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HomeMy WebLinkAbout1996 Financial Statement June 30TABLE OF CONTENTS INTRODUCTORY SECTION �g Letter of Transmittal ...................................................................................... I Town of Marana Organizational Chart ......................................................... VIII Townof Marana Officials .............................................................................. IX FINANCIAL SECTION Opinion of the Certified Public Accountant ............................................ '!' '.��� - t•� -��'� ; !_!- Combined Balance Sheet - All Fund Types and Account Groups ............................................................ 1 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types............................................................................. 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types ............................................ 3 Combined Statement of Revenues, Expenses and Changes in Deficit - All Proprietary Fund Types ......... 4 Combined Statement of Cash Flows - All Proprietary Fund Types .................................................................... 5 Notes to Combined Financial Statements ........................ - •�i. �_�' �� � i� ,�� : � _� � . '��'� ..r. �-� General Fund Compazative Balance Sheet ..........................................A-1 Statement of Revenues, Expenditures and Changes in Unreserved Fund Balance - Budget and Actual......A-2 Special Revenue Funds Combining Balance Sheet .............................................B-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................B-2 1992 Community Development Block Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................B-3 1993 Community Development Block Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................B-4 1 3 4 5 6 7 8 30 31 35 37 39 40 TABLE OF CONTENTS ���� � �• �� � _�� ..�� � •.� • � - "��'� .�� _ �-� • -� : i � Special Revenue Funds (Continued) 1994 Community Development Block Grant - Sta.tement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................B-5 1995 Community Development Block C�rant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................B-6 Community Development Block Crrant - Revolving Loan Program - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-7 COPS Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual....B-8 RICO - Sta.tement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-9 Census Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual....B-10 GITEM - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-11 HIDTA - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-12 MANTIS - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ..........B-13 Highway Safety 402 Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .......................................................B-14 LTAF - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-15 Drug and Gang Prevention - Sta.tement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .......................................................B-16 Highway User Revenue - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .......................................................B-17 Enterprise Fund Comparative Balance Sheets .........................................C-1 Statement of Revenues, Expenses and Changes in Deficit - Budget and Actual ........................................C-2 Agency Fund Statement of Changes in Assets and Liabilities............D-1 � 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 TABLE OF CONTENTS Combining� Individ 1 F nd nd Acco �nt rroun St?tements �nd Sched �le (Continued) Ezhil2i� General Fixed Assets Account Group Comparative Schedule of General Fixed Assets by Source .........................................................................E-1 Schedule of General Fixed Assets - By Function and Activity .................................................................E-2 Schedule of Changes in General Fixed Assets - By Function and Activity ............................................E-3 STATISTICAL SECTION (Unaudited) Table General Government Expenditures by Function - Last Ten Fiscal Years ...........................................................I General Revenues by Source - Last Ten Fiscal Yeazs ...........II Assessed and Estimated Value of Taxable Property - Last Ten Fiscal Years ...........................................................III Property T� Rates - Direct and Overlapping Governments - (Per $100 of Assessed Value) - Last Ten Fiscal Years........IV Computation of Legal Debt Margin General Obligation Bonds ...................................................................................V Computa.tion of Direct and Overlapping Debt .......................VI Lease Revenue Bond Coverage - Last Ten Fiscal Yeazs .......VII Demographics ........................................................................VIII Property Va1ue, Construction, and Bank Deposits - Last Ten Fiscal Years ...........................................................IX Miscellaneous Sta.tistical Data.. ..............................................X P.�gg 57 58 59 60 61 62 63 64 65 66 67 68 69 � . � ��, MARANA /I\ � � � , � , LJ January 27, 1997 The Honorable Mayor and Council Town of Marana, Arizona The Comprehensive Annual Financial Report (CAFR) of the Town of Marana for the year ended June 30, 1996 is hereby submitted. The CAFR has been prepared by the Town's Finance Deparhnent in conjunction with the Town's auditors, Clifton Gunderson L.L.C. and special consultant, Mr. Ron Kovar. Responsibility far the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the Town. To the best of our knowledge and belief, the data contained in the CAFR is accurate in all material respects, and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the Town. All disclosures necessary to enable the reader to gain an understanding of the Town's financial activities have been included. The CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductory Section includes this transmittal letter, the Town's organizational chart, and a list of principal Town officials. The Financial section includes the auditor's opinion on the financial statements and schedules, the general purpose financial statements and footnotes, and the combining statements and schedules by fund and account group, which provides additional detailed information. The Statistical Section includes selected financial and demographic information, generally presented on a multi-year basis to demonstrate trends. THE REPORTING ENTITY AND ITS SERVICES Historical Background Incorporated in 1977, the Town of Marana is located along Interstate 10 between Phoenix and Tucson. While retaining its rural appeal and agricultural economic base, Marana is now home to several housing, commercial and industrial developments. Currently, the Town's boundaries encompass approximately seventy square miles with a population base in excess of five thousand. Organization The governmental and administrative affairs of the Town are carried out by a seven-member Town Council. The Mayor is selected by the Council from among its members. The Council is responsible for establishing the policies of the Town, such policies providing guidance to the various Town departments. The Council appoints a Town Manager who is responsible for the general, administrative and overall operations of the Town. ' 13251 N. LON ADAMS ROAD � MARANA, ARIZONA 85653 � PHONE: (520) 682-3401 � FAX: 682-2654 Entity Defined In accordance with standards set forth by the Governmental Accounting Standards Board, the Town of Marana includes in its financial statements all funds, account groups, agencies, boards, commissions, and authorities that are controlled by, or dependent on, the Town Council. The basic criterion for considering an organization to be part of the reporting entity is the exercise of oversight responsibility by the Council. Manifestations of oversight include financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations, and accountability for fiscal matters. This report includes all funds and account groups of the Town. The Town provides a full range of services including police and fire protection, construction and maintenance of streets and roads and other infrastructure, flood control, low income housing, recreational activities and cultural events. In addition to general government activities, the Town Council exercises oversight authority over the Town of Marana Municipal Property Corporation. Therefore, these activities are included in the reporting entity ECONOMIC CONDITION AND OUTLOOK , ' , I ' �J , ' ' Current Condition Economic conditions in the Town of Marana have improved dramatically over the past several years. Sales tax revenues, the Town's primary source of income, have increased over 125% from fiscal 93-94 to fisca195-96. During the same period, the Town's unreserved fund balance has increased from $2.2 million to over $6.6 million. This distinct improvement can be traced to several key factors. ♦ An aggressive, well-planned annexation policy resulted in the Town annexing approximately 1.5 square miles of prime, commercial real estate. The business community in the annexed area generates over 70% of the Town's sales tax revenues. ♦ The home-building industry continues to play a significant role in the Town's economic viability. Fueling the strong construction activity is the abundance of undeveloped land, a strong local and national economy, and a staff dedicated to customer service. The significance of the home-building industry to the Town's economy is evidenced by the fact that three of the ten largest taxpayers in fisca195-96 were home-builders. ♦ The attitude and philosophy of the Town Council creates a pro-business environment that encourages and promotes economic development. This intangible asset has fostered the fiscal prosperity of the Town over the past several years and will continue to play a significant role in the future growth of the Town. ♦ The diversity of the Town's economy further contributes and provides stability to the fiscal condition of the Town. The business community consists of several national and/or regional retailers (K-Mart Corp., Price-Costco, Target Stores) and many local eating establishments, automotive repair and accessories shops, and grocery market stores. This diversity insulates the Town from adverse impacts caused by inflationary or recessionary conditions. ii Future Economic Outlook The Town of Marana is presently 5% developed and is expected to have very rapid commercial, industrial and residential growth in the next ten years. The recent opening of three motels, combined with planned commercial development along Cortaro Road, the imminent improvements to the Cortaro/I-10 interchange and commencement of bank protection improvements along the Santa Cruz River, give credence to the future prosperity of the Town. Further, with the aforementioned bank improvements, the Town's largely undeveloped northwest quadrant is well-positioned to benefit from recent increases in economic activity. Planned commercial and residential development in the Town's northeast quadrant provides additional evidence of continued economic growth. This activity includes a major resort and a residential community that may eventually encompass 10,000 homes. The Town's comprehensive master plan and design standards assure that the growth will be of high quality and fit into the overall plan for the Town. MAJOR INITIATIVES ' , , �! C' , Current Year Projects The Town's 1995-96 budget of $10.7 million represented a 15.7% increase from the previous fiscal year. Major components of the budget included $2.2 million for the construction and maintenance of streets and roads, $210k for maintaining a competitive salary scale for Town employees, $SOOk for the acquisition of land, computers, vehicles and machinery & equipment, most of which were necessitated by the growth of the Town. An additional $800k was budgeted for the acquisition of water entities within the Town limits. The budget also reflected moderate service level increases in police, public works and building services. Future Year Projects The Town is committed to improving and increasing service levels to its residents, planning for the proper and orderly growth of the community and rewarding its most valuable asset, its employees. To that end, the following activities are in process and/or in the planning stages. ♦ A continuation of fire protection service to all residents of the Town, a service that began in the last quarter of the fiscal year; ♦ Implementing a pay for performance plan that rewards employees for meritorious service at competitive salaries; ♦ Implementing a state of the art, automated permitting and geographical information system (GIS) that provides information immediately and hastens the permitting process; ♦ Finalizing the Town's comprehensive general plan that will guide development of the Town well into the next century; ♦ Installing automated police equipment that facilitates and expedites the processing of criminal data; ♦ Construction and maintenance of public streets and roads to accelerate transportation within the Town; ♦ Expanding and improving park facilities to accommodate the public; ♦ Acquiring additional water entities to allow for critical management and control of the Town's growth; ♦ Construction of a municipal complex which allows for the consolidation of services and facilities to better serve its residents; iii � � I All internal control evaluations occur within the above framework. We believe the Town's internal accounting controls adequately safeguards assets and provide reasonable assurance of proper recording of financial transactions. � Management of the Town is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial , statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recogmzes that: (1) the cost of control should not 1 exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. � ' The policy of the Town of Marana provides that the Town Council shall adopt the annual budget prepared by the Town Manager and senior staff. This budget is reviewed by the Town Council and is formally adopted by the passage of a budget resolution. The Town Manager is authorized , to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Town Council. , Revenue and expenditure reports that compare budget versus actual results are produced monthly and are distributed to senior staff and others upon request. , General Fund The General Fund is used to account for expenditures of traditional governmental services as well as financial resources other than those required to be accounted for in other funds. ' ' � I , LJ ' ' General fund revenues totaled $7,865,619 in fiscal 1995-96, an increase of 18% from FY 94-95. General fund increases (decreases) over the last year are shown in the following tabulation: Revenue Source Taxes Other Agencies Licenses, Fees and Permits Fines, Forfeitures and Penalties Interest Income Other Total FINANCIAL INFORMATION Amount $5,832,390 $487,320 $1,088,258 $108,129 $277,750 $71,772 $7,865,619 Percent of Total 74.15% 6.20% 13.84% 137% 3.53% 0.91% 100.00% Increase (Decrease) from 1995 $512,157 $87,718 $455,811 $12,515 $116,994 $18,244 $1,203,439 Percent Increase (Decrease) from 1995 9.63% 21.95% 72.07% 13.09% 72.78% 34.08% The increase in tax revenues was the result of a strong home-building industry and the opening of several new business establishments (Denny's, Michael's, etc.). Other agencies revenue grew primarily because of increases in state shared revenues. iv Income from licenses, fees and permits increased substantially due to the rapid growth mode of the Town and the accompanying building and development activity. Fines, forfeitures and penalties also increased to the growth mode of the Town as well as improved collection efforts. The increase in interest income reflects a continuing accumulation of surplus reserves combined with sound cash management. The growth in other revenues is attributed to the receipt of non-recurring income generated from prior period activity. General Fund expenditures for general government purposes totaled $5,637,631 in fiscal 1995- 96, an increase of 18% from FY 94-95. Increase (decrease) in levels of expenditures for major functions of the Town over the preceding year are shown in the following tabulation: � Function ' General government Development and planning services Town attorney ' Police Fire Amount $786,595 $484,862 $235,238 $1,791,490 $109,231 $213,493 $0 $1,881,501 $135,221 $5,637,631 Percent of Total 13.95% 8.60% 4.17% 31.78% 1.94% 3.79% 0.00% 33.37% 2.40% 100.00% I ncrease (Decrease) from 1995 $73,875 $94,693 -$69,740 $146,871 $109,231 $52,952 -$7,270 $441, 013 $20,046 $861,671 Percent Increase (Decrease) from 1995 10.37% 24.27% -22.87% 8.93% 100.00% 32.98% 100.00% 30.62% 17.40% Magistrate court ' Community development Public works Parks and recreation Total , � ' I ' � ' In general, the increase in expenditures is attributable to the growth mode of the Town, which is fueled by the strong commercial and residential activity. Hence, to respond to the growth, and to the public demand for effective and efficient service, the majority of expenditure growth relates to personnel costs and related furniture, fixtures and equipment. Construction and maintenance of major streets and roads in the public works deparhnent also contributed to the increased expenditure level. The reduction in Town expenditures can be traced to reduced litigation. FINANCIAL MANAGEMENT Debt Administration At June 30, 1996, the Town of Marana Municipal Property Corporation had two revenue bond issues outstanding. The issues are from May, 1990 and June, 1992. At the end of FY 95-96, the outstanding bond indebtedness totaled $575,000, of which $270,000 is attributable to the 1990 Series Bonds and $305,000 is attributable to the 1992 Series Bonds. � I The proceeds of the 1990 Series Bond issue was for the purchase of a water company. The proceeds of the 1992 Series Bond issue was for the purchase of a town hall complex. Through the years, the Town has entered into numerous capital lease agreements allowing the Town to acquire assets without a major, immediate impact on fund balances. During fisca195- 96, several leases were terminated. In the future, the Town will carefully evaluate the options available when acquiring assets, and will choose the option which provides the most long-term benefit to the Town. Cash Management The Town of Marana uses a system of consolidated cash management where cash from all funds is pooled. Cash to be used for the payment of current expenditures is kept in a money market savings account. Excess and idle cash is kept on deposit with the State of Arizona Treasurer's Local Government Investment Pool (LGIP). Cash in the LGIP is available upon 24 hour notice and earns a return comparable to U.S. government securities. Interest earned on cash and investments from all funds totaled $277,750 in FY 95-96, net of bank analysis fees and investment expenses. Risk Management � The Town of Marana participates in the Arizona Municipal Risk Retention Pool. Under the Town's general insurance liability, the Town is required to pay the first $10,000 per loss per claim or judgment, with the Pool covering the balance up to $2,000,000. The Town also j maintains an excess umbrella coverage of $3,000,000. The Town's total general liability insurance is thus $5,000,000. �� � The State Compensation Fund is the Town's insurance carrier for worker's compensation. Various risk control techniques, including employee accident prevention training, are utilized to control the Town's risk exposure. Fiduciarv Operations � The Town operates an Agency Fund to account for assets held as an agent for individuals. The Deferred Compensation Fund is the Agency Fund. The Deferred Compensation Fund accounts for voluntary contributions made by Town employees. Contributions from the fund are invested � in various fixed income and equity funds that are administered by the ICMA Retirement Corporation through a contract with the Town. OT�IER INFORMATION ' � � � Independent Audit The State of Arizona requires a bi-annual audit of the books of account, financial records and transactions of all departments of the Town by independent auditors. The Town has elected to have its audit conducted on an annual basis. The firm of Clifton Gunderson L.L.C. has been retained to perform the June 30, 1996 audit. The auditor's report is included in the Financial Section of the report. � vi , r Acknowledgments The preparation of the CAFR was made possible by dedication of the entire staff of the Finance . � Department and the Town's special consultant, Mr. Ron Kovar, CPA. Our sincere appreciation is extended to all members of the Finance Department and to Mr. Ron Kovar. ' We also extend our appreciation to the Mayor and Council for their interest and support in planning and conducting the financial operation of the Town in a responsible and progressive manner. � Res t submitted, � �� • � Hurvie E. Davis , Town Manager �� ��� ' Roy Cuaron Finance Director � ' � �� � � I � �J I � I � vii �J � � � � � � � o �� a � �v ' � o ° � 1 � � � � , ' viii �'.. - �ARANA ���� TOWN OF MAItANA TOWN COUNCIL Eddie Honea, Mayor Thomas Clark Ora Mae Harn Sharon Price, Vice Mayor Bobby Sutton, Jr. SE1vIOR STAFF Hurvie E. Davis Town Manager Dave Atler Town Engineer Roy Cuaron Finance Director Jane Johnson Human Resource Director Russell Dillow Town Magistrate Daniel J. Hochuli Town Attorney "Come Grow With Us" �X Herbert Kai Sherry Millner Dave Smith Police Chief Jerry Flannery Planning & Zoning Director Doug Maples Chief Building Official Sandra Groseclose Town Clerk Brad DeSpain Utilities Director , Clifton � Gunder�n z.z.c. Certified Public Accountants & Consultants ' ' Honorable Mayor and Town Council Town of Marana Marana, Arizona Independent Auditor's Report We have audited the accompanying general purpose financial statements of the Town of Marana Arizona as of and for the year ended June 30, 1996. These general purpose financial statements are the responsibility of the Town's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Stcrndards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, Audits of State and Local Governments. Those Standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general puipose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Town of Marana, Arizona as of June 30, 1996, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements � taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of The Town of Marana, Arizona. Such � information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is presented fairly m all material respects, in relation to the general purpose financial statements taken as a whole. � � .J ' ' The information included in the introductory and statistical sections is presented for purposes of additional analysis and is not a required part of the general purpose financial statements of The Town of Marana, Arizona. Such additional information has not been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, accordingly, we express no opinion on such information. Members Of INTHRNATIONAL � . ` AMERICAN INSTITUlE � � OF CERTIRED PUBLIC ARIZONA COLORADO ILIINOIS INDIANA IOWA MARYLAND MISSOURI OHIO TEXAS VIRGINIA WISCONSIN ��M'� � Honorable Mayor and Town Council ' Town of Marana In accordance with Government Auditing Standards, we have also issued a report dated Janua.ry 8, , 1997, on our consideration of the Town of Marana, Arizona's internal control structure and a report dated January 8, 1997, on its compliance with laws and regulations. , �� � C �.L.C. ' Tucson, Arizona January 8, 1997 � ' ' ' , , 2 GENE�;AL PURPOSE FINANCIAL S TATEMENT S � � � � R = � � W d�Z� � m U � I � � O Z ' ' �m p0� ~�� O LL � � �, rn � N � � , � Q � H � � N � � I ca J Q � F N � 7 O C7 c � o_m u w a�� � � � m � .� F m v �° � tL a ag � C � au �� � m a� u� Q m � c H ffi� � c 7 � � LL m C7 oco�n �c��noa oa rn � v�l a� � N(�O O�V Oa0 n0 N 01 O a N Ol' , V_' 7 et i[f N Ol f� O � 00 � rn ��N10 ac'f O�! N a M N �O I H �ON a�DT �� ma�D ^ � n N� �C�DN n� ��pn �1�7 � m O d' N � N I� Ol � N � I � w t+„ j � n c�i � ri M I I I I 1 I 1 1 1 n I n � � � � � � � � � � � � � � g g N N � v a N N IIN IIII II I I i N � $ �� � � I t 1 I� I I � N I I a � � � s � � � [�7 l7 V ^ V� � 1 I I � I a I I I I N � �� ade�53� Na M �� vc�'�ao ^ o N I �j � I I I � �o r � � �c m� �� k m ��• � � � � � V � m� ����i. � c�a a�n.o�c m !9� m a� � ��v�� �j c 3_ x . m� 8 � ro�� � m m & " ��' m �� y�� �«o�Eaas � w Y� Q m ��� m b �� 0 � � rt• m � �� � `� axv U ��¢ a`o¢ c � � iL � H ������ N0�01 �O�l Ol � v N �- � N f� � n ° N M � a�� 1� N N O� G 1 H c� � n n I I 1 n I n H �����i � H N N IINII N N � � O � �m � � � �� � � � � � I I I N � �� � � � � 1 I � �j w w ffi a � E • y m � C a �° c � o U � W �p m �r c � � � 'O V �+ m N Z T'�' � 'O m � < affi� E � � � � ��s�� o � V 7 7 � � ~ � � �0��0 ����rl �! �' NmfO �n ! �. v N V �O (O � c9 N C9 O! ? � f��O� 7 N � n � r. oi. � � �o N N N m �1 � O c� r� I i I I I I n � o � I I� I I v v N N N C � N a I I I I I I N ,� � � � � n N 0 � � I� b N V « N� i i i °�° � � c � m �� o � f7 N �D a I I i � N �� � � M I I I � � � N ru �o n � � y W � �� Z 'O W 0 � w � ° O m�� � � ��� � o a 'a a W C' mm� m � a � � � 3 � a � � � � �.� ffi � � W � o � � � � � O � > • C � Z pp �2� � 7� O TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES - EXHIBIT 2 Year Ended June 30, 1996 General REVENUES Taxes Other agencies Licenses, fees and permits Fnes, forfeitures and penalties Interest Other Totalrevenues EXPENDITURES Current operations General government Development and planning services Town attorney Police Fre Magistrate court Public works Community development Pazks and recreation Total expenditures $ 5,832,390 487,320 1,088,258 108,129 2n,�so ��,n2 7,865,619 786,595 484,862 235,238 1,791,490 109,231 213,493 1,881,501 135,221 5,637,631 Excess ofrevenues over expenditures FUND BALANCES, BEGINNING Residual equity transfers out FUND BALANCES, ENDING 2,227,988 4,433,410 (73,312) $ 6,588,086 Special Revenue $ - 692,194 2,996 400 695,590 Totais (Memorandum Only) 1996 1995 $ 5,832,390 $ 5,320,233 1,179.514 1,082,645 1,088,258 632,447 108,129 95,614 280,746 164,284 72,172 54,454 8,561,209 7,349,677 26,949 813,544 736,680 5,941 490,803 390,169 - 235,238 304,978 207, 225 1,998,715 1,784,693 - 109,231 - - 213,493 160,541 252,158 2,133,659 1,725,218 97,249 97,249 176,707 86,476 221,697 189,518 675,998 6,313,629 5,468,504 19,592 2, 247,580 1,881,173 66,073 4,499,483 2,701,971 (69,609) (142,921) (83,661) $ 16,056 $ fi,604,142 $ 4,499,483 See notes to combined financial statements. 4 ' , TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUNO BALANCES - BUDGET AND ACTUAL ALL GOVERNMENTAL FUND TYPES - EXHIBIT 9 Year Ended June S0, 1996 ' ' , , REVENUES Taxes Other agencies Licenses, fees and permits Fnes, forfeitures and penalties Interest Miscellaneous Total revenues General Special Revenue Actual Budget (a) Variance Actual Budget (a) Variance $ 5,832,390 $ 5,545,842 $ 288,548 487,320 396,143 91,177 1,088,258 517,500 570,758 108,129 110,000 (1,871) 277, 750 135, 000 142, 750 �i,��2 2,oss,aao (�,9aa,ssa) 7,885,619 8,760,925 (895,306) s - $ - a - 692,194 989,240 (297,046) 2.996 - 2,996 400 - 400 695,590 989,240 (293,650) ' EXPENDITURES Current operations General govemmeM , Development and planning services Town attomey Police Fire Magistrate court , Public works Communily development Parks and recreation Total expendRures Excess ofrevenues over expenditures FUND BALANCES, BEGINNING Residual equity transfers out FUND BALANCES, ENDING 788,595 2,004,789 (1,218,194) 484,862 606,392 (121,530) 235,238 319,000 (83,762) 1,791,490 1,589,368 202,122 109,231 - 109,231 2�a,aa3 2�o.a�a ��,s2�� 1,881,501 3,732,088 (1,850,587) 135, 221 119, 201 16, 020 s,��,�� a,eai,2s2 (s.00s,e2�) 2,227,988 119,673 2,108.315 4,433,4t0 - 4,433,410 (73,312) - (73,312) $ 6.588.088 S 119,873 S 6.468.413 26,949 353,320 (326,371) 5,941 - 5,941 zo�,22s 2�2,�as (s,s2o� 252,158 284,025 (31,86� 97,249 - 97,249 86,476 139,150 (52,674) 675,998 989,240 (313,242) 19,592 - 19,592 66,073 - 86,073 (69,609) - (69,609) $ 16,056 $ $ 16,056 (a) The Town's budget included an additional �47,000 tor revenues and $1,066,673 for expenditures for water enterprise activities that are not included in this statement because these activities are proprietary in nature. See notes to combined financial statements. 5 TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN DEFICIT - ALL PROPRIETARY FUND TYPES - EXHIBIT 4 Year Ended June 30, 1996 OPERATING REVENUES Current use charges Other Totai operating revenues OPERATING EXPENSES Material, supplies, and other expenses Depreciation expense Total operating expenses OPERATING INCOME NONOPERATING REVENUES (EXPENSES) Interest income Bond interest expense Bond fees Total nonoperating revenues (expenses) NET LOSS DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING Proprietary Totals Fund Types (Memorandum Only) Water 1996 1995 $ 81,479 $ 81,479 $ 71,440 3,951 3,951 4,109 85,430 85,430 75,549 66,943 16,659 83,602 1,828 66,943 57,833 16,659 12,853 83,602 70,686 1,828 4,863 752 752 501 (22,103) (22,103) (22,858) (1,679) (1,679) (1,777) (23,030) (23,030) (24,134) (21,202) (21,202) (19,271) (67,310) (67,310) (48,039) (88,512) (88,512) (67,310) 129, 852 142,921 272,773 $ 184,261 129,852 46,191 142,921 83,661 272,773 129,852 $ 184,261 $ 62,542 See notes to combined financial statements. 6 TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES - EXHIBIT 5 Year Ended June 30, 1996 CASH FLOWS FROM OPERATING ACTIVITIES Net loss Adjustments to reconcile net loss to net cash provided by operating activities: Nonop�ating expenses associated with trustee/fiscal agents Depreciation Changes in operating assets and liabilities: (Increase) decrease in accounts receivable increase (decrease) in accounts payable and accrued expenses Net cash provided by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proprietary Totals Fund Types (Memorandum Only) Water 1996 1995 $ (2i,2o2� � (2�.202) $ (is,2�1� 23,581 23,581 24,254 16,659 16,659 12,853 (2,55� 238 16,719 (2,55� 368 238 (1,49� 16,719 16,707 Increase in due to other funds 16,953 16,953 - Residual equity transfers from general fund 73,312 73,312 83,661 Residual equity transfers from special revenue funds 69,609 69.609 - Purchase of fixed assets (142,921) (142,921) (74,515) Payments to trustee/flscal agents for debt service (33,688) (33,688) (34,42� Net cash used in capital and related financing activities (16,735) (16,73� (25,279) NET DECREASE IN CASH (16) (16) (8,572) CASH, BEGINNING OF YEAR 16 16 8,588 CASH, END DF YEAR (a) $ - $ - $ 16 Cash $ - $ - $ 16 Cash with trustee�scal agents 1,065 1,065 810 Total $ 1,065 $ 1.065 $ 826 (a) Cash on the balance sheet consists of cash the Town can access and cash on deposit with trustee/fiscal agents. Cash flows from cash with trustee/fiscal agents are not presented above because these activities represent noncash transactions. CASH FLOWS WITH TRUSTEE/FISCAL AGENTS FROM INVESTING AND OTHER ACTIVITIES Payments from water fund for debt service $ 33,688 $ 33,688 $ 34,425 Interest income 578 578 381 (Increase) decrease in investments 148 148 (10,045� Net cash with trustee/fiscal agents provided by investing and other activities 34,414 34,414 24,761 CASH FLOWS WITH TRUSTEE/FISCAL AGENTS FROM CAPITAL AND RELATED FINANCING AND OTHER ACTIVITIES Interest and other obiigations paid (24,159) (24,159) (24,635) Redemption of bonds payable (10,000) (10,000) - Net cash with Vustee/�scal agents used in financing and other activities (34,159) {34,159) (24,635) NET INCREASE IN CASH WITH TRUSTEE/FISCAL AGENTS 255 255 126 CASH WITH TRUSTEE/FISCAL AGENTS, BEGINNING OF YEAR 810 810 684 CASH WITH TRUSTEE/FISCAL AGENTS, END OF YEAR $ 1,065 $ 1,065 $ 810 See notes to combined financial statements. 7 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 1- SUNiMARY OF SIGNIFICANT ACCOUNTING POLICIES: A. General Statement The Town of Marana (the Town) was incorporated on March 21, 1977, under the provisians 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, legal, public safety (police and fire), public works, and parks services. The accounting policies of the Town conform to generally accepted accounting principles (GAAP) as applicable to governments. The Governmenta.l Accounting Standards Board (GASB) is the accepted standard-setting body for esta.blishing accounting and financial reporting principles. The more significant accounting policies of the Town are described below. I: .�:� __.•�ir��� � � The Town's combined fmancial statements include the accounts of all Town operations. The criteria for ineluding organizations as component units within the Town's reporting entity, as set forth in Section 2100 of GASB's C'odification of Government?1 Acco�ntin� �nd Fina_ncial R�porting_St?nd�rds, include whether: • the organization is legally separate (can sue and be sued in their own name) • the Town holds the corporate powers of the organization • the Town appoints a voting majority of the organization's board • the Town is able to impose its will on the organization • the organization has the potential to impose a financial benefit/burden on the Town • there is fiscal dependency by the organization on the Town Based on the aforementioned criteria, the following component unit is considered within the Town's reporting entity: Town of Marana Munici�al Pro�� Corooration The Town of Marana Municipal Property Corporation governing board is appointed by the Town council. The Town's general fund and water fund pay rent to the Municipal Property Corporation in order to fund the debt incurred to finance the purchase of the Town hall and fixed assets used by the water fund. The legal liability for the Municipal Property Corporation's debt remains with the Town. The financial activity of the Corporation is presented as a blended component unit in the accompanying financial statements. 8 ' TOWN OF MARANA, ARIZONA � NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 � ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): C. Basis of Presentation , The accounts of the Town are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted far with a separate set of self-balancing accounts that comprise its assets, ' liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be , spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into generic fund types and broad fund categories as follows: Governmental Fund Tv�es General fund - This fund is the general operating fund of the Town. It is used to . account for all financial resources, except those required to be accounted for in another fund. Special revenue funds - These funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt service fund - Although such a fund is normally used to account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs; the Town has not yet established such a fund. Debt service activity and reserves are recorded in the general fund as they are believed to be immaterial. Pro rie Fund Ty_pes These funds account for operations that are organized to be self-supporting through user charges. The fund included in this category is the enterprise/water fund as noted below: Enterprise/water fund - This fund is used to account for water utility operations that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the costs (expenses, including depreciation) of providing water services to the general public on a continuing basis be financed or recovered primarily through user charges. Fiduciarv Fund TXpes These funds account for assets held by the Town as a trustee or agent for individuals, private organizations, and other units of governments. The agency fund is custodial in nature (assets equal liabilities) and does not involve the measurement of results af operations. The only fund in this category is as follows: Agency fund - This fund is used to account for a deferred compensation plan offered by the Town to its employees. � ' TOWN OF MARANA, ARIZONA � NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): C. Basis of Presentation (Continued) � � ._� � • Account groups are used to establish accounting control and accountability for the Town's general fixed assets and general long-term debt obligations. The two account groups are not "funds". They aze concerned only with the measurement of financial position. They are not involved with measurement of results of operations. The following are the two account groups: General fixed assets account group - This account group is established to account for all fixed assets of the Town, other than those assets accounted for in the proprietary fund. Capital outlays in funds other than the proprietary fund are recorded as expenditures of those funds at the time of purchase and are subsequently recorded for control purposes in the general fixed assets account group. General long-term debt account group - This account group is established to account for all the Town's long-term debt and governmental fund compensated absences that will be financed from general governmental resources. Long-term liabilities of the proprietary fund is accounted for in that fund. ��� i /:� i� �.i i� Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The Governmental Fund Types (General and Special revenue) use a current financial ' resources measurement focus and are accounted for using the modified accrual basis of accounting. T'he Agency Fund also uses the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to , accrual; i.e., when they become both measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, ' which for the Town is considered to be 60 days after year end. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which are recorded as fund liabilities , when due , and accrued vacation which is recorded when payable from current available financial resources ' ' lo �'' , ' NOTE 1 - (Continued): ' ' ' I , TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1996 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. Measurement FocusBasis of Accountin� (Continued) Grant revenues are susceptible to accrual if they are earned as expenditures occur. T�es collected (which include state shared sales taxes, Town sales tax, and county shared auto lieu taxes) and held by the both the State of Arizona and Pima County, Arizona at year end on behalf of the Town are also recognized as revenue. All other Governmental Fund Type revenues are recognized when received. The Proprietary Fund Type is accounted for on an economic resources measurement focus using the accrual basis of accounting. Revenues are recorded when earned, including unbilled water services which are accrued. Expenses are recorded at the time liabilities are incurred. E. Budget� Control 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 Sta.te 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 December 17, 1992, 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, 1994. This limitation provides for the Town to allow the Mayor and Council to adopt an annual expenditure limita.tion each year with no expenditures held to be excludable. Therefore, the annual expenditure limitation equals the adopted budget. The Town establishes its fiscal year as the twelve-month period beginning July 1. The departments submit to the Town manager a budget of estimated expenditures for the ensuing fiscal year. The Town manager and each department head meet to discuss mutually acceptable changes for the estimated expenditures for that department after which the Town manager subsequently submits a budget of estimated expenditures and revenues to the Town Council. Upon receipt of the budget estimates, the Town Council will hold a public meeting to obtain ta�cpayer 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. ' 11 ' TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): , ' � � � ' E. Budget� Control (Continued) The Town manager is authorized to transfer budgeted amounts between any departments or any funds; however, any revisions that reallocate budgeted amounts from the budget line items labeled "contingency" must be approved by the Town Council. Budgeted amounts are as originally adopted and all appropriations lapse at year end. All budgets are adopted on a basis consistent with generally accepted accounting principles except the enterprise/water fund, for which depreciation is not budgeted and the acquisition of capital assets is budgeted as an expenditure and bond proceeds are budgeted as revenue. However, due to the expected completion of grants in the prior fiscal year and the timing of grant applications and grant awards, no appropriated budgets were adopted for the following special revenue funds: 1992 Community Development Block Grant, 1993 Community Development Block Grant, Community Development Block Grant - Revolving Loan Program, Census Grant, and Drug and Gang Prevention. F. Encumbrances Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an extension of formal budgetary integration in the general fund and special revenue funds. C' C�:��t•� �J No reservations of fund balances have been established by the Mayor and Council at the end of fiscal 1996, except amounts reserved for restricted assets. H. Bond Issuance Costs � I , I ' For the enterprise/water fund, bond issuance costs are capitalized in the period in which the bonds are issued and aze amortized on a straight line basis over 20 years. For all other funds, bond issuance costs are recognized as expenditures in the period in whieh the bonds are issued. 12 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): I. Investments All investments, with the exception of those held by the Agency Fund, are stated at cost. Investments in the Agency Fund are stated at market value. ., . �� : The trust indentures executed for all of the bond series issued require all cash and investments for each bond series to be held on deposit by the trustee/fiscal agents. These assets aze restricted for payment of interest and trustee fees associated with the bond issues, retirement of principal balances, and purchasing the Town Hall, the Honea Water Company, and improvements to water fund fixed assets. In addition, the State of Arizona required that assets obtained at the completion of criminal proceedings by the Town's police department be given to Pima County for custodial purposes. These assets are restricted for expenditures that will enhance the Town's ability to conduct police investigations. K. Prepaid Exuenditures Prepaid expenditures aze for payments made by the Town in the current year for liability insurance coverages extending into the subsequent year. � ' M _ I � � � , � : i � � , � • During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" and "due to other funds" on the combined balance sheet. !�-' -•_!_!� • The Town uses the purchase method of expending inventories. There were no significant inventories on hand at June 30, 1996. 13 � TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1996 NOTE 1 - (Continued): N. Fixed Assets SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES '�' '� _� . •..� • � Fixed assets used in Governmental Fund Type operations (general fixed assets), including those purchased with Federal grant monies, are accounted for in the General Fixed Assets Account Group, rather than in Governmental Funds. Public domain ("infrastructure") general fixed assets, such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems, are not capitalized along with other general fixed assets for reporting purposes. Donated fixed assets are valued at estimated fair value on the date donated. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. No depreciation has been provided on any of the remaining assets. Interest has also been capitalized on fixed assets in the Governmental Fund Type operations. ' �.�- •,► _�� �- Property, plant, and equipment owned by the enterprise/water fund is recorded at cost. Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. Depreciation is provided over the estimated useful lives of such assets using the straight- line method. These estimated useful lives are as follows: ' Pump stations, distribution systems, ' equipment and improvements Organization costs ' ' �J � 1 . � • � • 1 � . � � � � Estimated Useful L.ives �Yearsl 20 40 The amount capitalized under capital leases is the lesser of the present value of the minimum lease payments or the fair value of the leased properties at the beginning of the respective lease terms. When a governmental fund acquires a fixed asset through a capital lease agreement, the acquisition is reflected as an expenditure and other financing source, and simultaneously the acquired asset and related liability are recorded in the General Fixed Assets Account Group and in the General Long-Term Debt Account Group. , 14 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): P. Compensated Absences In the general long-term debt group of accounts, essentially the entire accumulated liability for compensated absences is reflected, since the liability at June 30, 1996, will most likely not be paid within the current accounting cycle. Rather, in fiscal 1997 the Town will probably pay that year's accrual without utilizing amounts accrued from prior years. 1 i� i,i�• .�� .i �i :•�."� �� Transactions that would be treated as revenue, expenditures, or expenses if they involved organizations external to the governmental unit are accounted for as revenue, expenditures, ar expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from that fund which are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. Nonrecurring or non-routine transfers of equity between funds are treated as residual equity transfers and are reported as additions to or deductions from the fund balance of governmental funds. Residual equity transfers to the proprietary fund are treated as contributed capital. I' ����. 1, Comparative total data for the prior yeaz is presented in the financial statements in order to provide an understanding of changes in the Town's financial position and operations. However, presentation of prior year totals by fund type have not been presented in the statements, since their inclusion would make the statements unduly complex and di�cult to read. Tota.l columns on the combined financial statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data. in these columns do not present financial position, results of operations, or changes in cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain comparative data have been reclassified to present such amounts in a manner consistent with the current year's presentation. 15 , TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 ' ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): � •� �r•r� ' 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 aze recorded on these financial statements. , ' ' � , ' � , ' ' NOTE 2- DEPOSITS AND INVESTMENTS A. Deposits Cash on the combined balance sheet consist of amounts held in petty cash funds, change funds, and bank demand accounts. Cash held in uninsured and uncollateralized petty cash and change funds totaled $775 at June 30, 1996. At year end, the book value of the Town's bank demand accounts was $16,339 and the bank balance was $182,340. T'he difference of $166,001 represents deposits in transit and outstanding checks at June 30, 1996. This total bank balance was covered by federal depository insurance or collateral held by the Town's custodial bank in the Town's name. Restricted assets: cash is collateralized by the trustees holding those balances. At year end, the book value of these balances, which was the same as the bank balances, totaled $14,676. B. Investments Statutes authorize the Town to invest public monies in certificates of deposit, interest bearing savings accounts, and repurchase agreements provided eligible depositories meet interest rate, capital structure, and collateral requirements. Other authorized investments include obligations of the U.S. Government and its agencies, of Arizona utility and municipal improvement districts, and the Arizona State Treasurer's Loca1 Government Investment Pool. The Town's investments as of June 30, 1996 are: State Treasurer's Local Government Investment Pool Money Market Funds Investment in Deferred Compensation Plan Total Investments Carrying Amount $6,288,089 38,869 26 $6,�53 � 192 Market Value $6,288,089 38,869 26�234 $6�353,192 , 16 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 2- DEPOSITS AND INVESTMENTS (Continued) B. Investments (Continued) Amounts invested in the State Treasurer's Local Government Investment Pool and Money Market Funds are recorded at cost which is also the fair market value. Government Pool investments, money market funds, and investments in deferred compensation mutual funds are not categorized, in accordance with GASB No. 3, because they are not evidenced by securities that exist in physical or book entry form. A reconciliation of E�ibit 1 to Note 2 is as follows: Exhibit 1 Investments Deposits with fiscal agents Restricted assets: Investments Total $6,288,089 26,234 38�869 �6,353,�92 NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION The following is a summary of the changes in general fixed assets for fiscal 1996: Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Leasehold improvements Balance �y 1,1995 Additions $ 73,310 $ - 308,183 14,075 759,579 - 671,099 239,700 150,000 39,656 19Q,377 - �Z�•��� Balance June 30� 1996 $ 73,310 322,258 722,701 Total $ - (36,878) (11,060) �2,161,548 $293,431 � � (47,9381 899,739 189,656 199,�77 �2�407,941 17 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 3- FIXED ASSETS, NET .OF ACCUMULATED DEPRECIATION (Continued) A summary of water fund property, plant, and equipment at June 30, 1996 is as follows: Land Water rights Improvements, including wells and tanks Bond issuance costs Organization costs Construction work - in - progress Total Less accumulated depreciation and amortization Fized assets, net NOTE 4 - INTERFUND TRANSACTIONS • .. ii�_i � _• i ��i � i• i� , ,• � ��� : • , i �: The amount due to the General Fund is due from: Special Revenue: 1992 Community Development Block Grant 1993 Community Development Block Crrant 1994 Community Development Block Grant 1995 Community Development Block Grant COPS Grant GITEM HIDTA VI MANTIS Census Grant Enterprise: Water Total The amount due to Special Revenue Funds is as follows: The amount due to RICO is due from the General Fund The amount due to Highway User Revenue is due from the General Fund $ 9,720 50,000 338,468 27,268 47,523 105,� 87 578,266 (79,52g) $49g,73g $ 6,826 1,552 1,618 59,006 5,611 5,480 22,421 5,886 2,688 .• � �, . 0 � �. 18 ' ' , ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 4 - INTERFUND TRANSACTIONS (Continued) : C • � _ : � _ � : � • I'1[11�[�# The amount transferred to the Enterprise/Water Fund was transferred from: ' General Fund $ 73,312 Special Revenue Funds: 1994 Community Development Block Grant 22,000 ' 1995 Community Development Block Grant �42 Total $142,921 ' ' ' ' ' ' ' �J I ' I ' ' NOTE 5 - CAPITAL LEASES The Town has previously entered into several long-term capital leases involving the acquisition of equipment for General Town purposes; these commitments are expected to be funded by the Town's General and Special Revenue Funds. Below is a schedule by years of future minimum lease payments under the capital leases as of June 30, 1996: Fiscal Year Ending June 30. 1997 1998 1999 2000 Tota1 minimum lease payments Less amount representing interest Present value of net minimum lease payments NOTE 6- LONG - TERM DEBT General Long- Term Debt $199,645 110,722 56,892 23.75$. 391,027 �34,43g) $356,089 During 1990, the water fund issued revenue bonds through the Town of Marana Municipal Property Corporation for the purpose of purchasing the Honea Water Company and making improvements to the assets purchased. These 1990 bonds, secured by all general fund revenues, consist of a series of issues with fixed interest rates ranging from 7.55% to 8.30%, depending upon the maturity dates of the various issues. Periodic principal payments aze due July 1, 1996, through July 1, 2009, in amounts ranging from $10,000 to $30,000 annually. The 1990 series revenue bonds are callable on or after July l, 1999, at 100% of the principaL 19 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 6- LONG - TERM DEBT (Continued) The following is a schedule by years of the debt service requirements for these revenue bonds as of June 30, 1996: Fiscal Year Ending June 30. 1997 1998 1999 2000 2001 Thereafter Total minimum lease payments Less amount representing interest $310,000 92,3'79 535�806 1990 Series Bonds $ 32,103 31,338 35,563 34,385 33,173 �,9g,702 465,264 (195�64) Principal $270,000 The following is a summary of changes in general long-term debt activity for fiscal 1996: Balances at July 1, 1995 ti Revenue Bonds (A) °� Compensated absences (B) Capital leases Total A. Revenue Bonds �° ��� �� $ - 19,835 �938,185 �19,835 The 1992 Series Revenue Bonds are callable as follows: Redem�tion Dates 7-1-2001 and 1-1-2002 7-1-2002 and 1-1-2003 7-1-2003 and thereafter � Balances June 30, $eductions 1996 $ (5,000) $305,000 - 112,214 �179,Z17) 356,Q89 �(184 , 773,303 Redemption Price (As a Percent of Princinall 101.0% 100.5 100.0 � TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 6- LONG - TERM DEBT (Continued) A. Revenue Bonds (Continued) Annual debt service requirements to maturity for these revenue bonds are as follows: Fiscal Year Ending June 30. 1997 1998 1999 2000 2001 Thereafter Total minimum lease payments Less amount representing interest CI �� ' � �J Principal B. Comnensated Absences 1992 Series Bonds $ 28,890 28,565 28,227 27,877 27,520 528,176 669,255 ��64�255) ',c� ��� This consists of the long-term portion of accrued vacation and compensatory time, with an increase of $19,835 for fiscal 1996. NOTE 7- DEFERRED COMPENSATION PLAN The Town offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Town employees, permits them to defer a portion of their salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until. termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributa.ble to those amounts, property, or rights are (until paid or made available to the employee or beneficiary) solely the property and rights of the Town, subject only to the claims of the Town's general creditors. Participants' rights under the plan are equa.l to those of general creditors of the Town in an amount equal to the fair market value of the deferred account for each participant. The Town believes that it is unlikely that it will use the assets to satisfy the claims of general creditors in the future. 21 ' ' i ' ' � TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1996 NOTE 8- EMPLOYEE RETIREMENT SYSTEMS ' . _ . i t : ' . ! _ � ' � _C ' ' � � ' � ' t i All of the Town's full-time police officers are covered by the Marana Marshal's Arizona Public Safety Personnel Retirement System, which is an agent /multiple-employer, defined benefit public employee retirement system (PERS). The pension plan provides pension benefits, deferred allowances, death and disability benefits and limited health insurance benefits. A member is eligible if he is employed in a covered position prior to attaining age 50 years, for at least 20 hours a week for more than 6 months a year. A member may retire after reaching the age of 62 and completion of 15 yeazs service, or completion of 20 years service with the Town. Benefits vest after 10 years of credited service. Police officers who retire with 25 or more yeazs of credited service are entitled to monthly pension payments for the remainder of their lives equal to 50% of average monthly compensation for the first 20 years of credited service with the Town, plus 2/2% of average monthly compensation for each year of credited service above 20 years with the Town. Police officers who retire with 20 years of credited service with the Town, plus 2% of average monthly compensation for each year of credited service between 20 and 25 years with the Town. Police officers who retire with less than 20 years of credited service with the Town are entitled to monthly pension payments for the remainder of their lives equal to at least 30% of the average monthly compensation for the entire service period increased at a rate of 4% a yeaz for each service year above the minimum 15 yeazs of service. The maximum monthly pension payment cannot exceed 80% of the average monthly compensation. Pension provisions include deferred allowances whereby a police officer may terminate his employment with the Town after accumulating 10 or more years credited service. Pension benefits are then equal to twice the amount of pension benefits based on the police o�cer's accumulated contributions. If the police officer does not withdraw his accumulated contributions, the police officer is entitled to these pension benefits upon reaching the age of 62. ��a [� ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Public Safety Retirement System (Continued) Pension provisions include disability and death benefits. Disabled officers are entitled to monthly payments for life of 50% of their average monthly compensation or normal pension amount, whichever is greater, if their disability is service connected, regardless of years of credited service. Average monthly compensation (AMC) is one-thirty-sixth of total compensation paid a member during the 3 years, out of the last 10 years of credited service, in which the amount paid was highest. If the police officer's disability was not service connected, the disabled officer is entitled to monthly payments for life of 25% of AMC, if the credited service is less than 7 years, 50% of AMC, if the credited service is 7 through 13 years, or 75% of AMC, if the credited service is 14 through 19 years. If the police officer is only temporarily disabled, he is entitled to monthly payments equal to one-twelfth of 50% of compensation paid during the year preceding the date the disability was incurred. The payments terminate after 12 months or prior recovery. Surviving spouses are entitled to two-thirds of the monthly payments, or 100% if duty related, the deceased active police officer would have been paid for disability or, in the case of a retired police officer, two-thirds of the retired officer's monthly pension payments. To qualify as a surviving spouse, the spouse must have been married to the deceased for at least 2 years. The spouse's benefits terminate upon her death. Each dependent child of a deceased police officer is entitled to one-ninth of the monthly payments the deceased active police officer would have been paid for disability or, in the case of a retired police officer, one-ninth of the retired officer's monthly pension payments. When the dependent child reaches the age of 18 or 23, if the dependent is a full-time student, the monthly payments will terminate. Pension provisions include health insurance benefits, whereby the retired police officer or his surviving spouse can elect to be covered by a health insurance plan provided by the Town or State of Arizona. The retired police officer or his surviving spouse pay for this coverage. However, they cannot be charged more than $60 per month plus an amount up to $25 per month for dependent coverage, if any. The Town's current year payroll for eligible police officers amounted to approximately $965,000. Police officers of the Town are required to pay 7.65% of their gross earnings to the pension plan. The Town makes periodic contributions to the pension plan at actuarially determined rates that, expressed as percentages of annual covered payroll, are designed to accumulate sufficient assets to pay benefits when due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are being amortized as a level percent of payroll over a period of 40 years (from July 1, 1978). During 1996, the Town was required to contribute 6.09% of its police officers' covered payroll to the plan. 23 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Pu•blic Safety Retirement Sy�tem (Continued) Total contributions made during fiscal 1996 were $132,686, of which $58,775 was made by the Town and $73,831 was made by police officers. The contributed amounts were actuarially determined as described above and were based on an actuarial valuation as of June 30, 1994. The pension contributions represent funding for normal cost and the amortization of the unfunded actuarial accrued liability. Significant actuarial assumptions used to compute pension contribution requirements are the same as those used to determine the standardized measure of the pension obligation. The computation of the pension contrbution requirements for fiscal 1996 was based on the same actuarial assumptions, benefit provisions, actuarial funding method, and other significant factors as used to determine pension contribution requirements in the previous years. Presented below is the total pension benefit obligation of the Town's PERS as of June 30, 1996. The amount of the total pension benefit obligation is based on a standardized measurement established by GASB Statement No. 5 that, with some exceptions, must be used by a PERS. The standardized measurement is the actuarial present value of credited projected benefits. This pension valuation method reflects the present value of estimated pension benefits that will be paid in future years as a result of police officer services performed to date and is adjusted for the effects of projected salary increases. A standardized measure of the pension benefit obligation was adopted by the GASB to enable readers of PERS financial statements to assess the Town's PERS funding status on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparison among such plans. Because the standazdized measure as of June 30, 1996, is used only for disclosure purposes by the Town's PERS, the measurement is independent of the actuarial computation made to determine contributions to the PERS, as previously explained. 24 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Public Saf� Retirement System (Continued) A variety of significant actuarial assumptions are used as of June 30, 1996, to determine the standardized measure of the pension benefit obligation and these assumptions are summarized below: • The present value of future pension payments is computed by using a discount rate of 9%. The discount rate is equal to the estimated long-term rate of return on current and future investments of the pension plan. • Future pension payments reflect an assumption of 6.5% (compounded annually) salary increases as a result of inflation. • Future pension payments reflect an assumption of additional projected salary increases ranging from 0.0% to 3.0% per year, depending on age, attributable to seniority/merit. The standardized measure of the assets in excess of the pension benefit obligation as of June 30, 1996, is as follows: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ - Current employees: Accumulated employee contributions including allocated investment mcome Employer-financed vested Employer-financed nonvested Health insurance Total pension benefit obligation Net assets available for benefits Assets in ezcess of the pension benefit obligation 380,755 435,840 231,032 33,531 1,081,158 . ;� .� � .. No changes in actuarial assumptions or benefit provisions that would significantly affect the valuation of the pension benefit obligation occurred during fiscal 1996. During fiscal 1996 and as of June 30, 1996, the Marana Marshal's Arizona PERS held no securities issued by the Town or other related parties. 25 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 1996 NOTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Public Safety Retirement System (Continued) Historical trend information as of June 30, 1996, for the Town's PERS is presented below: ..� .. .., • Net assets available for benefits as a percentage of the pension benefit obligation applicable to the Town's police officers 127.70% 132.40% 124.40% • Unfunded pension benefit obligation as a percentage of the Town's annual covered payroll for police officers. 00.00% 00.00% 00.00% • Town's contribution to the pension plan as a percentage of annual cov- ered payroll for police officers. 6.09% 6.24% 6.52% Historical trend information is presented in order for a reader to assess the progress made in accumulating sufficient assets to pay pension benefits as they become payable. Ten year histrorical trend information showing funding progress is presented in the System's separately issued financial report. : �:� � u, •�. :•, •���� ' .� Effective July 1, 1995, the Town established a Money Purchase Plan and Trust known as the Town of Marana Retirement Plan (Plan) in the form of the International City Management Association Retirement Corporation Prototype Money Purchase Plan and Trust. The prototype plan is qualified under Section 401 of the Internal Revenue Code. The Plan is a defined contribution plan that provides pension benefits for all full-time employees and permanent part-time employees, except for commissioned police personnel who are covered under the Arizona Public Safety Personnel Retirement System. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate from the date of employment. The Plan requires that both the employee and the Town contribute an amount equal to 4% of the employee's biweekly earnings, which includes overtime and bonuses. The Town's contributions for each employee(and interest allocated to the employee's account) are fully vested after five years of continuous service. 26 � � � TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 NOTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued) B. Town of Marana Retirement Plan (Continued) Town contributions for, and interest forfeited by, employees who leave employment � before five years of service are used to reduce the Town's current-period contribution requirement. The Town's total payroll in fiscal yeaz 1996 was $2,205,045. The Town's contributions were calculated using the earnings amount of $1,109,255. Both the Town and the covered employees made the required 4% contribution, amounting to $44,370 from each source, or $88,740 in total. C. Postemployment Benefits The Town offers no postemployment benefits to employees other than the previously discussed retirement plans. NOTE 9 - RISK MANAGEMENT The Town participates in the Arizona Municipal Risk Retention Pool for general liability, auto liability, and property damage insurance. The insurance carries a deductible of $25,000 per incident. For the year ended June 30, 1996, the Town paid $193,860 for these coverages. Workers' compensation insurance is placed through the State Compensation Fund. NOTE 10 - EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS For fiscal year 1996, expenditures exceeded authorized appropriations in the following individual funds: 1992 Community Development Block Grant 1993 Community Development Block Grant Community Development Block Grant - Revolving Loan Program Census Grant HIDTA MANTIS Highway Safety 402 Grant Drug and Gang Prevention Highway User Revenue $15,342 59,331 26,096 5,941 4,934 5,214 3,392 2,800 8,752 27 , TOWN OF MARANA, ARIZONA , NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 � ' � �� � � NOTE 10 - EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS (Continued) The excess expenditures for the 1992 and 1993 Community Development Block Grants and the Community Development Block Grant - Revolving Loan Program were due to the expectation at the time of budget adoption that these grants would be completed in fiscal year 1995. The excess expenditures for the Census Grant and Drug and Gang Prevention were due to these new funding sources not being anticipated at the time of budget adoption. Therefore, no amounts were included in the adopted budget for these five special revenue funds. The excess expenditures for all of these funds were covered by grant revenues, with the exception of the Community Development Block Crrant - Revolving Loan Program (which was covered by fund balance). At June 30, 1996, there were no individual funds with a deficit fund balance. NOTE 11- COMMITMENTS AND CONTINGENCIES � The Town is continuously liable with respect to other claims incidental to the ordinary course of its operations. At June 30, 1996, it is the opinion of Town management, based on the advice of the Town Attorney and outside counsel, that any such claims would not , have a material effect on the Town's financial position. The Town leases a truck under a noncancelable operating lease expiring in fiscal 1998. Future minimum lease payments under this lease are as follows: � � � , Years Ending June 30• 1997 1998 Total $3,388 1 $4,517 � The Town is also obligated under the terms of this lease to compensate the lessor for any mileage driven on the truck which is above the monthly intended mileage. Such a guarantee is in essence contingent rentals that are not determinable at year end. � � 28 � TOWN OF MARANA, ARIZONA , NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1996 � NOTE 11- COMMITMENTS AND CONTINGENCIES (Continued) � The Town leases office space for its planning and police departments under noncancelable, long-term operating leases with expirations of November 1997 and November 1999. One of these leases requires the Town Co pay its share of real estate ' taaces, common area charges, and management fees. This same lease requires annual adjustments for increases in the Town's share of real estate taxes, common area charges, and management fees. However, the increased related to controllable common area t charges and management fees by the landlord cannot increase more than 4.5% over the prior year. One lease contains two five-year renewal options at a monthly base rent of � either the then escalated rental rate or 90% of the prevailing market rental rate at the time of renewal, and the other lease contains two three-year renewal options at a monthly base rent of $2,600, plus an adjustment for the increase in the Consumer Price Index (CPI) for , the previous three years at the time of renewal. 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. 1997 1998 1999 2000 Total $ 49,617 32,702 20,202 5,051 ,��� Minimum annual rentals above exclude rental under renewal options as of June 30, 1996. Rent expense under the above leases for fiscal 1996 aggregated $51,619. 29 COMBINING � INDIVIDUAL FUND AND AC C UUNT GRUUP STATEMENTS STATEMENTS A GENERAL FUND The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in other funds. In Marana, these services include general government, development and planning services, town attorney, police, fire, magistrate court, public works, and parks and recreation. TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS GENERAL FUND — EXHIBIT A-1 June 30, 1996 and 1995 ASSETS Cash Investments Receivables: Ta�ces Other Prepaid expenditures Due from other funds Restricted assets: Cash Investments TOTAL ASSETS 1996 $ 13,363 6,288,089 574,856 43, 304 55, 040 128, 041 202 17, 497 $ 7,120,392 LIABILITIES AND FUND E�UITY LIABILITIES Accounts payable and accrued expenses $ 331,837 Due to other funds 144,068 Deferred revenue 56,401 Total liabiifties 532,306 FUND EOUITY Reserved for restricted assets Unreserved fund balances Total fund equity 5,754 6, 582, 332 6,588,086 TOTAL LIABI�ITIES AND FUND EQUITY $ 7,120,392 1995 $ 138,459 3, 779, 243 524, 062 17, 065 55, 040 139, 311 1, 888 17, 492 $ 4,672,560 $ 192,585 22,577 23, 988 239,150 7,279 4, 426,131 4,433,410 $ 4,672,560 30 ' TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 Year Ended June 30, 1996 REVENUES Taxes; Town sales tax Other agencies Sales taxes - state State revenue sharing Auto lieu taxes - state Total other agencies Licenses, fees and permits Building permits Development fees Cable television franchise fees Business licenses Other Total licenses, fees and permits Fines, forteitures and penalties; Town courtfines Interest Miscellaneous Recovered expenditures Other Balance available from prior years Total miscellaneous Total revenues EXPENDITURES General govemment Other general government Contractual services Special programs Other Contingency Capital outlay Debt service Total other general government Mayor and council Contractual services Commodities Other Contingency Capital outlay - Total mayor and council Variance - Favorable Actual Budget (Unfavorable) $ 5,832,390 $ 5,545,842 $ 286,548 222,428 176,467 45,961 195,911 167,676 28,235 68,981 52,000 16,981 487,320 396,143 91,177 791,863 500,000 291,863 246,611 - 246,611 26,750 - 26,750 16, 637 12, 500 4,137 6,397 5,000 1,397 1,088,258 517,500 570,758 108,129 110,000 (1,871) 277, 750 135, 000 142, 750 49,795 - 49,795 21,977 56,440 (34,463) - 2,000,000 (2,000,000) 71,772 2,056,440 (1,984,668) 7,865,619 8,760,925 (895,306) 142,412 255,500 113,088 90, 411 287,150 196, 739 133,357 289,620 156,263 - 460,603 460,603 9, 280 251,130 241, 850 2a,eso 2�,ss2 (� ,osa� 404, 350 1, 571, 855 1,167, 505 502 1,420 918 6,716 5,500 (1,216) 9,016 13,200 4,184 - 2,000 2,000 2,564 22,000 19,436 18,798 44,120 25,322 31 ' TOWN OF MARANA, ARIZONA 1 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 1996 � � � ' ' ' Total general government Development and planning services ' Building services Personal services Contractuat services Commodities � Other Contingency Capital outlay Debt service ' ' � ' EXPENDITURES (continued) General government (continued) Ad m inistration Personal services Contractuai services Commodities Other Contingency Capital outlay Debt service Total administration Total building services Planning and zoning Personal services Contractual services Commodities Other Capital outlay Debt service Total planning and zoning Variance - Favorable Actual Budget (Unfavorable} $ 286,318 $ 304,625 $ 18,307 13,364 19,150 5,786 30,279 11,500 (18,779) 21,588 11,300 (10,288) - 2,000 2,000 679 18,500 17,821 11,219 21,739 10,520 363,447 388,814 25,367 786,595 2,004,789 1,218,194 147,353 191,090 43,737 25,720 34,440 8,720 17,479 11,500 (5,979) 13,934 16,000 2,066 - 2,000 2,000 34,777 19,034 (15,743) - 4, 785 4, 785 239,263 278,849 39,586 151,917 149,556 (2,361) 46,444 130,580 84,136 10,897 11,030 133 16,368 15,860 (508) 16,341 12,010 (4,331) 3, 632 8, 507 4, 875 245,599 327,543 81,944 Total development and planning ' services 484,862 606,392 121,530 � , � Town attorney Tax Water Annexation ADA P rosecution General services Litigation Total town attorney 64,614 14,000 (50,614) 11,510 18,000 6,490 6,690 70,000 63,310 672 12,000 11,328 63,036 65,000 1,964 88,716 100,000 11,284 - 40,000 40,000 235,238 319,000 83,762 ' 32 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 1996 EXPENDITURES (continued) Police Personal services Contractual services Commodities Other Capital outlay Debt service Total police Fire Contractual services Total fire Magistrate court Personal services Contractual services Commodities Other Contingency Capital outlay Debt service Total magistrate court Public works Personal services Contractual services Commodities Other Contingency Capital improvement projects Capital outlay Debt service Total public works Parks and recreation Parks Personal services Contractual services Commodities Other Contingency Capital outlay Total parks Variance - Favorable Actual Budget (Unfavorable} $ 1,242,867 $ 1,117,143 $ (125,724) 120, 584 137, 342 16, 758 95,939 105,600 9,661 154,346 53,000 (101,346) 16,697 78,385 61,688 161,057 97,898 (63,159) 1,791,490 1,589,368 (202,122) 109,231 - (109,231) 109,231 - (109,231) 147,702 179,031 31,329 37,817 57,730 19,913 11,275 7,000 (4,275) 7,598 14,200 6,602 - 3,000 3,000 6,582 7,000 418 2,519 2,453 (66) 213,493 270,414 56,921 273,765 340,077 66,312 904,935 1,591,405 686,470 71,510 58,335 (13,175) 66,508 22,600 (43,908) - 3,000 3,000 551,362 1,639,000 1,087,638 - 19, 229 19, 229 13,421 58,442 45,021 1,881,501 3,732,088 1,850,587 56,932 24,217 (32,715) 15,811 20,900 5,089 21,150 22,900 1,750 19,574 21,600 2,026 - 2,000 2,000 10, 374 11, 700 1, 326 123,842 103,317 (20,525) 33 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE — BUDGET AND ACTUAL GENERAL FUND — EXHIBIT A-2 (Continued) Year Ended June 30, 1996 EXPENDITURES (continued) Recreation Personal services Contractual services Commodities Other Contingency Total recreation Total parks and recreation Total expenditures Excess of revenues over expend itu res OTHER CHANGES IN FUND E�UITY Decrease in reserve for restricted assets Residual equity transfers out UNRESERVED FUND BALANCE, BEGINNING UNRESERVED FUND BALANCE, ENDING Variance — Favorabie Actual Budget (Unfavorable) $ (11,245) $ — $ 11,349 4,384 3,412 2,500 7,862 8,000 — 1,000 _ 11,378 15,884 11,245 (6, 965) (912) 138 1,000 4, 506 135,221 119,201 (16,020) 5,637,631 8,641,252 3,003,621 2,227,988 $ 119,673 $ 2,108,315 1, 525 (73,312) 4,426,131 $ 6,582,332 34 STATEMENTS B SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taxes or other earmarked revenue sources. They are usually required by sta.tute or Federal grant regulation to record particular operating functions of the Town. Federal Grant Funds - includes the Community Development Block Grants, the COPS Grant, the Census Grant, GITEM, HIDTA, MANTIS, Highway Safety 402 Grant, and Drug and Gang Prevention. The separate funds have been established to account for grant revenues and to provide compliance with Federal grant regulations. Other Grant Funds - includes RICO, LTAF, and Highway User Revenue. These funds are non-federal funds required by Arizona Statutes to be used for police or public works expenditures. 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I I I aQ I a V j N� N C- � O C C w � � ; W g�3��m�w�w L W m W>>s�`��� � � � S=ddm2Jd V C F- Q rn �n ao rn �o � vaa�n vn �i' T O� N N � � N� O N 4 � n N N � l7 l7 O O I I W I 1 � o O 0 0 ro � N N i i i i m m � � � � 1 I N I I N � � 0 0 I I I I 0 0 i ' i i i ' o ° o H � i �iii � � � � � I � I I I � rn � o� u� � O �O O � � � � I I I I i i i i 1 I I I I I I I I I I I � � � � I I I I N O � y m Z � C C m a Z = C � > � 7 E� m � " o '-�p W m Z a� � m � N O C m �� W c�� �m � c N c N .4 � " 'g o � c� x � W � � $ � p .0 - c 'O 'C Z �, Z � �'�s �' �� g � 5 � oom�.cE� —°� ' � < Z o� o m m m o�o m W �C7�aaUa � X o p a p U W W LL Q 1 � TOWN OF MARANA, ARIZONA 1992 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-3 ' Year Ended June 30, 1996 REVENUES Other agencies Block grants — Pima County Total revenues EXPENDITURES Current operations Community development Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 15,342 $ — $ 15,342 15,342 — 15,342 15,342 — (15,342) 15,342 — (15,342) $ — $ — $ — � TOWN OF MARANA, ARIZONA 1993 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-4 Year Ended June 30, 1996 REVENUES Other agencies Block grants — Pima County Total revenues EXPENDITURES Current operations Public works Community development Total expenditures Excess of revenues overexpenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 59, 331 $ — $ 59, 331 59,331 — 59,331 21,331 38,000 59, 331 — (21,331) — (38, 000) — (59,331) $ — $ — $ — 40 TOWN OF MARANA, ARIZONA 1994 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT 8-5 Year Ended June 30, 1996 REVENUES Other agencies Block grants — Pima County Total revenues EXPENDITURES Current operations General government Public works Community development Parks and recreaton Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING Residual equity transfers out FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 117,645 $ 317,290 $ (199,645) 117,645 317,290 (199,645) 12,136 136,320 124,184 12,794 74,820 62,026 41,907 — (41,907) 28,808 106,150 77,342 95,645 317,290 221,645 22,000 — 22,000 (22,000) — (22,000) $ — $ — $ — 41 TOWN OF MARANA, ARIZONA 1995 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-6 Year Ended June 30, 1996 REVENUES Other agencies Block grants — Pima County Total revenues EXPENDITURES Current operations General government Public works Community development Parks and recreaton Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING Residual equity transfers out FUND BALANCE, ENDING Variance — Favorable Actuai Budget (Unfavorable) $ 93,328 $ 250,000 $ (156,672) 93,328 250,000 (156,672) 14,813 217,000 202,187 134 — (134) 2,000 — (2,000) 28,772 33,000 4,228 45,719 250,000 204,281 47,609 — 47,609 (47,609) — (47,609) $ — $ — $ — 42 TOWN OF MARANA, ARIZONA COMMUNITY DEVELOPMENT BLOCK GRANT — REVOLVING LOAN PROGRAM — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EXHIBIT B-7 Year Ended June 30, 1996 REVENUES Interest Total revenues EXPENDITURES Current operations Parks and recreation Total expenditures Deficiency of revenues under expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 1,021 $ — $ 1,021 1,021 — 1,021 26,096 — (26,096) 26,096 — (26,096) (25,075) — (25,075} 25,075 — — $ — $ — $ — 43 TOWN OF MARANA, ARIZONA COPS GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-8 Year Ended June 30, 1996 REVENUES Other agencies Public safety — U.S. Dept of Justice Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 28,801 $ 30,000 $ (1,199) 28,801 30,000 (1,199) 28, 801 30, 000 1,199 28,801 30,000 1,199 $ — $ — $ — 44 TOWN OF MARANA, ARIZONA RICO — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-9 Year Ended June 30, 1996 REVENUES Other agencies RICO funds — Pima County Interest Other Total revenues EXPENDITURES Current operations Police Total expenditures Deficiency of revenues under expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 3,473 $ 45,000 $ {41,527) 1, 975 — 1, 975 400 - 400 5,848 45,000 (39,152} 30,790 45,000 14,210 30,790 45,000 14,210 (24,942) — (24,942) 40,998 — 40,998 $ 16,056 $ — $ 16,056 45 TOWN OF MARANA, ARIZONA CENSUS GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-10 Year Ended June 30, 1996 REVENUES Other agencies Other grants Total revenues EXPENDITURES Current operations ' Development and planning services Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 5,941 $ — $ 5,941 5,941 — 5,941 5,941 — (5,941) 5,941 — (5,941) $ — $ — $ — 46 TOWN OF MARANA, ARIZONA GITEM — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITUFiES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-11 • Year Ended June S0, 1996 REVENUES Other agencies Public safety — Arizona Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 63,929 $ 67,580 $ (3,651) 63,929 67,580 (3,651) 63,929 67,580 3,651 63,929 67,580 3,651 $ — $ — $ — 47 TOWN OF MARANA, ARIZONA HIDTA — SPECIAL REVENUE FUNQ STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-12 Year Ended June S0, 1996 REVENUES Other agencies Public safety — Tucson Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 36,204 $ 31,270 $ 4,934 36,204 31,270 4,934 36,204 31,270 (4,934) 36,204 31,270 (4,934) $ — $ — $ — 48 TOWN OF MARANA, ARIZONA MANTIS — SPECIAI. REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-13 Year Ended June 30, 1996 REVENUES Other agencies Public safety — Tucson Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 37,049 $ 31,835 $ 5,214 37, 049 31, 835 5, 214 37,049 31,835 (5,214) 37,049 31,835 (5,214) $ — $ — $ — � TOWN OF MARANA, ARIZONA HIGHWAY SAFETY 402 GRANT — SPECIAI REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-14 Year Ended June 30, 1996 REVENUES Other agencies Public safety — Arizona Total revenues EXPENDITURES Current operations Police Totai expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 10,452 $ 7,060 $ 3,392 10, 452 7, 060 3, 392 10,452 7,060 (3,392) 10,452 7,060 (3,392) 0 $ — $ — $ — 50 TOWN OF MARANA, ARIZONA LTAF — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-15 Year Ended June 30, 1996 REVENUES Other agencies LTAF funds — Arizona Total revenues EXPENDITURES Current operations Public works Totai expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 25,816 $ 25,874 $ (58) 25,816 25,874 (58) 25,816 25,874 58 25,816 25,874 58 $ — $ — $ — 51 TOWN OF MARANA, ARIZONA DRUG AND GANG PREVENTION — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-16 Year Ended June 30, 1996 REVENUES Other agencies Other grants Total revenues EXPENDITURES Current operations Parks and recreation Total expenditures Excess of revenues over expenditures FUND BALANCE, BECINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 2,800 $ — $ 2,800 2,800 — 2,800 2,800 — (2,800) 2,800 — (2,800) $ — $ — $ — 52 TOWN OF MARANA, ARIZONA HIGHWAY USER REVENUE — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-17 Year Ended June 30, 1996 REVENUES Other agencies Highway user fees — Arizona Total revenues EXPENDITURES Current operations Public works Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorable Actual Budget (Unfavorable) $ 192,083 $ 183,331 $ 8,752 192, 083 183, 331 8, 752 192,083 183,331 (8,752) 192,083 183,331 (8,752) $ — $ — $ — 53 STATEMENTS C ENTERPRISE FUND The Enterprise Fund is established to account far an operation that is financed and operated in a manner similar to a private business enterprise and where periodic determination of net income is desired. Expenses, including depreciation, of providing goods or services to the general public are recovered primarily through user charges. The Water Fund was established to account for the financing and operation of the Water Utility. All activities necessary to provide water services to Town residents are accounted for within this fund. TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS WATER FUND — EXHIBIT C-1 June 30, 1996 and 1995 1996 ASSETS CURRENT ASSETS Cash Receivables: Other Restricted assets: Cash Investments Total current assets PROPERTY, PU4NT, AND EGlUIPMENT Land Water rights Improvements, including wells and tanks Bond issuance costs Organization costs Construction work — in — progress Total Less accumulated depreciation and amortization Total property, plant, and equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses: Accounts payable Deposits Sales tax payable Accrued interest Total Due to other funds Current portion of revenue bonds Total current liabilities LONG—TERM LIABILITIES Revenue bonds, less current maturities above Total liabilities FUND E�UITY Contributed capital Deficit Total fund equity TOTAL LIABILITIES AND FUND E�UITY $ — 13,190 1, 065 21, 372 35, 627 9,720 50,000 338,468 27,268 47, 523 105,287 578, 266 79, 528 498, 738 $ 534,365 $ 47,904 3,262 934 11, 051 63,151 16, 953 10,000 90,104 260,000 350,104 272,773 (88, 512) 184, 261 $ 534,365 1995 $ 16 10,633 810 21, 520 32,979 9, 720 50, 000 280, 562 27, 268 47, 523 20, 272 435,345 62,869 372,476 $ 405,455 $ 47,903 2, 816 765 11,429 62,913 10,000 72,913 270, 000 342,913 129, 852 (67, 310) 62,542 $ 405,455 54 ! TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN DEFICIT - BUDGET AND ACTUAL WATER UTILITY FUND - EXHIBIT C-2 Year Ended June 30, 1996 OPERATING REVENUES Current use charges Other Total operating revenues NONOPERATING REVENUES Interest income Bond proceeds Total nonoperating revenues Total revenues OPERATING EXPENSES Material, supplies, and other expenses: Personai services Contractual services Commodities Other Depreciation expense Total operating expenses NONOPERATING IXPENSES Bond interest expense Bond fees Capital outlay Totai nonoperating expenses Totai expenses NET LOSS DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equiry transfers in CONTRIBUTED CAPITAL, ENDING FUND E�UITY, ENDING Variance - Favorable Actuai Budget (Unfavorable) $ 81,479 $ 377,000 $ (295,521) 3,951 70,000 (66,049} 85,430 447,000 (361,570) 752 - 752 - 500,000 (500,000) 752 500,000 (499,248) ss,�s2 sa�,000 (sso,a�e) 29,876 25,811 (4,065) 11, 573 10, 672 (901) 5,162 5,700 538 20,332 25,537 5,205 16,659 - (16,659) 83,602 67,720 (15,882) 22,103 35,337 13,234 1,679 - (1,679) - 963,616 963,616 23,782 998,953 975,171 107,384 1,066,673 959,289 (21,202) (119,673) 98,471 (67,310) - (67,310) (88,512) (119,673) 31,161 129,852 - 129,852 142,921 - 142,921 272,773 - 272,773 $ 184,261 $ (119,673) $ 303,934 55 STATEMENT D AGENCY FUND The Agency Fund is purely custodial and does not involve the measurement of results of operations. The Deferred Compensation Fund accounts for voluntary contributions made by Town employees to the International City Management Association Retirement Corporation (ICMA). These contributions are invested in various fixed income and equity funds. ICMA administrates this program through a contract with the Town. Participation in the plan is optional and available to all Town employees. TOWN OF MARANA, ARIZONA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES — AGENCY FUND EXHIBIT D-1 June 30, 1996 Deferred Compensation Fund ASSETS Deposits with �iscal agents TOTAL ASSETS Balance Balance July 1, 1995 Additions Deletions June 30, 1996 $ 14, 635 $ 11, 599 $ — $ 26, 234 $ 14, 635 $ 11, 599 $ — $ 26, 234 LIABILITIES Due to deferred compensation plan members $ 14,635 $ 11,599 $ — $ 26,234 TOTAL LIABILITIES $ 14,635 $ 11,599 $ — $ 26,234 56 STATEMENTS E GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is comprised of those fixed assets of a governmental jurisdiction which are not accounted for in the Enterprise Fund. Infrastructure assets, which include roads, bridges, streets, and street lighting systems are not included in these schedules. TOWN OF MARANA, ARIZONA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE EXHIBIT E-1 June 30, 1996 and 1995 1996 1995 GENERAL FIXED ASSETS Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Leasehold improvements TOTAL GENERAL FIXED ASSETS $ 73, 310 322,258 722, 701 899, 739 189, 656 199, 377 $ 2,407,041 $ 73,310 308,183 759,579 671,099 150,000 199,377 $ 2,161,548 INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE From Current Revenues $ 1,982,511 From Revenue Bonds 255,750 From Federal Grants 168,780 TOTAL INVESTMENT IN CENERAL FIXED ASSETS $ 2,407,041 $ 1,790,749 255, 750 115, 049 $ 2,161,548 57 � � � � O N N O y - - ln 6I 10 r- �t � I� Y � � � N l � CD N � O 1— N � EA y � � � � � � � IA CD � N I � � I I I I � N ) � O J � EA EA � � � Y H Q �a � Z a Z a .", � O � a� � s Y V �� Q2 ��� �Q O � �2 w � 0 N� 2m a � N �C Qf�W� �-`yf9 y Q W H N� co N Q � m � Q�U� �a=c �OW� OW Z �y y C J � Q� $ W m 2 W C7 u. O W � J C � J 0 W _ U � � � c c0 C O U c � lJ.. � � ' f0 (O I I I I I 1 � � � � � � I� N N �A � OD � i «� � v o � r u a�o r�i �O c� � � rn r' M N f0 EA EA O�f l� � v O�f � �o C� N '�7 � O ( � N co c*> n � � f�0 � � N N I � I I n I C � � a co 0 N O c� � I I I I � I � � (!9 � � W N rn y � .. a .� � o � � � `� a. = x � °' o °- LL E � � m �o � � � 7 � � Q j C 0 y � � � 0 � y � Y Y W °1 Q c�i � 3 � c W � � Z N N U � � C7 C > N V p) n � Y �l C7 0 a � a U a Q H � � TOWN OF MARANA, ARIZONA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS — BY FUNCTION AND ACTIVITY EXHIBIT E-3 June 30, 1996 General Fixed Additions Deletions General Fixed Assets and and Assets Function and Activiry July 1, 1995 Transfers Transfers June 30, 1996 General government $ 443,021 $ 29,508 $ (16,986) $ 455,543 Development and planning services 154,558 51,118 (6,110) 199,566 Police 813,135 37,377 (4,950) 845,562 Magistrate court 15,353 6,582 — 21,935 Public works 459,177 104,741 (19,892) 544,026 Community development 75,130 14,075 — 89,205 Parks and recreation 201,174 50,030 — 251,204 TOTAL GENERAL FIXED ASSETS $ 2,161,548 $ 293,431 $ (47,938) $ 2,407,041 59 Z � H U Z � m Z N N �� � Q Q Y a-zas Z �ay� � m � LL C � ~ Z W � � W� 3 z g Q W O O � J W Z W � � O)���OCOG0017�. 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Z � � C O N Q c� � � � O C � 0 � �i U 7 O � (D TOWN OF MARANA, ARIZONA TABLE III ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (Unaudited) Fiscal Year 1986 — 87 1987 — 88 1988 — 89 1989 — 90 1990 —91 1991 — 92 1992 - 93 1993 — 94 1994 — 95 1995 — 96 Assessed Property Value $ 5,962,472 8,392,200 18,522,620 17,903,587 20,639,806 21,302,281 20,105,438 21, 360,473 46,427,724 49, 677, 845 Estimated Property Value $ 59,776,476 76, 863, 547 144,124, 821 140,991,242 162,765,533 164,744,983 156,300,829 160,582,056 297,740,632 325,467,683 Ratio of Total Assessed Value to Total Estimated Value 10% 11% 13% 13% 13% 13% 13% 13% 16% 15% Note: Includes reai property only Source: Pima County Assessor's Office of Pima County, Arizona C:�% � Z W Z � W > � c7 Z C�'i z a� <y O � � N Q jW} Oy�^ Z WZy ( (�� � �m��LL 1�0 Q a o Z QO � 3 ��g � � W a � V � � W a � ��M� . � . 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Q m �d., l0 � a1 � X C '3 ° '�a m o QE o ���' z � � TOWN OF MARANA, ARIZONA TABLE V COMPUTATION OF LEGAL DEBT MARGIN GENERAL OBLIGATION BONDS June 30, 1996 (Unaudited) Net Assessed Valuation Debt Limit Amount of debt applicable to debt limit: General obligation bonds outstanding Less assets in debt service funds available for payment of principal Amount of debt applicable to debt limt Legal debt margin available $ 49,677,845 20% Bonds (1) $ 9,935,569 6% Bonds (2) $ 2,980,671 Total $ 12,916,240 r, $ 9,935,569 $ 2,980,671 $ 12,916,240 N otes: (1) Under Arizona law, Towns can issue general obligation bonds for purposes of water, sewer, artificial light, and parks up to an amount not exceeding 20% of assessed valuation. (2) Under Arizona law, Towns can issue general obligation bonds for all purposes other than those listed in Note (1) above, up to an amount not exceeding 6% of assessed valuation. Sources: Town of Marana, Arizona and Pima County Assessor's Office of Pima County, Arizona � TOWN OF MARANA, ARIZONA TABLE VI COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 1996 (Unaudited) Jurisdiction Town of Marana, Arizona Pima County Marana School District Flowing Wells School District Net Bonded Debt Outstanding $ 575,000 192,683,000 37,315,000 19,445,000 $ 250,018,000 Percentage Applicable to Town of Marana 100.0000% 1.5297% 100.0000% 7.6923% Amount Applicable to Town of Marana $ 575,000 2,947,472 37,315,000 1,495,769 $ 42,333,241 Notes: (1) The bonded debt of Town of Marana, Arizona includes revenue bonds issued by the Marana Municipal Property Corporation. (2) Percentages and applicable amounts are estimated by the Town of Marana, Arizona based upon assessed property values and square mileage of intersected territory. Sources: Town of Marana, Arizona and Pima County Assessor's Office of Pima County, Arizona 65 TOWN OF MARANA, ARIZONA TABLE VII LEASE REVENUE BOND COVERAGE LAST TEN FISCAL YEARS (Unaudited) Fiscal Year 1986 — 87 1987 — 88 1988-89 1989 — 90 1990 —91 1991— 92 1992 — 93 1993-94 1994-95 1995-96 Gross Revenues Principai $ 394,168 $ — $ 771,459 - 919,037 — 798, 515 — 1,308,680 — 1,054,079 — 1,293,750 — 4,121,614 — 6, 662,180 5, 000 7, 865, 619 15, 000 Interest _ $ 7,619 22,858 22,858 49,402 47,361 47,061 45,993 N otes: (1) Revenues include all General Fund revenues (2) All revenues of the General Fund are pledged toward payment of the lease revenue bonds Source: Town of Marana, Arizona Total 7,619 22,858 22,858 49,402 47,361 52,061 60,993 Coverage 104.81 57.25 46.11 26.19 87.03 127.97 128.96 .. TOWN OF MARANA, ARIZONA TABLE VIII DEMOGRAPHICS June 30, 1996 (Unaudited) Population by Age Group Age Group Under 5 5-14 15-19 20-29 30-39 40-49 50-64 65 and over Total Number 452 808 329 807 1,183 757 624 349 5,309 Percentage of Total 8.51 % 15.22% 6.20% 15.20% 22.28% 14.26% 11.76% 6.57% 100.00% Population by Ethnic Background Age Group White Hispanic Black Native American Other Totat Number 3,624 1,200 189 133 163 5,309 Percentage of Total fi8.26% 22.60% 3.56% 2.51 % 3.07% 100.00% Note: Population figures are based on a recount completed by the U.S. Census on September 14, 1995 Sources: U.S. Census Bureau and Town of Marana, Arizona 67 TOWN OF MARANA, ARIZONA TABLE IX PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS LAST TEN FISCAL YEARS (Unaudited) Fiscal Year 1986 — 87 1987 —88 1988 — 89 1989 —90 1990 — 91 1991 — 92 1992 — 93 1993 — 94 1994-95 1995 — 96 Estimated Property Value $ 59,776,476 76, 863, 547 144,124,821 140,991,242 162,765,533 164, 744, 983 156,300,829 160,582,056 297, 740, 632 325,467,683 Residential Construction Commercial Construction Number of Number of Units Value Units Value N.A. $ N.A. N.A. $ N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 45 3,800,816 5 318,629 18 1,788,250 10 1,713,967 112 9,417,569 1 20,000 447 40,709,699 5 189,244 320 28,018,383 41 5,742,572 329 34,083,387 40 1,842,171 Note: With recent annexations, there are several bank branches doing business in Marana, Arizona.There is only one bank branch that officially lists its location as Marana, Arizona. This one branch represents the bank deposits above. Source: "Operating Banks and Branches" by Federal Deposit Insurance Corporation Bank Deposits (000's) 7,313 7, 791 N.A. 7,509 8, 555 9,414 9,189 9,939 10,256 N.A. 68 TOWN OF MARANA, ARIZONA TABLE X MISCELLANEOUS STATISTICAL DATA June 30, 1996 (Unaudited) Date of Incorporation: March 21, 1977 Form of Government: 7 member council/Manager Largest Employers Fry's K — Mart Tucson Electric Power Marana School District Flowing Wells School District Payless Cashways Product/ Service Retail — Food Retail — Stores Electric Utility School School Retail — Stores Number of Employees (1) 1,564 (1) 1,450 (1) 1,125 (2) 1,026 (1) 665 (1) 195 Notes: 1) These totals represent employees in locations throughout Southern Arizona, not just in the Town of Marana, Arizona 2)These totals are for employers with business addresses listed as Marana, Arizona. Source: "Star 200 (The Major Employers of Southern Arizona)" published by the Arizona Daily Star on March 24, 1996 City Employees: June 30, 1996 Full — Time Part — Time Total Police Protection Number of Stations Total Full — Time Employees Commissioned Officers Parks and Recreation Acres Parks Playgrounds Swimming Pools Water Utility Operable Wells Active Services: Metered U n m etered Water Distributed (Gallons) 85 23 108 2 42 33 40 1 1 1 �: 185 15 23,393,000 .•