HomeMy WebLinkAbout1998 Financial Statement June 30� $
�
F �
�, a J z
� 6 y
E � £
� �
� � ; ��-' �� �� ' � ' E��
t� � y s F r � t a� c. � a �. ;
�� �� .. � ' �d'� y ' " � -
� v�- 3�s y� h#t�ix.� ��r'�,s � y �v'"s�'�'
t ; �z��,��" ����'" x ��'� , 3 �9 ��. �'
� � R 3 �' l�aJ 3 �
e
i
�
u
e : °�<,.f.s S��%�,r,rx.2 ���.S4�.s,..e .;�`l,Z „y,.;.�h.-
.
� � �
��1�IP���IE�ISI�l� .A,�I�C1AL F]
��� �'I�E
�����L �E�� �NC�E� �IJI
`� �� �I E C� R.C�UV ��`
���ZAIV�� �i����
TABLE OF CONTENTS
INTRODUCTORY SECTION
ae
Letter of Transmittal ...................................................................................... I
Town of Marana Officials .............................................................................. IX
Town of Marana Organizational Chart .......................................................... X
GFOA Certificate of Achievement ................................................................ XI
FINANCIAL SECTION
Opinion of the Certified Public Accountant .................:.............................
General Pur�aose Financial Statements
Ex ' it
Combined Baiance Sheet - Ail Fund Types and
Account Groups ............................................................ 1
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - All Governmental Fund
Types............................................................................. 2
Combined Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual - All
Governmental Fund Types ....................:....................... 3
Combined Statement of Revenues, Expenses and
Changes in Deficit - All Proprietary Fund Types ......... 4
Combined Statement of Cash Flows - All Proprietary
Fund Types .................................................................... 5
Notes to Combined Financial Statements ........................ -
Gombining Individual Fund and Account Grou�
Statements and Schedules
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
1994 Community Development Block Grant - Statement
of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual ......................................B-3
1995 Community Development Block Grant - Statement
of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual ......................................B-4
1
3
4
5
6
7
9
35
�
!�
43
45
L'l.�
TABLE OF CONTENTS
Combining, Individual Fund and Account rou�
Statements and Schedule (Continued) xh' it aae
Special Revenue Funds (Continued)
1996 Community Development Block Grant - Statement
of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual ......................................B-5
1997 Community Development Block Grant - Statement
of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual ......................................B-6
HOME Program - Statement of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual....B-7
COPS Grant - Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual ..........B-8
RICO - Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual..........B-9
GITEM - Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual..........B-10
HIDTA - Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual..........B-11
MANTIS - Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual..........B-12
State of Arizona Police Grants - Statement of
Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual ......................................B-13
LTAF - Statement of Revenues, Expenditures and
Changes in Fund Balance - Budget and Actual ..........B-14
Highway User Revenue - Statement of Revenues,
Expenditures and Changes in Fund Balance -
Budget and Actual .......................................................B-15
Capital Projects Funds
Combining Balance Sheet .............................................C-1
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances ..........................................C-2
Enterprise Fund
Comparative Balance Sheets ..................................
Statement of Revenues, Expenses and Changes in
Deficit - Budget and Actual .................................
.....D-1
....D-2
47
48
49
50
51
52
53
54
55
56
57
59
60
61
62
TABLE OF CONTENTS
Combining, Individual Fund and Account Grou�
Statements and Schedules (Continued) - i 't
General Fixed Assets Account Group
Comparative Schedule of General Fixed Assets by
Source.........................................................................E-1
Schedule of General Fixed Assets - By Function
andActivity .................................................................E-2
Schedule of Changes in General Fi�ed Assets -
By Function and Activity ............................................E-3
STATISTICAL SECTION (IJnaudited) 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 T� Rates - Direct and Overlapping Governments -
(Per $100 of Assessed Value) - Last Ten Fiscal Years........IV
Computation of Legal Debt Margin General Obligation
Bonds ...................................................................................V
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
�
63
64
65
67
68
69
70
71
72
73
74
75
76
_�
�
�
MARAI�A
/��
TOWN OF MARANA
December 30, 1998
The Honorable Mayor and Council
Town of Marana, Arizona
The Comprehensive Annual Financial RepoR (CAFR) of the Town of Marana for the year ended June 30,
1998 is hereby submitted.
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Town of Marana for its
comprehensive annual financial report for the fiscal year ended June 30, 1997. The Certificate of
Achievement is a presti�ious national award recognizin� conformance with the highest standards for
preparation of a state and local government financial reports.
To be awarded a Certificate of Achievement, a�overnment unit must publish an easily readable and
efficiently or�anized comprehensive annual financial report, whose contents conform to program
standards. The CAFR must satisfy both �enerally accepted accountin� principles and applicable le�al
requirements.
A Certificate of Achievement is valid for a period of one year only. The Town of Marana has received a
Certificate of Achievement for the last two consecutive fiscal years ended June 30, 1997 and 1996. We
believe our current report continues to conform to the Certificate of Achievement proQram requirements,
and we are submitting it to GFOA.
�
1
�
,
1
,
The CAFR has been prepared under the direction of Ivlr. Roy Cuaron, Finance Director, in conjunction
with the Town's special consultant, Mr. Ron Kovar, CPA and the entire staff of the Finance Department.
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 knowledae and belief, the data
contained in the CAFR is accurate in all material respects, and is reported in a manner desiQned to present
fairly the financial position and results of operations of the various funds and account b oups of the Town.
All disclosures necessary to enable the reader to �ain an understandinQ of the Town's financial activities
have beenincluded.
The CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductory Section
includes this transmittal letter, the Town's or�anizational chart, and a list of principal Town officials. The
Financial section includes the auditor's opinion on the financial statements and schedules, the �eneral
purpose financial statements and foomotes, and the combining statements and schedules by fund and
account group, which provides additional detailed informa[ion. The Statistical Section includes selected
financiat and demoQraphic information, �enerally presented on a multi-year basis to demonstrate [rends.
13251 N. LON ADAAAS RGAD � h1ARANA, AR;ZO�JA 85b53 � PHON�: (529) 582-340i � Fs1X: 582-?554
THE REPORTING ENTITY AND ITS SERVICES
Backaround
The Town of Marana is a QrowinQ community located in southern Pima County, Arizona, between the
cities of Tucson and Phoenix. The Town was incorporated in March of 1977. The impetus for
incorporation was citizen concerns for control of water and its impact on their (citizens) well-bein¢ and
destiny. The original incorporation covered approximately ten square miles. Today, the Town boundaries
encompass over seventy-five square miles with a population base in excess of eiQht thousand.
In its infancy, the Town was primarily a rural, agricultural community. However, throuQh annexations
and planned arowth, the Town is now home to several residential, commercial and industrial
developments.
Legislative authority for the Town of Marana is vested in a seven-member Mayor and Council. The
Mayor is cunently selected by the Council from its members. Council-members serve four-year staggered
terms. Recently, the residents voted to have direct election of the Mayor.
The Council fixes the duties and compensation of Town officials and employees, and enacts ordinances
and resolutions relating to Town services, taxes, appropriating and bonowing moneys, licensing and
regulating businesses and trades and other municipal purposes. The Town Council appoints the Town
Manager who has full responsibility for executin; Council polices and administering Town operations.
Town employees are hired under personnel rules approved by the Council. Functions and operations of
Town government are provided by a staff of approximately 135 full-time employees.
Entitv Defined
In accordance with standards set forth by the Governmental Accountin� Standards Board, the Town of
Marana includes in its financial statements all funds, account groups, agencies, boards, commissions, and
authorities that are controlled by, or dependent on, the Town Council. The basic criterion for considering
an organization to be part of the reporting entity is the exercise of oversi�ht 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 �roups 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, 1998 once a�ain shows
siQnificant Qrowth and improvement. The unreserved, Qeneral fund balance increased by 32.24%, or
$2.4M from the previous fiscal year. This continues a trend of the past several years that has resulted in
an averaae increase of 32.6% in the unrestricted, �eneral fund balance over last three fiscal years.
One of the indices that demonstrate the financial strength of [he Town is its recent bond rating. In
September 1997, the Town received an A- credit ra[ina from Standard & Poors rating aaency. Such an
excellen[ rating is unusual for a city or to�vn with the size and demo�raphics of Marana.�
m
The primary contributin� factors to the fiscal improvement and economic prosperity continue to be a
strona national and local economy, prudent fiscal manaQement, responsive customer service and a
philosophy and attitude that promotes and encourages economic development.
Sales tax revenues, which account for 6S% of total revenues, increased by over 1�% from fiscal 96-97 to
fiscal 97-98. The openin� of several new retail establishments (Drivers Mart, Cracker Barrel, Fry's Food
Stores) contributed in excess of �31�K, or 31°Io of the increase in sales tax durinQ the fiscal year. Another
50% of the increase stems from �rowth in the business activity amongst the top ten taxpayers of the
Town.
The strenath of the national economy continues to favorably impact the Town's local home-buildina
industry. With interest rates remaining steady, and an abundant supply of developable land, the Town
continues to e;cperience �rowth in the residential and commercial markets. Witness the 12% increase in
licenses, fees and permits in FY 98 over FY 97.
The importance of sound, prudent fiscal management practices is paramount to the siQnificant
improvement in the Town's financial position. Commencing with the budgetary process, which provides
the framework which allocates the Town's fiscal resources in a fiscally prudent manner and continuing
with monthly reporting and monitoring of budaet variances, the process ensures that total spendin�
remains within approved budgetary levels and within available financial resources. To wit, while total
general fund revenues increased by 1�% over FY 97, total ;eneral fund expenditures increased only 13%.
The Marana Town Council, through the establishment of clear and concise polices on �rowth
management, assures that expansion of the Town boundaries occurs when an economic benefit accrues to
the Town and its residents. Further, a pro-business attitude and emphasis on responsive customer service
foster an environment that encoura�es economic development. The combination of these two factors has
been instrumental in the �rowth and fiscal prosperity of the Town.
Future Economic Outlook
The economic outlook for the Town of Marana continues to be very positive. With an abundance of
developable land, Marana is expected to have very rapid commercial, industrial and residential b owth in
the next ten years. Residential activity continues to be strong in the Continental Ranch area, as on-�oinQ
development continues its various phases and new development projects commence (Coventry Homes,
Del Webb's Sunflower Community). Additional planned residential development projects within the
Continental Ranch area include Saauaro SprinQs, Silver Moon and Cortaro Ranch. Construction activity
at Dove Mountain (formerly Heritage HiQhlands) continues at a rapid pace. In addition to the Heritage
Hi�hlands residential community, new developments include Quail CrossinQ, Villages at Dove Mountain,
Dove Creek and San Mateo at Dove Mountain. Collectively, these communities are planned for over
10,000 homes.
From the commercial perspective, fiscal 98 saw the opening of numerous new business establishments.
Among the more notable were Auto Nation USA (formerly Driver's Mart), the Cracker-Banel and
Keuken Dutch restaurants, the Links at Continental and the Fry's Shopping Center. These business
establishments contributed prominently to the increase in sales tax from the previous fiscal year.
New commercial projects under construction at fiscal year end included Home Depot, Super 8 N1ote1,
Office�lax, Hollywood Video, A-Atlas Self StoraQe and the Gallery Golf Course. Other commercial
projects scheduled to be completed within FY 99 include Walgreens, Discount Tire Company, Batteries
Plus, Days Inn Hotel and a trio of manufactured housing sales offices. These business entities will
significantly enhance the local ta:� and employment base of the Town.
�
'
Additional evidence of future economic prosperity include on-aoin� discussions with a major resort hotel
to be located at Dove Mountain and the imminent construction of flood control improvements alona the
Santa Cruz River. The latter activity is expected to spur economic development in the lar�ely
undeveloped northwest quadrant of the Town.
MAJOR IIVITIATIVES
Current Year Proiects
The Town's 1997-98 budget of $225 million represented a 49% increase from the previous fiscal year.
Major components of the bud�et included $4.3 million for the construction and maintenance of streets and
roads, $3.SM for water system acquisitions and improvements, and $1.5 million for the acquisition of
land, computers, vel:icles and machinery & equipment, most of which were necessitated by the continued
�rowth of the Town. The bud�et also reflected moderate service level increases in police and public
works.
The FY 97-98 year also yielded the following achievements:
♦ An $8 million revenue bond issue, culminatin� with an A- credit rating from Standard & Poors;
♦ Construction of $3.4M of road improvement projects, including Tangerine, Arizona Pavilions Drive
and Lon Adams Road;
♦ Continuation of fire protection service to all Marana residents, a service that began in the last quarter
of fiscal 95-96;
♦ Construction of $427K of Phase II park improvements;
♦ Acquisition of the Cortaro-Marana Irri�ation District's municipal and industrial systems;
♦ Construction of $36�K in water system improvements to improve the delivery, reliability and storage
of water to our customers;
♦ Adoption of a town-wide master water plan;
♦ Construction, renovation and sale of three homes under the Town's affordable housing prob am;
♦ Expansion of bus service to rural Marana residents;
♦ Completion of the Cortaro Road Interchanae, a process that dramatically improved safety and traffic
flow in the area;
♦ Implementation of a funding mechanism to address roadway capital improvement projects.
Future Year Projects
The Town is committed to improvin� and increasin� service levels to its residents and planning for the
proper and orderly growth of the community. To that end, the followin� activities have commenced or are
in the planning sta�es for the very near future:
♦ Design and construction of a municipal comple;c which allows for the consolidation of services and
facilities xo better serve its residents;
♦ Completion of a master wastewater facility plan;
♦ Completion of a Town-wide Capital Improvement Plan;
♦ Completion of a desig concept report for the Ina/I'hornydale area that will address traffic conQestion
in the immediate area; `
♦ Implementation of the InterQovernmental A�reement (IGA) with Pima County for bank protection
along the Santa Cruz River;
♦ Completion of the Gallery Golf Course, a Tom Lehman desiQned, 18 hole resort course;
♦ Completion of the Senior Center Win�, a �,000 square foot facility to host senior citizen and
community events.
iv
��
❑
I ��
'
'
�
'
'
'
�
C�
❑
,
'
' �
��
ir
��
,
FINANCIAL INFORNIATION
Manaaement of the Town is responsible for establishing and maintaininQ an internal control structure
designed to ensure that the assets of the Town are protected from loss theft, or misuse and to ensure th�
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 desianed to provide
reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assura
recoQnizes 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 jud�ments by mana�ement.
All internal control evaluations occur within the above framework. We believe the To�vn's internal
accounting controls adequately safe�uard assets and provide reasonable assurance of proper recordinQ of
financial transactions.
The policy of the Town of Marana provides that the Town Council shall adopt the annual bud�et prepared
by the Town Mana�er and senior staff. This budQet is reviewed by the Town Council and is formally
adopted by the passage of a bud;et resolution. The Town Manager is authorized to transfer bud�eted
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 bud�et 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.
General fund revenues totaled $11,477,390 in fiscal 1997-98, an increase of l�% from FY 96-97. General
fund increases (decreases) over the last year are shown in the following tabulation:
Percent
Increase Increase
Revenue Source
Taxes
Other Agencies
Licenses, Fees and Permits
Fines, Forfeitures and Penalties
Interest Income
Other
Total
Amount
$7,850,847
�1,113,347
�1,895.972
$13�,081
$�73.�74
$8569
�11,477.390
Percent
of
Total
68.40%
9.70°,'0
16.52%
1.18%
4.1�%
0.07%
100.00%
(Decrease) (Decrease)
from from
1997
$1,039,526
�264,670
$209,162
$20,762
S6,108
(�41,296)
�1.498,932
1997
1�.26%
31.19%
12.40%
18.16%
1.�1%
(52.82)%
1�.02%
The inerease in tax revenues �vas the result of strong construction, retail trade and communications &
utilities sectors of the local economy.
Other aQency revenue �rew primarily becnuse of corrections in the auto lieu distribution formula that
resulted in the Town receivin� a greater proportionate share [han in years past, including a retroactive
adjustment.
Income from licenses, fees and permits increased substantially due to the rapid growth mode of the Town
and the accompanying buildin� and development activity.
Fines, forfeitures and penalties also increased modestly, due in part, to improved collection efforts
The increase in interest income reflects a continuinQ accumulation of reserves combined with sound cash
manaaement.
General Fund expenditures for general �overnment purposes totaled $9,026,9�� in fiscal 1997-98, an
increase of nearly 13% from FY 96-97. Increase (decrease) in levels of expenditures for major functions
of the Town over the precedin� year are shown in the followina tabulation:
Function
General government
Development and planning services
Town attorney
Police
Fire
Magistrate Court
Public Works
Debt Service/Capital Lease
Total
Amount
$1,262,492
$792,957
$357,468
$2,289,631
$486,490
$262,818
�3,315,789
$259,308
$9,026,9�3
Percent
of
Total
13.99%
8.78%
3.96%
2�.36%
5.39%
2.91%
36.7�%
2.87%
100.00%
Increase
(Decrease)
from
1997
$3�6,049
$63,992
$63,736
($231,733)
$50,566
$47,777
$409,Q87
$259,308
$2,370,540
Percent
Increase
(Decrease)
from
1997
39 28%
8.78%
21.70%
(9.19)%
11.60%
22.22%
14.07%
100%
12.72%
In general, the increase in expenditures is attributable to the growth mode of the Town, which is fueled by
the stron� commercial and residential activity. Hence, to respond to the growth, and to the public demand
for effective and efficient service, the majority of expenditure growth relates to personnel costs and
related fumiture, fixtures and equipment.
The increase in General Government expenditures was primarily the result of the implementation of an
aQ�ressive economic development and annexation plan.
The decrease in the general fund for Police stems from a reduction in capital spending due the completion
of the Police Modular Facility.
Implementation of a well-planned and desiQned maintenance proaram for the Town's streets and roads
contributed to the increase in the Public Works department.
Despite the increase in expenditures, the Town's Qeneral fund balance increased by nearly 33%, a�ain
indicating sound fiscal manaQement practices. �
Canital Projects Fund
Proceeds of the Series 1997 Revenue Bonds are accounted for in the Capital Projects funds until
improvement projects are completed. During 1998, $3.8M was expended on roadway improvements
Capital Project fund balances on hand at year-end represent primarily cash and cash investments.
vi
'
1
C
�_ _J
�
�J
Proprietarv/Enternrise Water Fund
The Town's water fund showed a si�nificant increase in operating revenues over FY 97. The increase,
however, was offset by a areater increase (in dollars) in operating expenses. The increase in revenues and
expenditures is attributable to the growth of the Town's water system operations, which stems from the
acquisition of several private and quasi-�overnmental systems.
FINANCIAL MANAGENIENT
Debt Administration
At June 30, 1998, the Town of Marana Municipal Property Corporation had one revenue bond issue
outstandin�. The issue is from October 1997 and the outstandina bond indebtedness totaled $8,17�,000 at
June 30, 1998. �
The proceeds of the 1997 Series Bond issue were (are) used to finance capital improvement projects,
namely, design and construction of major roadways and water system inter-connections. Further,
$300,000 was used to refund the balance of the 1990 and 1992 Series Bonds.
ThrouQh the years, the Town has entered into numerous capital lease agreements allowing the Town to
' acquire assets without a major, immediate impact on fund balances. The Town will continue to carefully
evaluate the options available when acquiring assets, and will choose the option which provides the most
long-term benefit to the Town.
'
'
1
Cash ManaQement
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 cunent expenditures is kept in a money market savin�s
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. Qovernment securities. Interest earned on cash and investments from all funds totaled
$669,912 in FY 97-98, net of bank analysis fees and investment expenses.
' Risk Manaaement
The Town of Marana participates in the Arizona Municipal Risk Retention Pool. Under the Town's
�eneral insurance liability, the Town is required to pay the first $10,000 per loss per claim or judament,
with the Pool coverin� the balance up to $2,000,000. The Town also maintains an excess umbrella
' covera�e of $3,000,000. The Town's total �eneral liability insurance is thus $�,000,000.
'
'
The Arizona Municipal Workers' Compensation Pool was the Town's insurance carrier for w•orker's
compensation during FY 97-98.
Various risk control techniques, includina employee accident prevention traininQ, are utilized to control
the Town's risk exposure. y
OTHER INFORNIATION
,
'
��
Indeaendent Audit
The State of Arizona requires a bi-annual audit of the books of account, fnancial 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, 1998 audit. The auditor's report is included in the Financial Section of the report.
VI1
Acknowledaments
The preparation of the C:SFR was made possible by dedication of the entire staff of the Finance
Department and the Town's special consultant, Mr. Ron Kovar, CPA. Our sincere appreciation is
extended to all members of the Finance Department and especially to Ivlr. Ron Kovar.
We also extend our appreciation to the Mayor and Council for their interest and support in planning and
conductin� the financial operation of the Town in a responsible and progressive manner.
Respectfully submitted,
.�� ��
Micha(�1 C. Hein
Town ManaQer
i ��� ��
�
Roy Cuaron
Finance Director
v�u
'� ' � �
�1
� IVV�ARANA
�/��
TOWN pF MARANA
TOWN COUNCIL
Ora Mae Harn
Mayor
Bobby Sutton, Jr.
Vice Mayor
Eddie Honea
Sherry Millner
Michael Reuwsaat
SEIVIOR STAFF
Michael C. I3ein
Tawn Manager
Dave Atler
Town Engineer
Roy Cuaron
Finance Director
Jane Johnson
Human Resource Director
Russell Dillow
Town 1�Iagistrate
Daniel J. Hochuli
Town Attornev
Ken Lawrence
Parks & Recreation Director
"Come Grow With Us"
Herbert Kai
Roxanne Ziegler
Dave Smith
PoIice Chief
Jerry Flannery
Planning & Zoning Director
Joel Svoboda
Chief Building Official
Sandra Groseclose
Town Clerk
Brad DeSpain
Water Director
ix
Town of vlarana
DEPARTMENTAL ORG�.NIZ aTION
� i �
Arizona Supreme Court
Pima County Superior Court
: ..........................................�
Town Attorney
;.....
;...1
Municipal Court
Finance
Human Resources
Parks and Recreation
Public
Town Clerlc�'Town
Marshal/
Administration
Police Chief
litilities
Development Services
Public ��`orks;" (� Buildin� Services I Plannin`
To�vn Enaine�r
Town Council
Town Manager
F�
Certif icate of
�chievement
for Excellence
in Financial
Aeporting
Presented to
Town of Marana,
Arizona
For its Comprehensive Annual
Financial Keport
for the Fiscal Year Ended
June 30, 1997
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
�Y �� /�
-I yGE OFF� / l �
j���„'' aF nf � �
_ �UtBiFD SATES � �
W � � iN
�` C1NA0A ° President
's�% C1lRPORATKIN � `�
J
�' ���
raicacn Q
Lr���� ��C
E:cecutive Director
XI
,
�
.
; �� '` ���
j ' �.sL�t1C�,�P50I1 L.L.C.
' Certified Public AccountanTS & Consuttants
Honorable Mayor and Town Council
Town of Marana
Marana, Arizona
Independent Auditor`s Report
335 North Witmot Road, Suite 300
Tucson. Arizona 85711-2636
(520) 790-3500
(520) 790-0111 Fax
www.cliffoncpa.com
We have audited the accompanying generai-purpose financial statemenu of the Town of Marana Arizona as
� of and for the year ended June 30, 1998. 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.
' Except as discussed in the following paragraph, we conducted our audits in accordance with generally
accepted auditing-standards and the standards applicable to financial audits contained in Government: -
Auditing Standards, issued by the Comptroller General of the United States. Those standards require that
' we plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting�
' principles used and -significant estimates made by manaaement, as weIl as evaluating the overall.
financial statement presentation. We believe that our audits provide a reasonable basis for our opinions.
Governmental Accounting Standards Board 1'echnical Bulletin 98-1, Disclosures about Yea:� ZUGO
Issues, requires disclosure of certain matters regarding the Year 2000 issue. The 'Town has included
such disclosure in Note 15. Because of the unprecedented nature of the Year 2U00 issue, its effects and
the success of related remediation efforts will not be fully determinable until the Year 2000 and
thereafter. AccordingI��, insufficient audit evidence exists to support the Town's disclosures with respect
to the Year 2000 issue made in Note 15. Further, we do not provide assurance that the Town is or will be
Year 2000 ready, that the Town's Year 2000 remediation efforts will be successful in whole or in part, or
that parties which the Town does business will be Year 2000 ready.
ln our opinion, except for the effects of such adjustments, if any, as might have been determined to be
necessary had we been able to examine evidence regarding Year 2000 disctosures, the general purpose
financial statements referred to above present fairly, in a11 material respects, the financial position of the
To�vn of Marana, Arizona as of June 30, t998, and the results of its operations and cash flows of its
proprietary fund types for the year then ended in conformity w-ith generall}� accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the general-purpose financial statemenu
tal:en as a whole. The combining and individual fund and account group financial statemenu and schedules
Iisted in the table of contenu are presented for purposes of additional analysis and are not a required part of
the =eneral-purpose financial statements of The 'Iown of Marana, Arizona. Such information has been
subjected to ihe auditin� procedures applied in the audit of the general purpose financial statemenu and, in
our opinion, is presented fairl}� in all material respects, in relation to the general purpose financial
statements ta}cen as a whole.
Members Of
����
INTERNATIONAL
AMERICAN INSTITUTE
ARIZONA COLORADO ILLINOIS INDIANA IOWA MARYLAND MISSOURI OHIO TEXAS VIRGINIA WISCONSIN OF CERTIFIED PUBLIC
ACCOUNTANTS
,
' Honorable Mayor and Town Council
Tovm of Marana
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 appIied in our audit
of the general-purpose financial statements and, accordingly, we express no opinion on such information.
In accordance with Government Auditing Standards, we have also issued a report dated December 18,
1948 on our consideration of the Town's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, and grants.
, - / �
OOYy L L, .
, Tucson, Arizona
December 18, 1998
'
�
�
�
'
�
, `
FINANCIAL
SE C TI�N
1
1
1
1
1
i
GENE��.L
PURPOSE
FINANCIAL
S TATEMENT S
[�
1
II
i
1
1
��
F
m
�
(
y
F-
a
� y �
< w V' eo
UF-�
i5��
�a$
� p Q c
�
O
Z67Q
38�
O W
� a
❑
2
�
LL
�
�
C �
� �
m E
_ �
m�
o �
r �
0
a
� �
m�
m
I
I
rn�
c .o
J �
�
N y
„�r
��
0
�
c
� �,N„
U t3 v�i
¢ ° ¢
w - o
� a
I LL
� � m
� .�
c ~ �- �
o���
a
� y
'a �
U �
a
d
.� >
� �
� C
U �
N >
m °� m
cd�¢
w
E
m�
> C
O �
� LL �
I �
c
�
0�8 m�g� �� � � m �
ug v m
O> �- O t0 � c9 f� V N I� V CV I�
f� 1� O (O m C t0 � V � � N f0 f�
� � � - n o
i. `r �
Fn �
mo �� r a rn o� v
� O� m N
� N O N t0 N � C7 n (V p
c rn' O� 01 C m N � N I m O� ` O tD
()
O 1(7 m In N
� ^ �i
v m �
� rn �
1� (v O
I 1 1 I I I I i I I I� � I �
m �
� �
0 0
co m
0 0
I I I I I I I 1 I I I I I r m
oi r�
� fry
n� � rn a
N N � p
I I I I� I I N I I I I I � N
� �
us yi
g � �
n n
I I I I I I N I I� I I I I m
� N
� �
V V
I I I I I I I I I� I I I I n
� M
v> yi
�D In O 01 �
(7 I� N I� �
� I I I n I� i � I I 1 I I �
� �
O�l M I� t� O fD N
�� I n ��° I I I I I I I �
N
O �
fA yj
v
c
C � � �^
� ` 7 U N C
� �
'� c�i� m a�
� v ,�
v�� E c, �'
N p N O C� ��� O
ry b �
W «� �� C �� � Q
;o 'v, d m
m ._
X C N a m m a 41 d� � C (n
Nt W,_a�- O
� p W x O y � m>� j Q O�j �N W
d.._ � N E N� E W�N, Id q d y'V (/J
N z»`��`�`m�°��Na�'i��>>�,��a <
W m>aa�i�p��iffiU�E�EEax� ¢
� U �o¢ ao �¢ ¢ ¢¢ ii �
¢ F.
vcm� �
�`c3ov c`�i
� h fD C cD
in`OO m
�
orn v
N cD N N f�
Nrn� O O�
fD c7 N V (D
r � �
Vd �
n r�
m m
0 0
� C
I I � I
Qi Oi
�
°b�' 8 �
�o � o o �
O O Oi t7 N
h I� fD C� N
CO � N
�"oi
m�o ��$
O N CJ O
O O O CV f� --
ov� av.-
O v 1� M
N c0
I I I I I I
° m
0
I 1 I I I 1 I� I I I
oi
�
V � � � O ln
r�i�DO � � o 1 I I I
� o m
'- N ...
ra
iiig S iii iii
N N
t»
I I I I � I
a
iii i�i
m
�
� N �
rD V N
� � � � n
�
O I� O �
in � w m
� N �
m N � N �
in m o
.- � N
�
01
n
� � � � � �
8
O
I L I � I
a � �
v� u� m
w o w
I � � O
� � v
va
N � m c7
f� m tD N
� � � �
� � N �
� �
rn
m
�
1 I 1
O�
�
0 0
m m
0 0
I I � �
� m
fA
� � N
N O C
I I � N 01
�o m �
� �
�U
�
� � � `
� � n '
rn � rn i9 c
< R 1� E ['
� U
0
V d y
°:
0
I I � � �
�
fA
N � O
O m
� N c7 tn
fo n v
�
N N m
W Q1 N
I� f� N
I n � �
N N
O O �
»
N
� N H
�
d � � � � m�
U —
°1 U � c d '' `a Q
�
v �+ � L W
a c�i m v� ° �
� _ � x � '� � � � c = N
N ` —
f-
C � �� '� � � u. �
� � N �. �' � � ] � 0
N� y ❑ Z � N � N y y� y j(n UJ
'� � � ; � ¢ a�d °'� o 0 0�� � d �HU
�+'� � N U C C N
� � � ro J
aa E v ,� � m� v m= c_¢
y � o y � = � �� m� m d m 2 m �� � Q Z
F o o �t o O � Nv °' N°' n'�'a� o'�O
J u m c � � p �' d c a� d�i � d y c �' Q �
� QOJO � U�Sty � �Z
� LL O¢
'
TOWN OF MARANA, ARiZONA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES - EXHIB(T 2
Year Ended June 30, 1998
'
Totals '
Special Debt Capital (Memorandum Only)
General Revenue Service Projects 1998 1997
REVENUES
Taxes $ 7,850,847 $ - $ - $ - $ 7,850,847 $ 6,811,321
Other agencies 1,113,347 992,911 - 1,292,443 3,398,701 1,971,817
Licenses, fees and permits 1,895,972 - - - 1,895,972 1,686,810
Fnes, forfeitures and
penalties 135,081 8,616 - - 143,697 114,319
Interest 473,574 832 9,475 186,031 669,912 468,243
Other 8,569 74,026 - - 82,595 49,865
Total revenues 11,477,390 1,076,385 9,475 1,478,474 14,041,724 11,102,375
OTHER FINANCIAL SOURCES
Bond proceeds - - - 8,175,000 8,175,000 -
Transfers from other funds 933,700 8,170 337,929 675,983 1,955,762 -
Conversion of account to note payable - - - 665,881 665,881 -
Lease purchase proceeds 19,350 - - - 19,350 202,172
Total otherfinancial sources 953,050 8,170 337,929 9,516,864 10,816,013 202,172
Total revenues and other financial sources 12,430,440 1,084,555 347,404 10,995,338 24,857,737 11,304,547
EXPENDITURES
Current operations
General government 1,262,492 20,765 - - 1,283,257 896,422
Development and planning services 792,g57 - - - 792,957 726,543
Town attorney 357,468 - - - 357,468 293,732
Police 2,289,631 291,931 - - 2,581,562 2,375,309
Rre 486,490 - - - 486,490 435,924
Magistrate court 2g2,g�g - - - 262,818 213,322
Public works 3,315,789 488,232 - - 3,804,021 2,811,489
Community development - 157,674 - - 157,674 201,041
Parks and recreation - - - - - 670,156
Debt service
Principal retirement 219,489 - - 295,000 514,489 215,102
Interest 20,469 - - - 20,469 50,109
Rscai agent fees/bond issuance costs - - - 359,042 359,042 -
Lease purchases-capital 1g,35p - - - 19,350 202,172
Capital improvement projects - - - 3,824,715 3,824,715 -
Total expenditures 9,026,953 958,602 - 4,478,757 14,464,312 9,091,321
OTHER FINANCIAL USES
Transfers to other funds 712,460 6,700 - 1,220,553 1,939,713 -
Totai expenditures and other financial uses 9,739,413 965,302 - 5,699,310 16,404,025 9,091,321
Excess of revenues and other financial sources
over expenditures and otherfinancial uses 2,691,027 119,253 347,404 5,296,028 8,453,712 2,213,226
FUND BALANCES, BEGINNING 7,701,595 17,916 - - 7,719,511 6,604,142
Residual equitytransfers out (175,830) (63,350) - (39Q,276) (629,456) (1,097,857)
FUND BALANCES, ENDING � 10,216,792 $ 73,819 $ 347,404 $ 4,905,752 $15,543,767 $ 7,719,511
See notes to combined financial statements.
4
TOWN OF MARANA, ARIZONA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - BUDGET AND ACTUAL
ALL GOVERNMENTAL FUND TYPES - EXHIBIT 3
Year Ended June 30, 1998
General Special Revenue
Actual Budget (a) Variance Actual Budget (a) Variance
�
I �
I '
REVENUES
Taxes $ 7,850,847 $ 6,676,215 $ 1,174,632
Other agencies 1,113,347 909,778 203,569
Licenses, fees and permits 1,895,972 1,022,750 873,222
Fines, forfeitures and
penalties 135,081 125,000 1 Q,O81
Interest 473,574 350,000 123,574
Miscelianeous 8,569 4,578,205 (4,569,636)
Totai revenues 11,477,390 13,661,948 (2,184,558)
OTHER FINANCIAL SOURCES
Bond proceeds - 2,635,897 (2,635,89�
Transfers from other funds 933,700 - 933,700
Lease purchase proceeds 19,350 - 19,350
Totai other financial sources 953,050 2,635,897 (1,682,84�
Total revenues and other financial sources 12,430,440 16,297,845 (3,867,405)
EXPEND (TU RES
Current operations
Generai government 1,262,492 2,200,612 (938,120)
Development and p{anning services 792,957 851,864 (58,90�
Town attorney 357,468 327,000 30,468
Police 2,289,631 2,942,429 (652,798)
Fire 486,490 462,060 24,430
Magistrate court 262,818 538,320 (275,502)
Pubiic works 3,315,789 4,167,736 (851,947�
Community development - - -
Debt service
Principal retirement 219,489 178,486 41,003
Interest 20,469 - 20,469
Lease purchase-capital 19,350 - 19,350
Capitalimprovementprojects - 5,111,788 (5,111,788)
Total expenditures 9,026,953 16,780,295 (7,753,342)
OTHER FINANCIAL USES
Transfers to other funds 712,460 - 712,460
Total expenditures and other financiai uses 9,739,413 16,78D,295 (7,040,882)
Excess of revenues and other financial sources
over expenditures and other financial uses 2,691,027 (482,450) 3,173,477
FUND BALANCES, BEGINNING 7,701,595 - 7,701,595
Residual equity transfers out (175,830) - (175,830)
FUND BALANCES, ENDING $10,216,792 $ (482,450) $10 699,242
$ - $ - $ -
982,911 1,058,983 (76,072)
832 - 832
50,766 210,000 (159,234)
1,034,509 1,268,983 (234,474)
8,170 - 8,170
8,170 - 8,170
1,042,679 1,268,983 (226,304)
20,765 , 10,000 10,765
291,931 311,973 (20,042)
478,232 533,010 (54,778)
141,114 484,000 (342, 886)
932,042 1,338,983 (406,941)
932,042 1,338,983 (406,941)
110,637 (70,000) 180,637
17,916 - 17,916
(63,350) - (63,350)
$ 65,203 $ (70,000) $ 135,203
(a) The Town's budget included an additional $5,007,190 for revenues and $4,454,740 tor expenditures for water enterprise activities
that are not inciuded in this statement because these activities are proprietary in nature.
See notes to combined financial statements.
5
I ,
'
TOWN OF MARANA, ARIZONA
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
FUND EQUITY — ALL PROPRIETARY FUND TYPES — EXHIBIT 4
Year Ended June 30, 1998
OPERATING REVENUES
Current use charges
Other
Total operating revenues
OPERATING EXPENSES
Material, suppiies, and
other expenses
Depreciation expense
Total operating
expenses
OPERATING LOSS
NONOPERATING REVENUES
(EXPENSES)
Interest ineame �
Bond interest expense
Bond fees
Total nonoperating revenues (expenses)
NET LOSS
Transfers to other funds
DEFICIT, BEGINNING
DEFICIT, ENDING
CONTRIBUTED CAPITAL, BEGINNING
Residual equity transfers in
CONTRIBUTED CAPITAL, ENDING
FUND EQUtTY, ENDING
Proprietary Totais
Fund Types (Memorandum Only)
Enterprise/
Water 1998 1997
$ 405,624 $ 405,624 $ 109,008
' 15,673 15,673 4,210
421,297 421,297 113,218
480,389
94,336
'
�
�
'
,
r
480,389 142,538
94,336 29,914 '
574,725 574,725 172,452
(153,428) (153,428) (59,234)
206 206 675
� — (21,338)
{1,121) (1,121) (1,692)
(915) (915) (22,355)
(154,343) (154,343) (81,589)
{16,069) (16,069) —
(170,101) (170,101} (88,512)
(340,513) (340,513) (170,101)
1,370,630 1,370,630 272,773
629,456 629,456 1,097,857
2,00�,086 2,000,086 1,370,630
$ 1,659,573 $ 1,659,573 $ 1,200,529
See notes to combined financial statements.
6
,
�
TOWN OF MARANA, ARiZONA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES — EXHIBIT 5
Year Ended June 30, 1998
Proprietary
Fund Types
Enterprise/
Water
, CASH FLOWS FROM OPERATING ACTIV(TIES
Loss from operations
Adjustments to reconcile loss from operations to net
, cash used in operating activities:
Nonoperating expenses associated
with trustee/fiscal agents
Depreciation
' Changes in operating assets and liabilities:
Increase in accounts receivable
increase in inventories
increase (decrease) in accounts payable and accrued expenses
, Net cash used in operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
'
'
,
Increase (decrease) in due to other funds
Residual equity transfers from general fund
Residual equity transfers from special revenue funds
Residual equity transfers from capitai project funds
Note payable proceeds received
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)
Totals
(Memorandum Only)
1998 1997
$ (154,343) $ (154,343) $ (81,589)
915 915 22,870
94,336 94,336 29,914
(29,718) (29,718) (13,379)
(22,268) (22,268) —
30,700 30,700 (16,297)
(80,378) (80,378) (58,481)
(1,094)
175,830
63,350
140, 276
88,000
(8, 262)
(362,353)
(15,369)
80,378
(1,094) 2,286
175,830 1,058,950
63,350 38,907
140, 276 —
88,000 —
— (600,000)
(8,262) (2.421)
(362,353) (406,524)
(15,369) (32,71�
80,378 58,481
$ — $ — $ —
' SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES
'
�
I ,
I '
I �
During fiscal 1998, the Town financed the purchase of fixed assets with the application of a deposit for fixed asset acquisition of $600,000.
During fiscal 1998, the Town charged off $27,268 in unamortized bond issuance costs with the defeasance of the 1990 general obligation
bond series.
During fiscal 1998, the Town defeased revenue bonds with a residual equity Vansfer from capital projeci funds in the amount of $250,000.
(a)Cash on the balance sheet consists of cash the Town can access and restricted cash/cash on deposit with trustee/fiscal agents. Cash flows
from cash with Vustee/fiscai agents are not presented above because these activities represent noncash transactions.
(Continued)
7
I ,
TOWN OF MARANA, ARlZONA
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES — EXH161T 5
Year Ended June 30, 1998
Proprietary Totals
Fund Types (Memorandum Only)
Enterprise/
Water 1998 1997
SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES (Continued)
Cash
Cash with trustee/fiscal 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 WfTH TRUSTEE/FISCAL AGENTS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers to other funds
CASH FLOWS WITH TRUSTEE/FISCAL AGENTS FROM CAPITAL AND
RELATED FINANCING AND OTHER ACTIV(TIES
Interest and other obligations paid
Redemption of bonds payable
Net cash with trustee/fiscal agents used in
financing and other activities
NET INCREASE (DECREASE} IN CASH WITH TRUSTEE/FISCAL AGENTS
CASH WITH TRUSTEE/FISCAL AGENTS, BEGINNING OF YEAR
CASH WITH TRUSTEE/FISCAL AGENTS, END OF YEAR
$ — $ — $ —
— — 21,983
$ — $ — $ 21,983
$ 15,369 $ 15,369 $ 32,717
206 206 542
301 301 21,071
15, 876
15,876 54,330
x (16,069)
(i 1,790)
(10,000)
(21.790)
(21,983)
21, 983
$ —
(16,069) —
(11,790) (23,412)
(i0,000) (10,000)
(21,790) (33,412)
(21,983) 20,918
21,983 1,065
$ — $ 21,983
See notes to combined financial statements.
8
TOWN OF MARANA, ARIZONA
NOTES TO COMBIl\TED FINANCIAL STATEMENTS
June 30, 1998
'
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, taxing authority, and the
ability to significantly influence operations and accountability for fiscal matters. The
Town provides a full range of services including general government, development and
planning, legal, public safety (police and fire), public works, and parks services. The
accounting policies of the Town conform to generally accepted accounting principles
(GAAP) as applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing accounting and fmancial
reporting principles. The more significant accounting policies of the Town are described
below.
B. Financial Re orting t't
In accordance with Govemmental Accounting Standards Board Statement 14, "The
Financial Reporting Entity", these financial statements present the Town and its only
component unit, the Town of Mazana Municipal Property Corporation (MMPC). The
MMPC is blended with the Town in these financial statements because the MMPC was
established by the Town in order to fund the debt incurred to finance the purchase of the
Town hall, various capital projects, and fixed assets used by the water fund. In addition,
MMPC only provides services to the Town. MMPC also issues an annual financial
report, which is available through the Town of Marana's Finance Department.
C. Basis of Pre entation
The accounts of the Town are organized on the basis of funds and account groups, each of
which is considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self-balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures. Government resources are allocated
to and accounted for in individual funds based upon the purposes for which they are to be
spent and the means by which spending activities are controlled. The various funds are
grouped, in the financial statements in this report, into generic fund types and broad fund
categories as follows:
�
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FIl\TANCIAL STATEMENTS
June 30,1998
NOTE 1 - SUMMARY OF SIG1vIFICANT ACCOUNTING POLICIES
(Continued):
C. �asis of Presentation (Continued)
• - .� �� - ,_. . -
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 (other than proprietary functions or major capital projects) 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 established such a fund for the first time in fiscal year ended
June 30, 1998 with the issuance of the 1997 General Obligation Bond Series. Debt
service activity and reserves for the previously issued and outstanding 1992 General
Obligation Bond Series were recorded in the general fund as they were believed to be
immaterial.
Capital project funds - These funds are used to account for the acquisition or
construction of capital facilities being financed from General Obligation Bond proceeds,
grants from other agencies, or transfers from other funds.
Pro�rietarv Fund TY�e�
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
aze fmanced 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.
10
,
,
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1998
, NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTIl�TG POLICIES
(Continued):
C. Basis of Presentation (Continued)
,
'
�
I '
�J
Account Groups
Account groups are used to establish accounting control and accountability for the
Town's general fixed assets and general long-term debt obligations. The two account
groups are not "funds". They are concerned only with the measurement of financial
position. They are not involved with measurement of results of operations. The
following are the two account groups:
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 axe recorded as expenditures of
those funds at the time of purchase and are subsequently recorded for control purposes in
the general fixed assets account group.
General long-term debt account group - This account group is established to account
for all the Town's long-term debt and governmental fund compensated absences that will
be financed from general governmental resources. Long-term liabilities of the proprietary
fund are accounted for in that fund.
D. �easurement FocusBasi of Accountina
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made,
regardless of the measurement focus applied.
The Governmental Fund Types (General, Special revenue, Debt service, and Capital
project funds) use a current financial resources measurement focus and are accounted for
using the modified accrual basis of accounting. Under the modified accrual basis of
accounting, revenues are recognized when susceptible to accrual; i.e., when they become
both measurable and available. "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period, which for the Town is
considered to be 60 days after year end. Expenditures are recorded when the related fund
Iiability 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
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
D. Measurement FocusBa is of Accounting (Continued)
The Town reports deferred revenue on its combined balance sheet. Deferred revenue
arises when a potential revenue does not meet both the "measurable" and "available"
criteria for recognition in the current period. Deferred revenue also arises when resources
are received by the government before it has legal claun to them, as when grant monies
are received prior to the incurrence of qualifying expenditures. In subsequent periods,
when both revenue recognition criteria are met, or when the government has a legal claim
to the resource, the liability for deferred revenue is removed from the combined balance
sheet and revenue is recognized.
Grant revenues are susceptible to accrual if they are earned as expenditures occur. Taxes
collected (which include state shared sales taxes, Town sales tax, and county shared auto
lieu taxes) and held by the both the State of Arizona and Pima County, Arizona at year
end on behalf of the Town are also recognized as revenue. All other Governmental Fund
Type revenues are recognized when received.
The Proprietary Fund 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. The Town's Proprietary Fund applies all applicable Government
Accounting Standards Board (GASB) Statements, as well as the following
pronouncements issued on or before November 30, 1989, unless those pronouncements
conflict or contradict GASB pronouncements: Financial Accounting Standards Board
Statements and Interpretations, Accounting Principles Board Opinions, and Accounting
Research Bulletins of the Committee on Accounting Procedure.
12
�
�
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
�
��
�
'
I '
E. Budget� Control
The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation
that is applicable to all local governments. This Iimitation, based on expenditures of the
1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in
population and inflation. Certain expenditures are held to be excludable. The limitation
is set by the State Economic Estimates Commission prior to April 1 of each year for the
following fiscal year. As allowed, the voters of the Town of Marana, on March 1 l, 1997,
approved an alternative expenditure limitation - home rule option to be applicable to the
Town. This alternative expenditure limitation is free from any ties to the state imposed
limitations and is in effect for four consecutive years beginning with the fiscal year ended
June 30, 1998. This limitation provides for the Town to allow the Mayor and Council to
adopt an annual expenditure limitation each year with no expenditures held to be
excludable. Therefore, the annual expenditure limitation equals the adopted budget.
The Town establishes its fiscal year as the twelve-month period beginning July l. The
departments submit to the Town manager a budget of estimated expenditures for the
ensuing fiscal year. The Town manager and each department head meet to discuss
mutually acceptable changes for the estimated expenditures for that department after
which the Town manager subsequently submits a budget of estimated expenditures and
revenues to the Town Council.
Upon receipt of the budget estimates, the Town Council will hold a public meeting to
obtain taxpayer comments. Concurrently, a copy of the budget estimates is published in a
local newspaper. The Town Council is prevented from legally enacting the budget
through passage of a resolution until 15 days have passed after the date of the public
meeting. Prior to July 1, the budget is legally enacted.
The Town manager is authorized to transfer budgeted amounts between any departments
or any funds; however, any revisions that reallocate budgeted amounts from the budget
line items labeled "contingency" must be approved by the Town Council.
I ' 13
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 1 - SUMMARY OF SIG1vIFICANT ACCOUNTING POLICIES
(Continued):
E. Budgetary Control (Continued)
Budgeted amounts are as originally adopted and all appropriations lapse at year end. All
budgets are adopted on a basis consistent with generally accepted accounting principles
except the enterprise/water fund, for which depreciation is not budgeted and the
acquisition of capital assets is budgeted as an expendiiure and bond proceeds are
budgeted as revenue. However, it was not anticipated that bond proceeds and grants from
other agencies would need to be reflected as a debt service fund and capital project funds;
thus, no appropriated budgets were adopted for the debt service fund and capital projects
funds, although the bond proceeds were budgeted as revenue and capital improvement
projects within the general fund an enterprise/water fund.
A budgetary basis to GAAP basis reconciliation of the special revenue funds, of which
the 1992 Community Development Block Grant, CJEF Court Fund, and EPA Capital
Improvement Program are not budgeted, follows:
Budgetary Unbudgeted GAAP
Basis Fund Basis
ctu Ac Actual
Total revenues and other financial sources $1,042,679 $ 41,876 $1,084,555
Tota1 expenditures and other financial uses 932,042 33,260 965
Excess of revenues and other financial
sources over expenditures and other
financial uses
F. Encumbrance
�i, 1 • G '� : • • '� '
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.
14
,
�
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
, NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
'
�
�
�
G. Reservations and Designations of Fund Balances
In addition to the reservations of fund balance for prepaid expenditures mentioned below,
the Town has established other reservations of fund balance as follows:
Reserved for debt service represents amounts required to be maintained under the
provisions of various bond ordinances or amounts reserved for future debt service
requirements.
Reserved for restricted assets represents assets maintained by Pima County for custodial
, purposes that are restricted for expenditures that will enhance the Town's ability to
conduct police investigations.
,
'
The designation for subsequent years' expenditures represents Capital Projects Fund
Balances specifically identified for capital improvements.
H. Use of Estimates
, The preparation of general purpose financial statements in conformity with generally
accepted accounting principles requires management to make estimates and assumptions.
This will effect the reported amounts of assets and Iiabilities, disclosure of contingent
� assets and liabilities at the date of the financial statements, and the reported amounts of
revenues and expenditures during the reporting period. Actual results could differ from
these estimates.
' I. Bond Issuance Costs
�
,
�
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. With the
defeasance of bonds associated with enterprise/water fund activities, the remaining basis
of bond issuance costs was fully amortized and written off in fiscal 1998. For all other
funds, bond issuance costs are recognized as expenditures in the period in which the
bonds are issued.
J. Investments
All investments are stated at fair market value.
15
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1998
'
�
NOTE 1 - SliMMARY OF SIGNIFICANT ACCOLTNTING POLICIES '
(Continued):
K. Restricted Acsetc
The trust indentures executed for all of the bond series issued require all cash and
investments for each bond series to be held on deposit by the trustee/fiscal agents. These
assets are restricted for payment of interest and trustee fees associated with the bond
issues, retirement of principal balances, and purchasing fixed assets for the water fund
and to finance various capital projects.
In addition, the State of Arizona required that assets obtained at the completion of
criminal proceedings by the Town's police department be given to Pima County for
custodial purposes. These assets are restricted for expenditures that will enhance the
Town's ability to conduct police investigations.
L. Pre aid x�en�itures
Prepaid expenditures are for payments made by the Town in the current year for liability
insurance coverages extending into the subsequent year, and the reserve for prepaid items
has been recognized to signify that a portion of fund balance is not available for other
subsequent expenditures.
M. Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds
for goods provided or services rendered. These receivables and payables are classified as
"due from other funds" and "due to other funds" on the combined balance sheet.
N. �nventories
The Town uses the purchase method of expending inventories. There were no significant
inventories on hand at June 30, 1998 in the general fund. The inventories in the
proprietary/water fund consist of supplies (aka water meters) and are recorded at the
lower of cost or market at the first in first out method.
'
�''
TOW1V OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
3une 30,1998
NOTE 1 -
(Continued):
O. Fixed Assets
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
�'reneral Fixed Assets Account rou�
Fixed assets used in Governmental Fund Type operations (general fixed assets), including
those purchased with Federal grant monies, are accounted for in the General Fixed Assets
Account Group, rather than in Governmental Funds. Public domain ("infrastructure")
general fixed assets, such as roads, bridges, curbs and gutters, streets and sidewalks,
drainage systems, and lighting systems, are not capitalized along with other general fixed
assets for reporting purposes. Donated fixed assets are valued at estimated fair value on
the date donated. All purchased fixed assets are valued at cost. The cost of normal
maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. No depreciation has been provided on any of the
remaining assets. Interest has also been capitalized on fixed assets in the Governmental
Fund Type operations.
Pro riet Fund TY�e
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
Useful Lives (Year�
Pump stations, distribution systems,
equipment and improvements 20
Organiza.tion costs 40
Machinery, equipment, and assets under capital lease 5
P. Ca�italized Lease Oblig ta ions
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 Iease obligation as a
liability.
17
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
Q. C_ o t�pensated Ahs�nce
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, 1998, will
most likely not be paid within the current accounting cycle. Rather, in fiscal 1999 the
Town will probably pay that year's accrual without utilizing amounts accrued from prior
years.
R. Fund Changes and Transactionc Reiween Fund
Transactions that would be treated as revenue, expenditures, or expenses if they involved
organizations external to the governmental unit are accounted for as revenue,
expenditures, or expenses in the funds involved. Transactions which constitute
reimbursements of a fund for expenditures or expenses initially made from that fund
which are properly applicable to another fund are recorded as expenditures or expenses in
the 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.
S. �om�araNve Data
Comparative total data for the prior year is presented in the financial statements in order
to provide an understanding of changes in the Town's financial position and operations.
However, presentation of prior year totals by fund type have not been presented in the
statements, since their inclusion would make the statements unduly complex and difficult
to read.
Total columns on the combined financial statements are captioned "memorandum only"
to indicate that they are presented only to facilitate financial analysis. Data in these
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.
18
,
�
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1998
, NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):
T. Seized Pro�ert�
,
,
,
�
'
,
��'
I '
I �
I ,
I '
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, Iegal requirements dictate that such assets not be reflected on
the Town's financial records in an agency capacity until Town ownership has been
determined. Consequently, no such assets are recorded on these financial statements.
NOTE 2- DEPOSITS AND INVESTMENTS
A. it
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 $1,225 at
June 30, 1998.
At year end, the book value of the Town's bank demand accounts was $326,088 and the
bank balance was $525,171. The difference of $199,083 represents deposits in transit and
outstanding checks at June 30, 1998. This total bank balance was covered by federal
depository insurance or collateral held by the Town's custodial bank in the Town's name.
Restricted assets: cash is uncollateralized by the trustee holding these �alances. At year
end, the book value of these balances, which was the same as the bank balances, totaled
$11,790.
B. T�vestments
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 utiiity and
municipal improvement districts, and the Arizona State Treasurer's Local Government
Investment Pool. The Town's investments as of June 30, 1998 are:
Market
Value
State Treasurer's Local Government Investment Pool $10,982,353
Money Market Funds 5,253,156
Total Investments � 16,235,509
19
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 2- DEPOSITS AND INVESTMENTS (Continued)
B. T�avestments (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
$10,982,353
5,253,156
$16,235,$09
NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION
The following is a summary of the changes in general fixed assets for fiscal 1998:
Balance Balance
July l, 199? Additions I ti n June 30, 1998
Land $ 73,310 $ - $ (10,017) $ 63,293
Buildings 444,619 36,190 (135,360) 345,449
Assets under capital lease 812,980 19,350 (69,957) 762,373
Machinery, equipment, and
other assets 1,308,382 606,735 (97,175) 1,817,942
Marana Park 450,345 104,745 - 555,090
Leasehold improvements 199,377 16,785 - 216,162
Total �,2g9,013 $ 783,�$Q5. �312,5091 �3,760�309
20
'
'
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION
(Continued)
A summary of water fund property, plant, and equipment at June 30, 1998 is as follows:
_ Land
, Water rights
Improvements, including wells and tanks
� Machinery, equipment, and other assets
Asset under capital lease
Organization costs
' Total
Less accumulated depreciation and amortization
Fixed assets, net
�
,
,
I '
I '
I '
I '
NOTE 4 - INTERFUND TRANSACTIONS
A. Amounts due to/from other fund at June 30 1g9g�are as follows•
The amount due to the General Fund is due from: .
Special Revenue:
1997 Community Development Block Grant
COPS Grant
GITEM
HIDTA
MANTIS
State of Arizona Poiice Grants -
Highway User Revenue
Enterprise:
Water
Total
The amount due to Special Revenue Funds is as follows:
$ 14,720
50,000
1,786,662
43,491
26,541
39,�88
1,918,009
( 176,5101
$1,741,499
$ 2,831
2,957
6,293
4,956
5,421
16,967
13,032
�:�i.�
� 1 .1
The amount due to HOME Program is due from the General Fund $ 48,885
The amount due to RICO is due from the General Fund 1,322
Total $ 50,201
The amount due to Capital Project Funds is as follows:
The amount due to Other Capital Project Funds is due from the
the General Fund
'� • 111
I ' 21
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1998
NOTE 4 - INTERFUND TRANSACTIONS (Continued)
B. Residual Equitv Transfers In/Out•
The amount transferred to the Enterprise/Water Fund was transferred from:
General Fund $175,830
Special Revenue Funds:
1995 Community Development Block Grant 63,350
Capital Proj ects Funds:
1997 General Obligation 390,276
Total 2 4
NOTE 5 - CAPITAL LEASES
The Town has previously entered into several 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, 1498:
Fiscal Year
F.nding ne 0
Water
Fund
General Long-
Term l�eht
1999
2000
2001
Total minimum lease payments
Less amount representing interest
Present value of net minimum lease payments
NOTE 6- LONG - TERM DEBT
$ 9,681
7,263
� •. .
1:.
..
, . .
$113,179
80,043
52,76g
245,990
(21,502
�224,4gg
During 1998, the Town's enterprise/water fund was advanced funds under a zero-interest
loan in the amount of $88,000 for the purchase of fixed assets for the water system,
collateralized by two storage tanks in the water system and requiring monthly payments
of $733 over a ten year term.
22
�
'
,
��
'
,
TOWl�T OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 6- LONG - TERM DEBT (Continued)
During 1998, a capital improvement project in the capital project funds was financed by a
taxpayer. Under this unsecured agreement, the Town agreed to repay the t�payer the
total cost of $665,881 for this project under a zero-interest repayment plan based on
quarterly payments of 33% of the Town sales t� collected by the Town from local
businesses within the general vicinity of the improvements created by this project. Based
on initial payments and calculations, it is estimated annual repayments will be
approximately $85,000 per year.
The following is a schedule by years of the debt service requirements for this note
' payable in the water fund and contract payable in the general long-term debt account
group as of June 30, 1998:
,
�
'
Fiscal Year
Endin� June 30,
Water
Fund
General Long-
Term Debt
1999
2000
2001
2002
20Q3
Thereafter
Total
Less amount representing interest
Principal
::��
: :11
::��
::��
: :1�
, • 111
:: 111
'� :: 111
$ 85,000
85,000
85,000
85,000
85,000
169,413
594,413
� - )
44 ^
A reconciliation of long-term debt for the Water Fund at June 30, 1998 is as follows:
Note payable
Capital Lease
Total
'� :: 111
..
..
..
23
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
3une 30,1998
NOTE 6- LONG - TERM DEBT (Continued)
The following is a summary of changes in general long-term debt activity for fiscal 1998:
Revenue Bonds (A)
Compensated absences (B)
Contract payable
Capital leases
Total
Balances Balances
at July l, June 30,
�997 Additions Reductions 199g
$300,000 $8,175,000 $(300,000) $8,175,000
143,734 2,762 - 146,496
- 665,881 ( 71,468) 594,413
348,159 19,350 �143,021) 224,488
�791,89� �8,862,993 4 4 ) $9,140,397
A. Revenue Bond
The 1997 Series Revenue Bonds are callable as follows:
Redemntion Date�
7-1-2008 and 1-1-2009
7-1-2009 and 1-1-2010
7-1-2010 and thereafter
Redemption Price (As
a Percent of Princinall
101.0%
104.5
100.0
Annual debt service requirements to maturity for these revenue bonds are as follows:
Fiscal Year
Ending June 30
1999
2000
2001
2002
2003
Thereafter
Total
Less amount representing interest
Principal
B. Compensated Absence
1997 Series
Bonds
$ 724,362
785,250
788,450
785,623
791,454
8.936,313
12,811,452
� 4,636.452)
', : 111
This consists of the long-term portion of accrued vacation and compensatory time, with
an increase of $2,762 for fiscal 1998.
24
�
��
�
�
TOWN OF MAR.ANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 7- ADVANCED REFUNDING/DEFEASANCE OF DEBT
Part of the proceeds ($625,000) from the 1997 Series Revenue Bonds were used to refund
both the 1990 and 1992 Series Revenue Bonds. The two debt issues refunded had
remaining outstanding balances totaling $545,000. The purpose of the refunding was to
take advantage of lower interest rates, as well as to restructure future debt service
payments. This refunding decreased the Town's total debt requirements by $178,001 and
resulted in an estimated economic gain (the difference between the present value of the
debt service payments on the old and new debt) of $72,934.
The proceeds from this advanced refunding have been deposited in trust with an escrow
' agency and invested in U.S. Govemmental Securities which are designed to meet the
requirements of the refunded debt. This trust is administered by a trustee and is restricted
to the retirement of the refunded debt. As a result, the refunded bonds met the
' requirements of an in-substance debt defeasance and the debt associated with the
refunded issues, as well as the trust assets, have been removed fram the Town's financial
statements. At June 30, 1998 the amount of outstanding principal relative to the 1990 and
' 1992 Series Revenue Bonds was $250,000 and $295,000, respectively, for a cumulative
total of $545,000.
NOTE 8- DEFERRED COMPENSATION PLAN
'
'
'
�
I '
The Town offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all Town employees, permits
them to defer a portion of their salary until future years. Participation in the plan is
optional. The deferred compensation is not available to employees until termination,
retirement, death, or unforeseeable emergency.
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.
I I 25
TOWN OF MARA.NA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
3une 30,1998
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS
A. Arizona Public afetv Retirement � v tem
All of the Town's full-time police officers are covered by the Marana Marshal's Arizona
Public Safety Personnel Retirement System, which is an agent /multiple-employer
administered by the fund manager of the Arizona Public Safety Personnel Retirement
System, defined benefit public employee retirement system (PERS). Authority to
establish and amend the benefit provisions of this pension plan is established by Arizona
State statute. The State of Arizona Public Safety Personnel Retirement System issues a
publicly available financial report that includes financial statements and required
supplemental information for the Marana Marshal's plan. This report may be obtained by
writing to the Arizona Public Safety Personnel Retirement System 1020 E. Missouri
Phoenix, Arizona 85014.
The pension plan provides pension benefits, deferred allowances, death and disability
benefits and limited health insurance benefits. A member is eligible if he is employed in
a covered position prior to attaining age 50 years, for at least 20 hours a week for more
than 6 months a year. A member may retire after reaching the age of 62 and completion
of 15 years service, or completion of 20 years service with the Town. Benefits vest after
10 years of credited service. Police o�cers who retire with 25 or more years of credited
service are entitled to monthly pension payments for the remainder of their lives equal to
50% of average monthly compensation for the first 20 years of credited service with the
Town, plus 2/2% of average monthly compensation for each year of credited service
above 20 years with the Town. Police o�cers who retire with 20 years of credited
service with the Town, plus 2% of average monthly compensation for each year of
credited service between 20 and 25 years with the Town. Police officers who retire with
less than 20 years of credited service with the Town are entitled to monthly pension
payments for the remainder of their lives equal to the average monthly compensation for
the entire service period reduced at a rate of 4% a year for each service year below 20
years of service. The maximum monthly pension payment cannot exceed 80% of the
average monthly compensation.
Pension provisions include deferred allowances whereby a police officer may terminate
his employment with the Town after accumulating 10 or more years credited service.
Pension benefits are then equal to twice the amount of pension benefits based on the
police officer's accumulated contributions. If the police officer does not withdraw his
accumulated contributions, the police officer is entitled to these pension benefits upon
reaching the age of 62.
Q�
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
��
'
�
I '
I '
I 1
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Continued)
A. Arizona Public Safety Retirement System (Continued)
Pension provisions include disability and death benefits. Disabled officers are entitled to
monthly payments for life of 50% of their average monthly compensation or normal
pension amount, whichever is greater, if their disability is service connected, regardless
of years of credited service. Average monthly compensation (AMC) is one-thirty-sixth of
total compensation paid a member during the 3 years, out of the last 10 years of credited
service, in which the amount paid was highest. If the police off'icer'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 off'icer, 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. Wh�en 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
$1,431,000.
Police officers of the Town are required to pay 7.65% of their gross earnings to the
pension plan. The Town makes periodic contributions to the pension plan at actuarially
determined rates that, expressed as percentages of annual covered payroll, are designed to
accumulate sufficient assets to pay benefits when due. The normal cost and actuarial
accrued liability are determined using an entry age actuarial funding method. Unfunded
actuarial accrued liabilities are being amortized as a level percent of payroll over an open
period of 20 years starting July 1, 1998. During 1998, the Town was required to
contribute 4.68% of its police officers' covered payroll to the plan.
27
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Continued)
A. Arizona Publ'c afet Retirement ,� ts em (Continued)
The contribution requirements of plan members are esta.blished 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 1998 were $176,440, of which $66,970 was made
by the Town and $109,470 was made by police officers. The pension contributions
represent funding for normal cost and the amortization of the unfunded actuarial accrued
liability.
A variety of significant actuarial assumptions are used as of June 30, 1998, to determine
the standardized measure of the entry age actuarial accrued liability and these
assumptions are summarized below:
• The present value of future pension payments is computed by using a discount rate of
9%. The discount rate is equal to the estimated long-term rate of return on current
and future investments of the pension plan.
• Future pension payments reflect an assumption of 6.5% (comp�unded annually)
salary increases as a result of inflation.
� Future pension payments reflect an assumption of additional projected salary
increases ranging from 0.0% to 3.0% per year, depending on age, attributable to
seniority/merit.
The actuarial value of the assets was determined using 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, 1998
is as follows:
Active members $ 1,948,469
Retired members and beneficiaries currently receiving benefits 240,229
Vested terminated members not yet receiving benefits -0-
Total actuarial accrued liability 2,188,698
Actuarial value of assets 2,527,484
Unfunded actuarial accrued liability
. .
', cc. ..
28
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Continued)
A. Arizona Public Safetv Retirement S,y�tem (Continued)
Rec�uired Sup�lemental Information
w / • ►/' ! �' ! �: i
Fiscal Annual
Yeax Ended Required
June 30� Contribution
Percent
Contributed
1993 $ I8,629 100.0%
1994 34,052 100.0%
1995 50,947 100.0%
1996 58,775 100.0%
1997 62,948 100.0%
1998 66,970 100.0%
SCHEDITTJE OF FUNDING PROGRESS
(6)
Unfunded
Valuation
Date
e 0
1996
1997
1998
�2)
(1) Entry Age (3) (4)
Actuarial Actuarial Percent Unfunded
Value of Accrued Funded AAL
A.ssets Liabili . (t,�AAL) (11/(21 (21___=__,_(11
$ 1,462,763 $1,260,459 116.1% $ (202,304}
1,956,059 1,862,109 105.0 ( 93,950)
2,527,484 2,188,698 115.5 (338,786)
AAL as a
(5) Percentage
Annual of Covered
Covered Payroll
Payroll f41/(51
$ 965,119 - %
1,275,174 - %
1,398,167 - %
�
TOWN OF MARANA, ARIZONA
NOTES TO COMBTNED FINANCIAL STATEMENTS
3une 30, 1998
NOTE 9- EMPLOI'EE RETIREMENT SYSTEMS (Continued)
A. Arizona Public afetY Retirement System (Continued)
Required up�lemental nformation (Continued)
Fiscal
Year Ended
June 30.
1996
1997
1998
Three Year Trend Information
Annual
Pension
Cost (ApCI
Percent
Contributed
Net Pension
iain
$ 58,775
62,948
66,970
100.0%
100.0
100.0
$0
0
0
No changes in actuarial assumptions or benefit provisions that would significantly affect
the valuation of the unfunded actuarial accrued liabilities occurred during fiscal 1998.
During fiscal 1998 and as of June 30, 1998, the Marana Marshal's Arizona PERS held no
securities issued by the Town or other related parties.
B. Town of Marana Retirement Plan
Effective July 1, 1995, the Town established a Money Purchase Plan and Trust known as
the Town of Marana Retirement Plan (Plan) in the form of the International City
Management Association Retirement Corporation Prototype Money Purchase Plan and
Trust. The prototype plan is qualified under Section 4Q1 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.
30
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30,1998
�J
I '
I '
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Continued)
B. Town of Marana Retirement Pian (Continued)
The Town's total payroll in fiscal year 1998 was approximately $3,530,000. The Town's
contributions were calculated using the earnings amount of approximately $2,260,400.
For fiscal 1998, the covered employees made the required 4% contribution, amounting to
$90,414, with the Town making a smaller contribution due to the application of
forfeitures, amounting to $84,897 for a total of $175,311.
C. Postem .�lo.vment Benefits
The Town offers no postemployment benefits to employees other than the previously
discussed retirement plans.
NOTE 10 - RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters. The Town's insurance
protection is provided by the Arizona Municipal Risk Retention Pool, of which the Town
is a participating member. The limit for basis coverage is for $2,000,000 per occurrence
on a claims made purpose. Excess coverage is for an additional $3,000,000 per
occurrence on a follow form, claims made basis.
The Arizona Municipal Risk Retention Pool is structured such that member premiums are
based on an actuarial review that will provide adequate reserves to allow the pool to meet
its expected financial obligations. The pool has the authority to assess its members
additional premiums should reserves and annual premiums be insufficient to meet the
pool's obligations.
Workers' compensation insurance is placed through the State Compensation Fund.
31
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FIN_ANCIAL STATEMENTS
3une 30,1998
NOTE 11 - EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN
INDIVIDUAL FUNDS
For fiscal year 1998, expenditures exceeded authorized appropriations in the following
individual special revenue funds:
1997 Community Development Block Grant
HIDTA
State of Arizona Police Grants
LTAF'
$ 5,763
4,828
33,310
1,465
The excess expenditures for all of these funds were covered by grant revenues or fund
transfers from the general fund.
At June 30, 1998, there were no individual funds with a deficit fund balance.
NOTE 12 - COMMITMENTS AND CONTINGENCIES
The Town is continuously liable with respect to other claims incidental to the ordinary
course of its operations. At June 30, 1998, it is the opinion of Town management, based
on the advice of the Town Attorney and outside counsel, that any such claims would not
have a material effect on the Town's financial position.
The Town leases office space for its development and planning, police, and magistrate
court departments under noncancelable, long-term operating leases with expirations of
November 1999 through November 2001. Two of these leases requires the Town to pay
its share of real estate taxes, common area charges, and management fees. These same
leases require annual adjustments for increases in the Town's share of real estate t�es,
common area charges, and management fees. However, the increased related to
controllable common area charges and management fees by the landlord cannot increase
more than 4.5% over the prior year. One lease contains two five-year renewal options
and a second lease contains one two-year renewal option at a monthly base rent of either
the then escaiated rental rate or 90% of the prevailing market rental rate at the time of
renewal, and the third lease contains one three-year renewal option at a monthly base rent
of $2,836, plus an adjustment for the increase in the Consumer Price Index (CPI) for the
previous three years at the time of renewal.
32
'
'
�
'
'
�
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1998
NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued)
These leases provide for payments of minimum annual rentals as follows, excluding real
estate taxes, common area charges, management fees, and sales taxes:
Years Ending
un 3
1999
2000
2001
2002
Total
$116,709
124,167
102,538
2 12
72
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, 1998.
Rent expense under the above leases for fiscal 1998 aggregated $62,427.
'
�J
�
NOTE 13 - WATER PRODUCTION CONTRACT
The Town has a contract with Cortaro Water Users to produce substantially all of its
water. Under the contract, the Town pays Cortaro a rate based on water
production/usage. The rates charged are on a tiered-rate structure which provide a
discount for larger volumes of water produced and are subject to annual adjustments.
Water production expense under this contract for the year ended June 30, 1998 was
$50,489.
NOTE 14 - RELATED PARTY TR.ANSACTIONS
During fiscal 1998, the Town passed through $28,887 of its Community Development
Block Grant Programs to a local non-profit health care agency. The Town's mayor is the
executive director of this health care agency. Before making these expenditures, the
Town Council discussed and approved the budget for these expenditures, which were also
approved by Pima County (the Town's grantor for Community Development Block
Grants). The mayor did not participate in the presentation, discussion, or approval of
these expenditures.
33
TOWN OF MARANA, ARIZONA
NOTES TO COMBINED FINANCIAL STATEMENTS
June 30, 1998
NOTE 15 - YEAR 2000 Issue
The year 2000 issues is the result of shortcomings in many electronic data processing
systems and other electronic equipment that may adversely affect the Town's operations
as early as fiscal year 1999.
The Town has completed an inventory of computer systems and ather electronic
equipment that may be affected by the year 2000 issue and that are necessary to
conducting Town operations. Based on this inventory, Town management believes that
its existing hardware and software are year 2000 compliant. In addition, the Town
implemented a policy during fiscal 1998 that it will only make purchases of hardware and
software that are identified as year 2000 compliant. Town management does not believe
it is necessary to do any further or formal testing and validations of the systems.
Because of the unprecedented nature of the year 2000 issue, its effects and the success of
any related future remediation efforts will not be fully determinable until the year 2000
and thereafter. Town management cannot assure that the Town is or will be year 2000
ready, that any future Town remediation efforts will be successful in whole or in part, or
that parties with whom the Town does business will be year 2000 ready.
34
C Ol�ZBINING
�
IND IVID UAL
F UND AND
AC C OUNT
GROUP
1
1
II
i
S TATEMENT S
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, and public works.
�
'
�
'
'
'
,
�
I '
�J
' TOWN OF MARANA, ARfZONA
COMPARATIVE BALANCE SHEETS
, GENERAL FUND — EXHIBIT A-1
June 30, 1998 and 1997
' 1998
ASSETS
, Cash $ 315,952
I nvestm ents 10, 982 , 353
Receivables:
' Taxes 791,778
Othe r 62, 544
Prepaid expenditures 42,000
Due from other funds 70,602
' Restricted assets: —
Cash
Investments
� TOTAL ASSETS $ 12,265,229
LIABILITIES AND FUND EQUITY
' LIABILITfES
' Accounts payable and accrued expenses $ 1,595,950
Due to other funds 326,207
Deferred revenue 126,280
' Totalliabilities 2,048,437
FUND EQUITY
' Reserved for prepaid expenditures 42,000
Reserved for restricted assets —
' Unreserved fund balances 10,174,792
Total fund equity 10,216,792
, TOTAL LIABiLITIES AND FUND EQUITY $ 12,265,229
1997
$ 76,301
7,171,656
766, 890
43, 557
43, 000
96, 490
6,997
12,174
$ 8,217,065
$ 380,161
70, 844
64, 465
515, 470
43, 000
7,388
7,651,207
7,701,595
$ 8,217,065
35
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED
FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - EXHIBIT A-2
Year Ended June 30, 1998
REVENUES
Taxes; Town sales tax
Other agencies
Sales taxes - state
State revenue sharing
Auto lieu taxes - state
Total other agencies
Licenses, fees and permits
Building permits
Development fees
Cable television franchise fees
Business licenses
Other
Total licenses, fees and permits
Fines, forteitures and penalties;
Town courtfines
Interest
Miscellaneous
Other
Annexation revenue
Balance available from prior years
Tota{ miscellaneous
Totai revenues
OTHER FINANCfAL SOURCES
Bond proceeds
Transfers from other funds
Lease purchase proceeds
Totai otherfinancial sources
Total revenues and other financial
sources
EXPENDITURES
General government
Other general government
Personal services
Contractual services
Special programs
Oth e r
Contingency
Capitai outlay
Debt service
Total other general government
Variance -
Favorable
Actual Budget (Unfavorable}
$ 7,850,847 $ 6,676,215 $ 1,174,632
411,635 380,548 31,087
465,629 454,230 11,399
236,083 75,000 161,�83
1,113,347 909,778 203,569
1,454,933 1,000,000 454,933
362,383 - 362,383
36,730 - 36,730
17,230 16, 250 980
24, 696 6, 500 18,196
1,895,972 1,022,750 873,222
135, 081 125, 000 10, 081
473,574 350,000 123,574
8,569 50,000 (41,431)
- 1,118,860 (1,118,860)
- 3,409,345 (3,409,345)
8,569 4,578,205 (4,569,636)
11,477,390 13,661,948 (2,184,558)
- 2,635,897 (2,635,897)
933,700 - 933,700
19, 350 - 19, 350
953,050 2,635,897 {1,682,847)
12,430,440 16,297,845 (3,867,405)
28,384 - (28,384)
182,459 431,000 248,541
61,205 57,000 (4,205)
279,603 312,716 33,113
- 376,719 376,719
7,648 1,000 (6,648)
5,000 25,418 20,418
564,299 1,203,853 639,554
36
'
' ,
TOWN OF MARANA, AR(ZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED
FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - EXHIBIT A-2 (Continued)
Year Ended June 30, 1998
EXPENDITURES (continued)
General government (continued)
Mayor and councii
Contractual services
Commodities
Other
Contingency
Capital outlay
Debt service
Total mayor and council
Human resources
Personal services
Contractual services
Commodities
Special programs
Other
Contingency
Capital outlay
Total human resources
Accounting and finance
Personai services
Contractual services
Commodities
Other
Contingency
Capital outlay
Total accounting and finance
Administration
Personal services
Contractuai services
Commodities
Other
Contingency
Capital outlay
Debt service
Total administration
Total general government
Variance -
Favorable
Actual Budget (Unfavorable)
$ 795 $ 2,350 $ 1,555
5,092 6,400 1,308
15,247 40,650 25,403
- 2,000 2,000
- 3,000 3,000
2,814 3,145 331
23,948 57,545 33,597
70,822 72,320 1,498
7, 699 12, 000 4, 301
4,422 - (4,422}
- 119,000 119,000
72,362 74,001 1,639
- 23,38i 23,381
4,846 17,000 12,154
160,151 317, 702 157, 551
89,660 153,916 64,256
25,202 34,000 8,798
11,483 8,850 (2,633}
5,563 28,815 23,252
- 17,842 17,842
1, 020 19, 000 17, 980
132,928 262,423 129,495
312,309 319,412 7,103
15,724 14,850 (874)
26,008 19,000 (7,008)
27,633 23,390 (4,243)
- 2,000 2,000
7,306 9,000 1,694
5,961 5,628 (333)
394,941 393,280 (1,661)
1,276,267 2,234,803 958,536
37
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, 1998
EXPENDITURES (continued)
Development and planning services
Building services
Personal services
Contractual services
Commodities
Other
Contingency
Capital outlay
Total building services
Planning and zoning
Personal services
Contractual services
Commodities
Other
Capital outlay
Total planning and zoning
Total development and planning
services
Town attorney
Tax
Water
P rosecution
Annexation
General services
Total town attorney
Police
Personal services
Contractual services
Commodities
Other
Contingency
Capital outlay
Debt service
Total police
Fire
Contractual services
Total fi re
Variance -
Favorable
Actual Budget (Unfavorable)
270,985 261,485 (9,500)
35,230 38,200 2,970
18, 957 19, 900 943
18,534 23,070 4,536
- 2,000 2,000
53,281 47,500 (5,781)
396,987 392,155 (4,832)
$ 272,279 $ 309,609 $ 37,330
47,742 82,200 34,458
20,632 19,800 (832)
25,624 31,100 5,476
29,693 17,000 (12,693)
395,970 459,7Q9 63,739
792,957 851,864 58,907
25, 821 40,000 14,179
8, 501 24, 000 15, 499
131,554 90,000 (41,554)
17,302 20,000 2,698
174,290 153,000 (21,290)
357,468 327,000 (30,468)
1,782, 42 8 1, 856, 971 74, 543
172,399 139,000 (33,399)
111, 612 124, 885 13, 273
75,057 89,078 14,021
- 522,333 522,333
148,135 210,162 62,027
91,708 94,893 3,185
2,381,339 3,037,322 655,983
486,490 462,060 (24,430)
486,490 462,060 (24,430)
38
[�
,
,
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED
FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND - EXHIBIT A-2 (Continued)
Year Ended June 3�, 1998
EXPENDITURES (continued)
� Magistrate court
Personaf services
� Contractual services
Commodities
Other
Contingency
Capital outlay
, Debt service
Total magistrate court
, Public works
Personal services
', Contractual services
Commodities
Other
Contingency
' Capital improvement projects
Capital outlay
Debt service
Total public works
Variance -
Favorable
Actual Budget (Unfavorable)
196,785 24�,718 48,933
42,903 92,120 49,217
15,237 10,000 (5,237)
7, 893 16, 530 8, 637
- 159,452 159,452
19,350 14,500 (4,850)
3,507 - (3,507)
285,675 538,320 252,645
$ 498,217 $ 620,832 $ 122,615
2,150,581 2,823,648 673,067
217, 561 227, 800 10, 239
82,367 87,Oi0 4,643
- 144,306 144,306
5,111,788 5,111,788
367,063 264,140 (102,923)
130,968 49,402 (81,566)
3,446,757 9,328,926 5,882,169
Total expenditures
, OTHER FINANCIAL USES
9,026,953 16,780,295
Transfers to other funds 712,460
7,753,342
- (712,460)
, Total expenditures and other
financial uses 9,739,413 16,780,295 7,040,882
, Excess of revenues and other
financial sources over expend-
itures and other financial uses
, OTHER CHANGES IN FUND EC4UITY
Decrease in reserve for prepaid' expenditures
Decrease in reserve for restricted assets
Residual equity transfers out
I UNRESERVED FUND BALANC�,
BEGINNING
� UNRESERVED FUND BALANC�,
2,691,027 $ (482,450) $ 3,173,477
1, 000
7,388
(175,830)
7, 651, 207
- ENDINC.� $10,174,792
I '
39
'
'
,
STATEMENTS B
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues derived from specific taxes or
other earmarked revenue sources. They are usually required by statute or Federal grant
regulation to record particular operating functions of the Town.
Federal Grant Fun� - includes the Community Development Block Grants, the HOME
Program, the COFS Grant, GITEM, HIDTA, and MANTIS. The separate funds have
been established to account for grant revenues and to provide compliance with Federal
grant regulations.
Other Cr_rant Func�s - includes RICO, State of Arizona Police Grants, LTAF, and
Highway User Re�enue. These funds are non-federal funds required by Arizona Statutes
to be used for poliee or public works expenditures.
r
�
m
I--
p w= X
N�{,Jj
Q W I �
U
Zg��
� Z
am��
�(7= c
iyZZ�
OZW
Z C� W
OU�
¢
U
W
�
�
�
W
F--
�
�
U
�
� � �
�.�.� � �
UU�
� �
ro
O�
w�
� �
O °'
= a`
« � C
�C �
�
� � O Y
O > O
UOm
rn rn
N (V
� �
I I I
� Ef3
� N O f�
M M � �
�"' T T �
I
v3 �
� �
� �
� �
� � �
E�3 (/�
rn rn
N N
'I I I
� �
�ro �
�� �
T OD O
� c � �n
� �
O T
C V C�p
r C�i
( �
� �
�
c
w w
m y �
� o � u.i
� o � �
�a Q
� > � � ` L
�m��d� ¢
N Ua��o�v O
¢ F-
rn rn
N N
� �
I
K3
I II I
�
� �I �
� � �
rn rn
N N
I
�
I I I I
� � �
� �
N N
�
�
N
N
N
�
�
w a
U �
Z - a
5 �
Q �
m V
0 �
Z �
�
R
y
Q � C N
Q m `� =
Q� �
w w .� o =
F- F- � O o
¢ ¢ Q° ~
J J
co
rn
N
�
I I I
ff3
m � M C9
r co �r v
+— N � 'V'
T
�
� � �
T
� � �
� � �
'
�
�
rn
N
i I I
�
� c� m
n n i.
� � �
I
. �
M
�
N
I I i
�
W
U
Z
g
a
m
0
� Z
r�n y L
N
� U �
L
� � U a
.� � N LLJ
V �� � H
g °� � m
� > Q
m > a`> � J
d� � �
� ¢� O
LL �
v
�
d
7
C
Y
C
�
U
T-
Q
O W �
S
��m
aW=�
U �
Zg��
�o
�
� � Z C
LL Z � �
OZ�
ZmW
�
�Uw
>
w
�
�
Q
U
W
a
�
N 7
L N d
�� �
= LL
o � d �
� N � tC
cndaC�
�
H
Q
�
Q
H
�
2
a n c n °
�n " � o " iri
� .- 1� ln r tf'
O
F--
� �
� �
� �
� � � � �
�3 �
� �
rn rn
� �
I I I T
� �
� �
117 tn
I I I
� �
rn rn
v v
I I I
� �
�
c
� N
N y � a y i O � LL
� �� �
c� >_ �, � ` Q
� �.
� �O � dU a
� U� �� �
Q O
c� n rn
� V�' N
(D N
T L() �
ff3 I
M M �
O� O c0
co ch
r (h
�
� �
rn rn
m �
I T
�
�V R
� �
I
u�
� �
rn rn
c v
I
�
N
m
N
�
W Q
U m
5 �°
m
Q 7
� U
U
� �
Z �
C
L m �
� -� � �
Q � � _
� � �
W W �o =
F- F- � o 0
Q ¢ a� ~
J J
o rn rn o�
no m °
r �i ri �ri �
r fD ti V'
EA
V
�
�
� � � �
fA
m
rn
�
I I I
�
N
�
�
I I I
�
�
rn
v
I I I
�
w
U
Z
g
m
0
N Z
N y L1.
N
� � �
� � U a
� � f° W
w �°
v �� � �
Z p � � J
5 "" ' Q
�
m > C� � J
o � �3 � �
� �= o
N
C
1
�
'
'
'
y
W
2
' a
m
0
z
�
LL
Z
y
W
�
' Z N
Q �
S
U�
G�m
Z
O a = �
' N Vj W Cr
�
Q� � o
� y M
<2> >
' ¢ W LL �
�W�
O y W W
2 = � �
' ��Z�}
� W
LL d
, O y
N
2
W
�
W
' a
N
C7
Z
Z
' m
�
O
U
'
'
�
'
,
�
U
�
u..rv
� o' �
UU�
� c
d
ro
O�
W �
� �
O p
=
� � c
�
C
p�j E O �
T o > s
U�ra
.�. y C
.� E i°
�
rnEoY
� o > s
U � o0
>, c �
`� d m
`c �
�
rn � o Y
�U �o s o
0
>, c �
�" °' m
� 'c
�
rnEos
�o>s
U p m
>, c �
� � �
'c
N � �
O�I E O y
o > s
U�a1
� N
� M 1� f�
� � � a
I I I I I � I I I� I
va
ro �o �
� � �
I I t I I I I I � I I� I �
es
c v v
I I I I I I� I I I i� I �
�
0
o � � �
n m m
0 0 0 0
I I 1 T I I I I I I �� I �
�
�
0 0 ffi n
� n
I I I N I I I 1 I I I N N
�
� O O
� O O
ro co m
I I I� I I I I I I I� I �
vs
� � �
I I I� I I I 1 I 1 I� I �
5r
0
a ° v ° v
I I I I I I i I I I I
�
� � �
N N N
I I I I I I I I I I N N � N
aa
m m 01
I� I i a l �
I I 1 I I I I I I
v c �
I � I I � I �
0 0 0
0 0 0
0 0 0
I I I r I
� ° o rn m �
(O O O f _ f�
� � (0 N N
I 1
O N � O O
o co m co co
`t ' `t�n � n
I I I I I I I I i
a ° v
I I I I
� � ° o �
� � t� N
� � � N
� � � r
� � ��
V 01 a
� T I �
es
� �
� �
� I I �
�
I 1 I I
� �
r n
� �
1 I
�
I I I I
�
I I I I
� �
a
0
� �
� I � I
I I I I
I I I I
I
V U � ^ N
•- C � C � 7
j 61 U a L 16 �I
-�Q � N � y�o Z
_ � ~ W � � c C7
o c�' ° Q_ U � `m c d'� 2
N �e e�� m e � �� m m y � > o�. Z � Z
¢ j o N�U �� o a. p� o � a yv v ` air W v�, Z
N � �c > v N'� a� o � c c p�•-
y'� �.E ���? c c y �° E d a V � „ �a � o o] y w
d Q F Q. •- '�- � W l0 y N -, L � �` > d -� N �. p V N
d d a� y n. Q� y �� y �� U o � �.4 > y v U L ? N ��`° W � W
y '�'.. N N 7 7 U 7 Z� 7 W� 'L �'� = O d U U d U U
v� �>.m''� �� c �`�a °'° = d n. a � °c ' y 7 a� 3= a Q � �a�i' •°' m� g •� a
W �s y y rn�� N 3� ° _ ` Z y `� F- �`= m U E X Z N a� � �� Q J
� b 3,� o s o g� c in `_° d_ ti d � 0= � o� E m u. `m y'u H`' c Q d Q
W �S �� � o d u�i� o W� o v W�C7a o W� :� � c °' iL X ❑ � p
��xa �� F- = H , ~ 4, U F- =F F;� w° d = y Z
� F- X f'
O W O LL � LL
�
O
F
N
W
U
Z
Q
J
Q
m
C
Z
�
LL
Z
y �
W �
� e
2 ;:,
Q c
= o
UV
O
NyF-�
� W m �
¢¢=o
� M
a ~ W d
�Z � �
Wy
�W
Oyl
Z W W �
O ; � r
LLI W
� 2
LL J
O<
2W
W N
�
W
H
6
F-
y
C'3
Z
Z
m
�
O
U
C
°' E
¢ .=_°- y `�
a a>
W � O o
U �a
E
� �
3�,�
rn� �
_ ¢
�
J
o = d �
.y p U C
v �Qa ° �
�
z
¢
�
H
0
S
�
w
F
�
�����
c7 R l0 c0 c7 f� n O � f� N aD
o�c�nr�iov_vo �oao o�?
a N 01 n ��O O N �(O
(�7 +- N O
A'J
O IO
0 0
f I I I I I I° I I I°
�
m ^
rn "
rn
N nj
� 1 I I I I 1 I I I I�
� I
v v
I I I I I� I I I I 1�
�
0 0
� �
n n
N N
�� � � � � � � � � ��
�
o p
� �
� �
�
i i� I 1 I I I I I I a
f»
M �
rn
ro �
rn m
1 I� I I I I I I I I a
vi I
rn �
a O1
v_
v �
I� I I I I I 1 1 I 1�
bs
O
n
m
N
�
1
I
I
�
�
�
O
O
0
0
0
m
rn
N
�
a
° a
N
N
N
v
a
n
ri
�
�
oi
a
rn
v_
v
�
� Na' N
� O N �O �D
N O! [O In ln
N a r 01
O O
o ° o_
I I ° I °
� m
rn rn
N N
I I � I �
v v
I I a I �
� N
N CY
I � i I a
0 0
m �
t� c�
I a I I �
a�i rn
� �
rn rn
I � I i �
O
0
n
�
1
I
I
rn rn
c a
v v
I � I I � I
N
cQi
�
�
0)
O
0
0
0
�
rn
N
M
v
a
�
n
v
v
0
n
c�n
st
rn
a
�
v
v
m
� � � �
N m t7 [O
� r (O I�.
� I tf1
I I I , I
I I I I
�
I I I I
I t I I
a
I I I I
I I I i
�
I I I 1
a y
� U �
� C � d 7
. � � C �
�
w "�Q y y � Hv`° Z
c �'� p � W � � c
o c� 2%- U � m` c`m � 2 C7
N � � o� y � � s v d m N L > o w 2 Z
a � oUCj rt0 o a O� � c a t v �' � a, U' o �
y !tl C
`_ o = o L
w �� E'� ovi�>v N . d o c c `« W � Z
�QFd�Q7 W y� � Q= � � � � d Q� � � �-�p m y W
I I I � � I I y � y N a N y.4 > u, �=' U�« � N d b� W � W
M y �O . N
N c T a? � c �-a d � r � o c Q o c y S y Pn o'c d Z o c`� y c� Z �` Z
W�'as c o-> Z > p m 3 X 2 °' v m g' g
m o � o o ° o � w m d H � m o E� X m �� s
L=� Y � (� C N= N� LL d � 0 C C V Q E� LL d d U N� C Q 6 � Q
W L� 7 7 4 V� 3� C O d N N O {L � O�N W t C7 a a U O LLJ L « C V L X' � a �
� O = d � m� J d a. ��- C� �- �� � X � F � F �� W �� z N Z
� O W O u�. ¢ u�.
r TOVVN OF MARANA, ARIZONA
1994 COMMUNITY DEVELOPMENT BLOCK GRANT — SPEClAL REVENUE FUND
STATEMENT OF RE�ENUES, EXPENDITURES AND CHANGES IN
t FUND BA�ANCE — BUDGET AND ACTUAL
EXHIBIT B-3
Year Ended June 30, 1998
,
� REVENUES
Other agencies
' Block grants — Pima County'
Total revenues
, EXPENDfTURES
Current operations
' Community development
Total expenditures
, Excess of revenues
over expenditures
' FUND BALANCE, BEGINNWG
FUND BALANCE, ENDING
'
,
,
,
'
'
'
'
1
,
Variance —
Favorable
Actual Budget (Unfavorable)
$ 40 $ 22,000 $ (21,960)
40 22,000 (21,960)
40 22,000 21,960
40 22,000 21,960
$ — $ — $ —
45
TOWN OF MARANA, ARIZONA
1995 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBfT B-4
Year Ended June 30, 1998
Variance —
Favorable
Actual Budget {Unfavorable)
REVENUES
Other agencies
Block grants — Pima County
Total revenues
EXPENDITURES
Current operations
Community development
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
Residual equity transfers out
FUND BALANCE, ENDING
$ 63,350 $ 65,000 $ (1,650)
63,350 65,000 (1,650)
— 65,000 65,000
— 65,000 65,000
63,350 — 63,350
63,350 — (63,350)
$ — $ — $ —
46
i�
C�
TOWVN OF MARANA, ARIZONA
1996 COMMUNITY DEVELOp'MENT BLOCK CaRANT — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDC�ET AND ACTUAL
EXHIBIT B-5
Year Ended June 30, 1998
� REVENUES
� Other agencies
Block grants — Pima Counry
Total revenues
, EXPENDITURES
, Current operations
General government
Public works
', Community development
Total expenditures
� Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
� FUND BALANCE, ENDING
�
I '
I '
I �
'
'
( '
Variance —
Favorable
Actual Budget (Unfavorable)
$ �s,eoo $ so,000 $ (i � ,200)
7e,eoo 90,000 (ii,2oo�
4,097 — (4,097)
4,824 30,000 25,176
69,879 60,000 (9,879)
78,800 90,000 11,200
$ — $ — $ —
47
TOWN OF MARANA, ARIZONA
1997 COMMUNIlY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBfT B-6
Year Ended June 30, 1998
Variance —
Favorable
Actual Budget (Unfavorable)
REVENUES
Other agencies
Block grants — Fima County
Total revenues
OTHER FINANCIAL SOURCES
Transfers from other funds
Total revenues and other financial
sources
EXPENDITURES
Current operations
General government
Public works
Community development
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNINC-,
FUND BALANCE, ENDING
$ 121,095 $ 122,000 $ (905)
121,095 122,000 (905)
��' '�'
�
127,763 122,000 5,763
16,668 10,000 (6,668)
50,000 55,000 5,000
61,095 57,000 (4,095)
127,763 122,000 (5,763)
$ — $ — $ —
48
, TO!WN OF MARANA, ARIZONA
HOME PRCIGRAM — SPECIAL REVENUE FUND
' STATEMENT OF REWENUES, EXPENDITURES AND CHANGES IN
FUND BaLANCE — BUDC�ET AND ACTUAL
. EXHIBIT B-7
1"ear Ended June 30, 1998
,
, REVENUES
� Other agencies
Block grants — Pima Counry
Miscellaneous
Sales proceeds
, Total revenues
EXPENDITURES
, Current operations
Community development
' Total expenditures
Excess of revenues
' over expenditures
FUND BALANCE, BEGINNING '
' FUND BALANCE, ENDING
,
'
,
,
'
'
'
�
'
Variance —
Favorable
Actual Budget (Unfavorable)
$ 10, i 00 $ — $ 10,100
50,766 210,000 (159,234)
60,866 210,000 (149,134)
10,100 210,000 199,900
10,100 210,000 199,900
50,766 — 50,766
$ 50,766 $ - $ 50,766
49
TOWN OF MARANA, ARIZONA
COPS GRANT — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-8
Year Ended June 30, 1998
REVENUES
Other agencies
Public safety — U.S. Dept of Justice
Total revenues
EXPENDITURES
Current operations
Police
Total expenditures
Deficiency of revenues
under expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
Variance —
Favorable
Actual Budget (Unfavorable)
$ 64,473 $ 79,871 $ (15,398}
64,473 79,871 (15,398)
64,473 79,871 15,398
64,473 79,871 15,398
$ — $ — $ —
50
r
,
TOWN OF MARANA, ARIZONA
RICO — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-9
Year Ended June 30, 1998
'
� REVENUES
, Other agencies
RICO funds — Pima County
Interest
, Total revenues
EXPENDITURES
' Current operations
Police
Total expenditures
' Deficiency of revenues
under expenditures
, FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
'
'
,
'
'
'
�J
'
I '
�
Variance —
Favorable
Actual Budget (Unfavorable)
$ 639 � 22, 380 $ (21, 741)
832 — 832
1,471 22,380 (20,909)
4,950 22,380 17,430
4,950 22,380 17,430
(3,479) — (3,479)
17,916 — 17,916
$ 14, 437 $ — $ 14, 437
51
TOWN OF MARANA, ARIZONA
GITEM — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-10
Year Ended June 30, 1998
Variance —
Favorable
Actual Budget (Unfavorable)
REVENUES
Other agencies
Public safety — Arizona
Totai revenues
EXPENDITURES
Current operations
Police
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
$ 84,493 � 104,892 $ (20,399)
84,493 104,892 (20,399)
84,493 104,892 20,399
84,493 104,892 20,399
$ — $ — � —
52
' TOWN OF MARANA, ARIZONA
HIDTA — SPECIAL REVENUE FUND
' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-11
Year Ended June 30, 1998
'.
'` REVENUES
' Other agencies
Public safety — Tucson
Total revenues
EXPENDITURES
Current operations
' Police
Total expenditures
' Excess of revenues
over expenditures
' FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
�
,
'
'
'
,
�
'
'
'
Variance —
Favorable
Actual Budget (Unfavorable)
$ 49,893 $ 45,065 $ 4,828
49,893 45,065 4,828
49,893 45,065 (4,828)
49,893 45,065 (4,828)
$ — $ — � —
53
TOWN OF MARANA, ARfZONA
MANTlS — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBfT B-12
Year Ended June 30, 1998
Variance —
Favorabie
Actuai Budget (Unfavorable}
REVENUES
Other agencies
Public safety — Tucson
Total revenues
EXPENDITURES
Current operations
Police
Total expenditures
Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
$ 43, 870 $ 48, 823 $ (4, 953)
43,870 48,823 (4,953)
43, 870 48, 823 4, 953
43,870 48,823 4,953
$ — $ — $ —
54
, TOWN OF MARANA, AR[ZONA
STATE OF ARIZONA POLICE GRANTS — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
, FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-13
Year Ended June 30, 1998
'
� REVENUES
Other agencies
� Pubfic safety — Arizona
Total revenues
' OTHER FINANCIAL SOURCES
Transfers from other funds
' Total revenues and other financial
sources
, EXPENDITURES
Current operations
- Police
, Totai expenditures
' Excess of revenues
over expenditures
FUND BALANCE, BEGINNING
' FUND BALANCE, ENDING
'
�
'
'
'
'
'
�
Variance —
Favorable
Actual Budget (Unfavorabie)
$ 42,750 $ 10,942 $ 31,808
42,750 10,942 31,808
1,502 — 1,502
44,252 10,942 33,310
44,252 10,942 (33,310)
44,252 10,942 (33,310)
$ — $ — $ —
55
TOWN OF MARANA, ARIZONA
LTAF — SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES iN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-14
Year Ended June 30, 1998
Variance —
Favorab(e
Actual Budget (Unfavorabfe)
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
$ 40,471 $ 39,006 $ 1,465
40,471 39,006 1,465
40,471 39,006 (1,465)
40,471 39,006 (1,465)
$ — $ — $ —
56
r TOWN OF MARANA, AR(ZONA
HIGHWAY USER REVENUE — SPECIAL REVENUE FUND
, STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCE — BUDGET AND ACTUAL
EXHIBIT B-15
Year Ended June 30, 1998
1
� REVENUES
� Other agencies
Highway user fees — Arizona
Totai revenues
' EXPENDITURES
Current operations
' Public works
Total expenditures
' Excess of revenues
over expenditures
, FUND BALANCE, BEGINNING
FUND BALANCE, ENDING
�
,
'
'
'
,
'
,
,
'
Variance —
Favorable
Actual Budget (Unfavorable)
$ 382,937 $ 409,004 $ (26,067}
382,937 409,004 (26,067)
382,937 409,004 26,067
382,937 409,004 26,067
$ — $ — $
57
STATEMENTS C
CAPITAL PROJECTS FUNDS
Capital Projects Funds are created to account for the purchase or construction of major
capital facilities which are not financed by the general, enterprise, or special revenue
funds. '
1997 General Obligation a�ital Pro�ect Fund - this fund accounts for the proceeds from
the sale of the 1997 general obligation bonds which are used for authorized capital
improvements.
Other Ca�ital Pro�ect Funds - this fund accounts for the purchase or construction of major
capital facilities which are not funded by general obligation bonds.
'' TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUNDS — EXHIBIT C-1
��� , June 30, 1998
'
�
, ASSETS
,- Due from other funds
Restricted assets:
Investments
' TOTAL ASSETS
LIABILITIES AND FUND E�UITY
' LIABILITIES
Deferred revenue
' Totalliabilities
FUND EQUITY
,
Designated for subsequent years' expenditures
' Total fund equify
TOTAL LIABILITIES AND FUND EQUITY
,
,
'
,
'
'
'
,
1997
General
Obligation
Other
Capital
Project
Funds
Totals
$ — $ 276,000 $ 276,000
4,905,752 — 4,905,752
$ 4,905,752 $ 276,000 $ 5,181,752
$ — $ 276, 000 $ 276, 000
— 276, 000 276, 000
4,905,752 — 4,905,752
4,905,752 — 4,905,752
$ 4, 905 752 $ 276, 000 $ 5,181, 752
59
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUNDS - DCHIBIT C-2
Year Ended June 30, 1998
REVENUES
Other agencies
15% HURF funds - Arizona
Arizona Department of Transportation
Marana School District
Interest
Totalrevenues
OTHER FiNANCIAL SOURCES
Bond proceeds
Tranfers from other funds
Conversion of accounts to note payable
Total other financial sources
Total revenues and other financial
sources
EXPEND ITU RES
Debt service
Principal retirement
Rscal agent fees/bond issuance costs
Capital improvement projects
Tangerine Road Project
O'Reilly Infrastructure Improvements
Marana Park Improvements
Arizona Pavilions Drive Improvements
Lon Adams Road Improvements
Business Park Drive Improvements
Ina/Meredith Traffic Signal Improvements
Silverbell/Cortaro Improvements
Price Club Loop Connect Improvements
Safety Light Improvements
Moore Road/Sandario Aoad Improvements
Hartman Lane Improvements
Orange Grove Embankment Improvements
Total expenditures
OTHER FINANCIAL SOURCES
Transfers to other funds
Total expenditures and other financial uses
Excess of revenues and other financial sources
over expenditures and other financial uses
FUND BALANCES, BEGINNING
Residual equity transfers out
FUND BALANCES, ENDItVG
Other
1997 Capital
General Project
Obligation Funds Totals
$ - $ 847,642 $ 847,642
- 405,461 405,461
- 39,340 39,340
186,031 - 186,031
186,031 1,292,443 1,478,474
8,175,000 - 8,175,000
- 675,983 675,983
- 665,881 665,881
8,175,000 1,341,864 9,516,864
8,361,031 2,634,307 10,895,338
295,000 - 295,000
359,042 - 359,042
- 1,290,726 1,290.726
- 665,881 665,881
- 426,695 426,695
358,929 36,273 395,202
262,441 fi2,054 324,495
246, 272 (6,109) 240,163
196,332 38,037 234,369
126,434 41,509 167,943
- 28.105 28,105
- 30,645 30,645
- 16,441 16,441
- 2,709 2,709
- 1,341 1,341
1,844,450 2,634,307 4,478,757
1,220,553 - 1,220,553
3,065,003 2,634,307 5,699,310
5,296,028 - 5,296,028
(390,276) - (390,276)
$ 4,905,752 $ - $ 4,905,752
60
' '
�.
STATEMENTS D
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
goods or services to the general public are recovered primarily through user charges. The
Water Fund was established to account for the financing and operation of the Water
Utility. All activities necessary to provide water services to Town residents are
accounted for within this fund.
TOWN OF MARANA, ARIZONA
COMPARATIVE BALANCE SHEETS
WATER FUND - EXHIBIT D-1
June 30, 1998 and 1997
1998
ASSETS
CURRENT ASSETS
Receivables:
Other
inventories
Restricted assets:
Cash
I nvestm ents
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
Total
Less accumulated depreciation and
amortization
Total property, plant, and equipment
TOTALASSETS
LIABILITIES AND FUND EGlUI'TY
CURRENT LIABILITIES
Accounts payable and accrued expenses:
Deposits
Accrued payroll
Accrued interest
Total
Due to other funds
Current portion of capital lease
Current portion of note payable
Current portion of revenue bonds
Totai current liabilities
LONG-TERM LIABILITIES
Capital lease, less current maturities above
Note payable, less current maturities above
Revenue bonds, less current maturities above
Total long-term liabilities
Total liabilities
FUND EGlUITY
Contributed capital
Deficit
Total fund equity
TOTAL LIABILITIES AND FUND E�UITY
� 56, 287
22,268
78,555
14, 720
50,000
1,743,869
26,541
43,491
39, 388
1, 918, 049
176, 510
1,741,499
$ 1,820,054
$ 35, 900
2,578
38,478
1$,145
8, 834
8,800
74, 257
7, 024
79, 200
86, 224
160, 481
2, 000,086
(340, 513)
1, 659, 573
$ 1,820,054
1997
$ 26,569
21,983
301
600, 00 0
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
(170,101)
1, 200, 52 9
$ 1,522,335
61
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
FUND EG�UITY - BUDGET AND ACTUAL
WATER UTILI7Y FUND - EXHIBIT D-2
Year Ended June 30, 1998
OPERATING REVENUES
Current use charges
Other
Total operating revenues
NONOPERATING REVENUES
Interest income
Bond proceeds
Total nonoperating revenues
Total revenues
OPERATING EXPENSES
Materiai, supplies, and other expenses:
Personal services
Contractual services
Commodities
Other
Contingency
Depreciation expense
Total operating expenses
NONOPERAT{NG EXPENSES
Bond interest expense
Bond fees
Capitai outlay
Tota! nonoperating expenses
Total expenses
NET INCOME (LOSS)
Transfers to otherfunds
DEFICIT, BEGINNING
DEFICIT, ENDINC,.
CONTRIBUTED CAPITAL, BEGINNING
Residual equity transfers in
CONTRIBUTED CAPITAL, ENDING
FUND EC�UITY, ENDING
Variance -
Favorable
Actual Budget (Unfavorable)
$ 405,624 $ 564,000 � (158,376)
15,673 70,000 (54,327)
421,297 634,000 (212,703)
206 - 206
- 4,373,190 (4,373,190)
206 4,373,190 (4,372,984)
421,503 5,007,190 (4,585,687)
130,615 153,425 22,810
198,001 442,180 244,179
105,694 65,749 (39,945)
46,079 88,126 42,047
- 5,000 5,000
94,336 - (94,336)
574,725 754,480 179,755
- 44,170 44,170
1,121 - (1,121)
- 3,656,090 3,656,090
1,121 3,700,260 3,699,139
575,846 4,454,740 3,878,894
(154,343) 552,450 (706,793)
(16,069) - (16,069)
(170,101) - (170,101)
(340,513) 552,450 (892,963)
1,370,630 - 1,370,630
629,456 - 629,456
2,000,086 - 2,000,086
$ 1,659,573 $ 552,450 � 1,107,123
62
STATEMENTS E
GENERAL FIXED ASSETS ACCOUNT GROUP
The General Fixed Assets Account Group is comprised of those fixed assets of a
governmental jurisdiction which are not accounted for in the Enterprise Fund.
Infrastructure assets, which include roads, bridges, streets, and street lighting systems are
not included in these schedules.
I TOWN OF MARANA, ARIZONA
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE
, EXHIB{T E-1
June 30, 1998 and 1997
1998 1997
' GENERAL FIXED ASSETS
, Land $ 63,293
Buildings 345,449
Assets under capital lease 762,373
' Machinery, equipment, and other assets 1,817,942
Marana Park 555,090
Leasehold improvements 216,162
� TOTAL GENERAL FIXED ASSETS $ 3,760,309
,
' INVESTMENT IN GENERAL FfXED ASSETS BY SOURCE
From Current Revenues $ 3,418,719
From Revenue Bonds _
' From Federal Grants 341,590
TOTAL INVESTMENT IN GENERAL
FIXED ASSETS $ 3,760,309
'
'
'
'
'
'
'
'
'
63
'
$ 73,310
444, 61 9
812, 980
1,308,382
450,345
199, 377
$ 3,289,013
$ 2,621,022
255, 750
412,241
$ 3,289,013
'
�
�
� �
C
f-' C6
Q �
n
z �, •--�
� �
� � � �
C
V _C D.. �
Q Z � �7 "�
O LL � W cS5
N �-
�m
¢ � N �
ZI— °���
�cW ~° Q �U
�
� Q = C
Ll 0 W �
0 w
X
3"
J
� �
W
Z
W
C7
�
O
W
J
�
�
W
2
U
�
O � � N � � � «�
� � r N T cp �t O
� � C� 7 N � O�i � ( r
O
F- r c�
H3 {fl
N � � N
� N ln (�O �
� � � O r �
N � r
i I I I N
� o
J
� � H4
� �
y � O O
� I I I I I I
� �
� �
� t� C'� C� � CD N
� N CO C � N C m
N
N T V � N � � (�p ~
N N t0 (O t0
Q �
� Sg
N N C'�') t� C
� I 1 m � � I I �
,J � N 1�
� �
N � � � � �
C r [t
"Q O � � � M CO � �
�� N �
m
� �
�
� o rn
-� N O N
J � I I i I � I �
t� �
�
F-
W
�
= � Q
> = c �
Q � � Q o X
'6 N p LL
� � � � � � J
O � � � � V �
�
� p a� N � Y Y � W
j � a � � � � � W
� c ° ° Z m in v � � C7
C j� . �(A � E Y J
C7 0 � � a�. U a �
H
'
1
�
�
'
'
'
,
V
� '
�
�
'
�
'
�
�
,
i�
�
TOWN OF MARANA, ARIZONA
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS — BY FUNCTION AND ACTIVITY
EXHIBIT E-3
Year Ended June 30, 1998
t General Fixed Additions Deletions General Fixed
Assets and and Assets
Function and Activity July 1, 1997 Transfers Transfers June 30, 1998
' General government $ 413,908 $ 20,819 $ (1,633) $ 433,094
Development and planning
' services 254,872 99,759 (3,449) 351,182
Police 1,180,615 218,676 (136,443) 1,262,848
' Magistrate court 21,935 19,350 — 41,285
Publicworks 685,502 320,456 (24,816) 981,142
' Community development 211,566 — (145,376) 66,190
Parks and recreation 520,61 5 104,745 .(792) 624,568
' TOTAL GENERAL FIXED ASSETS $ 3,289,01 3 $ 783,805 $ (312,509) $ 3,760,309
I '
I t
I '
I '
I '
�
I '
I '
I '
65
'
i� 1
'
,
�
1
0
�
�
�
�
�
�
�
C
�
�
S'�ATISTICAL
SECTION
0
Z
�
H
U
Z
�
m
Z W N
N � ¢
� �
Q f- �"
� Q '6
d
am �
QQ"'LL C
f"
LL ZW?
Q W �
Z ZN
3 WS
0 0
�
J
�
W
Z
W
�
m m O W CO m V m N
� N[9 � QS N O N N
N m t0 �'7 O tn (O fh (h
�,C 00 �� O 01 fD 0� f7 'cY
p c7 O 1n u'7 t0 m CO
� N C7 tn tn W CO 7[7 O �Y
.- .- ,- r r(V ln f0 m�
EH T
� O7 ln N O
U
Q�� I I 1 I�� I I �p O �
� N CO
V3
'7 I� N ln
c6 N W O� � O
� � t I 1 I�� I I o�
O N r N CO
M
�
� O C�7 f�0 c�7 r� �r � t�
t0 O I� r tn (p .-
N m I i wvinr�rnrp
Y �nmmaoc�� �
� U .- N (O
a °'
¢
�
�' cornro�ro�
� a.. incooc�rnc��c�o�
E—�°� � TconSco�ocor�rn
E� E � N�� N�� N �
O �
U�
�
comco�nco�aornrn
OD O N f0 N'V' tn CO N
U� m.- tn f0 I� ln N(D st O
� tV � O tY Q� I� tn f'� r Ct
a� NN NNN�nrCp �
r N N (h
�3
.�. l ln M O 1f M tt m N�
�C .- N t� N� tn f0 In �(? N
� 7 O N t0 In (p CO O f7 I�7 N
y O �f fO c0 O t0 O(D tp
� U N N N
�
�
vo
� N � �V
LL I I I I I I 1 O M�
e� v
�
f0 fh N M M N M ln � N
T�rvincoOrn oco
U fD�tnN r�conr�in
. I� 1n M(h tn N V 0� In r
p ov�onrnaorni•.00
a u�ininco�nrni.rncoin
r r- N N
�
OtOtA�AaCOaDaDNN
�(O f� O aD h P M M f0
C N f0 N<f a0 .- �� N f� �
C
F- � ! N M� l� N(� N N t7
(r)
Q
V)
Vf�tn7� W M(hl�
ac °'� °�`°v�i�fO��rn
O RS•G V ( ON(OI�(0700fON
� C C > �[Olnlnp701 ��N m
y ¢7 !�1 N M'V' I� h
0 � � N
�
�a (O (q m07Nt�
� L IA � OI 1f� (0 f0 t0 lq tt N
d C �t I�GD�NtDlO(Ofq
C �
� O E r�MNN�ntpN�N
(� � ._
�
�O�NIO�tn(DI�aD
iC � aDO�OfmO�mOfmmOl
I I I I I I I I I I
�� a0 Of O N(9 d� l� f0 f�
W � � � m � � � m m
0) rn rn O) rn O� rn Of O� rn
N
Y
�
U
�
7
n.
a�
II
C
7
�
N
C
�
�
O
U
d
N
3
c
O
.�
N
U
N
Q
a
C
�
'�
lC
a
ro
rn
I
n
rn
rn
�
U
w
N'
O
Z ti
�
C
O
N
�
�
C
�
�
�
0
c
3
0
F
d
�
7
O
N
�
W
a �
�
Z � �
O O W
V/
� � �
�\
Q � � � �^,
W
�/� � � � �
61� m � 1 1 �
�i.. �
W
� H W W �
u' CC F-
� J
Z Q fA
o Wg
� �
W
C3
Cfl Ln r C'7 Cp QO I� � ln 'cY
T Ln tn T O f� 1� O I� N
� � N 00 �} � N CO N CO t�
� u/ T T" O N VI T N T
� ln N N�-- � �t' �' CD O d'
� .- N OD � 1� (p M tn r O
T T T T T v ��.y r�
+-n T T
VT
,-- tf> ln N N c� d� N tn �
L ln Q7 C'� � Cp CO �F' T� ln
� *- CD QO OD N Lp d N� N
O f� 0� [� QO CO ln ln t� '�fi CO
T
�
�
N
a�
,r
C
N ^` N
� i �
� � � �
� C (�
LL. 'C � �
, � 1 �
1..4�
� CO C'� N
t0 '�t � r-
N f� N �
I I I I I I����
T-N�'(�
�4
M M tA N M Q M �Y � m � T I�
� O T 1_ W T N T y
M �^ W W T T N W T �-/ y,�
`'J W �`"J I_ �i/ Y/ W V l'/
CO OD N O CO f� � O r tf
T T T T T
I �
N� CD lf)rO1�000N
t� � N CO T f� T M Q) [h LI) T I�
N �y_ m�N00hO'�fiNODm
� *- �t O(O c'7 f� CV CO (O �A
�� N M T T � N�� O C�O �
U � n� d. _ _ _
� ' W T T T
LL �¢
VI
� co �r c� �r. d- c� ►n �r t� T-
� ��t�''� ��O) �TTO
�. �� O r ct' O(O In a0 I�
� V [t' 00 OD f� r- r N� r- CO
+-� � d' Ln '�' CO Ln C'') CO f� f� �
Q� Cf' CO f� Cfl CO � O r� C�
Q r T T CrI
Ef�
N �n N I� N ,y �rOD N
W �1 �V./� N T T t / � 'J � V ry l � N /y � ry V�
^I r' W l'J V r� VJ \V l'J �"J W
j� '
..I Y/ T y/ � T W N\'/ T Y♦
� N(*3 I� �!' � Ln C'� OD OQ �
N tn tp (O f�
Efl
.-�
�
� O.- N c'9 � ln CO I� OD
U RS OD � � � � � � � � �
N� I I I I I I I I I I
� } � � � � � � � � � �
� � � � � � � m � �
T T T T T T T T T T
�
�
O
H
�
�
.r
�
�
�
�
U
�
�
�
�
U
�
�
��.(
�U
�
N
N
cu
N
0
�1.�
0
0
�
�
�3
N
�
'�
�
U
C
T
�
�
�
T O
V!
�
T
�
U
N
�
O
.,-.
N
�
,-�+ �
O �
Z �
t�
C
O
N
�L
Q
�
C
�
c �
C
�
O
C
�
O
H
N
U
�
O
�
•�
•
TOWN OF MARANA, ARIZONA
TABLE III
ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY
�AST TEN FlSCAL YEARS
(Unaudited)
Fiscal
Year
1988 —89
1989 — 90
1990 — 91
1991 — 92
1992 — 93
1993 — 94
1994 —95
1995 — 96
1996 — 97
1997 — 98
Assessed
Property
Value
$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
72,242, i 05
Estimated
Property
Value
$ 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
485,315,813
Ratio of
Total Assessed
Value to Total
Estimated
Value
13%
13%
13%
13%
13%
13%
16%
15%
16%
15%
Note: Includes real property only
Source: Pima County Assessor's Office of Pima County, Arizona
.•
N
F-
z
w
�
Z
�
W
9
0
�
�
z�
¢ a�
Z a��
Q
Q �w�
Q � � � Q �
Z Q W Z tA V `a
CtmQ�ti �
Q
QQf- C
� ~ W � W �
� � � ~
Z � O r �
� ��g
�
� W a
� V
�
F-
�
LLI
a
Q
a
m�hONO�[001�
r�cooncou�vmnco
�' o�MC°rn��n�c`�o
m
� N N N N N N N N��
I--
V)
C O O O O O O O O O O
p O O O O O O O O O O
OOOT��tV C�t V�
f0 C iC p r r
O w �� O O O O O O O O O O
y � � N �1
U ��
0
U
fA
� O�NORaDO�cOC9CpN
�� O� r`cY ln OI C7 C7 C`) N
7 II1V ��OVO��OV COm
t�l��mmOr-Nrr
E= y 00000r.=rr.=
E o
o U
U
�
0000000000
0000000000
�v� O U ('7NNtqri�0C7ht�
• p• (�tAO�r�tONlntn
O d V y �� n� n n� n� �
��cn0
�
c000inoi.vr.�nco
� rnncocococcornr.�
C O U �ctTMtpNNtDf�t�
� � CO tn N CO C9 N N m�
t6 U N f�OD�00hl�1�l�(Ot0
� � �
�
Ntq� aOCOCflCOtO(�
� mCDCOP�N��m[t
O p LL� �� 00 C� CO ln ln N N
� = p •` �AIA��tD VMC7c')M
a � O Q N O O O O O O O O O O
U�U�
�
1n�lAtn V�'Q'�� V
T CDONNNNNNNN
r r O O m O N N N
C� N N N N N N N
� O O O O O O O O O O
U
�
I�C77�tnNf�I�tDmN
� M O CO N ln N C7 C7 ln
CO�t�7000(7tD�r
E � �rnrnoocono�-cv
a o vv�uiuiv�uivc
U
�
O O O O O O O
0000000
O C 1� f� i� !� h!� I�
vvvvvvv
� N O O O O O O O I I I
(n Q
6�?
�O.-NM VlA(Ot�OD
V � � m � � m � m � � �
m N N�OrNM'�ttAtOf�
� cDtO����O��� m
m � � � � m � m m �
P" T P" T
N C)
U .
d `
N
r �
C O
'- U
N
N �
� Q
c�
T O
d L
� �
O �
C j�
Q �
� � O
�a g '�
`o d
� N
U 0
N �
� ��
° c �
y 3 0
0
:� ~ m
,., d —
V r �
• N O �
O d m
o �E �a
O � �
ti O O
�
N �. Q
N d lC
�
C X �
• 0 -�
o aE
N � � d
Z r
;
� r TOWN OF MARANA, ARIZONA
TABLE V
, COMPUTATION OF LEGAL DEBT MARGIN
GENERAL OBLIGATION BONDS
June 30, 1998
(Unaudited)
,
Net Assessed Valuation $ 72,242,105
,
20% 6%
, Bonds (1) Bonds (2) Total
Debt Limit $ 14,448,421 $ 4,334,526 $ 18,782,947
� Amount of debt applicabie
to debt limit:
' General obligation bonds — _ _
outstanding
' Less assets in debt service — — —
funds availabfe for
payment of principal
' Amount of debt applicable — — _
to debt limt
' Legal debt margin available $ 14,448,421 $ 4,334,526 $ 18,782,947
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 eneral obli ation bonds for all ur oses
�) � 9 9 p p
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
'
71
TOWN OF MARANA, AR(ZONA
TABLE VI
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
June 30, 1998
(Unaudited)
Jurisdiction
Town of Marana, Arizona
Pima County
Marana School District
Flowing Wells School District
N et
Bonded Debt
0 utstan din g
$ 8,175,000
186,990,000
67, 575 , 000
18, 645,000
$ 281,385,000
Percentage
Applicable
to Town
of Marana
100.0000%
1.7142%
27.0100%
7.6923%
Amount
Applicable
to Town
of Marana
$ 8,175,000
3,205,453
18,252,008
1,434,231
$ 31,066,692
Notes:
(1) The bonded debt of Town of Marana, Arizona includes revenue bonds issued
by the Marana Municipal Property Corporation.
(2) Percentages and app(icabie 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
72
I TOWN OF MARANA, ARIZONA
TABLE VII
' LEASE REVENUE BOND COVERAGE
LAST TEN F{SCAL YEARS
(Unaudited)
,
'
Fiscal Gross
' Year Revenues Principal Interest Total
1988-89 $ 919,037 $ — $ —
' 1989-90 798,515 = 7,619
1990 —91 1,308,680 22,858
Coveraae
1991 —92 1,054,079 — 22,858
1992-93 1,293,750 — 49,402 ��
' 1993-94 4,121,614 — 47,36i � �
1994-95 6,662,180 5,000 47,061
1995 — 96 7, 865, 619 15, 000 45, 993 I'
1996-97 9,978,458 15,000 44,903 X�
' 1997-98 11,477,390 560,000 — �
!�/�
'
�
'
Notes:
' (1) Revenues include all General Fund revenues
(2) All revenues of the General Fund are pledged toward payment
' of the lease revenue bonds
{3) For fiscal 97— 98, 2 bond series were defeased. $545,000 of the $560,000
' in principal was defeased. Because of the timing of the defeased debt
and the issuance of the 1997 bond series, there was no interest expense
incurred/recorded for fiscal 97-98.
' Source: Town of Marana, Arizona
1
'
'
'
' 73
TOWN OF MAAANA, ARIZONA
TABLE VIII
DEMOGRAPHICS
June 30, 1998
(Unaudited)
Population by Age Group
Percentage
Age Group Number of Total
Under 5 452 8.51%
5 —14 808 15.22%
15-19 329 6.20%
20-29 807 15.20%
30-39 1,183 22.28%
40-49 757 14.26%
50-64 624 11,76%
65 and over 349 6.57%
Total 5,309 100.00%
Population by Ethnic Background
Percentage
Age Group Number of Total
White 3,624 68.26%
Hispanic 1,200 22.60%
Black 189 3.56%
Native American 133 2.51 %
Other 163 3.07%
Total 5,309 100.00%
Population by Jurisdiction:
Town of Pima State of
Years Marana County Arizona
1995 Special Census 5,309 758,050 4,228,900
1990 Census 2,187 666,880 3,665,305
1980 Census 1,674 531,443 2,718,425
1970 Census 1,154 351,667 1,775,399
Note: Population figures are based on a recount completed by the
U.S. Census on September 14, 1995
Sources: U.S, Census Bureau and Town of Marana, Arizona
Unemployment Averages:
Town of Pima State of
Years Marana County Arizona
1997 2.4% 3.3% 4.6%
1996 2.7% 3.7% 5.1 %
1995 2.4% 3.3% 5.1 %
1994 3.3% 4.5% 6.3%
1993 3.2% 4.4% 6.2%
1992 4.0% 5.4% 7.4%
Source: Arizona Department of Economic Security, Research Administratior
United
States
5.0%
5.4%
5.6%
6.1 %
6.8%
7.4%
74
��
( '
I '
' Fiscal
Year
' 1987-88
1988 —89
t 1989-90
1990 — 91
1991— 92
1992 —93
t 1993 — 94
1994 — 95
1995 —96
' 1996-97
1997 — 98
I ,
TOWN OF MARANA, ARIZONA
TABLE IX
PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS
LAST TEN FISCAL YEARS
(Unaudited)
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
485,315,813
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 40,709,699
320 28,018,383
329 34,083,387
435 68,352,903
713 77,801,401
Commercial Construction
Number of
Units Value
N.A.
N.A.
N.A.
5
10
1
5
41
40
36
40
$ N.A.
N.A.
N .A.
318, 629
1,713,967
20, 000
189,244
5,742,572
1,842,171
4,284,366
6,675,409
1
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. This
branch closed its official location in Marana in fiscal 1998, and no other banks
officially list their locations in Marana, Arizona for fiscal � 998.
I '
Bank
Deposits
(000's)
7,791
N.A.
7, 509
8, 555
9,414
9,189
9, 939
10,256
9,538
11,998
Sources: "Operating Banks and Branches" by Federal Deposit Insurance Corporation and Town of Marana
I 1
I '
I '
I t
I ' 75
TOWN OF MARANA, ARIZONA
TABLE X
MISCELLANEOUS STAT{STICAL DATA
June 30, 1998
(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 Nationa( Guard
Product/
Service
Retail — Food
Retail — Stores
School
Electric Utilitiy
School
Retail — Service
Retail — Stores
Government
Number of
Employees
(1) 1,475
(1) 1,400
(2} 1,140
(1) 964
{1) 645
(2) 600
(1) 200
(2) 170
Notes
1) These totals represent employees in locations throughout Southern Arizona, not
just in the Town of Marana, Arizona
2)These totals are for employers with business addresses listed as Marana, Arizona.
Source: "Star 200 (The Major Employers of Southern Arizona)" published by the
Arizona Dai(y Star on March 15, 1998
City Employees: June 30, 1998
Full — Time
Part — Time
Total
Police Protection
Number of Stations
Total Full — Time Employees
Commissioned Employees
Parks and Recreation
Acres
Parks
Playgrounds
Swimming Pools
Water Utifity
Operable Wells
Active Services:
Metered
Unmetered
Water Distributed (Gallons)
107
32
139
2
49
38
40
1
1
1
12
1, 057
14
122,457,320
�
' I
' I
L�
' I
1 I
Fl:
�