HomeMy WebLinkAbout2011 Financial Statement June 30ÌÑÉÒ ÑÚ ÓßÎßÒßô ßÎ×ÆÑÒß
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TOWN OF MARANA, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
Issued by:
Finance Department
_____________________________
11555 W. Civic Center Dr., A3
Marana, Arizona 85653
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal i
Certificate of Achievement for Excellence in Financial Reporting vi
Principal Officials vii
Senior Staff vii
Organizational Chart viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information) 5
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Assets 23
Statement of Activities 24
Fund Financial Statements:
Balance Sheet – Governmental Funds 28
Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Assets 31
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 32
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds to the
Statement of Activities 35
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS (Cont’d)
FINANCIAL SECTION (Cont’d) Page
BASIC FINANCIAL STATEMENTS (Concl’d)
Statement of Net Assets – Proprietary Funds 36
Statement of Revenues, Expenses and Changes in Fund Net Assets –
Proprietary Funds 37
Statement of Cash Flows – Proprietary Funds 38
Notes to Financial Statements 41
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
(Required Supplementary Information)
General 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:
Transportation Fund 77
PAG Capital 78
Other Capital Projects Fund 79
Tangerine Farms Road Improvement District Debt Fund 80
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 83
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS (Concl’d)
FINANCIAL SECTION (Concl’d) Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES (Concl’d)
Non-Major Special Revenue Funds:
Combining Balance Sheet 86
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 88
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual 90
Non-Major Capital Projects Funds:
Combining Balance Sheet 100
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 102
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual 104
Non-Major Debt Service Fund:
Combining Balance Sheet 114
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 116
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual 118
STATISTICAL SECTION
Statistical Section 125
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December 21, 2011
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, 2011.
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’sfinancial 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,
2011, 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,
2011, 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.
i
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.
Profile of the Town
The Town of Marana, incorporated in 1977, is located in northern Pima County and has
historically been 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 35,000.
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.
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 302 employees is
responsible for the functions and operations of the Town government.
ii
Economic Condition and Outlook
The national and local economies continued to stabilize during the current fiscal year.
There were signs of stabilization for many key revenue streams during the fiscal year
ending June 30, 2011. Certain revenue categories like building permit revenues and sales
taxes appear to be making modest recovery.However, the Town expects that any form of
recovery will occur very slowly and take several years. These factors were included in the
Town’s multi-year revenue forecasts which provided the basis of the fiscal year 2011-12
budget. The Town’s budget is structurally balanced with ongoing revenues supporting
ongoing expenditures. One-time revenues like contracting transaction privilege taxes and
building permits support one-time expenditures. Although the Town has seen slight
stabilization in economically sensitive revenues, the revenue forecast for fiscal year 2011-
12 anticipates a modest continuation of the slow recovery seen in the current year.
Current Condition
The economy began showing modest signs of stabilization during the second half of fiscal
year 2010. Despite this, it was apparent that the Town would have to take additional cost
saving measures. This was incorporated into the fiscal year 2010-11 budget which
included an overall reduced budget with resources being allocated to key programs and
initiatives in alignment with the Town’s strategic plan. A combination of ongoing and one-
time current year reductions in the General Fund expenditure budget totaled $2.5 million.
During the fiscal year the economic recovery plan concept was introduced as a way to
guide decisions made during future year’s budgetary processes. This plan is based upon
an economic analysis that anticipates a slow multi-year recovery. The financial
performance of the Town as a whole is reflected in its governmental funds. As of June 30,
2011, the Town’s governmental funds reported a combined fund balance of $44.5 million,
of which $16.1 million is unreserved and available for spending at the Town’s discretion.
The Town, like most municipalities, is significantly dependent upon transaction privilege tax
revenues which are subject to economic fluctuations. Transaction privilege tax revenues
comprised 66% of general fund revenues. Of those revenues, retail, construction and
utilities comprised 78% of total transaction privilege tax revenues. As described above,
sales taxes and revenues related to the residential and commercial construction industry
showed signs of recovery during the fiscal year.
Future Economic Outlook
Despite the significant slowdown in development during the previous few years, certain key
activities and revenues associated with those activities have shown consistent signs of
stabilization. In both current year budget reductions and in the development of the 2011-
12 budget, the Town has worked to maintain essential service delivery and position the
Town to take advantage of the eventual economic recovery. Once the economy rebounds,
Marana will have significant commercial, industrial and residential growth due to the
abundance of developable land.
iii
Accomplishments and Initiatives
During fiscal year 2011, the Town completed several significant projects.
Twin Peaks Interchange – This project which began in the spring 2009 will provide for a
brand new interchange and bridge over the Santa Cruz river. This infrastructure will
provide for increased circulation and access to the Continental Ranch and Continental
Reserve portions of our community. Additionally, the new interchange and improved
access will provide the traffic flow necessary to support new commercial development
around the interchange.
Camino de Manana Road – This project which essentially runs from the new Twin Peaks
interchange northerly to Tangerine Road, will provide for a new four lane divided roadway
and connect the Dove Mountain community to the I-10 interstate and Continental
Ranch/Reserve areas.
Expenditure Limitation
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 19, 2009, the voters of the Town approved an alternative expenditure limitation,
the effect of which is that the total budgeted expenditures of each yearly budget becomes
the expenditure limitation for that year on a total budget basis. This alternative
expenditure limitation is effective for four years.
Single Audit
As a recipient of Federal, State and County financial assistance, the Town is responsible for
ensuring that adequate internal controls are in place to ensure compliance with applicable
laws, regulations, contracts and grants related to those programs. Internal control is
subject to periodic evaluation by management.
As part of the Town’s single audit described earlier, tests are made to determine the
adequacy of the internal controls, including that portion related to Federal financial
assistance programs, as well as to determine that the Town has complied with applicable
laws and regulations.
iv
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TOWN OF MARANA, ARIZONA
PRINCIPAL OFFICIALS OF THE TOWN OF MARANA
FISCAL YEAR 2011
MAYOR AND COUNCIL
Ed Honea, Mayor
Herb Kai, Vice Mayor Roxanne Ziegler, Councilmember
Dave Bowen, Councilmember Patti Comerford, Councilmember
Carol McGorray, Councilmember Jon Post, Councilmember
MANAGEMENT STAFF
Gilbert Davidson, Town Manager
Del Post, Deputy Town Manager
DEPARTMENT HEADS
Kevin Kish, Development Services General Barbara Johnson, Public Services General
Manager
Manager
Jocelyn Bronson, Town Clerk Frank Cassidy, Town Attorney
Keith Brann, Town Engineer Erik Montague, Finance Director
Orville Saling, Interim Public Works Director Vacant, Airport Manager
Terry Rozema, Police Chief Charles Davies, Town Magistrate
T. VanHook, Community Development Director Vacant, Technology Services Director
Tom Ellis, Parks and Recreation Director Dorothy O’Brien, Utilities Director
Suzanne Machain, Human Resources Director
vii
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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 the Town of Marana (the Town), Arizona, as of and for the year
ended June 30, 2011, 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 an opinion
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, 2011, and the respective
changes in financial position and, where applicable, cash flows 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.
In accordance with Government Auditing Standards, we have also issued our report
dated December 21, 2011 on our consideration of the Town’s internal control over
financial reporting and our tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report in considering
the results of our audit.
Accounting principles generally accepted in the United States of America require that
the management’s discussion and analysis on pages 5 through 18 be presented to
supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted
in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence
to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the Town’s financial statements as a whole.
The introductory section, combining and individual nonmajor fund financial
statements, and statistical section are presented for purposes of additional analysis
and are not a required part of the financial statements. The combining and individual
nonmajor fund financial statements are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used
to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the information is fairly stated in all material
respects in relation to the financial statements as a whole. The introductory and
statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Casa Grande, Arizona
December 21, 2011
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
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TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
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, 2011. We encourage readers to consider the
information presented here in conjunction with additional information that we have
furnished in our letter of transmittal, which can be found in the introductory section of this
report.
FINANCIAL HIGHLIGHTS
The Town’s total net assets of governmental activities increased by $4.2 million
which represents a 1.6 percent increase from fiscal year 2009-10. This increase is
primarily attributable to the increase in capital grants and contributions revenues
related to highways and streets projects.
General revenues from governmental activities accounted for $30.8 million in
revenue, or 58.6 percent of all revenues from governmental activities. Program
specific revenues in the form of charges for services and grants and contributions
accounted for $21.7 million, or 41.4 percent of total governmental activities. The
Town had $5.9 million of program revenues related to business-type activities.
The Town had approximately $48.3 million in expenses related to governmental
activities; of which $21.7 million of these expenses were offset by program specific
charges for services or grants and contributions. General revenues of $30.8 million
were adequate to provide for the remaining costs of these programs.
Among major funds, the General Fund had $31.0 million in fiscal year 2010-11
revenues, which primarily consisted of sales taxes, intergovernmental revenue and
licenses, fees and permits. The General fund had $29.8 million of expenditures and
required transfers during the year. The $1.3 million fund balance growth was due
to the cost reduction strategies implemented throughout the fiscal year.
The Transportation Fund had $2.4 million in fiscal year 2010-11 revenues, primarily
consisting of contracting sales taxes.The Transportation Fund’s fund balance
decreased from $3.8 million as of June 30, 2010 to $3.2 million as of June 30, 2011
due to increased capital activity during the fiscal year.
Fund balance in the Other Capital Projects Fund decreased by $1.0 million in fiscal
year 2010-11, primarily due to the expenditure of bond proceeds required to
complete major capital projects.
Tangerine Farms Road Improvement District Debt Service Fund, which accounts for
special assessments, had a $613,073 fund balance attributable to the accumulation
prepaid assessments and resources required for the July 2011 debt service
payment.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town’s basic
financial statements. The Town’s basic financial statements comprise three components:
1) government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government-wide financial statements.The government-wide financial statements
are designed to provide readers with a broad overview of the Town’s finances, in a manner
similar to 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,
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
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 23-25 of this report.
Fund financial statements. Also presented are the financial statements for
governmental funds and proprietary funds. A fund is a grouping of related accounts that is
used to maintain control over resources that have been segregated for specific activities or
objectives. The Town uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. All of the funds of the Town can be divided into two
categories: governmental funds and proprietary funds.
Governmental funds.Governmental 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, Transportation, PAG Capital, Other Capital Projects and Tangerine Farms Road
Improvement District Debt Service all of which are considered to be major funds. Data
from the other governmental funds are combined into a single, aggregated presentation.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
Individual fund 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, Transportation Fund, PAG Capital Fund, Other Capital Projects Fund
and Tangerine Farms Road Improvement District Debt Service Fund, and other non-major
governmental funds. Budgetary comparison schedules have been presented for the
Town’s major funds (pages 70-80), 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 28-38 and 82-
123 of this report.
Proprietary funds. Proprietary funds are used to account for services primarily
supported by user charges and fees. The Town maintains one type of proprietary fund.
Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The Town uses enterprise funds to
account for its water and airport services.Proprietary funds provide the same type of
information as the government-wide financial statements, only in more detail.
Notes to the financial statements.The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements. The notes to the financial statements can be found immediately
following the basic financial statements.
Required supplementary information other than MD&A.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 11 Employee
Retirement Systems on page 60 rather than separately presenting the information as
required supplementary information.
Other Information.During the year ended June 30, 2011, the Town implemented the
provisions of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund
Type Definitions. GASB Statement No. 54 establishes standards for financial reporting,
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
including note disclosures requirements, for fund balance classifications of the
governmental funds and clarifies existing governmental fund type definitions. Additional
information on the fund balance classifications, components of fund balance, and other
information related to fund balance can be found in Note 2.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets may serve over time as a useful indicator of a government’s financial position.
In the case of the Town, assets exceeded liabilities by $302.9 million as of June 30, 2011.
Net Assets.The majority of the Town’s net assets reflect its investment in capital assets
(land, building and improvements, infrastructure, 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, 2011 and June 30, 2010.
Governmental ActivitiesBusiness-type ActivitiesTotal
201120102011201020112010
Current and other assets$74,331,927$73,639,545$(1,381,161)$(4,639,555)$ 72,950,766$ 68,999,990
Capital assets, net292,882,930292,780,91846,734,24445,872,071 339,617,174338,652,989
Total assets, net367,214,857366,420,46345,353,08341,232,516 412,567,940407,652,979
Current and other liabilities6,212,99011,359,8121,008,8451,378,075 7,221,83512,737,887
Long-term liabilities97,650,40095,951,7224,806,0511,357,030 102,456,45197,308,752
Total liabilities103,863,390107,311,5345,814,8962,735,105 109,678,286110,046,639
Net assets:
Invested in capital assets, net of
related debt196,325,785193,720,71142,148,18944,310,338 238,473,974238,031,049
Restricted28,136,55425,458,65373,097 28,209,651- 25,458,653
Unrestricted38,889,12839,929,565(2,683,099)(5,812,927) 36,206,02934,116,638
Total net assets
$263,351,467$259,108,929$39,538,187$38,497,411$ 302,889,654$297,606,340
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
The Town’s net assets increased by $5.3 million or 1.8 percent in fiscal year 2011.
Investment in capital assets of $238.5 million or 78.7 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 had a slight increase of $442,925 as of June 30, 2011, which is
primarily a result of the acquisition and construction of infrastructure assets and related
improvements.
The second portion of net assets of $28.2 million or 9.3 percent represents resources that
are subject to external restrictions on how they may be utilized. The increase of $2.0
million or 7.7 percent is due primarily to the increase in intergovernmental revenues in the
PAG capital fund. Of the $28.2 million in restricted net assets, $26.4 million is restricted by
enabling legislation.
The third portion consists of unrestricted net assets of $36.2 million or 12.0 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.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
Changes in net assets.The Town’s total revenues for the fiscal year ended June 30,
2011, were $58.3 million. The total cost of all programs and services was $53.0 million.
The following table presents a summary of the changes in net assets for the fiscal years
ended June 30, 2011 and June 30, 2010.
Governmental ActivitiesBusiness-type ActivitiesTotal
201120102011201020112010
Revenues:
Program revenues:
Char
ges for services$ 3,226,082$ 3,124,614$3,341,708$ 3,270,070$ 6,567,790$ 6,394,684
Operatinggrants and contributions3,554,7874,220,925- 43,554,787,220,925
-
Capital grants and contributions14,962,65111,618,126 2,668,9273,489,437 17,631,578 15,107,563
General revenues:
Sales taxes22,947,818 21,662,077 - - 22,947,818 21,662,077
Property taxes583,853 622,825 - - 583,853 622,825
Franchise taxes322,322 313,435 - - 322,322 313,435
State shared revenues5,719,084 6,462,604 - - 5,719,084 6,462,604
Investment income104,504 134,5487711,131 105,275 135,679
Miscellaneous revenues814,058 773,724 3,57837,720 817,636 811,444
Total revenues 48,932,87852,235,159 6,014,984 6,798,358 58,250,143 55,731,236
Expenses:
General government10,642,782 14,638,461 - - 10,642,782 14,638,461
Public safety 109,043,953,674,929- 109,043,953,674,929
-
Hi
ghways and streets 1415,424,877,986,484 - 1415,424,877 ,986,484
-
Health and welfare 10185,603,510- 10185,603,510
-
Economic and community
development4,595,682 4,834,969 4,595,682 4,834,969
Culture and recreation3 3,335,352,942,685- 33,335,352,942,685
-
Interest on lon
g-term debt 8655,173,406,186 - 8655,173,406 ,186
-
Water- - 3 3,392,071,803,346 33,392,071,803,346
Airport - 1,273,103- 1,135,670 1,273,103 1,135,670
Total expenses 48,301,655 50,044,224 4,665,174 4,939,016 52,966,829 54,983,240
Increase/(decrease) in net
assets before transfers 3,933,504 (1,111,346) 1,349,810 1,859,342 5,283,314 747,996
Transfers 309,034 291,023 (309,034) (291,023) - -
ncreaseecreasen net
I/(d)i
assets$ (820,323)4,242,538$ 1,040,776$ 1,568,319$ 5,283,314$ 747,996$
Governmental Activities.Governmental activities increased net assets by $4.2 million
for fiscal year ended June 30, 2011. The overall increase in net assets during the year is
attributable, to an increase in local sales tax revenues, as well as an increase in revenues
related to capital grants and contributions.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
General revenues of governmental activities of $30.5 million increased by $522,426 or 1.7
percent from the previous year. This increase is primarily attributable to increased sales
tax revenue collections in fiscal year 2011 from the year earlier.
Program revenues of $21.7 million increased by $2.8 million from the previous year. This
increase is largely due an increase in the capital grants and contributions revenues related
to the Twin Peaks Interchange project.
The following table presents the cost of the nine major Town functional activities. The
table also shows each function’s net cost (total cost less charges for services generated by
the activities and intergovernmental aid provided for specific programs). The net cost
shows the financial burden that was placed on the State and Town’s taxpayers by each of
these functions.
Year Ended June 30, 2011Year Ended June 30, 2010
TotalNet (Expense)/TotalNet (Expense)/
ExpensesRevenueExpensesRevenue
Governmental Activities
General government$ 10,642,782$(9,018,208)$14,638,461$(12,791,041)
Public safety 9,043,953(8,305,764)10,674,929 (10,073,355)
Highways and streets 15,424,877(1,959,879)14,986,484 (4,696,595)
Health and welfare 85,603(69,058)101,510 (89,327)
Economic and community
development 4,595,68218,7434,834,969 (87,927)
Culture and recreation 3,335,352(2,050,563)3,942,685 (2,477,128)
Interest on long-term debt 5,173,406(5,173,406)865,186(865,186)
Total$ 48,301,655$(26,558,135)$50,044,224$(31,080,559)
Business-Type Activities
Water$ 3,392,071$2,345,692$3,803,346$ 1,942,112
Airport 1,273,103(1,000,231)1,135,670(121,621)
Total$ 4,665,174$1,345,461$4,939,016$ 1,820,491
The cost of all governmental activities this year was $48.3 million and the cost of all
business-type activities this year was $4.6 million. The decreases are primarily due
to the cost reduction strategies implemented during the fiscal year.
Federal and State governments, contributions and charges for services subsidized
certain programs with grants, contributions and other local revenues of $21.7
million.
Net cost of governmental activities ($21.6 million) was financed by general
revenues, which are made up of primarily sales taxes totaling $22.9 million.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
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 $21.7 million are 45.0 percent of expenses for fiscal
year 2011, up from 36.2 percent a year earlier. As described earlier, this increase is
primarily attributable to an increase in the capital grants and contributions revenues
related to the Twin Peaks Interchange project.
As seen on the following graphs, the largest revenue source for the Town’s governmental
activities is sales tax revenues at 43.9 percent followed by capital grants and contributions
at 28.6 percent and State shared revenues at 10.9 percent. The Town’s largest expense
category is highways and streets at 31.9 percent, followed by general government at 22.0
percent and public safety at 18.7 percent.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
Business-type Activities
Business-type activities increased the Town’s net assets by $1.0 million for fiscal year
ended June 30, 2011. The overall increase in net assets during the year is primarily
attributable to capital grants and contributions.
Charges for services increased by 2.2 percent due primarily to the implementation of rate
increases during the year. Capital grants and contributions decreased by $820,510 or 23.5
percent from a year earlier due to reduced development impact fees and reduced capital
grant revenues related to capital projects at the Airport.
The Town’s largest overall business-type activity is the Water Utility with $3.3 million in
expenses and $3.3 million in program revenues during the year, followed by the Airport
with $1.3 million in expenses and $0.2 million in program revenues.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental Funds. The focus of the Town’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the Town’s financing requirements. In particular,
unreserved fund balance may serve as a useful measure of the Town’s net resources
available for spending at the end of the fiscal year.
The financial performance of the Town as a whole is reflected in its governmental funds.
As of June 30, 2011, the Town’s governmental funds reported a combined fund balance of
$44.5 million, of which $16.1 million is unassigned 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 $16.4 million. Revenues in the General Fund increased by $297,443 or 0.9 percent from
the previous fiscal year.
The Transportation Fund had a fund balance of $3.2 million which reflected a decrease of
$599,713 from a year earlier. This decrease is primarily due to an increase in transfers out
during the year to meet debt service requirements.
Other Capital Projects Fund had a fund balance at the year of the year of $2.4 million and
reflects a $1.0 million decrease due to the spending of bond proceeds related to the
Marana Municipal Property Corporation Revenue Bonds, Series 2008A and 2008B.
Proprietary funds. The proprietary funds in the financial statements are prepared on the
same measurement focus and accounting basis as the government-wide financial
statements, but they provide more detail since each major enterprise fund is presented
discretely. Of the total proprietary funds net assets of $39.5 million, $42.1 million
comprised the funds’ investment in capital assets and unrestricted net assets of $(2.6)
million. The factors concerning the finances of these funds, as well as the changes in net
assets, have been addressed previously in the discussion of the Town’s business-type
activities.
BUDGETARY HIGHLIGHTS
The Town’s annual adopted budget established the legal level of expenditure control.
Budgetary comparison statements are required for the General Fund and all major special
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
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 economy continued to struggle for the first half of the fiscal year. General Fund
revenues were projected to fall short of budget projection due to the severity of the
deepening recession. As a result, the Town began a series of cost saving measures early
in the fiscal year to mitigate the impacts of the revenue shortfall. Through these
measures, the Town reduced departmental expenditure budgets by approximately $2.5
million. The General Fund budget and actual variances are shown on page 64.
Amendments to the adopted budget may occur throughout the year between departments
within the General Fund and between funds in all other funds in a legally permissible
manner (see Note 3 – Budgetary Control).Budget adjustments between departments in
the General Fund did occur. However, none of the amendments were significant.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. As of June 30, 2011, the Town had invested $238.5 million in
governmental and business-type capital assets (net of accumulated depreciation). Total
depreciation expense for the year was $15.1 million, with $13.4 million attributed to
governmental activities and $1.7 million to business-type activities.
The following schedule presents capital asset balances for the fiscal years ended June 30,
2011 and June 30, 2010. Additional information on the Town’s capital assets can be found
in Note 7.
Governmental ActivitiesBusiness-type ActivitiesTotal
As of As of As of As of As of As of
June 30, 2011June 30, 2010June 30, 2011June 30, 2010June 30, 2011June 30, 2010
Land$ 3,491,030$ 3,491,030$ 1,614,924$ 1,614,924$ 5,105,954$ 5,105,954
Water rights - 2,289,278- 1,884,243 2,289,278 1,884,243
Construction in progress 65,494,437 54,274,071 3,645,966 4,101,40769,140,403 58,375,478
Buildings and improvements 44,026,833 43,862,377 47,704,558 45,170,19491,731,391 89,032,571
Machinery and equipment 18,067,456 17,792,438 599,359 500,69118,666,815 18,293,129
Infrastructure253,116,064251,869,455 - 39,388253,116,064251,908,843
Less: Accumulated depreciation(91,312,890)(78,508,453) (9,119,841)(7,438,776)(100,432,731) (85,947,229)
Total
$292,882,930$292,780,918$46,734,244$45,872,071$339,617,174$338,652,989
Debt Administration. At year-end, the Town had $102.0 million in long-term obligations
outstanding with $5.2 million due within one year.
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2011
CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl’d)
The following table presents a summary of the Town’s outstanding bonded debt for the
fiscal years ended June 30, 2011 and June 30, 2010. Additional information on the Town’s
long-term obligations can be found in Note 8.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The slowdown in the national economy and, in particular, the slowdown in the housing and
commercial markets in Arizona over the past few years, has had a direct impact on the
Town. Revenues from sales taxes, State shared revenues, building permits and planning
fees have begun to stabilize throughout the fiscal year. Although, these key revenue
sources appear to be showing signs of stabilization, the Town anticipates a modest
continuation of the slow recovery in the future fiscal years. In order to help better guide
future decisions, the Town has implemented the economic recovery plan concept. This
plan is based on economic analysis that projects a slow, multi-year recovery. As a result,
the Town adopted a fiscal year 2011-12 budget which anticipates slightly increased
revenue projections will require a focus on the maintenance of essential services and
programs in the development of future budgets.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, and investors and
creditors with a general overview of the Town’s finances and to demonstrate the Town’s
accountability for the resources it receives. If you have questions about this report or
need additional information, contact the Finance Department, Town of Marana, Arizona at
11555 West Civic Center Drive, Marana, Arizona 85653, or visit www.marana.com.
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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TOWN OF MARANA, ARIZONA
STATEMENT OF NET ASSETS
JUNE 30, 2011
GovernmentalBusiness-type
ActivitiesActivitiesTotal
SSETS
A
Current assets:
Cash and cash equivalents
$ 4,367,8126,137,422$$30,505,236
4
Property taxes receivable
1,439 1,439
-
Accounts receivable
22,435,311633,848 23,069,159
Interest receivable
9,087 9,087
-
Due from other governments
6,679,75013,039 6,692,789
Internal balances
6,484,49(6,484,494) -
4
Prepaid items
228,61115,535 244,146
Total current assets
(1,454,258) 60,521,856
61,976,11
4
Noncurrent assets:
Restricted cash and investments
10,113,40773,097 10,186,50
4
Deferred bond charges
2,242,406 2,242,406
-
Capital assets not depreciated
7,550,16868,985,467 76,535,635
Capital assets (net of depreciation)
39,184,076223,897,463 263,081,539
Total noncurrent assets
46,807,341305,238,743 352,046,08
4
Total assets
45,353,083367,214,857 412,567,940
LIABILITIES
Current liabilities:
Accounts payable
211,3762,698,773 2,910,149
Accrued payroll and employee benefits
42,162614,380 656,542
Unearned revenue
82,215 82,215
-
Deposits held for others
779,452466,392 1,245,84
4
Due to other government
243,925- 243,925
Accrued interest payable
2,321,71844,9902,366,708
Compensated absences
44,743728,736 773,479
Judgments payable
170,282170,282-
Loan payable
209,665- 209,665
General obligation bonds - CFD
200,000 200,000
-
Special assessment bonds - TRFID
1,074,000 1,074,000
-
Revenue bonds
2,750,000 2,750,000
-
Total current liabilities
11,249,271,433,535 12,682,809
4
Noncurrent liabilities:
Compensated absences
80,9714,971 85,942
Deferred loss on refunding
(283,548) (283,548)
-
Loan payable
-4,376,3904,376,390
General obligation bonds - CFD
8,765,000 8,765,000
-
Special assessment bonds - TRFID
21,418,000 21,418,000
-
Revenue bonds
62,633,693 62,633,693
-
Total non-current liabilities
92,614,1164,381,361 96,995,477
Total liabilitie
5,814,896103,863,390 109,678,28
s6
NET ASSETS
Invested in capital assets, net of related deb
42,148,189196,325,785 238,473,97
t4
Restricted for:
Donations and grant
899,291 899,291
s
-
Highways and streets
6,705,75
6,705,75
44
-
Capital projects
11,085,333 11,085,333
-
Debt service
8,617,53073,097 8,690,627
Other
828,646 828,646
-
Unrestricted
38,889,128(2,683,099)36,206,029
Tota net assets
$ 39,538,187263,351,467$ 302,889,65$
l4
The notes to the financial statements are an integral part of this statement.
TOWN OF MARANA, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2011
Program Revenues
OperatingCapital Grants
Charges for Grants and and
Functions/ProgramsExpensesServicesContributionsContributions
Primary Government
Governmental activities:
General government
$ 829,67110,642,782$ 794,903$ -$
Public safety
9,043,953738,189-
-
Highways and streets
15,424,877 11,568,062
-1,896,936
Health and welfare
85,60316,545-
-
Economic and community
development
4,595,682 2,256,301 90,578 2,267,546
Culture and recreation
3,335,352140,11017,636 1,127,043
Interest on long-term debt
5,173,406-
- -
Total governmental activities
48,301,6553,226,0823,554,787 14,962,651
Business-type activities:
Water
3,392,0713,103,482
- 2,634,281
irport
238,2261,273,10334,646
A
-
Total business-type activities
4,665,1743,341,708
- 2,668,927
Tota prmary government
$ 6,567,79052,966,829$ 3,554,787$ 17,631,578$
li
General revenues:
Taxes:
Sales taxes
Property taxes
Franchise taxes
State shared revenues, unrestricted
Investment income
Miscellaneous
ransfers
T
Total general revenues and transfers
Changes in net assets
Net assets, beginning of year
Net assets, end of year
The notes to the financial statements are an integral part of this statement.
Net (Expense) Revenue and Changes in Net Assets
GovernmentalBusiness-type
ActivitiesActivitiesTotals
$ -(9,018,208)$ (9,018,208)$
-(8,305,764) (8,305,764)
-(1,959,879) (1,959,879)
-(69,058) (69,058)
-18,743 18,743
-(2,050,563) (2,050,563)
-(5,173,406) (5,173,406)
-(26,558,135) (26,558,135)
2,345,692- 2,345,692
(1,000,231)- (1,000,231)
1,345,461- 1,345,461
1,345,461(26,558,135) (25,212,674)
22,947,818 -22,947,818
-583,853 583,853
-322,322 322,322
-5,719,084 5,719,084
771104,504 105,275
3,578814,058 817,636
(309,034)309,034 -
30,800,673 (304,685)30,495,988
4,242,538 1,040,7765,283,314
259,108,929 38,497,411297,606,340
$ 263,351,467$ 39,538,187$302,889,654
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FUND FINANCIAL STATEMENTS
TOWN OF MARANA, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2011
General FundTransportationPAG Capital
SSETS
A
$ 2,826,4276,302,311$ -$
Cash and cash equivalents
-- -
Property taxes receivable
-271,588 7,421
ccounts receivable
A
-- -
Special assessments receivable
6,0531,287-
Interest receivable
480,5073,431,408 1,572,807
Due from other governments
-8,740,075 -
Due from other funds
-228,611 -
Prepaid items
-- -
Restricted cash and investments
$18,980,04$3,308,221$1,580,228
Total assets
6
LIABILITIES AND FUND BALANCE
S
Liabilities:
$ 122,0521,609,861$ 203,137$
Accounts payable
588,397--
Accrued payroll and employee benefits
-- 1,073,218
Due to other fund
s
-129,405 -
Deposits held for others
-274,745 173,366
Deferred revenue
122,0522,602,408 1,449,721
Total liabilities
Fund balances (deficits):
-228,611 -
Nonspendable
3,186,169- 130,507
Restricted
-16,149,027-
Unassigned
3,186,16916,377,638 130,507
Total fund balances (deficits)
$18,980,04$3,308,221$1,580,228
Total liabilities and fund balances
6
The notes to the financial statements are an interal part of this statement
g.
Tan
gerine Farms
ImprovementNon-MajorTotal
District Debt GovernmentalGovernmental
Other Capital
ProjectsServiceFundsFunds
$2,608,363$60,586$14,339,735$26,137,422
- -1,4391,439
- 35,1713,202317,382
22,123,229--22,123,229
2 -1,7459,087
558,061 -633,9676,676,750
- --8,740,075
- --228,611
- 517,3169,596,09110,113,407
$3,166,426$22,736,302$24,576,179$74,347,402
$185,512$ -$580,511$2,701,073
- -25,983614,380
- -1,182,3632,255,581
- -650,047779,452
541,18622,123,229370,19823,482,72
4
726,69822,123,2292,809,10229,833,210
- --228,611
2,439,728 613,07321,767,07728,136,55
4
- --16,149,027
2,439,728 613,07321,767,07744,514,192
$3,166,426$22,736,302$24,576,179$74,347,402
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TOWN OF MARANA, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
YEAR ENDED JUNE 30, 2011
Totalovernmental fund balances$ 44,514,192
g
mounts reported for overnmental activities in the Statement of Net
Ag
Assets are different because:
Capital assets used in
overnmental activities are not financial resources
g
and, therefore, are not reported in the overnmental funds:
g
Governmental capital assets384,195,82
$
0
292,882,93
Less accumulated depreciation(91,312,890
)0
Lon-term liabilities, includin bonds payable, are not due and payable in the
gg
current period and, therefore, are not reported in the overnmental funds:
g
Compensated absences(809,707)
Judments payable -
g
Capital lease -
Revenue bonds payable(64,970,000
)
General obliation bonds payable(8,965,000
g)
Special assessment bonds(22,492,000
)
ccrued interest payable(2,321,718 (99,558,425
A))
Deferred items related to the issuance of bonds are amortized over the life
of the associated issue in the
overnment-wide statements
g
Bond premium(493,511)
Bond discoun
79,818
t
Bond issue costs2,242,40
6
283,542,112,261
Deferred loss on refundin
g8
Other lon
-term assets are not available to pay for current period
g
expenditures and therefore are deferred in the funds.
Developer contributions192,530
overnmental revenue1,084,75
Inter
g0
23,400,50
Special assessments revenue22,123,22
99
Net assets of overnmental activities$263,351,467
g
ral part of this statement.
The notes to the financial statements are an inte
g
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2011
General FundTransportationPAG Captial
Revenues:
Sales taxes
$ 2,435,39920,512,419$ -$
Property taxes
-- -
Intergovernmental
5,724,962 6,968,817-
Licenses, fees & permits
2,502,494 --
Fines, forfeitures & penalties
-537,680 -
Charges for services
-430,084 -
Lease income
-647,163 -
Special assessments
-- -
Contributions
-5,211 -
Investment income
7,44074,348 -
Miscellaneous
-608,638 -
Total revenues
2,442,83931,042,999 6,968,817
Expenditures:
Current -
General government
9,046,341534,452-
Public safety
8,987,481 --
Highways and streets
1,282,571 --
Health and welfare
-59,668 -
Economic and community development
4,090,462 -248
Culture and recreation
2,551,556 --
Capital outlay
1,071,064222,4595,129,659
Debt service -
Principal retirement
-33,525-
Interest and fiscal charges
--
Bond issuance costs
- --
Total expenditures
27,089,143790,6845,129,659
Excess (deficiency) of revenues over
expenditures
3,953,856 1,652,155 1,839,158
Other financing sources (uses):
Face value of bonds issued
- --
Transfers in
- --
Transfers out
(2,667,794)(2,251,868)-
Total other financing sources (uses)
(2,667,794)(2,251,868)-
Changes in fund balance
1,286,062(599,713)1,839,158
s
Fund balances (deficits), beginning of year
3,785,88215,091,576 (1,708,651)
Funaancesects, en o year
$ 3,186,16916,377,638$ 130,507$
dbl(dfii)df
The notes to the financial statements are an integral part of this statement.
Tangerine
Farms
ImprovementNon-MajorTotal
Other Capital District Debt GovernmentalGovernmental
ProjectsServiceFundsFunds
$ -$ -$ 22,947,818-$
-- 583,853 583,853
-1,361,504 3,651,394 17,706,677
-48,000 1,810,513 4,361,007
-- 192,015 729,695
-- - 430,084
-- - 647,163
2,239,244- - 2,239,244
-3,412,840 272,375 3,690,426
-5,036 17,683 104,507
-- 5,832 614,470
2,239,2444,827,380 6,533,665 54,054,944
-- 80,281 9,661,074
-- 346,998 9,334,479
-150,302 1,610,791 3,043,664
-- - 59,668
-- 429,186 4,519,896
-- -2,551,556
5,694,716 -1,681,88213,799,780
- 1,336,0002,120,0003,489,525
- 1,096,4883,735,1884,831,676
- -108,697108,697
5,845,018 2,432,48810,113,02351,400,015
(1,017,638) (193,244) (3,579,358) 2,654,929
--1,000,0001,000,000
- -5,297,3525,297,352
- -(68,656)(4,988,318)
- -6,228,6961,309,034
(1,017,638) (193,244)2,649,3383,963,963
3,457,366806,31719,117,73940,550,229
$ 2,439,728$613,073$21,767,077$44,514,192
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TOWN OF MARANA, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2010
Net chanes in fund balances - total overnmental funds$3,963,963
gg
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$12,827,786
Less current year depreciation(13,387,935) (560,149)
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 retirement32,836
Special assessment bond retirement1,336,000
General obli
ation bond retirement190,000
g
Revenue bond principal retirement1,930,000
Jud
ements payable375,000 3,863,836
g
Contributions of infrastructure assets are not recorded as revenues
in the
overnmental funds. 662,161
g
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 interest74,706
A
Developer contributions192,530
Inter
overnmental revenue(1,204,059)
g
Special assessments(1,450,783)
Compensated absences14,287
Issuance of debt(1,000,000)
Cost of bond issuance108,697
mortization of deferred chares(422,651) (3,687,273)
Ag
e in net assets in overnmental activities$4,242,53
Chan
gg8
The notes to the financial statements are an inte
ral part of this statement.
g
TOWN OF MARANA, ARIZONA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2011
Enterprise Funds
WaterAirportTotal
SSETS
A
Current assets:
Cash and cash equivalents
$ -4,367,814$ 4,367,814$
Accounts receivable
580,97452,874 633,848
Due from overnments
13,039- 13,039
g
Prepaid items
15,535 15,535
-
Restricted cash
73,097 73,097
-
Total current assets
5,037,42065,913 5,103,333
Noncurrent assets:
Capital assets not depreciated
5,519,590 7,550,1682,030,578
Capital assets (net of depreciation)
19,658,43219,525,644 39,184,076
Total noncurrent assets
21,689,01025,045,234 46,734,244
Total assets
21,754,92330,082,654 51,837,577
LIABILITIE
S
Current liabilities:
Accounts payable
8,549202,827 211,376
Accrued payroll and employee benefits
40,6491,513 42,162
Compensated absences
44,743 44,743
-
Due to other funds
3,211,686 6,484,4943,272,808
Deposits held for others
466,392 466,392
-
Due to other overnments
243,925 243,925
g
-
Judments payable
170,282 170,282
g
-
Loan payable
209,665 209,665
-
Interest payable
44,990 44,990
-
Total current liabilities
4,635,159 7,918,0293,282,870
Noncurrent liabilities:
Compensated absences
4,971 4,971
-
Loan payable
4,376,390 4,376,390
-
Total non-current liabilities
4,381,361 4,381,361
-
Total liabilities
9,016,520 12,299,3903,282,870
NET ASSETS
Invested in capital assets, net of related debt
20,459,179 21,689,010 42,148,189
Restricted for debt service
73,097 73,097
-
Unrestricted
533,858(3,216,957) (2,683,099)
Tota net assets
$21,066,134$18,472,053$ 39,538,187
l
The notes to the financial statements are an integral part of this statement.
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2011
Enterprise Funds
WaterAirportTotal
Operatin revenues:
g
Chares for services
$ 238,2263,311,324$ 3,549,550$
g
Miscellaneous
-3,578 3,578
Total operatin revenues
3,314,902 3,553,128238,226
g
Operatin expenses:
g
Personnel costs
1,155,61046,186 1,201,796
Contractual service
197,40184,576 281,977
s
Commodities
11,994624,227 636,221
Other
241,122568,495 809,617
Depreciation expense
889,225782,040 1,671,265
Total operatin expenses
3,327,773 4,600,8761,273,103
g
Operatin income (loss)
(1,034,877)(12,871) (1,047,748)
g
Nonoperatin revenues:
g
Investment income
-771 771
Interest Expense
(64,298)- (64,298)
Total nonoperatin revenues
g
(expenses)
-(63,527) (63,527)
Income (loss) before capital
contributions and transfers
(1,034,877)(76,398) (1,111,275)
Capital contributions
2,426,43934,6462,461,085
Transfers out
(220,434)(88,600) (309,034)
Chanes in net assets
2,129,607 1,040,776(1,088,831)
g
Total net assets, beinnin of year
19,560,88438,497,41118,936,527
gg
Tota net assets, en o year
$ 18,472,05321,066,134$ 39,538,187$
ldf
The notes to the financial statements are an integral part of this statement.
TOWN OF MARANA, ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2011
Enterprise Funds
WaterAirportTotal
Cash flows from operating activities:
Received from customer
$3,297,367$706,383$ 4,003,750
s
Payments to suppliers for goods and service
(394,633)(1,388,015) (1,782,648)
s
Payments to employees for service
(51,577)(1,172,726) (1,224,303)
s
Miscellaneous revenue
3,578 3,578
s
-
Net cash provided by operating activitie
260,173740,204 1,000,377
s
Cash flows from non-capital activities:
Interfund borrowing
(284,641)1,051,755 767,114
Transfers ou
(88,600)(220,434) (309,034)
t
Net cash provided by (used for) non-capital activitie
(373,241)831,321 458,080
s
Cash flows from capital activities and related financing
activities:
Capital grants received
34,646 34,646
-
Development fees receive
1,670,092 1,670,092
d
-
Loan proceed
3,024,322 3,024,322
s
-
cquisition and construction of capital asset
78,422(1,855,513) (1,777,091)
As
Net cash provided by capital activitie
113,0682,838,901 2,951,969
s
Cash flows from investing activities:
Interest on investment
771 771
s
-
Interest paid on deb
(19,308) (19,308)
t
-
Net cash provided by (used for) investing activitie
(18,537) (18,537)
s
-
Net increase (decrease) in cash and cash equivalents
4,391,889
4,391,889
Cash and cash equivalents, beginning of year
49,022 49,022
-
Cash and cash equivalents, end of year
$4,440,911$ 4,440,911
$ -
Reconciliation of operating loss to net cash provided by
operating activities:
Operating los
$(12,871)$(1,034,877)$(1,047,748)
s
Adjustments to reconcile operating (loss) to net cash
provided by operating activities
Depreciation
889,225782,040 1,671,265
Change in assets and liabilities:
(Increase) decrease in accounts receivabl
51,760(101,266) (49,506)
e
Decrease in due from other government
416,397 416,397
s
-
(Increase) in prepaid item
(510) (510)
s
-
Increase (Decrease) in accounts payabl
(56,941)2,108 (54,833)
e
(Decrease) in accrued payroll
(5,391)(17,207) (22,598)
Increase in compensated absences payabl
91 91
e
-
Increase in deposits held for other
23,988 23,988
s
-
Increase in due to other government
63,831 63,831
s
-
Net cash provided by operating activitie
$740,204$ 1,000,377260,173$
s
Noncash investing, capital and financing activities:
Capital contribution
$756,347 756,347
s
$ -
The notes to the financial statements are an integral part of this statement.
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town have been prepared in conformity with accounting
principles generally accepted in the United States of America as applied to governments.
The Governmental Accounting Standards Board (GASB) is the accepted standard-setting
body for establishing government accounting and financial reporting principles.
During the year ended June 30, 2011, the Town implemented the provisions of GASB
Statement No. 54., GASB
statement No. 54 establishes standards for financial reporting, including note disclosure
requirements for fund balance classifications of the governmental funds and clarifies existing
governmental fund type definitions.
A.Reporting Entity
The Town of Marana, Arizona (the Town) was incorporated on March 21, 1977, under the
provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town
operates under 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), Gladden
Farms Community Facilities District II (GFCFD II), the Vanderbilt Farms Community Facilities
District (VFCFD), the Saguaro Springs Community Facilities District (SSCFD) and the
Tangerine Farms Road Improvement District (TFRID). The MMPC, GFCFD, GFCFD II,
VFCFD, SSCFD and TFRID are blended with the Town in these financial statements as all
five 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,
GFCFD II, VFCFD, SSCFD and TFRID component units each have a June 30 year-end and
are included in the 1997 Bond, 2003 Bond, 2004 Bond Debt Service Funds, and 2008 Bond
Debt Service Funds, the Gladden Farms Capital Projects and Debt Service Funds, the
Vanderbilt Farms Capital Projects and Debt Service Funds, the Saguaro Springs Capital
Projects Fund, the Tangerine Farms Improvement District Debt Service Fund, and the Other
Capital Projects Funds, respectively. Separate financial statements of the MMPC, the
GFCFD, the GFCFD II, the VFCFD, the SSCFD and the TFRID are not prepared on a stand-
alone basis.
B.Basis of Presentation
The basic financial statements include both the government-wide statements and fund-
based financial statements. The government-wide statements focus on the Town as a
whole, while the fund-based statements focus on major funds. Each presentation provides
valuable information that can be analyzed and compared between years and between
governments to enhance the usefulness of the information.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Government-wide Financial Statements
The government-wide financial statements (i.e. the statement of net assets and the
statement of activities) present financial information about the Town as a whole. The
reported information includes all of the activities of the Town and its component units. For
the most part, the effect of internal activity has been removed from these statements.
These statements are to distinguish between the governmentaland business-type activities
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 (like 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.
Fund Financial Statements
Fund statements provide information about the Town’s funds, including blended component
units. Separate statements are presented for the governmental and proprietary fund
categories. The emphasis of fund financial statements is on major governmental and
enterprise funds, each displayed in a separate column. All remaining governmental funds
are aggregated and reported as non-major funds.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
The Town reports the following major governmental funds:
General Fund – This fund is the general operating fund of the Town. It is used to
account for all financial resources, except those required to be accounted for in another
fund.
Transportation – This fund accounts for the financing and construction of transportation
capacity improvement projects.
PAG Capital Fund – This fund accounts for proceeds from Pima Association of
Governments which are used for the Thornydale Road and Silverbell Road
Improvements 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.
Tangerine Farms Improvement District Debt Service Fund – This fund accounts for the
accumulation of resources and payment of principal and interest on the Tangerine Farms
Road Improvement District Special Assessment Bonds.
The Town reports the following major proprietary funds:
Water Fund – This fund is used to account for the financing and operation of the Water
Utility.
Airport Fund – This fund is used to account for the financing and operation of the
Marana Airport.
C.Measurement Focus and Basis of Accounting
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
financial statements. Revenues are recorded when earned, including unbilled water services
which are accrued, and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Grants and similar items are recognized as revenue as soon all
eligibility requirements imposed by the grantor or provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement 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 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. Debt service resources are provided during the current year for payment of
long-term debt principal and interest due early in the following year. Compensated
absences are recorded only when payment is due.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Sales taxes, licenses and permits, charges for services, and investment income associated
with the current fiscal period are all considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. Grants and similar awards are
recognized as revenue as soon as all eligibility requirements imposed by the grantor or
provider have been met. Miscellaneous revenue is not susceptible to accrual because
generally they are not measurable until received in cash.
Property taxes are levied by community facility districts, which are component units of the
Town and collected by the Pima County Treasurer and special assessment property taxes
are levied and collected by the Town. All property taxes are levied no later than the third
Monday in August and are payable in two installments due October 1 of the current year
and March 1 of the subsequent year. Taxes become delinquent after the first business day
of November and May, respectively. Interest attaches on installments after the delinquent
date. Pursuant to ARS, a lien against assessed real and personal property attaches on the
first day of January preceding assessment and levy; however according to case law, an
enforceable legal claim to the asset does not arise.
Tangerine Farms Road Improvement District (a component unit) issued special assessment
bonds for infrastructure improvements. These bonds will be paid through assessments
made to the property owners within the Tangerine Farms Road Improvement District. The
Town is responsible for the collection of the assessments and the disbursement of funds to
retire the bonds. If a delinquency on an assessment occurs, the Town is required to cover
the delinquency with other resources until foreclosure proceeds are received.
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 has 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”)
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
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.
D.Cash and Cash Equivalents
For the purposes of the statement of cash flows, the Town considers all highly liquid
investments (including the funds' participation in the investment pool account, and
appropriate restricted assets) to be cash equivalents. Individual fund investments with a
maturity of three months or less when purchased are considered as cash equivalents.
E.Investments
Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s
Local Government Investment Pool, interest-bearing savings accounts, certificates of
deposit, and repurchase agreements in eligible depositories; bonds or other obligations of
the U.S. government that are guaranteed as to principal and interest by the U.S.
government; and bonds of the State of Arizona counties, cities, towns, school districts, and
special districts as specified by statue.
The State Board of Investment provides oversight for the State Treasurer’s pools. The fair
value of a participant’s position in the pool approximates the value of that participant’s pool
shares
Nonparticipating interest-earning investment contracts are stated at cost. Money market
investments and participating interest contracts with a remaining maturity of one year or
less at time of purchase are stated at amortized cost. All investments are stated at fair
value.
F.Restricted Assets
The trust indentures executed for the entire bond series issued require all cash and
investments for each bond series to be held on deposit by the trustee/fiscal agents. These
assets are restricted for payment of interest and trustee fees associated with the bond
issues, retirement of principal balances, and to finance various capital projects.
In addition, the State of Arizona required that assets obtained at the completion of criminal
proceedings by the Town's police department be given to Pima County for custodial
purposes. These assets are restricted for expenses that will enhance the Town's ability to
conduct police investigations.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
G.Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements.
Prepaid items are recorded as expenses when consumed in the government-wide financial
statements. Prepaid items are recorded as expenditures when purchased in the fund
financial statements and are offset by a reserve of fund balance.
H.Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due to/from other funds”
(i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the
non-current portion of interfund loans). All trade and other receivables are shown net of an
allowance for uncollectible amounts.
I.Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported
as interfund transfers. Interfund transfers between governmental funds are eliminated in
the Statement of Activities. Interfund transfers in the fund statements are reported as
other financing sources/uses in governmental funds and after non-operating
revenues/expenses in proprietary funds.
J.Capital Assets
Capital assets, including public domain infrastructure such as roads, bridges, curbs and
sidewalks, lighting system, water distribution system and other assets that are immovable
and of value to the Town, are defined as assets with an initial individual cost of $5,000 or
more and an estimated useful life of more than one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital
assets are valued at estimated fair value on the date donated. Capital assets are reported
in the applicable governmental or business-type activities columns in the government-wide
financial statements. No long-term assets or depreciation are shown in the governmental
funds financial statements.
The Town has chosen not to apply the modified approach to any network, system, or
subsystem of infrastructure assets.
The cost of normal maintenance and repairs that do not significantly add to the value of the
asset or materially extend the life of the asset are not capitalized. Major improvements are
capitalized and depreciated over the remaining useful life of the related capital assets.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets is included as
part of the capitalized value of the assets constructed.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Depreciation is provided over the estimated useful lives of such assets using the straight-
line method. These estimated useful lives are as follows.
Years
Buildins 40
g
Buildin imrovements10-15
gp
Pump stations, distribution systems,
quipment and improvements45-75
e
Public domain infrastructure20-50
Machinery, equipment, and assets
under capital lease4-10
K.Long-term Obligations
In the government-wide financial statements and proprietary fund types in the fund
financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable business-type activities and proprietary fund type statement of
net assets. Bond related charges and credits, such as premium discounts and issuance
costs, are deferred and amortized over the life of the bonds using the straight-line method.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of
debt issued is reported as other financing sources. Premiums received on debt issuances
are reported as other financing sources while discounts on debt issuances are reported as
other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds
received, are reported as debt service expenditures.
L.Compensated Absences
The Town's employee vacation and sick leave policies generally provide for granting
vacation and sick leave with pay. Vacation leave vests with the employee as it is earned.
The current and long-term liabilities for accumulated vacation, including related benefits,
are reported on the government-wide financial statements. A liability for these amounts is
reported in governmental funds only if they have matured, for example, as a result of
employee leave, resignations, and retirements. Sick leave benefits provided for ordinary
sick pay are not vested with the employees. Generally, resources from the General Fund are
used to pay for compensated absences.
M.Transactions Between Funds
Transactions that would be treated as revenue or expenses if they involved organizations
external to the governmental unit are accounted for as revenue or expenses in the funds
involved. Transactions which constitute reimbursements of a fund for expenses initially
made from that fund which are properly applicable to another fund are recorded as
expenses in the reimbursing fund and as reductions of the expense in the fund that is
reimbursed.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Interfund transfers between governmental funds are eliminated in the Statement of
Activities. Interfund transfers in the fund statements are reported as other financing
sources/uses in governmental funds and after non-operating revenues/expenses in
proprietary funds.
N.Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles accepted in the United States of America requires management to make estimates
and assumptions. This will affect the reported amounts of assets and liabilities, disclosure
of contingent assets and liabilities at the date of the financial statements, and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ
from these estimates.
O.Seized Property
The Town Police have in their custody certain assets seized in criminal proceedings. Until
formal procedures have been finalized, the ownership of this property is not determinable.
In addition, legal requirements dictate that such assets not be reflected on the Town's
financial records in an agency capacity until Town ownership has been determined.
Consequently, no such assets are recorded on these financial statements.
NOTE 2 – FUND BALANCE CLASSIFICATIONS
In the fund financial statements, fund balance is reported in classifications that comprise a
hierarchy based on the extent to which the Town is bound to honor constraints on the
specific purposes for which amounts in those funds can be spent. The classifications of fund
balance are Nonspendable, Restricted, Committed, Assigned, and Unassigned.
Nonspendable and Restricted fund balances represent the restricted classifications and
Committed, Assigned, and Unassigned represent the unrestricted classifications.
Nonspendable Fund Balance consists of funds that are not in a spendable form, such as
inventories and prepaids, or can be legally or contractually required to be maintained intact.
Restricted Fund Balance consists of funds that are externally imposed by creditors, grantors,
contributors, law or regulations of other governments, or by law imposed through
constitutional provisions or enabling legislation. Committed Fund Balance consists of funds
that can only be used for specific purposes pursuant to constraints imposed by formal action
of the Town’s highest level of decision-making authority. Assigned Fund Balance consists of
funds constrained by the Town’s intent to be used for specific purposes, but are neither
restricted nor committed, should be reported as assigned fund balance. This classification
of fund balance must be designated by the Town’s highest level of decision making
authority or a Town official that has been delegated the authority to assign funds.
Unassigned Fund Balance consists of the residual classification for the general fund. This
classification represents fund balance that has not been assigned to other funds and that
has not been restricted, committed, or assigned to specific purposes within the general
fund. The General Fund is the only fund that can report a positive unassigned fund balance
and any other governmental fund can report a negative fund balance.
When both restricted and unrestricted resources are available for specific expenditures,
restricted resources are considered spent before unrestricted resources.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 2 – FUND BALANCE CLASSIFICATIONS (Cont’d)
As of June 30, 2011, the fund balance details by classification are listed below:
Tangerine
Farms Road
Improvement Non-Major
Other Capital District Debt Governmental
ServiceFunds
General Fund Transportation PAG Capital Projects
Fund Balances:
Nonspendable:
Prepaid expenditures $ 228,611 $ - $ - $ - $ - $ -
Restricted:
Debt service - - - - 613,073 8,004,457
Capital projects - - 130,507 2,439,728 - 8,515,098
Donations and grants - - - - - 899,291
Streets and highways - 3,186,169 - - - 3,519,585
Municipal court - - - - - 746,819
Affordable housing - - - - - 81,827
Unassigned: 16,149,027 - - - - -
Total fund balances: $ 16,377,638 $ 3,186,169 $ 130,507 $ 2,439,728 $ 613,073 $ 21,767,077
NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Individual Deficit Fund Balance – At June 30, 2011, the Pima County Bond Capital
Fund, a non-major governmental fund, reported a deficit in fund balance of $281,423.
All funds with deficit fund balance 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 2011-12 which are expected to eliminate the deficits.
NOTE 4 - BUDGETARY CONTROL
Excess Expenditures Over Budget – At June 30, 2011, 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 19, 2009, 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, 2010.
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.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 4 - BUDGETARY CONTROL (Cont’d)
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 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 Other Special Revenue 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 in
the General Fund or between funds for any other fund; however, any revisions that
reallocate budgeted amounts between departments within the General Fund or from the
budget line items labeled "contingency" must be approved by the Town Council.
NOTE 5 - CASH AND INVESTMENTS
A.R.S. authorize the Town to invest public monies in the State Treasurer’s local government
investment pools, the County Treasurer’s investment pool, interest-bearing savings
accounts, certificates of deposit, and repurchase agreements in eligible depositories; bonds
or other obligations of the U.S. government that are guaranteed as to principal and interest
by the U.S. government; and bonds of the State of Arizona counties, cities, towns, school
districts, and special districts as specified by statute. The statutes do not include any
requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate
risk, or foreign currency risk for the Town’s investments. The State Board of Investment
provides oversight for the State Treasurer’s pools.
At June 30, 2011, the carrying amount of the Town’s deposits was $6,369,719, and the
bank balance was $6,784,501. 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, $1,749,410 was covered by Federal depository insurance, $977,863 was
covered by collateral, and $4,057,228 was covered under the transaction account guarantee
component of the Temporary Liquidity Guarantee Program; no portion of the balance was
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 5 - CASH AND INVESTMENTS (cont’d)
uninsured and uncollateralized. The Town had $1,260 in petty cash funds, change drawers
and other related items at year end.
At June 30, 2011, the Town’s investments consisted of the following.
Investment Maturities
(in Years)
Investment Type Fair Value Less than 1 1-5
Money Market Investments $ 7,491,481$ 7,491,481$ -
Repurchase Agreement 2,969,5602,969,560 -
Federal Home Loan Bank 1,845,666 - 1,845,666
Federal Home Loan Mortgage Corp.4,152,086 - 4,152,086
Federal National Mortgage Assn. 687,952687,952 -
$ 11,148,993$ 5,997,752
State Treasurer’s investment pool 717,174,01647 days average maturities
$ 34,320,761
. 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, 2011, the Town’s investment in the State Treasurer’s investment
pool 7 was rated AAA by Standard & Poor’s. 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.
. 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 19% of the Town’s total investments.
NOTE 6 - RECEIVABLES
The General Fund due from other governments amount includes $231,615 in state shared
sales tax, $101,265 in auto lieu revenues and $3,097,231 in local sales tax due from the
State of Arizona. The entire due from other governments amount of $480,507 in the
Transportation Fund consists of local contracting sales tax due from the State of Arizona.
The amounts due from other governments recorded in the PAG Capital Fund of $1,572,807
includes amounts due from the Regional Transportation Authority related to the
reimbursement of expenditures for the Twin Peaks capital projects. The amounts due
from other governments recorded in the Other Capital Projects Fund consist of $293,401
which is due for the State of Arizona Department of Transportation related to the tangerine
road signals project and $222,222 due from Pima County related to the Camino de Manana
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 6 – RECEIVABLES (Cont’d)
road project. The intergovernmental receivable in the non-major governmental funds
includes $211,544 of Highway User Revenue Fund revenues due from the state, $201,060
of federal grants from the U.S. Department of Homeland Security, and $97,200 of federal
grants from the U.S. Department of Energy. This amount also includes $19,838 of federal
grants due from the Office of National Drug Control Policy and $64,968 due from Pima
County related to the reimbursement of expenditures for Pima county bond projects. The
balance of these receivables represents various grants from the state and federal
governments.
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 Unearned
$ -
Program revenues (General Fund) $ 82,215
Developer Contributions (General Fund) 192,530 -
Intergovernmental (PAG Capital Projects Fund) 173,366 -
Intergovernmental (Other Capital Projects Fund) 541,186
Intergovernmental (Non-Major governmental funds) 370,198 -
Special assessments (Tangerine Farms Improvement
District Debt Service Fund) 22,123,229 -
$ 23,400,509
Total deferred revenue $ 82,215
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 7 - CAPITAL ASSETS
The following is a summary of the changes in capital assets for fiscal year ended June 30,
2011.
Beginning
Governmental ActivitiesBalanceAdditionsDeletionsEnding Balance
Capital assets, not being depreciated:
Land3,491,030$ -$ -$ 3,491,030$
Construction in progress54,274,071 11,612,242 391,876 65,494,437
otal capital assets, not being depreciated57,765,101 11,612,242 391,876 68,985,467
T
Capital assets, being depreciated:
Buildings and improvements43,862,377 164,456 44,026,833
-
Machinery, equipment, and other assets17,792,438 858,516 583,498 18,067,456
Infrastructure251,869,455 1,246,609 - 253,116,064
otal capital assets being depreciated
2,269,581313,524,270 583,498 315,210,353
T
Less accumulated depreciation for:
Buildings and improvements(7,651,543) (1,354,714) - (9,006,257)
Machinery, equipment, and other assets(15,209,165) (1,430,750) (583,498) (16,056,417)
Infrastructure(55,647,745) (10,602,471) - (66,250,216)
Total accumulated depreciation
(13,387,935)(78,508,453) (583,498) (91,312,890)
otal capital assets, being depreciated, net235,015,817 (11,118,354)- 223,897,463
T
Governmental activities capital assets, net
$493,888292,780,918$ 391,876$ 292,882,930$
Governmental activities depreciation expense was charged to function/programs as follows.
Governmental Activities:
$ 1,094,347
General government
24,928
Public safety
462,610
ghways and streets
Hi
11,073,191
Health and welfare
25,935
Economic and community development
706,924
Culture and recreation
$ 13,387,935
Total depreciation expense –governmental activities
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 7 – CAPITAL ASSETS (Cont’d)
A summary of changes in capital assets for business-type activities is as follows.
Beginning
Business-type ActivitiesBalanceAdditionsDeletionsEnding Balance
Capital assets, not being depreciated:
Land$ 1,614,924$ -$ -$ 1,614,924
Water rights 1,884,243 405,035 - 2,289,278
Construction in progress 4,101,4071,575,3782,030,819 3,645,966
otal capital assets, not being depreciated7,600,574 1,980,413 2,030,819 7,550,168
T
Capital assets, being depreciated:
Buildings, improvements and infrastructure45,209,582 2,494,976 47,704,558
-
Machinery, equipment, and other assets555,688 88,868 45,197 599,359
otal capital assets being depreciated
2,583,84445,765,270 45,197 48,303,917
T
Less accumulated depreciation for:
Buildings, improvements and infrastructure(6,930,033) -(1,621,794) (8,551,827)
Machinery, equipment, and other assets(563,740) (49,471) (45,197) (568,014)
otal accumulated depreciation
(1,671,265)(7,493,773) (45,197) (9,119,841)
T
otal capital assets, being depreciated, net38,271,497 912,579 - 39,184,076
T
Business-type activities capital assets, net
$ 2,892,99245,872,071$ 2,030,819$ 46,734,244$
Business-type depreciation expense was charged to functions/programs as follows.
Business-te Activities:
yp
Water $ 782,040
Airort 889,225
p
otal depreciation expense business-type activities$1,671,265
T–
NOTE 7 – LONG-TERM DEBT8
A.Notes Payable
Business-type activities loan payable consists of a loan from the Water Infrastructure
Finance Authority (WIFA), the proceeds of which were used to acquire and construct various
water related infrastructure. The loans are to be repaid in annual principal payments, plus
semiannual interest payments, and a semiannual servicing fee.
During 2010, the Town obtained $5,250,000 in financing from WIFA for the acquisition and
construction of a new water infrastructure. As of year-end, the Town has drawn on
$4,586,055 of the loan, leaving $663,945 available for drawdown. The interest rate at June
30, 2011 on the outstanding balance is 2.968 percent.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 8 – LONG-TERM DEBT (Cont’d)
The following is a schedule by years of the debt service requirements for the loan as of
June 30, 2011.
Fiscal Year Principal InterestTotal
2012 $ 209,665 $ 136,110 $ 345,775
2013 215,888 129,887 345,775
2014 222,296 123,480 345,775
2015 228,894 116,882 345,776
2016 235,687 110,089 345,776
2017 - 2021 1,287,609 103,094 1,390,703
2022 - 2026 1,490,375 64,879 1,555,254
2027 - 2029 1,359,585 20,646 1,380,231
Totals $ 4,586,055 $ 805,065 $ 6,055,065
B.Community Facilities District (CFD) General Obligation Bonds
Gladden Farms Community Facilities District (a component unit) issued general obligation
bonds for infrastructure improvements. The CFD general obligation bonds outstanding as
reported in governmental activities as of June 30, 2011, were as follows.
Outstanding
June 30, 2011
$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. $ 1,905,000
$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.
3,110,000
$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.
2,950,000
$1,000,000 CFD General Obligation Bonds, 2010 Series,
due in annual installments of $10,000 to $665,000;
through July 15, 2033; at a 2.7$ to 5.75% interest rate.
1,000,000
Total $ 8,965,000
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 8 – LONG-TERM DEBT (cont’d)
Annual debt service requirements to maturity on the CFD general obligation bonds at June
30, 2011, are summarized as follows.
Year ending
June 30 Principal Interest Total
2012 $ 200,000 $ 490,441 $ 690,441
2013 215,000 480,553 695,553
2014 225,000 469,752 694,752
2015 240,000 457,902 697,902
2016 250,000 445,273 695,273
2017 - 2021 1,475,000 2,005,489 3,480,489
2022 - 2026 1,930,000 1,535,824 3,465,824
2027 - 2031 2,540,000 901,562 3,441,562
2032 - 2033 1,890,000 163,518 2,053,518
Totals $ 8,965,000 $ 6,950,313 $ 15,915,313
C.Tangerine Farms Road Improvement District Improvement Bonds
Tangerine Farms Road Improvement District (a component unit) issued special assessment
bonds for infrastructure improvements. These bonds will be paid through assessments
made to the property owners within the Tangerine Farms Road Improvement District. The
Town is responsible for the collection of the assessments and the disbursement of funds to
retire the bonds. If a delinquency on an assessment occurs, the Town is required to cover
the delinquency with other resources until foreclosure proceeds are received. The TFRID
special assessment bonds outstanding as reported in governmental activities as of June 30,
2011, were as follows.
Outstanding
June 30, 2011
$25,774,000 TFRID Special Assessment Bonds, due in
annual installments of $1,336,000 to $2,016,000;
through January 1, 2026; at an interest rate of 4.6%. $ 22,492,000
Total $ 22,492,000
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 8 – LONG-TERM DEBT (cont’d)
Annual debt service requirements to maturity on the TFRID special assessment bonds at
June 30, 2011, are summarized as follows.
Year ending June
30
PrincipalInterestTotal
20121,074,000 1,034,632 2,108,632
20131,123,000 985,228 2,108,228
20141,175,000 933,570 2,108,570
20151,229,000 879,520 2,108,520
20161,286,000 822,986 2,108,986
2017 - 20217,372,000 3,171,424 10,543,424
2022 - 20269,233,000 1,312,334 10,545,334
otals$22,492,000$9,139,694$31,631,694
T
D.Revenue Bonds
The Town has issued revenue bonds for acquiring water systems, infrastructure upgrades,
the design and construction of the new municipal complex and to refund prior issuances.
These bonds are payable solely from the excise taxes collected by the Town. The revenue
bonds outstanding as reported in governmental activities as of June 30, 2011 were as
follows.
Outstanding
June 30, 2011
$8,175,000 Revenue Bonds, 1997 Series, due in bi-annual
installments of $45,000 to $300,000; through July 1,
2022; at a 3.85% to 5.25% interest rate. $ 2,985,000
$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. 16,105,000
$8,675,000 Revenue and Refunding Bonds, 2004 Series,
due in bi-annual installments of $115,000 to $320,000;
through July 1, 2025; at a 3.0% to 5.25% interest rate. 6,810,000
$31,090,000 Revenue Bonds, 2008 Series A, due in bi-
annual installments of $570,000 to $1,275,000; through
July 1, 2028; at a 4.0% to 5.25% interest rate. 30,520,000
$8,700,000 Revenue Bonds, 2008 Series B, due in bi-
annual installments of $150,000 to $360,000; through
July 1, 2028; at a 5.125% interest rate. 8,550,000
Total $ 64,970,000
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 8 – LONG-TERM DEBT (cont’d)
Annual debt service requirements to maturity on revenue bonds at June 30, 2011, are
summarized as follows.
Year ending
June 30 Principal Interest Total
2012 $ 2,750,000 $ 3,138,187 $ 5,888,187
2013 2,760,000 3,024,506 5,784,506
2014 2,855,000 2,907,413 5,762,413
2015 2,995,000 2,784,691 5,779,691
2016 3,115,000 2,649,932 5,764,932
2017 - 2021 17,980,000 10,819,665 28,799,665
2022 - 2026 21,460,000 5,823,687 27,283,687
2027 - 2028 11,055,000 846,041 11,901,041
Totals $ 64,970,000 $ 31,994,122 $ 96,964,122
E.Pledged Revenues
The Town has pledged certain future revenues to repay specific bonded debt as follows.
The Town has pledged future excise tax revenues to repay $76.3 million in Excise Tax
Revenue Bonds issued in 1997, 2003, 2004 and 2008. The various bonds were issued for
the construction of the municipal complex, the acquisition of certain water systems,
infrastructure upgrades and to refund prior debt issuances. At year end, $65.0 million in
bonds remain outstanding to be repaid by future excise tax revenues and the net revenues
available for service of this debt were $32.7 million. The debt principal and interest paid on
this debt during fiscal year 2011 was $5.2 million (15% of available net pledged revenues).
In addition, the Town has pledged future water utility revenues to repay a $5.3 million
Water Infrastructure Financing Authority loan. The loan was issued for the acquisition of
well sites and the construction of certain infrastructure. At year end, $4.4 million remains
outstanding to be repaid by future water revenues. For the fiscal year ended June 30, 2011,
the net revenues available for service of this debt were $3.3 million. The debt principal and
interest paid on this debt during fiscal year 2011 was $273,964.
H.Changes in Long-term Debt
The following is a summary of changes in long-term debt activity for fiscal year ended
June 30, 2011.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 8 – LONG-TERM DEBT (Cont’d)
BeinninDue Within
gg
BalanceAdditionsReductionsEnding BalanceOne Year
Governmental
activities:
General obliation bonds
$ 1,000,0008,155,000$ 190,000$ 8,965,000$ 200,000$
g
Revenue bonds
-66,900,000 1,930,000 64,970,000 2,750,000
Compensated absences
843,501801,802835,596809,707728,736
Special assessment
bonds
23,828,000 1,336,000-22,492,0001,074,000
Deferred bond premium
527,923 -34,412493,51134,412
Deferred bond discount
(84,252) -(4,434)(79,818)(4,434)
Judments payable
-375,000 375,000
g
- -
Capital lease
32,836 -32,836
- -
Total
$ 1,801,802100,578,008$$4,729,410$97,650,400$4,782,714
Business-type
activities:
Loan payable
$1,561,733$3,024,322$-$4,586,055$209,665
Compensated absences
49,62345,77345,68249,71444,743
Jud
ments payable
170,282-170,282170,282
g
-
Total
$1,781,638$3,070,095$45,682$4,806,051$424,690
NOTE 9 – JUDGMENTS PAYABLE
Town of Marana v. Pima County
In 2007, the Town filed suit against Pima County in Superior Court seeking declaratory and
injunctive relief on the issue of whether the Town has the authority to operate its own
sewer utility and whether the Town owns the sewer facilities within the Town boundaries
pursuant to an Intergovernmental Agreement that the Town entered into with Pima County
in 1979. The court had ruled that (a) Marana is authorized to operate its own sewer utility
and (b) Pima County is entitled to ownership of (i) the disputed treatment plant located
near Luckett Road in north Marana, and (ii) nineteen individual sewer lines identified as
“flow-through” by Pima County. The Town entitled to take ownership of all other sewer lines
located in the Town. The court also awarded Pima County $170,282 in attorneys’ fees. Both
parties have now appealed, and the case is pending in the Arizona Court of Appeals,
Division 1. Briefing by the parties will be completed by the end of November 2011. The
court could issue its decision at any time thereafter, but is likely to take six months to a year
to issue a ruling.
On August 25, 2011, Pima County filed suit against the Town in Superior Court seeking
declaratory and injunctive relief on the constitutionality and enforceability of 2011 Arizona
legislation, Senate Bill 1171, that would resolve the 2007 litigation and require Pima County
to transfer to the Town at its request and upon payment of outstanding debt all sewer
facilities located in or primarily serving the Town. The lawsuit would also block the Town’s
July 20, 2011 request for transfer of certain sewer facilities located in northwest Marana.
The litigation is in its early pre-trial stage, and Pima County has not yet disclosed the
amount of its debt on the sewer facilities requested by the Town. Because of the complexity
of the issues, any opinion about the likely outcome or timeframes would be speculative.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 10 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Due to/from other funds:
At June 30, 2011, several funds were involved in interfund borrowing arrangements with the
General Fund due to insufficient resources available in the funds to cover expenditures.
Through the fiscal year 2010-2011, these interfund borrowing will be eliminated as sufficient
resources become available. Listed below is a summary of the interfund borrowing
transactions.
Due From
Non-Major
Governmental
Due ToPAG CapitalWater FundAirport FundTotal
Funds
General Fund $ 1,073,218 $ 1,182,363 $ 3,211,686 $ 3,272,808
$ 8,740,075
Total $ 1,073,218 $ 1,182,363 $ 3,211,686 $ 3,272,808
$ 8,740,075
Interfund transfers:
Interfund transfers were made by the Town during the fiscal year to ensure that sufficient
resources were available to cover expenditures in the applicable funds. These were direct
transfers between funds and will not be eliminated as sufficient resources become available
in the receiving funds. Listed below is a summary of transfers between funds.
Transfers In
Non-Major
Governmental
Transfer Out
Total
Funds
General Fund $ 2,667,794 $ 2,667,794
Transportation 2,251,868 2,251,868
Non-Major Governmental 68,656 68,656
Water Fund 220,434 220,434
Airport Fund 88,600 88,600
otal$ 5,297,352 $ 5,297,352
T
NOTE 11 - EMPLOYEE RETIREMENT SYSTEMS
All full-time and permanent part-time employees participate in one of four different
retirement plans. With the exception of public safety personnel, police dispatchers and
elected officials, all other employees participate in the Arizona State Retirement System
(ASRS). Certified public safety personnel participate in the Public Safety Retirement
Systems (PSPRS). Police dispatch and communication staff participate in the Corrections
Officer Retirement Plan (CORP). The Town’s Mayor and Council Members participate in the
Elected Officials’ Retirement Plan (EORP).
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 11 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
A. Public Safety Personnel Retirement System
All of the Town's full-time police officers are covered by the Arizona Public Safety Personnel
Retirement System (PSPRS), which is an agent multiple-employer defined benefit plan.
PSPRS was established by Title 38, Chapter 5, Article 4 of the Arizona Revised Statutes to
provide pension benefits for public safety personnel who are regularly assigned hazardous
duty as employees of the State of Arizona or one of its political subdivisions. The PSPRS is
jointly administered by the fund manager and participating local boards. The fund manager
is a five-member board appointed by the Governor and the State Legislature. The fund
manager is responsible for establishing contribution rates in accordance with an actuarial
study. The PSPRS provides retirement benefits, as well as death and disability and health
insurance premium benefits. PSPRS issues a publicly available financial report that includes
financial statements and required supplemental information. This report may be obtained
by writing to the PSPRS 3010 E Camelback Rd, Ste 200, Phoenix, AZ 85016 or by calling
(602) 255-5575.
For the fiscal year ending June 30, 2011, the required employee contribution rate was
7.65% of the members’ annual covered payroll; the Town was required to contribute at the
actuarially determined rate of 14.33% (13.24% retirement and 1.09% health insurance
premium) of the covered payroll.
The Town’s pension cost for the year ending June 30, 2011, the date of the most recent
actuarial valuation and related information are summarized as follows:
Contribution rates:
Town – retirement 13.24%
Town – health insurance premium 1.09%
Plan members 7.65%
Annual pension cost $599,753
Contributions made:
Retirement $554,133
Health insurance premium $45,620
Actuarial valuation date June 30, 2009
Actuarial cost method Projected unit credit
Actuarial assumptions:
Investment rate of return 8.5%
Projected salary increases 5.5%
Post-retirement benefit increase Based on Investment Income
Amortization method Level percent-of-pay closed
Remaining amortization period 26 years for underfunded actuarial
accrued liability, 20 years for excess
Asset valuation method 7-year Smoothed market value
Post retirement benefit increases Based on Income
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 11 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
Trend Information
Annual Pension PercentNet Pension
Fiscal Year Ended June 30, Cost (APC) Contributed Obligation
2011
Pension $ 554,132 100.0 -
Health $45,620 100.0 -
2010 $ 582,630 100.0 -
2009 $ 718,625 100.0 -
SCHEDULE OF FUNDING PROGRESS
An analysis of funding progress for each of the agent plans as most recent actuarial valuations,
June 30, 2009 reporting period determines the rates for fiscal year 2011. For this valuation,
fiscal years prior to 2008 (which were prior to the period of implementation of GASB Statement
Nos. 43 and 45), the pension and health insurance benefit amounts were aggregated. In fiscal
year 2008, GASB Statement Nos. 43 and 45 measurements were made and reported; therefore,
these benefits are disaggregated and reported separately.
Pension Plan
(6)
Unfunded
AAL as a
Percentage
(1)(2)(3)(5)
Actuarial Actuarial Percent(4)Annualof Covered
Value of Accrued FundedUnfunded CoveredPayroll
Valuation
AssetsLiability (AAL)Payroll (4)/(5)
Date June 30 (1)/(2) AAL (2)-(1)
$2,614,488
2009 $10,195,941 $12,810,429 79.6 $4,625,605 56.5%
$2,416,049
2008 $ 9,429,944 $11,845,993 96.6 $4,822,869 50.1%
$3,758,919
2007 $ 8,392,338 $12,151,257 69.1 $4,104,462 91.6%
Health Insurance Plan
(6)
Unfunded
AAL as a
(1)(2)(3)(5)Percentage
Actuarial Actuarial PercentAnnualof Covered
(4)
Valuation Value of Accrued FundedUnfunded CoveredPayroll
Date June 30 AssetsLiability (AAL)(1)/(2) AAL (2)-(1) Payroll (4)/(5)
2009 $0 $397,840 0.00 $397,840 $4,625,605 8.60%
2008 $0 $393,684 0.00 $393,684 $4,822,869 8.16%
2007 $0 $452,442 0.00 $452,442 $4,104,462 10.38%
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 11 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
Annual Required Contribution – Health Insurance Plan
Fiscal Year Actuarial
Valuation
EndedAccrued
Date Dollar
June 30, June 30, Normal Cost (a) Liability (b) Total (a+b) Amount
2009 2011 .67% .42% 1.09% $56,118
2008 2010 .55% .39% 0.94% $45,335
2007 2009 .68% .49% 1.17% $56,428
The Health Insurance Subsidy payments reported for valuation year 2009 were $6,559.
B. Arizona State Retirement System
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 in the Arizona State Retirement System (ASRS) a cost sharing
multiple-employer defined benefit plan. The ASRS was established by the State of Arizona
to provide pension benefits for employees of the State and employees of participating
political subdivisions and school districts. The ASRS is administered in accordance with the
provisions of A.R.S. Title 38, Chapter 5, Article 2. The ASRS provides for retirement, death,
long-term disability, survivor, and health insurance premium benefits. ASRS issues a
publicly available financial report that includes financial statements and required
supplementary information. The report may be obtained by writing to ASRS, 3300 N.
Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling 602-240-2000
or 1-800-621-3778.
Funding Policy
Cost-sharing plan - Arizona Revised Statutes provide statutory authority for determining the
employees’ and employers’ contribution amounts. The ASRS funding policy providesfor
actuarially determined employer contributions at rates which will provide assets sufficient to
pay benefits when due. For the fiscal year ending June 30, 2011, the required contribution
rate of members was 9.85% (9.60% retirement and 0.25% long-term disability) and the
Town was required by statute to contribute at an actuarially determined rate of 9.85%
(9.01% retirement, .59% health insurance premium, and 0.25% long-term disability). The
Town’s contributions to ASRS for the year’s ended June 30, 2011, 2010, and 2009 were
$1,021,756, $1,047,987, and $1,137,680, respectively, equal to the required contributions
for each year.
The Town’s contribution for the current and two proceeding year’s, all of which were equal
to the required contributions are as follows:
Years ended
HealthLong-term
June 30,
RetirementInsuranceDisabilityTotal
2011 $ 934,621$ 61,202$ 25,933 $ 1,021,756
2010 929,80773,58244,595 1,047,987
2009 961,911115,57460,195 1,137,680
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 11 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
C. Corrections Officers Retirement Plan
All full-time and permanent part-time employees employed as police dispatchers or
communications operators are eligible to participate in the Corrections Officers Retirement
Plan (CORP), a multiple-employer cost-sharing defined benefit 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 by writing to CORP, 3010
E Camelback Rd, Ste 200, Phoenix, AZ 85016 or by calling (602) 255-5575.
The contribution requirements of plan members are established and may be amended by
Arizona State statute. The CORP funding policy provides
for actuarially determined
employer contributions at rates which will provide assets sufficient to pay benefits when
due. For the fiscal year ending June 30, 2011, the required contribution rate of members
was 7.96%; the Town’s contribution rate was 5.00%. The Town’s contributions to CORP for
the fiscal years ended June 30, 2011, 2010 and 2009 were $285,555, $30,488,and $28,665,
respectively, which were equal to the required contributions for those years.
D. Elected Officials’ Retirement Plan
The Town’s Mayor and Council Members are eligible to participate in the Elected Officials’
Retirement Plan (EORP), a multiple employer cost-sharing defined benefit 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 the State statute and
generally provide retirement, death, long-term disability, survivor, and health insurance
premium benefits. EORP issues a publicly available financial report that includes financial
statements and required supplementary information. The report may be obtained by
writing to EORP, 3010 E Camelback Rd, Ste 200, Phoenix, AZ 85016 or by calling (602) 255-
5575.
Incorporated city or town employers are required to contribute an amount sufficient to meet
both the normal cost of a level-cost method attributable to the EORP, plus the amount
required to amortize the unfunded accrued liability for the employer. Such amount is to be
determined each year by actuarial valuation and paid as a level percent of compensation.
The contribution requirements for plan members are established and may be amended by
the fund manager, a five-member board. For the fiscal year ending June 30, 2011, the
required contribution rate of members was 7.0%; the Town’s contribution rate was 26.25%.
The Town’s contributions to EORP for the fiscal years ended June 30, 2011, 2010 and 2009
were $34,226, $29,793, and $17,496, respectively, which were equal to the required
contributions for those years.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 12 - RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters.
The Town's insurance protection is provided by the Arizona Municipal Risk Retention Pool, of
which the Town is a participating member. The limit for basis coverage is for $2,000,000
per occurrence on a claims made purpose. Excess coverage is for an additional
$13,000,000 per occurrence on a follow form, claims made basis. The Arizona Municipal
Risk Retention Pool is structured such that member premiums are based on an actuarial
review that will provide adequate reserves to allow the pool to meet its expected financial
obligations. The pool has the authority to assess its members additional premiums should
reserves and annual premiums be insufficient to meet the pool's obligations.
The Town continues to carry commercial insurance for all other risks of loss, including
workers’ compensation and employee health and accident insurance. Settled claims
resulting from these risks have not exceeded commercial insurance coverage in any of the
past three fiscal years.
NOTE 13 - COMMITMENTS AND CONTINGENCIES
The Town is subject to a number of lawsuits, investigations, and other claims (some of
which involve substantial amounts) that are incidental to the ordinary course of its
operations, including those related to wrongful death and personal injury matters. Although
the Town Attorney does not currently possess sufficient information to reasonably estimate
the amounts of the liabilities to be recorded upon the settlement of such claims and
lawsuits, some claims could be significant to the Town’s operations. While the ultimate
resolution of such lawsuits, investigations, and claims cannot be determined at this time, in
the opinion of Town management, based on the advice of the Town Attorney, the resolution
of these matters will not have a material adverse effect on the Town’s financial position.
Significant Contractual Commitments
At the end of fiscal year 2011, the Town was obligated to $3.4 million in significant
contractual commitments for transportation and park related construction projects.
Tangerine Corridor improvements, Camino de Manana road improvements and Twin Peaks
Interchange accounted for $2.7 million in commitments. Other transportation and park
related projects accounted for $671,655.
NOTE 14 - LEASING ARRANGEMENTS
Land – State of Arizona
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 $1,000,000 in
resort sales tax to the Town from the development project known as "Dove Mountain". It is
unknown when this event will occur, resulting in the start of the twenty year term.
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
NOTE 14 - LEASING ARRANGEMENTS (Conc’d)
These leases provide for payments of minimum annual rentals as follows, excluding real
estate taxes, common area charges, management fees, and sales taxes.
Years
Ending June
30,
2012522,720$
2013522,720
2014522,720
2015522,720
2016574,992
2017 - 20212,932,459
2022 - 20263,225,704
2027 - 20313,548,274
2032 - 20363,903,101
2037 - 20414,293,410
2042 - 20464,722,753
2047 - 20515,195,028
2052 - 20565,714,530
2057 - 20616,285,985
2062 - 20666,914,585
2067 - 20717,606,043
2072 - 20768,366,647
2077 - 20819,203,312
2082 - 208610,123,643
2087 - 209111,136,008
2092 - 209612,249,608
2097 - 20997,926,216
otal116,013,178$
T
Minimum annual rentals above excludes annual rental under the remaining renewal options
as of June 30, 2011. Rent expense under the above leases for fiscal 2010-11 aggregated
$522,720.
NOTE 15 – SUBSEQUENT EVENTS
Bond Call:
In July 2011 the Marana Municipal Property Corporation (MMPC), a component unit of the
Town, retired approximately $2.0 million of the outstanding MMPC Series 2008B bonds
through a an early bond call. The Series 2008B debt was issued in order to advance fund
various projects to acquire, construct, improve and extend sewer facilities, streets and parks
within the Town of Marana. The bonds were issued at an interest rate of 5.125%.
Í«°°´»³»²¬¿®§ ײº±®³¿¬·±²
éÕÔÊ ÍÜÖØ ÔÏÉØÏÉÔÎÏÜÑÑÄ ÑØ×É ÛÑÜÏÒ
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
(REQUIRED SUPPLEMENTARY INFORMATION)
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2011
Budeted Amounts
g
Variance -
Positive
OriginalFinalActual(Negative)
Revenues:
Sales taxes18,983,515$ 18,983,515$ 20,512,419$ 1,528,904$
Interovernmental 5,671,8665,671,866 5,724,962 53,096
g
Licenses, fees & ermits1,613,5001,613,500 2,502,494888,994
p
Fines, forfeitures & enalties735,000735,000537,680197,320
p()
Chares for services480,950480,950 430,08450,866
g()
Lease income582,750 582,750 647,163 64,413
Contributions-- 5,2115,211
Investment income75,00075,000 74,348652
()
Miscellaneous561,039 561,039 608,638 47,599
Total revenues 28,703,62028,703,620 31,042,999 2,339,379
Exenditures:
p
General overnment:
g
Generalovernment3,499,8203,499,8203,665,145165,325
g()
own council259,773259,773244,86714,906
T
own clerk376,693376,693349,63327,060
T
own manaer971,894971,894800,456171,438
Tg
Human Resources402,728402,728389,10513,623
Finance709,988709,988724,89014,902
()
Leal752,282752,282753,3841,102
g()
echnical Services1,501,1801,501,1801,356,403144,777
T
Municial Courts921,869921,869868,99652,873
p
Public Safet:
y
Police8,926,7548,926,7548,571,764354,990
Buildin Safet465,221465,221415,71749,504
gy
Hihwas and streets
gy
Public works1,240,584 1,240,584 1,282,571 41,987
()
Economic and communit develoment
yp
Develoment Services3,873,2933,863,793 3,772,78991,004
p
Communit develomen201,063201,063211,13510,072
ypt()
Culture and recreation
Parks and recreation2,702,957 2,702,957 2,611,224 91,733
ital outla1,207,5221,217,022 1,071,064145,958
Ca
py
Total exenditures 28,013,62128,013,621 27,089,143 924,478
p
Excess (deficiency) of revenues over
expenditures 689,999689,999 3,953,856 3,263,857
Other financin sources uses:
g()
ransfers ou2,615,7062,615,7062,667,79452,088
Tt()()()()
Total other financing sources (uses)(2,615,706)(2,615,706)(2,667,794)(52,088)
Chanes in fund balances1,925,7071,925,707 1,286,0623,211,769
g()()
Fund balances, beinnin of ear 22,212,63622,212,636 15,091,5767,121,060
ggy()
Fund balances, end of year
$ 20,286,92920,286,929$ 16,377,638$ (3,909,291)$
See accompanying notes to this schedule.
TOWN OF MARANA, ARIZONA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2011
NOTE 1 - BUDGETARY BASIS OF ACCOUNTING
The adopted budget of the Town is prepared on a basis of accounting consistent with
accounting principles generally accepted in the United States of America.
éÕÔÊ ÍÜÖØ ÔÏÉØÏÉÔÎÏÜÑÑÄ ÑØ×É ÛÑÜÏÒ
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
éÕÔÊ ÍÜÖØ ÔÏÉØÏÉÔÎÏÜÑÑÄ ÑØ×É ÛÑÜÏÒ
OTHER MAJOR GOVERNMENTAL FUNDS
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – BUDGET AND ACTUAL
éÕÔÊ ÍÜÖØ ÔÏÉØÏÉÔÎÏÜÑÑÄ ÑØ×É ÛÑÜÏÒ
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - TRANSPORTATION
YEAR ENDED JUNE 30, 2011
Bud
eted Amounts
g
Variance -
Positive
(Negative)
OriginalFinalActual
Revenues:
Sales taxes
$ 1,981,4961,981,496$453,903
$ $2,435,399
Investment income
21,09521,095(13,655)
7 ,440
Miscellaneous
- - - -
Total revenues
2,002,5912,002,591 440,2482,442,839
Expenditures:
Current -
General
overnmen
1,450,0001,450,000915,548
gt
534,452
Hihways and streets
g
- - - -
Economic and community
development
62,000 62,000 248 61,752
Capital outla
1,300,1841,300,184 1,077,725
y
222,459
Debt service -
Principal retiremen
44,69544,69511,170
t
33,525
Interest and fiscal chares
g
- - -
Total expenditures
2,856,8792,856,879 2,066,195
790,684
Excess (deficiency) of revenues
over expenditures
(854,288) (854,288)1,652,155 2,506,443
sources (uses):
Other financin
g
ransfers out
(2,251,868)(2,251,868)
T
(2,251,868) -
Total other financin sources
g
(uses)
(2,251,868)(2,251,868)(2,251,868) -
es in fund balances
Chan
(3,106,156)(3,106,156) 2,506,443
g
(599,713)
Fund balances, be
innin of yea
6,896,9386,896,938 3,785,882 (3,111,056)
ggr
Fund balances, end of yea
$ 3,790,7823,790,782$(604,613)
r
$ $3,186,169
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - PAG CAPITAL
YEAR ENDED JUNE 30, 2011
Bud
eted Amounts
g
Variance -
Positive
(Negative)
OriginalFinalActual
Revenues:
Inter
overnmental
$20,017,42520,017,425$6,968,817$ (13,048,608)$
g
Total revenues
20,017,42520,017,425 6,968,817 (13,048,608)
Expenditures:
Capital outla
20,017,42520,017,425 5,129,659 14,887,766
y
Total expenditures
20,017,42520,017,425 5,129,659 14,887,766
Excess (deficiency) of revenues
over expenditures
1,839,158
- - 1,839,158
Other financin sources (uses):
g
ransfers in
T
- - - -
Total other financin sources
g
(uses)
- - - -
Chanes in fund balances
1,839,158
g
- -1,839,158
Fund balances, be
innin of yea
(1,708,651)
ggr
- -(1,708,651)
Fund balances, end of yea
$130,507$130,507
r
$ -$ -
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - OTHER CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2011
Bud
eted Amounts
g
Variance -
Positive
(Negative)
OriginalFinalActual
Revenues:
Inter
overnmental
$ 2,500,0002,500,000$ 1,361,504$ (1,138,496)$
g
Licenses, fees & permits
25,00025,000 48,000 23,000
Contributions
15,560,00015,560,000 3,412,840 (12,147,160)
Investment income
750750 5,036 4,286
Total revenues
18,085,75018,085,750 4,827,380 (13,258,370)
Expenditures:
Current -
Hihways and streets
335,825335,825 150,302 185,523
g
Capital outla
59,851,68559,851,685 5,694,716 54,156,969
y
Total expenditures
60,187,51060,187,510 5,845,018 54,342,492
Excess (deficiency) of revenues
over expenditures
(42,101,760)(42,101,760)(1,017,638)41,084,122
Other financin sources (uses):
g
ransfers in
T
- - - -
ransfers out
T
- - - -
Total other financin sources
g
(uses)
- - - -
Chanes in fund balances
(42,101,760)(42,101,760) (1,017,638) 41,084,122
g
Fund balances, beinnin of yea
4,964,3154,964,315 3,457,366 (1,506,949)
ggr
unaancesects, en o
Fdbl(dfii)df
year
$ (37,137,445)(37,137,445)$ 2,439,728$$39,577,173
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - TANGERINE FARMS
IMPROVEMENT DISTRICT DEBT SERVICE
YEAR ENDED JUNE 30, 2011
Bud
eted Amounts
g
Variance -
Positive
(Negative)
OriginalFinalActual
Revenues:
Special assessments
$ 2,136,0882,136,088$ 2,239,244$ 103,156$
Total revenues
2,136,0882,136,088 2,239,244103,156
Expenditures:
Debt service -
Principal retiremen
1,040,0001,040,000 1,336,000296,000
t
es
Interest and fiscal char
1,096,0881,096,088 1,096,488400
g
Total expenditures
2,136,0882,136,0882,432,488296,400
Excess (deficiency) of revenues
over expenditures
(193,244)
- - (193,244)
Fund balances, beinnin of year
806,317806,317
gg
- -
Fund balances, end of yea
$613,073$613,073
r
$ -$ -
NON-MAJOR GOVERNMENTAL FUNDS
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS -
BY FUND TYPE
JUNE 30, 2011
Total
Non-Major
SpecialGovernmental
RevenueCapital ProjectsDebt ServiceFunds
SSETS
A
Cash and cash equivalents
$ 8,910,0795,323,529$ 106,127$ 14,339,735$
Taxes receivable
154 1,2851,439
-
ccounts receivable
3,2023,202
A
- -
Interest receivable
391,706 1,745
-
Due from governments
568,99964,968633,967
-
96,8189,499,2739,596,091
Restricted cash and investments
-
$ 9,073,7255,895,730$ 9,606,724$ 24,576,179$
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
$ 257,319316,995$ 6,197$ 580,511$
Accounts payable
25,98325,983
Accrued payroll and employee benefits
- -
232,955 949,4081,182,363
Due to other funds
-
646,6623,385 650,047
Deposits held for others
-
305,23064,968370,198
Deferred Revenue
-
648,208558,6271,602,2672,809,102
Total liabilities
Fund balances:
8,515,0985,247,522 8,004,457 21,767,077
Restricted
8,515,0985,247,522 8,004,457 21,767,077
Total fund balances
$ 9,073,7255,895,730$ 9,606,724$ 24,576,179$
Total liabilities and fund balances
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
YEAR ENDED JUNE 30, 2011
otal
T
Non-Major
SpecialGovernmental
RevenueCapital ProjectsDebt ServiceFunds
Revenues:
Property tax
$ 69,324-$ 514,529$ 583,853$
Intergovernmental
2,533,186118,2081,000,0003,651,394
Licenses, fees & permits
1,810,5131,810,513
- -
Fines, forfeitures & penalties
192,015192,015
- -
Contributions
94,515177,860272,375
-
Investment income
15,6281,538 517 17,683
Miscellaneous
3,8891,9435,832
-
Total revenues
2,906,5422,112,0771,515,0466,533,665
Expenditures:
Current -
General government
7,93072,35180,281
-
Public safety
346,998346,998
- -
Highways and streets
1,610,7911,610,791
- -
Community development
429,186429,186
- -
Capital outlay
1,585,71796,1651,681,882
-
Debt service -
Principal retirement
2,120,0002,120,000
- -
Interest and fiscal charges
3,735,1883,735,188
- -
Bond issuance costs
108,697108,697
-
Total expenditures
2,555,4911,702,3445,855,18810,113,023
Excess (deficiency) of revenues over
expenditures
409,733351,051 (4,340,142) (3,579,358)
Other financing sources (uses):
Face value of bonds issued
1,000,0001,000,000
- -
Transfers in
52,0885,245,2645,297,352
-
Transfers out
(68,656)(68,656)
- -
Total other financing sources (uses)
931,34452,0885,245,2646,228,696
Change in fund balances
1,341,077403,139 905,122 2,649,338
Fund balances, beginning of year
4,844,3837,174,0217,099,33519,117,739
Funaances, en o year
$ 8,515,0985,247,522$ 8,004,457$ 21,767,077$
dbldf
éÕÔÊ ÍÜÖØ ÔÏÉØÏÉÔÎÏÜÑÑÄ ÑØ×É ÛÑÜÏÒ
NON-MAJOR SPECIAL REVENUE FUNDS
this fund accounts for excise fuel taxes which are distributed
Highway User Revenue Fund –
to cities and towns based on a formula. A constitutional restriction requires that these funds be
used solely for street and highway purposes.
this fund accounts for the CDBG program
Community Development Grant Fund (CDBG) –
which provides resources to address community development needs
this revolving fund accounts for resources utilized on affordable
Affordable Housing Fund –
housing projects and programs.
this fundaccounts for resources required to
Judicial Collection Enhancement Fund –
improve, maintain and enhance the ability to collect and manage monies assessed or received
by the courts including restitution, child support, fines and civil penalties; and to improve court
automation projects likely to improve case processing or the administration of justice.
this fund accounts for special distributions of state
Local Transportation Assistance Fund –
lottery monies which are restricted for transportation and/or transit related projects and
programs.
this fund accounts for local Fill The Gap resources which shall be used to
Fill The Gap Fund –
improve, maintain and enhance the ability to collect and manage monies assessed or received
by the courts, to improve court automation and to improve case processing or the
administration of justice.
this fundaccounts for resources required to fund local or
Local Technology Fund –
collaborative technology improvement projects and programs.
includes all other grant related programs and projects.
Other Special Revenue Fund –
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2011
Community
Highway User DevelopmentAffordable
RevenueBlock GrantHousing
SSETS
A
$ 27,1693,483,891$ 86,026$
Cash and cash equivalents
ccounts receivable
A
- - -
27,507211,544
Due from governments
-
$ 54,6763,695,435$ 86,026$
Total assets
LIABILITIES AND FUND BALANCE
S
Liabilities:
$ 8,514157,596$$4,199
Accounts payable
18,254664
Accrued payroll and employee benefits
-
21,301
Deferred revenue
- -
30,479175,850 4,199
Total liabilities
Fund balances:
24,1973,519,585 81,827
Restricted
24,1973,519,585 81,827
Total fund balances
$ 54,6763,695,435$ 86,026$
Total liabilities and fund balances
JudicialLocal
CollectionTransportationLocalOther Special
EnhancementAssistanceFill-the-GapTechnologyRevenue FundTotals
$71,416$280,884$46,229$453,522$874,392$5,323,529
-2,0001,2023,202
- -
-329,948 568,999
- - -
$71,416$280,884$48,229$453,522$1,205,542$5,895,730
$106,028$-$28$40,630$316,995
$ -
-$1,176$5,88925,983
- -
-283,929 305,230
- - -
106,0281,204330,448 648,208
- -
71,416 174,85648,229452,318875,0945,247,522
71,416 174,85648,229452,318875,0945,247,522
$71,416$280,884$48,229$453,522$1,205,542$5,895,730
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2011
CommunityJudicial
Highway User DevelopmentAffordableCollection
RevenueBlock GrantHousingEnhancement
Revenues:
Interovernmental
$ 64,8721,869,483
g
$ $ - $ -
Fines, forfeitures & enaltie
12,746
ps
- - -
Contribution
s
- - - -
Investment incom
3-
e
- -
Miscellaneou
1,943
s
- - -
Total revenues
64,8721,869,486 1,943 12,746
Exenditures:
p
Current -
overnmen
General
998
gt
- - -
Public safet
y
- - - -
Hihwas and street
1,433,674
gys
- - -
Communit develomen
93,545 47,887
ypt
- -
Caital outla
py
- - - -
Total exenditures
93,5451,433,674 47,887 998
p
Excess (deficiency) of revenues over
(28,673)435,812 (45,944) 11,748
expenditures
Other financin sources (uses):
g
Transfers in
- - - -
Total other financin sources (uses)
g
- - - -
Chane in fund balances
(28,673)435,812 (45,944) 11,748
g
Fund balances deficits, beinnin of ear
52,8703,083,773 127,771 59,668
()ggy
unaancesecs, en oear
$ 24,1973,519,585$ 81,827$ 71,416$
Fdbl(dfiit)dfy
Local
TransportationLocalOther Special
AssistanceFill-the-GapTechnologyRevenue FundTotals
$ -27,453$ 2,533,186571,378$
$ $ -
7,029- 127,138 45,102 192,015
- -177,860177,860
-
- -1,5351,538
-
- -1,943
- -
27,453 7,029127,138795,8752,906,542
- -37,90133,45272,351
- -346,998346,998
-
177,117 -
- -1,610,791
- -287,754429,186
-
- -96,16596,165
-
177,117 -37,901764,3692,555,491
(149,664) 7,029 89,237 31,506 351,051
6,863 -45,22552,088
-
6,863 -45,22552,088
-
(142,801) 7,02989,23776,731403,139
317,657 41,200363,081798,3634,844,383
$ 174,856$ 48,229$452,318$875,094$5,247,522
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
HIGHWAY USER REVENUE FUND
YEAR ENDED JUNE 30, 2011
Highway User Revenue Fund
Variance -
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 1,810,9021,810,902$ 1,869,483$ 58,581$
Intergovernmental
Investment income7,5007,5003(7,497)
1,818,4021,818,402 1,869,486 51,084
Total revenues
Expenditures:
Current -
1,894,2061,894,206 1,433,674 460,532
Highways and streets
Capital outlay
- - - -
1,894,2061,894,206 1,433,674 460,532
Total expenditures
Excess (deficiency) of revenues over
expenditures (75,804)(75,804) 435,812 511,616
Other financing sources (uses):
Transfers in
- - - -
Total other financing sources (uses)
- - - -
(75,804)(75,804) 435,812 511,616
Change in fund balance
524,042524,042 3,083,773 2,559,731
Fund balance, July 1, 2010
$ 448,238448,238$ 3,519,585$ 3,071,347$
Fund balance (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
YEAR ENDED JUNE 30, 2011
Community Development Block Grant Fund
Variance -
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 541,000541,000$ 64,872$ (476,128)$
Intergovernmental
(476,128)
Total revenues
541,000 541,000 64,872
Expenditures:
Current -
447,455
Community development
541,000 541,000 93,545
447,455
Total expenditures
541,000 541,000 93,545
Excess (deficiency) of revenues over
expenditures (28,673)
- -(28,673)
(28,673)
Change in fund balance
- -(28,673)
52,870
Fund balance, July 1, 2010
- - 52,870
$24,197$ 24,197
Fund balance, June 30, 2011
$ -$ -
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
AFFORDABLE HOUSING REVOLVING FUND
YEAR ENDED JUNE 30, 2011
Affordable Housing Revolving Fund
Variance -
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ -$ -$ -$ -
Investment income
- - - -
(98,057)
Miscellaneous 100,000 100,000 1,943
Total revenues (98,057)
100,000 100,000 1,943
Expenditures:
Current -
Community development 27,113
75,000 75,000 47,887
Total expenditures 27,113
75,000 75,000 47,887
Excess (deficiency) of revenues over
expenditures(45,944) (70,944)
25,000 25,000
Change in fund balance(45,944) (70,944)
25,000 25,000
Fund balance (deficits), July 1, 2010
- -127,771127,771
Fund balance (deficits), June 30, 2011$25,000$25,000$81,827$ 56,827
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
JUDICIAL COLLECTION ENHANCEMENT FUND
YEAR ENDED JUNE 30, 2011
Judicial Collection Enhancement Fund
Variance -
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 14,25014,250$ 12,746$ (1,504)$
Fines, forfeitures & penalties
(1,504)
Total revenues
14,250 14,250 12,746
Expenditures:
Current -
34,802
General government
40,800 35,800 998
34,802
Total expenditures
40,800 35,800 998
Excess (deficiency) of revenues over
expenditures (21,550)(26,550) (998) 20,552
(21,550)(26,550) 33,298
Change in fund balance
11,748
59,668
Fund balance (deficits), July 1, 2010
- - 59,668
$71,416$ 71,416
Fund balance (deficits), June 30, 2011
$ -$ -
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
LOCAL TRANSPORTATION ASSISTANCE FUND
YEAR ENDED JUNE 30, 2011
Local Transportation Assistance Fund
Variance -
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$27,453$ 27,453
Intergovernmental
$ -$ -
Investment income
- - - -
27,453
Total revenues
- - 27,453
Expenditures:
Current -
(2,117)
Public safety
175,000 175,000 177,117
Capital outlay
- - - -
(2,117)
Total expenditures
175,000 175,000 177,117
Excess (deficiency) of revenues over
expenditures (175,000)(175,000) (149,664) 25,336
Other financing sources (uses):
6,863
Transfers in
- - 6,863
6,863
Total other financing sources (uses)
- - 6,863
(175,000)(175,000) (142,801) 32,199
Change in fund balance
36,141
Fund balance (deficits), July 1, 2010
281,516 281,516 317,657
$ 106,516106,516$ 174,856$ 68,340$
Fund balance (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
FILL-THE-GAP FUND
YEAR ENDED JUNE 30, 2011
Fill-the-Gap
Variance -
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 2,5002,500$ 7,029$ 4,529$
Fines, forfeitures & penalties
4,529
Total revenues
2,500 2,500 7,029
Expenditures:
Current -
31,000
General government
31,000 31,000 -
31,000
Total expenditures
31,000 31,000 -
Excess (deficiency) of revenues over
expenditures (28,500)(28,500) 35,529
7,029
(28,500)(28,500) (26,471)
Change in fund balance
7,029
41,200
Fund balance (deficits), July 1, 2010
- - 41,200
$(28,500)$(28,500)$ 76,72948,229$
Fund balance (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
LOCAL TECHNOLOGY
YEAR ENDED JUNE 30, 2011
Local Technology Fund
Variance -
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 110,000110,000$ 127,138$ 17,138$
Intergovernmental
17,138
Total revenues
110,000 110,000 127,138
Expenditures:
Current -
248,954
General government
286,855 286,855 37,901
248,954
Total expenditures
286,855 286,855 37,901
(176,855)(176,855) 266,092
Change in fund balance
89,237
363,081
Fund balance (deficits), July 1, 2010
- - 363,081
$ (176,855)(176,855)$ 452,318$ 629,173$
Fund balance (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2011
Other Special Revenue Fund
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
$ 1,304,8501,304,850$ 571,378$ (733,472)$
Intergovernmental
50,00050,000(4,898)
Fines, forfeitures & penalties
45,102
177,860
Contributions
- - 177,860
1,6151,615(80)
Investment income
1 ,535
1,356,4651,356,465 (560,590)
Total revenues
795,875
Expenditures:
Current -
804,775850,000 771,323
General government
33,452
320,323320,323 (26,675)
Public safety
346,998
Highways and streets
- - - -
(287,754)
Community development
- - 287,754
45,225 (50,940)
Capital outlay
- 96,165
1,170,3231,170,323405,954
Total expenditures
764,369
Excess (deficiency) of revenues over
expenditures 186,142186,142 154,636
31,506
Other financing sources (uses):
45,225
Transfers in
- - 45,225
45,225
Total other financing sources (uses)
- - 45,225
186,142186,142199,861
Change in fund balance
76,731
100,000100,000698,363
Fund balance (deficits), July 1, 2010
798,363
$286,142$286,142$875,094$ 898,224
Fund balance (deficits), June 30, 2011
éÕÔÊ ÍÜÖØ ÔÏÉØÏÉÔÎÏÜÑÑÄ ÑØ×É ÛÑÜÏÒ
NON-MAJOR CAPITAL PROJECTS FUND
Capital Projects Funds are created to account for the purchase or construction of major capital
facilities which are not financed by the general, enterprise, or special revenue funds.
– this fund accounts for the financing and
Northwest Benefit Area Impact Fees
construction of transportation projects that are defined within the northwest benefit area.
– this fund accounts for the financing and construction
Northeast Benefit Area Impact Fees
of transportation projects that are defined within the northeast benefit area.
– This fund accounts for the financing and construction of
South Benefit Area Impact Fees
the Twin Peaks Interchange Project.
– this fund accounts for park impact fees collected by the Town and
Park Impact Fees Fund
utilized for authorized capital improvements.
– this fund accounts for the financing and construction of projects
Pima County Bond Fund
funded through Pima County Bond program.
– this fund accounts for sales tax proceeds which are used for
Sales Tax Capital Fund
authorized capital improvements.
– this fund accounts for the proceeds from the sale of general
Gladden Farms Capital Fund
obligation bonds which are used for authorized capital improvements.
– this fund accounts for the proceeds from property tax
Vanderbilt Farms Capital Fund
revenues to be used for authorized capital improvements.
– this fund accounts for the financing and construction of
Saguaro Springs Capital Fund
authorized capital improvements.
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2011
NorthwestNortheastSouth
TransportationTransportationTransportation
Impact FeesImpact FeesImpact FeesPark Impact Fees
SSETS
A
Cash and cash equivalents
$ 1,072,7011,400,615$ 2,215,045$ 3,118,08$
2
Taxes receivable
- --
-
Interest receivable
- 1,706-
-
Due from overnments
- --
g
-
Restricted cash
- --
-
Total assets
$ 1,072,7011,400,615$ 2,216,751$ 3,118,08$
2
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$ --$ 136,081$ 68,071$
Due to other funds
- --
-
Deferred revenue
- --
-
Deposits held for others
- --
-
Total liabilities
-136,08168,071
-
Fund balances:
1,072,7011,400,615 2,080,673,050,011
Restricted
0
Total fund balances
1,072,7011,400,615 2,080,673,050,011
0
Total liabilities and fund
balances
$ 1,072,7011,400,615$ 2,216,751$ 3,118,082$
Saguaro
Pima County Sales Tax Gladden Farms VanderbiltSprings
Bond CapitalCapitalCapitalFarms CapitalCapitalTotals
$ 797,132$ 263,14$39,973$ 8,910,07
69
$ - $ 3,385
154 154
- - - -
- 1,706
- - - -
64,968 - 64,968
- - -
96,818 96,818
- - - -
$ 64,968$ 797,132$ 360,11$39,973$ 9,073,725
8
$ 3,385
$ 48,468$ 4,699$ -$ 257,319
$ -$ -
232,955 - 232,955
- - -
64,968 - 64,968
- - -
- 3,385
- - - 3,385
346,391 4,699 -558,62
7
- 3,385
792,433(281,423) 360,11 39,973 8,515,09
88
-
(281,423) 792,433360,11
39,973 8,515,09
88
-
$ 797,13264,968$ 360,118$ 39,973$ 9,073,725
$ $ 3 ,385
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2011
NorthwestNortheastSouth
TransportationTransportationTransportation
Impact FeesImpact FeesImpact Fees
Revenues:
Property tax
$ --$ -$
Intergovernmental
--
-
Licenses, fees & permits
475,63251,697 339,317
Contributions
--
-
Investment income
-1 11,807
Miscellaneous revenue
--
-
Total revenues
475,63251,698 351,124
Expenditures:
Current -
General government
--
-
Capital outlay
-118,901
-
Debt service
Bond Issuance Costs
--
-
Total expenditures
-118,901
-
Excess (deficiency) of revenues over
expenditures
475,63251,698 232,223
Other financing sources (uses):
Face value of bonds issued
--
-
Transfers ou
--
t
-
Total other financing sources (uses)
--
-
Change in fund balances
475,63251,698 232,223
Fund balances (deficits), beginning of year
597,0691,348,917 1,848,447
Fund balances (deficits), end of year
$ 1,072,7011,400,615$ 2,080,670$
anderbilt
V
Farms
Park Impact Pima County Sales Tax Gladden
FeesBond CapitalCapitalFarms CapitalCapitalTotals
$-$-$61,870$7,454$69,324
$ -
118,208- 118,208
- - -
943,8671,810,513
- - - -
94,515 94,515
- - - -
1,5621,1601,075 15,628
- 23
3,889 3,889
- - - -
945,429118,2085,049157,4602,112,077
7,477
7,90030 7,930
- - -
159,957222,152 195,707889,0001,585,717
-
108,697 108,697
- - -
167,857222,152 195,707997,7271,702,34
4
-
(103,944)777,572 (190,658) (840,267) 7,477 409,733
1,000,000
- - -1,000,000 -
(68,656) (68,656)
- - - -
931,344 931,344
- - - -
777,572(103,944)(190,658)91,0771,341,077
7,477
2,272,439(177,479) 983,091 269,04132,4967,174,021
$3,050,011$(281,423)$792,433$360,118$8,515,098
$ 39,973
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
NORTHWEST TRANSPORTATION IMPACT FEES
YEAR ENDED JUNE 30, 2011
Northwest Transportation Impact Fee
s
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax
$ -$ -$ - $ -
Property tax
- - - -
Intergovernmental
- - - -
118,500118,500 (66,803)51,697
Licenses, fees & permits
Contributions
- - - -
2,5002,500 1 (2,499)
Investment income
121,000121,000 (69,302)51,698
Total revenues
Expenditures:
Current -
General government
- - - -
Culture and recreation
- - - -
Capital outlay
- - - -
Debt service -
Bond issuance costs
- - - -
Total expenditures
- - - -
Excess (deficiency) of revenues over
expenditures 121,000121,000 51,698 (69,302)
Other financing sources (uses):
Transfers out
- - - -
Total other financing sources (uses)
- - - -
121,000121,000 (69,302)51,698
Change in fund balance
s
958,712958,7121,348,917390,205
Fund balances (deficits), July 1, 2010
$ 1,079,7121,079,712$ 1,400,615$ 320,903$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
NORTHEAST TRANSPORTATION IMPACT FEES
YEAR ENDED JUNE 30, 2011
Northeast Transportation Impact Fee
s
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax
$ -$ -$ - $ -
Property tax
- - - -
Intergovernmental
- - - -
235,000235,000475,632 240,632
Licenses, fees & permits
Contributions
- - - -
1,5001,500 (1,500)
Investment income
-
239,132
Total revenues
236,500 236,500 475,632
Expenditures:
Current -
General government
- - - -
Culture and recreation
- - - -
Capital outlay
- - - -
Debt service -
Bond issuance costs
- - - -
Total expenditures
- - - -
Excess (deficiency) of revenues over
expenditures 239,132
236,500 236,500 475,632
Other financing sources (uses):
Transfers in
- - - -
Total other financing sources (uses)
- - - -
239,132
Change in fund balance
s
236,500 236,500 475,632
597,069
Fund balances (deficits), July 1, 2010
- - 597,069
$ 236,500236,500$ 1,072,701$ 836,201$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
SOUTH TRANSPORTATION IMPACT FEES
YEAR ENDED JUNE 30, 2011
South Transportation Impact Fee
s
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$-
Sales tax
$ -$ -$ -
-
Property tax
- - -
-
Intergovernmental
- - -
181,000181,000 339,317 158,317
Licenses, fees & permits
-
Contributions
- - -
7,5007,500 11,807 4,307
Investment income
188,500188,500351,124162,624
Total revenues
Expenditures:
Current -
-
General government
- - -
-
Culture and recreation
- - -
500,000500,000 118,901 381,099
Capital outlay
Debt service -
-
Bond issuance costs
- - -
500,000500,000118,901381,099
Total expenditures
Excess (deficiency) of revenues over
expenditures (311,500)(311,500) 232,223 543,723
Other financing sources (uses):
-
Transfers out
- - -
-
Total other financing sources (uses)
- - -
(311,500)(311,500) 232,223 543,723
Change in fund balance
s
8,744,7818,744,781 1,848,447 (6,896,334)
Fund balances (deficits), July 1, 2010
$ 8,433,2818,433,281$ 2,080,670$ (6,352,611)$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
PARK IMPACT FEES
YEAR ENDED JUNE 30, 2011
Park Impact Fee
s
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax
$ -$ -$ - $ -
Property tax
- - - -
Intergovernmental
- - - -
350,000350,000 943,867 593,867
Licenses, fees & permits
Contributions
- - - -
12,25012,250 1,562 (10,688)
Investment income
Miscellaneous revenue
- - - -
362,250362,250945,429583,179
Total revenues
Expenditures:
Current -
General government
- - - -
7,900(7,900)
Culture and recreation
- -
820,500816,000 159,957 660,543
Capital outlay
Debt service -
Bond issuance costs
- - - -
816,000820,500167,857652,643
Total expenditures
Excess (deficiency) of revenues over
expenditures (458,250)(453,750) 777,572 1,235,822
Other financing sources (uses):
Transfers in
- - - -
Total other financing sources (uses)
- - - -
(458,250)(453,750) 777,572 1,235,822
Change in fund balance
s
3,727,9773,727,977 2,272,439 (1,455,538)
Fund balances (deficits), July 1, 2010
$ 3,269,7273,274,227$ 3,050,011$ (219,716)$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
PIMA COUNTY BOND CAPITAL
YEAR ENDED JUNE 30, 2011
Pima County Bond Capital
ariance -
V
Positive
(Negative)
Original BudgetFinal BudgetActual
Revenues:
$ --
Sales tax
$ $ -$ -
Property tax
- - - -
1,123,3211,123,321 (1,005,113)
Intergovernmental
1 18,208
Licenses, fees & permits
- - - -
Contributions
- - - -
Investment income
- - - -
1,123,3211,123,321 (1,005,113)
Total revenues
1 18,208
Expenditures:
Current -
General government
- - - -
Culture and recreation
- - - -
1,123,3211,123,321901,169
Capital outlay
2 22,152
Debt service -
Bond issuance costs
- - - -
1,123,3211,123,321901,169
Total expenditures
2 22,152
Excess (deficiency) of revenues over
expenditures(103,944)
- -(103,944)
Other financing sources (uses):
Transfers in
- - - -
Total other financing sources (uses)
- - - -
(103,944)
Change in fund balance
s
- -(103,944)
(177,479)
Fund balances (deficits), July 1, 2010
- -(177,479)
$ --$ (281,423)$ (281,423)$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
SALES TAX CAPITAL
YEAR ENDED JUNE 30, 2011
Sales Tax Capital
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax
$ -$ -$ -$ -
Property tax
- - - -
Intergovernmental
- - - -
Licenses, fees & permits
- - - -
Contributions
- - - -
1,1601,160
Investment income
- -
3,8893,889
Miscellaneous revenue
- -
5,0491,160
Total revenues
- -
Expenditures:
Current -
General government
- - - -
Culture and recreation
- - - -
718,000718,000522,293
Capital outlay
195,707
Debt service -
Bond issuance costs
- - - -
718,000718,000522,293
Total expenditures
195,707
Excess (deficiency) of revenues over
expenditures (718,000)(718,000) (190,658) 527,342
Other financing sources (uses):
Transfers in
- - - -
Total other financing sources (uses)
- - - -
(718,000)(718,000) (190,658) 527,342
Change in fund balance
s
4,964,6304,964,630 3,981,539
Fund balances (deficits), July 1, 2010
983,091
$ 4,246,6304,246,630$ 792,433$ 4,508,881$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
GLADDEN FARMS COMMUNITY FACILITIES DISTRICT CAPITAL
YEAR ENDED JUNE 30, 2011
Gladden Farms Community Facilities District Capita
l
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax
$ -$ -$ -$ -
62,20962,209 61,870 (339)
Property tax
Intergovernmental
- - - -
Licenses, fees & permits
- - - -
123,602123,60294,515 (29,087)
Contributions
1,0751,075
Investment income
- -
(28,351)
Total revenues
185,811 185,811 157,460
Expenditures:
Current -
146,750146,750 146,72030
General government
Culture and recreation
- - - -
11,000
Capital outlay
900,000 900,000 889,000
Debt service -
108,697(8,697)
Bond issuance costs
100,000 100,000
1,146,7501,146,750 149,023
Total expenditures
997,727
Excess (deficiency) of revenues over
expenditures (960,939)(960,939) (840,267) 120,672
Other financing sources (uses):
1,000,0001,000,000 1,000,000
Bond proceeds
-
(68,656)
Transfers out
- - -
1,000,0001,000,000
Total other financing sources (uses)
931,344 -
52,016
Change in fund balance
s
39,061 39,061 91,077
129,545
Fund balances (deficits), July 1, 2010
139,496 139,496 269,041
$ 178,557178,557$ 360,118$ 181,561$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
VANDERBILT FARMS COMMUNITY FACILITIES DISTRICT CAPITAL
YEAR ENDED JUNE 30, 2011
anderbilt Farms Capital
V
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax
$ -$ -$ -$ -
3,8753,875 7,454 3,579
Property tax
Intergovernmental
- - - -
Licenses, fees & permits
- - - -
150,000150,000
Contributions
- (150,000)
2323
Investment income
- -
7,477 (146,398)
Total revenues
153,875 153,875
Expenditures:
Current -
239,000239,000
General government
-239,000
Culture and recreation
- - - -
Capital outlay
900,000 900,000 - 900,000
Debt service -
Bond issuance costs
- - - -
1,139,0001,139,000
Total expenditures
- 1,139,000
Excess (deficiency) of revenues over
expenditures (985,125)(985,125) 7,477 992,602
Other financing sources (uses):
1,000,0001,000,000
Bond proceeds
-(1,000,000)
1,000,0001,000,000
Total other financing sources (uses)
- (1,000,000)
7,477 (7,398)
Change in fund balance
s
14,875 14,875
(105,603)
Fund balances (deficits), July 1, 2010
138,099 138,099 32,496
$ 152,974152,974$ 39,973$ (113,001)$
Fund balances (deficits), June 30, 2011
éÕÔÊ ÍÜÖØ ÔÏÉØÏÉÔÎÏÜÑÑÄ ÑØ×É ÛÑÜÏÒ
NON-MAJOR DEBT SERVICE FUNDS
Debt Service Funds are created to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
– this fund accounts for the accumulation of resources and
1997 Bond Debt Service Fund
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.
– this fund accounts for the accumulation of resources and
2003 Bond Debt Service Fund
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.
– this fund accounts for the accumulation of resources and
2004 Bond Debt Service Fund
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.
– this fund accounts for the accumulation of resources and
2008 Bond Debt Service Fund
payment of principal and interest on the series 2008 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.
– this fund accounts for the accumulation of resources
Gladden Farms Debt Service Fund
and payment of principal and interest on the Gladden Farms general obligation bonds.
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2011
1997 Bond 2003 Bond 2004 Bond 2008 Bond Debt
Debt ServiceDebt ServiceDebt ServiceService
SSETS
A
Cash and cash equivalents
$4,753$ -$-
$ -
Property taxes receivable
-
- - -
Interest receviable
31
- - -
Restricted cash and investments
685,064187,896 431,125 7,129,315
Total assets
$ 689,817187,896$ 431,125$ 7,129,346$
LIABILITIES AND FUND BALANCE
S
Liabilities:
Accounts payable
$3,500
$ -$ -$ -
Due to other fund
81,652113,879669,558
s
-
Deposits held for others
-
- - -
Total liabilities
81,652113,879673,058
-
Fund balances:
689,817106,244 317,246 6,456,288
Restricted
Total fund balances
689,817106,244 317,246 6,456,288
Total liabilities and fund
balances
$ 689,817187,896$ 431,125$ 7,129,346$
Other Debt Gladden Farms
ServiceDebt ServiceTotals
$48,211$53,163$106,127
1,2851,285
-
839
-
1,065,8739,499,273
-
$48,211$1,120,3299,606,72
$
4
$ -2,697$ 6,197$
84,319949,408
-
646,662646,662
-
2,697 730,9811,602,267
45,514 389,3488,004,457
45,514 389,3488,004,457
$48,211$1,120,329$9,606,724
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2011
1997 Bond 2003 Bond 2004 Bond
Debt ServiceDebt ServiceDebt Service
Revenues:
Property Taxes
$ -$ - $ -
Intergovernmental
- - -
Investment income
- - -
Total revenues
- - -
Expenditures:
Debt service -
Principal retiremen
600,000210,000 400,000
t
Interest and fiscal charge
780,730165,317 346,299
s
Total expenditures
1,380,730375,317 746,299
Excess (deficiency) of revenues over
expenditures
(375,317)(1,380,730)(746,299)
Other financing sources (uses):
Transfers in
1,380,729376,115 747,050
Total other financing sources (uses)
1,380,729376,115 747,050
Change in fund balances
798 (1)751
Fund balances, beginning of year
689,818105,446 316,495
Fund balances, end of yea
$ 689,817106,244$ 317,246$
r
2008 Bond Debt Other Debt Gladden Farms
ServiceServiceDebt ServiceTotals
$ -$514,529$514,529
$ -
1,000,000 --1,000,000
440 -77517
1,000,440 -514,6061,515,046
720,000 -190,0002,120,000
1,955,9639,676477,2033,735,188
2,675,9639,676667,2035,855,188
(1,675,523) (9,676) (152,597)(4,340,142)
2,672,71
-68,6565,245,26
44
2,672,71
-68,6565,245,26
44
(9,676)997,191 (83,941) 905,122
55,1905,459,097 473,289 7,099,335
$ 45,5146,456,288$ 389,348$ 8,004,457$
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
1997 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2011
1997 Bond Debt Service
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes
$ -$ -$ - $ -
Intergovernmental
- - - -
Contributions
- - - -
Investment income
- - - -
Total revenues
- - - -
Expenditures:
Debt service -
210,000
Principal retirement
210,000 210,000 -
166,115798
Interest and fiscal charges
166,117 165,317
798
Total expenditures
376,117 376,115 375,317
Excess (deficiency) of revenues over
expenditures (376,115)(376,117) (375,317) 798
Other financing sources (uses):
-- - -
Face value of bonds issued
376,115-
Transfers in
376,115 376,115
-
Total other financing sources (uses)
376,115 376,115 376,115
(2)798
Change in fund balance
s
- 798
1,9851,985 103,461
Fund balances (deficits), July 1, 2010
105,446
$ 1,9851,983$ 106,244$ 104,259$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2003 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2011
2003 Bond Debt Service
ariance -
V
Positive
(Negative)
Original BudgetFinal BudgetActual
Revenues:
$ --
Property Taxes
$ $ -$ -
Intergovernmental
- - - -
Contributions
- - - -
Investment income
- - - -
Total revenues
- - - -
Expenditures:
Debt service -
600,000600,000-
Principal retirement
6 00,000
780,729780,729(1)
Interest and fiscal charges
7 80,730
1,380,7291,380,729 1,380,730 (1)
Total expenditures
Excess (deficiency) of revenues over
expenditures (1,380,729)(1,380,729) (1,380,730)(1)
Other financing sources (uses):
-- - -
Face value of bonds issued
1,380,7291,380,729 1,380,729 -
Transfers in
1,380,7291,380,729 1,380,729 -
Total other financing sources (uses)
-- (1) (1)
Change in fund balance
s
1,5081,508688,310
Fund balances (deficits), July 1, 2010
6 89,818
$ 1,5081,508$ 689,817$ $688,309
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2004 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2011
2004 Bond Debt Service
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes
$ -$ -$ - $ -
Intergovernmental
- - - -
Contributions
- - - -
Investment income
- - - -
Total revenues
- - - -
Expenditures:
Debt service -
400,000
Principal retirement
400,000 400,000 -
347,050751
Interest and fiscal charges
347,050 346,299
751
Total expenditures
747,050 747,050 746,299
Excess (deficiency) of revenues over
expenditures (747,050)(747,050) (746,299) 751
Other financing sources (uses):
Face value of bonds issued
- - - -
747,050
Transfers in
747,050 747,050 -
Total other financing sources (uses)
747,050 747,050 747,050 -
751
Change in fund balance
s
- - 7 51
2,9502,950 313,545
Fund balances (deficits), July 1, 2010
316,495
$ 2,9502,950$ 317,246$ (314,296)
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2008 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2011
2008 Bond Debt Service
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$-
Property Taxes
$ -$ -$ -
1,000,000
Intergovernmental
- -1,000,000
-
Contributions
- - -
440440
Investment income
- -
1,000,440
Total revenues
- -1,000,440
Expenditures:
Debt service -
720,000720,000720,000-
Principal retirement
1,952,7131,952,713 1,955,963 (3,250)
Interest and fiscal charges
2,672,7132,672,713 2,675,963 (3,250)
Total expenditures
Excess (deficiency) of revenues over
expenditures (2,672,713)(2,672,713) 997,190(1,675,523)
Other financing sources (uses):
2,672,7132,672,713 2,672,714 1
Transfers in
2,672,7132,672,713 2,672,714 1
Total other financing sources (uses)
997,191997,191
Change in fund balance
s
- -
5,459,0985,459,098 5,459,097 (1)
Fund balances (deficits), July 1, 2010
$ 5,459,0985,459,098$$6,456,288$997,190
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
OTHER DEBT SERVICE
YEAR ENDED JUNE 30, 2011
Other Debt Service
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$-
Property Taxes
$ -$ -$ -
-
Intergovernmental
- - -
-
Contributions
- - -
-
Investment income
- - -
-
Total revenues
- - -
Expenditures:
Debt service -
-
Principal retirement
- - -
(9,676)9,676
Interest and fiscal charges
- -
9,676(9,676)
Total expenditures
- -
Excess (deficiency) of revenues over
expenditures (9,676)(9,676)
- -
Other financing sources (uses):
-
Face value of bonds issued
- - -
-
Transfers in
- - -
-
Transfers out
- - -
-
Total other financing sources (uses)
- - -
(9,676)(9,676)
Change in fund balance
s
- -
55,18955,189 55,190 1
Fund balances (deficits), July 1, 2010
$ 55,18955,189$ 45,514$ (9,675)$
Fund balances (deficits), June 30, 2011
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
GLADDEN FARMS DEBT SERVICE
YEAR ENDED JUNE 30, 2011
Gladden Farms Debt Service
ariance -
V
OriginalPositive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 517,128517,128$ 514,529$ (2,599)$
Property Taxes
Intergovernmental
- - - -
Contributions
- - - -
7777
Investment income
- -
517,128 514,606517,128 (2,522)
Total revenues
Expenditures:
Debt service -
190,000 190,000190,000
Principal retirement
-
450,730 477,203450,730 (26,473)
Interest and fiscal charges
640,730 667,203640,730 (26,473)
Total expenditures
Excess (deficiency) of revenues over
expenditures (123,602)(123,602) (152,597) (28,995)
Other financing sources (uses):
Face value of bonds issued
- - - -
68,656
Transfers in
- - -
68,656
Total other financing sources (uses)
- - -
(123,602)(123,602) (83,941) 39,661
Change in fund balance
s
510,581 473,289510,581 (37,292)
Fund balances (deficits), July 1, 2010
$ 386,979386,979$ 389,348$ 2,369$
Fund balances (deficits), June 30, 2011
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TOWN OF MARANA, ARIZON
A
STATISTICAL SECTION
JUNE 30, 2011
Statistical Section
Financial presentations included in the Statistical Section provide data and information on the financial, physical, a
and economic characteristics of the Town of Marana. The following schedules cover multiple fiscal years and
provide users with a broader and more complete understanding of the Town and its financial affairs and economic
condition. They also present detailed information 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 Year1128
s
Changes in Net Assets - Last Five Fiscal Year2130
s
Governmental Activities Tax Revenues by Source - Last Five Year3134
s
Fund Balances of Governmental Funds - Last Five Fiscal Year4135
s
Changes in Fund Balances of Governmental Funds - Last Eight Fiscal Year5136
s
Revenue Capacit
y
hese schedules contain information to help users understand and assess the Town's local revenu
Te
source, the property tax.
Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable Property - 6137
Last Six Years
Property Tax Rates - Direct and Overlapping Governments - Last Ten Years7138
Principal Property Taxpayers - Current Year and Two Years Ago8139
Property Tax Levies and Collections - Last Ten Fiscal Year9140
s
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 Years10141
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years11142
Direct and Overlapping Governmental Activities Debt12143
Legal Debt Margin Information13144
Pledged-Revenue Coverage - Last Ten Fiscal Years14145
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 Year15146
s
Principal Employers - Current Year and Nine Years Ago16147
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 Year17148
s
Other Information
hese schedules present information to help users understand potential for growth and
T
economic opportunities within the town.
Sales Tax by Industry - Last Five Years18149
Principal Retail and Contracting Sales Taxpayers19150
Single Family Residential Permits Issued - Last Nine Year20151
s
Capital Assets Statistics by Function 21152
OWN OF MARAN
TA
NET ASSETS BY COMPONENT
LAST NINE FISCAL YEARS
(Accrual basis of accountin
)
g
(Amounts expressed in thousands)
Fiscal Year *
20032004200520062007
(as restated)
Governmental activities
$ 73,954
Invested in capital assets, net of related debt $ 10,658$ 20,043$ 28,450$ 159,963
Restricted 6,973 11,939
- - 59,313
Unrestricted 10,724 33,018
25,044 31,044 (279)
otalovernmental activities net assets 118,912
Tg
28,355 45,087 59,494 218,998
Business-type activities
14,990
Invested in capital assets, net of related debt 8,817 11,749 11,657 25,522
Restricted 397
- - -
Unrestricted 183 131
(2,091) (236) 966
otal business-type activities net assets 15,122
T
9,397 9,658 11,421 26,488
Primaryovernmen
gt
88,944
Invested in capital assets, net of related debt 19,475 31,792 40,107 185,485
Restricted 7,370 11,939
- - 59,313
Unrestricted 10,907 33,149
22,953 30,808 687
otal primary overnment net assets $134,033$245,485
Tg
$ 37,752$ 54,745$ 70,915
*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 nine years of historical data;
Tg
in contrast to any presentation based on the modified accrual basis of accountin which reflect ten years o
gf
historical data.
Schedule 1
2008200920102011
184,396$196,326
$ $ 174,286$ 193,721
25,465 45,727 25,459 28,136
22,320 39,916 39,929 38,889
232,181259,109
259,929 263,351
32,341 41,643 44,310 42,148
1,297 - - 73
(1,242) (4,714) (5,813)(2,683)
32,396 36,929 38,497 39,538
216,737238,031
215,929 238,474
26,762 45,727 25,459 28,209
21,078 35,202 34,116 36,206
$264,577$302,889
$ 296,858$ 297,606
OWN OF MARANA
T
CHANGES IN NET ASSETS
LAST NINE FISCAL YEARS
(Accrual basis of accountin)
g
(Amounts expressed in thousands)
Fiscal Year*
20032004200520062007
Expenses
Government activities:
General
overnment$8,740$10,134
g
$ 5,935$ 5,845$ 6,175
Development & plannin services
g
3,068 3,465 4,803 6,438 3,442
own Attorney
T
354 208 401 4 89 -
Public safety
4,642 5,305 6,309 8,948 9,187
Maistrate court
g
459 492 741 8 07 -
Hihways and streets
g
8,308 3,294 4,086 5,510 15,898
Health & Welfare ***
- - - - -
Culture & recreation
2,632 2,079 2,642 3,307 3,557
Economic & community development****
316 275 238 2 56 375
Interest on lon-term debt
g
761 689 1,709 1,816 2,297
otalovernment activities expenses
Tg
26,475 21,652 27,104 36,311 44,891
Business-type activities:
Airport
213 391 564 8 37 1,028
Water
1,171 1,730 1,974 2,629 3,227
otal business-type activities expenses
T
1,384 2,121 2,538 3,466 4,255
otal primary overnment expenses $39,777$49,146
Tg
$ 27,859$ 23,773$ 29,642
Proram Revenues
g
Governmental activities:
Chares for services:
g
Generalovernment 511$696$1,108
g
$ $ 1,797$ 472
Development & plannin services
g
2,612 1,050 3,153 5,969 4,718
own attorney
T
70 26 13 -
Public safety
1,580 338 1 92 19
Maistrate court
g
313 163 521 6 48 -
Hihways and streets
g
801 3,933 5 90 5
Health & Welfare
- - - -
Culture and recreation
148 577 722 1 91 208
Economic & community development
- 77 51
Operatinrants and contributions
gg
485 534 785 4 50 1,404
Capitalrants and contributions
g
5,319 4,323 3,135 26,036 5,904
otalovernment activities proram revenues
Tgg
9,388 10,895 13,386 34,614 13,365
Business-type activities:
Chan
es for services:
g
Airport
69 102 134 1 44 185
Water
1,158 1,552 2,375 3,216 2,905
Capitalrants and contributions
g
1,934 729 595 3,531 9,073
otal business-type activity proram revenues
Tg
3,161 2,383 3,104 6,891 12,163
otal primary overnment proram revenues
Tgg
12,549 13,278 16,490 41,506 25,528
Net (expense)/revenue
Governmental activities
(17,087) (10,757) (13,718) ( 1,697) (31,525)
Business-type activities
1,777 262 566 3,426 7,908
otal primary overnment net expense$1,729$(23,618)
Tg
$ (15,310)$ (10,495)$ (13,152)
Schedule 2
2008200920102011
$ 9,56512,925$ 14,638$ 10,643$
- 1,304 - -
- 9 17 - -
10,6759,044
1 1,215 12,255
- 9 46 - -
14,98615,425
1 0,269 6,734
10286
130 1 12
3,9433,335
3,978 4,818
4,8354,596
8,643 12,751
8655,173
2,500 2,530
50,04448,302
4 9,660 51,932
3,8033,392
1,196 2,546
1,1361,273
3,276 1,178
4,9394,665
4,472 3,724
$54,132$54,983$52,967
$ 55,656
$899$918$939$830
- - - -
- - - -
- - - -
- - - -
- - - -
--
- -
211140
200 3 15
1,9742,256
2,380 1,740
4,2213,555
4,700 3,537
11,61814,963
1 4,590 40,725
18,96321,744
2 2,768 47,235
235238
221 2 27
3,0353,103
2,968 2,718
3,4892,669
6,885 5,269
6,7596,010
1 0,074 8,214
25,72227,754
3 2,842 55,449
(4,697)(31,081)(26,558)
(26,892)
1,8201,345
5,602 4,490
$(21,290)$(207)$(29,261)$(25,213)
OWN OF MARANA
T
CHANGES IN NET ASSETS
LAST NINE FISCAL YEARS
(Accrual basis of accountin)
g
(Amounts expressed in thousands)
20032004200520062007
General Revenues and Other Chanes in
g
Net Assets
Governmental activities:
General revenues
$34,167$30,900
City sales taxes$ 17,336$ 20,059$ 25,126
Property taxes
- - - - -
Franchise fees
- - - - -
Hihway Users/Local Transit Assistance Fundin
gg
1,545 2,471 1,285 1,253 2,068
State shared revenues
2,615 2,938 1,803 3,634 6,894
Pima Association of Governments Fundin
g
1,975 1,418 - - -
Interovernmental -
g
- - 4,810
System development fees - 115 3,588 231
Investment income (loss)
(213) 602 757 1,835 4,463
Miscellaneous
199 - - - 221
ransfers
T
(1,103) - - - 470
otalovernmental activities
Tg
22,354 27,488 29,086 44,476 50,057
Business-type activities:
General revenues
Investment income
- - - -
Miscellaneous
- - - -
ransfers
T
1,103 - - - (470)
otal business-type activities
T
1,103 - - - (470)
otal primary overnment
Tg
23,457 27,488 29,086 44,476 49,586
Chane in Net Assets
g
Governmental activities 5,267 16,731 15,368 42,779 18,531
Business-type activities 2,880 262 566 3,426 7,437
otal primary overnment$46,204$25,968
Tg
$ 8,147$ 16,993$ 15,934
*The Town implemented Government Accounting Standards Board Statement #34 eectiveiscal year 2003.
fff
hereore, any presentation based on the accrual basis o accounting will relect nine years o historical data; in
Tffff
ied accrual basis o accounting which relect ten years o historical data.
contrast to any presentation based on the modi
ffff
** In prior iscal years, 2003 through 2006, the unctions o Town Attorney and Magistrate Court were reported
fff
separately. However, both unctions have been consolidated as par o the General Government unction, as per
fff
GeneralAccounting and Financial Reporting standards.
iscal years, 2003 through 2008, programs and services oered by the Senior Center were included in
***In prior
fff
unction o Culture and Recreation. Eectiveiscal year 2008, these programs and services are reported
the
fffff
under the unction o Health and Welare.
fff
****In prior iscal years, 2003 through 2007, the unctions o Development and Planning Services and Economic
fff
Development were reported separately. Eectiveiscal year 2008, the unctions were consolidated under
ffff
oneunction, Economic and Community Development.
f
iscal years, Highway Users Revenues and Local Transportation Assistance Funds were reported as general
In prior
f
ectiveiscal year 2008, these revenues are being reported as program revenues.
revenues. E
fff
Schedule 2
2008200920102011
27,173$21,662$22,948
$ $ 22,404
623584
460 6 91
313322
309 3 15
- - - -
6,4625,719
7,397 7,221
- - - -
- - - -
- - - -
135105
3,024 5 95
774814
459 1,227
(8)291309
(160)
30,26030,801
3 8,661 32,445
11
110 8
384
37 26
(291)(309)
160 8
(252)(304)
307 42
30,00830,497
3 8,968 32,487
(821)4,243
1 1,769 27,748
1,5681,041
5,909 4,532
$17,678$32,280$747$5,284
OWN OF MARAN
TA
Schedule 3
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST NINE FISCAL YEARS
(Accrual basis of accountin
)
g
(Amounts expressed in thousands)
FiscalHighway User
Year Sales TaxRevenue taxesTotal
201122,800$ 1,869$ 24,669$
201021,578 1,806 23,384
200922,718 1,936 24,654
200827,173 2,036 29,209
200730,900 2,068 32,969
200634,167 1,253 35,420
200525,126 1,285 26,411
200420,059 2,471 22,530
200317,336 1,545 18,881
*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 nine years of historical data;
Tg
in contrast to any presentation based on the modified accrual basis of accountin which reflect ten years of
g
historical data.
TOWN OF MARANA
Schedule 5
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
(Amounts expressed in thousands)
Fiscal Yea
r
2002200320042005200620072008200920102011
Revenues
Sales taxes15,258$20,059$ 22,40427,173$$22,948
$ $ 17,336$25,126$34,167$30,900$ 21,662
Property taxes584
- - - - - - 460 692 622
Intergovernmental revenues 14,69011,227 19,28017,707
11,736 6,620 7,189 4,160 21,607 16,331
Licenses, fees and permits 3,34110,1094,361
5,380 6,065 6,264 7,914 6,201 2,521 3,681
Fines, forfeitures and penalties730
362 313 365 481 628 767 808 869 879
Charges for services 430
- 148 116 113 220 380 980 706 621
Lease Income647
- 456 442 438 498 20 987 543 555
Special assessments2,239
- - - - - - - 2,136 2,352
Contributions3,690
- - - - - 379 1,457 658 381
System development fee
s
- - - 1,721 3,588 355 - - - -
Investment earnings (213)105
959 602 757 1,835 4,445 3,025 595 135
Miscellaneous 913 614
199 719 518 511 1,054 484 286 820
Total revenues 41,230 57,99554,055
34,608 30,924 35,758 58,87463,096 53,017 48,039
Expenditures
General government 9,661
3,521 3,960 5,307 5,626 6,533 8,485 9,999 8,947 9,080
Public safety 9,334
4,070 4,254 4,865 5,325 7,125 7,910 10,500 11,204 10,164
Highways and streets3,043
2,987 3,102 2,365 2,833 3,152 5,868 3,897 3,693 2,854
Health and welfare59
- - - - - - 130 113 75
Economic and community developmen4,520
t
4 ,518 2,578 3,101 4,050 5,615 3,345 4,910 4,405 4,654
Culture and recreation 2,552
1,398 1,673 1,705 2,045 2,574 2,894 3,267 3,665 3,309
Town attorney
371 354 208 365 427 - - 917 - -
Magistrate Court
386 441 480 557 704 - - 946 -
Community developmen
t
306 316 275 202 217 343 - 370 - -
Capital outlay 29,084 57,21313,800
14,100 16,414 18,808 13,06232,710 35,888 29,420
Debt service
Principal 1,440 3,490
1,533 1,569 1,489 3,450 3,477 2,129 2,535 3,191
Interest 807 4,832
758 689 1,611 1,785 2,453 3,121 2,313 4,931
Other charges 109
4 4 505 465 - 1,184 - 628
Total expenditures 53,651 95,16551,400
33,908 35,384 39,876 44,64468,670 75,624 67,678
Excess of revenues
over (under) expenditures (4,461)(12,421)14,230 (5,574) (22,607)(37,171)(19,639)2,655
700 (4,119)
Other financing sources (uses)
Transfers in 4,69839,7665,297
8,680 16,498 12,211 2,826 4,195 15,978 8,492
Transfers out (17,601)(15,987) (8,201)(4,988)
(8,680) (12,211)(39,766) (4,698) (2,355) (4,355)
Bonds issued -10,780 29,024 3,075 39,7901,000
- - 19,700 -
Note Proceeds
- - - 7,000 - - - - - -
Lease purchase proceeds
591 - - - - - - - - -
Premium on bonds issued
- - - 307 - - - 443 - -
Discount on bonds issued
- - (111) - - - - - - -
Payments to refunded bond escrow agent - - - (6,644) - - - - - -
Total other financing sources (uses) (1,103) -11,443 29,494 2,9151,309
591 19,589 40,224 291
Net change in fund balance $(5,564)$15,470$17,617$ 3,964(19,348)$
$ 1,291$ (978)$14,230$23,920$(34,256)
Debt service as a percentage of
noncapital expenditures12.8%13.8%15.1%17.0%19.9%24.7%16.1%16.0%27.0%28.0%
Schedule 6
OWN OF MARAN
TA
SSESSED VALUE AND ESTIMATED ACTUAL OF TAXABLE PROPERTY
A
LAST SEVEN FISCAL YEARS
(Amounts expressed in thousands)
Assessed
FiscalLess: Tax TotalEstimatedValue as a
ActualPercentage
YearExemptTaxableTotal
EndedResidentialCommercialRealAssessedDirect Tax Taxableof Actual
RateValueValue
June 30PropertyPropertyPropertyValue
201118,920$ $ 10$2.8000$176,25610.0%
$ 1,338$ 17,592
201021,859 7 201,03810.3%
1,250 20,616 2.8000
200923,441 82.8000 215,98910.3%
1,190$ 22,259
200824,964 23 230,39310.7%
405 24,582 2.8000
200710,329 35 94,39010.9%
68 10,296 2.8000
2006 2,285 2 14,28615.9%
9 2,278 2.8000
2005 468 2 2,9489.5%
190 280 2.8000
SOURCE: Pima County Assessor's Office
NOTES:
1) The Town of Marana does not impose a property tax; principal property taxpayers represented above
reflect those properties within the boundaries of the Gladden Farms Community Facilities District,
which does impose a property tax.
Schedule 8
OWN OF MARAN
TA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND FOUR YEARS AGO
(Amounts expressed in thousands)
20112007
PercentagePercentage
of Total of Total
TaxabletaxableTaxabletaxable
AssessedAssessedAssessedAssessed
Value Rank ValueValue Rank Value
Taxpayer
Fidelity National Title TR 302123,350$ 124.7%2,659$ 156.3%
Smith Food & Dru
Centers Inc1,907 214.1%324 46.9%
g
Pulte Home Corp1,501 311.1%
Gladden 25 LLC1,388 410.2%282 56.0%
Federal National Mort
ae Assn1,262 59.3%
gg
Wein
arten Newquist LLC1,11368.2%224 74.7%
g
Freedber Barry & Freedbr
Bella 78716.4%
g
Wal
reen Arizona Dru Co. 87955.9%
gg
Fidelity National Title TR 60360 97655.6%
OS Realty LLC 104.4%595
Fidelity National Title TR 60338 23527.5%
Wells Far
o Bank National Assn. 9831.8%
g
Bank of America 33397.2%
itle Security Aency TR 891 62345.0%
Tg
Fidelity National Title TR 60183 81443.1%
First American Title TR 9170 101.7%79
otals 13,547$ 4,720$
T
Notes:
1) The Town of Marana does not impose a property tax; principal property taxpayers represented above
reflect those properties within the boundaries of the Gladden Farms Community Facilities District,
which does impose a property tax.
2) Due to cost considerations for the acumulation of data, the Town has elected to present less than ten
year of data for certain statistical schedules. This information will be accumulated and reported each
year until the complete ten years of data is presented.
Source: Pima County Assessor's Office - IS Dept
(Information System's Coordinator)
OWN OF MARAN
TA
Schedule 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Collected within the Fiscal Year
of the LevyTotal Collections to Date
Fiscal Year
Ended June Total Tax Levy for PercentagePercentage
30Fiscal YearAmountof LevyAmountof Levy
2011$ 577$56397.57%$ 56397.57%
2010 62762399.36% 62399.36%
2009 68868198.98% 68799.85%
2008 54453297.79% 54399.82%
2007 28728699.70% 287100.00%
2006 646297.54% 100.00%64
2005 8 99.96%8 100.00%8
2004 -- -
- -
2003 -- -
- -
2002 -- -
- -
Notes:
he Town does not impose a property tax; levies and collections presented above reflect assessments
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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
OWN OF MARANA
T
Schedule 10
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Business-Type
Governmental Activities Activities
General
SpecialTotalPercentage
FiscalRevenueObligation
AssessmentCapitalLoansPrimaryof Personal
YearBondsBonds*
Bonds**LeasesPayableGovernmentIncome ***Per Capita
201164,970$$8,965$22,492-
$ $ 4,586$ 101,013300.6%$ 2,931
201066,900 8,15523,82833
1,562 100,478311.0% 2,944
200967,975 8,33524,82375
- 101,208313.3% 3,039
200829,225 8,385
- 115 - 37,725151.6% 1,258
200730,460 5,355
- 154 - 35,969134.7% 1,199
200631,835 2,105
- - - 33,940118.2% 1,131
200533,395 2,105
- - - 35,500132.9% 1,328
200432,100 -
- 154 - 32,254129.6% 1,396
200313,780 -
- 199 - 13,97961.3% 685
200215,080 -71.3%863
- 544 - 15,624
Notes:
* Bonds issued for Gladden Farms Facilities District fiscal year 2005, a component unit of the Town. Principal
debt payoff does not begin until fiscal year 2008.
** Bonds issued for Tangerine Farms Road Improvement District FY 2008, a component unit of the Town.
** Individual statistics not available for Marana, included in figures for Pima County and Tucson
Metropolitan area.
Source: US Census Bureau, Bureau of Economic Analysis
OWN OF MARAN
TA
Schedule 11
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Less: Amounts Percentage of
GeneralAvailable in Estimated Actual
ObligationDebt Service Taxable Value of Per
Fiscal Year BondsFundTotal propertyCapita
20118,965$ 473$ 8,492$ 0.21%25.5%
20108,155 963 7,192 0.22%24.0%
20098,335 957 7,378 0.30%24.6%
20088,385 968 7,417 0.38%27.8%
20075,355 622 4,733 0.29%20.5%
20062,105 531 1,574 0.12%7.7%
20052,105 - 2,105 0.19%11.6%
--
2004 -0.00% -
2003--
-0.00% -
2002--
-0.00% -
Notes:
he Town of Marana does not impose a property tax; any property taxes presented in this report are
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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.
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TOWN OF MARAN
A
Schedule 12
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEB
T
S OF JUNE 30, 2011
A
(Amounts expressed in thousands)
Estimated
PercentageEstimated Share of
Debt
ApplicableOverlapping Debt
Outstanding
Governmental Unit
State of ArizonaNone0.58%None
Pima County 3,174,258$ 5.03%159,665$
Pima County Community Collee District47,3105.03% 2,380
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Pima County Flood Control Distric
None5.58%None
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Northwest Fire Distric
41.48%14,75235,565
t
Gladden Farms Community Facilities Distric 100.00%8,9658,965
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Red Hawk Community Facilities District No. 1None100.00%None
Red Hawk Community Facilities District No. 2None100.00%None
Flowin Wells Unified School District No. 100.00%15,73015,730
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Marana Unified School District No.
55.08%20,40237,040
6
own of Marana *None100.00%None
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otal direct and overlappin deb$ 221,894
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Notes:
* Does not include the Municipal Property Corporation municipal facilities revenue bonds outstandin in the
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areate principal amount of $66,900,000. In addition, the above schedule does not inlcude include th
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Tanerine Farms Road Impovement Special Assessment bonds outstandin in the amount of $23,828,000.
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** The estimated percenta
e of debt applicable to the Town is calculated based on the Town's secondary
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assessed valuation as a percentate of the secondary assessed valuation o fthe overlappinurisdiction.
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Sources: The various entities
TOWN OF MARANA
Schedule 16
PRINCIPAL EMPLOYERS
CURRENT YEAR AND FOUR YEARS AGO
20112007
Percentage of Percentage of
Total City Total City
EmploymentEmployment
EmployeesEmployees
Employer
Marana Unified School District1,606 24.0%1,660 24.8%
9.5%6359.5%
Army Reserve/National Guard Training Center 635
Wal-Mart4506.7%4506.7%
Evergreen Air Center, Inc.3515.2%6059.0%
own of Marana3355.0%3304.9%
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Marana Health Center3204.8%
Costco2754.1%2754.1%
Sargent Controls & Aerospace2563.8%2403.6%
Fry's Food & Drug3.6%
240
FLSmidth Krebs2303.4%
arget 3.4%225
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Comcast of Arizona2093.1%
Coca-Cola Bottling1852.8%
Notes:
1) Due to cost considerations for the acumulation of data, the Town has elected to present less than ten year of
data, or data from nine years prior for certain statistical schedules. This information will be accumulated and reported
each year until the complete ten years of data is presented.
OWN OF MARAN
TA
Schedule 19
PRINCIPAL RETAIL AND CONTRACTING SALES TAXPAYERS
CURRENT YEAR AND FIVE YEARS AGO
Fiscal Year 2011Fiscal Year 2007
Percentage of Percentage of
Sales Tax Total Sales Sales Tax Total Sales
PaymentsRankTax PaymentsPaymentsRankTax Payments
RETAIL
axpayerA$1,644,32217.2%$1,784,65415.8%
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axpayerB1,061,49324.7%1,194,20423.9%
T
axpayerC588,02832.6%816,77132.7%
T
axpayerD479,21542.1%265,980100.9%
T
axpayerE474,39452.1%653,76442.1%
T
axpayerF465,14162.1%568,16661.9%
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axpayerG397,26171.8%604,78252.0%
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axpayerH295,66881.3%359,32681.2%
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axpayerI251,51491.1%282,72590.9%
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axpayerJ232,352101.0%
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axpayerK
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axpayerL
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axpayerM522,210101.7%
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$5,889,38826.0%$7,052,58223.1%
CONTRACTING
axpayerA$1,174,64115.2%$-
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axpayerB487,61722.1%776,84542.5%
T
axpayerC392,50831.7%
T
axpayerD390,91741.7%
T
axpayerE352,42051.6%1,998,6752
T
axpayerF217,04761.0%555,25851.8%
T
axpayerG135,97570.6%
T
axpayerH127,17780.6%199,529100.7%
T
axpayerI123,62390.5%
T
axpayerJ117,749100.5%
T
axpayerK2,875,75419.4%
T
axpayerL987,33433.2%
T
axpayerM438,50161.4%
T
axpayerN246,37970.8%
T
axpayerO229,77880.7%
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axpayerP202,64690.7%
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$3,519,67415.5%$8,510,69921.2%
Source: Town of Marana Finance Department, Arizona Department of Revenue
OWN OF MARANA
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Schedule 20
SINGLE FAMILY RESIDENTIAL PERMITS
LAST TEN FISCAL YEARS
Month2002200320042005200620072008200920102011
January 831018113052351133819
February 62997112944832792528
March87105105180134531224638
April7012952203685550114814
May105138136222618118132035
June4799108123756528202322
Jul12299140168925121314432
y
us87123134143995076462831
Au
gt
September7096175149273027271822
October728614113934357142230
November55551197961135121222
December10276136106592851219n/a
Calendar Total 962 1,206 1,3981,771 806 579 287 200 343 293
Fiscal Total 859 1,179 1,0881,8321,218 744 353 199 342 299
Source: Town of Marana Finance Department, Town of Marana Buildin Services
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OWN OF MARANA
T
Schedule 21
CAPITAL ASSET STATISTICS BY FUNCTION
S OF JUNE 30, 2011
A
Fiscal Year
20102011
Function
Public Safety
Police:
Stations1
1
Substations2
2
Police Vehicles113 113
Highways and Streets
Street (miles)300 300
Culture and Recreation
Parks7
7
Parks Acreage314 314
Trails in Miles - Hiking11 11
Trails in Miles - Paved32 32
Swimming Pools1
1
Tennis Courts5
5
Senior Center1
1
Water Systems
Miles of Water Mains70 70
Number of Meters Installed4,755 4,755
Source: This information is provided from the Town's facility records.
Notes:
*Due to cost considerations for the acumulation of data, the Town has elected to present less than
ten year of data for certain statistical chedules. This information will be accumulated and reported
each year until the complete ten years of data is presented.