HomeMy WebLinkAbout1997 Financial Statement June 30c� � � �� � ���x�
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MEMORANDUM
TO: r d C cil
FROM: 'e E. avis
DATE: January 12, 1998
SUBJECT: Fiscal 1996-97Audited Financial Statement
Attached is the Town of Marana's audited financial statement for the fiscal year ending
June 30, 1997. The financial report has once again been submitted to the Government
Finance Officers Association (GFOA) for consideration of the Certificate of Achievement
in Financial Reporting (CAFR). The CAFR is issued by GFOA, a national organization
"serving the professional development needs of finance officials at sta.te and local levels
of government". Among other things, the GFOA eonducts educational and training
activities and sponsors various technical recognition programs. You may recall that the
Town was awarded its first ever CAFR for the FY 95-9b financial report.
I am confident you will find the report to be informative, and Mr. Roy Cuaron, Finance
Director, will update you on GFOA's findings. The evaluation process normally takes
between four and six months.
l/13/98
TABLE Or CONTENTS
INTRODUCTORY SECTION
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Letter of Transmittal ...................................................................................... I
T own of Marana Officials .............................................................................. VIII
Town of Marana Organizational Chart .......................................................... IX
GFOA Certificate of Achievement ................................................................ X
FINANCIAL SECTION
Opinion of the Certified Public Accountant ...........
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Fxhibit
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
FundTypes .................................................................... �
Notes to Combined Financial Statements ........................ -
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General Fund
Comparative 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
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TABLE OF CONTENTS
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Special Revenue Funds (Continued)
1994 Community Development Block Grant - Statement
of Revenues, Eapenditures and Changes in Fund
Balance - Budget and Actual ......................................B-5
1995 Community Development Block Grant - Statement
of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual ......................................B-6
1996 Community Development Block Grant - Statement
of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual ......................................B-7
HOME Program - Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual....B-8
COPS Grant - Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual..........B-9
RICO - 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 znd 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
Arizona Criminal Justice Grants - 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
Highway User Revenue - Statement of Revenues,
Expenditures and Changes in Fund Balance -
Budget and Actual .......................................................B-16
Highway Safety/JCEF - 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
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TABLE OF CONTENTS
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General Fixed Assets Account Group
Comparative Schedule of General Fixed Assets by
Source.........................................................................D-1
Schedule of General Fixed Assets - By Function
andActivity .................................................................D-2
Schedule of Changes in General Fixed Assets -
By Function and Activity ............................................D-3
STATISTICAL SECTION (Unaudited) Table
General Government Expenditures by Function -
Last Ten Fiscal Years ...........................................................I
General Revenues by Source - Last Ten Fiscal Years ...........II
Assessed and Estimated Value of Taxable Property -
Last Ten Fiscal Years ...........................................................III
Property Tax Rates - Direct and Overlapping Governments -
(Per $100 of Assessed Value) - Last Ten Fiscal Years........IV
Computation of Legal Debt Margin General Obligation
Bonds ...................................................................................V
Computation of Direct and Overlapping Debt .......................VI
Lease Revenue Bond Coverage - Last Ten Fiscal Years.......VII
Demographics........................................................................VIII
Property Value, Construction, and Bank Deposits -
Last Ten Fiscal Years ...........................................................IX
Miscellaneous Statistical Data ...............................................X
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MARANA
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TOWN OF MARANA
December 30, 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,
1997 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,
CPA. Responsibility for the accuracy of the data, and the completeness and fairness of the presentation,
including all disclosures, rests with the Town. To the best of our knowledge and belief, the data
contained in the CAFR is accurate in all material respects, and is reported in a manner designed to present
fairly the financial position and results of operations of the various funds and account groups of the Town.
All disclosures necessary to enable the reader to gain an understanding of the Town's financial activities
have been included.
The CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductory
' Section includes this transmittal letter, the Town's organizational chart, and a list of principal Town
of�cials. 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.
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THE REPORTING ENTITY AND ITS SERVICES
' �Iistorical 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 five 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 departxnents.
The Council appoints a Town Manager who is responsible for the general, administrative and overall
operations of the Town.
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1 13251 N. LON ADAMS ROAD
� MARANA, ARIZONA 85653 � PHONE: (520) 682-3401 � FAX: 682-2654
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Entity Defined
In accordance with standards set forth by the Governmental Accounting Standards Board, the Town of
Marana includes in its �nancial 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
, Current Condition
The financial and economic condition of the Town of Marana at June 30, 1997 mirrors that of the past
few years - positive growth. Spurring the growth are a strong local economy, prudent fiscal management,
, responsive customer service and a philosophy and attitude that promotes and encourages economic
development.
' Sales tax revenues, the Town's primary source of income, increased by over 16% from fisca195-96 to
fiscal 96-97. The opening of several new taxpaying business during the year, combined with modest
growth among the largest taxpayers, contributed to the overall increase in sales ta�c revenues. Further, the
diversity of the local tax base insulates the Town from adverse impacts caused by inflationary or
1 recessionary conditions.
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Sound fiscal management practices, beginning with the budgetary process, provides the framework which
saw the total fund balance grow from $6.6 million to over $7.5 million, an increase of nearly 14%.
Monthly monitoring of budget variances further ensures that revenues and expenditures remain within
approved budgetary levels.
Commitment to customer service has been a dominant theme from senior management since day one.
This philosophy, coupled with the pro-business attitude of the Mayor and Council, has been instrumental
in the growth and fiscal prosperity of the Town.
Fu�ure 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. Residential activity continues to be strong in the Continental
Ranch area, while construction at Heritage Highlands appears to have gained momentum. Additional
planned residential developments include Saguaro Springs, Cortaro Ranch and La Mirage.
From the commercial perspective, several new business establishments have commenced operations in
� Marana, including Driver's Mart, the Cracker-Barrel and Keuken Dutch restaurants, the Links at
Continental and the Fry's Shopping Center. These establishments will contribute generously to the
Town's coffers. Further, there are on-going discussions with several major retailers and a manufacturing
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firm in hopes of luring them to Marana. If these prospects come to fruition, the local tax and employment
base will be greatly enhanced.
Additional evidence of economic prosperity include planned commercial development along Cortaro
Road, improvements to the Cortaro/I-10 interchange and commencement of bank protection
improvements along the Santa Cruz River. The latter improvements will position the largely undeveloped
northwest quadrant to benefit from recent increases in economic activity. Current and 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 IIVITIATIVES
Current Year Projects
The Town's 1996-97 budget of $15.2 million represented a 41% increase from the previous fiscal year.
Major components of the budget included $3.5 million for the construction and maintenance of streets and
roads, $800k for additional personnel, and $1.3 million for the acquisition of land, computers, vehicles
and machinery & equipment, most of which were necessitated by the continued growth of the Town. An
additional $1.7 million was budgeted for the acquisition and operation of water entities within the Town
limits. The budget also reflected moderate service level increases in police, public works and building
services.
The FY 96-97 year also yielded the following achievements:
♦ A continuation of fire protection service to all residents of the Town, a service that began in the last
quarter of fisca195-96;
♦ Implementation of a pay for performance plan that rewards employees for meritorious service at
competitive salaries;
♦ Im�lementarion of a state of the art, automated permitting and geographical information system (GIS)
that provides information immediately and hastens the permitting process;
♦ Construction of Price Club Loop Connection to accommodate traffic flow within the central business
district;
♦ Construction of Phase I of the Park Master Plan;
♦ Construction of the Police Modular and Town Hall Parking Facility;
♦ Acquisition of the Marana Water Company and general agreement on the terms and conditions for the
purchase of the Cortaro-Marana Irrigation District's municipal and industrial systems;
♦ Adoption of the Town's Comprehensive General Plan;
♦ Opening of the Heritage Highland Golf Course, an eighteen hole public golf course.
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Future Year Projects
The Town is committed to improving and increasing service levels to its residents and planning for the
proper and orderly growth of the community. To that end, the following activities are planned for the
near future:
♦ Design and construction of a municipal complex which allows for the consolidation of services and
facilities to better serve its residents;
♦ Construction of Phase II of the Park Master Plan;
♦ Completion of a master wastewater facility plan;
♦ Completion of a Town-wide Capital Improvement Plan;
♦ Completion of a design concept report for the Ina/T'hornydale area that will address traffic congestion
in the immediate area;
♦ Expansion of bus service for rural Marana residents;
♦ Implementation of the Intergovernmental Agreement (IGA) with Pima County for bank protection
along the Santa Cruz River;
♦ Construction of Arizona Pavilions Drive to spur economic activity and facilitate traffic flow in the
Cortaro Road area;
♦ Construction of The Links at Continental, an eighteen hole public golf course;
♦ Consider zoning request for major resort hotel at Dove Mountain;
♦ Implement funding mechanism to address roadway capital improvement projects.
FINANCIAL INFORMATION
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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
recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the
valuation of costs and benefits requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe the Town's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of
�nancial transactions.
The policy of the Town of Marana provides that the Town Council shall adopt the annual budget prepared
by the Town Manager and senior staff. This budget is reviewed by the Town Council and is formally
adopted by the passage of a budget resolution. The Town Manager is authorized to transfer budgeted
amounts between departments within any fund; however, any revisions that alter the total expenditures of
any fund must be approved by the Town Council.
Revenue and expenditure reports that compare budget versus actual results are produced monthly and are
distributed to senior staff and others upon request.
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.
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� General fund revenues totaled $9,978,458 in fiscal 1996-97, an increase of 27% from FY 95-96. General
fund increases (decreases) over the last year are shown in the following tabulation:
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Revenue Source
' Taxes
Other Agencies
Licenses, Fees and Permits
' Fines, Forfeitures and Penalties
Interest Income
Other
Total
Amount
$6,811,321
$848,677
$1,686,810
$114,309
$467,466
$49,865
$9,978,448
Percent
of
Total
68.26%
8.51 %
16.90%
1.15%
4.68%
0.50%
100.00%
Increase
(Decrease)
from
1996
$978,931
$361,357
$598,552
$6,180
$189,716
($21,907)
$2,112,829
Percent
Increase
(Decrease)
from
1996
16.78%
74.15%
55.00%
5.72%
68.30%
(30.52)%
The increase in tax revenues was the result of strong construction, retail trade and communications &
utilities sectors of the local economy.
Other agencies revenue grew primarily because of increases in state shared revenues resulting from a
145% increase in the official population count of the Town.
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 modestly, due in part, to improved collection efforts.
The increase in interest incame reflects a continuing accumulation of reserves combined with sound cash
management.
General Fund expenditures for general government purposes totaled $8,008,171 in fiscal 1996-97, an
increase of 42% from FY 95-96. 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 plannmg services
Town attorney
' Police
Fire
� Magistrate Court
Public Works
Parks and Recreation
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Total
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$906,443
$728,965
$293,732
$2,521,364
$435,924
$215,041
$2,366,659
$540,043
$8,008,171
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Percent
of
Total
11.32%
9.10%
3.67%
31.48%
5.44%
2.69%
29.55%
6.75%
100.00%
Percent
Increase Increase
(Decrease) (Decrease)
from from
1996 1996
$119,848 15.24%
$244,103 50.34%
$58,494 24.87%
$729,874 40.74%
$326,693 299.08%
$1,548 .73%
$485,158 � 25.95%
$404,822 299.38%
$2,370,540
In general, the increase in expenditures is ariributable 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 ef�cient 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 department, combined with the construction of the Police Modular Facility and Phase I of
the Park Master Plan also contributed to the increased expenditure level. The increase in fire is the result
of a full twelve months of service as opposed to three months in the previous fiscal year. Despite the
increase in expenditures, the Town's fund balance increased by nearly 14%, indicative of sound fiscal
management.
FINANCIAL MANAGEMENT
Debt Administration
At June 30, 1997, 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 96-97, the outstanding
bond indebtedness totaled $560,000, of which $260,000 is attributable to the 1990 Series Bonds and
$300,000 is attributable to the 1992 Series Bonds.
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 fisca196-97, several leases were terminated. In addition, a
new lease was entered for the acquisition of the Police Modular Facility. 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
$467,466 in FY 96-97, net of bank analysis fees and inveshnent 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 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 was the Town's insurance carrier for worker's compensation during FY
96-97.
Various risk control techniques, including employee accident prevention training, are utilized to control
the Town's risk exposure.
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Fiduciary O�erations
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.
OTHER INFORMATION
Inde�endent Audit
The State of Arizona requires a bi-annual audit of the books of account, fmancial 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, 1997 audit. The auditor's report is included in the Financial Section of the report.
Acknowledgments
The preparation of the CAFR was made possible by dedication of the entire staff of the Finance
Departrnent and the Town's special consultant, Mr. Ron Kovar, CPA. Our sincere appreciation is
extended to all members of the Finance Deparhnent and especially 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.
Respect lly submitted,
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Hurvie E. Davis
Town Manager
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Roy Cuaron
Finance Director
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MARANA
�-/t�
SOWN OF MARANA
Eddie Honea
Sherry Millner
Michael Reuwsaat
Dave Atler
Town Engineer
Roy Cuaron
Finance Director
Jane Johnson
Human Resource Director
Russell Dillow
Town Magistrate
Daniel J. Hochuli
Town Attorney
TOWN COUNCIL
Ora Mae Harn
Mayor
Bobby Sutton, Jr.
Vice Mayor
SE1vIOR STAFF
Hurvie E. Davis
Town Manager
Michael C. Hein
Assistant Town Manager
"Come Grow With Us"
Herbert Kai
Roxanne Ziegler
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Dave Smith
Police Chief
Jerry Flannery
Planning & Zoning Director
Joel Svoboda
Chief Building Official
Sandra Groseclose
Town Clerk
Brad DeSpain
Water Director
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Cli{ton
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Certified Pubiic Accountants & Consultants
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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, 1997. These general purpose financial statements are the
responsibility of the Town's management. Our responsibility is to express an opinion on these general
purpose financial statements based on our audit.
, We conducted our audit in accordance with generally accepted auditing standards and the
standards applicable to financial audits contained in Government Auc�iting S'tandards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform
' the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
' accounting principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
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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, 1997, and the results of
its operations and cash flows of its proprietary fund types for the year then ended in confornuty with
�enerally 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 in all material respects, in relation to the
general purpose financial statements taken as a whole.
The information included in the introductory and statistical sections is presented for purposes of
additional analysis and is not a required part of the general purpose financial statements of The Town
of Marana, Arizona. Such additional information has not been subjected to the auditing procedures
applied in our audit of the general purpose fina.ncial statements and, accordingly, we express no opinion
on such information.
Members Of
� � ♦ �
INTERNATIONAL
1 AMERICAN INSI1TUfE
. OF CERTIPIED PUBLIC
ARIZONA COLORADO ILLINOIS INDIANA IOWA MARYLAND MISSOURI OHIO TEXAS VIRGINIA WISCONSIN ACCOUNTAMS
' Ma r d T'own Council
Honorable yo an
Town of Marana
'
In accordance with Government A7rditing Standards, we have also issued a report dated
' December 16, 1997 on our consideration of the Authority's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts,
and grants.
,
' Tucson, Arizona
December 16, 1997
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TOWN OF MARANA, ARIZONA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
ALL COVERNMENTAL FUND TYPES - DCHIBIT 2
Year Ended June 30, 1997
General
REVENUES
Taxes
Other agencies
Licenses, fees and permits
Fnes, forfeitures and
penalties
Interest
Other
Totalrevenues
OTHER FINANCIAL SOURCES
Lease purchase proceeds
Total revenues and other financial sources
EXPENDITURES
Current operations
General government
Development and planning services
Town attorney
Police
Fire
Magistrate court
Public works
Community development
Parks and recreation
Total expenditures
Excess ofrevenues
overexpenditures
FUND BALANCES, BEGINNING
Residual equity transfers out
FUND BALANCES. ENDING
$ 6,611,321
848,677
1,686,810
114,319
467,466
49.865
9,978,458
202,172
10,180,630
906,443
728,965
293,732
2,521,364
435,924
215,041
2,366,659
540, 043
8, 008,171
2,172,459
6,588,086
(1,058,950)
$ 7,701,595
Totais
Special (Memorandum Oniy)
Revenue 1997 1996
$ - $ 6,811,321 $ 5,832,390
1,123,140 1,971,817 1,179,514
- 1,686,810 1,088.258
- 114,319 108,129
777 468,243 280,746
- 49,865 72,172
1,123,917 11,102,375 8,561,209
- 202,172 -
1,123,917 11,304,547 8,561,209
25,091 931,534 813,544
- 728,965 490,803
- 293,732 235,238
254,148 2,775,512 1,998,715
- 435,924 109,231
- 215,041 213,493
472,757 2,839,416 2,133,659
201,041 201,041 . 97,249
130,113 670,156 221,697
1,083,150 9,091,321 6,313,629
40,767 2,213,226 2,247,580
16,056 6,604,142 4,499,483
(38,907) (1,097.85� (142.921)
$ 17,916 $ 7,719,511 $ 6,604,142
See notes to combined financial statements.
4
TOWN OF MARANA, ARIZONA
COMBINEO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES - EXHIBIT 9
Year Ended June So, 199%
�J
REVENUES
Taxes
Other agencies
Licenses, fees and permits
Fnes, forfeitures and
penaBies
interest
Miscellaneous
Total revenues
OTHER FINANCIAL SOURCES
Lease purchase proceeds
Total revenues and other financial sources
EXPENDITURES
Current operations
General government
Development and planning services
Town attomey
Police
Fire
Magistrate court
Pubiic works
Community development
Parks and recreation
Totai expenditures
Excess of revenues
over expenditures
FUND BALANCES, BEGINNING
Residual equity transfers out
FUND BALANCES, ENDING
General Special Revenue
Actual Budget (a) Variance Actual Budget (a) Variance
$ 6,811,321 $ 6,285,640 $ 525,681
saa,sn as�.62i (�2,saa)
1,686,810 1,820,000 (133,190)
114,319 175,000 (60,681)
467,466 225,000 242,466
49,865 2,811,166 (2,761,301)
9,978,458 12,178,427 (2,199.969)
$ - $ - $ -
1,123,140 1,244.367 (121.227)
777 - 777
1,123,917 1,244,367 (120,450)
202,172 - 202,172
10,180,630 12,178,427 (1,997,797}
906,443 1,918,470 (1,012,027)
728,965 840,509 (111,544)
293,732 262,000 31,732
2,521,364 2.220,314 301,050
435,924 450,000 (14,076)
215,041 351,424 (136,383)
2,366,659 5,754,925 (3,388,266)
540,043 248,316 291,727
8,008,171 12,045,958 (4,037,787)
2,172,459 132,469 2,039,990
6,588,086 - 6,588,086
(1,058,950) - (1,058,950)
$ 7,701,595 $ 132.469 $ 7,569,126
1,123,917 1,244,367 (120,450)
25,091 23,400 1,691
254,148 262,021 (7,873)
472,757 440,387 32,370
201,041 138,000 63,041
130,113 154,000 (23,887)
1,083,150 1,017,808 65,342
40,767 226,559 (185,792)
16,056 - 76,056
(38,907) - (38,907)
$ 17,916 $ 226,559 $ (208,643)
(a) The Town's budget included an additional $1,700,000 for revenues and $2,059,028 for expenditures for water enterprise activities
that are not included in this statement because these activities are proprietary in nature.
See notes to combined financisl statements.
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TOWN OF MARANA, ARIZONA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES - EXIi1BIT 9
Year Ended June 90. 1997
' Excess of revenues
over expenditures
FUND BALANCES, BEGINNING
� Residual equity transfers out
FUND BALANCES, ENDING
REVENUES
Taxes
Other agencie �
Licenses, fees and permits
Fines, forfeitures and
penafties
Interest
Miscellaneous
Total revenues
OTHER FINANCIAL SOURCES
Lease purchase proceeds
Total revenues and other financial sources
EXPENDITURES
Current operations
General government
Development and planning services
Town attomey
Police
Fire
Magistrate court
Public works
Community development
Parks and recreation
Total expenditures
General Special Revenue
Actual Budget (a) Variance Actual Budget (a) Vanance
$ 6,811,321 $ 6,285,640 $ 525,681
sas,sn sg�,s2i (�"�)
1,686,810 1,820,000 (133,190)
iia ,319 i�s,aoo (go,ssi)
467,466 225,000 242,466
as,sss 2,si�,i6s (2,�s�,soi)
9,978,458 12,178,427 (2,199,969)
$ - $ - $ -
1,123,140 1,244,367 (121,22�
�n - ���
�,123,g17 1,244,367 (120,450)
202,172 - 202,172
10,180,630 12,178,427 (1,997,797)
906,443 1,918,470 (1,012,02�
728,965 840,509 (111,544)
293,732 262,000 31,732
2,521,364 2,220,314 301,050
435,924 450,000 (14,076)
215,041 351,424 (136,383)
2,366,659 5,754,925 (3,388,266)
540,043 248,316 291,727
8,008,171 12,045,958 (4,037,787)
1,123,917 1,244,367 (120,450)
25,091 23,400 1,691
zsa,�as 2s2,o2i (�,s�s)
472,757 440,387 32,370
201,041 138,000 63,041
130,113 154,000 (23,887}
1,083,150 1,017,808 65,342
40,767 226,559 (185,792)
16,056 - 16,056
(38,907) - (38.907)
$ 17,916 $ 226,559 $ (208,643)
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2,172,459 132,469 2,039,990
6,588,086 - 6,588,086
(1,058,950) - (1,058,950)
$ 7,701,595 $ 132,469 $ 7,569126
(a) The Town's budget included an additional $1,700,000 for revenues and $2,059,028 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
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TOWN OF MARANA, ARIZONA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
DEFICIT — ALL PROPRIETARY FUND TYPES — EXHIBIT 4
Year Ended June 30, 1997
OPERATING REVENUES
Current use charges
Other
Total operating revenues
OPERATING EXPENSES
Material, supplies, and
other expenses
Depreciation expense
Total operating
expenses
OPERATING LOSS
NONOPERATING REVENUES
(EXPENSES)
Interest ircome
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 1997 1996
$ 109,008 $ 109,008 $ 81,479
4,210 4,210 3,951
113,218 113,218 85,430
142,538
29,914
172,452
(59,234}
142,538 66,943
29,914 16,659
172,452 83,602
(59,234) 1,828
675 675 752
(21,338) (21,338) (22,103)
(1,692) (1,692) ' (1,679)
(22,355) (22,355) (23,030)
(81,589) (81,589) (21,202)
(88,512) (88,512) (67,310)
(170,101) (170,101) (88,512)
272,773
1,097,857
1,370,630
$ 1,200,529
272,773 129,852
1,097,857 142,921
1,370,630 272,773
$ 1,200,529 $ 184,261
See notes to combined financiat statements.
6
TOWN OF MARANA, ARIZONA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES — DCHIBIT 5
Year Ended June 30, 1997
Proprietary
Fund Types
Water
Totais
(Memorandum Only)
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
Adjustments to reconcile net toss to net
cash provided by (used in) operating activities:
Nonoperating expenses associated
with trustee/fiscal agents
Depreciation
Changes in operating assets and liabilities:
Increase in accounts receivable
Increase (decrease) in accounts payable and accrued expenses
Net cash provided by (used in) operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
$ (81,589)
22,870
29,914
$ (81,589) $ (21.202)
Increase in due to other funds
Residual equity transfers from general fund
Residual equity transfers from special revenue funds
Deposit for fixed asset acquisition
Principal paid on capital lease
Purchase of fixed assets
Payments to Vustee/fiscal agents for debt service
Net cash provided by (used in) capital and related financing activities
NET DECREASE IN CASH
CASH, BEGINNING OF YEAR
CASH, END OF YEAR (a)
22,870 23,581
29,914 16,659
(13,379) (13,379) (2,55�
(16.29� (16,29� 238
(58,481) (58,481) 16.719
2, 286 2, 286 16,953
1,058,950 1,058,950 73,312
38,907 38,907 69,609
(600,000) (600,000) —
(2,421) (2,421) —
(406,524) (406,524) (142,921)
(32.717) (32,71 � (33,688)
58,481 58,481 (16,735)
_ _ �� 6 �
— 16
$ — $ . — $ —
, SUPPLEMEN'� AL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCINC ACTIVITIES
During fiscal 1997, the Town financed the purchase of a vehicle with the assumption of a capital lease obligation of $26,541.
1 During fiscal 1997, the Town wroteoff $8,135 in organization costs and $20,272 in construction work — in — progress that
were financed with $28,407 in accounts payable. The decision to writeoff these balances was the resuit of the vendors not
, pursuing collection since there incurrance and inception of the water fund in fiscal 1990.
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(a)Cash on the balance sheet consists of cash the Town can access and cash on deposit with trustee/fiscal agents. Cash flows
from cash with trustee/fiscal agents are not presented above because these activities represent noncash transactions.
(Continued)
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TOWN OF MARANA, ARIZONA
COMBINED STATEMENT OF CASH FLOWS
� ALL PROPRIETARY FUND TYPES — DCHIBIT 5
Year Ended June 30, 1997
Proprietary Totals
, Fund Types (Memorandum Only)
Water 1997 1996
SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCINC ACTIVITIES (Continued)
' Cash
Cash with trustee�scat agents
' Total
CASH FLOWS WITH TRUSTEE/FISCAL AGENTS FROM INVESTING AND
' OTHER ACTIVITIES
Payments from water fund for debt service
Interest income
' Decrease in investments
Net cash with trustee/fiscal agents provided by
investing and other activities
, CASH FLOWS WITH TRUSTEE/FISCAL AGENTS FROM CAPITAL AND
RELATED FINANCING AND OTHER ACTIVITIES
Interest and other obligations paid
' Redemption of bonds payable
Net cash with trustee/fiscal agents used in
financing and other activities
' NET INCREASE lN CASH WITH TRUSTEE/FISCAL AGENTS
CASH WITH TRUSTEE/FISCAL AGENTS, BEGINNING OF YEAR
, CASH WITH TRUSTEE/FISCAL AGENTS, END OF YEAR
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$ —
21,983
$ 21,983
$ 32,717
542
21,071
54,330 54,330 34,414
(23,412)
(10,000)
(23,412) (24,159)
(10,000) (10,000)
(33,412)
20,918
1,065
� 21,983
$ — $ —
21,983 1,065
$ 21,983 $ 1,065
$ 32,717 $ 33,688
�42 578
21,071 148
(33,412) (34,159)
20,918 255
- 1,065 810
$ 21,983 $ 1,065
' See notes to combined financial statements.
8
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
A. General Statement
The Town of Marana (the Town) was incorporated on March 21, 1977, under the
provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town
operates under 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, taacing authority, and the
ability to significantly influence operations and accountability for fiscal matters. The
Town provides a full range of services including general government, development and
planning, legal, public safety (police and fire), public works, and parks services. The
accounting policies of the Town conform to generally accepted accounting principles
(GAAP) as applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing accounting and financial
reporting principles. The more significant accounting policies of the Town are described
below.
B. �nancial Re�orting Enti
, The Town's combined financial statements include the accounts of all Town operations.
The criteria for including organizations as component units within the Town's reporting
entity, as set forth in Section 2100 of GASB's Codification of C'Tovernmental�Accountin�
, and Financial Re orting Standards, include whether:
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• 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 tlie 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�ertv Comoration
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.
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
' 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 for with a separate set of self-balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures. Government resources are allocated
' to and accounted for in individual funds based upon the purposes for which they are to be
spent and the means by which spending activities are controlled. The various funds are
, grouped, in the financial statements in this report, into gen.eric fund types and broad fund
categories as follows:
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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.
' •� ,r .�� �-
, 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.
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10
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
C. Basis of Presentation (Continued)
,
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Account groups aze used to establish accounting control and accountability for the
Town's general fixed assets and general long-term debt obligations. The two account
groups are not "funds". They are concerned only with the measurement of financial
position. They are not involved with measurement of results of operations. The
following are the two account groups:
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.
D. Measurement FocusBasis of Accounting �
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. The 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 �nd. 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.
11
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(C:ontinued):
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D. Measurement FocusBasis of Accountin� (Continued)
Grant revenues are susceptible to accrual if they are earned as expenditures occur. Taxes
collected (which include state shared sales taxes, Town sales tax, and county shared auto
lieu t�es) 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.
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E. Budget� Control
Tne voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation
that is applicable to all local governments. This limitation, based on expenditures of the
1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in
population and inflation. Certain expenditures are held to be excludable. The limitation
is set by the State Economic Estimates Commission prior to April 1 of each year for the
following fiscal year. As allowed, the voters of the Town of Marana, on 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 limitation each year with no expenditures held to
be excludable. Therefore, the annual expenditure limitation equals the adopted budget.
The Town establishes its fiscal year as the twelve-month period beginning July 1. The
departments submit to the Town manager a budget of estimated expenditures for the
ensuing fiscal year. The Town manager and each department head meet to discuss
mutually acceptable changes for the estimated expenditures for that department after
which the Town manager subsequently submits a budget of estimated expenditures and
revenues to the Town Council.
Upon receipt of the budget estimates, the Town Council will hold a public meeting to
obtain taxpayer comments. Concurrently, a copy of the budget estimates is published in a
local newspaper. The Town Council is prevented from legally enacting the budget
through passage of a resolution until 15 days have passed after the date of the public
meeting. Prior to July l, the budget is legally enacted.
12
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
E. Budgetary 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 aze 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, HOME Program, and Arizona
Criminal Justice Grants.
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���
No reservations of fund balances have been established by the Mayor and Council at the
end of fiscal 1997, except amounts reserved for restricted assets.
:��� :� �
For the enterprise/water fund, bond issuance costs are capitalized in the period in which
the bonds are issued and are amortized on a straight line basis over 20 years. For all other
funds, bond issuance costs are recognized as expenditures in the period in which the
b�nds are issued.
13
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NOTE 1 -
(Continued):
I. Investments
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All investments, are stated at cost.
J. Restricted Assets
' The trust indentures executed for all of the bond series issued require all cash and
investments for each bond series to be held on deposit by the trustee/fiscal agents. These
assets are restricted for payment of interest and trustee fees associated with the bond
� issues, retirement of principal balances, and purchasing the Town Hall, the Honea Water
Company, and improvements to water fund fixed assets.
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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
T�wn's ability to conduct police investigations. �
K. Prepaid Ex�enditures
0
Prepaid expenditures are for payments made by the Town in the current year for liability
insurance coverages extending into the subsequent year.
l�.�_�11T1��, _ �_ � � _ �
' 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.
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M. Inventories
The Town uses the purchase method of expending inventories. There were no significant
inventories on hand at June 30, 1997.
14
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
l� OTE 1 -
(Continued):
N. Fixed Assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C'TPneral Fixed Assets Account Gro�n
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
ir_ the Governmental Fund Type operations.
Pro�rietary Fund Tvne
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:
Estimated
i J��ful L.ives ar 1
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Pump stations, distribution systems,
equipment and improvements 20
Organization costs 40
Machinery, equipment, and assets under capital lease 5
O. Ca�italized Lease Obli�ations
The amount capitalized under capital leases is the lesser of the present value of the
minimum lease payments or the fair value of the leased properties at the beginning of the
respective lease terms. When a governmental fund acquires a fixed asset through a
capital lease agreement, the acquisition is reflected as an expenditure and other financing
source, and simultaneously the acquired asset and related liability are recorded in the
General Fixed Assets Account Group and in the General Long-Term Debt Account
Group. Capitalized leases of the proprietary fund are accounted for entirely within the
proprietary fund by capitalizing the asset acquired and recording the lease obligation as a
liability.
15
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
� NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
I' � ��. � • �_ ' � :_� •_�
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, 1997, will
most likel�- not be paid within the current accounting cycle. Rather, in fiscal 1998 the
Town will probably pay that year's accrual without utilizing amounts accrued from prior
years.
/ � �. ��� _�_! _.1_. _ �1 : •�l."1 ��it-�
Transactions that would be treated as revenue, expenditures, or expenses if they involved
organizations external to the governmental unit are accounted for as revenue,
expenditures, or expenses in the funds involved. Transactions which constitute
reimbursements of a fund for expenditures or expenses initially made from that fund
which are properly applicable to another fund are recorded as expenditures or expenses in
the 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.
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Comparative total data for the prior year is presented in the financial statements in order
to provide an understanding of changes in the Town's financial position and operations.
However, presentation of prior year totals by fund type have not been presented in the
statements, since their inclusion would make the statements unduly complex and difficult
to read.
Total columns on the combined financial statements are captioned "memorandum only"
to indicate that they are presented only t� 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.
16
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
� NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
' S. Seized Propertv
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
f determined. Consequently, no such assets are recorded on these financial statements.
NOTE 2- DEPOSITS AND INVESTMENTS
A. De�osits
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 $1,125 at
June 30, 1997.
A_t year end, the book value of the Town's bank demand accounts was $77,924 and the
bank balance was $807,784. The difference of $729,860 represents deposits in transit and
outstanding checks at 3une 30, 1997. This total bank balance was covered by federal
depository insurance or collateral held by the Town's custodial bank in the Tow�n'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
$44,249.
B. Investments
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Statutes authorize the Town to invest public monies in certificates of deposit, interest
bearing savings accounts, and repurchase agreements provided eligible depositories meet
interest rate, capital structure, and collateral requirements. Other authorized investments
include obligations of the U.S. Government and its agencies, of Arizona utility and
municipal improvement districts, and the Arizona State Treasurer's Local Government
Ir.vestment Pool. The Town's investments as of June 30, 1997 are:
State Treasurer's Local Government Investment Pool
Money Market Funds
Total Investments
Carrying Market
Amount Value
$7,171,656 $7,171,656
12�75 12
�7.184a31 $7.184,131
' 17
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
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 and money market funds are not categorized, in accordance with GASB No.
3, because they are not evidenced by securities that exist in physical or book entry form.
A reconciliation of E�ibit 1 to Note 2 is as follows:
Exhibit 1
Investments
Restricted assets: Investments
Total
$7,171,056
12, 475
�7,184,131
NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION
The following is a summary of the changes in general fixed assets for fiscal 1997:
Balance Balance
July 1, 1996 Additions �eletions June 30, 1997
Land
Buildings
Assets under capital lease
Machinery, equipment, and
other assets
Marana Park
Leasehold improvements
Total
$ 73,310 $ - $ - $ 73,310
322,258 122,361 - 444,619
722,701 202,172 (111,893) 812,980
899,739 506,574 (97,931) 1,308,382
189,656 260,689 - 450,345
199,377 - - 199,377
$2,407,041 �1,091�Z96 $(209,g241 �3,282,013
18
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION
(Continued)
A summary of water fund property, plant, and equipment at June 30, 1997 is as follows:
Land
Water rights
Improvements, including wells and tanks
l�iachinery, equipment, and other assets
Asset under capital lease
Bond issuance costs
Organization costs
Total
Less accumulated depreciation and amortization
F�ed assets, net
NOTE 4 - INTERFUND TRANSACTIONS
A. Amounts due to/from other funds at .Tnn ,�7� are as follows:
The amount due to the General Fund is due from:
Special Revenue:
1994 Community Development Block Grant
1996 Community Development Block Grant
HOME Program
COPS Grant
GITEM
HIDTA
MANTIS
Enterprise:
Water
TOtal
The amount due to Special Revenue Funds is as follows:
The amount due to EPA Capital Improvement Program
is due from the General Fund
The amount due to RICO is due from the General Fund
The amount due to Highway User Revenue is due from
the General Fund
$ 14,720
50,000
786,662
38,345
26,541
27,268
39,3gg
982,924
� 109,4421
�$Z��
$ 1 �,096
8,821
24.446
11,841
3,413
8 924
4,710
. .
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', 1 111
,��
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
: _C' � . : ! _ � _ : �_. _' _.� �
The amount transferred to the Enterprise/Water Fund was transferred from:
General Fund $1,058,950
Special Revenue Funds:
1995 Community Development Block Grant 38,907
Total $1,09Z,857
NOTE 5 - CAPITAL LEASES
The Town has previously entered into sPVeral long-term capital leases involving the
acquisition of equipment for the Enterprise/Water Fund and General Town purposes;
these commitments are expected to be funded by water user fees and 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, 1997:
Fiscal Year
' Ending June 30
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1998
1999
2000
2001
Total minimum lease payments
Less amount representing interest
Present value of net minimum lease payments
Water
Fund
$ 9,684
9,684
7,263
26,631
( 2,5111
�24,120
General Long-
Term Debt
$1�9,983
106,153
73,029
49,261
388,426
�40,267)
$34�,159
NOTE 6- LONG - TERM DEBT
During 1990, the water fund issued revenue bonds through the Town of Marana
l�Iunicipal 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 are due July l, 1997, through July 1, 2009, in amounts ranging from
$10,000 to $30,000 annually. The 1990 series revenue bonds aze callable on or after July
1, 1999, at 100% of the principal.
20
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
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, 1997:
Fiscal Year
Ending June 30,
1998 $ 35,563
1999 34,385
2000 33,178
2001 31,963
2002 35,740
Thereafter 240,994
Total 411,823
Less amount representing interest �-��)
Principal �260,000
A reconciliation of long-term debt for the Water Fund at June 30, 1997 is as follows:
Revenue Bonds
Capital Lease
�'otal
The following is a summary of changes in general long-term debt activity for fiscal 1997:
1990 Series
Bonds
$260,000
24 12
4 2
Balances Balances
at July 1, June 30,
1996 Additions Reductions 1997
Revenue Bonds (A) $305,000
Compensated absences (B) 112,214
Capital leases 356
Total $773,303
$ -
31,520
202 172
, 233,692
$ (5,000) $300,000
- 143,734
�210,102) 348,159
�(21 �,102) $791,�93
A. Revenue Bonds
The 1992 Series Revenue Bonds are callable as follows:
Redemption Dates
7-1-2001 and 1-1-2002
7-1-2002 and 1-1-2003
7-1-2003 and thereafter
21
Redemption Price (As
a Percent of Princivall
101.0°!0
100.5
100.0
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
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NOTE 6- LONG - TERM DEBT (Continued)
A. �evenue Bonds (Continued)
Annual debt service requirements to maturity for these revenue bonds are as follows:
Fiscal Year
Ending June 3 Q,
1998
1999
2000
2001
2002
Thereafter
Total
Less amount representing interest
Principal
B. �omnensated Absences
1992 Series
Bonds
$ 28,228
27,877
27,520
27,155
26,785
474,�3 5
611,800
1311,800)
'� 11 111
This consists of the long-term portion of a.ccrued vacation and compensatory time, with
an increase of $31.520 for fiscal 1997.
NOTE 7- DEFERRED COMPENSATION PLAN
Tne 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.
During fiscal 1997, the Town amended the Plan in accordance with the provisions of IRC
Section 457 (g). IRC Section (g) requires that the assets and income thereon be held in
trust for the exclusive benefit of participants and beneficiaries. Accordingly the assets
and liability previously reported in an agency fund are no longer assets of the Town and
these amounts have been removed from the Town's financial statements.
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TOWN OF MARANA, ARIZOl\A
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
NOTE 8- EMPLOYEE RETIREMENT SYSTEMS
A. Ari�ona Public Safety Retirement Svstem
All of the Town's full-time police officers are covered by the Marana Marshal's Arizona
Public Safety Personnel Retirement System, which is an agent /multiple-employer
administered by the fund manager of the Arizona Public Safety Personnel Retirement
System, defined benefit public employee retirement system (PERS). Authority to
establish and amend the benefit provisions of this pension plan is established by Arizona
State statute. The State of Arizona Public Safety Personnel Retirement System issues a
publicly available financial report that includes financial statements and required
supplemental information for the Marana Marshal's plan. This report may be obtained by
writing to the Arizona Public Safety Personnel Retirerrzent System 1020 E. Missouri
Pnoenix, Arizona 85014.
The pension plan provides pension benefits, deferred allov��ances, 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 SO yeaxs, 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 1 � vears service, or completion of 20 years service with the Town. Benefits vest after
10 years of credited service. Police officers who retire with ?� or more years of credited
service are entitled to monthly pension payments for the remainder of their lives equal to
' �0% of average monthly compensation for the first 20 years of credited service with the
Town, plus 2/2% of average monthly ccmpensation for each year of credited service
above 20 years with the Town. Police officers who retire with 20 years of credited
' service with the Town, plus 2% of average monthly compensation for each year of
credited service between 20 and 25 years with the Town. Police officers who retire with
, less than 20 years of credited service with the Town are entitled to monthly pension
payments for the remainder of their lives equal to the average monthly compensation for
the entire service period reduced at a rate of 4% a year for each service year below 20
' years of service. The maximum monthly pension payment cannot exceed 80% of the
average monthly compensation.
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Pension provisions include deferred allowances whereby a police officer may terminate
his employment with the Town after accumulating 10 or more years credited service.
Pension benefits are then equal to twice the amount of pension benefits based on the
police officer's accumulated contributions. If the police officer does not withdraw his
accumulated contributions, the police officer is entitled to these pension benefits upon
reaching the age of 62.
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
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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 yeazs, out of the last 10 yeazs 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 $62.50 per month plus an amount
up to $47.50 per month for dependent coverage, if any.
The Town's current year payroll for eligible police officers amounted to approximately
$1,275,000.
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 aze being amortized as a level percent of payroll over an open
period of 20 years starting July 1, 1997. During 1997, the Town was required to
contribute 4.94% of its police o�cers' covered payroll to the plan.
24
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
NOTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued)
A. �rizona Public Safet� Retirement System (Continued)
The contribution requirements of plan members are established and maybe amended by
Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding
policy provides for actuarially determined employer contributions at rates which will
provide assets sufficient to pay benefits when due. This funding policy/objective is stated
in the Arizona State statutes.
Total contributions made during fiscal 1997 were $160,499, of which $62,948 was made
' by the Town and $97,551 was made by police officers. The pension contributions
represent funding for normal cost and the amortization of the unfunded actuarial accrued
liability.
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A variety of significant actuarial assumptions are used as of June 30, 1997, to determine
the standardized measure of the entry age actuarial accrued liability and these
assumptions are sumrnarized 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 aruivally)
salary increases as a result of inflation.
• Future pension payments reflect an assumption of additional projected salary
increases ranging from 0.0% to 3.0% per year, depending on age, attributable to
seniority/merit.
The actuarial value of the assets was determined using techniques that smooth the effects
of short-term volatility in the market value of investments over a four year period.
The standardized measure of the unfunded actuarial accrued liability as of June 30, 1997
is as follows:
Active members $ 1,645,678
Retired members and beneficiaries currently receiving benefits 216,431
Vested terminated members not yet receiving benefits -0-
Total actuarial accrued liability 1,862,109
Actuarial value of assets 1,956�05
Unfunded actuarial accrued liability
F� • C • 1
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TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
3une 30,1997
1�OTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued)
A. Arizona Public Safetv Retirement System (Continued)
Re�uired Su��lemental Information
- � � ---- 1 — _ _► � _ � - � � � � � - - � _'3
Fiscal Annual
Year Ended Required
June 30. Contribution
Percent
C;ontributed
1992 $ 18,194 100.0%
1993 18,629 100.0%
1994 34,052 100.0%
1995 50,947 100.0%
1996 58,775 100.0%
1997 62,948 100.0%
SCHEDULE OF FUNDING PRO GRESS
0
�2)
(1) Entry Age (3) (4)
Valuation Actuarial Actuarial Percent Unfunded
Date Value of Accrued Funded AAL
June 30 Assets Liabili AAL) (11/(21 (21__,
1996 $ 1,462,763 $1,260,459 116.1% $(202,304)
1997 1,956,059 1,862,109 ]05.0 ( 93,950)
Three Year Trend Information
Fiscal
Year Ended
June 30,
1995
1996
1997
Annual
Pension
Cost �APC1
$ 50,947
58,775
62,948
(6)
Unfunded
AAL as a
(5) Percentage
Annual of Covered
Covered Payroll
Pa,yroll f41/(51
$ 965,1 ] 9 -%
l ,275, l 74 %
Percent
C'ontributed
100.0%
100.0
100.0
Net Pension
Obligation
$0
0
0
26
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
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I '
NOTE 8- EMPLOYEE RETIREMENT SYSTEMS (Continued)
A. Ari�ona Public Safetv Retirement System (Continued)
No changes in actuarial assumptions or benefit provisions that would significantly affect
the valuation of the unfunded actuarial accrued liabilities occurred during fiscal 1997.
During fiscal 1997 and as of June 30, 1997, the Marana Marshal's Arizona PERS held no
securities issued by the Town or other related parties.
C �: i_ �►/_, ,�: :. .��.� ', �
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.
Town contributions for, and interest forfeited by, employees who leave employment
before five years of service are used to reduce the Town's current-period contribution
requirement.
The Town's total payroll in fiscal year 1997 was approximately $2,983,000. The Town's
contributions were calculated using the earnings amount of approximately $1,708,000.
For fiscal 1997, the covered employees made the required 4% contribution, amounting to
$68,314, with the Town making a smaller contribution due to the application of
forfeitures, amounting to $66,236, for a total of $134,550.
C. Postem�loyment Benefits
The Town offers no postemployment benefits to employees other than the previously
discussed retirement plans.
27
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
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, 1997, the Town paid $201,423 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 1997, expenditures exceeded authorized appropriations in the following
individual funds:
� 1992 Community Development Block Grant
1993 Community Development Block Grant
Home Program
' COPS Grant
HIDTA
, MANTIS
Arizona Criminal Justice Grants
Highway User Revenue
'
,
'
�I
'
'
�
$ 4,333
3,423
122,474
1,234
4,971
4,039
39,061
33,4�0
The excess expenditures for the 1992 and 1993 Community Development Block Grants
were due to the expectation at the time of budget adoption that these grants would be
completed in fiscal year 1996. The excess expenditures for the HOME Program and the
Arizona Criminal Justice Grant 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 four speciai revenue funds.
The excess expenditures for all of these funds were covered by grant revenues.
At June 30, 1997, there were no individual funds with a deficit fund balance.
, 28
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1997
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, 1997, it is the opinion of Town management, based
on the advice of the Town Attorney and oirtside 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 for fiscal 1998 is $1,129.
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.
' 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 to pay its share of real estate
, taxes, 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
' charges and management fees by the Iandlord 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. Subsequent to year end, the first three-
' year option was exercised on the lease due to expire November 1997. Starting December
1997, the monthly base rent for this lease was $2,836 per month.
These leases provide for payments of minimum annual rentals as follows, excluding real
estate taxes, common area charges, management fees, and sales taaces:
Years Ending
June 30,
1998
1999
2000
2001
Total
$ 52,554
54,234
39,083
14,180
'. . � 1
�
'
�J
�
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1997
NOTE 11 - COMMITMENTS AND CONTINGENCIES (Continued)
, Minimum annual rentals above includes the renewal option exercised subsequent to year
end but excludes annual rental under the remaining renewal options as of June 30, 1997.
Rent expense under the above leases for fiscal 1997 aggregated $60,056.
NOTE 12 - RELATED PARTY TRANSACTIONS
During fiscal 1997, the Town contributed $50,000 to a local non-profit health care
agency. The Town's mayor is the executive director of this health care agency. Before
making the contribution, the Town Council discussed and approved the expenditure. The
mayor did not participate in the presentation, discussion, or. approval of this expenditure.
NOTE 13 - SUBSEQUENT EVENTS
On September 22, 1997, the Water Fund acquired an existing water company within the
Town limits at a cost of $600,000.
On October 1, 1997, the Town issued revenue bonds through the Town of Marana
Municipal Property Corporation in the amount of $8,175,000 for the purposes of
refunding the 1990 and 1992 revenue bond issues, reimbursing the General Fund for
transfers made to the Water Fund for the purpose of completing two transactions for the
acquisitions of existing water companies, to make required improvements to the Water
Fund's water system, to finance the purchase of a new building for Public Works, to
purchase the land for a new Town Hall site, and to finance the cost of some major road
projects. These 1997 bonds, secured by all General Fund revenues, consist of a series of
issues with fixed interest rates ranging from 3.85% to 5.0%, depending upon the maturity
date of the various issues, with final maturity occurring in fiscal 2023.
30
COMBINING
�
INDIVIDUAL
F UND AND
AC C OUl\TT
GRO UP
STATEl��IENTS
�
1
1
1
II
1
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, 1997 and 1996
' 1997
ASSETS
, Cash $ 76,301
Investm ents 7,171, 656
Receivables:
' Taxes 766,890
Other 43,557
Prepaid expenditures 43,000
Due from other funds 96,490
, Restricted assets:
Cash 6,997
Investments 12,174
, TOTAL ASSLTS $ 8,217,065
, LIABILITIES AND FUND EOUITY
LIABIUTIES
' Accounts payable and accrued expenses $ 380,161
Due to other funds 70,844
Deferred revenue 64,465
, Totalliabilities 515,470
' FUND EGlUITY
Reserved for restricted assets 7,388
Unreserved fund balances 7,694,207
, Total fund equity 7,701,595
, TOTAL LIABILITIES AND FUND E�UITY $ 8,217,065
1996
$ 13,363
6,288,089
574, 856
43, 304
55, 040
128,041
202
17,497
$ 7,120,392
$ 331,837
144, 068
56,401
532, 306
5,754
6, 582, 332
6,588,086
$ 7,120.392
31
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, 1997
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 c�urtfines
Interest
Miscellaneous
Recovered expenditures
Other
Annexation revenue
Balance available from prior years
Total miscellaneous
Total revenues
OTHER FINANCIAL SOURCES
Lease purchase proceeds
Total revenues and other financial
sources
EXPENDITU4ES
General government
Other general government
Contractual services
Special programs
Other
Contingency
Capital outlay
Debt seroice
Total other general government
Variance -
Favorable
Actual Budget (Unfavorable)
$ 6,811,321 $ 6,285,640 $ 525,681
374,722 390,607 (15,885)
401,745 411,014 (9,269)
72,210 60,000 12,210
848,677 861,621 (12,944)
1,062,525 1,400,000 (337,475)
566,736 400,000 166,736
28,254 - 28,254
16,775 15,000 1,775
12,520 5,000 7,520
1,686,810 1,820,000 (133,190)
114,319 175,000 (60,681)
467,466 225,000 242,466
31,948 - 31,948
17,917 75,000 (57,083)
- 281,471 (281,471)
- 2,454,695 (2,454,695)
49,865 2,811,166 (2,761,301)
9,978,458 12,178,427 (2,199,969)
202,172 - 202,172
10,180,630 12,178,427 (1,997,797)
168, 060 170,000 1, 940
79,448 43,000 (36,448)
122,983 288,000 165,017
- 209,750 209,750
- 235,000 235,000
28,565 25,712 (2,853)
399,056 971,462 572,406
32
0
'
�
�
��
,
�
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, 1997
EXPENDITURES (continued)
General government (continued)
Mayor and council
Contractual services
Commodities
Other
Contingency
Capital outlay
Debt service
Totat mayor and council
Human resources
Personal services
Contractual services
Special programs
Other
Contingency
Capital outlay
Total human resources
Administration
Personal services
Contractual services
Commodities
Other
Contingency
Capital outlay
Debt service
Total administration
Total general government
Development and planning services
Building services
Personal services
Contractual services
Commodities
Other
Contingency
Capital outlay
Debt service
Total building services
Variance -
Favorable
Actual Budget (Unfavorable)
$ 422 $ 1,920 $ 1,498
4,707 6,400 1,693
11,341 16,805 5,464
- 2,000 2,000
1,885 - (1,885)
- 5,628 5,628
18,355 32,753 14,398
63,961 64,558 597
1,208 4,100 2,892
4,519 335,597 331,078
28,852 25,400 (3,452)
- 10,000 10,000
6,111 16,000 9,889
104,651 455,655 351,004
298,628 350,366 51,738
15,187 27,200 t2,013
21,738 15,500 (6,238)
20,182 21,550 1,368
- 2,000 2,000
22,099 22,700 601
6,547 19,284 12,737
384,381 458,600 74,219
906,443 1,918,470 1,012,027
231,363 299,906 68,543
45,152 26,000 (19,152)
14,412 14,000 (412)
18,985 21,250 2,265
- 2,000 2,000
47,479 81,500 34,021
- 4,785 4,785
357, 391 449, 441 92 , 050
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, 1997
Variance -
Favorable
Actual Budget (Unfavorable)
EXPENDITURES (continued)
Development and planning services (continued)
Planning and zoning
Personal services $ 232,841 $ 241,417 $ 8,576
Contractual services 86,098 87,500 1,402
Commodities 19,998 14,800 (5,198)
Other 22,328 22,588 260
Capital outlay 7,887 18,789 10,902
Debt service 2,422 5,974 3,552
Total planning and zoning 371,574 391,068 19,494
Total development and planning
services 728,965 840,509 111,544
Town attorney
Tax 40, 375
Water 22,319
Prosecution 76,056
Annexation 14,588
General services 140,394
Totai town attorney 293,732
Police
Personal services
Contrac`ual services
Commodities
Other
Capital outiay
Debt service
Total police
Fire
Contractual services
Total fire
Magistrate court
Personal services
Contractual services
Commodities
Other
Capital outlay
Debt service
Total magistrate court
1,571 ,749
147, 407
120,688
169,908
313,581
198, 031
2,521,364
50,000 9,625
24,000 1,681
78, 000 1, 944
- (14,588)
110,000 (30,394)
262,000 (31,732)
1 ,576,663 4,914
148,236 829
107,441 (13,247)
107,200 (62,708)
184,602 (128,979)
96,172 (101,859)
2,220,314 (301,050)
435,924 450,000 14,076
435,924 450,000 14,076
166,249 217,81 1 51,562
28,393 92,870 64,477
9,303 9,000 (303)
9,377 15,200 5,823
- 14, 500 14, 500
1,719 2,043 324
215,041 351,424 136,383
34
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, 1997
EXPENDITURES (continued)
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 improvement projects
Capital outlay
Total parks
Recreation
Personal services
Contractual services
Commodities
Other
Contingency
Total recreation
Total parks and recreation
Total expenditures
Excess of revenues over
expenditures
OTHER CHANGES IN FUND EQUITY
Increase in reserve for restricted assets
Residual equity transfers out
UNRESERVED FUND BALANCE,
BEGINNING
UNRESERVED FUND BALANCE,
ENDING
Variance -
Favorable
Actual Budget (Unfavorable)
$ 75,060 $ 282,402 $ 207,342
1,272,388 1,667,169 394,781
103,501 87,000 (16,501)
76,680 31,750 (44,930)
- 6,000 6,000
695,995 3,495,000 2,799,005
115,108 118,499 3,391
27,927 67,105 39,178
2,366,659 5,754,925 3,388,266
82,019 - (82,019)
15,786 28,750 12,964
25,188 27,200 2,012
20,849 24,600 3,751
- 3,000 3,000
98,075 - (98,075)
185,071 75,200 (109,871)
426,988 158,750 (268,238)
85,245 68,266 (16,979)
4,594 2,000 (2,594)
12,142 10,300 (1,842)
11,074 8,000 (3,074)
- 1, 000 1, 000
113,055 89,566 (23,489)
540,043 248,316 (291,727)
8,008,171 12,045,958 4,037,787
2,172,459 $ 132,469 $ 2,039,990
(1,634)
(1,058,950)
6, 582, 332
$ 7,694,207
35
i' � '
STATEMENTS B
5PECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or
other earmarked revenue sources. They are usually required by statute or Federal grant
regulation to record particular operating functions of the Town.
Federal Grant Funds - includes the Community Development Block Grants, the HOME
Program, the COPS Grant, GITEM, HIDTA, MANTIS, and Arizona Criminal Justice
Grants. 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, Highway User Revenue and Highway
Safety/JCEF. These funds are non-federal funds required by Arizona Statutes to be used
for police or public works expenditures. .
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M
' 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, 1997
'
' REVENUES
' Other agencies
Block grants — Pima County
Total �evenues
, EXPENDITURES
Current operations
' Community development
Total expenditures
� Excess of revenues
over expenditures
' FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
�
�
'
�
'
'
,
'
�
�
Variance —
Favorable
Actual Budget (Unfavorable)
$ 4,333 $ — $ 4,333
4,333 — 4,333
4,333 —
4,333 —
(4, 333)
(4, 333)
$ — $ — $ —
40
0
TOWN OF MARANA, ARIZONA
1993 COMMUNITY DEVELORMENT BLOCK GRANT — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-4
Year Ended June 30, 1997
REVENUES
Other agencies
Block grants — Pima County
Total revenues
EXPENDITURES
Current operations
Communiry development
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 3,423 $ — $ 3,423
3,423 — 3,423
3,423
3, 423
— (3,423)
— (3,423)
$ — $ — $ —
0
41
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 B-5
Year Ended June 30, 1997
REVENUES
Other agencies
Btock grants — Pima County
Total revenues
EXPENDITURES
Current operations
Community development
Parks and recreation
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 75,399 $ 77,000 $ (1,601)
75,399 77,000 (1,601)
58,698 60,000 1,302
16,701 17,000 299
75,399 77,000 1,601
$ — $ — $ —
42
TOWN OF MARANA, ARIZONA
1995 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITUFiES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-6
Year Ended June 30, 1997
REYENUES
Other agencies
Block grants — Pima County
Total •evenues
EXPENDITURES
Current operations
General government
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)
$ 56,323 $ 123,000 $ (66,677)
56,323 123,000 (66,677)
5,188 — (5,188)
8,000 8,000 —
4,228 15,000 10,772
17,416 23,000 5,584
38,907 100,000 (61,093)
(38,907) — (38,907)
$ — $ 100,000 $ (100,000)
43
TOWN OF MARANA, ARIZONA
1996 COMMUNITY DEVELOPMENT BLOCK GRANT
— SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-7
Year Ended June 30, 1997
REVENUES
Other agencies
Block grants — Pima County
Total revenues
EXPENDITURES
Current operations
General government
Communiry development
Parks and recreation
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 133,200 $ 215,400 $ (82,200)
133,200 215,400 (82,200)
15,903 23,400 7,497
8,113 70,000 61,887
109,184 122,000 12,816
133,200 215,400 82,200
$ - $ - $ -
44
' TOWN OF MARANA, ARIZONA
HOME PROGRAM — SPECIAL REVENUE FUND
� STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-8
Year Ended June 30, 1997
'
I REVENUES
' Other agencies
Block grants — Pima County
Total revenues
' EXPENDITURES
Current operations
� General government
Community development
Total expenditures
,- Excess of revenues
over expenditures
' FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
�
�
'
i
t
i
�
1
�
i-
Variance —
Favorable
Actual Budget (Unfavorable)
$ 122,474 $ — $ 122,474
122,474 — 122,474
4,000
118,474
122,474
(4,000)
(118,474)
(122,474)
$ — $ — $ —
45
0
TOWN OF MARANA, ARIZONA
COPS GRANT — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-9
Year Ended June 30, 1997
REVENUES
Other agencies
Public safety — U.S. Dept of Justice
Total �evenues
EXPENDITURES
Current operations
Police
Total expenditures
Deficiency of revenues
under expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 53,158 $ 51,924 $ 1,234
53,158 51,924 1,234
53,158 51,924 (1,234)
53,158 51,924 (1,234)
$ — $ — $ —
0
46
TOWN OF MARANA, ARIZONA
RICO — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-10
Year Ended June 30, 1997
REVENUES
Other agencies
RICO funds — Pima County
Interest
Total revenues
EXPENDITURES
Current operations
Police
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 1,083 $ 52,000 $ (50,917)
777 — 777
1,860 52,000 (50,140)
52,000 52,000
52,000 52,000
1, 860 — 1, 860
16,056 — 16,056
$ 17,916 $ — $ 17,916
0
47
TOW N OF MARANA, ARIZONA
CITEM — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-11
Year Ended June 30, 1997
REVENUES
Other agencies
Public safety — Arizona
Total revenues
EXPENDITURES
Current operations
Police
Total �xpenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 74,802 $ 79,980 $ (5,178)
74,802 79,980 (5,178)
74,802 79,980 5,178
74,802 79,980 5,178
$ — $ — $ —
48
' TOW N OF MARANA, ARIZONA
HIDTA — SPECIAL REVENUE FUND
, STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-12
Year Ended June 30, 1997
,
' REVENUES
' Other agencies
Public safety — Tucson
Total revenues
1 EXPENDITURES
Current operations
� Police
Total expenditures
' Excess of revenues
overexpenditures
� FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
�
'
'
,
'
,
�
�
,
'
Variance —
Favorable
Actual Budget (Unfavorable)
$ 42,167 $ 37,196 $ 4,971
42,167 37,196 4,971
42,167 37,196 (4, 971)
42,167 37,196 (4,971)
$ — $ — $ —
49
TOWN OF MARANA, ARfZONA
MANTIS — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUMD BALANCE — BUDGET AND ACTUAL
EXHIBIT B-13
Year Ended June 30, 1997
REVENUES
Other agencies
Public safety — Tucson
Totai revenues
EXPENDITURES
Current operations
Police
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 44,960 $ 40,921 $ 4,039
44,960 40,921 4,039
44,960 40,921 (4,039)
44,960 40,921 (4,039)
$ — $ — $ —
0
50
I TOWN OF MARANA, ARIZONA
ARIZONA CRIMINAL JUSTICE GRANTS — SPECIAL REVENUE FUND
' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-14
Year Ended June 30, 1997
'
, 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
�
'
'
�
�
�
'
r
r
'
Variance —
Favorable
Actual Budget (Unfavorable)
$ 39,061 $ — $ 39,061
39,061 — 39,061
39,061 — (39,061)
39,061 — (39,061
$ — $ — $ —
51
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, 1997
REVENUES
Other agencies
LTAF funds — 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)
$ 34,981 $ 36,061 $ (1,080)
34,981 36,061 (1,080)
34,981 36,061 1,080
34,981 36,061 1,080
$ — $ — $ —
0
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-16
Year Ended June 30, 1997
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 BALA��CE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 437,776 $ 404,326 $ 33,450
437,776 404,326 33,450
437,776 404,326 (33,450)
437,776 404,326 (33,450)
$ — $ — $ —
53
TOWN OF MARANA, ARIZONA
HIGHWAY SAFETY/JCEF — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-17
Year Ended June 30, 1997
REVENUES
Other agencies
Public safety — Arizona
Total revenues
EXPENDITURES
Current operations
Magistrate court
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Actual
$ —
Variance —
Favorable
Budget (Unfavorable)
$ 126,559 $ (126,559)
126,559 (126,559)
— 126,559 (126,559)
$ — $ 126,559 $ (126,559)
0
54
STATEMENTS C
ENTERPRISE FUND
The Enterprise Fund is established to account for 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
g�ods 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, 1997 and 1996
1997
ASSETS
CURRENT ASSETS
Receivables:
Other
Restricted assets:
Cash
Investments
Deposit for fixed asset acquisition
Total current assets
PROPERTY, PLANT, AND EQUIPMENT
Land
Water rights
Improvements, including wells and tanks
Asset under capital lease
Machinery, equipment, and other assets
Bond issuance costs
Organization costs
Construction work - in - progress
Total
Less accumulated depreciation and
amortization
Totai property, plant, and equipment
TOTALASSETS
LIABILITIES AND FUND EGlUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses:
Accounts payable
Deposits
Sales tax payable
Accrued payroil
Accrued interest
Total
Due to other funds
Current portion of capital lease
Current portion of revenue bonds
Total current liabilities
LONG-TERM LIABILITIES
Capital lease, less current maturities above
Revenue bonds, less current maturities above
Total long-term liabilities
Total liabilities
FUND EGIUITY
Contributed capital
Deficit
Total fund equity
TOTAL LIABILITIES AND FUND E�UITY
$ 26,569
21,983
301
600, 000
648,853
14,720
50, 000
786,662
26,541
38, 345
27,268
39, 388
982,924
109,442
873, 482
$ 1,522,335
$ -
5,536
2,242
10, 669
18,447
19, 239
8, 565
10,000
56,251
15, 555
250,000
265,555
321,806
1,370,630
(�70,�0�)
1,200,529
$ 1,522,335
1996
$ 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
260,000
350,104
272,773
(88,512)
184,261
$ 534,365
0
55
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, 1997
OPERATING REVENUES
Current use charges
Other
Total operating revenues
NONO�PERATING REVENUES
Interest income
Bond proceeds
Total nonoperating revenues
Total revenues
OPERATING EXPENSES
Material, supplies, and other expenses:
Personal services
Contractual services
Commodities
Other
Contingency
Depreciation expense
Total operating expenses
NONOPERATING EXPENSES
Bond interest expense
Bond fees
Capital outlay
Total nonoperating expenses
Total expenses
NET LOSS
DEFICIT, BEGINNING
DEFICIT, ENDING
CONTRIBUTED CAPITAL, BEGINNING
Residual equi.y transfers in
CONTRIBUTED CAPITAL, ENDING
FUND EOUITY, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 109,008 $ 445,000 $ (335,992)
4,210 70,000 (65,790)
113,218 515,000 (401,782)
675 — 675
— 1,185,000 (1,185,000)
675 1,185,000 (1,184,325)
113,893 1,700,000 (1,586,10�
62, 426 114,11 1 51, 685
14, 966 155, 400 140, 434
25,119 13,625 (11,494)
40,027 21,995 (18,032)
— 1, 000 1, 000
29,914 — (29,914)
172,452 306,131 133,679
21 ,338 35,281 13,943
1,692 — (1,692)
— 1,717,616 1,717,616
23,030 1,752,897 1,729,867
195,482 2,059,028 1,863,546
(81,589) (359,028) 277,439
(88,512) — (88,512)
(170,101) (359,028) 188,927
272,773 — 272,773
1,097,857 — 1,097,857
1,370,630 — 1,370,630
$ 1,200,529 $ {359,028) $ 1,559,557
56
STATEMENTS D
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.
TOW N OF MARANA, ARIZONA
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
EXHIBIT D-1
June 30, 1997 and 1996
1997 1996
GENERAL FIXED ASSETS
Land
Buildings
Assets under capital lease
Machinery, equipment, and other assets
Marana Park
Leasehold improvements
TOTAL GENERAL FIXED ASSETS
$ 73, 310
444,619
812, 980
1,308,382
450,345
199, 377
$ 3,289,013
INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE
From Current Revenues $ 2,621,022
From Revenue Bonds 255,750
From Federaf Grants 412,241
TOTAL INVESTMENT IN GENERAL
FIXED ASSETS $ 3,289,013
$ 73, 310
322,258
722, 701
899,739
189,656
199, 377
$ 2,407,041
$ 1,982,511
255,750
168,780
$ 2 407,041
0
57
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TOWN OF MARANA, ARIZONA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS — BY FUNCTION AND ACTIVITY
EXHIBIT D-3
June S0, 1997
General Fixed Additions Deletions General Fixed
Assets and and Assets
Function and Activity July 1, 1996 Transfers Transfers June 30, 1997
General government $ 455,543 $ 64,036 $ (105,671) $ 413,908
Development and planning
services 199,566 81,807 (26,501) 254,872
Potice 845,562 363,470 (28,417) 1,180,615
Magistrate court 21,935 5,490 (5,490) 21,935
Public works 544,026 185,221 (43,745) 685,502
Community development 89,205 122,361 — 211,566
Parks and recreation 251,204 269,41 1 — 520,615
TOTAL GENERAL FIXED ASSETS $ 2,407,041 $ 1,091,796 $ (209,824) $ 3,289,013
0
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TOWN OF MARANA, ARIZONA
TABLE III
ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
1987 —88
1988 — 89
1989 — 90
1990 —91
1991— 92
1992 — 93
1993 — 94
1994 — 95
1995 — 96
1996 — 97
Assessed
Properry
Value
$ 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
59,454,386
Estimated
Property
Value
$ 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
363,689,243
Ratio of
Total Assessed
Value to Total
Estimated
Value
11%
13%
13%
13%
13%
13%
13%
16%
15%
16%
Note: Includes real properry only
Source: Pima County Assessor's Office of Pima County, Arizona
62
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TOWN OF MARANA, ARIZONA
TABLE V
COMPUTATION OF LEGAL DEBT MARGIN
GENERAL OBLIGATION BONDS
June 30, 1997
(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 availabfe
$ 59,454,386
20%
Bonds (1)
$ 11,890,877
6%
Bonds (2)
$ 3,567,263
Total
$ 15,458,140
$ 11,890,877 $ 3,567,263 $ 15,458,140
Notes:
(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
0
64
...,
TOWN OF MARANA, ARIZONA
TABLE VI
COMPUTATiON OF DIRECT AND �VERLAPPING DEBT
June 30, 1997
(Unaudited)
Jurisdiction
Town of Marana, Arizona
Pima County
Marana School District
Flowing Wells School District
Net
Bonded Debt
Outstanding
$ 560,000
168,298,000
39,591,397
19,445,000
$ 227,894,397
Percentage
Applicable
to Town
of Marana
100.0000%
1.7142%
100.0000%
7.6923%
Amount
Applicable
to Town
of Marana
$ 560,000
2,885,028
39,591,397
1,495,769
$ 44,532,194
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
1987 — 88
1988 — 89
1989 — 90
1990 —91
1991-92
1992 —93
1993 —34
1994 — 95
1995 — 96
1996 — 97
Gross
Revenues Principal
$ 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
9,978,458 15,000
I nterest
_ $
7,619
22,858
22,858
49,402
47,361
47,061
45, 993
44, 903
Notes:
(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
59, 903
Coverage
104.81
57.25
46.11
26.19
87.03
127.97
128.96
166.58
0
TOWN OF MARANA, ARIZONA
TABLE VIII
DEMOGRAPHICS
June 80, 1997
(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
Population by Ethnic Background
_ Age Group
White
Hispanic
Black
Native American
Other
Total
Number
452
808
329
807
1,183
757
624
349
5, 309
Number
3, 624
1,200
189
133
163
5,309
Percentage
of Total
8.51 %
15.22%
6.20%
15.20%
22.28%
14.26%
11.76%
6.57%
100.00%
Percentage
of 'fotai
68.26%
22.60%
3.56%
2.51 %
3.07%
100.00%
0
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 MAHANA, ARIZONA
TABLE IX
PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(Unaudited)
Fiscal
Year
1987 — 88
1988-89
1989 —90
1990 — 91
1991— 92
1992 —93
1993 — 94
1994 — 95
1995 — 96
1996 — 97
Estimated
Property
Value
$ 76,863,547
144,124,821
140,991,242
162,765,533
164,744,983
156,30D,829
160, 582, 056
297, 740, 632
325,467, 683
363,689,243
Residential Construction
Number of
Units Value
N.A. $ N.A.
N.A. N.A.
N.A. N.A.
45 3,800,816
18 1,788,250
112 9,417,569
447 40,70P,699
320 28,018,383
329 34,083,387
435 68,352,903
Commercial Construction
Number of
Units Value
N.A. $ N.A.
N.A. N.A.
N.A. N.A.
5 318,629
10 1,713,967
1 20,000
5 189,244
41 5, 742, 572
40 1, 842,171
36 4,284,366
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
68
Bank
Deposits
(000's)
7, 791
N.A.
7, 509
8, 555
9,414
9,189
9,939
10,256
9, 538
11, 998
0
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TOWN OF MARANA, ARIZONA
TABLE X
MISCELLANEOUS STATISTICAL DATA
June S0, 1997
(Unaudited)
Date of Incorporation: March 21, 1977
Form of Government: 7 member council/Manager
Largest Employers
Fry's
K — Mart
Marana School District
Tucson Electric Power
Flowing Wells School District
Evergreen Air Center
Payless Cashways
Arizona Army National Guard
Product/
Service
Retail — Food
Retail — Stores
School
Electric Utilitiy
School
Retail — Service
Retail — Stores
Government
Number of
Employees
{i) 1,475
(1) 1,400
(2) 1,070
(1) 968
(1) 675
(2) 504
(1) 200
(2) 175
Notes:
1) These totats 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 23, 1997
City Employees: June 30, 1997
Full — Time
Part — Time
Total
90
23
113
0
Police Protection
Number of Stations
Total Full — Time Employees
Commissioned Employees
Parks and Recreation
Acres
Parks
Playgrounds
Swimming Fools
Water Utility
Operable Wells
Active Services:
Metered
Unmetered
Water Distributed (Gallons)
2
49
38
40
1
1
1
0
467
37
34, 268, 000
.•