Cruz, San Lucas and La Mirage. From the commercial perspective, FY 00 saw the completion and opening of numerous new business establishments, including Gallery Golf Course and Country Club, Walgreen's, Brake Masters, Batteries Plus, Day's Inn Express and Quality Inn. The latter two businesses added 126 rooms to the Town's transient lodging industry, an increase of 22%. Collectively, these business establishments contributed prominently to the increase in sales tax. New commercial projects under construction at fiscal year end included Ramada Inn Express, Holiday Inn 1 Express, Inn Suites, Wendy's and La Parilla Suiza restaurant. These business entities will significantly enhance the local tax and employment base of the Town. While construction has yet to begin, the Hyatt Regency Resort Hotel is expected to have a huge economic impact on the community. Annual tax revenues of approximately one million dollars are expected to accrue to the Town. Construction is expected to commence in the first quarter of 2001. ' In short, the economic outlook bodes very well for the Town. MAJOR INITIATIVES Current Year Proiects Fiscal 1999-2000 yielded several accomplishments that were consistent with the policy direction set forth by ' Mayor and Council during the budget process. Among the notable achievements were the following: • Issuance of approximately $10 million in revenue bonds through the Municipal Property Corporation (MPC) to finance the design and construction of a municipal complex, and which resulted in the Town ' receiving a credit rating upgrade from Standard & Poor's (A- to A); • Construction and acquisition of park improvements and equipment totaling $254K that included an ADA compatible van for the Senior's program, playground equipment and a satellite control lighting system to 1 manage the park's lighting system from remote locations, and which results in greater operating efficiencies; • Construction of approximately $867K in road improvements to increase transportation capacity in congested areas; III • Expenditures of approximately $850K for the water system that included $SOOK for system improvements and $350K for the acquisition of water rights; the latter expenditure further enhances the Town's ability to service its growing population; • Acquisition often new police vehicles and related equipment totaling approximately $354K; • Acquisition of capital equipment and machinery totaling approximately $367K designed to replace aging equipment and enhance staffls ability to respond to demand for services; • Complete acquisition and operation of the Marana Northwest Regional Airport, including commencement of design plans for a fire suppression system; Future Year Proiects The Town is committed to improving and increasing service levels to its residents and planning for the proper and orderly growth of the community. To that end, the following activities have commenced or are in the planning stages for the very near. future: • On-going design and construction of a municipal complex that will provide for the consolidation of services and facilities to better serve the public; • On-going design and construction of roadway improvements to increase traffic capacity; $13.4M programmed in FY 00-01 for such improvements; • Implementation of a plan that ensures equitable funding ofdevelopment-warranted infrastructure; • Implementation of the recently adopted Northwest Marana Regional Plan in anticipation of expected development in the. northwest quadrant of the township; • Infrastructure improvements to the Marana Northwest Regional Airport to facilitate economic development in the area; FINANCIAL INFORMATION Management of the Town is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of fmancial statements in conformity with generally accepted. accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the Town's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. The policy of the Town of Marana provides that the Town Council shall adopt the annual budget prepared by the Town Manager and senior staff. This budget is reviewed by the Town Council and is formally adopted by the passage of a budget resolution. The Town Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Town Council. Revenue and expenditure reports that compare budget versus actual results are produced monthly and are distributed to senior staff and others upon request. IV n,...,...,.~ ~....a The General Fund is used to account for expenditures of traditional governmental services as well as financial resources other than those required to be accounted for in other funds. General Fund revenues totaled $18,220,373 in fiscal 1999-2000, an increase of 16% from FY 98-99. General Fund increases (decreases) over the last year are shown in following tabulation: Percent Increase/ Increase/ Percent (Decrease) (Decrease) of from from Revenue Source Amount Total 1999 1999 Taxes $12,957,277 71.11% $2,562,711 24.65% Other Agencies $1,421,171 7.80% $136,418 10.62% Licenses, Fees & Permits $2,583,807 14.18% ($486,017) -15.83% Fines, Forfeitures & Penalties $304,810 1.67% $90,134 41.99% Interest Income $919,463 5.05% $174,427 23.41% Other $33,845 0.19% ($14,724) -30.32% Total $18,220,373 100.00% $4,280,034 37.29% The increase in tax revenues was the result of an increase in the construction sales tax rate combined with general sales growth amongst the Town's taxpayers. Other agency revenue grew primarily because of an increase in the per capita distribution from the State of Arizona. Income from licenses, fees and permits decreased substantially due to a reduction in the number of single family residential (SFR) housing permits issued. Permits dropped off by 22% from the prior year. However, as illustrated on page 83, Table IX, FY 99 was a record year for SFR permits. Fines, forfeitures and penalties also increased significantly due to an increased case load and an aggressive sentence enforcement policy, which included the employment of a collection agency to pursue delinquent accounts. The increase in interest income is a continuing reflection of the accumulation of reserves combined with sound cash management. V General Fund expenditures for general government purposes totaled $11,843,634 in fiscal 1999-00, an increase of only 26% from FY 98-99. Increase (decrease) in levels of expenditures for major functions of the Town over the preceding year are shown in the following tabulation: Percent Percent Increase/ Increase/ Percent (Decrease) (Decrease) of From from Function Amount Total 1999 1999 General Government $2,424,589 20.47% $211,978 9.58% Development Services $1,245,771 10.52% $482,311 63.17% Town Attorney $376,774 3.18% $96,642 34.50% Police $3,073,225 25.95% $475,653 18.31% Magistrate Court $328,167 2.77% $23,516 7.72% Public Works $2,859,109 24.14% ($167,476) -5.53% Parks & Recreation $1,317,817 11.13% $1,317,817 100% Debt Service/Capital Lease $218,182 1.84% ($12,241) -5.31 Total $11,843,634 100.00% $2,428,200 4.30% A marginal increase in General Government expenditures occurred in FY 98-99 from the previous fiscal year The increase in General Government is due primarily to increased staff (IS Manager) and related expenditures, namely, purchase of a new accounting software. The increase in Development Services expenditures is due to the creation of a central administrator's position (and related staff) to oversee all development related services, including Building Services, Planning & Zoning and Engineering. This move once again demonstrates the Council's commitment to providing excellent customer service. Despite implementation of cost control measures, expenditures for the Town Attorney increased due to the growth and complexity of the issues confronting the Town. The increase in the general fund for Police stems from an increase in staffing levels during the year. The department was granted nine new positions, with six of those being police officers. The positions were warranted due to the population growth over the past several years, and once again, indicates the Council's commitment to customer service. The decrease in general fund expenditures for Public Works is primarily the result of a reduction in spending for contractual services. With gradual increases in staff over the past years, more tasks are being performed in-house rather than contracted to third parties. The removal of Parks & Recreation from the umbrella of Public Works leads to this statistical anomaly. The move to create Parks & Recreation as its own department is consistent with Council policy of committing resources to the development of parks and recreational programs for the Town's residents, particularly its youth population. The department gained nine new positions during the year, with the majority of them in the recreation division. Hence, program activities were enhanced and expanded during the fiscal year. Despite the overall increase in expenditures, the Town's general fund balance increased by nearly 30%, again indicating sound fiscal management practices. VI Capital Projects Fund Proceeds of the Series 1997 and 2000 Revenue Bonds are accounted for in the Capital Projects funds until improvement projects are completed. During FY 00, bonds proceeds of $l0.OM were received and more than $1.4M was expended for capital projects, with the majority dedicated to roadway improvement projects Capital Project fund balances on hand at year-end represent primarily cash and cash investments. Proprietary/Enterprise Water Fund The Town's enterprise funds, consisting of the water and airport fund, showed a net loss of approximately $428K, due primarily to the purchase and installation of radio read meters for the water fund. Despite the fiscal year loss, the purchase will result in labor cost savings in years to come. FINANCIAL MANAGEMENT Debt Administration At June 30, 2000, Marana Municipal Property Corporation had two revenue bond issues outstanding. The Series 1997 bonds were issued in October 1997 and the Series 2000 were issued in February 2000. At June 30, 2000, the outstanding bond indebtedness for the Series 1997 bonds totaled $7,515,000, while the total bond indebtedness for the Series 2000 bonds was $10,000,000. The proceeds of the 1997 Series Bond issue were (are) used to finance capital improvement projects, namely design and construction of major roadways and water system improvements. The Series 2000 bond proceeds will be used to design and construct a municipal complex. Through the years, the Town has entered into numerous capital lease agreements allowing the Town to acquire assets without a major immediate impact on fund balances. The Town will continue to carefully evaluate the options available when acquiring assets, and will choose the option which provides the most long-term benefit to the Town. Cash Management The Town of Marana uses a system of consolidated cash management where cash from all funds are pooled. Cash to be used for the payment of current expenditures is kept in a money market savings account. Excess and idle cash is kept on deposit with the State of Arizona Treasurer's Local Government Investment Pool (LG1P). Cash in the LGIP is available upon 24 hour notice and earns a return comparable to U.S. government securities. Interest earned on cash and investments from all funds totaled $1,236,692 in FY 99-00, net of bank analysis fees and investment expenses. Risk Management The Town of Marana participates in the Arizona Municipal Risk Retention Pool. Under the Town's general insurance liability, the Town is required to pay the first $10, 000 per loss per claim or judgement, with the Pool covering the balance up to $2,000,000. The Town also maintains excess umbrella coverage of $3,000,000. The Town's total general liability insurance is thus $5,000,000. The Arizona Municipal Workers' Compensation Pool was the Town's insurance carver for worker's compensation during FY 99-00. Various risk control techniques, including employee accident prevention training, are utilized to control the Town's risk exposure. VII OTHER INFORMATION Independent Audit The State of Arizona requires a bi-annual audit of the books of account, financial records and transactions of all departments of the Town by independent auditors. The Town has elected to have its audit conducted on an annual basis. The firm of Clifton Gunderson L.L.C. has been retained to perform the June 30, 2000 audit. The auditor's report is included in the Financial Section of the report. Acknowledgments The preparation of the CAFR was made possible by dedication of Mr. Ron Kovar, CPA, Clifton Gunderson L.L.C., and the entire staff of the Town's Finance department. Mr. Kovar is the Town's special consultant and Clifton Gunderson L.L.C. are the Town's auditors. Our sincerest appreciation is extended to all individuals involved in the preparation of the CAFR. We also extend our appreciation to the Mayor and Council for their interest and support in planning and conducting the financial operation of the Town in a responsible and progressive manner. ~~~ Respectfully submitted, Michael C. Hein Town Manager /~ ~~~ Roy Cuaron Finance Director VIII . '~ ,~ moo' TOWN COUNCIL Bobby Sutton, Jr. \ Mayor Jim Blake Ora Mae Harn Eddie Honea Herbert Kai Roxanne Ziegler SENIOR STAFF Michael C. Hein \ Town Manager Mike Reuwsaat \ Assistant Town Manager Roy Cuaron \ Finance Director Jim DeGrood \ Development Services Administrator Brad DeSpain \ Utilities Director Russell Dillow ~ Town Magistrate Roger Dougan \ Airport Manager Jocelyn Entz \ Town Clerk Jack Holden \ Building Official Jane Howell \ Human Resource Director Ken Lawrence \ Parks & Recreation Director Joel Shapiro \ Planning & Zoning Director David Smith ~ Police Chief ix tCJ1NN C?~ MARANA Town of Marana DEPARTMENTAL ORGANIZATION (8/1/00) Arizona Supreme Court I I Public Pima County Superior Court Mayor and Council Town Attorney Town Manager Assistant Town Manager Municipal Court ~ ~ ~ Town Clerk/Town Marshal Finance 1 I I Police Human Resources 1 1 I Utilities ~ Airport ~ ~ ( Parks and Recreation Development Services Planning ~ ~ ~ Building Services Public Works X Certificate of Achievement for Excellence in Financial F~eporting Presented to Tovvn of Marana, Arizona For its Comprehensive Annual Financial F~eport for the Fiscal Year Ended June 30, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. PNgE OFFj~, Ci~~r- . F~~ UiTNE ~j. ~ ONrtE~ pTFS H `° President ~' coRananmh a'o~ ~ ao`S CNIC7~60 y`~ Executive Director XI Clifton GL111CleTSOIl L.L.C. Cerfifled Public Accountanh & Consultants ' Inde endent Auditor's Re ort P P ' Honorable Mayor and Town Council Town of Marana .Marana, Arizona ' We have audited the accompanying general-purpose financial statements of the Town of Marana, Arizona as of and for the year ended June 30, 2000. These general-purpose financial statements ' are the responsibility of the Town's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the ' standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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 general-purpose financial statements referred 'to above present fairly, in all ' material respects, the financial position of the Town of Marana, Arizona as of June 30, 2000, and the results of its operations and cash flows of its proprietary fund types for the year then ended, in conformity with generally accepted accounting prmc>ples. ' In accordance with Governnzerzt Audztzng Standards, we have also issued a report dated December 15, 2000 on our consideration of the Town's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. ' That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. ' Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional ' analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general- , purpose financial statements taken as a whole. The information included in the introductory and statistical sections is presented for purposes of additional analysis and is not a required part of the general-purpose financial statements of the ' Town of Marana, Arizona. Such additional information has not been subjected to the auditing procedures applied in our audit of the general-purpose financial statements and, accordingly, we express no opinion on such information. J ~~~ ~~ L . G. C ' Tucson, Arizona ~ .,-~^-~~ December ] 5, 2000 ~ Intematlonal AMERICAN INSTITUTE OF CERTIFIED PUBLIC ARIZONA COLORADO ILLINOIS INDIANA IOWA MARYLAND .MISSOURI OHIO TEXAS VIRGINIA WISCONSIN ACCOUNTANTS i U n i. 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O_ ~~ ?I m '~ O m ~ F LL m N > ~ r .O W U 0 0 0 a> .y C J CL a xo om>o--~'iin w o.LEd m r- m Caaaam c~-w O~~ m a O> m C m •- fA fN f~ y .. ~ L" C m" v m O m m 0_ C ~ m U (U W W O a! a = O m m> m> Z C C W 3~ _ a=' > y a ~tS c c ~ `~ ~ c m ~ O a! E~ Z m o,m " ~ F.. CA t~ '~ " m 1"d .~ .` y g 7 7 a s ~` H H 7O O f t O W ~ -V m a m m y m •~ O. ~ O J O F' haUQ~am mmoommm -r J J Umc°' ~- c~ m ~'~im~'mxc ~-J W m m mr-O ~ O ~ U U E E o..,ca < m m U O o m O o'm > >Q¢¢ cp m~ <Z O ~ U ~ Q d 0¢ Q Q Il ~ Q Q Q Q J O ~ U O ~ LL ~ O Z ' Q 1- J J LL F E m m N m U C m C a m L EN U O v O C TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ' ALL GOVERNMENTAL FUND TYPES -EXHIBIT 2 Year Ended June 30, 2000 Totals , Special Debt Capital (Memoran dum Only) General Revenue Service Projects 2000 1999 REVENUES ' Taxes $12,957,277 $ - $ - $ - $12,957,277 $10,394,566 Other agencies 1,421,171 1,522,894 - 21,836 2,965,901 2,540,794 Licenses, fees and permits 2,583,807 - - - 2,583,807 3,069 824 Fines, forfeitures and , penalties 304,810 9,490 - - 314,300 221,160 ' Interest 919,463 2,872 4,905 309,452 1,236,692 959,984 Other 33,845 73,329 - 63,357 170,531 192,588 Total revenues 18,220,373 1,608,585 4,905 394,645 20,228,508 17,378,916 , OTHER FINANCIAL SOURCES Bond proceeds _ Transfers from other funds - 1,685 Total other financial sources - 1,685 Total revenues and other financial sources 18,220,373 1,610,270 EXPENDITURES Current operations - 9,999,625 9,999,625 - 1,368,345 781,389 2,151,419 2,139,481 1,368,345 10,781,014 12,151,044 2,139,481 1,373,250 11,175,659 32,379,552 19,518,397 ' General government 2,424,589 19,494 - - 2,444,083 2,240,891 Development and planning services 1,245,771 - - - 1,245,771 763,460 Town attorney 376,774 - - - 376,774 280,132 Police 3,073,225 471,101 - - 3,544,326 2,997,671 Magistrate court 328,167 - - - 328,167 304,651 Public works 2,859,109 625,564 - - 3,484,673 3,675,850 Parks and recreation 1,317,817 _ _ _ 1 317 817 - Community development - 260,559 - - 260,559 226,203 Debt service Principal retirement 211,913 - 415,000 - 626,913 461,929 Interest 6,269 - 370,250 - 376,519 492,856 Fiscal agent fees/bond issuance costs - - - 279,411 279,411 - Capital improvement projects - - - 1,149,605 1,149,605 2,652,708 Total expenditures 11,843,634 1,376,718 785,250 1,429,016 15,434,618 14,096,351 OTHER FINANCIAL USES Transfers to other funds 2,151,419 - - - 2,151,419 2,139,484 Total other financial uses 2,151,419 - - - 2,151,419 2,139,484 Total expenditures and other financial uses 13,995,053 1,376,718 785,250 1,429,016 17,586,037 16,235,835 Excess of revenues and other financial sources over expenditures and other financial uses 4,225,320 233,552 588,000 9,746,643 14,793,515 3,282,562 FUND BALANCES, BEGINNING 14,246,828 60,577 397,225 3,106,647 17,811,277 15,543,767 Residual equity transfers out - (185,580) - (849,997) (1,035,577) (1,015,052) FUND BALANCES, ENDING $18,472,148 $ 108,549 $ 985,225 $12,003,293 $31,569,215 $17,811,277 See notes to combined financial statements. 3 1 1 1 i 1 1 1 ' THIS PAGE INTENTIONALLY LEFT BLANK. 4 .._ TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL - GENERAL, SPECIAL REVENUE, AND CAPITAL PROJECT FUNDS -EXHIBIT 3 Year Ended June 30, 2000 General Special Revenue Actual Budget (a) Variance Actual Budget (a) Variance REVENUES Taxes $12,957,277 $ 10,510,000 $ 2,447,277 Other agencies 1,421,171 1,362,400 58,771 Licenses, fees and permits 2,583,807 2,098,500 485,307 Fines, forteitures and penalties 304,810 300,000 4,810 Interest 919,463 600,000 319,463 Miscellaneous 33,845 5,657,400 (5,623,555) Total revenues 18,220,373 20,528,300 (2,307,927) OTHER FINANCIAL SOURCES Bond proceeds - 7,000,000 (7,000,000) Transfers from other funds - _ _ Total other financial sources - 7,000,000 (7,000,000) Total revenues and other financial sources 18,220,373 27,528,300 (9,307,927) EXPENDITURES Current operations General government 2,424,589 5,426,442 (3,001,853) Development and planning services 1,245,771 1,238,442 7,329 Town attorney 376,774 330,270 46,504 Police 3,073,225 2,541,634 531,591 Magistrate court 328,167 366,622 (38,455) Public works 2,859,109 3,080,599 (221,490) Parks and recreation 1,317,817 723,268 594,549 Community development - _ _ Debt service Principal retirement 211,913 1,378,215 (1,166,302) Interest 6,269 - 6,269 Fiscal agent fees/bond issuance costs - - _ Capital improvement projects - _ _ Total expenditures 11,843,634 15,085,492 (3,241,858) OTHER FINANCIAL USES Transfers to other funds 2,151,419 7,000,000 (4,848,581) Total expenditures and other financial uses 13,995,053 22,085,492 (8,090,439) Excess (deficiency) of revenues and other financial sources over (under) expenditures and other financial uses 4,225,320 5,442,808 (1,217,488) FUND BALANCES, BEGINNING 14,246,828 - 14,246,828 Residual equity transfers out - _ _ FUND BALANCES, ENDING $18,472,148 $ 5,442,808 $ 13,029,340 $ - $ - $ - 1,458,424 4,364,925 (2,906,501) 9,490 - 9,490 2,872 - 2,872 73,329 309,815 (236,486) 1,544,115 4,674,740 (3,130,625) 1,685 - 1,685 1,685 - 1,685 1,545,800 4,674,740 (3,128,940) 19,494 - 19,494 471,101 720,085 (248,984) - 15,000 (15,000) 561,094 567,840 (6,746) - 26,600 (26,600) 260,559 375,000 (114,441) - 2,813,750 (2,813,750) 1,312,248 4,518,275 (3,206,027) 1,312,248 4,518,275 (3,206,027) 233,552 156,465 77,087 60,577 - 60,577 185,580) - (185,580) $ 108,549 $ 156,465 $ (47,916) (a) The Town's budget included an additional $693,000 for revenues and $891,042 for expenditures for water enterprise activities that are not included in this statement because these activities are proprietary in nature. 5 Capital Project Actual Budget (a) Variance $ - $ - $ - 21,836 900,000 (878,164) 309,452 - 309,452 63,357 2,840,679 (2,777,322) 394,645 3,740,679 (3,346,034) 9,999,625 - 9,999,625 781,389 ~ 7,000,000 (6,218,611) 10,781,014 7,000,000 3,781,014 11,175,659 10,740,679 434,980 279,411 - 279,411 1,149,605 16,141,910 (14,992,305) 1,429,016 16,141,910 (14,712,894) 1,429,016 16,141,910 (14,712,894) 9,746,643 (5,401,231) 15,147,874 3,106,647 - 3,106,647 (849, 997) - (849, 997) $12,003,293 $ (5,401,231) $ 17,404,524 See notes to combined financial statements. 6 TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY -ALL PROPRIETARY FUND TYPES -EXHIBIT 4 Year Ended June 30, 2000 OPERATING REVENUES Current use charges Other Total operating revenues OPERATING EXPENSES Material, supplies, and other expenses Depreciation expense Total operating expenses NET LOSS DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING Proprietary Totals Fund Types (Memorandum Only) Enterprise 2000 1999 $ 624,482 $ 624,482 $ 532,447 18,112 18,112 22, 801 642,594 642,594 555,248 917,515 917,515 .551,128 152, 78 7 152, 78 7 103, 36 3 1,070,302 1,070,302 654,491 (427,708) (427,708) (99,243) (439,756) (439,756) (340,513) (867,464) (867,464) (439,756) 3,015,138 3,015,138 2,000,086 1,035,577 ~ 1,035,577 1,015,052 4,050,715 4,050,715 3,015,138 $ 3,183,251 $ 3,183,251 $ 2,575,382 See notes to combined financial statements.. 7 TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES -EXHIBIT 5 Year Ended June 30, 2000 Proprietary Totals Fund Types (Memorandum Only) Enterprise 2000 1999 CASH FLOWS FROM OPERATING ACTIVITIES Loss from operations $ (427,708) $ (427,708) $ (99,243) Adjustments to reconcile loss from operations to net cash provided by (used in) operating activities: Depreciation 152,787 152,787 103,363 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (31,026) (31,026) 4,715 Decrease in inventories - - 22,268 Increase in accounts payable and accrued expenses 263,224 263,224 12,989 Net cash provided by (used in) operating activities (42,723) (42,723) 44,092 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES (Increase) in due from other funds (66,336) (66,336) (210,102) Increase (decrease) in due to other funds (163,410) (163,410) 172,229 Net cash used in noncapital financing activities (229,746) (229,746) (37,873) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Residual equity transfers from general fund Residual equity transfers from special revenue funds Residual equity transfers from capital project funds Deposit for fixed asset acquisition Principal paid on capital lease Principal paid on note payable Purchase of fixed assets 222,439 185,580 185,580 - 849,997 849,997 792,613 - - (207, 090) (7,024) (7,024) (8,834) (8,800) (8,800) (8,800) (747,284) (747,284) (796,547) Net cash provided by (used in) capital and related firancing activities NET INCREASE IN CASH CASH, BEGINNING OF YEAR CASH, END OF YEAR 272,469 272,469 (6,219) $ - $ - $ - SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES During fiscal 2000, the Town financed the purchase of fixed assets with the application of a deposit for fixed asset acquisition of $207,090. See notes to combined financial statements. 8 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: A. General Statement The Town of Marana (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, legal, public safety (police and fire), public works, and parks services. The accounting policies of the Town conform to generally accepted accounting principles (GAAP) as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and financial reporting principles. The more significant accounting policies of the Town are described below. B. Financial Rep rting ntit~ In accordance with Governmental Accounting Standards Board Statement 14, "The Financial Reporting Entity", these financial statements present the Town and its only component unit, the Town of Marana Municipal Property Corporation (MMPC). The MMPC is blended with the Town in these financial statements because the MMPC was established by the Town in order to fund the debt incurred to finance the purchase of the Town hall, various capital projects, and fixed assets used by the water fund. In addition, MMPC only provides services to the Town. MMPC also issues an annual financial report, which is available through the Town of Marana's Finance Department. C. Basis of Presentation The accounts of the Town are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into generic fund types and broad fund categories as follows: 9 TOWN OF MARANA; ARIZONA 1 NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): C. Basis of Presentation (Continued) Governmental Fund Ty}~es 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 1 fund. Special revenue funds -These funds are used to account for the proceeds of specific revenue sources (other than proprietary functions or major capital projects) that are legally restricted to expenditures for specified purposes. Debt service fund -This fund is used to account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs. Capital project funds -These funds are used to account for the acquisition or construction of capital facilities being financed from General Obligation Bond proceeds, grants from other agencies, or transfers from other funds. 1 ronri~tarv Fund Tvne These funds account for operations that are organized to be self-supporting through user charges. The funds included in this category are the water fund and the airport authority (a new fund established in fiscal 1999 with actual operations beginning in fiscal 2000) as noted below: Enterprise funds -These funds are used to account for o erations that are financed P and operated in a manner similar to private business enterprises. The intent of the ' governing body is that the costs (expenses, including depreciation) of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. ' 10 ~~ TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): C. Basis of Presentation (Continued) Account groups are used to establish accounting control and accountability for the Town's general fixed assets and general long-term debt obligations. The two account groups are not "funds". They are concerned only with the measurement of financial position. They are not involved with measurement of results of operations. The following are the two account groups: Gerieral fixed assets account group -This account group is established to account for all fixed assets of the Town, other than those assets accounted for in the proprietary fund. Capital outlays in funds other than the proprietary fund are recorded as expenditures of those funds at the time of purchase and are subsequently recorded for control purposes in the general fixed assets account group. General long-term debt account group -This account group is established to account for all the Town's long-term debt and governmental fund compensated absences that will be financed from general governmental resources. Long-term liabilities of the proprietary fund are accounted for in that fund. D. Measurement Focu Ba i of Accountin Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The Governmental Fund Types (General, Special revenue, Debt service, and Capital project funds) use a current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual; i.e., when they become both measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, which for the Town is considered to be 60 days after year end. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which are recorded as fund liabilities when due, and accrued vacation which is recorded when payable from current available financial resources. TOWN OF MARANA, ARIZONA 1 NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): D. Measurement Focus/Basis of Accounting (Continued) 1 The Town reports deferred revenue on its combined balance sheet. Deferred revenue arises when a potential revenue does not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenue also arises when resources ' are received by the government before it has legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resource, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. ' Grant revenues are susceptible to accrual if they are earned as expenditures occur. Taxes collected (which include state shared sales taxes, Town sales tax, and county shared auto ' lieu taxes) and held by the both the State of Arizona and Pima County, Arizona at year end on behalf of the Town are also recognized as revenue. All other Governmental Fund Type revenues are recognized when received. ' The Proprietary Fund Types are accounted for on an economic resources measurement focus using the accrual basis of accounting. Revenues are recorded when earned, including unbilled water services which are accrued. Expenses are recorded at the time ' liabilities are incurred. The Town's Proprietary Funds apply all applicable Government Accounting Standards Board (GASB) Statements, as well as the following pronouncements issued on or before November 30, 1989, unless those pronouncements conflict or contradict GASB pronouncements:. Financial Accounting Standards Board Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins of the Committee on Accounting Procedure. 12 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): - E. Budgeter Control Tl1e 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 March 11, 1997, 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, 1998. 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 manager is authorized to transfer budgeted amounts between any departments or any funds; however, any revisions that reallocate budgeted amounts from the budget line items labeled "contingency" must be approved by the Town Council. Budgeted amounts are as originally adopted and all appropriations lapse at year end. All budgets are adopted on a basis consistent with generally accepted accounting principles except the enterprise/water fund, for which depreciation is not budgeted and the acquisition of capital assets is budgeted as an expenditure and bond proceeds are budgeted as revenue. 13 TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): E. Budgetary Control (Continued) ' The Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -General, Special Revenue, and Capital Project Funds presents a ' comparison of budgetary data to actual results of operations for which annual operating budgets are legally adopted. However, it was not anticipated that debt service expenditures for bonds would need to be reflected in debt service funds; thus, no appropriated budgets were adopted for the debt service funds, although expenditures for the bonds were budgeted within the general fund. Accordingly, comparison of actual results of operations to budgetary data for the debt service funds are not presented. A budgetary basis to GAAP basis reconciliation of the special revenue funds, of which the PAG 15% Funds was not budgeted, follows: Budgetary Unbudgeted GAAP 1 Basis Fund Basis ct 1 Actual Actual ' Total revenues and other financial sources $1,545,800 $ 64,470 .$1,610,270 ' Total expenditures and other financial uses 1,312,248 64,470 1,376,718 Excess of revenues and other ' financial sources over expenditures and other financial uses $ 233,552 ~ ~ 233,552 ' F. Encumbrances ' Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an extension of formal budgetary integration in the general fund and special revenue funds. n 14 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): G. Reservations and De ignations of Fund Balance In addition to the reservations of fund balance for prepaid expenditures mentioned below, the Town has established other reservations of fund balance as follows: Reserved for debt service represents amounts required to be maintained under the provisions of various bond ordinances or amounts reserved for future debt service requirements. Reserved for restricted assets represents assets maintained by Pima County for custodial purposes that are restricted for expenditures that will enhance the Town's ability to conduct police investigations. The designation for subsequent years' expenditures represents Capital Projects Fund Balances specifically identified for capital improvements. H. Use of Estimates The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. This will effect 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 expenditures during the reporting period. Actual results could differ from these estimates. I. Bond Issuance Co t For the enterprise/water fund, bond issuance costs are capitalized in the period in which the bonds are issued and are amortized on a straight line basis over 20 years. For all other funds, bond issuance costs are recognized as expenditures in the period in which the bonds are issued. J. Cash and Cash Equivalents For the purpose 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 3 months or less when purchased are considered as cash equivalents. 15 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS ' June 30, 2000 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): K. Investments ' GASB Statement No. 31 provides that governmental entities may report all investments at fair value or they may elect to report certain money market investments and participating interest-eaniing investment contracts at amortized cost. The Town has ' elected to report all investments at fair value. Statutes authorize the Town to invest public monies in certificates of deposit, interest bearing savings accounts, and repurchase agreements provided eligible depositories meet interest rate, capital structure, and collateral requirements. Other authorized investments include obligations of the U.S. Government and its agencies, of Arizona utility and municipal improvement districts, and the Arizona State Treasurer's Local Government Investment Pool ("LGIP"). The LGIP is overseen by the State of Arizona. The fair value of each share in the LGIP is $1. L. Restricted Assets The trust indentures executed for all of the 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 purchasing fixed assets for the water fund, to finance various capital projects, and to construct a new facility for the Town's operations. 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 expenditures that will enhance the Town's ability to conduct police investigations. M. Pre ait~ d Expenditures Prepaid expenditures are for payments made by the Town in the current year for liability insurance coverages extending into the subsequent year, and the reserve for prepaid items has been recognized to signify that a portion of fund balance is not available for other subsequent expenditures. N. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds ' for goods provided or services rendered. These receivables and payables are classified as "due from other funds" and "due to other funds" on the combined balance sheet. i 16 TOWN OF MARANA, ARIZONA , NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 ' NOTE 1 - (Continued): O. Inventories SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Town uses the purchase method of expending inventories. There were no significant inventories on hand at June 30, 2000 in the general fund. P. Fixed Assets General Fixed Assets Account Groun Fixed assets used in Governmental Fund Type operations (general fixed assets), including those purchased with Federal grant monies, are accounted for in the General Fixed Assets Account Group, rather than in Governmental Funds. Public domain ("infrastructure") general fixed assets, such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized along with other general fixed assets for reporting purposes. Donated fixed assets are valued at estimated fair value on the date donated. All purchased fixed assets are valued at cost. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. No depreciation has been provided on any of the remaining assets. Interest has also been capitalized on fixed assets in the Governmental Fund Type operations. Proprietary Fund T.y~ Property, plant, and equipment owned by the enterprise funds are recorded at cost. Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. Depreciation is provided over the estimated useful lives of such assets using the straight- line method. These estimated useful lives are as follows: Pump stations, distribution systems, equipment and improvements Organization costs Machinery, equipment, and assets under capital lease Estimated Useful LiveslYearsl 20 -40 17 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Q. Capitalized Lcase Obligations The amount capitalized under capital leases is the lesser of the present value of the minimum lease payments or the fair value of the leased properties at the beginning of the respective lease terms. When a governmental fund acquires a fixed asset through a capital lease agreement, the acquisition is reflected as an expenditure and other financing source, and simultaneously the acquired asset and related liability are recorded in the General Fixed Assets Account Group and in the General Long-Term Debt Account Group. Capitalized leases of the proprietary fund are accounted for entirely within the proprietary fund by capitalizing the asset acquired and recording the lease obligation as a liability. R. Compensated Absences In the general long-term debt group of accounts, essentially the entire accumulated liability for compensated absences is reflected, since the liability at June 30, 2000, will most likely not be paid within the current accounting cycle. Rather, in fiscal 2001 the Town will probably pay that year's accrual without utilizing amounts accrued from prior years. S. Find Changes and Transactions Between Fund Transactions that would be treated as revenue, expenditures, or expenses if they involved organizations external to the governmental unit are accounted for as revenue, expenditures, or expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenditures. or expenses initially made from that fund which are properly applicable to another fund. are recorded as expenditures or expenses in the reimbursirig fund and as reductions of the expenditure or expense in the fund that is reimbursed. Nonrecurring or non-routine transfers of equity between funds are treated as residual equity transfers and are reported as additions to or deductions from the fund balance of governmental funds. Residual equity transfers to the proprietary fund are treated as contributed capital. 18 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): T. Comparative Data Comparative total data for the prior year is presented in the financial statements in order to provide an understanding of changes in the Town's financial position and operations. However, presentation of prior year totals by fund type have not been presented in the statements, since their inclusion would make the statements unduly complex and difficult to read. Total columns on the combined financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columris do not present financial position, results of operations, or changes in cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain comparative date have been reclassified to present such amounts in a manner consistent with the current year's presentation. U. 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 -DEPOSITS AND INVESTMENTS A. e i s Cash on the combined balance sheet consist of amounts held in petty cash funds, change funds, and bank demand accounts. Cash held in uninsured and uncollateralized petty cash and change funds totaled $100 at June 30, 2000. At year end, the book value of the Town's banl: demand account was $136,358 and the bank balance was $1,049,234. The difference of $912,876 represents deposits in transit and outstanding checks at June 30, 2000. $100,000 of the total bank balance was covered by federal depository insurance and $500,000 of the total bank balance was covered by collateral held by the Town's custodial bank in the Town's name; leaving a bank balance of $312,876 that was uninsured- and uncollateralized. The uninsured balance is considered a Category 3 deposit in accordance with GASB Statement No. 3. 19 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 2 -DEPOSITS AND INVESTMENTS (Continued) A. I)e on sits (Continued) Restricted assets: cash is uncollateralized by the trustee holding these balances. At year end, the book value of these balances, which was the same as the bank balances, totaled $20,537. B. Investments The Town's investments as of Tune 30, 2000 are: Fair Value State Treasurer's Local Government Investment Pool $28,599,004 Money Market Funds 3,323,956 Total Investments $31.922 960 Amounts invested in the State Treasurer's Local Government Investment Pool and Money Market Funds are recorded at fair value. Government Pool investments and money market funds are not categorized, in accordance with GASB No. 3, because they are not evidenced by securities that exist in physical or book entry form. A reconciliation of Exhibit 1 to Note 2 is as follows: Exhibit 1 Cash/Pooled Investments $18,868,554 Restricted assets: Cash/Pooled Investments 9,866,908 Restricted. assets: Cash/Investments 3,344,493 Total $32.079,955 Note 2 Cash $ 136,458 Restricted assets: Cash 20.537 Investments 31, 22,960 Total $32,079,955 20 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 3 -FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION The following is a summary of the changes in general fixed assets for fiscal 2000: Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Leasehold improvements Total Balance 3uly 1, 1999 Additions $ 509,385 $ 31,001 1,110,550 114,425 713,748 - 1,717,019 991,905 464,1 ~ 7 1,551,101 119,709 Balance Deletions June 3 , 2000 $ - $ 540,386 (64,861) 1,160,114 (492,226) 221,522 (91,032) 3,177,088 - 1,111,614 - 464,157 $5,506.764 $1.816.236 648119 $6,674,881 A summary of enterprise fund property, plant, and equipment at June 30, 2000 is as follows: Land $ 221,810 Water rights 386,288 Improvements, including wells and tanks 2,913,513 Machinery, equipment, and other assets 92,582 Organization costs 54,737 Total 3,668,930 Less accumulated depreciation and amortization ( 43.6601 Fixed assets, net 2 270 21 TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 ' NOTE 4 - INTERFUND TRANSACTIONS ' A. Amounts due to/from other funds at June 30,000, are as follows: The amount due to the General Fund is due from: ' Special Revenue: 1999 Community Development Block Grant $ 19,838 GITEM 11,356 ' HIDTA 5,794 .MANTIS 19,453 Auto Theft 8,664 ' Highway User Revenue 41,364 Local Transportation Assistance 9,413 ' Capital Projects: 1997 General Obligation 28,073 Enterprise: Water 26,964 Total $ 170.919 The amount due to Special Revenue Funds is as follows: The amount due to HOME Program is due from the General Fund $ 22608 The amount due to CJEF Court Fund is due from the General Fund 23,714 The amount due to 2000 LLEBG is due from the General Fund 16,853 Total $ 63,175 A. Amounts due to/from other funds at une 30, 2000, are as follows• (Continued) The amount due to Capital Project Funds is as follows: The amount due to Other Capital Project Funds is due from the General Fund 7 7 7 The amount due to Enterprise Funds is as follows: The amount due to the Water Fund is due from the 1997 General Obligation in the Capital Projects Funds 1 4^ 1 The amount due to the Airport Authority is due from the General Fund 105,007 Total 4^ 22 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 4 - INTERFUND TRANSACTIONS (Continued) B. Residual Equi~V Transfers In/Out• The amount transferred to the Enterprise Funds is as follows: The amount transferred to the Water Fund was transferred from the 1997 General Obligation in the Capital Projects Funds $ 849,997 The amount transferred to the Airport Authority was transferred from the Airport in the Special Revenue Funds l 85,580 Total $1,035,577 NOTE 5 -CAPITAL LEASES The Town has previously entered into several long-term capital leases involving the acquisition of equipment for General Town purposes; these commitments are expected to be funded by the Town's General and Special Revenue Funds. Below is a schedule by years of future minimum lease payments under the capital leases as of June 30, 2000: Fiscal Year General Long- Ending Tune 30~ Term 2001 $ 52,768 Total minimum lease payments 52,768 Less amount representing interest X2,382) Present value of net minimum lease payments $ 50,386 NOTE 6 -LONG -TERM DEBT During 1998, the To~~n's enterprise/water fund was advanced funds under azero-interest loan in .the amount of $88,000 for the purchase of fixed assets for the water system, collateralized by two storage tanks in the water system and requiring monthly payments of $733 over a ten year term. During 1998, a capital improvement project in the capital project funds was financed by a taxpayer. Under this unsecured agreement, the Town agreed to repay the taxpayer the total cost of $665,881 for this project under azero-interest repayment plan based on quarterly payments of 33% of the Town sales tax collected by the Town from local businesses within the general vicinity of the improvements created by this project. Based on payments made during fiscal 2000, it is estimated annual repayments will be approximately $140,000 per year. 23 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 6 -LONG -TERM DEBT (Continued) The following is a schedule by }ears of the debt service requirements for this note payable in the water fund and contract payable in the general long-term debt account group as of June 30, 2000: Fiscal Year Water General Long- Ending June 30 Fun Term Debt 2001 $ 8,800 $140,000 2002 8,800 140,000 2003 8,800 59,673 2004 8,800 - 2005 8,800 - Thereafter 26,400 - Total 70,400 339,673 Less amount representing interest ~_) ~_) Principal 7 4 "' "' The following is a summary of changes in general long-term debt activity for fisca12000: Balances Balances at July 1, June 30, 1999 Additions Reductions 2000 Revenue Bonds (A) $7,930,000 $10,000,000 $(415,000) $17,515,000 Compensated absences (B) 181,624 56,515 - 238,139 Contract payable 479,565 - (139,892) 339,673 Capital leases 122,407 - (72,921) 50,386 Total $8.713,596 $10,056,515 ~(6?_6,913) $18,143,198 A. Revenue Bonds. The 1997 Series Revenue Bonds are callable as follows: Redemption Dates 7-1-2008 and 1-1-2009 7-1-2009 and 1-1-2010 7-1-2010 and thereafter The 2000 Series Revenue Bonds are not callable. Redemption Price (As a Percent of Principal) 101.0% 100.5 100.0 24 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 6 -LONG -TERM DEBT (Continued) A. Revenue Bond (Continued) Annual debt service requirements to maturity for these revenue bonds are as follows: Fiscal Year 1997 Series 2000 Series Ending June 30. n s Bonds Total 2001 $ 788,450 $ 1,208,099 $ 1,996,549 2002 785,623 1,265,700 2,051,323 2003 791,454 1,249,100 2,040,554 2004 790,873 1,255,550 2,046,423 2005 799,105 1,236,313 2,035,418 Thereafter 7,~~,3,~5 6,800,88] 14,147,216 Total 11,301,840 13,015,643 24,317,483 Less amount representing interest ! 3 786 840) (3,015,643) (6,$02.483) Principal $ 7.515.000 $10 000.000 ~ 17,515,000 B. Compensated Absence This consists of the long-term portion of accrued vacation and compensatory time, with an increase of $56,515 for fisca12000. NOTE 7 -ADVANCED REFUNDING/DEFEASANCE OF DEBT Part of the proceeds ($592,753) from the 1997 Series Revenue Bonds were used to refund both the 1990 and 1992 Series Revenue Bonds. The two debt issues refunded had remaining outstanding balances totaling $545,000. The purpose of the refunding was to take advantage of lower interest rates, as well as to restructure future debt service payments. This refunding decreased the Town's total debt requirements by $178,001 and resulted in ari estimated economic gain (the difference between the present value of the debt service payments on the old and new debt) of $72,934. The proceeds from this advanced refunding were deposited in trust with an escrow agency and invested in U.S. Governmental Securities which are designed to meet -the requirements of the refunded debt. This trust is administered by a trustee and is restricted to the retirement of the refunded debt. As a result, the refunded bonds met the requirements of an in-substance debt defeasance and the debt associated with the refunded issues, as well as the trust assets, were removed from the Town's financial statements. At June 30, 2000 the amount of outstanding principal relative to the 1992 Series Revenue Bonds was $280,000 with the 1990 Series Revenue Bonds fully redeemed during fiscal 1999. 25 ' T W F MARANA ARIZONA O NO , ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 ' NOTE 8 -EMPLOYEE RETIREMENT SYSTEMS ' A. Arizona Public Safety Retirement System All of the Town's full-time police officers are covered by the Marana Marshal's 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 pension plan provides pension benefits, deferred allowances, death and disability ' benefits and limited health insurance benefits. A member is eligible if he is employed in a covered position prior to attaining age 50 years, for at least 20 hours a week for more -than 6 months a year. A member may retire after reaching the age of 62 and completion of 15 years service, or completion of 20 years service with the Town. Benefits vest after 10 years of credited service. Police officers who retire with 25 or more years of credited service are entitled to monthly pension payments for the remainder of their lives equal to ' S0% of average monthly compensation for the first 20 years of credited service with the Town, plus 2 /2% of average monthly compensation for each year of credited service above 20 years with the Town. Police officers who retire with 20 years of credited ' service with the Town, plus 2% of average monthly compensation for each year of credited service between 20 and 25 years with the Town. Police officers who retire with less than 20 years of credited service with the Town are entitled to monthly pension ' payments for the remainder of their lives equal to the average monthly compensation for the entire service period reduced at a rate of 4% a year for each service year below 20 ' years of service. The maximum monthly pension payment cannot exceed 80% of the average monthly compensation. ' Pension provisions include deferred allowances whereby a police officer may terminate his employment with the Town after accumulating 10 or more years credited service. Pension benefits are then equal to twice the amount of pension benefits based on the ' police officer's accumulated contributions. If the police officer does not withdraw his accumulated contributions, the police officer is entitled to these pension benefits upon reaching the age of 62. ii 26 -_ TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 8 -EMPLOYEE RETIREMENT SYSTEMS (Continued} A. Arizona Public Safety Retirement S}stem (Continued) Pension provisions include disability and death benefits. Disabled officers are entitled to monthly payments for life of 50% of their average monthly compensation or normal pension amount, whichever is greater, if their disability is service connected, regardless of years of credited service. Average monthly compensation (AMC) is one-thirty-sixth of total compensation paid a member during the 3 years, out of the last 10 years of credited service, in which the amount paid was highest. If the police officer's disability was not service connected, the disabled officer is entitled to monthly payments for life of 25% of AMC, if the credited service is less than 7 years, 50% of AMC, if the credited service is 7 through 13 years, or 7~% of AMC, if the credited service is 14 through 19 years. If the police officer is only temporarily disabled, he is entitled to monthly payments equal to one-twelfth of 50% of compensation paid during the year preceding the date the disability was incurred. The payments terminate after 12 months or prior recovery. Surviving spouses are entitled to two-thirds of the monthly payments, or 100% if duty related, the deceased active police officer would have been paid for disability or, in the case of a retired police officer, two-thirds of the retired officer's monthly pension payments. To qualify as a surviving spouse, the spouse must have been married to the deceased for at least 2 years. The spouse's benefits terminate upon her death. Each dependent child of a deceased police officer is entitled to one-ninth of the monthly payments the deceased active police officer would have been paid for disability or, in the case of a retired police officer, one-ninth of the retired officer's monthly pension payments. When the dependent child reaches the age of 18 or 23, if the dependent is a full-time student, the monthly payments will terminate. Pension provisions include health insurance benefits, whereby the retired police officer or his surviving spouse can elect to be covered by a health insurance plan provided by the Town or State of Arizona. The retired police officer or his surviving spouse pay for this coverage. However, they cannot be charged more than $82.50 per month plus an amount up to $47.50 per month for dependent coverage, if any. The Town's current year payroll for eligible police officers amounted to approximately $2,047,000. Police officers. of the Town are required to pay 7.65% of their gross earnings to the pension plan. The Town makes periodic contributions to the pension plan at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are being amortized as a level percent of payroll over an open period of 20 years starting July 1, 2000. During 2000, the Town was required to contribute 5.21 % of its police officers' covered payroll to the plan. 27 ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS ' June 30, 2000 NOTE 8 -EMPLOYEE RETIREMENT SYSTEMS (Continued) ^ A. Aril na Public afety Retirement System (Continued) 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. Total contributions made during fisca12000 were $263,260, of which $106,655 was made ' by the Town and $156,605 was made by police officers. The pension contributions represent funding for normal cost and the amortization of the unfunded actuarial accrued ' liability. A variety of significant actuarial assumptions are used as of June 30, 2000, to determine ' .the standardized measure of the entry age actuarial accrued liability and these assumptions are summarized below: • The present value of future pension payments is computed by using a discount rate of 9%. The discount rate is equal to the estimated long-term rate of return on current ' and future investments of the pension plan. • Future pension payments reflect an assumption of 6.5% (compounded annually) salary increases as a result of inflation. ' Future pension payments reflect an assumption of additional projected salary increases ranging from 0.0% to 3.0% per year, depending on age, attributable to ' seniority/merit. The actuarial value of the assets was determined using techni ues that smooth the effects q of short-term volatility in the market value of investments over a four year period. The standardized measure of the unfunded actuarial accrued liability as of June ~0, 2000 is as follows: ' Active members $ 3,553,386 Retired members and beneficiaries currently receiving benefits 695,811 Vested terminated members not yet receiving benefits -0- Total actuarial accrued liability 4,249,197 Actuarial value of assets 4,265.537 ' Unfunded actuarial accrued liability $ ( 16,340) ' 28 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 8 -EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Public Safety Retirement Sim (Continued) Rewired SuPnlemental Information SCHEDULE OF MP OY R ONTRIBI TJ IONS Fiscal Annual Year Ended Required Percent Tune 30. Contribution Contributed 1996 $ 58,775 100.0% 1997 62,948 100.0% 1998 66,970 100.0% 1999 100,783 100.0% 2000 106,655 100.0% SCHEDULE OFF 1NDIN PRO RF (6) Unfunded (2) AAL as a (]) Entry Age (3) (4) (5) Percentage Valuation Actuarial Actuarial Percent Unfunded Annual of Covered Date Value of Accrued Funded AAL Covered Payroll June 30 Assets Liabili 1AAL) 1 / 2 f21~,_,(11 Pavroll t41/(Sl 1996 $ 1,462,763 $1,260,459 116.1% $ (202,304) $ 965,119 - 1997 1,956,059 1,862,109. IOS.0 (93,950) 1,275,174 -% 1998 2,527,484 2,188,698 115.5 (338,786) 1,398,167 - 1999 3,374,868 3,145,797 107.3 (229,071) 1,737,509 - 2000 4,265,537 4,249,197 100.4 (16,340) 2,014,412 -% 29 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 8 -EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Public Safety Retirement S~~stem (Continued) Required Supplemental Information (Continued) Five Year Trend Information Fiscal Annual Year Ended Pension Percent Net Pension June 30, Cost (APCI Contributed ati n 1996 $ 58,775 100.0% $0 1997 62,948 100.0 0 1998 66,970 100.0 0 1999 100,783 100.0 0 2000 106,665 100.0 0 No changes in actuarial assumptions or benefit provisions that would significantly affect the valuation of the unfunded actuarial accrued liabilities occurred during fisca12000. During fiscal 2000 and as of June 30, 2000, the Marana Marshal's Arizona PERS held no securities issued by the Town or other related parties. B. Town of Marana Retirement Plan Effective July 1, 1995, the Town established a Money Purchase Plan and Trust known as the Town of Marana Retirement Plan (Plan) in the form of the International City Management Association Retirement Corporation Prototype Money Purchase Plan and Trust. The prototype plan is qualified under Section 401 of the Internal Revenue Code. The Plan is a~defined contribution plan that provides pension benefits for all full-time employees and permanent part-time employees, except for commissioned police personnel who are covered under the Arizona Public Safety Personnel Retirement System. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate from the date of employment. The Plan requires that both the employee and the Town contribute an amount equal to 4% of the employee's biweekly earnings, which includes overtime and bonuses.. The Town's contributions for each employee (and interest allocated to the employee's account) are fully vested after five years of continuous service. 30 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 8 -EMPLOYEE RETIREMENT SYSTEMS (Continued) B. To~~~n of Marana Retirement Plan (Continued) Town contributions for, and interest forfeited by, employees who leave employment before five years of service are used to reduce the Town's current-period contribution requirement. The Town's total payroll in fiscal year 2000 was approximately $4,993,000. The Town's contributions were calculated using the earnings amount of approximately $3,059,000. For fiscal 2000, the covered employees made the required 4% contribution, amounting to $122,347, with the Town making a smaller contribution due to the application of forfeitures, amounting to $106,795 for a total of $229,142. C. Postemployment Benefits The Town offers no postemployment benefits to employees other than the previously discussed retirement plans. NOTE 9 -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 $3,000,000 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. For the fiscal years ended June 30, 2000, 1999, and 1998 there were no settlements through the pool for the Town that exceeded insurance coverage. Workers' compensation insurance is placed through the Arizona Municipal Workers' Compensation Fund. 31 ' TOWN OF MARANA ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 ' NOTE 10 -EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS l i f low ng For fiscal year 2000, expenditures exceeded authorized appropriations in the o individual special revenue funds: 1998 Community Development Block Grant $ 27,300 ' HOME Program 40,167 HIDTA 6,707 ' MANTIS 3,443 LTAF 38 454 , ' The excess expenditures for all of these funds were covered by grant revenues. At June 30, 2000, there were no individual funds with a deficit fund balance. NOTE 11 -COMMITMENTS AND CONTINGENCIES ' Th T i own e s continuously liable with respect to other claims incidental to the ordinary course of its operations. At June 30, 2000, it is the opinion of Town management, based ' on the advice of the Town Attorney and outside counsel, that any such claims would not have a material effect on the Town's financial position. The Town leases office space for its develo ment and tannin , olice, and ma istrate p p g p g court departments under noncancelable, long-term operating leases with expirations of ' November 2000 through September 2004. Two of these leases requires the Town to pay its share of real estate taxes, common area charges, and management fees. These same ' leases require annual adjustments for increases in the Town's share of real estate taxes, common area charges, and management fees. However, the increased related to controllable common area charges and management fees by the landlord cannot increase ' more than 4.J% over the prior year. One lease contains two five-year renewal options and a second lease contains one two-year renewal option at a monthly base rent of either the then escalated rental rate or 90% of the prevailing market rental rate at the time of renewal, and the third lease contains one three-year renewal option at a monthly base rent of $2,836, plus an adjustment for the increase in the Consumer Price Index (CPI) for the previous three years at the time of renewal. ' 32 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEI\ZENTS June 30, 2000 NOTE 11 -COMMITMENTS AND CONTINGENCIES (Continued) 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, 2001 $128,596 2002 49,153 2003 27,646 2004 28,475 2005' 7,171 Total 241 41 Minimum annual rentals above includes the renewal option exercised subsequent to year end but excludes annual rental under the remaining renewal options as of June 30, 2000. Rent expense under the above leases for fisca12000 aggregated $166,31 ~. NOTE 12 -WATER PRODUCTION CONTRACT The Town has a contract with Cortaro Water Users to produce substantially all of its water. Under the contract, the Town pays Cortaro a rate based on water production/usage. The rates charged are on a tiered-rate structure which provide a discount for larger volumes of water produced and are subject to annual adjustments. Water production expense under this contract for the year ended June 30, 2000 was $86,288 and is reflected in the Water Fund, an Enterprise Fund. NOTE 13 -RELATED PARTY TRANSACTIONS During fiscal 2000, the Town expended $50,000 through its general fund to a local non- profit health care agency. The Town's former mayor was the executive director and is now a consultant of this health care agency. Before making these expenditures, the Town Council discussed and approved these expenditures. The former mayor did not participate in the presentation, discussion, or approval of these expenditures. ^^ 1 1 1 1 1 1 1 1 1 1 1 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2000 NOTE 14 -LEASING ARRANGEMENTS The Airport Authority, an Enterprise Fund, leases part of the airport to local Marana businesses under noncancelable 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 Tune 30, 2000, not including renewal options: Years Ending June 30, 2001 $ 50,791 2002' 67,520 2003 69,041 2004 85,770 2005 87,291 Thereafter 1,882.978 Total $2,243,391 These notes are an integral part of the accompanying combined financial statements. 34 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS STATEMENTS A GENERAL FUND The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in other funds. In Marana, these services include general government, development and planning services, town attorney, police, magistrate court, public works, and parks and recreation. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS GENERAL FUND - EXHIBIT A-1 June 30, 2000 and 1999 2000 1999 ASSETS Cash/Pooled Investments $ 18,868,554 ~ 13,387,118 Receivables: Taxes 1,277,989 1,063,722 Other 75,936 437,962 Prepaid expenditures 47,000 40,000 Due from other funds 170,91 9 875,61 4 TOTAL ASSETS $ 20,440,398 $ 15,804,416 LIABILITIES AND FUND EQUITY LIABILITIES ' Accounts payable and accrued liabilities $ 1,425,222 $ 908,505 Due to other funds 445,969 358,077 Deferred revenue 97,059 291 ,006 Total liabilities 1,968,250 1,557,588 FUND EQUITY Reserved for prepaid expenditures 47,000 40,000 Unreserved fund balances 18,425,148 14,206,828 Total fund equity 18,472,148 14,246,828 TOTAL LIABILITIES AND FUND EQUITY $ 20,440,398 $ 15,804,416 35 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 Year Ended June 30, 2000 REVENUES Taxes Town sales tax Town sales tax audits Total taxes Other agencies Sales taxes -state State revenue sharing Auto lieu taxes -state Total other agencies Licenses, fees and permits Building permits Development fees Cable television franchise fees Business licenses Other Total licenses, fees and permits Fines, forfeitures and penalties; Town court fines Interest Miscellaneous Other Airport and contingent revenue Balance available from prior years Total miscellaneous Total revenues OTHER FINANCIAL SOURCES Variance - Favorable Actual Budget (Unfavorable) ~ 12,690,591 $ 10,510,000 $ 2,180,591 266,686 - 266,686 12,957,277 10,510,000 2,447,277 537,043 509,175 27,868 677,532 678,225 (693) 206,596 175,000 31 ,596 1,421,171 1,362,400 58,771 1,002,812 2,000,000 (997,188) 1,443,939 - 1,443,939 51,240 55,000 (3,760) 22,855 17,500 5,355 62,961 26,000 36,961 2,583,807 2,098,500 485,307 304,810 300,000 4,810 919,463 600,000 319,463 33,845 55,000 (21,155) - 1,072,250 (1,072,250) - 4,530,150 (4,530,150) 33,845 5,657,400 (5,623,555) 18,220,373 20,528,300 (2,307,927) Bond proceeds - 7,000,000 (7,000,000) Total revenues and other financial sources 18,220,373 27,528,300 (9,307,927) EXPENDITURES General government Other general government Contractual services Commodities Special programs Other Contingency Capital outlay Debt service Total other general government 298,446 278,900 (19,546) 16,585 - (16,585) 66,294 1,151,000 1,084,706 563,233 845,775 282,542 - 1,843,561 1,843,561 168,925 - (168,925) 218,182 1, 378, 215 1,160, 033 1,331,665 5,497,451 4,165,786 36 TOWN OF MARANA, ARIZONA ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) I 0 0 L 1 r r L CI C EXPENDITURES (continued) General government (continued) Mayor and council Contractual services Commodities Other Total mayor and council Human resources Personal services Contractual 'services Commodities Special programs Other Total human resources Accounting and finance Personal services Contractual services Commodities Other Capital outlay Total accounting and finance Town Clerk Personal services Contractual services Commodities Other Total Town Clerk Town Manager Personal services Contractual services Commodities Other Contingency Capital outlay Total Town Manager Total general government $ 2,532 $ 1 ,600 $ (932) 4,293 5,101 808 131,504 26,750 (104,754) 138,329 33,451 (104,878) 100,783 101 ,325 542 12, 879 13, 000 121 4,624 - (4,624) - 25,000 25,000 168,249 40,122 (128,127) 286,535 179,447 (107,088) 165,564 199,417 33,853 30,426 30,500 74 38,875 7,326 (31,549) 9,690 8,630 (1,060) 16,731 - (16,731) 261,286 245,873 (15,413) 122,542 130,213 7,671 8,758 35,020 26,262 10,580 15,900 5,320 22,464 39,741 17,277 164,344 220,874 56,530 267,549 272,469 4,920 128,039 224,877 96,838 15,907 7,570 (8,337) 49,117 12,645 (36,472) - 100,000 100,000 - 10, 000 10, 000 460,612 627,561 166,949 2,642,771 6,804,657 4,161,886 ' 37 r TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) EXPENDITURES (continued) Development and planning services Building services Personal services $ 432,156 $ 459,003 $ 26,847 Contractual services 4,920 14,900 9,980 Commodities 19,886 11,700 (8,186) Other 22,108 14,872 (7,236) Capital outlay 6,974 9,000 2,026 Total building services 486,044 509,475 23,431 Planning and zoning Personal services 267,754 262,720 (5,034) Contractual services 48,926 71 ,000 22,074 Commodities 27,157 14,300 (12,857) Other 18,675 18,894 219 Capital outlay 10,429 - (10,429) Total planning and zoning 372,941 366,914 (6,027) Development services administration Personal services 166,482 171,232 4,750 Contractual services 200,564 175,020 (25,544) Commodities 12,569 5,001 (7,568) Other 7,171 4,300 (2,871) Capital outlay - 6,500 6,500 Total development services administration 386,786 362,053 (24,733) Total development and planning services 1,245,771 1,238,442 (7,329) Town attorney Tax 374 4,270 3,896 Water 54,054 45,000 (9,054) Prosecution 122,693 110,000 (12,693) Annexation 3,190 10,000 6,810 General services 166,883 125,000 (41,883) Condemnations and acquisitions 29,580 36,000 6,420 Total town attorney 376,774 330,270 (46,504) Police Personal services 2,280,248 2,269,651 (10,597) Contractual services 230,564 98,087 (132,477) Commodities 156,464 112,165 (44,299) Other 52,142 61,731 9,589 Capital outlay 353,807 - (353,807) Total police 3,073,225 2,541,634 (531,591) 38 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE -BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 2000 n ~i C 0 EXPENDITURES (continued) Magistrate court Personal services Contractual services Commodities Other Total magistrate court Public works Personal services Contractual services Commodities "• Other Capital improvement projects Capital outlay Total public works Parks and recreation .Personal services Contractual services Commodities Other Capital outlay Total parks and recreation Total expenditures OTHER FINANCIAL USES Transfers to other funds Total expenditures and other financial uses Excess of revenues and other financial sources over expend- itures and other financial uses OTHER CHANGES IN FUND EQUITY Increase in reserve for prepaid expenditures UNRESERVED FUND BALANCE, BEGINNING UNRESERVED FUND BALANCE, ENDING Variance - Favorable Actual Budget (Unfavorable) $ 229,077 $ 262,542 $ 33,465 42,850 76,150 33,300 42,085 14,180 (27,905) 14,155 13,750 (405) 328,167 366,622 38,455 825,987 1,011,806 185,81 9 1,351,894 1,553,437 201,543 238,879 155,383 (83,496) 56,472 73,574 17,102 18,530 - (18,530) 367,347 286,399 (80,948) 2,859,109 3,080,599 221,490 512,075 392,998 (119,077) 129,124 124,509 (4,615) 355,388 83,061 (272,327) 66,858 15,900 (50,958) 254,372 106,800 (147,572) 1,317,817 723,268 {594,549) 11,843,634 15,085,492 3,241,858 2,151,419 7,000,000 4,848,581 13,995,053 22,085,492 8,090,439 4,225,320 $ 5,442,808 $ (1,217,488) (7, 000) 14,206,828 $18,425,148 39 THIS PAGE INTENTIONALLY LEFT BLANK. 40 STATEMENTS B SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by statute or Federal grant regulation to record particular operating functions of the Town. Federal Grant Funds -includes the Community Development Block Grants, the HOME Program, the COPS Grant, GITEM, HIDTA, MAI~TTIS, and 2000 LLEBG Grant. The separate funds have been established to account for grant revenues and to provide compliance with Federal grant regulations. Other Grant Funds -includes CJEF Court Fund, RICO, Auto Theft, LTAF, Highway User Revenue, PAG 1 ~% Funds, and Airport. These funds are non-federal funds required by Arizona Statutes to be used for police, public works, or airport expenditures. I m F- ON = W N Q W I O ,U y o Q Z 0 N Z Z m LL. 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I _ ~ l7 I . 4 H W e7 l I Z ~ y < I ~ p, LLWZ~ I O o7 m a ~~0n v ~ a j ~ v ~ O C I I I I I I p l~ l I I I ~ I ~ I I~ I ~ ~ I I I I Z W W m J~ O tL OZZ} f- ~ > j es W W u>• LL J ~ O O I O o O Q ~. m cn M ~ 0) ~ 07 to i ~ I O O ~ I I I I I I I I I I I c I ~ I I I I~ ~ ~ I I I I W d m j~ ~ u> _ ~ w i a `g i I 'A I .. w U ~ a rn o, rn J rn I I Z c n m 7 L ~ I N I I I I I 1 1 I I I rn N I rn N rn I N I II N 1 I I I ~ Q F- U ~ I ~~ y C d C O C ~ d `y r 7 (} Y7 U ~ C c « ~ o `° d W i° ~~ Z N o c a o o~ Q V Q y ~ d> ° ' Z o Z_ = oU COQ an. m I N °~ O c ~ t o ~ ~ . _ ~ ` (7 W y D Z ~ ~ o N m C v y .` 7 L~ N ~~ C ~i ~ QS Q F y N J d ~ m o y )= d y N 0 0 ~ [7' ~ W ._ C ~ a y ' 6 y I I I Q l a O d d d y Q ~ O ~ y C C ~ O N 'O ~ V C ~ w N I d d ~. ~. y I T I N ~ y d a y w y Q "' `~ p 0 0 3 0 d d G V E Z O d C W '«O ~ y T Q d m O 'L ~ C N {3 y tC O N V Z ~„ « V Z .r - .. - u) aCi >. m cc ~ c c R c I t o °' a > Z'k > ey, ~ a Q 3~ a .a cro 3 Q _ ' g (jJ D7 tC y y rn.~ .2 y .~ ~ ~ ea y U N ~~_ ~ U a7 y ~ w d ~ _H ° d m o >= V E y ,~ 'Q .] ~ O LL O C y -y V Q ll Q ~ U ~ 7 ~ C C ,a W CS y d fn LO 7 7 C O d N N W L I- O H ~~=aam¢J0_JQ~h- C~ O ~ W~ = O H m j 4. d U d U O ~ x O N ~ Z .O O Z O~ W = [L W t i ¢ LL 1 1 1 1 1 1 1 1 1 1 1 1 1 TOWN OF MARANA, ARIZONA 1998 COMMUNITY DEVELOPMENT BLOCK GRANT -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-3 Year Ended June 30, 2000 REVENUES Other agencies Block grants -Pima County Total revenues EXPENDITURES Current operations General government Community development Parks Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance - Favorable Actual Budget (Unfavorable) $ 53,900 $ 26,600 $ 27,300 53,900 26,600 27,300 9,451 - (9,451) 44,449 - (44,449) - 26,600 26,600 53,900 26,600 (27,300) $ - $ - 45 TOWN OF MARANA, ARIZONA 1999 COMMUNITY DEVELOPMENT BLOCK GRANT -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-4 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) REVENUES Other agencies Block grants -Pima County Total revenues EXPENDITURES Current operations General government Community development Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 10,986 $ 200,000 $ (189,014) 10,986 200,000 (189,014) 10,043 - (10,043} 943 200,000 199,057 10,986 200,000 189,014 ~ - $ - $ - 46 TOWN OF MARANA, ARIZONA HOME PROGRAM -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-5 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) REVENUES Other agencies Block grants -Pima County Miscellaneous Sales proceeds Total revenues EXPENDITURES'• Current operations Community development Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 184,167 $ 175,000 $ 9,167 73,329. - 73,329 257,496 175,000 82,496 215,167 175,000 {40,167} 215,167 175,000 (40,167) 42,329 - 42,329 20,284 - 20,284 $ 62,613 $ - $ 62,613 47 TOWN OF MARANA, ARIZONA COPS GRANT -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-6 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) REVENUES Other agencies Public safety - U.S. Dept of Justice Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 162,009 $ 331,500 $ (169,491 } 162,009 331,500 (169,491) 162,009 331,500 169,491 162,009 331,500 169,491 $ - $ - $ - 48 TOWN OF MARANA, ARIZONA CJEF COURT FUND -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-7 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) REVENUES Other agencies Public justice -Arizona Fines, forfeitures and penalties Town court fines Interest Total revenues EXPENDITURES Current operations Police Magistrate court Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ - $ 15,000 $ (15,000) 9,490 - 9,490 1, 569 - 1, 569 11, 059 15, 000 (3, 941) 2,658 - (2,658) - 15, 000 15, 000 2, 658 15, 000 12, 342 8,401 - 8,401 15,313 - 1'5,313 $ 23,714 $ - $ 23,714 49 TOWN OF MARANA, ARIZONA RICO -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-8 Year Ended June 30, 2000 Variance - Favorable Actual Budget (UnfavorablE REVENUES Other agencies RICO funds -Pima County Interest Miscellaneous Balance available from prior years Total revenues EXPENDITURES Current operations Police Total expenditures Excess of expenditures over revenues FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 10,225 $ 40,000 $ (29,775) 1,303 - 1,303 - 309,815 (309,815) 11,528 349,815 (338,287) 15,971 40,000 24,029 15,971 40,000 24,029 (4,443) 309,815 (314,258) 24,980 - 24,980 $ 20,537 $ 309,815 $ (289,278) 50 TOWN OF MARANA, ARIZONA GITEM -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-9 Year Ended June 30, 2000 Variance - Favorable Actual Budget {Unfavorable REVENUES Other agencies Public safety -Arizona Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 147,679 $ 150,000 $ (2,321) 147,679 150,000 (2,321) 147, 67 9 150, 000 2, 321 147,679 150,000 2,321 $ - $ - $ - 51 TOWN OF MARANA, ARIZONA HIDTA -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-10 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable REVENUES Other agencies Public safety -Tucson Total revenues EXPENDITURES Current operatigns Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 59,537 $ 52,830 $ 6,707 59,537 52,830 6,707 59,537 52,830 (6,707) 59,537 52,830 (6,707) $ - $ - $ - 52 TOWN OF MARANA, ARIZONA MANTIS -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-11 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) REVENUES Other agencies Public safety -Tucson Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 53,698 $ 50,255 $ 3,443 53,698 50,255 3,443 53,698 50,255 (3,443) 53,698 50,255 (3,443) $ - $ - $ - 53 TOWN OF MARANA, ARIZONA AUTO THEFT -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-12 Year Ended June 30, 2000 REVENUES Other agencies Public safety -Arizona Total revenues EXPENDITURES Current operations Police ' Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance - Favorable Actual Budget (Unfavorable) ~ 29,549 $ 45,500 $ (15,951) 29,549 45,500 (15,951) 29,549 45,500 15,951 29,549 45,500 15,951 $ - $ - $ - 54 TOWN OF MARANA, ARIZONA HIGHWAY USER REVENUE -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-13 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) REVENUES Other agencies Highway user fees -Arizona Total revenues EXPENDITURES Current operatipns Public works Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 461,530 $ 506,730 $ (45,200) 461,530 506,730 (45,200) 461,530 506,730 45,200 461,530 506,730 45,200 $ - $ - $ - 55 TOWN OF MARANA, ARIZONA LTAF -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-14 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable REVENUES Other agencies LTAF funds -Arizona LTAF -Pima Assoc. of Governments Total revenues EXPENDITURES., Current operations Public works Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING $ 61,913 $ 61,110 $ 803 37,651 - 37,651 99,564 61,110 38,454 99,564 61,110 (38,454) 99,564 61,110 (38,454) $ - $ - $ - 56 ' TOWN OF MARANA, ARIZONA 2000 LLEBG -SPECIAL REVENUE FUND ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-15 ' Year Ended June 30, 2000 REVENUES ' Other agencies Public safety - U.S. Dept of Justice Total revenues OTHER FINANCIAL SOURCES ' Transfers from other funds Total revenues and other financial sources 1 EXPENDITURES Current operations ' Police Total expenditures ' Excess of revenues and other financial sources over expenditures ' FUND BALANCE, BEGINNING FUND BALANCE, ENDING Actual $ - 1, 685 1, 685 1,685 Variance - Favorable Budget (Unfavorable) $ 50,000 $ (50,000) 50,000 (50,000) 1, 685 50,000 (48,315) 50, 000 50, 000 50, 000 50, 000 1, 685 $ 1,685 $ - $ 1,685 57 TOWN OF MARANA, ARIZONA AIRPORT -SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT B-16 Year Ended June 30, 2000 Variance - Favorable Actual Budget (Unfavorable) REVENUES Other agencies Airport -Arizona Dept of Transportation $ 185,580 $ 2,660,400 $ (2,474,820) Total revenues 185,580 2,660,400 (2,474,820) EXPENDITURES Capital improvement projects Airport - 2,813,750 2,813,750 Total expenditures - 2,813,750 2,813,750 Excess (deficiency) of revenues over (under) expenditures 185,580 (153,350) 338,930 FUND BALANCE, BEGINNING - - - Residual equity transfers out (185,580) - (185,580) FUND BALANCE, ENDING $ - $ (153,350) $ 153,350 58 ' STATEMENTS C 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. 2000 General Obligation Debt Service Fund -this fund accounts for the accumulation of ' _ resources and payment of principal and interest on the series ?000 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. ' 1997 General Obligation 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. TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET DEBT SERVICE FUNDS -EXHIBIT C-1 June 30, 2000 ASSETS Restricted assets: Cash/Investments TOTAL ASSETS LIABILITIES AND~FUND EQUITY LIABILITIES Accrued liability Total liabilities FUND EQUITY Reserved fund balances Reserved for debt service Total fund equity TOTAL LIABILITIES AND FUND EQUITY 59 2000 1997 General General Obligation Obligation $ 589,142 $ 398,925 $ 988,067 $ 589,142 $ 398,925 $ 988,067 $ 2,842 $ - $ 2,842 2,842 - 2,842 586,300 398,925 985,225 586,300 398,925 985,225 $ 589,142 $ 398,925 $ 988,067 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DEBT SERVICE FUNDS -EXHIBIT C-2 Year Ended June 30, 2000 REVENUES Interest Total revenues OTHER FINANCIAL SOURCES Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Debt service Principal retirement Interest Total expenditures Excess of revenues and other financial sources over expenditures FUND BALANCES, BEGINNING FUND BALANCES, ENDING 2000 1997 General General Obligation Obligation Totals $ 4,214 $ 691 $ 4,905 4,214 691 4,905 582,086 786,259 1,368,345 582,086 786,259 1,368,345 586,300 786,950 1,373,250 - 415,000 415,000 - 370,250 370,250 - 785,250 785,250 586,300 1,700 588,000 - 397,225 397,225 $ 586,300 $ 398,925 $ 985,225 60 STATEMENTS D CAPITAL PROJECTS FUNDS 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. "" 2000 General Obligation apital Project Fund -this fund accounts for the proceeds from the sale of the 2000 general obligation bonds which are used for authorized capital improvements. 1997 General Obligation Capital Project Fund -this fund accounts for the proceeds from the sale of the 1997 general obligation bonds which are used for authorized capital improvements. Other Capital Project Funds -this fund accounts for the purchase or construction of major capital facilities which are not funded by general obligation bonds. TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS -EXHIBIT D-1 June 30, 2000 ASSETS Due from other funds Restricted assets: Cash/Pooled Investments Investments TOTAL ASSETS LIABILITIES AND FUND EQUITY LIABILITIES Due to other funds Deferred revenue Total liabilities FUND EQUITY Unreserved fund balances Designated for subsequent years' expenditures Total fund equity TOTAL LIABILITIES AND FUND EQUITY 2000 1997 General General Obligation Obligation Other Capital Project Funds Totals $ - $ - $ 277,787 $ 277,787 9,866,908 - - 9,866,908 13,529 2,322,360 - 2,335,889 $ 9,880,437 $ 2,322,360 $ 277,787 $ 12,480,584 $ - $ 199,504 $ - $ 199,504 - - 277,787 277,787 - 199,504 277,787 477,291 9,880,437 2,122,856 - 12,003,293 9,880,437 2,122,856 - 12,003,293 $ 9,880,437 $ 2,322,360 $ 277,787 $12,480,584 61 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUNDS - EXHIBIT D-2 Year Ended June 30, 2000 REVENUES Other agencies Public works -Pima Assoc. of Governments Interest Other-User Reimbursement Total revenues OTHER FINANCIAL SOURCES Bond proceeds Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Capital improvement projects Tangerine Road Project Sandario Road Design Coachline/Silver Bell Improvements Silverbell/Cortaro Improvements Silverbell Pedestrian Improvements Silverbell Median Improvements Hartman Lane Improvements Orange Grove Embankment Improvements Debt service Fiscal agent fees/bond issuance costs Total expenditures Excess (deficiency) of revenues and other financial sources over (under) expenditures FUND BALANCES, BEGINNING Residual equity transfers out FUND BALANCES, ENDING Other 2000 1997 Capital General General Project Obligation Obligation Funds Totals $ - $ - $ 21,836 $ 21,836 160,223 149,229 - 309,452 - - 63,357 63,357 160,223 149,229 85,193 394,645 9,999,625 - - 9,999,625 - - 781,389 781 ,389 9,999,625 - 781,389 10,781,014 10,159,848 149,229 866,582 11,175,659 - - 21 ,836 21,836 - - 18, 843 18, 843 - - 472,897 472,897 - - 337,456 337,456 - - 2,460 2,460 - - 626 626 - 125,703 561 126,264 - 157,320 11,903 169,223 279,411 - - 279,411 279,411 283,023 866,582 1,429,016 9,880,437 (133,794) - 9,746,643 - 3,106, 647 - 3,106, 647 - (849,997) - (849,997) $ 9,880,437 $ 2,122,856 $ - $ 12,003,293 62 TOWN OF MARANA, ARIZONA 2000 GENERAL OBLIGATION -CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT D-3 Year Ended June 30, 2000 REVENUES Interest Total revenues OTHER FINANCIAL SOURCES Bond proceeds Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Capital improvement projects Town Hall Complex Debt service Fiscal agent fees/bond issuance costs Total expenditures Excess (deficiency) of revenues and other financial sources over (under) expenditures FUND BALANCES, BEGINNING FUND BALANCES, ENDING Variance- Favorable Actual Budget (Unfavorable) $ 160,223 $ - $ 160,223 160,223 - 160,223 9,999,625 - 9,999,625 - 7,000,000 (7,000,000) 9,999,625 7,000,000 2,999,625. 10,159,848 7,000,000 3,159,848 - 7,456,000 7,456,000 279,41 1 - (279,411) 279,411 7,456,000 7,176,589 9,880,437 (456,000) 10,336,437 $ 9,880,437 $ (456,000)_ $ 10,336,437 63 TOWN OF MARANA, ARIZONA 1997 GENERAL OBLIGATION -CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT D-4 Year Ended June 30, 2000 Variance- Favorable Actual Budget (Unfavorable) REVENUES Interest Balance available from prior years Total revenues EXPENDITURES Capital improvement projects Water System Improvements/Acquistion Hartman Lane Improvements Orange Grove Embankment Improvements Total expenditures Excess (deficiency) of revenues over (under) expenditures FUND BALANCES, BEGINNING Residual equity transfers out FUND BALANCES, ENDING $ 149,229 $ - $ 149,229 - 2,840,679 (2,840,679) 149,229 2,840,679 (2,691,450) - 2,384,679 2,384,679 125,703 - (125,703) 157,320 - (157,320) 283,023 2,384,679 2,101,656 (133,794) 456,000 (589,794) 3,106,647 - 3,106,647 (849,997) - (849,997) $ 2,122,856 $ 456,000 $ 1,666,856 64 TOWN OF MARANA, ARIZONA OTHER CAPITAL PROJECT FUNDS -CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL EXHIBIT D-5 Year Ended June 30, 2000 Variance- Favorable Actual Budget (Unfavorable) REVENUES Other agencies Public works -Pima Assoc. of Governments Other-User Reimbursement Total revenues OTHER FINANCIAL SOURCES Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Capital improvement projects Tangerine Road Project Sandario Road Design Coachline/Silver Bell Improvements Silverbell/Cortaro Improvements Silverbell Pedestrian Improvements Silverbell Median Improvements Hartman Lane Improvements Orange Grove Embankment Improvements Twin Peaks Scoping Capital Improvement Plan Contingency Total expenditures Excess (deficiency) of revenues and other financial sources over (under) expenditures FUND BALANCES, BEGINNING FUND BALANCES, ENDING $ 21,836 $ 900,000 $ (878,164) 63,357 - 63,357 85,193 900,000 (814,807) 781,389 781,389 781,389 781,389 866,582 900,000 (33,418) 21,836 200,000 178,164 18,843 300,000 281,157 472,897 450,000 (22,897) 337,456 1,433, 807 1, 096, 351 2,460 - (2,460) 626 - (626) 561 571,000 570,439 11,903 - (11,903) - 1,275,000 1,275,000 - 1, 071, 424 1, 071,424 - 1,000,000 1,000,000 866,582 6,301,231 5,434,649 - (5,401,231) 5,401,231 $ - $ (5,401,231) $ 5,401,231 65 STATEMENTS E ENTERPRISE FUNDS Enterprise Funds are established to account for operations that are financed and operated in a manner similar to a private business enterprises and where periodic determination of net income is desired. Expenses, including depreciation, of providing goods or services to the general public are recovered primarily through user charges. Water Fund -established to account for the financing and operation of the Water Utility. All activities necessary to provide water services to Town residents are accounted for within this fund. Airport Authority -established to account for the financing and operation of the Marana Airport. 1 n u u [] 1 ASSETS CURRENT ASSETS Receivables: Other Due from other funds TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET ENTERPRISE FUNDS -EXHIBIT E-1 June 30, 2000 Water Airport Fund Authority Total current assets PROPERTY, PLANT, AND EQUIPMENT Land Water rights Improvements, including wells and tanks Machinery, equipment, and other assets Organization costs Total Less accumulated depreciation and amortization Total property, plant, and equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY .CURRENT LIABILITIES Accounts payable and accrued liabilities: Accounts payable Deposits Accrued payroll Other Total Due to other funds Current portion of note payable Total current liabilities LONG-TERM LIABILITIES Note payable, less current maturities above Total long-term liabilities Total liabilities FUND EQUITY Contributed capital Deficit Total fund equity TOTAL LIABILITIES AND FUND EQUITY Totals $ 68,570 $ 14,028 $ 82,598 171,431 105,007 276,438 240,001 119,035 359,036 14,720 207,090 221,810 386,288 - 386,288 2,913,513 - 2,913,513 75,504 17,078 92,582 39,388 15,349 54,737 3,429,413 239,517 3,668,930 427,796 4,864 432,660 3,001,617 234,653 3,236,270 $ 3,241,618 $ 353,688 $ 3,595,306 $ 215,724 $ 31,453 $ 247,177 54,408 - 54,408 6,818 - 6,818 6,288 - 6,288 283,238 31,453 314,691 26,964 - 26,964 8,800 - 8,800 319,002 31,453 350,455 61,600 - 61,600 61, 600 - 61, 600 380,602 31,453 412,055 3,642,696 408,019 4,050,715 (781,680) (85,784) (867,464) 2,861,016 322,235 3,183,251 $ 3,241,618 $ 353,688 $ 3,595,306 66 r TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY -ENTERPRISE FUNDS -EXHIBIT E-2 Year Ended June 30, 2000 OPERATING REVENUES Current use charges Other Total operating revenues OPERATING EXPENSES Material, supplies, and other expenses: Personal services Contractual services Commodities Other Depreciation expense Total operating expenses NET LOSS DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING Water Airport Fund Authority Totals $ 572,684 $ 51,798 $ 624,482 18,112 - 18,112 590,796 51,798 642,594 232,038 12,037 244,075 85, 966 62, 961 148, 927 419,481 27,249 446,730 47, 312 30,471 77, 783 147, 92 3 4, 864 152, 787 932,720 137,582 1,070,302 (341,924) (85,784) (427,708) (439, 756) - (439, 756) (781,680} (85,784) (867,464) 2,792,699 222,439 3,015,138 849,997 185,580 1,035,577 3,642,696 408,019 4,050,715 $ 2,861,016 $ 322,235 $ 3,183,251 67 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS -EXHIBIT E-3 Year Ended June 30, 2000 CASH FLOWS FROM OPERATING ACTIVITIES Loss from operations Adjustments to reconcile loss from operations to net cash provided (used) by operating activities: Depreciation Changes in operating assets and liabilities: increase in accounts receivable Increase in accounts payable and accrued expenses Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES (Increase) decrease in due from other funds Decrease in due to other funds Net cash used in noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Residual equity transfers from special revenue funds Residual equity transfers from capital project funds Principal paid on capital lease Principal paid on note payable Purchase of fixed assets Net cash provided by capital and related financing activities NET INCREASE IN CASH CASH, BEGINNING OF YEAR CASH, END OF YEAR Water Airport Fund Authority Totals $ (341,924) $ (85,784) $ (427,708) 147,923 4,864 152,787 (16,998) (14,028) (31,026) 231,771 31,453 263,224 20,772 (63,495) (42,723) 38,671 (105,007) (66,336) (163,410) - (163,410) (124,739) (105,007) (229,746) - 185,580 185,580 849,997 - 849,997 (7,024) - (7,024) (8,800) - (8,800) (730,206) (17,078) (747,284} 103,967 168,502 272,469 $ - $ - $ - SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCIAL ACTIVITIES During fiscal 2000, the Airport Authority financed the purchase of fixed assets with the application of a deposit for fixed asset acquisition of $207,090. 68 TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS WATER FUND -EXHIBIT E-4 June 30, 2000 and 1999 2000 ASSETS CURRENT ASSETS Receivables: Other Due from other funds Total current assets PROPERTY, PLANT, AND EQUIPMENT Land Water rights Improvements, including wells and tanks Asset under capital lease Machinery, equipment, and other assets Organization costs Total Less accumulated depreciation and amortization Total property, plant, and equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Accounts payable Deposits Accrued payroll Other Total Due to other funds Current portion of capital lease Current portion of note payable Total current liabilities LONG-TERM LIABILITIES Note payable, less current maturities above Total long-term liabilities Total liabilities FUND EQUITY Contributed capital Deficit Total fund equity TOTAL LIABILITIES AND FUND EQUITY 1999 $ 68, 570 $ 51, 572 171,431 210,102 240,001 261,674 14,720 14,720 386,288 50,000 2,913,513 2,523,401 - 26,541 75, 504 45,157 39, 388 39, 388 3,429,413 2,699,207 427,796 279,873 3,001,617 2,419,334 $ 3,241,618 $ 2,681,008 $ 215,724 $ - 54, 408 45, 625 6, 818 5, 842 6,288 - 283,238 51,467 26, 964 190, 374 - 7,024 8, 800 8, 800 319, 002 257, 665 61,600 70,400 61,600 70,400 380,602 328,065 3,642,696 2,792,699 (781, 680) (439,756) 2,861, 016 2, 352,943 $ 3,241,618 $ 2,681,008 69 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY -BUDGET AND ACTUAL WATER FUND -EXHIBIT E-5 Year Ended June 30, 2000 OPERATING REVENUES Current use charges Other agencies Other Total operating revenues OPERATING EXPENSES Material, supplies, and other expenses: Personal services Contractual services Commodities Other Depreciation expense Total operating expenses NONOPERATING EXPENSES Capital outlay Total nonoperating expenses Total expenses NET INCOME (LOSS) DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING Variance - Favorable Actual Budget (Unfavorable) $ 572,684 $ 635,000 $ (62,316) - 58,000 (58,000) 18,112 - 18,112 590,796 693,000 (102,20 232,038 235,263 3,225 85,966 322,200 236,234 419,481 71,795 (347,686) 47,312 57,784 10,472 147,923 - (147,923) 932,720 687,042 (245,678) - 204,000 204,000 - 204,000 204,000 932,720 891,042 (41,678) (341,924) (198,042) (143.,882) (439,756) - (439,756) (781,680) (198,042) (583,638) 2,792,699 -. 2,792,699 849,997 - 849,997 3,642,696 - 3,642,696 $ 2,861,016 $ (198,042) $ 3,059,058 70 STATEMENTS F GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is comprised of those fixed assets of a governmental jurisdiction which are not accounted for in the Enterprise Funds. Infrastructure assets, which include roads, bridges, streets, and street lighting systems are ' not included in these schedules. LI TOWN OF MARANA, ARIZONA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE EXHIBIT F-1 June 30, 2000 and 1999 2000 1999 GENERAL FIXED ASSETS Land $ 540,386 $ 509,385 Buildings 1,160,114 1,110,550 Assets under capital lease 221,522 713,748 Machinery, equipment, and other assets 3,177,088 1,717,019 Marana Park 1,111,614 991,905 Leasehold improvements 464,157 464,157 TOTAL GENERAL FIXED ASSETS $ 6,674,881 $ 5,506,764 INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE From Current Revenues $ 5,289,677 From Revenue Bonds 938,340 From Federal Grants 446,864 TOTAL INVESTMENT IN GENERAL FIXED ASSETS $ 6,674,881 $ 4,202,125 938, 340 366, 299 $ 5, 506, 764 71 ~ fOD O m (~ V N CD ' V C7 f~ C7 (O CO N ~ N (`~ N O ~ O ~ _ V ~ ~ (O N CO N_ (D fA fp ~~ N ~ n -p C I O ~ N O In O O V In .- L Ei ji I N N ~ ~ ~ I I V ~ ~ ~ O r I J ~ ' (f3 6q ~ ~ ~ Y ~ O U ~~~ I I I I I I ~ Q ~ r- ~ ~ ~ Q O Z '' _ ~ N U L~ 01 ~ O V to O Q Z U '~ ~~ Q N N ~ ~ O I n r j O ~ ~ W ~ r .- ~r N ~, ~ ~ ~m Q I N O Q CA ~ _ d ~ ~ ~ r ~ C`7 N to N Q W I-- t N u) C cC ai I I O ~ I I I N (rCAm~ Q~(~J N N N ' ~QX~ 0 ~ ~ li W ~ W O x L Z l y O t~ h (O ~ ' . C (O ~ ~ O Q _ -p N I v I p ~ I ~ F- ~ '~ W m W I ~ ~ O ti p ~ ~ m com v e~ J ~ I I I I ~ I , ~ ~ D W 2 ~ is U ' H W _~ rn Q ~ ~ a=i O Q = Q a o X ~ c a~ ~ ~ o ~, _ ~~ ~ ' ~ ~ c U Y ~. ~ W j ~ ~ v % ~ ~ ~ W ~ ~ ~ ~ i N V (A U ~ ~ ~ ' ~ > t n • ~ .Q Y J TOWN OF MARANA, ARIZONA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY EXHIBIT F-3 Year Ended June 30, 2000 General Fixed Additions Deletions General Fixed Assets and and Assets Furiction and Activity July 1, 1999 Transfers Transfers June 30, 2000 General government $ 726,835 $ 185,656 $ - $ 912,491 Development and planning services 435,758 17,402 - 453,160 Police 1,387,690 353,807 (49,193} 1,692,304 Magistrate court 159,796 - - 159,796 Public works 970,856 367,348 (41,839) 1,296,365 Community development 789,078 145,426 (64,861) 869,643 Parks and recreation 1,036,751 254,371 - 1,291,122 TOTAL GENERAL FIXED ASSETS $ 5,506,764 $ 1,324,010 $ (155,893) $ 6,674,881 73 THIS PAGE INTENTIONALLY LEFT BLANK. 74 ~~~ I 'J I~ 1 ' ~ ococorncrn.-rn~m COQ-rnNONN~O~- 0 -- R O~ 0 M~ M t0 ' td ~O ~ tf O rn t0 OD M ~- ~ t0 ~ MOtntnO rnarnM ~ In M l0 H M O O Q N to tO rn ~ ~A- ' N U r] N M 001, tM(1 N N r ~ I I rn f0 1 I N 1~ rn N ' ' Nj, ' N V ~ ~ n N N M 0 c0 O) ~ O ~ ~ ~ N V N rn I I N(O 11 N(00.~- M N .- H d' tC C ~ R ~ rn y y ~ O a °' M0M ~00rntn n (DOn~tn fD~ a? 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R ~ ~ O O Z r N TOWN OF MARANA, ARIZONA TABLE V COMPUTATION OF LEGAL DEBT MARGIN GENERAL OBLIGATION BONDS June 30, 2000 (Unaudited) Net Assessed Valuation Debt Limit Amount of debt applicable to debt limit: General obligation bonds outstanding , Less assets in debt service funds available for payment of principal Amount of debt applicable to debt limt Legal debt margin available Notes: $ 98,250,095 20% 6% Bonds (1) Bonds (2) Total $ 19,650,019 $ 5,895,006 $ 25,545,025 $ 19,650,019 $ 5,895,006 $ 25,545,025 (1) Under Arizona law, Towns can issue general obligation bonds for purposes of water, sewer, artificial light, and parks up to an amount not exceeding 20% of assessed valuation. (2) Under Arizona law, Towns can issue general obligation bonds for all purposes other than those listed in Note (1) above, up to an amount not exceeding 6% of assessed valuation. Sources: Town of Marana, Arizona and Pima County Assessor's Office of Pima County, Arizona 79 TOWN OF MARANA, ARIZONA TABLE VI COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2000 .(Unaudited) Percentage Amount Net Applicable Applicable Bonded Debt to Town to Town Jurisdiction Outstanding of Marana of Marana Town of Marana, Arizona $ 17,515,000 100.0000% $ 17,515,000 Pima County 173,970,000 1.7086% 2,972,414 Marana School District 58,830,000 27.0100% 15,889,983 Flowing Wells School District 17,150,000 7.6923% 1,319,231 $ 267,465,000 $ 37,696,628 Notes: (1) The bonded debt of Town of Marana, Arizona includes revenue bonds issued by the Marana Municipal Property Corporation. (2) Percentages and applicable amounts are estimated by the Town of Marana, Arizona based upon assessed property values and square mileage of intersected territory. Sources: Town of Marana, Arizona and Pima County Assessor's Office of Pima County, Arizona 80 ' TOWN OF MARANA, ARIZONA. TABLE VII LEASE REVENUE BOND COVERAGE LAST TEN FISCAL YEARS (Unaudited) Fiscal Excise Year Revenues Principal Interest Total Coverage 1990-91 $ 1,259,135 $ - $ 22,858 $ 22,858 55.09 1991 -92 939,598 = 22,858 22,858 41.11 ' 1992-93 1,148,229 49,402 49,402 23.24 1993-94 3,902,424 - 47,361 47,361 82.40 1994-95 6,447,896 5,000 47,061 52,061 123.85 ' 1995-96 7,516,097 15,000 45,993 60,993 123.23 1996-97 9,461,127 15,000 44,903 59,903 157.94 1997-98 10,995,247 560,000 - 560,000 19.63 1998-99 14,963,819 245,000 479,362 724,362 20.66 ' 1999-00 17,267,065 415,000 370,250 785,250 21.99 Notes: ' (1) Excise revenues include Taxes, Other agencies, Licenses, fees and permits , and Fines, forfeitures and penalties in General Fund revenues. ' (2) Excise revenues of the General Fund are pledged toward payment of the lease revenue bonds (3) For fiscal 97-98, 2 bond series were defeased. $545,000 of the $560,000 ' in principal was defeased. Because of the timing of the defeased debt and the issuance of the 1997 bond series, there was no interest expense incurred/recorded for fiscal 97-98. Source: Town of Marana, Arizona 81 TOWN OF MARANA, ARIZONA TABLE VIII DEMOGRAPHICS June 30, 2000 (Unaudited) Population by Age Group Percentage Age Group Nu mber of Total Under 5 _ _ ~ 1 7~ 452 8.51% ~ ~ 5-14 t~ g ~ 808 15.22% _ ~q-.~ 15-19 7,Fr3 329 6.20% ,$': S°" 20-~9 ~~ 3,©t-C~ 807 15.20% Lz. ~ 30-~=-39 3a'"~~'- ~y3~`i 1,183 22.28% l~, 3 40-49 4~ S~4- li(es'~ 757 14.26% #;~.':~ a8~-&~ ~y`',y'..~~- I X34-0 624 11.76% D~.'~ 65 and over C&~]~- 349 6.57% ~,~ Total 13~~ 5,309 100.00% Id~~ Population by Ethhic Background Percentage Age Group Number of Total White ~ ~~~ 3,624 68.26% '~/,,~,y Hispanic ~r.663 1,200 22.60% 1q- ~4 Black ~~ 189 3.56% ~,~9 Native American ~~~' 133 2.51 % a ~ (I Other ~~ ~ 163 3.07% 3.G ~ Total 5,309 100.00% Population by Jurisdiction: 2.00° ~~~~ s /~, ~~~ g~3~7¢~ 5~~3 ~ s 63 ~°" Town of Pima State of Years Ma rana County Arizona 1998 Estimate 9,965 823,900 4,764,025 1995 Special Census 5,309 758,050 4,228,900 1990 Census 2,187 666,880 3,665,305 1980 Census 1,674 531,443 2,718,425 1970 Census 1,154 351,667 1,775,399 Note: Population figures are based on a recount completed by the U.S. Census on September i4, 1995 Sources: U.S. Census Bureau and Town of Marana, Arizona Unemployment Averages: Town of Pima State of United Years Marana County Arizona States 1999 2.1 % 2.9% 4.3% 4.3% 1998 1.9% 2.7% 4.0% 4.5% 1997 2.4% 3.3% 4.6% 5.0% 1996 2.7% 3.7% 5.1 % 5.4% 1995 2.4% 3.3% 5.1 % 5.6% 1994 3.3% 4.5% 6.3% 6.1 1993 3.2% 4.4% 6.2% 6.8% 1992 4.0% 5.4% 7.4% 7.4% Source: Arizona Department of Economic Security, Resea rch Administration 82 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TOWN OF MARANA, ARIZONA TABLE IX PROPERTY VALUE AND CONSTRUCTION LAST TEN FISCAL YEARS (Unaudited) Estimated Residential Construction Commercial Construction Fiscal Property Number of Number of Year Value Units Value Units Value 1990-91 $ 162,765,533 45 $ 3,800,816 5 $ 318,629 1991 -92 164,744,983 18 1,788,250 10 1,713,967 1992-93 156,300,829 112 9,417,569 1 20,000 1993-94 160,582,056 447 40,709,699 5 189,244 1994-95 297,740,632 320 28,018,383 41 5,742,572 1995-96 325,467,683 329 34,083,387 40 1,842,171 1996-97 .363,689,243 435 68,352,903 36 4,284,366 1997-98 485,315,813 713 77,801,401 40 6,675,409 1998-99 560,419,914 1,003 108,490,481 37 15,730,402 1999-00 693,931,626 786 93,628,161 22 9,471,305 Source: Town of Marana 83 TOWN OF MARANA, ARIZONA TABLE X TOP TEN SALES TAXPAYERS June 30, 2000 (Unaudited) Taxpayer Price Club K -Mart Home Depot US Home Corporation Target Stores Del Webb Tucson Electric Power Driver's Mart Pulte Homes Corporation KE&G Construction Nature of Business Retail-General Merchandise Retail-General Merchandise Retail-Building Materials Construction-Home Builder Retail-General Merchandise Construction-Home Builder Electric Utility Retail-Automobile Construction-Home Builder Construction-Home Builder Source: Town of Marana Note: Since the Town does not levy property taxes, the top ten sales taxpayers are based on Town sales tax collections. 84 TOWN OF MARANA, ARIZONA TABLE XI MISCELLANEOUS STATISTICAL DATA June 30, 2000 (Unaudited) Date of Incorporation: March 21, 1977 Form of Government: 7 member council/Manager Product/ Largest Employers Service Marana School District School K -Mart Retail -Stores Costco Retail -Warehouse Sargent Controls Manufacturing Fry's Food Stores Retail -Food Town of Marana Government Coca Cola Bottling Co. Retail -Manufacturing Target Retail -Stores Cracker Barrel Restaurant Comcast Cable Service -Cable Provider Sources: Town of Marana, Marana - Avra Valley Chamber of Commerce Town Employees: June 30, 2000 Full -Time 148 ((~,3 Part -Time 27 ~"Ii^ Total 175 ['~ Police Protection Number of Stations 2 Total Full -Time Employees 68 t,'1 Commissioned Employees 53 ~~ Parks and Recreation Acres 40 Parks 1 Playgrounds 1 Swimming Pools 1 Water Utility Operable Wells 12 Active Services: Metered 1,196 Unmetered 68 Water Distributed (Gallons) 159,094,266 Top Ten Home Builders in Marana for fiscal 2000: Builder # of units Del Webb Home Construction 185 Pulte Home Corporation 168 US Home Corporation 163 Richmond American Home 53 DR Horton Tucson Construction 42 KE&G Construction 39 Scotia Group - AF Sterling 38 Kaufman & Broad of Tucson 31 Woodside Homes 21 David J. Baird Construction 15 ~~ ~~ 85 Number of Employees 943 373 200 200 198 175 160 155 150 130 '9P'~'~ 'may ... u ~~ ~~ ~~~~ Town of Marana 13251 N. Lon Adams Road Marana, AZ 85653 (520) 682-3401 (520) 682-2654 (fax)