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Home My WebLink About2008 Financial Statement June 30ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÐÎÛØÛÒÍ×ÊÛ ßÒÒËßÔ Ú×ÒßÒÝ×ßÔ ÎÛÐÑÎÌ ÚÑÎ ÌØÛ Ú×ÍÝßÔ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè _____________________________ 11555 W. Civic Center Dr., A3 Marana, Arizona 85653 ÌÑÉÒ ÑÚ ÓßÎßÒß ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÐÎÛØÛÒÍ×ÊÛ ßÒÒËßÔ Ú×ÒßÒÝ×ßÔ ÎÛÐÑÎÌ ÚÑÎ ÌØÛ Ú×ÍÝßÔ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Issued by: Finance Department ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÌßÞÔÛ ÑÚ ÝÑÒÌÛÒÌÍ ×ÒÌÎÑÜËÝÌÑÎÇ ÍÛÝÌ×ÑÒ Ð¿¹» Letter of Transmittal i Principal Officials vi Senior Staff vi Organizational Chart vii Ú×ÒßÒÝ×ßÔ ÍÛÝÌ×ÑÒ INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) 5 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements: Statement of Net Assets 25 Statement of Activities 26 Fund Financial Statements: Balance Sheet – Governmental Funds 30 Reconciliation of the Balance Sheet – Governmental Funds to the Statement of Net Assets 33 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 34 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds to the Statement of Activities 37 TOWN OF MARANA, ARIZONA TABLE OF CONTENTS (Cont’d) Ú×ÒßÒÝ×ßÔ ÍÛÝÌ×ÑÒ øÝ±²¬¼÷ Ð¿¹» BASIC FINANCIAL STATEMENTS (Concl’d) Statement of Net Assets – Proprietary Funds 38 Statement of Revenues, Expenses and Changes in Fund Net Assets – Proprietary Funds 39 Statement of Cash Flows – Proprietary Funds 40 Notes to Financial Statements 41 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL (Required Supplementary Information) General Fund 69 Highway User Revenue Fund 70 Note to Required Supplementary Information 71 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES Other Major Governmental Funds Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: South Benefit Area Impact Fees Fund 77 Transportation Fund 78 Other Capital Projects Fund 79 Non-Major Governmental Funds: Combining Balance Sheet – All Non-Major Governmental Funds – By Fund Type 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 84 TOWN OF MARANA, ARIZONA TABLE OF CONTENTS (Concl’d) Ú×ÒßÒÝ×ßÔ ÍÛÝÌ×ÑÒ øÝ±²½´¼÷ Ð¿¹» COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Concl’d) Non-Major Special Revenue Funds: Combining Balance Sheet 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 92 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 96 Non-Major Debt Service Funds: Combining Balance Sheet 110 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 112 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 114 Non-Major Capital Projects Fund: Combining Balance Sheet 122 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 124 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 126 ÍÌßÌ×ÍÌ×ÝßÔ ÍÛÝÌ×ÑÒ Statistical Section 135 ×ÒÌÎÑÜËÝÌÑÎÇ ÍÛÝÌ×ÑÒ December 24, 2008 The Honorable Mayor and Town Council, and Citizens of the Town of Marana, Arizona: State statutes require that cities and towns publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States by a certified public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the annual financial report of the Town of Marana, Arizona (Town) for the fiscal year ended June 30, 2008. This report consists of senior management’s representations concerning the finances of the Town. Consequently, senior management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Town has established a comprehensive internal control framework that is designed to protect both the Town’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the Town’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town’s financial statements have been audited by Henry & Horne, LLP, a certified public accounting firm. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town for the fiscal year ended June 30, 2008, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town’s financial statements for the fiscal year ended June 30, 2008, are fairly presented in conformity with accounting principles generally accepted in the United States of America. The independent auditors’ report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Town was part of a broader, federally mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited Town’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town’s MD&A can be found immediately following the report of the independent auditors. ÐÎÑÚ×ÔÛ ÑÚ ÌØÛ ÌÑÉÒ The Town of Marana, incorporated in 1977, is located in northern Pima County and one of the fastest growing communities in Arizona.Straddling Interstate 10, Marana is only 10 miles north of downtown Tucson and 90 miles south of downtown Phoenix. Marana’s original incorporation covered approximately ten square miles. The Town’s planning area currently occupies over 120 square miles and serves a population in excess of 34,000. In its infancy, the Town was primarily a rural, agricultural community. However, through annexations and planned growth, the Town is now home to several residential, commercial and industrial developments, including Continental Ranch, Continental Reserve, Sunflower, Heritage Highlands, Dove Mountain, Saguaro Ranch, Sky Ranch, Continental Ranch Business Park and Arizona Pavilions Drive. Legislative authority for the Town of Marana is vested in a seven-member Mayor and Council. Voters of the Town directly elect the Mayor. Council-members serve four-year staggered terms. The Council fixes the duties and compensation of Town officials and employees, and enacts ordinances and resolutions relating to Town services, taxes, appropriating and borrowing monies, licensing and regulating businesses and trades and other municipal purposes. The Town Council appoints the Town Manager who has full responsibility for executing Council polices and administering Town operations. Town employees are hired under personnel rules approved by the Council. A staff of approximately 360 employees is responsible for the functions and operations of the Town government. ii ÛÝÑÒÑÓ×Ý ÝÑÒÜ×Ì×ÑÒ ßÒÜ ÑËÌÔÑÑÕ The national and local economies continued to slow significantly during the current fiscal year. This was especially true in the second half of the fiscal year ended June 30, 2008. The economic slowdown, and its effect on economically sensitive revenues, has resulted in significant decreases in revenues from building permits, planning fees and construction sales taxes. These factors were included in the Town’s multi-year revenue forecasts which provided the basis of the fiscal year 2008-09 budget. The Town’s budget is structurally balanced with ongoing revenues supporting ongoing expenditures. One-time revenues like contracting sales taxes and building permits support one-time expenditures. The Town does not anticipate any significant increase in economically sensitive revenues until fiscal year 2009-10. As a result, the Town’s adopted fiscal year 2008-09 budget, which anticipates reduced sales tax revenues and building related fees, focuses on the maintenance of essential services and programs. Ý«®®»²¬ Ý±²¼·¬·±² The Town’s current fiscal position improved slightly from fiscal year 2006-07. The financial performance of the Town as a whole is reflected in its governmental funds. As of June 30, 2008, the Town’s governmental funds reported a combined fund balance of $42.3 million, of which $41.7 million is unreserved and available for spending at the Town’s discretion. The Town, like most municipalities, is significantly dependent upon sales tax revenues which are subject to economic fluctuations.Sales tax revenues comprised 59% of general fund revenues. Retail and construction comprised 75% of total sales tax revenues. As described above, revenues related to the residential construction industry slowed significantly during the current fiscal year. Revenue shortfalls from the slowdown in residential development were partially offset by revenues received from strong commercial development during the first half of the fiscal year. Residential development is expected to be relatively slow through at least the next fiscal year. In fiscal year 2008, the Town issued 353 single family residential (SFR) permits, a decrease of 52.5 percent from the prior year. Ú«¬«®» Û½±²±³·½ Ñ«¬´±±µ Despite the significant slowdown in development, the Town of Marana’s economic outlook continues to be largely positive. The Town is well positioned to take advantage of the eventual economic recovery. Once the economy rebounds, Marana will have rapid commercial, industrial and residential growth due to the abundance of developable land. iii Ý¿¸ Ó¿²¿¹»³»²¬ Cash is invested on a pooled basis with the Arizona State Treasurer’s Office in the Local Government Investment pool. Investment income is allocated to the funds monthly on the basis of the cash provided for investment. The average yield on investments held with the State Treasurer was 2.39% for fiscal year 2008-2009. Û¨°»²¼·¬«®» Ô·³·¬¿¬·±² One June 30, 1980 Arizona voters approved general propositions amending the Arizona Constitution to establish expenditure and revenue limitations for local governments. The purpose of the expenditure limitation is to control expenditures and to limit future increases in spending to adjustments for inflation, deflation and population growth of the Town. On May 17, 2005, the voters of the Town approved an alternative expenditure limitation, the effect of which is that the total budgeted expenditures of each yearly budget becomes the expenditure limitation for that year on a total budget basis. This alternative expenditure limitation is effective for four years. Í·²¹´» ß«¼·¬ As a recipient of Federal, State and County financial assistance, the Town is responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws, regulations, contracts and grants related to those programs. Internal control is subject to periodic evaluation by management. As part of the Town’s single audit described earlier, tests are made to determine the adequacy of the internal controls, including that portion related to Federal financial assistance programs, as well as to determine that the Town has complied with applicable laws and regulations. Ð»²·±² Þ»²»º·¬ Employees of the Town of Marana participate in one of four pension plans. Most Town employees participate in the Arizona State Retirement System which administers a cost- sharing, multiple-employer defined benefit pension plan that covers general employees of the Town. The Public Safety Retirement System administers an agent multiple-employer defined benefit pension plan that covers public safety personnel. Dispatchers participate in the Correctional Officers Retirement Plan which is an agent multiple-employer defined benefit pension plan. The Elected Officials’ Retirement Plan administers a cost-sharing multiple-employer defined benefit pension plan for elected officials. Î·µ Ó¿²¿¹»³»²¬ The Town is responsible for the supervision and protection of the Town’s assets by employing various risk management techniques and procedures, which will reduce, minimize or eliminate the potential for risk. The Town carries insurance for general liability, property, automobile, and public official’s errors and omissions through the Arizona Municipal Risk Retention Pool (AMRRP). iv ûÙÑÎÍÅÐ×ØÕ×Ï×ÎÈÉ The preparation of this report would not have been possible without the efficient and dedicated services of the Finance Department. We would like to express our appreciation to all members of the Department who assisted and contributed to the preparation of this report. A special thanks to the Mayor and Council for dedicating the resources to this project and for their leadership and support of staff. Respectfully submitted, Gilbert Davidson Erik Montague, CPA Town Manager Finance Director v ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÐÎ×ÒÝ×ÐßÔ ÑÚÚ×Ý×ßÔÍ ÑÚ ÌØÛ ÌÑÉÒ ÑÚ ÓßÎßÒß Ú×ÍÝßÔ ÇÛßÎ îððè MAYOR AND COUNCIL Ed Honea, Mayor Herb Kai, Vice Mayor Roxanne Ziegler, Councilmember Russell Clanagan, Councilmember Patti Comerford, Councilmember Carol McGorray, Councilmember Jon Post, Councilmember MANAGEMENT STAFF Gilbert Davidson, Town Manager Deb Thalasitis, Assistant Town Manager DEPARTMENT HEADS Jocelyn Bronson, Town Clerk Frank Cassidy, Town Attorney Mike Mencinger, Operations Division Manager Brad DeSpain, Utilities Director Barbara Johnson, Public Works Director Charles Mangum, Airport Manager Kevin Kish, Planning Director Charles Davies, Town Magistrate John Huntley, Building Official Terry Tometich, Police Chief Tom Ellis, Parks and Recreation Director Gary Hudman, Technology Services Director Erik Montague, Finance Director Suzanne Machain, Human Resources Director Keith Brann, Town Engineer T. VanHook, Community Development Director vi ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÑÎÙßÒ×ÆßÌ×ÑÒßÔ ÝØßÎÌ Ú×ÍÝßÔ ÇÛßÎ îððè Citizens of the Town of Marana Town Council Town Magistrate Town Manager Public Information Office Deputy Town Manager Assistant Town Manager BuildingPlanningTown ClerkFinance Parks & Economic Services RecreationDevelopment HumanLegal Public Works Community Resources Development Technology Water Utility Operations & Airport Services Maintenance Police vii viii Ú×ÒßÒÝ×ßÔ ÍÛÝÌ×ÑÒ Independent Auditors' Report The Honorable Mayor and Council Town of Marana, Arizona We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Marana (the Town), Arizona, as of and for the year ended June 30, 2008, which collectively comprise the Town’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town’s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Marana, Arizona, as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In connection with our audit, nothing came to our attention that caused us to believe that the Town of Marana failed to use highway user revenue fund monies received by the Town of Marana pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2 and any other dedicated state transportation revenues received by the Town of Marana solely for the authorized transportation purposes. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. ÆÆÆÕØÏËÄÜÏÙÕÎËÏØÚÎÐ The Honorable Mayor and Council Town of Marana, Arizona In accordance with Government Auditing Standards, we have also issued our report dated December 23, 2008 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standardsand should be considered in assessing the results of our audit. The management’s discussion and analysis on pages 5 through 20 and budgetary comparison information on pages 69 through 71 are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Marana, Arizona basic financial statements. The introductory section, combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Casa Grande, Arizona December 23, 2008 2 ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ øÎ»¯«·®»¼ Í«°°´»³»²¬¿®§ ×²º±®³¿¬·±²÷ 3 4 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè As management of the Town of Marana, Arizona, (Town) we offer readers of the Town’s financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2008. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Ú×ÒßÒÝ×ßÔ Ø×ÙØÔ×ÙØÌÍ The Town’s total net assets of governmental activities increased $11.8 million which represents a 5.3 percent increase from fiscal year 2006-07. General revenues from governmental activities accounted for $38.8 million in revenue, or 63 percent of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions accounted for $22.8 million, or 37 percent of total governmental activities. The Town had $10.1 million of program revenues related to business-type activities. The Town had approximately $49.6 million in expenses related to governmental activities; of which $22.8 million of these expenses were offset by program specific charges for services or grants and contributions. General revenues of $38.8 million were adequate to provide for the remaining costs of these programs. Among major funds, the General Fund had $33.2 million in fiscal year 2007-08 revenues, which primarily consisted of sales taxes, intergovernmental revenue and licenses, fees and permits. The General fund had $31.8 million of expenditures during the year. The Transportation Fund had $8.6 million in fiscal year 2007-08 revenues, primarily consisting of contracting sales taxes.The Transportation Fund’s fund balance decreased from $17.2 million as of June 30, 2007 to $10.1 million as of June 30, 2008 due to increased capital activity in 2007-08. Fund balance in the Other Capital Projects Fund decreased by $22.7 million in fiscal year 2007-08, primarily due to the use of bond proceeds to complete the Tangerine Farms Road capital project. South Benefit Area Impact Fees Fund decreased by $3.7 million due to the increased capital activity associated with the Twin Peaks interchange project which is the major project funded from this revenue source. 5 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè ÑÊÛÎÊ×ÛÉ ÑÚ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ This discussion and analysis are intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Ù±ª»®²³»²¬ó©·¼» º·²¿²½·¿´ ¬¿¬»³»²¬ò The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business. All of the activities of the Town, except those of a fiduciary nature, are included in these statements. The Town’s activities are presented in two columns on these statements; governmental activities and business-type activities. A total column for these activities is also provided. The governmental activities include basic services of the Town including general government (administration), public safety (police and building safety), highways and streets, health and community welfare, economic and community development, culture and recreation, and transportation. These activities are primarily supported by general taxes and revenues. The business-type activities include the private sector-type activities such as water utility and airport operations. These activities are supported primarily through user charges and fees. The statement of net assetspresents information on all of the Town’s assets and liabilities, both current and long-term, with the difference between the two reported as net assets The focus on net assets is important because increases and decreases in net assets may serve as a useful indicator of how the financial position of the Town may be changing. Increases by indicate an improved financial position. However, decreases in net assets may not necessarily indicate the Town’s financial position is deteriorating. Instead, it may reflect a situation where the Town may have used previously accumulated funds (i.e., cash collected over time to fund capital projects).As a result, other financial and non-financial indicators must also be considered to effectively assess the Town’s overall financial health. The statement of activities presents information showing how the Town’s net assets changed during the most recent fiscal year. Since economic resources measurement focus and accrual basis of accounting are used for the government-wide financial statements, all changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flowsThus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and long-term debt that has not matured). This statement also focuses on both the gross and net costs of various Town functions, 6 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè based only on direct functional revenues and expenses. This is designed to show the extent to which the various functions are dependent on general taxes and revenues for support. In addition to the Town itself (primary government), the government-wide financial statements also include the Marana Municipal Property Corporation, a legally separate entity, for which the Town is financially accountable. The Corporation also has substantially the same governing board as the Town and provides services entirely to the Town. Financial information for this component unit is blended into the Town’s financial statements. In addition, the Gladden Farms Community Facilities District and the Vanderbilt Farms Community Facilities District are component units. The government-wide financial statements can be found on pages 25-27 of this report. Ú«²¼ º·²¿²½·¿´ ¬¿¬»³»²¬ò Also presented are the financial statements for governmental funds and proprietary funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Ù±ª»®²³»²¬¿´ º«²¼ò Governmental fundsare used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the Town’s near-term financing requirements and determining what financial resources are available in the near future to fund Town programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it may be useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Town’s near-term financing decision. To facilitate this comparison, reconciliations of the differences between the governmental fund balance sheet and statement of revenues, expenditures and changes in fund balances and government-wide statement of net assets and statement of activities are provided immediately following the respective governmental fund statements. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General, Highway Users Revenue, South Benefit Area Impact Fees, Transportation and Other Capital Projects, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund 7 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè data for each of these non-major governmental funds is provided in the form of combining statements and schedules. These statements are included as supplementary information after the basic financial statements starting on page 82. The Town adopts an annual budget and legally allocates (or appropriates) available monies for the General Fund, Highway User Revenue Fund, South Benefit Area Impact Fees Fund, Transportation Fund, Other Capital Projects Fund, and other non-major governmental funds. Budgetary comparison schedules have been presented for the Town’s major funds (pages 69-79), and budgetary comparison schedules have been presented for the Town’s non-major funds to demonstrate compliance with the annual budget. The basic governmental fund financial statements can be found on pages 30-40 and 82- 133 of this report. Ð®±°®·»¬¿®§ º«²¼ò Proprietary funds are used to account for services primarily supported by user charges and fees. The Town maintains one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for its water and airport services.Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Ò±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ò The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements. Î»¯«·®»¼ «°°´»³»²¬¿®§ ·²º±®³¿¬·±² ±¬¸»® ¬¸¿² ÓÜúßò In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s budget process. Governments have an option of including budgetary comparison statement of the General Fund and major special revenue funds as either part of the fund financial statements within the basic financial statements, or required supplementary information after the notes to the financial statements. The Town has elected to present these budgetary comparison schedules as required supplemental information immediately following the notes to the financial statements. Additionally, governments are required to disclose certain information about employee pension funds. These disclosures are included within Note 9 Employee Retirement Systems on page 59 rather than separately presenting the information as required supplementary information. 8 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè ÙÑÊÛÎÒÓÛÒÌóÉ×ÜÛ Ú×ÒßÒÝ×ßÔ ßÒßÔÇÍ×Í Net assets may serve over time as a useful indicator of a government’s financial position. In the case of the Town, assets exceeded liabilities by $264.6 million as of June 30, 2008. Ò»¬ ß»¬ò The majority of the Town’s net assets reflect its investment in capital assets (land, building and improvements, vehicles and equipment and construction in progress) net of accumulated depreciation and any related outstanding debt used to acquire or construct those assets. The Town uses these capital assets to provide services to its citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. In addition, a portion of the Town’s net assets are restricted for grants, highways and streets, capital outlay and debt service repayment. The Town’s financial position is the product of several financial transactions including the net results of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. The following table presents a summary of the Town’s net assets for the fiscal years ended June 30, 2008 and June 30, 2007. Governmental ActivitiesBusiness-te Activitiesotal ypT 200820072008200720082007 Current and other assets6169758589 12290079233192356380 9163620904585387 ,,,,,,,,,,,, Caital assets net2496780292069771373234145525 282521631019484232498768 p,,,,,,,,,,,,, ²»¬311375614296206144 2734264774 345878011640388324084155 Ì±¬¿´ ¿»¬ ô,,,,,,,,,,,, Current liabilities1682357214 14875928555651 377176 1518679137864768 ,,,,,,,,,,,, Noncurrent liabilities6237086562 12720682839 7084 6262383704727766 ,,,,,,,,,, 77194437 1208274868404 1384260 7881062841592534 Ì±¬¿´ ´·¿¾·´·¬·»79 ,,,,,,,,,,,, Ò»¬ ¿»¬æ Invested in capital assets, net of related debt184,395,917 159,963,322 32,341,455 25,521,633 216,737,372185,484,955 Restricted 5925465039 1313117297127 - 5926762166313117 ,,,,,,,,,, 3202212785691242212 21965967 687078009 398 Unrestricted22 ,,(,)(,,),,,, Ì±¬¿´ ²»¬ ¿»¬ $ 218,997,870232,181,177$ 32,396,370$ 26,487,600$ 264,577,547$$245,485,470 9 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè ÙÑÊÛÎÒÓÛÒÌóÉ×ÜÛ Ú×ÒßÒÝ×ßÔ ßÒßÔÇÍ×Í øÝ±²¬¼÷ The Town’s net assets increased by $17.7 million or 8.0 percent in fiscal year 2008. Investment in capital assets of $216.7 million or 81.9 percent represents the largest portion of net assets. This reflects the Town’s investment in capital assets, net of accumulated depreciation and related outstanding debt used to acquire those assets. These capital assets are used to provide services to the Town’s citizens. Consequently, the Town does not intend to sell these assets and, therefore, they are not available for future spending. Although the capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves are not intended to be used to liquidate these liabilities. This portion of net assets increased by $31.2 million or 16.8 percent primarily as a result of the acquisition and construction of infrastructure assets and related improvements. The second largest portion of net assets of $26.8 million or 10.1 percent represents resources that are subject to external restrictions on how they may be utilized. The decrease of $32.5 million or 54.8 percent is due primarily to the utilization of current year resources to complete major transportation projects. Of the $26.8 million in restricted net assets, $20.4 million is restricted by enabling legislation. The third portion consists of unrestricted net assets of $21.1 million or 8.0 percent. The unreserved net assets balance consists of net assets remaining after calculating the other two categories discussed above. The net assets may be used to meet the Town’s ongoing obligations to its citizens and creditors. Ù±ª»®²³»²¬ó©·¼» Ò»¬ ß»¬ ¿¬ Ö«²» íðô îððè Unrestricted 8.0% Restricted 10.1% Invested in capital assets, net of related debt 81.9% 10 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Ý¸¿²¹» ·² ²»¬ ¿»¬ò The Town’s total revenues for the fiscal year ended June 30, 2008, were $71.8 million. The total cost of all programs and services was $54.1 million. The following table presents a summary of the changes in net assets for the fiscal years ended June 30, 2008 and June 30, 2007. Governmental ActivitiesBusiness-type Activitiesotal T 200820072008200720082007 Î»ª»²«»æ Proram revenues: g ges for services$ 3,478,454$ 6,056,9643,189,1593$ ,090,233$ 6,667,613$ 9,147,197 Char Operatinrants and gg contributions4,699,6811,404,429 - - 4,699,681 1,404,429 Capital grants and 14,589,9205,904,0436,884,7709,072,64321,474,69014,976,686 General revenues: Sales taxes 3027172921 -899549 - 27 30172921 899549 ,,,,,,,, Proert taxes 460001 - - - 460001 - py,, Franchise taxes 308617 - - - 308617 - ,, Hihwa users taxes - -2067893 - - 2067893 gy,,,, State shared revenues 67396678 -893620- 67396678893620 ,,,,,,,, S stem develoment fees - 230677 - - - 230677 yp,, Interovernmental revenues - -4810090 - - 4810090 g,,,, Investment income 43023965 109444618834 18771 43133799 463389 ,,,,,,,,,, Miscellaneous revenues45899522095037093-496088220950 ,,,,, Ì±¬¿´ ®»ª»²«»61 62589232 10932833 220856 7112181647 75810088 114480 ,,,,,,,,,,,, Û¨»²»æ ° General overnment 1012925376 -133839 - 12 10925376 133839 g,,,,,,,, Public safet 911215325 -187308 - 911215325 187308 y,,,,,,,, Hihwas and streets 1510268874 -898158 - 10 15268874 898158 gy,,,,,,,, Health and welfare 129757 - - - 129757 - ,, Economic and community development8,642,9063,817,0478,642,9063,817,047 Culture and recreation 33977850 -557473- 33977850557473 ,,,,,,,, Interest on lon -term debt 22499797 -296864 - 22499797 296864 g,,,,,,,, Water - - 3275888 3227101 33275888 227101 ,,,,,,,, Airort - - 1196196 1028212 11196196 028212 p,,,,,,,, Ì±¬¿´ »¨»²» 4449659885 48906894720844255313 4954131969146002 °,,,,,,,,,,,, ×²½®»¿» ·² ²»¬ ¿»¬ ¾»º±®» ¬®¿²º»®$ 11,929,347$ 18,042,144$ 5,748,772$ 7,926,334$ 17,678,119$ 25,968,478 Ì®¿²º»®159998470357159998470357-- $(,)$,$,$(,) ×²½®»¿» ·² ²»¬ ¿»¬ $ 11,769,349$ 18,512,501$5,908,770$ 7,455,977$ 17,678,119$25,968,478 11 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè ÙÑÊÛÎÒÓÛÒÌóÉ×ÜÛ Ú×ÒßÒÝ×ßÔ ßÒßÔÇÍ×Í øÝ±²¬¼÷ Ù±ª»®²³»²¬¿´ ß½¬·ª·¬·» Governmental activities increased net assets by $11.8 million for fiscal year ended June 30, 2008, and accounted for 66.7 percent of the Town’s overall increase in net assets. The overall increase in net assets during the year is attributable, in part, to the degree to which increases in ongoing revenues (sales taxes, State shared revenues, etc.) have kept pace with increases in expenses. General revenues of governmental activities of $38.8 million decreased by $10.8 million or 21.7 percent from the previous year. Of this decrease, $2.1 million is attributable to the reclassification of Highway User Revenue Fees revenue from a general revenue classification to the program revenue classification of operating grants and contributions for fiscal year 2007-08. An additional $4.8 million is due to the reclassification of intergovernmental revenues to program revenues for operating or capital grants and contributions, as applicable. The remaining portion of the decrease is primarily due to reduced sales tax revenue collections in fiscal year 2007-08 from the year earlier as a result of the slowing economy. Almost all of this reduction was experienced in the contracting sales tax classification which the Town utilizes for one-time expenses in the budgetary process. Program revenues of $22.8 million increased by $9.4 million or 70.0 percent from the previous year. This increase is largely due to an $8.7 million increase in capital grants and contributions received due to increased activity in projects funded by outside agencies combined with the reclassification of intergovernmental revenues described above from general revenues to capital grants and contributions. Approximately $2.5 million of the increase in operating grants and contributions is due to the reclassification of Highway User Revenue Fees described above combined with other increases in operating grants. These increases are offset by a decrease in charges for services revenues of $2.4 million due to decreased residential building permits, building planning and review fees, engineering fees, etc. These decreases are due to the economic slow down and reduced building activity. The following table presents the cost of the nine major Town functional activities. The table also shows each function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid provided for specific programs). The net cost shows the financial burden that was placed on the State and Town’s taxpayers by each of these functions. 12 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Year Ended June 30 2008Year Ended June 30 2007 ,, otalNet Exense/otalNet Exense/ T(p)T(p) ExensesRevenueExensesRevenue pp Ù±ª»®²³»²¬¿´ ß½¬·ª·¬·» General overnment 129253761049855410133839 8098875 g$,,$(,,)$,,$(,,) Public safet 11215325 10713699 9187308 8800330 y,,(,,),,(,,) Hihwas and streets 10268874 444454715898158 11544196 gy,,(,,),,(,,) Health and welfare 129757 87575 - - ,(,) Economic and community development 8,642,906 4,024,865 3,817,047$ 1,172,660 977850 2672523 3557473 1957648 Culture and recreation3 ,,(,,),,(,,) Interest on lon-term debt2499797249979722968642296864 g,,(,,),,(,,) Ì±¬¿´ 49,659,885 (26,891,830)44,890,689 (31,525,253) Þ«·²»óÌ» ß½¬·ª·¬·» §° Water 23275888 474994 51028212 217652 ,,,,,,,, Airort 31196196 126581 23227101 689911 p,,,,,,,, Ì±¬¿´$ 4,472,084$ 5,601,575$ 4,255,313$ 7,907,563 The cost of all governmental activities this year was $49.6 million and the cost of all business-type activities this year was $4.5 million. The increases are primarily due to a higher level of services delivered to meet the growing community. Federal and State governments, contributions and charges for services subsidized certain programs with grants, contributions and other local revenues of $8.2 million. Net cost of governmental activities ($26.9 million) was financed by general revenues, which are made up of primarily sales taxes totaling $38.8 million. The following graph shows the functional revenues and expenses of the governmental activities in order to demonstrate the extent to which the governmental functions produce direct revenues to offset related program costs. It should be noted that this graph is not intended to represent a full allocation to these functions. As described above, expenses not covered by direct program revenues are covered by the Town’s general revenues which consist primarily of taxes and unrestricted State shared revenues. In governmental activities, the functional revenues of $22.8 million are 46.0 percent of expenses for fiscal year 2008, up from 29.8 percent a year earlier. 13 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Ù±ª»®²³»²¬¿´ ß½¬·ª·¬·» Û¨°»²» ¿²¼ Ð®±¹®¿³ Î»ª»²«» $1.3 Culture and recreation $4.0 Economic and community $12.7 development$8.6 $- Health and welfare $0.1 Revenues Expenses $5.8 Highways and streets $10.3 $0.5 Public safety $11.2 $2.4 General government $12.9 $-$2.0$4.0$6.0$8.0$10.0$12.0$14.0 As seen on the following graphs, the largest revenue source for the Town’s governmental activities is sales taxes at 44.2 percent followed by capital grants and contributions at 23.7 percent and State shared revenues at 12.0 percent. The Town’s largest expense category is general government at 26.0 percent, followed by public safety at 22.6 percent and highways and streets at 20.7 percent. 14 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Ù±ª»®²³»²¬¿´ ß½¬·ª·¬·» Î»ª»²«» ¾§ Ì§°» Charges for Operating grants services and contributions Miscellaneous 5.6%7.6% revenues Capital grants 0.7% and contributions 23.7% Investment income 4.9% State shared revenues 12.0% Franchise taxes Sales taxes 0.5% Property taxes 44.2% 0.7% Ù±ª»®²³»²¬¿´ ß½¬·ª·¬·» Û¨°»²» ¾§ Ú«²½¬·±² Culture and recreation 8.0% Economic and Interest on long- community term debt development 5.0% 17.4% Health and welfare 0.3% General government 26.0% Highways and streets 20.7% Public safety 22.6% Þ«·²»ó¬§°» ß½¬·ª·¬·» Business-type activities increase the Town’s net assets by $5.9 million for fiscal year ended June 30, 2008, accounting for 33.3 percent of the Town’s growth in net assets. The overall increase in net assets during the year is primarily attributable to capital grants and contributions. 15 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Charges for services increased very modestly due primarily to the slow down in the economy and reduced number of new water connections. Capital grants and contributions decreased by $2.2 million or 24.2 percent from a year earlier due to reduced development impact fees and reduced capital grant revenues due to the timing of capital projects at the Airport. Þ«·²»ó¬§°» ß½¬·ª·¬·» Û¨°»²» ¿²¼ Ð®±¹®¿³ Î»ª»²«» $4.3 Airport $1.2 Revenues Expenses $5.8 Water $3.3 $-$1.0$2.0$3.0$4.0$5.0$6.0$7.0 The Town’s largest overall business-type activity is the Water Utility with $3.3 million in expenses and $5.8 million in program revenues during the year, followed by the Airport with $1.2 million in expenses and $4.3 million in program revenues. Þ«·²»ó¬§°» ß½¬·ª·¬·» Î»ª»²«» ¾§ Ì§°» Charges for Miscellaneous services revenues 31.2% 0.4% Investment income 1.1% Capital grants and contributions 67.3% 16 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Ú×ÒßÒÝ×ßÔ ßÒßÔÇÍ×Í ÑÚ ÌØÛ ÌÑÉÒÍ ÚËÒÜÍ As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Ù±ª»®²³»²¬¿´ Ú«²¼ò The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of the Town’s net resources available for spending at the end of the fiscal year. The financial performance of the Town as a whole is reflected in its governmental funds. As of June 30, 2008, the Town’s governmental funds reported a combined fund balance of $42.3 million, of which $41.7 million is unreserved and undesignated and therefore available for spending at the Town’s discretion. The General Fund, which is the principal operating fund of the Town, had a fund balance of $20.4 million. Revenues decreased by $2.3 million or 6.5 percent from the previous fiscal year. The decrease in revenues is primarily attributable to a $2.2 million or 48.9 percent decrease in licenses, fees and permits due to the severe economic slowdown and reduced building activity. Sales tax revenues which comprise almost 60 percent of the General Fund’s ongoing operating revenues, decreased by $1.0 million or 4.8 percent from the year earlier. These decreases in revenues were offset by increases of $0.9 million in other revenue categories like fines, fees and forfeitures and miscellaneous revenue. The Highway User Revenue Fund ending fund balance of $0.5 million reflects a $0.3 million increase over the previous fiscal year. This fund is required to account for the State allocation of gasoline taxes and other state revenues shared with local governments that are required to be used for transportation purposes. Revenues increased slightly by $32,046 or 1.6 percent from the year earlier. The Transportation Fund had a fund balance of $10.1 million which reflected a decrease of $7.1 million from a year earlier. This decrease is primarily due to increased capital project expenditures combined with decreased contracting sales tax revenues which are the primary funding source for future road infrastructure in this fund. Contracting sales tax revenues in this fund were down $2.4 million or 24.2 percent from the prior year due to the slowdown in building activity. The South Benefit Area Impact Fee Fund balance of $5.4 million reflects a decrease of $3.7 million due to a combination of decreased revenue collections of the south benefit area 17 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè transportation impact fee combined with increased expenditures on the Twin Peaks interchange project for which the transportation benefit fee is collected. Other Capital Projects fund had a fund balance at the year of the year of $(1.9) million and reflects a $22.7 million decrease primarily due usage of remaining bond proceeds for the Tangerine Farms Road capital project. The deficit balance in the find is primarily due to the timing of revenue collections from cost reimbursement capital projects within the fund. The deficit balance will be eliminated once the revenues are received in fiscal year 2008- 09. Ð®±°®·»¬¿®§ º«²¼ò The proprietary funds in the financial statements are prepared on the same measurement focus and accounting basis as the government-wide financial statements, but they provide more detail since each major enterprise fund is presented discretely. Of the total proprietary funds net assets of $32.4 million, $32.3 million comprised the funds’ investment in capital assets, $1.3 million was restricted for capital projects and unrestricted net assets of $(1.2) million. The factors concerning the finances of these funds, as well as the changes in net assets, have been addressed previously in the discussion of the Town’s business-type activities. ÞËÜÙÛÌßÎÇ Ø×ÙØÔ×ÙØÌÍ The Town’s annual adopted budget established the legal level of expenditure control. Budgetary comparison statements are required for the General Fund and all major special revenue funds. These statements compare the original budget, the budget as amended throughout the year, and the actual revenues and expenditures. Budgetary schedules for other governmental funds are also presented in this report as other supplementary information. The following are significant current year transactions that explain the budget variances: General Fund - License, fees and permit and charges for services revenues were below expectations due to the decline in the residential development market. Highway User Revenue Fund – The variance in intergovernmental revenues was primarily attributable to decreased fuel consumption due to increased gasoline prices. South Benefit Area Impact Fee Fund – The variance in contributions revenue is due to decreased impact fee collections as discussed earlier in this analysis. Transportation Fund – The sales tax variance is due to the reduction in contracting sales tax revenues which are the primary source of revenue for this fund. The 18 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè decrease is attributable to the slowdown in the economy and decreased building activity. Other Capital Projects Fund – The variance in intergovernmental revenues is due to the level of capital projects funded by other governmental sources. Amendments to the adopted budget may occur throughout the year between departments within the General Fund and between funds in all other funds in a legally permissible manner (see Note 3 – Budgetary Control).Budget adjustments between departments in the General Fund did occur. However, none of the amendments were significant. ÝßÐ×ÌßÔ ßÍÍÛÌÍ ßÒÜ ÜÛÞÌ ßÜÓ×Ò×ÍÌÎßÌ×ÑÒ Ý¿°·¬¿´ ß»¬. As of June 30, 2008, the Town had invested $282.0 million in governmental and business-type capital assets (net of accumulated depreciation). Total depreciation expense for the year was $10.9 million, with $10.0 million attributed to governmental activities and $0.9 million to business-type activities. The following schedule presents capital asset balances for the fiscal years ended June 30, 2008 and June 30, 2007. Additional information on the Town’s capital assets can be found in Note 6. Governmental ActivitiesBusiness-te Activitiesotal ypT As of As of As of As of As of As of June 30 2008June 30 2007June 30 2008June 30 2007June 30 2008June 30 2007 ,,,,,, Land3 491030 3491030 1614924 221810 5105954 3712840 $,,$,,$,,$,$,,$,, Water rihts - - 543696 543543696 696 543696 g,,,, Construction in roress81688306325907233598748 85623239828705438823121 pg,,,,,,,,,,,, Buildins and imrovements420126054178610730755565 722182624476817063612351 gp,,,,,,,,,,,, Machiner and euiment 17 134558 15634383 404059 17398976 538617 16033359 yqp,,,,,,,,,, Infrastructure 159017599 157187070 39388 15954737 056987157241807 ,,,,,,,,,, Less: Accumulated dereciation5366606943712176461492537592305828099447471406 p(,,)(,,)(,,)(,,)(,,)(,,) Ì±¬¿´ $ 206,977,137249,678,029$ 32,341,455$ 25,518,631$ 282,019,484$ $232,495,768 19 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÓßÒßÙÛÓÛÒÌÍ Ü×ÍÝËÍÍ×ÑÒ ßÒÜ ßÒßÔÇÍ×Í øÓÜúß÷ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè ÝßÐ×ÌßÔ ßÍÍÛÌÍ ßÒÜ ÜÛÞÌ ßÜÓ×Ò×ÍÌÎßÌ×ÑÒ øÝ±²½´¼÷ Ü»¾¬ ß¼³·²·¬®¿¬·±²ò At year-end, the Town had $66.4 million in long-term obligations outstanding with $3.9 million due within one year. During the year, the Gladden Farms Community Facility District (a component unit) issued $3.1 million in general obligation debt to acquire portions of roadway and other district infrastructure which is secured by property taxes within the benefiting district. The following table presents a summary of the Town’s outstanding bonded debt for the fiscal years ended June 30, 2008 and June 30, 2007. Additional information on the Town’s long-term obligations can be found in Note 7. Governmental ActivitiesBusiness-te ActivitiesTotal yp 200820072008200720082007 General obli ation bonds 8385000 5355000 - - 8385000 5355000 g$,,$,,$$$,,$,, Revenue bonds 29,240,000 30,460,000 - - 29,240,000 30,460,000 Secial assessment bonds 25,774,000 25,774,000 - - 25,774,000 25,774,000 p Com ensated absences 926342 741765 64196 99027962 538 769727 p,,,,,, Notes aable 21900000 -9000008800 21900000908800 py,,,,,,,,, Caital Lease 115,578 135,210 - - 115,578 135,210 p Total 66,340,920 65,365,975$64,196$36,762$66,405,116$65,402,737 ÛÝÑÒÑÓ×Ý ÚßÝÌÑÎÍ ßÒÜ ÒÛÈÌ ÇÛßÎÍ ÞËÜÙÛÌ ßÒÜ ÎßÌÛÍ The slowdown in the national economy and, in particular, the slowdown in the housing market in Arizona, is having a direct impact on the Town. Revenues from building permits, planning fees and construction sales taxes have slowed significantly. As a result, the Town adopted a fiscal year 2008-09 budget which anticipates reduced sales tax revenues and building related fees. The Town’s multi-year revenue forecasts project flat revenue growth through at least fiscal year 2009-10. These revenue projections will require a focus on the maintenance if essential services and programs in the development of future budgets. ÝÑÒÌßÝÌ×ÒÙ ÌØÛ ÌÑÉÒÍ Ú×ÒßÒÝ×ßÔ ÓßÒßÙÛÓÛÒÌ This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Department, Town of Marana, Arizona at 11555 West Civic Center Drive, Marana, Arizona 85653, or visit www.marana.com. 20 ÞßÍ×Ý Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ 21 22 ÙÑÊÛÎÒÓÛÒÌóÉ×ÜÛ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ 23 24 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÌßÌÛÓÛÒÌ ÑÚ ÒÛÌ ßÍÍÛÌÍ ÖËÒÛ íðô îððè GovernmentalBusiness-type ActivitiesActivitiesTotal ÍÍÛÌÍ ß Current assets: Cash and cash equivalents $40,655,936$1,382,687$ 42,038,623 Taxes receivable 1,659 1,659 - Accounts receivable 117,258429,094 546,352 Interest receivable 213,1661,477 214,643 Due from other governments 13,630,0431,823,045 15,453,088 Internal balances 2,144,838(2,144,838)- Prepaid items 298,568431,854 730,422 Total current assets 57,061,4681,923,319 58,984,787 Noncurrent assets: Restricted cash and investments 2,379,319 2,379,319 - Deferred bond charges 2,256,798 2,256,798 - Capital assets not depreciated 85,179,3365,757,368 90,936,704 Capital assets (net of depreciation) 164,498,69326,584,087 191,082,780 Total noncurrent assets 254,314,14632,341,455 286,655,601 Ì±¬¿´ ¿»¬ 311,375,61434,264,774 345,640,388 Ô×ßÞ×Ô×Ì×ÛÍ Current liabilities: Accounts payable 10,656,3981,344,459 12,000,857 Accrued payroll and employee benefits 420,58223,009 443,591 Unearned revenue 890,598 890,598 - Deposits held for others 89,879377,165 467,044 Due to other government -59,575 59,575 Compensated absences 741,07451,357 792,431 Capital leases 40,515 40,515 - Notes payable 1,000,000 1,000,000 - General obligation bonds - CFD 50,000 50,000 - Special assessment bonds - TRFID 951,000 951,000 - Revenue bonds 1,055,000 1,055,000 - Accrued interest payable 928,526 928,526 - Total current liabilities 16,823,5721,855,565 18,679,137 Noncurrent liabilities: Compensated absences 185,26812,839 198,107 Capital leases 75,063 75,063 - Notes payable 900,000 900,000 - Deferred loss on refunding (330,805) (330,805) - Deferred bond premium 198,339 198,339 - General obligation bonds - CFD 8,335,000 8,335,000 - Special assessment bonds - TRFID 24,823,000 24,823,000 - Revenue bonds 28,185,000 28,185,000 - Total non-current liabilities 62,370,86512,839 62,383,704 Ì±¬¿´ ´·¿¾·´·¬·» 79,194,4371,868,404 81,062,841 ÒÛÌ ßÍÍÛÌÍ Invested in capital assets, net of related debt 32,341,455184,395,917 216,737,372 Restricted for: Grants 1,192,511 1,192,511 - Highways and streets 448,889 448,889 - Capital projects 23,604,2581,297,127 24,901,385 Debt service 219,381 219,381 - Unrestricted 22,320,221(1,242,212)21,078,009 Ì±¬¿ ²»¬ ¿»¬ $232,181,177$32,396,370$ 264,577,547 ´ Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»¹®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ò 25 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÌßÌÛÓÛÒÌ ÑÚ ßÝÌ×Ê×Ì×ÛÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Program Revenues OperatingCapital Grants Charges for Grants and and Ú«²½¬·±²ñÐ®±¹®¿³ExpensesServicesContributionsContributions Ð®·³¿®§ Ù±ª»®²³»²¬ Governmental activities: General government $12,925,376$898,587$1,528,235$- Public safety 11,215,325501,626- - Highways and streets 10,268,874 3,600,015 -2,224,312 Health and welfare 129,75742,182- - Economic and community development 8,642,906 2,379,875 315,424 9,972,472 Culture and recreation 3,977,850199,99287,902 1,017,433 Interest on long-term debt 2,499,797- - - Total governmental activities 49,659,8853,478,4544,699,681 14,589,920 Business-type activities: Water 3,275,8882,967,670 - 2,783,482 irport 1,196,196221,489 A - 4,101,288 Total business-type activities 4,472,084 3,189,159 - 6,884,770 Ì±¬¿´ °®·³¿®§ ¹±ª»®²³»²¬ $ 54,131,969$ 6,667,613$ 4,699,681$ 21,474,690 Ù»²»®¿´ ®»ª»²«»æ Taxes: Sales taxes Property taxes Franchise taxes State shared revenues, unrestricted Investment income Miscellaneous ®¿²º»® Ì Ì±¬¿´ ¹»²»®¿´ ®»ª»²«» ¿²¼ ¬®¿²º»® Ý¸¿²¹» ·² ²»¬ ¿»¬ Ò»¬ ¿»¬ô ¾»¹·²²·²¹ ±º §»¿® ¿ ®»¬¿¬»¼ Ò»¬ ¿»¬ô »²¼ ±º §»¿® Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»¹®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ò 26 Net (Expense) Revenue and Changes in Net Assets GovernmentalBusiness-type ActivitiesActivitiesTotals $ (10,498,554)$ (10,498,554)-$ (10,713,699) (10,713,699)- (4,444,547) -(4,444,547) (87,575) -(87,575) 4,024,865 - 4,024,865 (2,672,523) -(2,672,523) (2,499,797) -(2,499,797) (26,891,830) (26,891,830)- - 2,475,2642,475,264 - 3,126,5813,126,581 - 5,601,845 5,601,845 (26,891,830) 5,601,845 (21,289,985) 27,172,921 -27,172,921 460,001 -460,001 308,617 -308,617 7,396,678 -7,396,678 3,023,965 109,8343,133,799 458,995 37,093496,088 (159,998) 159,998- 38,661,179 306,92538,968,104 11,769,349 5,908,77017,678,119 220,411,828 26,487,600246,899,428 $ 232,181,177$ 32,396,370$264,577,547 27 28 ÚËÒÜ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ 29 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÞßÔßÒÝÛ ÍØÛÛÌ ó ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ ÖËÒÛ íðô îððè South Benefit Highway User Area Impact General FundRevenueFees ÍÍÛÌÍ ß $11,850,832$921,175$5,531,436 Cash and cash equivalents Taxes receivable - - - 103,298 ccounts receivable A - - 78,182 29,193 Interest receivable - 164,8573,369,906 Due from other governments - 9,416,860 Due from other funds - - 286,459 Prepaid items - - 119,819 Restricted cash and investments - - $25,225,35$1,086,032$5,560,629 Ì±¬¿´ ¿»¬ 6 Ô×ßÞ×Ô×Ì×ÛÍ ßÒÜ ÚËÒÜ ÞßÔßÒÝÛ Í Liabilities: $3,941,39$637,143$169,128 Accounts payable 4 420,582 Accrued payroll and employee benefits - - Due to other fund s - - - 89,879 Deposits held for others - - 358,736 Deferred revenue - - Bonds payable - - - Bond interest payable - - - 637,1434,810,591 169,128 Ì±¬¿´ ´·¿¾·´·¬·» Fund balances (deficits): Reserved for: 286,459 Prepaid items - - Debt service - - - Unreserved reported in: 20,128,30 General fund 6 - - 448,889 Special revenue funds - - 5,391,501 Capital projects funds - - 20,414,765448,8895,391,501 Ì±¬¿´ º«²¼ ¾¿´¿²½» $25,225,35$1,086,032$5,560,629 Ì±¬¿´ ´·¿¾·´·¬·» ¿²¼ º«²¼ ¾¿´¿²½» 6 Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ ¹ò 30 Non-MaorTotal j GovernmentalGovernmental Other Capital FundsFunds TransportationProjects $ 26,23410,729,488$$11,596,77140,655,93 $ 6 -1,6591,659 - -13,960117,258 - 60,31018,13327,348213,166 1,506,0756,836,8021,752,40313,630,043 172,877-9,589,737 - -10,9841,125298,568 -2,259,5002,379,319 - $12,468,750$6,892,15315,652,76 $$66,885,68 66 2,390,06 $$2,794,915$723,754$10,656,398 4 --420,582 - 3,665,572-3,779,3277,444,899 --89,879 - 2,349,755-1,782,1224,490,613 -575,000575,000 - -11,937916,589928,526 2,390,06 8,822,1797,776,79224,605,897 4 -10,9841,125298,568 -244,641244,641 - - 20,128,30- 6 - -1,192,5121,641,401 - 10,078,68(1,941,010)6,437,69619,966,873 6 10,078,68(1,930,026)7,875,9742,279,789 64 $12,468,750$6,892,15315,652,76 $$66,885,68 66 31 32 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÎÛÝÑÒÝ×Ô×ßÌ×ÑÒ ÑÚ ÌØÛ ÞßÔßÒÝÛ ÍØÛÛÌ ó ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ ÌÑ ÌØÛ ÍÌßÌÛÓÛÒÌ ÑÚ ÒÛÌ ßÍÍÛÌÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Ì±¬¿´ ¹±ª»®²³»²¬¿´ º«²¼ ¾¿´¿²½»ü ìîôîéçôéèç mounts reported for governmental activities in the Statement of Ne At Assets are different because: Capital assets used in governmental activities are not financial resource s and, therefore, are not reported in the governmental funds: Governmental capital asset $303,344,09 s8 249,678,02 Less accumulated depreciation(53,666,069 )9 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the governmental funds: Compensated absences(926,342) Capital Lease(115,578) Notes payable(1,900,000) Revenue bonds payable(28,715,000 ) General obligation bonds payabl(8,335,000) e Special assessment bonds(25,774,000(65,765,920 )) Deferred items related to the issuance of bonds are amortized over the lif e of the associated issue in the government-wide statement s Bond Premium(198,339) Bond Discoun 93,120 t Bond issue costs2,162,23 6 Deferred loss on refunding 330,8052,387,82 2 Certain revenues earned, but not received within 60 days of year-end, are deferred on the governmental financial statement, but are recognize d as revenue on the government-wide statement s Property tax revenue 1,442 3,600,0153,601,45 Intergovernmental revenu e7 Ò»¬ ¿»¬ ±º ¹±ª»®²³»²¬¿´ ¿½¬·ª·¬·»ü îíîôïèïôïéé Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»¹®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ò 33 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Highway User General FundRevenue Î»ª»²«»æ Sales taxes $19,651,082$ - Property taxes - - Interovernmental 7,531,6342,035,849 g Licenses, fees & permits 2,307,878 - Fines, forfeitures & penalties 716,983 - Chares for services 979,797 - g Lease income 987,107 - Contributions 60,788 - Investment income 569,125 - Miscellaneous 387,187 - Ì±¬¿´ ®»ª»²«» 33,191,5812,035,849 Û¨°»²¼·¬«®»æ Current - Generalovernmen -8,239,993 gt Public safety 10,181,339 - Hihways and streets 2,303,6681,021,490 g Health and welfare 129,757 - Economic and community developmen -4,537,988 t Culture and recreation 3,266,690 - Capital outla 693,1933,111,517 y Debt service - Principal retiremen - - t Interest and fiscal chares - - g Ì±¬¿´ »¨°»²¼·¬«®» 31,770,9521,714,683 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» 1,420,629 321,166 Ñ¬¸»® º·²¿²½·² ±«®½» ø«»÷æ ¹ Face value of bonds issued - - ransfers in -- T ransfers out (2,096,763) - T Ì±¬¿´ ±¬¸»® º·²¿²½·² ±«®½» ø«»÷ (2,096,763) - ¹ Ý¸¿²» ·² º«²¼ ¾¿´¿²½» (676,134) 321,166 ¹ Ú«²¼ ¾¿´¿²½»ô ¾»·²²·² ±º §»¿®ô ¿ ®»¬¿¬»¼ 21,090,899 127,723 ¹¹ Ú«²¼ ¾¿´¿²½» ø¼»·½·¬÷ô »²¼ ± §»¿ $20,414,765$ 448,889 ºº® Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ò ¹ 34 Non-Ma South Benefit orotal jT Area Impact Other Capital GovernmentalGovernmental FeesTransportationProjectsFundsFunds $ 7,511,231-$ $10,608$27,172,921 $ - - --460,001 460,001 - -7,223,0512,489,84419,280,378 - --1,033,526 3,341,404 - --91,087 808,070 - --- 979,797 - --- 987,107 168,637 470,36113,470743,498 1,456,754 392,110 588,558944,494530,359 3,024,646 - 70,145-26,220 483,552 560,747 8,640,2958,181,0155,385,14357,994,630 - 1,384,444-374,679 9,999,116 - --318,88510,500,224 - 472,68718,35380,939 3,897,137 - --- 129,757 - 33,027-338,958 4,909,973 - --- 3,266,690 4,244,028 13,787,91228,560,6416,815,69357,212,984 - 38,591-2,090,229 2,128,820 - 6,10412,8593,101,596 3,120,559 4,244,028 15,722,76528,591,85313,120,97995,165,260 (3,683,281) (7,082,470)(20,410,838) (7,735,836)(37,170,630) - --3,075,000 3,075,000 - --4,195,246 4,195,246 - (2,258,481)--(4,355,244) -- (2,258,481)7,270,246 2,915,002 (3,683,281) (7,082,470)(22,669,319)(465,590)(34,255,628) 9,074,782 17,161,15620,739,2938,341,56476,535,417 $ 5,391,501$10,078,686$(1,930,026)$7,875,974$42,279,789 35 36 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÎÛÝÑÒÝ×Ô×ßÌ×ÑÒ ÑÚ ÌØÛ ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ ÌÑ ÌØÛ ÍÌßÌÛÓÛÒÌ ÑÚ ßÝÌ×Ê×Ì×ÛÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Ò»¬ ½¸¿² » ·² º«²¼ ¾¿´¿²½» ó ¬±¬¿´ ±ª»®²³»²¬¿´ º«²¼ü øíìôîëëôêîè÷ ¹¹ mounts reported for overnmental activities in the Statement of Activities Ag are different because Governmental funds report the portion of capital outlay for capitalized assets as expenditures. However, in the Statement of Activities, the costs of those assets are allocated over their estimated useful lives depreciation expense. Expenditures for capitalized assets$52,688,71 7 Less current year depreciation(9,962,37642,726,341 ) Some items of the overnment funds are sources and uses of current g financial resources and therefore are not reported as revenues or expenses in the Statement of Activities. Proceeds from bonds issued(3,075,000 ) Bond issuance costs234,062(2,840,938 ) Repayment of debt principal are expenditures in the overnmental funds, g but the repayment reduces lon-term liabilities in the Statement of g Net Assets. Capital lease principal retirement 38,860 Note principal retirement1,000,00 0 Revenue bond principal retirement1,090,002,128,86 00 Some revenues and expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as revenues or expenditures in overnmental funds. g ccrued interest716,349 A Loss on disposal of asset (25,449) overnmental revenue3,600,015 Inter g Compensated absences(184,577) mortization of deferred chares 4,010,71(95,624) Ag4 ü ïïôéêçôíìç Ý¸¿² » ·² ²»¬ ¿»¬ ·² ±ª»®²³»²¬¿´ ¿½¬·ª·¬·» ¹¹ Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬» ®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ò ¹ 37 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÌßÌÛÓÛÒÌ ÑÚ ÒÛÌ ßÍÍÛÌÍ ÐÎÑÐÎ×ÛÌßÎÇ ÚËÒÜÍ ÖËÒÛ íðô îððè Enterprise Funds WaterAirportTotal ÍÍÛÌÍ ß Current assets: Cash and cash equivalents $ 615,390767,297$$1,382,687 Accounts receivable 380,65648,438 429,094 Interest receivable 1,477- 1,477 Due from government 1,823,045-1,823,045 s Prepaid items 431,464390 431,854 Total current asset 1,580,892,487,2634,068,157 s4 Noncurrent assets: Capital assets not depreciated 1,936,1993,821,1695,757,368 Capital assets (net of depreciation) 10,984,05115,600,0326,584,087 6 Total noncurrent asset 12,920,25019,421,20532,341,455 s Ì±¬¿´ ¿»¬ 14,501,1421,908,46836,409,612 4 Ô×ßÞ×Ô×Ì×ÛÍ Current liabilities: Accounts payable 497,658846,8011,344,459 Accrued payroll and employee benefits 3,87319,136 23,009 Compensated absences 10,05241,305 51,357 Due to other fund 2,144,838-2,144,838 s Deposits held for others 377,165- 377,165 Due to other government -59,575 59,575 s Total current liabilities 994,8393,005,564,000,403 4 Noncurrent liabilities: Compensated absences 2,51310,326 12,839 Total non-current liabilities 2,51310,326 12,839 Ì±¬¿´ ´·¿¾·´·¬·» 1,005,1653,008,0774,013,242 ÒÛÌ ßÍÍÛÌÍ Invested in capital assets, net of related debt 19,421,20512,920,25032,341,455 Restricted for capital projects 1,297,127-1,297,127 Unrestricted (721,398)(520,814) (1,242,212) Ì±¬¿´ ²»¬ ¿»¬ $13,495,979$18,900,391$32,396,370 Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ ¹ò 38 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÍÛÍô ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÒÛÌ ßÍÍÛÌÍ ÐÎÑÐÎ×ÛÌßÎÇ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Enterprise Funds WaterAirportTotal Ñ°»®¿¬·²¹ ®»ª»²«»æ Charges for services $2,717,562$221,489$ 2,939,051 Lease income250,108 250,108 - Miscellaneous 26,04611,047 37,093 Ì±¬¿´ ±°»®¿¬·²¹ ®»ª»²«»2,993,716232,536 3,226,252 Ñ°»®¿¬·²¹ »¨°»²»æ Personnel costs 960,659 1,075,052114,393 Contractual services 854,052 1,201,453347,401 Commodities 878,29650,102 928,398 Other270,436 393,137122,701 Depreciation expense 312,445561,599874,044 Ì±¬¿´ ±°»®¿¬·²¹ »¨°»²»3,275,8881,196,196 4,472,084 Ñ°»®¿¬·²¹ ´± (963,660)(282,172) (1,245,832) Ò±²±°»®¿¬·²¹ ®»ª»²«»æ Investment income 109,426408 109,834 Intergovernmental revenues4,101,2884,101,288 - Developer impact fees 459,620 459,620 - Ì±¬¿´ ²±²±°»®¿¬·²¹ ®»ª»²«»569,0464,101,6964,670,742 ×²½±³» ¾»º±®» ½¿°·¬¿´ ½±²¬®·¾«¬·±² ¿²¼ ¬®¿²º»® 286,874 3,138,036 3,424,910 Ý¿°·¬¿´ ½±²¬®·¾«¬·±²2,323,862 2,323,862 - Ì®¿²º»® ·² 398,575398,575 - Ì®¿²º»® ±«¬(238,577) (238,577) - Ý¸¿²¹» ·² ²»¬ ¿»¬2,372,1593,536,611 5,908,770 Ì±¬¿´ ²»¬ ¿»¬ô ¾»¹·²²·²¹ ±º §»¿® 15,363,78011,123,820 26,487,600 Ì±¬¿´ ²»¬ ¿»¬ô »²¼ ±º §»¿® $13,495,979$18,900,391$32,396,370 Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ò ¹ 39 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÌßÌÛÓÛÒÌ ÑÚ ÝßÍØ ÚÔÑÉÍ ÐÎÑÐÎ×ÛÌßÎÇ ÚËÒÜÍ ÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Ç Business-type Activities Enterprise Funds WaterAirporotal tT Cash flows from operating activities: Received from customers$2,669,835$218,703$2,888,538 Payments to suppliers(2,270,496)163,417(2,107,079) Payments to employees(931,762)(112,558)(1,044,320) Miscellaneous revenues276,15411,047 287,201 Net cash provided (used) by operating activites(256,269)280,609 24,340 Cash flows from noncapital financing activities Interfund borrowing1,642,798 -1,642,798 ransfers in398,575 398,575 T - ransfers out(238,577) T - (238,577) Net cash provided (used) for noncpaital and related financing activities(238,577)2,041,3731,802,796 Cash flows from capital and related financing activites Capital grants received2,364,453 -2,364,453 Development fees received459,620 459,620 - Principal paid on long-term deb(8,800) (8,800) t - Acquisition and construction(1,343,218) (5,414,670)(4,071,452) Net cash provided (used) for capital and related financing activities(892,398) (2,599,397)(1,706,999) Cash flows from investing activities Investment income107,949 407 108,356 Net cash provided by investing activities107,949 407 108,356 Net change in cash and cash equivalents(1,279,295)615,390 (663,905) Cash and cash equivalents, beginning of year2,046,592 - 2,046,592 Cash and cash equivalents, end of year$767,297$615,390$1,382,687 Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss)$(282,172)$(963,660)$(1,245,832) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation312,445561,599 874,044 Change in assets and liabilities: (Increase) decrease in accounts receivable, net(132,856)(2,786) (135,642) (Increase) decrease in prepaid assets(7,121)1,280 (5,841) Increase (decrease) in accounts payable(260,591)682,341 421,750 Increase (decrease) in accrued wages and benefits4,958(4,352)606 Increase (decrease) in due to other governments59,575 59,575 - Net cash provided (used) by operating activities$(256,269)$280,609$ 24,340 Ì¸» ²±¬» ¬± ¬¸» º·²¿²½·¿´ ¬¿¬»³»²¬ ¿®» ¿² ·²¬»¹®¿´ °¿®¬ ±º ¬¸· ¬¿¬»³»²¬ò 40 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ The financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing government accounting and financial reporting principles. ßòÎ»°±®¬·²¹ Û²¬·¬§ The Town of Marana, Arizona (the Town) was incorporated on March 21, 1977, under the provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town operates under a council-mayor form of government. All funds and entities related to the Town that are controlled by the Mayor and Council are included in the annual financial report. Control is determined on the basis of budget adoption, taxing authority, and the ability to significantly influence operations and accountability for fiscal matters. The Town provides a full range of services including general government, development and planning services, legal, public safety, public works, and parks and recreation services. In accordance with generally accepted accounting principles, these financial statements present the Town and its component units, the Town of Marana Municipal Property Corporation (MMPC), the Gladden Farms Community Facilities District (GFCFD), the Vanderbilt Farms Community Facilities District (VFCFD) and the Tangerine Farms Road Improvement District (TFRID). The MMPC, GFCFD, VFCFD and TFRID are blended with the Town in these financial statements as all four were established by the Town in order to fund the debt incurred to finance the purchase of the Town hall, various capital projects, and capital assets used by the water fund. In addition, the MMPC only provides services to the Town. The MMPC, GFCFD, VFCFD and TFRID component units each have a June 30 year- end and are included in the 1997 Bond, 2003 Bond, and 2004 Bond Debt Service Funds, the Gladden Farms Capital Projects and Debt Service Funds, the Vanderbilt Farms Capital Projects and Debt Service Funds, and the Other Capital Projects Funds, respectively. Separate financial statements of the MMPC, the GFCFD, the VFCFD and the TFRID are not prepared on a stand-alone basis. ÞòÞ¿· ±º Ð®»»²¬¿¬·±² The basic financial statements include both the government-wide statements and fund- based financial statements. The government-wide statements focus on the Town as a whole, while the fund-based statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the usefulness of the information. Ù±ª»®²³»²¬ó©·¼» Ú·²¿²½·¿´ Í¬¿¬»³»²¬ The government-wide financial statements (i.e. the statement of net assets and the statement of activities) present financial information about the Town as a whole. The reported information includes all of the activities of the Town and its component units. For the most part, the effect of internal activity has been removed from these statements. These statements are to distinguish between the governmentaland business-type activities 41 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ øÝ±²¬¼÷ of the Town. Governmental activitiesnormally are supported by taxes and intergovernmental revenues, and are reported separately from business-type activities, which are financed in whole or part by fees charged to external parties. The statement of activities demonstrates the degree to which the direct expenses of a given function of the Town’s governmental activities or segment of its business-type activities are offset by program revenues. Direct expensesare those that are clearly identifiable with a specific function or segment. The Town does not currently have an indirect cost allocation system. However, the General Fund does allocate administrative charges to the Enterprise funds to support general services used by those funds (line purchasing, accounting, administration, etc.) These fees are included in the expense column on the Statement of Activities. Program revenuesinclude 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes, investment income, and other items not included among program revenues are reported instead as general revenues. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water Utility and Airport funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Generally, the effect of interfund activity has been eliminated from the government-wide financial statements to minimize the double counting of internal activities. However, charges for interfund services provided and used are not eliminated if doing so would distort the direct costs and program revenues reported by the departments concerned. Ú«²¼ Ú·²¿²½·¿´ Í¬¿¬»³»²¬ Fund statements provide information about the Town’s funds, including blended component units. Separate statements are presented for the governmental and proprietary fund categories. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major funds. The Town reports the following major governmental funds: – This fund is the general operating fund of the Town. It is used to General Fund account for all financial resources, except those required to be accounted for in another fund. 42 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ øÝ±²¬¼÷ Highway Users Revenue Fund – This fund accounts for the maintenance and construction of roads, streets and highways as well as payment of debt service associated with road construction. – This fund accounts for the financing and construction South Benefit Area Impact Fees of the Twin Peaks Interchange Project. Transportation – This fund accounts for the financing and construction of transportation capacity improvement projects. Other Capital Projects Fund – This fund accounts for the financing and construction of roads and other infrastructure associated with other capital improvements as well as the Tangerine Farms Road Improvement District. The Town reports the following major proprietary funds: Water Fund – This fund is used to account for the financing and operation of the Water Utility. – This fund is used to account for the financing and operation of the Airport Fund Marana Airport. ÝòÓ»¿«®»³»²¬ Ú±½« ¿²¼ Þ¿· ±º ß½½±«²¬·²¹ The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned, including unbilled water services which are accrued, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized as revenue as soon all eligibility requirements imposed by the grantor or provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focusand the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be availablewhen they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service resources are provided during the current year for payment of long-term debt principal and interest due early in the following year (not to exceed one month) and, therefore, the expenditures and related liabilities have been recognized. Compensated absences are recorded only when payment is due. 43 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ øÝ±²¬¼÷ Sales taxes, licenses and permits, charges for services, and investment income associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not susceptible to accrual because generally they are not measurable until received in cash. The Town reports deferred revenue on its governmental funds balance sheet. Deferred revenues arise when potential revenue does not meet the “measurable” and “available” criteria for recognition in the current period. Receivables that will not be collected within the available period have also been reported as deferred revenue on the governmental fund financial statements. In subsequent periods, when both the revenue recognition criteria are met, or when the Town has the legal claim to the resources, the liability for deferred revenue is removed from the governmental funds balance sheet and revenue is recognized. Proceeds of long-term debt and acquisitions under capital lease agreements are reported as other financing sources. When both restricted and unrestricted resources are available for use, it is the Town's policy to use restricted resources first, then unrestricted resources as they are needed. Additionally, the Town funds certain programs by a combination of grants and general revenues. The Town applies grant resources to such programs before using general revenues. The Town as adopted GASB Statement No. 20, “Accounting and Financial Reporting for Proprietary Fund and Other Governmental Entities That Use Proprietary Accounting” for its business-type activities and enterprise funds. The Town has elected to apply all applicable GASB pronouncements as well as Financial Accounting Standards Board (“FASB”) Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins issued prior to December 1, 1989, to the extent that those standards do of not conflict with or contradict guidance of the GASB. Governments also have the option following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The Town has elected not to follow subsequent private-sector guidance. ÜòÝ¿¸ ¿²¼ Ý¿¸ Û¯«·ª¿´»²¬ For the purposes of the statement of cash flows, the Town considers all highly liquid investments (including the funds' participation in the investment pool account, and appropriate restricted assets) to be cash equivalents. Individual fund investments with a maturity of three months or less when purchased are considered as cash equivalents. 44 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ øÝ±²¬¼÷ Ûò×²ª»¬³»²¬ Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s Local Government Investment Pool, interest-bearing savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; bonds or other obligations of the U.S. government that are guaranteed as to principal and interest by the U.S. government; and bonds of the State of Arizona counties, cities, towns, school districts, and special districts as specified by statue. The State Board of Investment provides oversight for the State Treasurer’s pools. The fair value of a participant’s position in the pool approximates the value of that participant’s pool shares Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and participating interest contracts with a remaining maturity of one year or less at time of purchase are stated at amortized cost. All investments are stated at fair value. ÚòÎ»¬®·½¬»¼ ß»¬ The trust indentures executed for the entire bond series issued require all cash and investments for each bond series to be held on deposit by the trustee/fiscal agents. These assets are restricted for payment of interest and trustee fees associated with the bond issues, retirement of principal balances, and to finance various capital projects. In addition, the State of Arizona required that assets obtained at the completion of criminal proceedings by the Town's police department be given to Pima County for custodial purposes. These assets are restricted for expenses that will enhance the Town's ability to conduct police investigations. ÙòÐ®»°¿·¼ ×¬»³ Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Prepaid items are recorded as expenses when consumed in the government-wide financial statements. Prepaid items are recorded as expenditures when purchased in the fund financial statements and are offset by a reserve of fund balance. ØòÎ»½»·ª¿¾´» ¿²¼ Ð¿§¿¾´» Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All trade and other receivables are shown net of an allowance for uncollectible amounts. 45 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ øÝ±²¬¼÷ ×ò×²¬»®º«²¼ ß½¬·ª·¬§ Flows of cash from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund statements are reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses in proprietary funds. ÖòÝ¿°·¬¿´ ß»¬ Capital assets, including public domain infrastructure such as roads, bridges, curbs and sidewalks, lighting system, water distribution system and other assets that are immovable and of value to the Town, are defined as assets with an initial individual cost of $5,000 or more and an estimated useful life of more than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are valued at estimated fair value on the date donated. Capital assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. No long-term assets or depreciation are shown in the governmental funds financial statements. The Town has chosen not to apply the modified approach to any network, system, or subsystem of infrastructure assets. The cost of normal maintenance and repairs that do not significantly add to the value of the asset or materially extend the life of the asset are not capitalized. Major improvements are capitalized and depreciated over the remaining useful life of the related capital assets. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets is included as part of the capitalized value of the assets constructed. In a prior period, the Town has retroactively reported the Town’s general infrastructure assets as by GASB 34, GASB 34 required the Town to report infrastructure assets acquired prior to July 1, 2002 within five years of that date. The effect of this change was to report and depreciate general infrastructure assets (e.g. roads, bridges, sidewalks, and similar items) acquired by the Town from July 1, 1980 to June 30, 2002. 46 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ øÝ±²¬¼÷ Depreciation is provided over the estimated useful lives of such assets using the straight- line method. These estimated useful lives are as follows. Years Buildings 40 Building improvements 10-15 Pump stations, distribution systems, equipment and improvements 45-75 Public domain infrastructure 20-50 Machinery, equipment, and assets under capital lease 4-10 ÕòÔ±²¹ó¬»®³ Ñ¾´·¹¿¬·±² In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable business-type activities and proprietary fund type statement of net assets. Bond related charges and credits, such as premium discounts and issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. ÔòÝ±³°»²¿¬»¼ ß¾»²½» The Town's employee vacation and sick leave policies generally provide for granting vacation and sick leave with pay. Vacation leave vests with the employee as it is earned. The current and long-term liabilities for accumulated vacation, including related benefits, are reported on the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee leave, resignations, and retirements. Sick leave benefits provided for ordinary sick pay are not vested with the employees. Generally, resources from the General Fund are used to pay for compensated absences. ÓòÌ®¿²¿½¬·±² Þ»¬©»»² Ú«²¼ Transactions that would be treated as revenue or expenses if they involved organizations external to the governmental unit are accounted for as revenue or expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenses initially made from that fund which are properly applicable to another fund are recorded as expenses in the reimbursing fund and as reductions of the expense in the fund that is reimbursed. 47 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ï ó ÍËÓÓßÎÇ ÑÚ Í×ÙÒ×Ú×ÝßÒÌ ßÝÝÑËÒÌ×ÒÙ ÐÑÔ×Ý×ÛÍ øÝ±²¬¼÷ Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund statements are reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses in proprietary funds. ÒòÚ«²¼ Û¯«·¬§ In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for expenditures or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. ÑòË» ±º Û¬·³¿¬» The preparation of financial statements in conformity with generally accepted accounting principles accepted in the United States of America requires management to make estimates and assumptions. This will affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. ÐòÍ»·¦»¼ Ð®±°»®¬§ 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. ÒÑÌÛ î ó ÍÌÛÉßÎÜÍØ×Ðô ÝÑÓÐÔ×ßÒÝÛ ßÒÜ ßÝÝÑËÒÌßÞ×Ô×ÌÇ – At June 30, 2008, the MANTIS Special Revenue Fund ×²¼·ª·¼«¿´ Ü»º·½·¬ Ú«²¼ Þ¿´¿²½» had a deficit fund balance of $88,090; the Vehicle Theft Task Force Special Revenue Fund had a deficit fund balance of $6,872; PAG Capital Projects Fund had a deficit fund balance of $2,923,983; the Other Capital Projects Fund had a deficit balance of $1,930,026; Pima County Bond Capital Fund, a non-major governmental fund reported a deficit of $823,884 in fund balance; and Other Debt Service had a deficit balance of $9,150. Deficit balances in the MANTIS and Vehicle Theft Task Force Special Revenue Funds are projected to be eliminated in fiscal year 2008-2009 through transfers from the general fund. All other funds with deficit fund balances account for the activity of cost/reimbursement programs. The deficits are as a result of the timing difference between the expenditures and the receipt of reimbursement. The Town expects reimbursement for these expenditures early in fiscal year 2008-09 which are expected to eliminate the deficits. 48 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ í ó ÞËÜÙÛÌßÎÇ ÝÑÒÌÎÑÔ Û¨½» Û¨°»²¼·¬«®» Ñª»® Þ«¼¹»¬ – At June 30, 2008, the Town had expenditures in funds that exceeded the budget; however, this does not constitute a violation of any legal provisions. The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation that is applicable to all local governments. This limitation, based on expenditures of the 1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in population and inflation. Certain expenditures are held to be excludable. The limitation is set by the State Economic Estimates Commission prior to April 1 of each year for the following fiscal year. As allowed, the voters of the Town of Marana, on May 17, 2005, approved an alternative expenditure limitation - home rule option to be applicable to the Town. This alternative expenditure limitation is free from any ties to the state imposed limitations and is in effect for four consecutive years beginning with the fiscal year ended June 30, 2006. This limitation provides for the Town to allow the Mayor and Council to adopt an annual expenditure limitation each year with no expenditures held to be excludable. Therefore, the annual expenditure limitation equals the adopted budget. The Town establishes its fiscal year as the twelve-month period beginning July 1. The departments submit to the Town manager a budget of estimated expenditures for the ensuing fiscal year. The Town manager and each department head meet to discuss mutually acceptable changes for the estimated expenditures for that department after which the Town manager subsequently submits a budget of estimated expenditures and revenues to the Town Council. Upon receipt of the budget estimates, the Town Council will hold a public meeting to obtain taxpayer comments. Concurrently, a copy of the budget estimates is published in a local newspaper. The Town Council is prevented from legally enacting the budget through passage of a resolution until 15 days have passed after the date of the public meeting. Prior to July 1, the budget is legally enacted. The Town Council formally adopts the budget and legally allocates the available monies for the General Fund, the Highway User Revenue Fund, the Local Transportation Assistance Fund, the M.A.N.T.I.S. Fund, the H.I.D.T.A Fund, the Vehicle Theft Task Force Fund, the Community Development Block Grant Fund, the Affordable Housing Revolving Fund, the Local JCEF Fund, the Local Technology Enhancement Fund, the Fill the Gap Fund, the RICO Fund, the Other Grants and Contributions Fund, the Other Debt Service Fund, the Transportation Fund, the ½ Cent Sales Tax Fund, the Impact Fee Funds, the Other Capital Projects Funds and the Tangerine Farms Improvement District Fund. The enterprise funds, Water Department and Airport Authority, are subject to flexible budgets. The Town manager is authorized to transfer budgeted amounts within any department or any fund; however, any revisions that reallocate budgeted amounts from the budget line items labeled "contingency" must be approved by the Town Council. 49 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ì ó ÝßÍØ ßÒÜ ×ÒÊÛÍÌÓÛÒÌÍ A.R.S. authorize the Town to invest public monies in the State Treasurer’s local government investment pools, the County Treasurer’s investment pool, interest-bearing savings accounts, certificates of deposit, and repurchase agreements in eligible depositories; bonds or other obligations of the U.S. government that are guaranteed as to principal and interest by the U.S. government; and bonds of the State of Arizona counties, cities, towns, school districts, and special districts as specified by statute. The statutes do not include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk, or foreign currency risk for the Town’s investments. The State Board of Investment provides oversight for the State Treasurer’s pools. At June 30, 2008, the carrying amount of the Town’s deposits was $2,487,170, and the bank balance was $6,206,479. The differences between the book and bank balances are due to timing of certain transactions like deposits in transit and outstanding checks. Of the bank balance, $600,000 was covered by Federal depository insurance, $5,606,479 was covered by collateral; no portion of the balance was uninsured and uncollateralized. At June 30, 2008, the Town’s investments consisted of the following. Investment Maturities (in Years) ×²ª»¬³»²¬ Ì§°» Fair Value Less than 1 1-5 Money Market Investments $ 969,009 $ 969,009$ - U.S. Treasuries 1,211,302 1,211,302 - U.S. Agencies 16,916,108 9,723,9487,192,160 $ 11,904,259$ 7,192,160 State Treasurer’s investment pool 510,024,150 78 days average maturities State Treasurer’s investment pool 712,810,203 50 days average maturities $41,930,772 . The Town does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. . The Town has no investment policy that would further limit its investment choices. As of June 30, 2008, the Town’s investment in the State Treasurer’s investment pool did not receive a credit quality rating from a national rating agency. The Town’s investments in U.S. Agencies were rated Aaa by Moody’s Investors Service and AAA by Standard & Poor’s. The Town’s investment in the State Treasurer’s investment pool represents a proportionate interest in the pool’s portfolio; however, the Town’s portion is not identified with specific investments and is not subject to custodial credit risk. 50 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ì ó ÝßÍØ ßÒÜ ×ÒÊÛÍÌÓÛÒÌÍ ø½±²¬¼÷ . The Town places no limit on the amount it may invest in any one issuer. More than 5 percent of the Town’s investments are in U.S. Agencies. These investments are 40% of the Town’s total investments. ÒÑÌÛ ë ó ÎÛÝÛ×ÊßÞÔÛÍ Other receivables, net of allowance for uncollectibles, as of year end for the Town’s individual major funds and non-major governmental funds in the aggregate, are as follows. ou Sth Benefit Highway Area Users Non-Major Transportation Impact Revenue Other Capital Governmental Total General FundFundFeesFundProjects FundFundsReceivables Taxes receivable$ -$ -$ 1,659$ 1,659 $ -$ -$ - - - 117,258 Accounts receivable 103,298 - - 13,960 29,193 18,133 213,166 Interest receivable 78,182 60,310 - 27,348 6,836,802 Due from other governments3,369,906 1,506,075 164,857- 1,752,403 13,630,043 - 9,589,737 Due from other funds 9,416,860 172,877 - - - $ 23,551,863 Net total receivables$ 12,968,246$ 1,739,262$6,854,935$ 1,795,370 $ 2 9,193$ 1 64,857 Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue reported in the governmental funds were as follows. Deferred revenue Unavailable Program revenues – General Fund $ 31,309 Developer deposits held by Town – General Fund 327,427 Developer deposits held by Town - Non-Major governmental funds 531,862 Funds due from Federal Government – Twin Peaks Project2,349,755 Funds due from Pima Association of Governments – Silverbell Road 1,250,260 Total deferred revenue $ 4,490,613 51 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ê ó ÝßÐ×ÌßÔ ßÍÍÛÌÍ The following is a summary of the changes in capital assets for fiscal year ended June 30, 2008. Beginning Ù±ª»®²³»²¬¿´ ß½¬·ª·¬·»BalanceAdditionsDeletionsEnding Balance Capital assets, not being depreciated: Land$ 3,491,030$ -$ 3,491,030-$ Construction in progress32,590,723 1,690,20450,787,787 81,688,306 otal capital assets, not being depreciated36,081,753 50,787,787 1,690,204 85,179,336 T Capital assets, being depreciated: Buildings and improvements41,786,107 307,976 42,046,537 47 ,546 Machinery, equipment, and other assets15,634,3831,500,17533,932 17,100,626 Infrastructure 1,885,118157,187,070159,017,599 54,589 otal capital assets being depreciated 3,693,269214,607,560218,164,762 T 136,067 Less accumulated depreciation for: Buildings and improvements(3,799,422)(1,261,591) (5,061,013)- Machinery, equipment, and other assets(8,507,539)(2,683,140) (8,483)(11,182,196) Infrastructure (6,017,645)(31,405,215) (37,422,860)- otal accumulated depreciation (9,962,376)(43,712,176) (8,483) (53,666,069) T Total capital assets, being depreciated, net170,895,384 (6,269,107)127,584164,753,861 Governmental activities capital assets, net $206,977,137$44,518,680$1,817,788$249,678,029 Governmental activities depreciation expense was charged to function/programs as follows. Governmental Activities: $ 1,781,877 General government 43,206 Economic and community development 1,231,185 Public safety 6,274,979 Highways and streets 26,168 Health and welfare 604,961 Culture and recreation $ 9,962,376 Total depreciation expense – governmental activities 52 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ê ÝßÐ×ÌßÔ ßÍÍÛÌÍ øÝ±²¬¼÷ A summary of changes in capital assets for business-type activities is as follows. Beginning Þ«·²»ó¬§°» ß½¬·ª·¬·»BalanceAdditionsDeletionsEnding Balance Capital assets, not being depreciated: Land$ 221,810$1,393,114$ 1,614,924-$ Water rights 543,696 - 543,696 - Construction in progress 6,232,398 4,257,666 3,498,7486,991,316 otal capital assets, not being depreciated6,997,904 5,650,780 5,657,3686,991,316 T Capital assets, being depreciated: Buildings and improvements 21,826,244 8,929,321 30,755,565 - Machinery, equipment, and other assets 398,976 5,083 - 404,059 Infrastructure 54,737 - 15,349 39,388 otal capital assets being depreciated 22,279,957 8,934,404 15,349 31,199,012 T Less accumulated depreciation for: Buildings and improvements (3,496,526) (794,680) (4,291,206)- Machinery, equipment, and other assets(227,613) (78,379) - (305,992) Infrastructure (32,091) (985) (15,349) (17,727) otal accumulated depreciation (874,044)(3,756,230) (15,349) (4,614,925) T otal capital assets, being depreciated, net18,523,727 8,060,360 26,584,087- T Business-type activities capital assets, net $ 25,521,631$13,711,140$6,991,316$ 32,241,455 Business-type depreciation expense was charged to functions/programs as follows. Business-type Activities: Water $ 312,445 Airport561,599 Total depreciation expense – business-type activities $ 874,044 ÒÑÌÛ é ÔÑÒÙóÌÛÎÓ ÜÛÞÌ ßòÒ±¬» Ð¿§¿¾´» In September 2005, the Town received a $7,000,000 loan from the Arizona Department of Transportation (ADOT) through the Highway Expansion and Extension Loan Program (HELP) to help fund costs related to the Thornydale Road reconstruction. 53 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ é ÔÑÒÙóÌÛÎÓ ÜÛÞÌ øÝ±²¬¼÷ The following is a schedule by years of the debt service requirements for the loan as of June 30, 2008. Year ending June 30: Principal Interest Total 2009 $ 1,000,000 $ 47,747 $1,047,747 2010 900,000 22,617 922,617 Total $ 1,900,000 $ 70,364$1,970,364 ÞòÝ±³³«²·¬§ Ú¿½·´·¬·» Ü·¬®·½¬ øÝÚÜ÷ Ù»²»®¿´ Ñ¾´·¹¿¬·±² Þ±²¼ Gladden Farms Community Facilities District (a component unit) issued general obligation bonds for infrastructure improvements. The CFD general obligation bonds outstanding as reported in governmental activities as of June 30, 2008, were as follows. Outstanding June 30, 2008 $2,105,000 CFD General Obligation Bonds, 2004 Series, due in annual installments of $45,000 to $165,000; through July 15, 2029; at a 5.0% to 6.5% interest rate. $ 2,060,000 $3,250,000 CFD General Obligation Bonds, 2006 Series, due in annual installments of $70,000 to $395,000; through July 15, 2031; at a 4.9% to 5.5% interest rate. 3,250,000 $3,075,000 CFD General Obligation Bonds, 2007 Series, due in annual installments of $60,000 to $605,000; through July 15, 2032; at a 4.4% to 5.45% interest rate. 3,075,000 Total $ 8,385,000 Annual debt service requirements to maturity on the CFD general obligation bonds at June 30, 2008, are summarized as follows. 54 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ é ÔÑÒÙóÌÛÎÓ ÜÛÞÌ ø½±²¬¼÷ Year Ending June 30: PrincipalInterest Total 2009$ 50,000$ 460,550 $ 640,550 2010180,000455,015645,015 2011190,000446,194646,194 2012200,000436,860641,860 2013205,000427,108642,108 2014-181,205,0001,959,6883,229,688 2019-231,565,0001,585,3813,240,381 2024-282,065,0001,072,1513,252,151 2029-322,725,000392,3912,632,391 Total$ 8,385,000$7,235,338$15,570,338 ÝòÌ¿²¹»®·²» Ú¿®³ Î±¿¼ ×³°®±ª»³»²¬ Ü·¬®·½¬ ×³°®±ª»³»²¬ Þ±²¼ Tangerine Farms Road Improvement District (a component unit) issued special assessment bonds for infrastructure improvements. The Town is required to cover delinquencies with other resources until foreclosure proceeds are received. The TFRID special assessment bonds outstanding as reported in governmental activities as of June 30, 2008, were as follows. Outstanding June 30, 2008 $25,774,000 TFRID Special AssessmentBonds, due in annual installments of $951,000 to $2,043,000; through January 1, 2026; at an interest rate of 4.6%. $ 25,774,000 Total $ 25,774,000 Annual debt service requirements to maturity on the TFRID special assessment bonds at June 30, 2008, are summarized as follows. Year Ending June 30: PrincipalInterest Total 2009$ 951,000$ 1,163,731$ 2,114,731 2010995,0001,118,973 2,113,973 20111,040,0001,072,168 2,112,168 20121,088,0001,023,224 2,111,224 20131,138,000972,0262,110,026 2014 – 18 6,527,0004,005,611 10,532,611 2019 – 23 8,172,0002,322,08010,494,080 2024 – 26 5,863,000412,6436,275,643 Total$ 25,774,000$12,090,456$37,864,456 55 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ é ÔÑÒÙóÌÛÎÓ ÜÛÞÌ ø½±²¬¼÷ ÜòÎ»ª»²«» Þ±²¼ The Town has issued revenue bonds for acquiring water systems, infrastructure upgrades, the design and construction of the new municipal complex and to refund prior issuances. These bonds are payable solely from the excise taxes collected by the Town. The revenue bonds outstanding as reported in governmental activities as of June 30, 2008 were as follows. Outstanding June 30, 2008 $8,175,000 Revenue Bonds, 1997 Series, due in bi- annual installments of $100,000 to $300,000; through July 1, 2022; at a 4.6% to 5.25% interest rate. $ 3,625,000 $19,700,000 Revenue Bonds, 2003 Series, due in bi- annual installments of $260,000 to $665,000; through July 1, 2028; at a 2.0% to 5.0% interest rate.17,845,000 $8,675,000 Revenue and Refunding Bonds, 2004 Series, due in bi-annual installments of $130,000 to $320,000; through July 1, 2028; at a 3.0% to 5.25% interest rate. 7,770,000 Total $ 29,240,000 Annual debt service requirements to maturity on revenue bonds at June 30, 2008, are summarized as follows. Year ending June 30: Principal Interest Total 2009 $ 1,055,000 $ 1,363,763 $ 2,418,763 2010 1,075,000 1,327,431 2,402,431 2011 1,210,000 1,285,643 2,495,643 2012 1,270,000 1,234,684 2,504,684 2013 1,220,000 1,184,346 2,404,346 2017 – 23 7,615,000 5,488,479 13,103,479 2023 – 27 9,365,000 3,215,479 12,580,768 2027 – 28 6,430,000 9,990,667 16,330,667 Total $ 29,240,000 $ 25,000,783 $ 54,240,783 56 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ é ÔÑÒÙóÌÛÎÓ ÜÛÞÌ ø½±²¬¼÷ ÛòÎ»ª»²«» Þ±²¼ In prior years, the Town defeased certain bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Town’s governmental activities column of the statement of net assets. At June 30, 2008, $4,900,000 of bonds outstanding is considered defeased. ÚòÝ¿°·¬¿´ Ô»¿» In February 2006, the Town entered into a 5-year lease agreement with National Bank of Arizona to acquire a road grader. Quarterly payments of $11,174 began effective June 1, 2006 and will continue through March 31, 2011, with an annual interest of 4.1% for the term of the agreement. Over the length of the loan, $23,028 will be applied to interest, $200,446 to principal. The road grader has been capitalized at the present value of the future minimum lease payment as of the date of its inception. The book value of this capital lease is calculated as such: Lease Purchase Price $200,446 Less Accumulated Depreciation ($80,178) Book Value of Capital Lease $120,268 Annual debt service requirements for this capital lease as of June 30, 2008 are summarized below: Year ending June 30: Principal Interest Total 2009 $ 40,515 $ 4,180 $ 44,695 2010 42,227 2,468 44,695 2011 32,836 685 33,521 Total $ 115,578 $ 7,333 $ 122,911 57 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ é ÔÑÒÙóÌÛÎÓ ÜÛÞÌ øÝ±²¬¼÷ The following is a summary of changes in long-term debt activity for fiscal year ended June 30, 2008. BeginningDue Within Ending Balance Balance Additions Reductions One Year Ù±ª»®²³»²¬¿´ ¿½¬·ª·¬·»æ General obligation bonds $ 5,355,000$ 3,075,000$ 45,000$ 8,385,000 $ 50,000 Revenue bonds 30,460,000 - 1,220,00029,240,000 1,055,000 Compensated absences 741,765932,872748,295926,342741,074 Notes payable 2,900,000 - 1,000,0001,900,0001,000,000 Special assessment bonds 25,774,000 - - 25,774,000951,000 Capital lease 154,438 - 38,860115,57840,515 $ 65,385,203$ 4,007,872$ 3,052,155$ 66,340,920$ 3,837,589 Ì±¬¿´ Þ«·²»ó¬§°» ¿½¬·ª·¬·»æ Compensated absences $ 34,340 $ 61,162 $ 31,306$ 64,196$ 51,357 Note payable 8,800 - 8,800 - - $ 43,140$ 61,162$ 40,106$ 64,196$ 51,357 Ì±¬¿´ ÒÑÌÛ è ×ÒÌÛÎÚËÒÜ ÎÛÝÛ×ÊßÞÔÛÍô ÐßÇßÞÔÛÍô ßÒÜ ÌÎßÒÍÚÛÎÍ Ü«» ¬±ñº®±³ ±¬¸»® º«²¼æ At June 30, 2008, several funds were involved in interfund borrowing arrangements with the General Fund and Transportation Fund due to insufficient resources available in the funds to cover expenditures. Through the fiscal year 2008-2009, these interfund borrowing will be eliminated as sufficient resources become available. Listed below is a summary of the intefund borrowing transactions. Due From Non-Major Other Capital GovernmentalBusiness-Type Due To ProjectsFundsActivities Total $ 3,665,572$ 3,606,450 $ 2,144,838$ 9,416,860 General Fund - 172,877 - 172,877 Transportation Fund $ 3,665,572$ 3,779,327$ 2,144,838 $ 9,589,737 Total 58 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ è ×ÒÌÛÎÚËÒÜ ÎÛÝÛ×ÊßÞÔÛÍô ÐßÇßÞÔÛÍô ßÒÜ ÌÎßÒÍÚÛÎÍ øÝ±²¬¼÷ ×²¬»®º«²¼ ¬®¿²º»®æ Interfund transfers were made by the Town during the fiscal year to ensure that sufficient resources were available to cover expenditures in the applicable funds. These were direct transfers between funds and will not be eliminated as sufficient resources become available in the receiving funds. Listed below is a summary of transfers between funds. Transfers In Non-MajorBusiness- Type Governmental Transfer Out FundsActivities Total General Fund $ 1,698,188$ 398,575 $ 2,096,763 Other Capital Projects Fund 2,258,481 - 2,258,481 Water Fund 238,577 - 238,577 Total$ 4,195,246 $ 398,575 $ 4,593,821 ÒÑÌÛ ç ó ÛÓÐÔÑÇÛÛ ÎÛÌ×ÎÛÓÛÒÌ ÍÇÍÌÛÓÍ All full-time and permanent part-time employees participate in one of four different retirement plans. With the exception of public safety personnel, police dispatchers and elected officials, all other employees participate in the Arizona State Retirement System (ASRS). Certified public safety personnel participate in the Public Safety Retirement Systems (PSPRS). Police dispatch and communication staff participates in the Corrections Officer Retirement Plan (CORP). The Town’s Mayor and Council Members participated in the Elected Officials’ Retirement Plan (EORP). ßò Ð«¾´·½ Í¿º»¬§ Ð»®±²²»´ Î»¬·®»³»²¬ Í§¬»³ All of the Town's full-time police officers are covered by the Marana Police Arizona Public Safety Personnel Retirement System, which is an agent/multiple-employer administered by the fund manager of the Arizona Public Safety Personnel Retirement System, defined benefit public employee retirement system (PERS). Authority to establish and amend the benefit provisions of this pension plan is established by Arizona State statute. The State of Arizona Public Safety Personnel Retirement System issues a publicly available financial report that includes financial statements and required supplemental information for the Marana Marshal's plan. This report may be obtained by writing to the Arizona Public Safety Personnel Retirement System 1020 E. Missouri Phoenix, Arizona 85014. The contribution requirements of plan members are established and may be amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required employee contribution rate was 7.65%; the Town’s contribution rate was 10.5%. As of June 30, 2008, the Town had contributed all required amounts; no contributions were left unfunded. 59 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ç ó ÛÓÐÔÑÇÛÛ ÎÛÌ×ÎÛÓÛÒÌ ÍÇÍÌÛÓÍ øÝ±²¬¼÷ Total contributions made during fiscal year 2007-08 were $836,566, of which $484,001 was made by the Town and $352,565 was made by police officers. The pension contributions represent funding for normal cost and the amortization of the unfunded actuarial accrued liability. The Town’s pension cost for the year ending June 30, 2008, the date of the most recent actuarial valuation and related information are summarized as follows: Contribution rates: Town 10.5% Plan member 7.65% Annual pension cost $836,566 Contributions made $836,566 Actuarial valuation date 6/30/2008 Actuarial cost method Projected unit credit Actuarial assumptions Investment rate of return 8.5% Projected salary increases 5.5% to 8.5% Post-retirement benefit increase Based on Investment Income Amortization method Level percent closed for unfunded actuarial accrued liability, open for excess Remaining amortization period 29 years for unfunded actuarial accrued liability, 20 years for excess Asset valuation method Smoothed market value Ì®»²¼ ×²º±®³¿¬·±² Annual Pension PercentNet Pension Fiscal Year Ended June 30, Cost (APC) Contributed Obligation 2008 $483,724 100.0 - 0- 2007 $386,239 100.0 - 0- 2006 $347,042 100.0 - 0- ÍÝØÛÜËÔÛ ÑÚ ÚËÒÜ×ÒÙ ÐÎÑÙÎÛÍÍ (6) Unfunded (2)AAL as a (1)Entry Age (3)(5)Percentage (4) ActuarialActuarialPercentAnnualof Covered Valuation Unfunded Payroll Value of Accrued FundedCovered Date June 30 AssetsLiability (AAL)(1)/(2)AAL (2)-(1)Payroll(4)/(5) $2,416,049 2008 $9,429,944 $11,845,993 79.6 $4,822,869 50.1% $3,758,919 2007 $8,392,338 $12,151,257 69.1 $4,104,462 91.6% $1,749,995 2006 $7,603,870 $9,353,865 81.3 $3,886,273 45.0% 60 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ç ó ÛÓÐÔÑÇÛÛ ÎÛÌ×ÎÛÓÛÒÌ ÍÇÍÌÛÓÍ øÝ±²¬¼÷ Þò ß®·¦±²¿ Í¬¿¬» Î»¬·®»³»²¬ Í§¬»³ On July 11, 2007 the Town moved from the Money Purchase Retirement Plan and Trust defined contribution plan administered by the International City Management Association to the Arizona State Retirement System (ASRS) defined benefit plan, a multiple-employer, cost-sharing plan. The ASRS is governed by the Arizona State Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 2. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. ASRS issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at ASRS, 3300 N. Central Avenue, P.O. Box 33910, Phoenix, Arizona 85012-3910 or by calling 602-240-2000 or 1-800-621-3778. All full-time and permanent part-time employees not in the Public Safety Retirement System, Corrections Officers Retirement System or Elected Officials Retirement System are eligible to participate. The contribution requirements of plan members are established and maybe amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required contribution rate of members was 9.6%; the Town’s contribution rate was 9.6%. As of June 30, 2008, the Town had contributed all required amounts; no contributions were left unfunded. The Town's total payroll in fiscal year 2007-08 was $22,888,487. The Town's contributions were calculated using the earnings amount of $10,744,553. For fiscal 2007-08, the covered employees made the required contribution, amounting to $1,031,477, with the Town making a contribution amounting to $1,031,477 for a total of $2,062,954. Ýò Ý±®®»½¬·±² Ñºº·½»® Î»¬·®»³»²¬ Ð´¿² All full-time and permanent part-time employees employed as police dispatchers or communications operators are eligible to participate in the Corrections Officers Retirement Plan (CORP), a multiple-employer, cost-sharing plan. The CORP is governed by the Corrections Officers Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 6. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. CORP issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at CORP, 3300 N. Central Avenue, P.O. Box 33910, Phoenix, Arizona 85012-3910 or by calling 602-240-2000 or 1-800-621-3778. The contribution requirements of plan members are established and maybe amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide 61 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ç ó ÛÓÐÔÑÇÛÛ ÎÛÌ×ÎÛÓÛÒÌ ÍÇÍÌÛÓÍ øÝ±²¬¼÷ assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required contribution rate of members was 5.0%; the Town’s contribution rate was 7.96%. The Town’s contributions to CORP for the fiscal years ended June 30, 2008, 2007 and 2006 were $73,818, $63,740 and $65,603, respectively, which were equal to the required contributions for those years. Üò Û´»½¬»¼ Ñºº·½·¿´ Î»¬·®»³»²¬ Ð´¿² The Town’s Mayor and Council Members are eligible to participate in the Elected Officials’ Retirement Plan (EORP), a multi-employer, cost-sharing plan. The EORP is governed by the Public Safety Retirement System Board according to the provisions of A.R.S. Title 38, Chapter 5, Article 3. Benefits are established by state statute and generally provide retirement, death, long-term disability, survivor, and health insurance premium benefits. EORP issues a publicly available report that includes financial statements and required supplementary information. The report may be obtained in writing at EORP, 3300 N. Central Avenue, P.O. Box 33910, Phoenix, Arizona 85012-3910 or by calling 602-240-2000 or 1-800-621-3778. The contribution requirements of plan members are established and maybe amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. For the fiscal year ending June 30, 2008, the required contribution rate of members was 7.0%; the Town’s contribution rate was 20.21%. The Town’s contributions to EORP for the fiscal years ended June 30, 2008, 2007 and 2006 were $19,971, $16,101 and $18,803, respectively, which were equal to the required contributions for those years. ÒÑÌÛ ïð ó Î×ÍÕ ÓßÒßÙÛÓÛÒÌ The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Town's insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the Town is a participating member. The limit for basis coverage is for $2,000,000 per occurrence on a claims made purpose. Excess coverage is for an additional $13,000,000 per occurrence on a follow form, claims made basis. The Arizona Municipal Risk Retention Pool is structured such that member premiums are based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected financial obligations. The pool has the authority to assess its members additional premiums should reserves and annual premiums be insufficient to meet the pool's obligations. 62 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ïð ó Î×ÍÕ ÓßÒßÙÛÓÛÒÌ øÝ±²¬¼÷ The Town continues to carry commercial insurance for all other risks of loss, including workers’ compensation and employee health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. ÒÑÌÛ ïï ó ÝÑÓÓ×ÌÓÛÒÌÍ ßÒÜ ÝÑÒÌ×ÒÙÛÒÝ×ÛÍ The Town is subject to a number of lawsuits, investigations, and other claims (some of which involve substantial amounts) that are incidental to the ordinary course of its operations, including those related to wrongful death and personal injury matters. Although the Town Attorney does not currently possess sufficient information to reasonably estimate the amounts of the liabilities to be recorded upon the settlement of such claims and lawsuits, some claims could be significant to the Town’s operations. While the ultimate resolution of such lawsuits, investigations, and claims cannot be determined at this time, in the opinion of Town management, based on the advice of the Town Attorney, the resolution of these matters will not have a material adverse effect on the Town’s financial position. Ì±©² ±º Ó¿®¿²¿ ªò Ð·³¿ Ý±«²¬§ The Town has filed suit against Pima County in Superior Court seeking declaratory and injunctive relief on the issue of whether the Town owns the sewer facilities within the Town boundaries pursuant to an Intergovernmental Agreement the Town entered into with Pima County in 1979. As of June 30, 2008, the case was still pending and the issues of ownership of a treatment plant and affected sewer lines were still unresolved. Neither party seeks monetary damages from the other; however, there may be entitlement of attorneys’ fees by the prevailing party. Í·¹²·º·½¿²¬ Ý±²¬®¿½¬«¿´ Ý±³³·¬³»²¬ At the end of fiscal year 2008, the Town was obligated to $24.8 million in significant contractual commitments for transportation, park and airport related construction projects. Silverbell Road Improvements, Ina Road to Cortaro Road, accounted for $14.5 million in commitments. Thornydale Road Improvements, Orange Grove to the CDO Wash; accounted for $5.5 in commitments. Other transportation related projects accounted for $3.2 million; other parks system related and airport construction projects accounted for $1.6 million. 63 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ïî ó ÔÛßÍ×ÒÙ ßÎÎßÒÙÛÓÛÒÌÍ ß·®°±®¬ The Airport Authority, an Enterprise Fund, leases part of the airport to local Marana businesses under non-cancelable operating leases requiring fixed and contingent rentals based on aviation fuel dispensed on the premises. The following is a schedule of future minimum rentals receivable under these leases at June 30, 2008, not including any year beyond the minimum of twenty years in the lease for the general fund and not including renewal options for the leases for the Airport Authority. Year Ending June 30: Airport 2009 $ 155,529 2010 173,628 2011 173,711 2012 174,342 2013 174,428 2014 – 18 882,704 2019 – 23 1,057,896 2024 – 28 1,068,280 2029 – 33 1,143,416 2034 – 38 1,447,190 2039 – 43 1,847,019 2044 – 48 2,357,317 Total $10,655,460 64 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ïî ó ÔÛßÍ×ÒÙ ßÎÎßÒÙÛÓÛÒÌÍ øÝ±²¬¼÷ Ô¿²¼ Í¬¿¬» ±º ß®·¦±²¿ The Town has assigned and assumed a non-cancelable long-term operating lease for 2,400 acres of land with the State of Arizona with an expiration of October 2099. This lease had an initial annual rent of $432,000 that requires 10% increases in the annual rent payments for each succeeding five year period. In conjunction with the Town assuming the long-term operating lease, a developer has signed a non-cancelable agreement to reimburse the Town the annual rental payment for a minimum of twenty years. This non-cancelable twenty year term begins after the first twelve consecutive months generate more than $1,000,000 in resort sales tax to the Town from the development project known as "Dove Mountain". It is unknown when this event will occur, resulting in the start of the twenty year term. These leases provide for payments of minimum annual rentals as follows, excluding real estate taxes, common area charges, management fees, and sales taxes. Years Ending June 30, 2009 475,200 2010 475,200 2011 522,720 2012 522,720 2013 522,720 2014 – 18 2,770,416 2019 – 23 3,047,457 2024 – 28 3,352,202 2029 – 33 3,687,422 2034 – 38 4,056,166 2039 – 43 4,461,782 2044 – 48 4,907,959 2049 – 53 5,398,757 2054 – 58 5,938,632 2059 – 63 6,532,495 2064 – 68 7,185,745 2069 – 73 7,904,319 2074 – 78 8,694,751 2079 – 83 9,564,226 2084 – 88 10,520,649 2089 – 93 11,572,714 2094 - 98 12,729,987 2099-2100 2,642,073 Total $117,486,312 Minimum annual rentals above excludes annual rental under the remaining renewal options as of June 30, 2008. Rent expense under the above leases for fiscal 2007-08 aggregated $475,200. 65 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÒÑÌÛÍ ÌÑ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ÖËÒÛ íðô îððè ÒÑÌÛ ïí ßÝÝÑËÒÌ×ÒÙ ÎÛÍÌßÌÛÓÛÒÌÍ Corrections were necessary to properly record revenues and expenditures in the proper fiscal year, which affected the fund-based statements. The reconciliation below also summarizes the differences between fiscal year 2007 fund balances as reported and beginning fund balances as reported in fiscal year 2008. South Benefit Gladden Area Impact Transportation Farms Debt General FundFeesFundService Fund Fund Balance June 30, 2007 as previously reported $ 19,247,857$ 9,644,781 $ 16,930,064$ 210,581 Recognition of revenues in proper year1,843,042(570,000)231,092 Recognition of expenditures in proper year(90,174) Account Balance, July 1, 2008, as restated$ 21,090,899$ 9,074,782$ 17,161,156$ 120,407 Corrections were necessary to properly record revenues and expenditures in the proper fiscal year, which affected the government wide statements. The reconciliation below also summarizes the differences between fiscal year 2007 fund balances as reported and beginning fund balances as reported in fiscal year 2008. Statement of Activities Net Assets June 30, 2007 as previously reported $ 218,997,870 Recognition of sales tax in appropriate period 2,504,132 Adjustment to investment earnings in appropriate period (1,090,174) Net Assets June 30, 2008, as restated $ 220,411,828 ÒÑÌÛ ïì ÍËÞÍÛÏËÛÒÌ ÛÊÛÒÌÍ Ü»¾¬ ×«¿²½» On August 13, 2008, the Town of Marana Municipal Property Corporation issued $39,790,000 of Municipal Facilities Revenue Bonds, Series 2008. These bonds were issued for the purpose of acquiring certain public infrastructure. Interest rates range from 4.00 percent to 5.125 percent, with a term of 20 years. Ô±½¿´ Ù±ª»®²³»²¬ ×²ª»¬³»²¬ Ð±±´ ë Portions of the Town’s investments are held by the Arizona State Treasurer in the Local Government Investment Pool 5. On September 15, 2008, the Town received notification that an investment held by the pool, Lehman Brothers Holding Inc., filed for Chapter 11 reorganization. The Town’s pro-rata share of the Lehman Brothers Holding’s bonds totaled $121,315, so the State Treasurer reduced the Town’s investments by the same amount. 66 ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ øÎÛÏË×ÎÛÜ ÍËÐÐÔÛÓÛÒÌßÎÇ ×ÒÚÑÎÓßÌ×ÑÒ÷ 67 68 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÙÛÒÛÎßÔ ÚËÒÜ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Bud eted Amounts g Variance - Positive (Negative) OriginalFinalActual Î»ª»²«»æ Sales taxes $19,098,627$19,098,627$ 552,45519,651,082$ Inter overnmental 7,420,6917,420,6917,531,634110,943 g Licenses, fees & permits 4,271,6704,271,6702,307,878(1,963,792) Fines, forfeitures & penalties 654,275654,275716,983 62,708 Chares for services 1,186,7821,186,782979,797 (206,985) g Lease income 493,300493,300987,107 493,807 Contributions 35,00035,00060,788 25,788 Investment income 564,250564,250569,125 4,875 Miscellaneous 622,748622,748387,187 (235,561) Ì±¬¿´ ®»ª»²«» 34,347,34334,347,343 33,191,581(1,155,762) Û¨°»²¼·¬«®»æ Current - Generalovernmen 9,710,5999,838,4928,239,993 1,598,499 gt Public safety 10,714,44310,773,27310,181,339591,934 Hihways and streets 2,227,2192,230,2192,303,668 (73,449) g Health and welfare 62,83462,834129,757 (66,923) Economic and community development 4,458,0364,523,6134,537,988 (14,375) Cuture and recreation 3,449,1803,458,1803,266,690191,490 Capital outla 4,334,0984,069,7983,111,517 958,281 y Ì±¬¿´ »¨°»²¼·¬«®» 34,956,40934,956,409 31,770,9523,185,457 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (609,066) (609,066) 1,420,6292,029,695 ±«®½» ø«»÷æ Ñ¬¸»® º·²¿²½·² ¹ ransfers out (2,423,560)(2,423,560)(2,096,763)326,797 T Ì±¬¿´ ±¬¸»® º·²¿²½·² ±«®½» ¹ ø«»÷ (2,423,560)(2,423,560)(2,096,763) 326,797 » ·² º«²¼ ¾¿´¿²½» Ý¸¿² (3,032,626)(3,032,626) (676,134)2,356,492 ¹ Ú«²¼ ¾¿´¿²½»ô ¾»·²²·² ±º §»¿® ¹¹ ¿ ®»¬¿¬»¼ 14,463,73714,463,73721,090,8996,627,162 Ú«²¼ ¾¿´¿²½»ô »²¼ ±º §»¿ $11,431,11111,431,111$$ 8,983,65420,414,765$ ® Í»» ¿½½±³°¿²§·² ²±¬» ¬± ¬¸· ½¸»¼«´»ò ¹ 69 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó Ø×ÙØÉßÇ ËÍÛÎ ÎÛÊÛÒËÛ ÚËÒÜ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Bud eted Amounts g Variance - Positive (Negative) OriginalFinalActual Î»ª»²«»æ Inter overnmental $2,244,207$2,244,207$2,035,849$(208,358) g Ì±¬¿´ ®»ª»²«» 2,244,2072,244,2072,035,849(208,358) Û¨°»²¼·¬«®»æ Current - Hihways and streets 1,234,5751,234,575 1,021,490 213,085 g Capital outla 1,100,0001,100,000 693,193406,807 y Ì±¬¿´ »¨°»²¼·¬«®» 2,334,5752,334,5751,714,683619,892 Ý¸¿²» ·² º«²¼ ¾¿´¿²½» (90,368)(90,368) 321,166 411,534 ¹ Ú«²¼ ¾¿´¿²½»ô ¾» ·²²·² ±º §»¿ 211,826211,826127,723(84,103) ¹¹® Ú«²¼ ¾¿´¿²½»ô »²¼ ±º §»¿ $ 121,458121,458$$448,889$327,431 ® Í»» ¿½½±³°¿²§·² ²±¬» ¬± ¬¸· ½¸»¼«´»ò ¹ 70 TOWN OF MARANA, ARIZONA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2008 ÒÑÌÛ ï ó ÞËÜÙÛÌßÎÇ ÞßÍ×Í ÑÚ ßÝÝÑËÒÌ×ÒÙ The adopted budget of the Town is prepared on a basis of accounting consistent with accounting principles generally accepted in the United States of America. 71 72 ÝÑÓÞ×Ò×ÒÙ ßÒÜ ×ÒÜ×Ê×ÜËßÔ ÚËÒÜ Ú×ÒßÒÝ×ßÔ ÍÌßÌÛÓÛÒÌÍ ßÒÜ ÍÝØÛÜËÔÛÍ 73 74 ÑÌØÛÎ ÓßÖÑÎ ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ ÍÝØÛÜËÔÛÍ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ 75 76 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÍÑËÌØ ÞÛÒÛÚ×Ì ßÎÛß ×ÓÐßÝÌ ÚÛÛÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Bud eted Amounts g Variance - Positive (Negative) OriginalFinalActual Î»ª»²«»æ Contributions $717,120$717,120$168,637(548,483)$ Investment income 225,414225,414392,110166,696 Ì±¬¿´ ®»ª»²«» 942,534942,534560,747 (381,787) Û¨°»²¼·¬«®»æ Current - Capital outla 8,967,0008,967,0004,244,0284,722,972 y Ì±¬¿´ »¨°»²¼·¬«®» 8,967,0008,967,0004,244,0284,722,972 Ý¸¿²» ·² º«²¼ ¾¿´¿²½» (8,024,466) (3,683,281)(8,024,466) 4,341,185 ¹ Ú«²¼ ¾¿´¿²½»ô ¾»·²²·² ±º §»¿® ¹¹ ¿ ®»¬¿¬»¼ 8,602,7858,602,7859,074,782 471,997 Ú«²¼ ¾¿´¿²½»ô »²¼ ±º §»¿ $ 578,319$578,319$5,391,501$4,813,182 ® 77 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÌÎßÒÍÐÑÎÌßÌ×ÑÒ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Bud eted Amounts g Variance - Positive (Negative) OriginalFinalActual Î»ª»²«»æ Sales taxes $9,427,533$9,427,533$7,511,231$(1,916,302) Contributions 470,361 470,361 - - Investment income 286,655286,655588,558 301,903 Miscellaneous 70,145 70,145 - - Ì±¬¿´ ®»ª»²«» 9,714,1889,714,1888,640,295(1,073,893) Û¨°»²¼·¬«®»æ Current - General overnmen 1,750,0001,750,0001,384,444 365,556 gt Hihways and streets 145,514145,514472,687 (327,173) g Economic and community development 27852,27833,027 19,251 Capital outla 14,861,33714,809,33713,787,912 1,021,425 y Debt service - Principal retiremen 44,69544,69538,591 6,104 t Interest and fiscal chares 6,104 (6,104) g - - Ì±¬¿´ »¨°»²¼·¬«®» 16,801,824 15,722,76516,801,824 1,079,059 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (7,087,636)(7,087,636)(7,082,470) 5,166 Ñ¬¸»® º·²¿²½·² ±«®½» ø«»÷æ ¹ Face value of bonds issued 9,000,0009,000,000 -(9,000,000) ransfers out (2,110,377)(2,110,377) T -2,110,377 Ì±¬¿´ ±¬¸»® º·²¿²½·² ±«®½» ¹ ø«»÷ 6,889,6236,889,623 (6,889,623)- Ý¸¿²» ·² º«²¼ ¾¿´¿²½» (198,013)(198,013) (6,884,457)(7,082,470) ¹ Ú«²¼ ¾¿´¿²½»ô ¾»·²²·² ±º §»¿® ¹¹ ¿ ®»¬¿¬»¼ 14,143,54014,143,54017,161,1563,017,616 Ú«²¼ ¾¿´¿²½»ô »²¼ ±º §»¿ $ 13,945,52713,945,527$$10,078,686$(3,866,841) ® 78 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÑÌØÛÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Bud eted Amounts g Variance - Positive (Negative) OriginalFinalActual Î»ª»²«»æ Inter overnmental $ 17,206,80017,206,800$7,223,051$$(9,983,749) g Contributions 13,470 13,470 - - Investment income 359,638359,638944,494584,856 Ì±¬¿´ ®»ª»²«» 17,566,438 8,181,01517,566,438(9,385,423) Û¨°»²¼·¬«®»æ Current - Hihways and streets 18,353 (18,353) g - - Capital outla 52,345,849 28,560,64152,345,849 23,785,208 y Debt service - Interest and fiscal char es 146,995146,99512,859 134,136 g Ì±¬¿´ »¨°»²¼·¬«®» 52,492,844 28,591,85352,492,844 23,900,991 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (34,926,406)(34,926,406)(20,410,838)14,515,568 Ñ¬¸»® º·²¿²½·² ±«®½» ø«»÷æ ¹ Face value of bonds issued 11,100,000 -11,100,000 11,100,000 ransfers out 2,258,481 T - -(2,258,481) Ì±¬¿´ ±¬¸»® º·²¿²½·² ±«®½» ¹ ø«»÷ 11,100,00011,100,000(2,258,481)13,358,481 » ·² º«²¼ ¾¿´¿²½» Ý¸¿² (23,826,406)(22,669,319)1,157,087(23,826,406) ¹ Ú«²¼ ¾¿´¿²½»ô ¾»·²²·² ±º §»¿ 23,826,406 20,739,29323,826,406 (3,087,113) ¹¹® «² ¿¿²½» »½¬ô »² ± Ú¼¾´ø¼º··÷¼º §»¿® $$(1,930,026) $ - $ - (1,930,026) 79 80 ÒÑÒóÓßÖÑÎ ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ 81 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÞßÔßÒÝÛ ÍØÛÛÌ ó ßÔÔ ÒÑÒóÓßÖÑÎ ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ ó ÞÇ ÚËÒÜ ÌÇÐÛ ÖËÒÛ íðô îððè Special RevenueDebt ServiceCapital Projects ÍÍÛÌÍ ß Cash and cash equivalents $ 94,9891,331,075$$10,170,707 Taxes receivable 1,659 - - ccounts receivable 13,739 221 A - Interest receivable 1,421 25,927 - Due from governments 24,6781,727,725 - Prepaid items 1,125 - - 79,2022,180,298 Restricted cash and investments - $1,448,69$2,279,492$11,924,580 Ì±¬¿´ ¿»¬ 4 Ô×ßÞ×Ô×Ì×ÛÍ ßÒÜ ÚËÒÜ ÞßÔßÒÝÛ Í Liabilities: $ 2,905158,826$ 562,023$ Accounts payable 97,3567,3703,674,601 Due to other fund s 531,8621,250,260 Deferred revenue - 575,000 Bonds payable - - 916,589 Bond interest payable - - 256,1822,033,7265,486,88 Ì±¬¿´ ´·¿¾·´·¬·» 4 Fund balances: Reserved for: 1,125 Prepaid items - - 244,641 Debt service - - 1,192,5126,437,696 Unreserved - 1,192,512245,7666,437,696 Ì±¬¿´ º«²¼ ¾¿´¿²½» $1,448,69$2,279,492$11,924,580 Ì±¬¿´ ´·¿¾·´·¬·» ¿²¼ º«²¼ ¾¿´¿²½» 4 82 Total Non-Major Governmental Funds $11,596,771 1,659 13,960 27,348 1,752,403 1,125 2,259,500 15,652,76 $ 6 $723,754 3,779,327 1,782,122 575,000 916,589 7,776,792 1,125 244,641 7,630,208 7,875,97 4 15,652,76 $ 6 83 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ßÔÔ ÒÑÒóÓßÖÑÎ ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜÍ ó ÞÇ ÚËÒÜ ÌÇÐÛ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè SpecialCapital RevenueDebt ServiceProjects Î»ª»²«»æ Sales tax $ 10,608 $ -$ - Property tax422,922 37,079 - Intergovernmental 566,974 -1,922,870 Licenses, fees & permits - -1,033,526 Fines, forfeitures & penalties91,087 - - Contributions643,498 100,000 - Investment income 3,288 391,433135,638 Miscellaneous 26,220 - - Ì±¬¿´ ®»ª»²«» 558,5601,331,067 3,495,516 Û¨°»²¼·¬«®»æ Current - General government 94,784 279,895 - Public safety318,885 - - Highways and streets 80,939 - - Community development338,958 - - Capital outlay - -6,815,693 Debt service - Principal retirement - 2,090,229 - Interest and fiscal charges - 3,101,596 - Ì±¬¿´ »¨°»²¼·¬«®» 5,191,825833,566 7,095,588 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» 497,501(4,633,265)(3,600,072) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Face value of bonds issued - -3,075,000 Transfers in 4,183,05812,188 - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ 12,1884,183,0583,075,000 Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» (450,207)509,689 (525,072) Ú«²¼ ¾¿´¿²½»ô ¾»¹·²²·²¹ ±º §»¿® ¿ ®»¬¿¬»¼682,823695,9736,962,768 Ú«²¼ ¾¿´¿²½»ô »²¼ ±º §»¿® $1,192,512$245,766$6,437,696 84 otal T Non-Major Governmental Funds $ 10,608 460,001 2,489,844 1,033,526 91,087 743,498 530,359 26,220 5,385,143 374,679 318,885 80,939 338,958 6,815,693 2,090,229 3,101,596 13,120,979 (7,735,836) 3,075,000 4,195,246 7,270,246 (465,590) 8,341,564 $ 7,875,974 85 86 ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ Ú»¼»®¿´ Ù®¿²¬ Ú«²¼ includes the Community Development Block Grants, the HOME Program, HIDTA, and MANTIS Grant. The separate funds have been established to account for grant revenues and to provide compliance with Federal grant regulations. Ñ¬¸»® Ù®¿²¬ Ú«²¼ includes COPS Grant, JCEF Court fund, RICO, Auto Theft, Highway User Revenue, Local Transportation, Fill The Gap and Local Technology – Courts Funds. These funds are non-federal funds required by Arizona Statues to be used for police, public works, or magistrate court expenditures. 87 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÞßÔßÒÝÛ ÍØÛÛÌ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÖËÒÛ íðô îððè Community DevelopmentAffordable Block GrantHousingJCEF CourtRICO ÍÍÛÌÍ ß $ 66,509109,249$ 30,545$ 30,461$ Cash and cash equivalents ccounts receivable A - - - - 9,413 Due from governments - - - 58,555 Restricted cash and investments - - - $ 66,509118,662$ 30,545$ 89,016$ Ì±¬¿´ ¿»¬ Ô×ßÞ×Ô×Ì×ÛÍ ßÒÜ ÚËÒÜ ÞßÔßÒÝÛ Í Liabilities: $ 7,63177,182 Accounts payable $ $ - $ - Due to other fund s - - - - 77,1827,631 Ì±¬¿´ ´·¿¾·´·¬·» - - Fund balances: 41,48058,878 30,54589,016 Unreserved 41,48058,878 30,54589,016 Ì±¬¿´ º«²¼ ¾¿´¿²½» $ 66,509118,662$ 30,545$ 89,016$ Ì±¬¿´ ´·¿¾·´·¬·» ¿²¼ º«²¼ ¾¿´¿²½» 88 LocalLocal HIDTAMANTISAuto TheftTransportationFill-the-GapTechnology $125,435$296,312$26,428$185,040 $ - $ - 2,8611,819 - - - - 12,564 - - - - - - - - - - - $137,999$2,861$296,312$28,247$185,040 $ - $466$-$73,547 $ - $ - $ - 90,4846,872 - - - - 90,9506,87273,547 - - - 137,999 (88,089)(6,872)222,76528,247185,040 137,999 (88,089)(6,872)222,76528,247185,040 $137,999$2,861$ -$296,312$28,247$185,040 (Continued) 89 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÞßÔßÒÝÛ ÍØÛÛÌ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÖËÒÛ íðô îððè øÝ±²½´«¼»¼÷ Other Special Revenue FundTotals ÍÍÛÌÍ ß $ 1,331,075461,096$ Cash and cash equivalents 9,05913,739 ccounts receivable A 2,70124,678 Due from governments 20,64779,202 Restricted cash and investments $ 1,448,69493,503$ Ì±¬¿´ ¿»¬ 4 Ô×ßÞ×Ô×Ì×ÛÍ ßÒÜ ÚËÒÜ ÞßÔßÒÝÛ Í Liabilities: $158,826 Accounts payable $ - 97,356 Due to other fund s - 256,182 Ì±¬¿´ ´·¿¾·´·¬·» - Fund balances: 493,5031,192,512 Unreserved 493,5031,192,512 Ì±¬¿´ º«²¼ ¾¿´¿²½» Ì±¬¿´ ´·¿¾·´·¬·» ¿²¼ º«²¼ ¾¿´¿²½» $ 1,448,694493,503$ 90 91 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Community DevelopmentAffordable Block GrantHousingJCEF Court Î»ª»²«»æ Intergovernmental 183,902 $ $ - $ - Fines, forfeitures & penalties 12,653 - - Contributions - - - Investment income - - - Miscellaneous 26,220 - - Ì±¬¿´ ®»ª»²«» 183,90226,22012,653 Û¨°»²¼·¬«®»æ Current - General governmen 20,992 t - - Public safet y - - - Highways and street s - - - Community developmen 163,454175,504 t - Ì±¬¿´ »¨°»²¼·¬«®» 163,454175,50420,992 20,448(149,284) (8,339) Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» Ñ¬¸»® º·²¿²½·² ±«®½» «»æ ¹ø÷ Transfers in - - - Ì±¬¿´ ±¬¸»® º·²¿²½·² ±«®½» «» ¹ø÷ - - - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 20,448(149,284)(8,339) Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô ¾»¹·²²·²¹ ±º §»¿® 21,032 208,162 38,884 Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô »²¼ ±º §»¿® $ 58,87841,480$$30,545 92 Local RICOHIDTAMANTISAuto TheftTransportationFill-the-Gap $35,804$54,440$24,482$37,815$188,463 $ - -6,495 - - - - 43,476 - - - - - 3,263 - - - - - - - - - - - 82,543 54,44024,48237,815188,4636,495 - - - - - - 67,900 102,97361,142 - - - 80,939 - - - - - - - - - - - 67,900 102,97361,14280,939 - - 14,643 54,440 (78,491) (23,327) 107,524 6,495 12,188 - - - - - 12,188 - - - - - 14,64354,440 (78,491)(23,327)119,7126,495 74,373 83,559 (9,598) 16,455 103,053 21,752 $89,016$137,999$(88,089)$(6,872)$222,765$28,247 (Continued) 93 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²½´«¼»¼÷ LocalOther Special TechnologyRevenue FundTotals Î»ª»²«»æ Intergovernmental $42,067$566,973 $ - Fines, forfeitures & penalties 71,939 91,087 - Contributions 600,023 643,499 - Investment income 253,288 - Miscellaneous 26,220 - - Ì±¬¿´ ®»ª»²«» 71,939642,1151,331,067 Û¨°»²¼·¬«®»æ Current - General governmen 73,792 94,784 t - Public safet 86,870 318,885 y - Highways and street 80,939 s - - Community developmen 338,958 t - - Ì±¬¿´ »¨°»²¼·¬«®» 160,662 833,566 - 71,939 481,453 497,501 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» Ñ¬¸»® º·²¿²½·² ±«®½» «»æ ¹ø÷ 12,188 Transfers in - - 12,188 Ì±¬¿´ ±¬¸»® º·²¿²½·² ±«®½» «» ¹ø÷ - - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 71,939481,453 509,689 Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô ¾»¹·²²·²¹ ±º §»¿® 113,101 12,050 682,823 Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô »²¼ ±º §»¿® $ 493,503185,040$$1,192,512 94 95 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè Community Development Block Grant Variance - OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Interovernmental $ 275,000275,000$$ 183,902$(91,098) g Miscellaneous - - - - Ì±¬¿´ ®»ª»²«» 275,000275,000 183,902(91,098) Û¨°»²¼·¬«®»æ Current - Community development 175,000175,000163,45411,546 Capital outlay 100,000100,000 - 100,000 Ì±¬¿´ »¨°»²¼·¬«®» 275,000275,000 163,454111,546 Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 20,44820,448 - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 21,03221,032 - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ 41,480$ 41,480 $ - $ - 96 Affordable Housin Revolvin Fund gg Variance - OriginalPositive BudgetFinal BudgetActual(Negative) $ - $ -$ -$ - 10,000 10,000 26,22016,220 10,000 10,000 26,22016,220 50,000 110,000 175,504(65,504) - - - - 50,000 110,000 175,504(65,504) (40,000) (100,000) (149,284) (49,284) 140,000 140,000 208,162 68,162 $ 100,000$ 40,000$ 58,878$ 18,878 (continued) 97 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²¬·²«»¼÷ JCEF Court Variance - OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Interovernmental g $ -$ -$ - $ - Fines, forfeitures & penalties 12,25012,250 12,653403 Contributions - - - - Investment income - - - - Ì±¬¿´ ®»ª»²«» 12,25012,250 12,653403 Û¨°»²¼·¬«®»æ Current - General overnment 12,25012,250 20,992(8,742) g Public safety - - - - Ì±¬¿´ »¨°»²¼·¬«®» 12,25012,250 20,992 (8,742) Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» (8,339)(8,339) - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 38,88438,884 - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ 30,545$ 30,545 $ - $ - 98 RICO Variance - OriginalPositive BudgetFinal BudgetActual(Negative) $ 20,000$ 20,000$ 35,804$15,804 - - - - 43,47643,476 - - 3,2633,263 - - 20,000 20,000 82,54362,543 - - - - 108,602 108,602 67,90040,702 108,602 108,602 67,900 40,702 (88,602) (88,602) 14,643 103,245 88,602 88,602 74,373 (14,229) $ 89,016$ 89,016 $ - $ - (continued) 99 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²¬·²«»¼÷ HIDTA Variance - OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Interovernmental $52,000$52,000$ 54,440$2,440 g Ì±¬¿´ ®»ª»²«» 52,00052,000 54,4402,440 Û¨°»²¼·¬«®»æ Current - Public safety 47,65347,65347,653 - Ì±¬¿´ »¨°»²¼·¬«®» 47,65347,65347,653 - Ý¸¿²» ·² º«²¼ ¾¿´¿²½» 4,3474,347 54,44050,093 ¹ Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 83,55983,559 - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ 4,3474,347$ $ 137,999$ 133,652 100 MANTIS Variance - OriginalPositive BudgetFinal BudgetActual(Negative) $ 61,975$ 61,975$ 24,482$(37,493) 61,975 61,975 24,482(37,493) 61,975 61,975 102,973(40,998) 61,975 61,975 102,973(40,998) (78,491) - - (78,491) (9,598) (9,598) - - $ $ (88,089) $ - $ - (88,089) (continued) 101 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²¬·²«»¼÷ Auto Theft Variance - OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Interovernmental $61,975$61,975$ 37,815$(24,160) g Ì±¬¿´ ®»ª»²«» 61,97561,975 37,815(24,160) Û¨°»²¼·¬«®»æ Current - Public safety 61,97561,975 61,142833 Hihways and streets g - - - - Ì±¬¿´ »¨°»²¼·¬«®» 61,97561,97561,142833 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® (23,327) »¨°»²¼·¬«®» - - (23,327) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Transfers in - - - - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ - - - - Ý¸¿²» ·² º«²¼ ¾¿´¿²½» ¹ (23,327)(23,327) - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 16,45516,455 - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ (6,872)$ (6,872) $ - $ - 102 Local Transportation Assistance Fund Variance - OriginalPositive BudgetFinal BudgetActual(Negative) $ 139,711$ 139,711$ 188,463$48,752 139,711 139,711 188,46348,752 - - - - 154,475 154,475 80,93973,536 154,475 154,475 80,93973,536 (14,764) (14,764) 107,524 122,288 12,188 12,188 - - 12,188 12,188 - - (14,764) (14,764) 119,712134,476 14,764 14,764 103,053 88,289 $ $ 222,765 $ - $ - 222,765 (continued) 103 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²¬·²«»¼÷ Fill-the-Gap Variance - OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Fines, forfeitures & penalties $ 5,0005,000$$ 6,495$1,495 Ì±¬¿´ ®»ª»²«» 5,0005,000 6,4951,495 Û¨°»²¼·¬«®»æ Current - General overnment 5,0005,0005,000 g - Ì±¬¿´ »¨°»²¼·¬«®» 5,0005,0005,000 - Ý¸¿²» ·² º«²¼ ¾¿´¿²½» 6,4956,495 ¹ - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 21,752 21,752 - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ 28,247$ 28,247 $ - $ - 104 Local Technoloy g Variance - OriginalPositive BudgetFinal BudgetActual(Negative) $ 59,950$ 59,950$ 71,939$11,989 59,950 59,950 71,93911,989 59,950 59,95059,950 - 59,950 59,95059,950 - 50,712 71,93921,227 - 113,101 - - 113,101 $ 50,712$ 185,040$ 134,328 $ - 105 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÍÐÛÝ×ßÔ ÎÛÊÛÒËÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²½´«¼»¼÷ Other Special Revenue Fund Variance - OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Interovernmental $ 42,067$42,067 g $ -$ - Fines, forfeitures & penalties - - - - Contributions 1,000,0001,000,000 600,023(399,977) Investment income 2525 - - Miscellaneous - - - - Ì±¬¿´ ®»ª»²«» 1,000,0001,000,000 642,115(357,885) Û¨°»²¼·¬«®»æ Current - General overnment 1,100,0001,100,00073,7921,026,208 g Public safety 86,870 (86,870) - - Hihways and streets g - - - - Community development - - - - Capital outlay - - - - Ì±¬¿´ »¨°»²¼·¬«®» 1,100,000 1,100,000 160,662 939,338 Ý¸¿²» ·² º«²¼ ¾¿´¿²½» ¹(100,000)(100,000) 481,453581,453 Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ ransfers in T - - - - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ - - - - Ý¸¿²» ·² º«²¼ ¾¿´¿²½» ¹ - - - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 100,000100,000 12,050 (87,950) Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ $ 493,503 $ - $ - 493,503 106 otals T Variance - OriginalPositive BudgetFinal BudgetActual(Negative) $ 610,661$ 610,661$ 566,973$(43,688) 77,200 77,200 91,08713,887 1,000,000 1,000,000 643,499(356,501) 3,2883,288 - - 10,000 10,000 26,22016,220 1,697,861 1,697,861 1,331,067(366,794) 1,177,200 1,177,200 94,7841,082,416 280,205 280,205 318,885 (38,680) 154,475 154,475 80,93973,536 225,000 285,000 338,958 (53,958) 100,000 100,000 - 100,000 1,936,880 1,996,880 833,566 1,163,314 (239,019) (299,019) 497,501796,520 12,18812,188 - - 12,188 12,188 - - (239,019) (299,019) 509,689808,708 343,366 343,366 682,823 339,457 $ 104,347$ 44,347$1,192,512$1,148,165 107 108 ÒÑÒóÓßÖÑÎ ÜÛÞÌ ÍÛÎÊ×ÝÛ ÚËÒÜÍ Debt Service Funds are created to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. ïççé Þ±²¼ Ü»¾¬ Í»®ª·½» Ú«²¼ – 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. îððí Þ±²¼ Ü»¾¬ Í»®ª·½» Ú«²¼ – this fund accounts for the accumulation of resources and payment of principal and interest on the Series 2003 Revenue Bonds. The Town has pledged Town sales tax revenue, state shared revenues, licenses, fees and permits revenue, and fines, forfeitures and penalties revenue to make the required payments for this series. îððì Þ±²¼ Ü»¾¬ Í»®ª·½» Ú«²¼ – this fund accounts for the accumulation of resources and payment of principal and interest on the series 2004 revenue bonds. The Town has pledged Town sales tax revenue, state shared revenues, licenses, fees and permits revenue, and fines, forfeitures and penalties revenue to make the required payments for this series. Ù´¿¼¼»² Ú¿®³ Ü»¾¬ Í»®ª·½» Ú«²¼ – this fund accounts for the accumulation of resources and payment of principal and interest on the Gladden Farms general obligation bonds. 109 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÞßÔßÒÝÛ ÍØÛÛÌ ó ÒÑÒóÓßÖÑÎ ÜÛÞÌ ÍÛÎÊ×ÝÛ ÚËÒÜÍ ÖËÒÛ íðô îððè 1997 Bond 2003 Bond 2004 Bond Other Debt Debt ServiceDebt ServiceDebt ServiceService ÍÍÛÌÍ ß Cash and cash equivalents $ 70,4321,254$ 1,848$ -$ Taxes receivable - - - - Interest receviable 9628 45 - Prepaid items - - - 1,125 Restricted cash and investments 685,640203,436 322,225 - Ì±¬¿´ ¿»¬ $ 756,168204,718$ 324,118 $ $ 1,125 Ô×ßÞ×Ô×Ì×ÛÍ ßÒÜ ÚËÒÜ ÞßÔßÒÝÛ Í Liabilities: Accounts payable $-$2,905 $ -$ - Due to other fund s - - - 7,370 Deferred revenue - - - - Bonds payable 275,000110,000 140,000 - Bond interest payable 93,334410,291182,064 - Ì±¬¿´ ´·¿¾·´·¬·» 685,291203,334 322,064 10,275 Fund balances: Reserved for prepaid items - - - 1,125 Reserved for debt service 70,8771,384 2,054 (10,275) Ì±¬¿´ º«²¼ ¾¿´¿²½» 70,8771,384 2,054 (9,150) Ì±¬¿´ ´·¿¾·´·¬·» ¿²¼ º«²¼ ¾¿´¿²½» $ 756,168204,718$ 324,118 $ $ 1 ,125 110 Gladden Farms Debt ServiceTotals $21,455$ 94,989 1,659 1,659 1,252 1,421 1,125 - 968,997 2,180,298 $993,363$2,279,492 $ 2,905 $ - 7,370 - 531,862 531,862 50,000 575,000 230,900 916,589 812,762 2,033,726 1,125 - 180,601 244,641 180,601 245,766 $993,363$2,279,492 111 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÒÑÒóÓßÖÑÎ ÜÛÞÌ ÍÛÎÊ×ÝÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè 1997 Bond 2003 Bond 2004 Bond Debt ServiceDebt ServiceDebt Service Î»ª»²«»æ Property Taxes $ -$ - $ - Investment income - - - Ì±¬¿´ ®»ª»²«» - - - Û¨°»²¼·¬«®»æ Debt service - Principal retiremen 215,000550,000 275,000 t Interest and fiscal charge 190,179826,552 369,097 s Ì±¬¿´ »¨°»²¼·¬«®» 405,1791,376,552 644,097 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (1,376,552)(405,179)(644,097) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Transfers in 404,577875,000 645,000 Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ 404,577875,000 645,000 Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» (501,552)(602) 903 Ú«²¼ ¾¿´¿²½»ô ¾»¹·²²·²¹ ±º §»¿® ¿ ®»¬¿¬»¼ 572,4291,986 1,151 Ú«²¼ ¾¿´¿²½»ô »²¼ ±º §»¿ $ 70,8771,384$$2,054 ® 112 Gladden Other Debt Farms Debt ServiceServiceTotals $422,922$422,922 $ - -135,638135,638 -558,560558,560 1,000,229 50,0002,090,229 1,267,402448,3663,101,596 2,267,631498,3665,191,825 (2,267,631) 60,194(4,633,265) 2,258,481 -4,183,058 2,258,481 -4,183,058 (9,150) 60,194 (450,207) -120,407 695,973 $(9,150)$180,601$245,766 113 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÜÛÞÌ ÍÛÎÊ×ÝÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè 1997 Bond Debt Service ariance - V OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Property Taxes $-$- $ -$ - Intergovernmental - - - - Contributions - - - - Investment income - - - - Ì±¬¿´ ®»ª»²«» - - - - Û¨°»²¼·¬«®»æ Debt service - Principal retirement 215,000215,000- 215,000 Interest and fiscal charges 189,450190,179(729) 189,450 Ì±¬¿´ »¨°»²¼·¬«®» 405,179(729) 404,450 404,450 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (404,450)(404,450)(405,179) (729) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Transfers in 643,577404,577(239,000) 643,577 Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ 643,577643,577 404,577 (239,000) Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» (239,729)(602) 239,127 239,127 Ú«²¼ ¾¿´¿²½»ô Ö«´§ ïô îððé -- 1,986 1,986 Ú«²¼ ¾¿´¿²½»ô Ö«²» íðô îððè $239,127$239,127$1,384$(237,743) 114 2003 Bond Debt Service ariance - V OriginalPositive BudgetFinal BudgetActual(Negative) -$- $ $ -$ - - - - - - - - - - - - - - - - - 545,000545,000550,000(5,000) 830,500830,500826,5523,948 1,375,5001,375,5001,376,552(1,052) (1,375,500)(1,375,500)(1,376,552) (1,052) 875,500875,500875,000500 875,500875,500875,000 500 (500,000)(500,000)(501,552)(1,552) 500,000500,000572,42972,429 $ -$ 70,877-$$70,877 (Continued) 115 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÜÛÞÌ ÍÛÎÊ×ÝÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²¬·²«»¼÷ 2004 Bond Debt Service ariance - V OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Property Taxes $-$- $ -$ - Intergovernmental - - - - Contributions - - - - Investment income - - - - Ì±¬¿´ ®»ª»²«» - - - - Û¨°»²¼·¬«®»æ Debt service - Principal retirement 275,000275,000- 275,000 Interest and fiscal charges 366,500369,097(2,597) 366,500 Ì±¬¿´ »¨°»²¼·¬«®» 644,097(2,597) 641,500 641,500 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (641,500)(641,500)(644,097) (2,597) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Transfers in 645,000645,000- 645,000 Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ 645,000645,000 645,000 - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 903(2,597) 3,500 3,500 Ú«²¼ ¾¿´¿²½»ô Ö«´§ ïô îððé 1,151 - - 1 ,151 Ú«²¼ ¾¿´¿²½»ô Ö«²» íðô îððè $ 3,5003,500$ 2,054$ 1,446 116 Other Debt Service ariance - V Positive (Negative) Original BudgetFinal BudgetActual $ - $ -$ -$ - 900,000 900,000(900,000) - - - - - - - - - 900,000 900,000(900,000) - 4,008,4823,936,4821,000,2292,936,253 72,0001,267,402(1,195,402) - 4,008,4824,008,4822,267,6311,740,851 (3,108,482)(3,108,482)(2,267,631) 840,851 2,258,481 - -2,258,481 2,258,481 - - 2,258,481 (3,108,482)(3,108,482) (9,150)3,099,332 - - - - $(3,108,482)$(3,108,482)$(9,150)$3,099,332 (Continued) 117 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÜÛÞÌ ÍÛÎÊ×ÝÛ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²½´«¼»¼÷ Gladden Farms Debt Service ariance - V OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Property Taxes $489,233$(66,311) $ 489,233$ 422,922 Intergovernmental - - - - Contributions 23,014 23,014 -(23,014) Investment income 135,638 - - 135,638 Ì±¬¿´ ®»ª»²«» 46,313 512,247 512,247 558,560 Û¨°»²¼·¬«®»æ Debt service - Principal retirement (5,000) 45,000 45,000 50,000 Interest and fiscal charges 18,881 467,247 467,247 448,366 Ì±¬¿´ »¨°»²¼·¬«®» 13,881 512,247 512,247 498,366 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» 60,194 - - 60,194 Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Transfers in - - - - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ - - - - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 60,194 - - 60,194 Ú«²¼ ¾¿´¿²½»ô Ö«´§ ïô îððé ¿ ®»¬¿¬»¼ 407 120,000 120,000 120,407 Ú«²¼ ¾¿´¿²½»ô Ö«²» íðô îððè $120,000$60,601 $ 120,000$ 180,601 118 Totals ariance - V Positive (Negative) Original BudgetFinal BudgetActual $489,233$489,233$422,922 $ - 900,000 900,000900,000 - 23,014 23,01423,014 - - 135,638-(135,638) 1,412,2471,412,247558,560787,376 5,088,4825,016,4822,090,229- 1,853,6971,925,6973,101,596857 6,942,1796,942,1795,191,825857 (5,529,932)(5,529,932)(4,633,265) 896,667 2,164,0772,164,0774,183,058- 2,164,0772,164,0774,183,058 - (3,365,855)(3,365,855)(450,207)2,915,648 620,000 620,000695,97375,973 $(2,745,855)$(2,745,855)$245,766$2,991,621 119 120 ÒÑÒóÓßÖÑÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜ 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. Ò±®¬¸ Þ»²»º·¬ ß®»¿ ×³°¿½¬ Ú»» – this fund accounts for the financing and construction of transportation projects that are defined within the benefit area. Ð¿®µ ×³°¿½¬ Ú»» Ú«²¼ – this fund accounts for park impact fees collected by the Town and utilized for authorized capital improvements. Ð·³¿ Ý±«²¬§ Þ±²¼ Ú«²¼ – this fund accounts for the financing and construction of projects funded through Pima County Bond program. ÐßÙ Ý¿°·¬¿´ Ú«²¼ – this fund accounts for proceeds from Pima Association of Governments which is used for the Thornydale Road and Silverbell Road Improvements Projects. Í¿´» Ì¿¨ Ý¿°·¬¿´ Ú«²¼ – this fund accounts for sales tax proceeds which are used for authorized capital improvements. Ù´¿¼¼»² Ú¿®³ Ý¿°·¬¿´ Ú«²¼ – this fund accounts for the proceeds from the sale of general obligation bonds which are used for authorized capital improvements. Ê¿²¼»®¾·´¬ Ú¿®³ Ý¿°·¬¿´ Ú«²¼ – this fund accounts for the proceeds from property tax revenues to be used for authorized capital improvements. 121 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÞßÔßÒÝÛ ÍØÛÛÌ ó ÒÑÒóÓßÖÑÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜÍ ÖËÒÛ íðô îððè North Benefit Area Impact Park Impact Pima County FeesFeesBond Capital ÍÍÛÌÍ ß Cash and cash equivalents $ 3,704,8611,274,707$ -$ Accounts receivable - - - Interest receivable 9,436 - - Due from governments 193,215 - - Ì±¬¿´ ¿»¬ 1,274,7073,714,297 193,215 Ô×ßÞ×Ô×Ì×ÛÍ ßÒÜ ÚËÒÜ ÞßÔßÒÝÛ Í Liabilities: Accounts payable $7,436$2,762$223,949 Due to other funds 793,150 - - Deferred revenue - - - Ì±¬¿´ ´·¿¾·´·¬·» 2,7627,436 1,017,099 Fund balances: 1,267,2713,711,535 (823,884) Unreserved Ì±¬¿´ º«²¼ ¾¿´¿²½» 1,267,2713,711,535 (823,884) Ì±¬¿´ ´·¿¾·´·¬·» ¿²¼ º«²¼ ¾¿´¿²½» $ 3,714,2971,274,707$ 193,215$ 122 GladdenVanderbilt PAG CapitalSales Tax CapitalFarms CapitalFarms CapitalTotals $5,028,538$136,299$26,302$10,170,707 $ - - -19922 221 - 16,491 25,927 - - 1,534,510 -1,727,725 - - 1,534,510 5,045,029136,49826,32411,924,580 $326,782$ -$1,002$92$562,023 2,881,451 -3,674,601 - - 1,250,260 -1,250,260 - - 4,458,493 -1,002925,486,88 4 (2,923,983) 5,045,029135,49626,2326,437,696 (2,923,983) 5,045,029135,49626,2326,437,696 $1,534,510$5,045,029$136,498$26,324$11,924,580 123 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÌßÌÛÓÛÒÌ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÒÑÒóÓßÖÑÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè North Benefit Area Impact Park Impact Pima County FeesFeesBond Capital Î»ª»²«»æ Sales tax $- $ -$ - Property tax - - - Intergovernmental 913,662 - - Licenses, fees & permits 367,689665,837 - Contributions 25,000 - - Investment income 118,722 - - Ì±¬¿´ ®»ª»²«» 367,689784,559938,662 Û¨°»²¼·¬«®»æ Current - General government 44,140 - - Capital outlay 59,130142,0701,435,492 Ì±¬¿´ »¨°»²¼·¬«®» 59,130186,2101,435,492 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» 308,559 598,349(496,830) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Face value of bonds issued - - - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ - - - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 308,559598,349(496,830) Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô ¾»¹·²²·²¹ ±º §»¿® 958,7123,113,186(327,054) Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô »²¼ ±º §»¿® $ 3,711,5351,267,271$ (823,884)$ 124 Sales Tax Gladden Farms Vanderbilt PAG CapitalCapitalCapitalFarms CapitalTotals $ 10,608-$ -$ -$$10,608 -35,0931,98637,079 - 1,009,208 --1,922,870 - --1,033,526 - - -75,000100,000 - - - 269,9732,215523391,433 1,009,208 280,581112,3082,5093,495,516 -235,619136279,895 - 2,168,859 169,2042,840,938-6,815,693 2,168,859 169,2043,076,5571367,095,588 (1,159,651) 111,377(2,964,249) 2,373(3,600,072) -3,075,000-3,075,000 - -3,075,000 3,075,000- - (1,159,651) 111,377110,7512,373(525,072) (1,764,332)4,933,652 24,745 23,8596,962,768 $(2,923,983)$5,045,029$135,496$26,232$6,437,696 125 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè North Benefit Area Impact Fees ariance - V OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Sales tax $ -$ -$ -$ - Property tax - - - - Intergovernmental - - - - Licenses, fees & permits 662,457662,457 367,689(294,768) Contributions - - - - Investment income 42,98142,981 - (42,981) Ì±¬¿´ ®»ª»²«» 705,438705,438 367,689(337,749) Û¨°»²¼·¬«®»æ Current - General government - - - - Culture and recreation - - - - Capital outlay 600,000600,000 59,130 540,870 Debt service - Bond issuance costs - - - - Ì±¬¿´ »¨°»²¼·¬«®» 600,000600,000 59,130540,870 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» 105,438 105,438 308,559 203,121 Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Face value of bonds issued - - - - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ - - - - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 105,438105,438 308,559203,121 Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 948,169 948,169 958,712 10,543 Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $1,053,607$1,053,607$1,267,271$ 213,664 126 Park Impact Fees ariance - V Original Positive BudgetFinal BudgetActual(Negative) $ - $ -$ -$ - - - - - - - - - 920,767 920,767 665,837(254,930) - - - - 158,890 158,890 118,722(40,168) 1,079,657 1,079,657 784,559(295,098) - - - - 120,000 120,000 44,14075,860 675,000 675,000 142,070532,930 - - - - 795,000 795,000 186,210608,790 284,657 284,657 598,349 313,692 - - - - - - - - 284,657 284,657 598,349313,692 3,215,423 3,215,423 3,113,186 (102,237) $3,500,080$3,500,080$3,711,535$ 211,455 (Continued) 127 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²¬·²«»¼÷ Pima County Bond Capital ariance - V Original Positive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Sales tax $- $ -$ -$ - Property tax - - - - Intergovernmental 4,960,0004,960,000 913,662(4,046,338) Licenses, fees & permits - - - - Contributions 25,00025,000 - - Investment income - - - - Ì±¬¿´ ®»ª»²«» 4,960,0004,960,000 938,662(4,021,338) Û¨°»²¼·¬«®»æ Current - General government - - - - Culture and recreation - - - - Capital outlay 4,960,0004,960,0001,435,4923,524,508 Debt service - Bond issuance costs - - - - Ì±¬¿´ »¨°»²¼·¬«®» 4,960,0004,960,0001,435,4923,524,508 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (496,830) - - (496,830) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Face value of bonds issued - - - - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ - - - - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» (496,830) - -(496,830) Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé (327,054) - - (327,054) Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ $ (823,884) $ - $ -(823,884) 128 PAG Capital ariance - V Original Positive BudgetFinal BudgetActual(Negative) $-$- $ -$ - -- - - 18,956,74018,956,740 1,009,208(17,947,532) -- - - - - - - - - - - 18,956,74018,956,740 1,009,208(17,947,532) -- - - -- - - 18,956,74018,956,740 2,168,85916,787,881 -- - - 18,956,74018,956,740 2,168,85916,787,881 (1,159,651) - -(1,159,651) -- - - - - - - (1,159,651) - -(1,159,651) (1,764,332) - - (1,764,332) $ $ (2,923,983) $ - $ -(2,923,983) (Continued) 129 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²¬·²«»¼÷ Sales Tax Capital ariance - V OriginalPositive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Sales tax $59,101$59,101$ 10,608$(48,493) Property tax - - - - Intergovernmental - - - - Licenses, fees & permits - - - - Contributions - - - - Investment income 86,42086,420 269,973183,553 Ì±¬¿´ ®»ª»²«» 145,521145,521 280,581135,060 Û¨°»²¼·¬«®»æ Current - General government - - - - Culture and recreation - - - - Capital outlay 5,000,0005,000,000 169,2044,830,796 Debt service - Bond issuance costs - - - - Ì±¬¿´ »¨°»²¼·¬«®» 5,000,0005,000,000 169,2044,830,796 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (4,854,479) (4,854,479) 111,377 4,965,856 Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Face value of bonds issued - - - - Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ - - - - Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» (4,854,479)(4,854,479) 111,377 4,965,856 Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 5,014,888 5,014,888 4,933,652 81,236 Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ 160,409160,409$ 5,045,029$ 5,047,092$ 130 Gladden Farms Capital ariance - V Original Positive BudgetFinal BudgetActual(Negative) $ -$ -$ -$ - 58,708 58,708 35,093(23,615) - - - - - - - - 323,000 323,000 75,000(248,000) 2,2152,215 - - 381,708 381,708 112,308(269,400) 417,000 417,000 235,619181,381 - - - - 2,995,208 2,995,208 2,840,938154,270 4,500 4,5004,500 - 3,416,708 3,416,708 3,076,557340,151 (3,035,000) (3,035,000) (2,964,249) 70,751 3,035,000 3,035,000 3,075,00040,000 3,035,000 3,035,000 3,075,000 40,000 110,751 - - 110,751 24,745 24,745 - - $ $ 135,496 $ - $ - 135,496 (Continued) 131 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÝÑÓÞ×Ò×ÒÙ ÍÝØÛÜËÔÛ ÑÚ ÎÛÊÛÒËÛÍô ÛÈÐÛÒÜ×ÌËÎÛÍ ßÒÜ ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ó ÞËÜÙÛÌ ßÒÜ ßÝÌËßÔ ó ÒÑÒóÓßÖÑÎ ÝßÐ×ÌßÔ ÐÎÑÖÛÝÌÍ ÚËÒÜÍ ÇÛßÎ ÛÒÜÛÜ ÖËÒÛ íðô îððè øÝ±²½´«¼»¼÷ anderbilt Farms Capital V ariance - V Original Positive BudgetFinal BudgetActual(Negative) Î»ª»²«»æ Sales tax $3,397$(3,397) $ -$ - Property tax 3,397 1,9861,986 - Intergovernmental - - - - Licenses, fees & permits - 1,000,000 - (1,000,000) Contributions 1,000,000 - - - Investment income 1,008 523(485) - Ì±¬¿´ ®»ª»²«» 1,003,3971,004,405 (1,001,896)2,509 Û¨°»²¼·¬«®»æ Current - General government 315,000315,000 136 314,864 Culture and recreation - - - - Capital outlay 2,795,0002,795,000 - 2,795,000 Debt service - Bond issuance costs - - - - Ì±¬¿´ »¨°»²¼·¬«®» 3,110,0003,110,000 3,109,864136 Û¨½» ø¼»º·½·»²½§÷ ±º ®»ª»²«» ±ª»® »¨°»²¼·¬«®» (2,106,603) (2,105,595) 2,373 2,107,968 Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷æ Face value of bonds issued 3,050,0003,050,000 - (3,050,000) Ì±¬¿´ ±¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ 3,050,000 3,050,000 - (3,050,000) Ý¸¿²¹» ·² º«²¼ ¾¿´¿²½» 943,397944,405 2,373(942,032) Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«´§ ïô îððé 23,859 23,859 - - Ú«²¼ ¾¿´¿²½» ø¼»º·½·¬÷ô Ö«²» íðô îððè $ 944,405943,397$ 26,232$ (918,173)$ 132 Totals ariance - V Original Positive BudgetFinal BudgetActual(Negative) $ 59,101$ 62,498$ 10,608$(51,890) 62,105 58,708 37,079(21,629) 23,916,74023,916,740 1,922,870(21,993,870) 1,583,224 2,583,224 1,033,526(1,549,698) 1,323,000 323,000 100,000(223,000) 288,291 289,299 391,433102,134 27,232,46127,233,469 3,495,516(23,737,953) 732,000 732,000 235,755496,245 120,000 120,000 44,14075,860 35,981,94835,981,948 6,815,69329,166,255 4,500 4,5004,500 - 36,838,44836,838,448 7,095,58829,742,860 (9,605,987) (9,604,979) (3,600,072) 6,004,907 6,085,000 6,085,000 3,075,000(3,010,000) 6,085,000 6,085,000 3,075,000 (3,010,000) (3,520,987) (3,519,979) (525,072)2,994,907 9,178,480 9,178,480 6,962,768 (2,215,712) $5,657,493$5,658,501$6,437,696$ 779,195 133 134 ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß ÍÌßÌ×ÍÌ×ÝßÔ ÍÛÝÌ×ÑÒ ÖËÒÛ íðô îððè Í¬¿¬·¬·½¿´ Í»½¬·±² Financial presentations included in the Statistical Section provide data and information on the financial, physical, a and economic characteristics of the Town of Marana. The following schedules cover multiple fiscal years and provide users with a broader and more complete understanding of the Town and its financial affairs and economic condition. They also present detailed infromation as a context for understanding this year's financial statements, note disclosures, and required supplementary information. SchedulePage Financial Trends hese schedules contain trend information to help users understand and assess how the Town' Ts financial position has changed over time. Net Assets by Component - Last Five Fiscal Years1137 Changes in Net Assets - Last Five Fiscal Years2138 Governmental Activities Tax Revenues by Source - Last Five Years3140 Fund Balances of Governmental Funds - Last Five Fiscal Years4141 Changes in Fund Balances of Governmental Funds - Last Six Fiscal Years5142 Revenue Capacity hese schedules contain information to help users understand and assess the Town's local revenue T source, the property tax. Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable Property - 6143 Last Ten Years Property Tax Rates - Direct and Overlapping Governments - Last Ten Years7144 and Nine Years Ago8145 Property Tax Levies and Collections - Last Ten Fiscal Years9146 Debt Capacity hese schedules present information to help users understand and assess the Town's debt burden T and its ability to service current debt and to issue additional debt in the future. Ratios of Outstanding Debt by Type - Last Ten Fiscal Years10147 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years11148 Direct and Overlapping Governmental Activities Debt12149 Pledged-Revenue Coverage - Last Ten Fiscal Years13150 Demographic and Economic Information hese schedules present economic and demographic indicators to help users understand the T environment within which the Town's financial activities take place. Demographic and Economic Statistics - Last Ten Fiscal Years14151 Principal Employers - Current Year and Nine Years Ago15152 Operating Information hese schedules present information to help users understand the Town's operations and resource Ts as well as to provide a context for understanding and assessing the Town's economic condition. Full-time Equivalent City Government Employees by Function - Last Five Fiscal Years16153 Other Information hese schedules present information to help users understand potential for growth and T economic opportunites within the town. Sales Tax by Industry - Last Five Years17154 Principal Retail and Contracting Sales Taxpayer18155 s Single Family Residential Permits Issued - Last Seven Years19156 135 136 ÑÉÒ ÑÚ ÓßÎßÒß Ì ÒÛÌ ßÍÍÛÌÍ ÞÇ ÝÑÓÐÑÒÛÒÌ ÔßÍÌ Ú×ÊÛ Ú×ÍÝßÔ ÇÛßÎÍ øß½½®«¿´ ¾¿· ±º ¿½½±«²¬·²¹÷ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ Fiscal Year * 20042005200620072008 (as restated) Governmental activities $159,963$184,386 Invested in capital assets, net of related debt $ 20,044$ 28,450$ 73,954 Restricted -59,31325,465 - 11,939 Unrestricted 25,044 (279) 31,044 33,018 22,320 Total governmental activities net assets 118,912218,998232,181 45,087 59,495 Business-type activities Invested in capital assets, net of related debt25,52232,341 11,749 11,657 14,990 Restricted - - - - 1,297 Unrestricted (2,091) (236) 131 966 (1,242) Total business-type activities net assets 15,12226,48832,396 9,658 11,421 Primary government Invested in capital assets, net of related debt 185,485216,737 31,792 40,107 88,944 Restricted -59,31326,762 - 11,939 Unrestricted 22,953 30,808 33,149 687 21,078 Total primary government net assets $245,485$264,577 $ 54,745$ 70,915$ 134,033 *The Town implemented Government Accounting Standards Board Statement #34 effective fiscal year 2003. Therefore, any presentation based on the accrual basis of accounting will reflect five years of historical data; in contrast to any presentation based on the modified accrual basis of accounting which reflect ten years of historical data. 137 ÌÑÉÒ ÑÚ ÓßÎßÒß ÝØßÒÙÛÍ ×Ò ÒÛÌ ßÍÍÛÌÍ ÔßÍÌ Ú×ÊÛ Ú×ÍÝßÔ ÇÛßÎÍ øß½½®«¿´ ¾¿· ±º ¿½½±«²¬·²¹÷ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ Fiscal Year* 20042005200620072008 Û¨°»²» Government activities: General government$10,134$12,925 $ 5,845$ 6,175$ 8,740 Development & planning services6,438 3,465 4,803 3,442 - Town Attorney401489 208 - - Public safety 5,305 6,309 8,948 9,187 11,215 Magistrate court 492 741 807 - - Highways and streets 3,294 4,086 5,510 15,898 10,269 Health & Welfare *** - - - - 130 Culture & recreation 2,079 2,642 3,307 3,557 3,978 Economic & community development**** 275 238 256 3 75 8,643 Interest on long-term debt 689 1,709 1,816 2,297 2,500 Total government activities expenses 27,10536,311 21,650 44,891 49,660 Business-type activities: Airport 391 564 837 1,028 1,196 Water 1,730 1,974 2,629 3,227 3,276 otal business-type activities expenses T 2,122 2,538 3,466 4,255 4,472 Total primary government expenses $29,643$39,777$49,146$54,132 $ 23,772 Ð®±¹®¿³ Î»ª»²«» Governmental activities: Charges for services: General government $ 1,797$ 696$ 472$ 1,108$ 899 Development & planning services 1,050 3,153 5,969 4,718 - own attorney T 70 26 13 - - Public safety 1,580 338 192 19 - Magistrate court 163 521 648 - - Highways and streets 801 3,933 590 5 - Health & Welfare - - - - - Culture and recreation 577 722 191 2 08 200 Economic & community development - 77 51 2,380 Operating grants and contributions 534 785 450 1,404 4,700 Capital grants and contributions 4,323 3,135 26,036 5,904 14,590 otal government activites program revenues T 10,894 13,385 34,614 13,365 22,768 Business-type activites: Changes for services: Airport 102 134 144 1 85 221 Water 1,552 2,375 3,216 2,905 2,968 Capital grants and contributions 729 595 3,531 9,073 6,885 otal business-type activity program revenues T 2,383 3,103 6,891 12,163 10,074 Total primary government program revenues16,48841,506 25,528 32,842 13,276 Net (expense)/revenue Governmental activities (13,720)(10,756) (1,697) (31,525) (26,892) Business-type activities 261 565 3,426 7,908 5,602 Total primary government net expense$ (13,155)(10,495)$ 1,729$$(23,618)$(21,290) 138 Fiscal Year* 20042005200620072008 Ù»²»®¿´ Î»ª»²«» ¿²¼ Ñ¬¸»® Ý¸¿²¹» ·² Ò»¬ ß»¬ Governmental activities: General revenues City sales taxes$30,900$27,173 $ 20,059$ 25,126$ 34,167 Property taxes - - - - 460 Franchise fees - - - - 309 Highway Users/Local Transit Assistance Funding 2,471 1,285 1,253 2,068 - State shared revenues 2,938 1,803 3,634 6,894 7,397 Pima Association of Governments Funding 1,418 - - - - Intergovernmental - - - 4,810 - System development fees - 115 3,588 2 31 - Investment income (loss) 602 757 1,835 4,463 3,024 Miscellaneous - - - 2 21 459 ransfers T - - - 4 70 (160) otal governmental activities T 27,489 29,088 44,476 50,057 38,661 Business-type activities: General revenues Investment income - - - - 110 Miscellaneous - - - - 37 ransfers (470) T - - - 160 otal business-type activities (470) T - - - 307 Total primary government29,08844,476 27,489 49,586 38,968 Ý¸¿²¹» ·² Ò»¬ ß»¬ Governmental activities 16,733 15,368 42,779 18,531 11,769 Business-type activities 261 565 3,426 7,437 5,909 Total primary government$15,933$46,204$25,968$17,678 $ 16,994 *The Town implemented Government Accounting Standards Board Statement #34 effective fiscal year 2003. Therefore, any presentation based on the accrual basis of accounting will reflect five years of historical data; in contrast to any presentation based on the modified accrual basis of accounting which reflect ten years of historical data. ** In prior fiscal years, 2003 through 2006, the functions of Town Attorney and Magistrate Court were reported separately. However, both functions have been consolidated as par of the General Government function, as per General Accounting and Financial Reporting standards. ***In prior fiscal years, 2003 througe 2008, programs and services offered by the Senior Center were included in the function of Culture and Recreation. Effective fiscal year 2008, these programs and services are reported under the function of Health and Welfare. ****In prior fiscal years, 2003 through 2007, the functions of Development and Planning Services and Economic Development were reported separately. Effective fiscal year 2008, the functions were consolidated under one function, Economic and Community Development. In prior fiscal years, Highway Users Revenues and Local Transportation Assistance Funds were reported as general revenues. Effective fiscal year 2008, these revenues are being reported as program revenues. 139 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÙÑÊÛÎÒÓÛÒÌßÔ ßÝÌ×Ê×Ì×ÛÍ ÌßÈ ÎÛÊÛÒËÛÍ ÞÇ ÍÑËÎÝÛ ÔßÍÌ Ú×ÊÛ Ú×ÍÝßÔ ÇÛßÎÍ øß½½®«¿´ ¾¿· ±º ¿½½±«²¬·² ÷ ¹ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ FiscalHighway User Year Sales TaxRevenue taxesTotal 2008$ 27,173$2,036$29,209 2007 30,9002,06832,969 2006 34,1671,25335,420 2005 25,1261,28526,411 2004 20,0592,47122,530 *The Town implemented Government Accountin Standards Board Statement #34 effective fiscal year 2003. g herefore, any presentation based on the accrual basis of accountin will reflect five years of historical data; Tg in constrast to any presentation based on the modified accrual basis of accountin which reflect ten years of g historical data. 140 141 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÝØßÒÙÛÍ ×Ò ÚËÒÜ ÞßÔßÒÝÛÍ ÑÚ ÙÑÊÛÎÒÓÛÒÌßÔ ÚËÒÜ Í ÔßÍÌ ÍÛÊÛÒ Ú×ÍÝßÔ ÇÛßÎ Í øÓ±¼·º·»¼ ¿½½®«¿´ ¾¿· ±º ¿½½±«²¬·²¹÷ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ Fiscal Year 2002200320042005200620072008 Î»ª»«» Sales taxes20,059$$27,173 $ 1 5,258$ 17,336$ $ 25,12634,167$ 30,900 Propety taxes - - - - - - 460 Intergovenmental revenues11,7376,62011,22714,69019,280 7,189 4,160 Licenses, fees and permits 10,1096,2013,341 5,380 6,065 6,264 7,914 Fines, forfeitures and penalties 362 313 365 481 628 767 808 Charges for services - 148 116 113 220 380 980 Lease Income - 456 442 438 498 20 987 Contributions - - - - - 379 1,457 System development fees3,588 355 - - - 1,721 - Investment earnings4,4453,025 959 (213) 602 7571,835 Miscellaneous 913484 199 719 518 5111,054 otal revenues 34,60930,92458,87463,09657,995 T 35,758 41,230 Û¨°»²¼·¬«®» General government 6,5338,4859,999 3,521 3,960 5,307 5,626 Public safety 7,1257,91010,500 4,070 4,254 4,865 5,325 Highways and streets3,1525,8683,897 2,987 3,102 2,365 2,833 Health and welfare - - - - - 130 Economic and community development5,6153,3454,910 4,519 2,578 3,101 4,050 Culture and recreation 2,5742,8943,267 1,399 1,673 1,705 2,045 own attorney T 371 354 208 365 427 - - Magistrate Court 386 441 480 557 704 - - Community development 306 316 275 202 217 343 - Capital outlay 14,10016,41413,06232,71057,213 18,808 29,084 Debt service Principal 1,4413,4503,4772,129 1,533 1,569 1,489 Interest 8071,7852,4533,121 758 689 1,611 Other charges - 4 4 505 465 - 1,184 otal expenditures 33,90935,38444,64468,67095,165 T 39,876 53,651 Excess of revenues over (under) expenditures(12,421)14,230(5,574)(37,171) 701 (4,461) (4,119) Ñ¬¸»® º·²¿²½·²¹ ±«®½» ø«»÷ ransfers in 4,6982,8264,195 T 8,680 16,498 12,211 39,766 ransfers out (8,680)(12,211)(39,766)(4,698)(2,355)(4,355) T (17,601) Bonds issued 3,075 - - 19,700 10,780 - 29,024 Note Proceeds - - - 7,000 - - - Lease purchase proceeds 591 - - - - - - Premium on bonds issued - - - 307 - - - Discount on bonds issued - - (111) - - - - Payments to refunded bond escrow agent - - - (6,644) - - - Residual equity transfer out (1,845) - - - - - - otal other financing sources (uses) (1,254)2,915 T (1,103) 19,589 11,443 - 29,494 Net change in fund balance $(553)$(5,564)$ (978)15,470$ 14,230$$(34,256) $ 2 3,920 Debt service as a percentage of noncapital expenditures12.8%13.8%15.1%17.0%19.9%24.7%16.1% 142 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÍÍÛÍÍÛÜ ÊßÔËÛ ßÒÜ ÛÍÌ×ÓßÌÛÜ ßÝÌËßÔ ÑÚ ÌßÈßÞÔÛ ÐÎÑÐÛÎÌÇ ß ÔßÍÌ ÌÛÒ Ú×ÍÝßÔ ÇÛßÎÍ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ Assessed FiscalTotalEstimatedValue as a ActualPercentage YearLess: Tax TaxableTotal EndedResidentialCommercialExempt Real AssessedDirect Tax Taxableof Actual RateValueValue June 30PropertyPropertyPropertyValue 2008296,761$$218,942$17,228$532,931$4,344,72412.3% $ 4.6291 2007225,022204,38116,0383,321,03012.4% 413,365 5.0674 2006164,013161,008 14,694310,3285.34062,456,87312.6% 2005126,136136,27014,1491,933,91112.8% 248,257 5.4611 2004104,736122,38013,6961,650,69412.9% 213,420 5.4967 200380,003115,95413,0791,363,83613.4% 182,878 5.4981 200263,610100,0547,1131,116,23814.0% 156,551 5.4998 200150,080 87,121 920,66314.1% 7,226 129,975 5.5828 200040,168 70,954 729,87814.4% 6,178 104,944 5.5635 199954,505 38,644 591,98114.8% 5,822 87,327 5.5651 SOURCE: Pima County Assessor's Office 143 144 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÐÎ×ÒÝ×ÐßÔ ÐÎÑÐÛÎÌÇ ÌßÈÐßÇÛÎÍ ÚÑÎ ÌØÛ ÇÛßÎ ÛÒÜ×ÒÙ ÖËÒÛ íðô îððè øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ 2008 Percentage of TaxableTotal taxable AssessedAssessed Value Rank Value Taxpayer Fidelity National Title TR 30212$2,300,637152.2% Fidelity National Title TR 60360339,49627.7% Fidelity National Title TR 60338328,00037.4% Smith Food & Dru Centers Inc324,15047.4% g Gladden 25 LLC282,24056.4% Weinarten Newquist LLC224,45265.1% g Freedber Barry & Freedbr Bella201,12074.6% g Miramonte Gladden Farms LLC170,77783.9% OS Realty LLC134,40093.0% itle Security Aency of AZ TR 891103,152102.3% Tg otals 4,408,424$ T Notes: he Town of Marana does not impose a property tax; principal property taxpayers represented above T reflect those properties within the boundaries of the Gladden Farms Community Facilities District, which does impose a property tax. Source: Pima County Assessor's Office - IS Dep t (Infomration Systems's Coordinator) 145 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÐÎÑÐÛÎÌÇ ÌßÈ ÔÛÊ×ÛÍ ßÒÜ ÝÑÔÔÛÝÌ×ÑÒÍ ÔßÍÌ ÌÛÒ Ú×ÍÝßÔ ÇÛßÎÍ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ Collected within the Fiscal Year of the LevyTotal Collections to Date Fiscal Year Ended June Total Tax Levy for PercentagePercentage of 30Fiscal YearAmountof LevyAmountLevy 2008$ 688$68799.70%$ 68699.70% 2007 28728699.70% 28699.70% 2006 646297.54% 100.00%64 2005 8 99.96%8 100.00%8 2004 -- - - - 2003 -- - - - 2002 -- - - - 2001 -- - - - 2000 -- - - - 1999 -- - - - Notes: he Town does not impose a property tax; levies and collections presented above reflect assessments T directly related to the Gladden Farms Community Facilities District. Prior to fiscal year 2005, the CFD did not exist; therefore, no levies or collections are presented in fiscal years 2004 and prior. Source: Pima County Treasurer's Office 146 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÎßÌ×ÑÍ ÑÚ ÑËÌÍÌßÒÜ×ÒÙ ÜÛÞÌ ÞÇ ÌÇÐÛ ÔßÍÌ ÌÛÒ Ú×ÍÝßÔ ÇÛßÎÍ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼ô »¨½»°¬ °»® ½¿°·¬¿ ¿³±«²¬÷ Governmental Activities GeneralTotalPercentage RevenueObligationCapitalPrimaryof Personal Fiscal Year BondsBonds*LeasesGovernmentIncome **Per Capita 2008 $ 29,225$ 8 ,385$ 115$ 37,725151.6%$ 1,258 2007 3 0,460 5,355 154 35,969134.7% 1,199 2006 3 1,835 2,105 - 33,940118.2% 1,131 2005 3 3,395 2,105 - 35,500132.9% 1,328 2004 3 2,100 - 154 32,254129.6% 1,396 2003 1 3,780 - 199 13,97961.3% 685 2002 1 5,080 - 544 15,62471.3% 863 2001 1 6,330 - - 16,33076.4% 1,040 2000 1 7,515 - 50 17,56585.6% 1,236 1999 7,930 - 122 8,05242.2% 613 Notes: * Bonds issued for Gladden Farms Facilities District FY 05, a component unit of the Town. Principal debt payoff does not be in until fiscal year 2008. g ** Indivdiual statistics not available for Marana, included in fi ures for Pima County and Tucson g Metropolitan area. Source: US Census Bureau, Bureau of Economic Analysis 147 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÎßÌ×ÑÍ ÑÚ ÙÛÒÛÎßÔ ÞÑÒÜÛÜ ÜÛÞÌ ÑËÌÍÌßÒÜ×ÒÙ ÔßÍÌ ÌÛÒ Ú×ÍÝßÔ ÇÛßÎÍ øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼ô »¨½»°¬ °»® ½¿°·¬¿ ¿³±«²¬÷ Less: AmountsPercentage of GeneralAvaliable in Estimated Actual ObligationDebt Service Taxable Value of Per BondsFundTotal Fiscal Year propertyCapita 2008$8,385$2,180$6,2050.19%18.6% 2007 5,3552,2573,098 0.13%10.3% 2006 2,1052,03174 0.00%0.2% 2005 2,1052,105 0.11%7.9% - 2004 - - -0.00% - 2003 - - -0.00% - 2002 - - -0.00% - 2001 - - -0.00% - 2000 - - -0.00% - 1999 - - -0.00% - Notes: he Town of Marana does not impose a property tax; any property taxes presented in this report are T directly related to the Gladden Farms Community Facilities District, formed in fiscal year 2005. Consequently, no eneral obliation bonds were issued by the District until fiscal year 2005. gg 148 ÑÉÒ ÑÚ ÓßÎßÒ Ìß Ü×ÎÛÝÌ ßÒÜ ÑÊÛÎÔßÐÐ×ÒÙ ÙÑÊÛÎÒÓÛÒÌßÔ ßÝÌ×Ê×Ì×ÛÍ ÜÛÞÌ Í ÑÚ ÖËÒÛ íðôîððè ß øß³±«²¬ »¨°®»»¼ ·² ¬¸±«¿²¼÷ Estimated DebtPercentageEstimated Share of OutstandingApplicableOverlapping Debt Governmental Unit State of ArizonaNone0.58%None Pima County$ 4.52%19,596,377389,590,000$ Pima County Community Colle e District51,155,0004.52%2,573,097 g Pima County Flood Control Distric 1,470,0005.08%82,026 t Metropolitan Domestic Water Improvement DistrictNone71.11%None Northwest Fire Distric 38.25%11,023,31026,575,000 t Gladden Farms Community Facilities Distric 8,385,000100.00%8,385,000 t Red Hawk Community Facilities District None100.00%None anerine Farms Road Improvement Distric 100.00%25,774,00025,774,000 Tgt Flowin Wells Unified School District No. 89,590,000100.00%18,786,810 g Marana Unfied School District No. 661,085,00052.32%33,645,618 own of Marana *None100.00%None T $ 119,866,238 otal direct and overlappin deb Tgt Notes: * Does not include the Municipal Property Corporation municipal facilities revenue bonds outstandin in the g a reate principal amount of $29,240,000. Does not include the Bonds. ggg Sources: The various entities 149 150 151 ÌÑÉÒ ÑÚ ÓßÎßÒß ÐÎ×ÒÝ×ÐßÔ ÛÓÐÔÑÇÛÎÍ ÝËÎÎÛÒÌ ÇÛßÎ ßÒÜ Ò×ÒÛ ÇÛßÎÍ ßÙÑ 20081999 Percentage of Percentage of Total City Total City EmploymentEmployment Employees Employees Û³°´±§»® Marana Unified School District18.1% 1,77624.1% 1,212 Army Reserve/National Guard Training Center 2.4% 205 2.8% 161 Evergreen Air Center, Inc.9.6% 4235.7% 643 Wal-Mart6.1%-0.0%(2) 450 Town of Marana2.2% 3675.0% 145 Costco2750.0%(1) 3.7% - Sargent Controls & Aerospace2443.2% 3.3% 216 Target0.0%(1) 2253.1% - Comcast of Arizona1892.2% 2.6% 145 Coca-Cola Bottling3.2% 1852.5% 213 Trico Electric Co-operative1350.0%(1) 1.8% - Notes: (1) 1998 Profile unavailable (2) New business opened FY 2003 152 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÚËÔÔóÌ×ÓÛ ÛË×ÊßÔÛÒÌ ÌÑÉÒ ÙÑÊÛÎÒÓÛÒÌ ÛÓÐÔÑÇÛÛÍ ÞÇ ÚËÒÝÌ×ÑÒ Ï ÔßÍÌ Ú×ÊÛ Ú×ÍÝßÔ ÇÛßÎÍ 20042005200620072008 Ú«²½¬·±² General Government 64.0 41.5 41.5 54.558.0 Development & plannin services - g 39.0 50.5 51.551.5 Public Safety Police---- Officers 84.0 67.0 71.0 82.084.0 Civilians 20.0 29.5 21.0 27.029.0 Buildin Safet----19.0 gy Hihways and streets - g 31.0 32.0 35.036.0 Enineerin 13.0 40.8 gg 18.5 20.522.0 Maintenance----35.0 Culture and recreation 49.8 35.8 35.5 41.049.3 Community Developmen t 1.0 1.0 1.0 3 .0 - Economic & community developmen t - - - - 18.0 Water Utilities 19.0 11.0 14.0 18.518.0 Municipal Airpor t 2.0 2.0 2.0 2 .0 3.0 otal 261.3287.0333.0352.8 362.0 T Source: Town of Marana, Human Resources Department 153 154 ÑÉÒ ÑÚ ÓßÎßÒ Ìß ÐÎ×ÒÝ×ÐßÔ ÎÛÌß×Ô ßÒÜ ÝÑÒÌÎßÝÌ×ÒÙ ÍßÔÛÍ ÌßÈÐßÇÛÎÍ Í ÑÚ ÖËÒÛ íðô îððè ß Fiscal Year 2008Fiscal Year 2005 PercentaPercenta ge of ge of Sales Tax Total Sales Sales Tax Total Sales PaymentsRankTax PaymentsPaymentsRankTax Payments ÎÛÌß×Ô axpayerA1,655,581$ 16.1%1,733,396$ 16.9% T axpayerB1,148,426 24.2%1,192,85124.7% T axpayerC 651,58432.4%840,01533.3% T axpayerD 625,85442.3%591,45752.4% T axpayerE 550,14352.0%685,47642.7% T axpayerF 431,40761.6% T axpayerG 428,40771.6%538,59062.1% T axpayerH 360,99881.3% T axpayerI 304,46391.1%359,53871.4% T axpayerJ 191,998100.7% T axpayerK81.3% T 338,849 axpayerL90.8% T 201,110 axpayerM100.6% T 158,555 $6,348,86123.3%6,639,837$ 26.2% ÝÑÒÌÎßÝÌ×ÒÙ axpayerA$ 971,31413.6%$647,80132.6% T axpayerB 751,351111.3% T 22.8% 2,848,947 axpayerC 708,43032.6% T axpayerD 392,24141.4% T axpayerE 380,77751.4% T axpayerF 290,37861.1%505,61942.0% T axpayerG 380,87471.4% T axpayerH 271,58681.0% T axpayerI 268,55091.0% T axpayerJ 241,352100.9% T axpayerK24.0% T 1,008,932 axpayerL51.6% T 398,134 axpayerM61.6% T 393,308 axpayerN71.4% T 361,226 axpayerO81.0% T 250,964 axpayerP90.9% T 229,312 axpayerQ100.9% T 225,784 $4,656,85317.2%6,870,027$ 27.3% Source: Town of Marana Finance Department, Arizona Department of Revenue 155 ÌÑÉÒ ÑÚ ÓßÎßÒß Í×ÒÙÔÛ ÚßÓ×ÔÇ ÎÛÍ×ÜÛÒÌ×ßÔ ÐÛÎÓ×ÌÍ ÔßÍÌ Û×ÙØÌ Ú×ÍÝßÔ ÇÛßÎÍ Ó±²¬¸ 20012002200320042005200620072008 January 538310181130523511 February 50629971129448327 March65871051051801345312 April687012952203685550 May81105138136222618118 June664799108123756528 July8112299140168925121 August7387123134143995076 September907096175149273027 October65728614113934357 November5055551197961135 December46102761361065928 Calendar Total 788 9621,2061,3981,771 806 579 282 Fiscal Total 712 8591,1791,0881,8321,218 744 353 Source: Town of Marana Finance Department, Town of Marana Building Services 156 Town of Marana 11555 W. Civic Center Drive Marana, Arizona 85653 Phone: 520-382-1900 Fax: 520-382-1901 www.marana.com