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HomeMy WebLinkAbout1999 Financial Statement June 30� (> ;`±� � S 1 s { s' . �; f . � : � & � . +�i. �> }, f �t �>, ^,t: TABLE OF CONTENTS INTRODUCTORY SECTION Pa�e Letter of Transmittal I ...................................................... Town of Marana Officials .............................................................................. VIII Town of Marana Organizational Chart .......................................................... IX GFOA Certificate of Achievement •••••••••••••••••••• X ............................................ FINANCIAL SECTION Opinion of the Certified Public Accountant . General Puruose Financial Statements ......................................... 1 hibi Combined Balance Sheet - All Fund Types and Account Groups ............................................................ 1 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types ............................................................................. 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- General and Special Revenue Funds .......................................... 3 Combined Statement of Revenues, Expenses and Changes in Equity - All Progrietary Fund Types.......... 4 Combined Statement of Cash Flows - All Proprietary FundTypes .................................................................... 5 Notes to Combined Financial Statements ........................ - Required Supplemental Information ................................ - Year 2000 Issue ............................................................. - 3 Combining� Individual Fund �nd Aecount Groun �tatements and Schedules General Fund Comparative Balance Sheets .........................................A Statement of Revenues, Expenditures and Changes in Unreserved Fund Balance - Budget and Actual......A-2 Special Revenue Funds Combining Balance Sheet .............................................B Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................B 1998 Community Development Block Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual �' ......................................B Kj :! �� C7 7 9 35 36 37 38 43 45 47 TABLE OF CONTENTS Combinin� Individual Fund and Account Grou� Statements and Schedules (Continued) x i it Special Revenue Funds (Continued) HOME Program - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual....B-4 COPS Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ..........B-5 CJEF Court Fund - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual....B-6 RICO - Statement of Revenues, Expenditi�res and Changes in Fund Balance - Budget and Actual ..........B-7 GITEM - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-8 HIDTA - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-9 MANTIS - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Acttzal..........B-10 Auto Theft - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actt�al ..........B-11 LTAF - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ..........B-12 Highway User Revenue - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .......................................................B-13 �AG 15% Funds - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual....B-14 Capital Projects Funds � Combining Balance Sheet ............................................ Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... C-1 �� Enterprise Funds Combining Balance Sheet .............................................D-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................D-2 Combining Statement of Cash Flows ...........................D-3 Comparative Balance Sheets - Water Fund ..................D-4 Statement of Revenues, Expenses and Changes in Fund Equity - Water Fund - Budget and Actual ..................D-5 Page 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 TABLE OF CONTENTS Combining, Individual Fund and Account Grou� Statements and Schedules (Continued) xh' it General Fixed Assets Account Group Comparative Sehedule of General Fixed Assets by Source .........................................................................E-1 Schedule af General Fixed Assets - By Function andActivity .................................................................E-2 Schedule of Ghanges in General Fixed Assets - By Function and Activity ............................................E-3 STATISTICAL SECTION (Unaudited) Table General Government Expenditures by Function - Last Ten Fiscal Years ...........................................................I General Revenues by Source - Last Ten Fiscal Years ...........II Assessed and Estirnated Value of Ta�able Property - Last Ten Fiscal Years ...........................................................III Property T� Rates - Direct and Overlapping Governrrients - (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 Band Coverage - Last Ten Fiscal Years .......VII Demographics........................................................................VIII Property �Jalue, Construction, and Bank Deposits - Last Ten Fiscal Years ...........................................................IX Miscellaneous Statistical Data ...............................................X Pa�e 67 68 69 71 72 73 74 75 76 77 78 79 80 � — � � � �, MARANA /I� TOWN OF MARANA December 30, 1999 The Honorable Mayor and Council Town of Marana, Arizona The Comprehensive Annual Financial Report (CAFR) of the Town of Marana for the year ended June 30, 1999 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, 1998. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal 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 three consecutive fiscal years ended June 30, 1998, 1997 and i996. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA. The CAFR has been prepared under the direction of Mr. Roy Cuaron, Finance Director, in coardination with the Town's special consultant, Mr. Ron Kovar, CPA and the Town's auditors, Clifton Gunderson L.L.C. RPsponsibility for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the Town. To the best of our knowledge and belief, the data contained in the CAFR is accurate in all material respects, and is reported in a manner designed to present fairly the financial position and results of operations of the various funds and account groups of the Town. All disclosures necessary to enable the reader to gain an understanding of the Town's financial activities have been included. The CAFR is presented in three sections: Introductory, Financial and Statistical. The Introductory Section includes this transmittal letter, a listing of principal Town officials and staff and the Town's organizational chart. The Financial section includes the auditor's opinion on the financial statements and schedules, the general purpose financial statements, footnotes, and required supplemental information and the combining statements and schedules by fund and account group, which provides additional detailed information. The Statistical Section includes selected financial and demographic information, generally presented on a multi- year basis to demonstrate trends. THE REPORTING ENTITY AND ITS SERVICES Back�round Located in northern Pima County, the Town of Marana is one of the fastest growing communities in Arizona. Nlarana straddles Interstate 1Q and is only 10 miles north of downtown Tucson and 90 miles south of downtown Phoenix. I 13251 N. LON ADAMS ROAD � MARANA, ARIZONA 85653 � PHONE: (520) 682-3401 s FAX: 682-2684 Marana's original incorporation covered approximately ten square miles. Today, the Town boundaries encompass over seventy-five square miles with a population base in excess of ten thousand. In its infancy, the Town was primarily a rural, agricultural community. However, through annexations and planned growth, the Town is now home to several residential, commercial and industrial developments. Legislative authority for the Town of Marana is vested in a seven-member Mayor and Council. Voters of the Town directly elect the Mayor. Council-members serve four-year staggered terms. The Council fixes the duties and compensation of Town officials and employees, and enacts ordinances and resolutions relating to Town services, taxes, appropriating and borrowing moneys, licensing and regulating businesses and trades and other municipal purposes. The Town Council appoints the Town Manager who has full responsibility for executing Council polices and administering Town operations. Town employees are hired under personnel rules approved by the Council. Functions and operations of the Town government are provided by a staff of approximately 160 employees. The combined financial statements of the Town include all governmental activities, organizations and functions for which the Town is financially accountable as defined by the Governmental Accounting Standards Board. Based upon these criteria, the Town of Marana Municipal Property Corporation is included in this report. Services Provided The Town provides a range of services that include police, water, construction and maintenance of streets and roads and other infrastructure, flood control, low-income housing, recreational activities and eultural events. ECONOMIC CONDITION AND OUTLOOK Current Condition The fiscal �ondition of the Town of Marana continues to demonstrate significant growth and improvement. At June 30, 1999, the unreserved, general fund balance was $14.2M, an increase of nearly 40% from the previous fiscal year. This continues a trend of the past several years that has resulted in an average increase of approximately 35% in the unrestricted, general fund balance over last four fiscal years. T!�e primary contributing factors to the fiscal improvement and economic prosperity continue to be a strong national and local economy, prudent fiscal management, responsive customer service and a philosophy and attitude that promotes and encourages economic development Sales tax revenues, which account for 66% of total revenues, increased by 32°Io from fisca197-98. An expanded tax base that saw the opening of several new business establishments (Home Depot, Super 8 Motel, Discount Tire, OfficeMax, Office Depot) contributed in excess of $260K, or 10% of the increase. The balance may be attributed to the growth in the business activity amongst the other taxpayers of the Town. The strength of the national economy continues to favorably impact the Town's local home-building industry. With interest rates remaining steady, and an abundant supply of developable land� the Town continues to experience growth in the residential and commercial markets, as evidenced by the 61% increase in licenses, fees and permits in FY 99 over FY 98. The importance of sound, prudent fiscal management practices is paramount to the significant improvement in the Town's financial position. 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 monitorin� of budget variances, ensures that total spending remains within approved budgetary levels and within available financial resources. To wit, while total general fund expenditures, including full funding of the tirst year's Capital Improvement Plan, increased by 4% over FY 98, total Qeneral fund revenues increased by 37%. � II , , � The Marana Town Council, through the establishment of clear and concise polices on growth 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 encourages economic development. The combination of these two factors has been � instrumental in the growth 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 growth in the next ten years. Residential activity continues to be strong in the Continental Ranch area, as on-going development continues its various phases and new development projects commence. Planned residential development projects within the Continental Ranch area include Saguaro Springs, Silver Moon and Cortaro Ranch. Construction activity at Dove Mountain continues at a rapid pace. In addition to the Heritage Highlands residential community, new developments include Quail Crossing, Villages at Dove Mountain and Dove Creek and San Mateo at Dove Mountain. Collectively, these communities are planned for over 10,000 homes. Also, with bank protection along the Santa Cruz River nearing completion, significant residential activity is expected to occur in the northwest quadrant of the township. From the commercial perspective, FY 99 saw the opening of numerous new business establishments. Among the more notable were Home Depot, OfficeMax, Off'ice Depot, Super 8 Motel, Discount Tire Company and a trio of manufactured housing sales offices. These business establishments contributed prominently to the increase in sales tax. ' New commercial projects under construction at fiscal year end included Day's Inn Express, Ramada Inn Express, Gallery Golf Course and Country Club, Batteries Plus and Brake Masters. Other commercial projects scheduled to be completed within FY 2000 include Safeway Grocery, Carl's Jr., Holiday Inn Express , and La Parilla Suiza restaurant. These business entities will significantly enhance the local ta�c and employment base of the Town. � Additional evidence of future economic prosperity includes on-going discussions with a major resort hotel to be located at Dove Mountain. The economic impact of such a venture will be significant. NIAJOR IIVITIATIVES Current Year Pro_jects The Town's 1998-99 budget of $24.6 miIlion represented a 9% increase from the previous fiscal. Major components of the budget included $4.1 million for the construction and maintenance of streets and roads, $2.7M for water system acquisitions and improvements, and $65�K for the acquisition of computers, vehicles and machinery & equipment, most of which were necessitated by the continued growth of the Town. The budget also reflected moderate service level increases in police and public works. The FY 98-99 year yielded the following achievements: :• Construc[ion of a 5,000 square foot Senior Center facility; •:• Construction of $521K of park improvements that included lighting for soccer and baseball fields; ❖ Construction of $676K in water system improvements to improve delivery, reliability and storage of water to customers; •:• Adoption and implementation of a five year Capital Improvement Plan (CIP); •: Expansion of the Town's affordab(e housing program throu�h the construction and sale of two new homes; •:• Acquisition of 20 acres of land for the construction of a municipal complex; •:• Desi�n and construction of infrastructure (road) improvements totaling nearly $1.0 million; ❖ Acquisition of the Marana Northwest Regional Airport (formerly the Avra Valley airport); III ❖ Creation of the Development Services Center to better serve the public; •:• Construction of bank protection along the Santa Cruz River; ❖ Direct election of the mayor Future Year Projects The Town is committed to improving and increasing service levets to its residents and planning for the proper and orderly growth of the community. To that end, the following activities have commenced or are in the planning stages for the very near future: •:• Design and construction of a municipal complex that allows for the consolidatian of services and facilities to better serve the public; •3 Issuance of approximately $10 million on revenue bonds through the Municipal Property Corparation (MPC) to finance the municipal complex, and which resulted in the Town receiving a credit rating upgrade from Standard & Poor's (A- to A); •3 Design and construction of infrastructure improvements to increase traffic capacity; ❖ Design and implementation of a plan that ensures equitable funding of development-warranted infrastructure; ❖ Finalizing the North Marana Plan in anticipation of expected development in the northwest quadrant of the township; •3 Infrastructure improvements to the Marana Northwest Regional Airport to facilitate economic development in the area; FINANCIAL INFORMATION Management of the Town is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected fram loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in confomuty with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The cancept of reasonable assurance recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework. We believe the Town's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financia] transactions. The policy of the Town of Marana provides that the Town Council shall adopt the annual budget prepared by the Town Manager and senior staff. This budget is reviewed by the Town Council and is formally adopted by the passage of a budget resolution. The Town Manager is auEhorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Town CounciL Revenue and expenditure reports that compare budget versus actual results are produced monthly and are distributed to senior staff and others upon request. � General Fund The General Fund is used to account for expenditures of traditional governmental services as well as financial resources other than those required to be accounted for in other funds. General Fund revenues totaled $15,757,424 in tiscat 1998-99, an increase of 37% from FY 97-98. General Fund increases (decreases) over the last year are shown in following tabulation: IV � , , Revenue Source Taxes Other Agencies Licenses Fees & Permits Fines, Forfeitures & Penalties Interest Income Other Agencies Amount $10,394,566 $1,284,753 $3,069,824 $214,676 $745,036 $48,569 Percent Increase/ Increase/ Percent (Decrease) (Decrease) of from from Total 1998 1998 65.97% $2,543,719 32.40% 8.15% $171,406 15.40% 19.4$% $1,173,852 61.91% 136% $79,595 5892% 4.73°Io $271,462 57.32% 031% $40,000 466.80% Total $15,757,424 100.00% $4,280,034 37.29% The increase in tax revenues was the result of an expanded tax base and growth in business activity amongst the Town's taxpayers. Other agency revenue grew primarily because of an increase in population due to the Orange Grove/Camino de la Tierra annexation Income from licenses, fees and permits increased substantially due to the sustained growth of the residential and commercial building industries within the Town. Fines, forfeitures and penalties also increased significantly due to an increased case load and an aggressive sentence enforcement policy. The increase in interest income reflects a continuing accumulation of reserves combined with sound cash management. General Fund expenditures for general government purposes totaled $9,415,434 in fiscal 1998-99, an increase of only 4°Io from FY 97-98. Increase (decrease) in levels of expenditures for major functions of the Town over the preceding year are shown in the following tabulation: Function General Government Development Services Town Attorney Police Fire Magistrate Court Public Works Debt Service/Capital Lease Percent of Amount Total Percent Percent Increase/ Increase/ (Decrease) (Decrease) from from 1998 1998 2,212,611 23.50% 950, ll 9 75.26% 763,460 8.11% (29,�97) (3.72%} 280,132 2.98% (77,336) (21.63%) 2,597,572 27.59°Io 307,941 13.45% p 0.00% (486,490) (100.00%) 304,6�1 3.2=�°Io 41,833 � 15.92% 3,026,585 32.14% (289,204) (8.72%) 230,423 2.45% � (28,885) (11.14%) Total 9,415,434 100.00% 388.481 430% A marginal increase in general fund ex�enditures occurred in FY 98-99 from the previous fiseal year. V The increase in General Government is due primarily to the recent acquisition of the Marana Narthwest Regional Airport. Expenditures for the Town Attorney decreased due to the resolution of long-standing cases and a more diligent effort to control outside costs. The increase in the general fund for Police stems from capital spending for the acquisition of new police vehicles. The reduction in Fire expenditures is due to the annexation af properties into a fire district. Previously, the Town contracted with a fire district to provide service to the affected properties. The decrease in general fund expenditures for Public Works is primarily the result of a reduction in capital equipment spending and contractual services. Again, the latter is due to a concentrated effort to control outside costs. Despite the overall increase in expenditures, the Town's general fund balance increased by nearly 40%, again indicating sound fiscal management practices. Capital Proiects Fund Proceeds of Series 1997 Revenue Bonds are aceounted for in the Capital Projects funds until improvement projects are completed. During FY 99, $2.6M was expended for capital projects, including the construction of the Senior Center, Marana Park lighting improvements, leasehold improvements at the Development Services Center and Marana Courts and various roadway improvement projects. Capital Project fund balances on hand at year-end represent primarily cash and cash investments. Proprietary/Enterprise Water Fund The Town's water fund showed a modest increase in operating revenues over FY 98. Excluding depreciation, operating reveriues exceeded operating costs marginally, an indication that the system is closer to becoming a true enterprise system. FINANCIAL MANAGEMENT Tiebt Administration At June 30, 1999, Marana Municipal PropeRy Corporation had one revenue bond issue outstanding. The issue is from October 1997 and the outstanding bond indebtedness totaled $7,930,000 at June 30, 1999. The proceeds of the 1997 Series Bond issue were (are) used to finance capital improvement projecfs, namely design and construction of major roadways and water system improvements. Further, $300,000 was used to refund the balance of the 1990 and 1992 Series Bonds. Through the years, the Town has entered into numerous capita( 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. Cash Nlana4ement The Town of Marana uses a system of consolidated cash management where cash from all funds are pooled. Cash to be used for the payment of current erpenditures is kept in a money market savings account. Excess and idle cash is kept on deposit with the State of Arizona Treasurer's Local Government Investment Pool (LGIP). Cash in the LGIP is available upon 24 hour notice and earns a return comparable to U.S. government securities. Interest earned on cash and investments from at( funds totaled $959,984 in FY 98-99, net of bank analysis fees and investment expenses. VI Risk Management The Town of Marana participates in the Arizona Municipal Risk Retention Pool. Under the Town's general insurance liability, the Town is required to pay the first $10, 000 per loss per claim or judgement, with the Pool covering the balance up to $Z,000,000. The Town also maintains excess umbrella coverage of $3,000,000. The Town's total general liability insurance is thus $5,000,000. The Arizona Municipal Workers" Compensation Pool was the Town's insurance carrier far worker's compensation during FY 98-99. Various risk control techniques, including employee accident prevention training, are utilized to control the Town's risk exposure. OTHER INFORMATION IndeUendent Audit The State of Arizona requires a bi-annual audit of the books of aceount, financial records and transactions of all departments of the Town by independent auditors. The Town has elected to have its audit conducted on an annual basis. The firm of Clifton Gunderson L.L.C. has been retained to perform the June 30, 1999 audit. The auditor's report is included in the Financial Section of the report. Acknowledgments The preparation of the CAFR was made possible by dedication of Mr. Ron Kovar, CPA, Clifton Gunderson L.L.C., and the entire staff of the Town's Finance department. Mr. Kovar is the Town's speeial consultant and Clifton Gunderson L.L.C. are the Town's auditors. Our sincerest appreciation is extended to all individuals involved in the preparation of the CAFR. We also extend our appreciation to the Mayar and Council for their interest and support in planning and conducting the financial operation of the Town in a responsible and progressive manner. Respectfully submitted, ��� C �� � � � Niichael C. Hein Town Manager � ���° J� Roy Cuaron Finance Director VII a�� � �; «. _. , .,.�,_ .::�> � r� TQWN OF MARANA TO�VN CUUNCIL �o�iby ���tQ�, Jr. � Ivl�yQr Michael Reuwsaat \ Vice Mayor Jim Blake Ora Mae Harn Eddie Honea Herbert Kai RQ?�ar_�e �ie�le� SENIOR STAFF �Vii��a�l �. �ei� \ TQwt� �VIa��.ge� �,.oy �uar4� � �iz��nc� �ir��t4� Ji� �e�QOd \ LJevelQg�ent Services ��i�i�trato� Brad De�pain � t T�iliti�� Dix��tvr �uss�ll �illQw \ Town Magi�trat� Jocelyn ��tz � Town +�l�rk John Holden � Building Official Jane Johnson \ Human Resource Director Ken Lawrence � Parks & Recreation Director Joel Shapiro \ Planning & Zoning Director David Smith \ Police Chief VIII Town of ylarana DEPAR � : AL ORG�vIZqTION (7/l/99) Arizona Supreme Court Pubiic Pima Conniy Superior Court M�yor 3nd Councii �� , � � � _ , � � � , � , � Town Attomey ' � � � � � � � � ; Town l�Ianager � ylunicipal Caurt � Town ClerkrTown l�Iarshal Finance � � Police Hum�n Resources � tltiiities 1 Par'.cs and Resreation Development Services Plannin� Public Woria Buildin� Services IX Cer�ificat� o� Achi�vement for Excellen�e In Financial �e�orting Presented to Town of Marana, Arizona � For its Comprehensive Annuat Financial Report for the Fiscal Year Ended June 30, 1998 A Certificate of Achievement for EYCellence in Financial Reporting is presented by the Government Finance Officers Ass�ciation of the United States and Canada to government units and public employee reiirement systems wfi�o� comprehensive annual financial reports (CAFRs) ac}veve the highest standards in government accounting and financial reporting. .M'��'w' a �� � � �� s 2 /uraho r.x� �' w� � w 2 ; f.�N7�Ua �''' � �. CURPOIUS7IY. S ��� �� �a L, CAI[}: C� �.Z � r�`�-� 6�./4✓ � President 7 { I Gi /j { y � ��i'wvG I�/� V E�cecu.ive Direttor X Cli.�o� Gunder�on z.z.c Certified Public Accountants & Cor�sultanls Honorable Mayor and Town Council Town of Marana Marana, Arizona Independent Auditor's Report We have audited the accompanying general-purpose financial statements of the Town of Marana, Arizona as of and for the year ended June 30, 1999. These general-purpose financial statements are the responsibility of the Town's management. Our responsibility is to express an opinion on these general- purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Audrting 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 management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the general-purpose financial statements referred to above present fairly, in all matei•ial respects, the financial position of the Town of Marana, Arizona as of June 30, 1999, and the results of its operations and cash flows of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. The combining and individual fund and account group �nancial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements of the Town of Marana, Arizona. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and, in our opinion, is presented fairly in all material respects, in relation to the general-purpose financial statements taken as a whole. � I � I � I � I � The information included in the introductory and statistical sections is presented for purposes of additional analysis and is not a required part of the general-purpose financial statements of the Town of Marana, Arizona. Such additional information has not been subjected to the auditing procedures applied in our audit of the general-purpose financial statements and, accordingly, we express no opinion on such information. In accordance with Government Auditing Standards, we have also issued a report dated November 24, 1999 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. ���s�.. }�u.,�.oP�.t,00�...� L. G. C. 0 Tucson, Arizona November 24, 1999 ARIZONA COLORADO ILLINOIS INDIANA IOWA MARYIAND MISSOURI OHIO TEXAS VIRGINIA WISCONSIN Mamber of � � International AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS � � ' GENE�:AL PURPOSE t �i II II II � F I��TAN C IAL S TATEl�/IENT S It }- m _ Ul i N O'L� C � Z Z � � 2Q(g C7 � p Q c � O?Z� Z � Q 3�y o�� � � c z � LL Q .1 I �I CI ml �� �I � � ^ I O �� H OI I �� � O� �..I � I I m �„ � �I � E; � dl c m m �' I � I C7 0 C y 7 I QI i� Qi d m al I � LLI T � d I � �� � r nl a � N� 6. lLI CI � W �I � `� o �i� � rt 7I � C I W d � C � � �I m � E ~� y �I O � �, I � �� �i Ni Ni I �I i p p p ��o in � O' c0 � O C^'J� �n NI QI ��I � n� O tD � Of 7 Cf m NpII N�7 N NI ��D - O�P C� C c t� I� �I <01 N � ONtON vl� N � �OII ��QOI [J�1 O�v � c c � O c��]I �I �OI � � Of Of Q Of (V N� ^ U�7 j �DI t0 (9 N C <O I C c7 n C7 � N I � I �O II I� � l7 �� N�I � W I � N m ? 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(A I � � � m fAI � w �� � � �nI � I � � NI NII � i I I �i r� �' i �� � � � i � �� i i i ���I � i � i i i i � i � i ��I I � m m�� � ' � � I �� � �I c0 N O I (a 1 g G I�� I �L11 ep I I t9 n n� r� in ini u�i � O � � T u� vl 011 � I �^ �D NI I I I I I P �� O C�I I 1 . 1^ I� 1 N I 1 . I mil � I NI N � � NI NI � I � I �I � �� p (D �' f in n � �D'�,. O. Ni cOI i011 � N� O � I - � O Oi N� O � m �I V: f� 01 °'� m � � � � � � � � �� � B� �� � �'�i m � � M � n 1 I I i I I $''I �� � NI �� NI NI m:l c7 O R m ��' ' �: � `fl �I � ^ I � ~ �� .. � ! I ^ 1 fffll � �il Q W T U r W v N N � � F- _ '- m `O Y j � m 0 '� � �� . d r � .�. - W � 7 W . U � O . � �� Q d U `� p n � � t Q - Z �>> � �� v � m y m o G Q �`o � E'm � � W rn x x u A m� m ` v o � � Z i m . d m E u`� � � t- c�� � n°� � d . � LL� m ��m, Q c p a o�n �. E N m a y �'> i Q� W � O�� a�i c m � � u�i '.� W c a � a C � ... v , y :u ` � � W � v � � � .- � d c c � _ ^ � �n Z �a'� � a� c o � m � � m o. m. 2 f - Q m�u `� f- U C m [` � E�0 N J C C N J T i� N �� V C C V O O O�� �� � 1� � .. N t yl � � p u� � f' � a N C` N � N,a t` C Q TJ � m d� C 7 n. W m ao��ma-°�dw � ai cn mo`,n =� 3 m z�c °- ' m< o � E-a5 ^y �n w w a . m v o o tJ L c c E�@ < r = r= � o�m � � � � E� 9� m L ° ' o �`o'� O � L a u A L a m m; a o o.v' d m � � � ��' N ~ G� o m y � C � 5 � O �� t Z W mmm�-Ov>>�V EE�-� � C �; ? U��u_ � C¢ � Uo2 dCSc' ¢< LL � Q G _ rn _ _ - ¢ - N C m d m H C � � � � O � 0 N v � �n ' TOWN QF MAf?ANA. ARIZONA COMBINED STATEMENf OF REVENUES, EXPEtVDITURES AND CHANGES lN Ft1ND 6ALANCES ALL GOVEfifVMENTAL FUND TYPES - DCHI8IT 2 Year Ended June 30, 1999 Totals S�ecial Debt Capital (Memorandum Only) General Revenue Service Projec:s 1999 1998 REVENUES Taxes �10,394,50"6 � - � - $ - $10,394,566 $ 7,850,847 Other agencies 1,284,753 1,256,041 - - 2,540,794 3,398,701 Licenses, fees and permits 3.069.824 - - - 3,069,824 1,895,972 Fnes, forfeitures and penalties 214,676 6,484 - - 221,160 143,697 Interest 745,036 1,571 2,453 210,924 959,984 669,912 Other 48,5n9 64,019 - 8Q,000 192,588 82,595 Totairevenues 15J57,424 f,328,115 2,453 29Q924 17,378,916 14,041,724 OTHER FINANCfAL SOURCES Bond proceeds - - - Proceeds of refunding bonds - - - Transfers from other funds - 12,459 771,730 Cornersion of account to note payable - - - Lease purchase proceeds - - - Total other financial sources - 12,459 771,730 Total revenues and other financial sources 15,757,424 1,340,574 774,183 EXPEND ITU RES Current operations General government 2,212,611 28,280 Develapment and planning services 763,460 - Town attorney 280,132 - Police 2,597,572 400,099 Fre - - Magistrate cour: 304,651 - Pubiic works 3,026,585 fi49,265 Community development - 226,203 Debt service Principal retirement 216,g2° - Interest 13,494 - Fisca( agent fees/bond issuance costs - - Lease purchases-capital - - Capital improvement projects - - Totai expenditures 9,4i5,434 1,303,847 OTHER FINANCtAL USES Payment to refunded bond escrow agent - - Transfers to other funds 2.089,515 49,969 Total other financial uses 2,089.515 49,969 Total expenditures and other financial uses 11,504,949 1,353,816 Excess (deficiency) of revenues and other financial sources over (under) - - 7,582,247 - - 592,753 1.35�,292 2,139,481 1.95�,782 - - 665,881 - - 19,350 1.355,292 2,139,481 10,816,013 1,646,216 19,518,397 24,857,737 - - 2,240,891 1,283,257 - - 763,460 792,957 - 280,132 357,468 - - 2,997,671 2,581,562 - - - 486,490 - - 304,651 262,818 - - 3,675,850 3,804,021 - - 226,203 157,674 245.000 - 461,929 219,489 479,362 - 492,856 20,469 - - - . 311,289 - - - 19,350 - 2,652.708 2.652,708 3,824,715 724,362 2,652,708 14,096,351 14,121,559 � 724,362 - - 342,753 - 2,139,484 1,939,713 - 2,139,484 2,282,466 2, 652,7�8 16, 235, 835 16, 404, 025 . expenditures and other financial uses 4,252,475 (13,242) 49,821 (1,OC6,492) 3,282,562 8,453.712 FUND BALANCES, BEGINNING 10,216.792 73,819 347,404 4,905,752 15,543,767 7,719,511 Residual equity transfers out (222,439) - - (792,613) (1,015,052) (629.450) FUND BALANCES, ENDING 314,246,828 $ 60,577 3 397,225 $ 3,106,647 $ 17,811,277 $15,�43.767 See notes to combined financial statements. 4 � � � � � ' � �� , ' ❑ � I � i� TOWN OF MARANA. ARIZONA COMBINED STA7E3UIENT OF REYEiVUES, EXFEND(NRES AND CHANGES �N FUND BALANCES - BUOGE7 AFiD ACTUAL - GENEAAL AND SPECIAL REVENUE Ft1NDS - D�H�BR 3 Year Ended June 30. 7999 REVENUES Taxes Other agencies Licenses, fees and permits Fines, forfeitures and penalties Interest Miscellaneous Totai revenues General A�� Budget (a) Variar,ce S 10.394,566 $ 9.175.437 $ 1.219.129 i ,284,753 1,19Q,551 94.202 3.069 , 824 1.989 , 859 1.07 9,° 65 214,676 140,000 74,678 745,036 550,000 195,d36 48,569 2,°60,000 2.911,431 1�,757,424 16,OQ5,847 (248.423) OTHEFi FINANCIAL SOUACES _ �,845,491 (1,645,49t) Bond proceeds _ _ Transfers from other funds - Total otfier financiai sources - 1,645,491 (1,645,491) Totai revenues and other financiai sources 15,757,424 17,651,338 1,893,814 EXPENDITURES Current operations 3 371,789 General government 2,212.611 5,584,400 ( . ) 7ss,aso s� s,sos (��,$�) Development and planning services 280 � 32 327,000 (46,868} Town attorney Police 2,597,572 2,568,950 28,622 304,651 334,842 (30,191) Magistrate court �45,50 Public works 3,026,585 3,372,092 (� _ � Community developTent - Debt service 8g� g�� Principal retirement 216,929 1,108,800 ( ) Interest 13,494 13,494 Capital improvement projects - 3,448.353 3,448,353 9.415.434 17,503,743 (8,148,309) Total expenditures j OTHER FINANCIAL USES 2,089,5t5 Transfers to other funds 2.089,515 �_. Total expenditures and other financial uses 11,504,949 17,563.743 6,058,794 Eticess (deficiency) of revenues and other financial sources over (under) 8 7 595 4,16�3,88Q expenditures and other financial uses 4,252.475 FUND BALANCES, BEGINNING 10,216,792 - 10,216,792 Residual equity transfers out � 222.439) - (222.439) FUND BALANCES, E�IDING St4.24o,828 S 87,595 314,1�9.233 Special Revenue Actual Budget (a) Variance $ - � - � - 1,226,588 2,775,877 (1,54°,289) 6,484 - 6,484 1,571 - 1,571 64,019 - 64,019 1.298,60"2 2,775,877 (1,477,215) 12,459 - 12,459 12,459 - 12,459 1,311.121 2,775,877 (1,464,756) 23,008 - 23,008 376,823 522,000 (145,177) - 34,000 (34,000) 649,265 1,374,877 (725,612) 225,298 845,000 (619,702) 1,274,394 2,775,877 (1,501,483} 49.969 - 49,969 1,324,363 2,775,877 1,451,514 (13,242) 73,819 (13,242) 73,819 5 60.�77 S - � 60.577 (a} The Town's budget inciuded an additionai 53.180,190 for revenues and S�,267,785 for expenditures for water enterprise activities that are not included in this statement because these activities are proprietary in nature. See r.otes to combined financial statements � TOWN OF MARANA, ARlZONA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUtTY — ALL PROPRIETARY FUND TYPES — EXHIBIT 4 Year Ended June 30, 1999 OPERATING REVENUES Current use charges Other Total operating re��enues OPERATING EXPENSES Material, supplies, and other expenses Depreciation expense Total operating expenses OPERATING LOSS NONOPERATING REVENUES (EXPENSES) Interest income Bond interest expense Bond feas Total nonoperating revenues (expenses) NET L�3S Transfers to other funds DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, END{NG FUND EQUITY, ENDING Proprietary Totals Fund Types (Memorandum Only) Enterprise 1999 1998 $ 532,447 � 532,447 $ 405,624 22,801 22,801 15,673 555,248 555,248 421,297 5b1,128 103,363 6b4,491 (99,243) (99,243) (340, 513) (439,750) 2, 000, 086 1,015,052 3,015,138 $ 2,575,382 551,128 480,389 103,363 94,336 654,491 574,725 (99,243) (153,428) 206 — (1,121} — (915) (99,243) (154,343) — (16, 069) (340,513) {170,101) (43Q,756) (340,513) 2, 000, 086 1, 370, 630 1,015,052 629,456 3,015,138 2,000,086 S 2,575,382 � 1,659 573 See notes to combined financial statements. 6 i� TOWN OF MARANA. ARIZONA COMBtNED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES — �CHIBIT 5 Year Ended June 30, 1999 Proprietary Fund Types Enterprise CASH FLOWS FAOM OPERATING ACTIVITIES Loss from operations Adjustments to reconcile loss from operations to net cash provided by {used in) operating activities: Depreciation Changes in operating assets and liabilities: (Increase) decrease in accounts recsivable (Increase) decrease in inventories Increase (decrease) in accounts payable and accrued expenses Net cash provided by (used in) operaiing aciivifies CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES (Increase) in due from other funds Increase (decrease) in due to other funds Residuai equity transfers from general fund Residuai equity transfers from special revenue funds Residual equity Vansfers from capital project funds Note payable proceeds received Deposit for fixed asset acquisition Principal paid on capital lease Principal paid on note payable Purchase of fixed assets Payments to trustee/fiscal agents for debt service Net cash provided by (used in) capital and related financing activities NET DECAEASC iN CASH CASH, BEGINNING OF YEAR CASH, END OF YEAR (a) Totals (Memcrandum Only) 1999 1998 $ (99, 243) $ (99, 243) $ (153, 428) 103,363 4,715 22,268 12.989 44,092 103,363 94,336 4,715 (29,718) 22,268 (22,268) 12,989 30,700 44.092 (80,378) (210,102) 172.229 222.439 792.613 (207,090) (8, 834) (8,800) (796,54� (44,092) (210,102) — 172.229 (1,094) 222,439 175,830 — 63,350 792,613 140,276 _ 88,000 (207,090) — (8,834) (8,262) (8,800) — {796,547) (362,353) — (15,369} (44.092) 80,378 � — $ — � — _ 1 SUPPLEMEIVTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACT1V1TlES During fiscal 1998, the Town financed the purchase of fixed assets with the application of a deposit for fixed asset acquisition of $o^CO3000. During fiscal 1998, the Town charged off 327,268 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 transfer from capital projec: 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 trustee/fiscal agents are not presented above because these activities represent noncash transactions. (Continued) 7 i TOWN OF MARANA, ARIZONA ' COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FiJND TYPES — EXHIBIT 5 Year Ended June 30, 1999 Froprietary Totats � Fund Types (Memorandum Only) Enterprise 1999 1998 SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND REUITE� FiNANC1NG ACTIYITIES (Continued} � Cash � — � — $ _ � Cash with Vustee/fiscal agents — — Total � — $ — $ — CASH FLOWS WITH TRUSTEE/FiSCAL AGENTS FAOM INVESTiNG AND � OTHER ACTiVITIES Payments from water fund for debt service $ — � — $ 15,369 � Interest income — — 206 Decrease in investments — — 301 Net cash with trusteeJfiscal agents provided by � investing and other activities — — 15,876 CASFi FLOWS WITH TRUSTEE/FISCAL AGENTS FAOM NONCAPITAL FINANClNG ACTIVITiES (16,069) � Transfers to other funds — — CASH FLOWS WITH TRUSTEE/FISCAL AGENTS FROM CAPITAL AND RELATED FINANCING AND OTHER ACTIVITIES � Interest and other obligations paid — — (11,790) Redemption of bonds payable — — (10,000) Net cash with Vustee/fiscal agents used in � � � financing and c:her aciivities — — 2 � � 790 NET INCREASE (DECREAS� IN CASH WITH TAUSTEF/FiSCAL AGENTS — — (21,983) CASH WITH TRUSTEE/FiSCAL AGEi�1TS, BEGiNNING OF YEAR — — 2� .983 � CASH WI7H TAUSTEE/FISCAL AGENTS, END OF YEAR � — � — `� — 1-< L , � � � See notes to combined financial statements. ( 8 � TOWN OF I�IARAi`tA, AR�ZONA NOTES TO COMBPtED FINANCIAL STATEMENTS June 30,1999 L_7 I � LJ I� � � NOTE 1- SUMMARY OF SIGNIFICANT ACCOITivTING 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 1Vlayor 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 parics 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 establishin� accounting and fmancial reporting principles. The more siQnificant accounting policies of the Town are described below. B. Financial Renortin�Entitv In accardance with Governmental Accounting Standards Board Statement 14, "The Finar�cial Reporting Entity", these financial statements present the Town and its only component unit, the Town of Marana Municipal Property Corporation (MMPC). The MMPC is blended with the Town in these financial statements because the Mi�IPC was established by the Town in order to fund the debt incurred to finance the purchase of the d Town hall, various capital projects, and fiYed 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 N1azana's Finance Department. C. Basis of Presentation The accounts of the Town are organized on the basis of funds and account aroups, each of which is considered a separate accountin� entity. The operations of each fund are accounted for with a separate set of self-balancin� 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 purp�ses for which they are to be spent and the means by �vhich spendina activities are controlled. The various funds are �rouped, in the financial statements in this report, into �eneric fund types and broad fiind cate�,�ories as tollows: :� u TOWN OF 1�IAR.��iA, ARIZONA NOTES TO COVIBI�(ED FINANCIAL STATEMENTS June 30,1999 NOTE 1 - SUl�II�IARY OF SIGi�TIF'ICANT ACCOUNTING POLICIES (Continued): C. Basis of Presentation (Continued) Governmental Fund Tvpes General fund - This fund is the general operating fund of the Town. It is used to account for all financial resources, eYCept 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 - This fund is used to account for the accumulation of resources for the payment of general long-term debt principal, interest and related costs. Capital project funds - These funds are used to account for the acquisition or construction of capital facilities beinQ financed from General Obligation Bond proceeds, grants from other agencies, or transfers from other funds. 1 Pro�rietary Fund Ty.pes These funds account for operations that are organized to be self-supporting through user charges. The funds included in this category are the water fund and the airport authority (a new fund established in fiscal 1999 with actual operations beginninQ in fiscal 2000) as noted below: Enterprise funds - These funds are used to account for operations that are tinanced and operated in a manner similar to private business enterprises. The intent of the �overnin� body is that the costs (eYpenses, includin; depreciation) of providin` services to the general public on a continuin�7 basis be financed or recovered primarily throu�h user charges. i i) � � � �1 l � j � � I � � , � , � � � TOW�1 OF NIARANA, ARIZONA NOTES TO COI�IBINED FIN.��CIAL STATEMENTS June 30,1999 NOTE 1 - SUI�II�iARY OF SIGNIFICANT ACCOL�ITING POLICIES (Continued): C. Basis of Presentation (Continued) �__ • . � • r 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 concemed only with the measurement of financial position. They aze not involved with measurement of results of operations. The following are the two account groups: General fixed assets account group - This account group is established to account for all fixed assets of the Town, other than those assets accounted for in the proprietary fund. Capital outlays in funds other than the proprietary fund are recorded as expenditures of those funds at the time of purchase and aze 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, ��acnrvmPnt Fncnc/Racic of ACC011II Measurement focus refers to what is beina measured; basis of accounting refers to when revenues and eYpenditures are recognized in the accounts and reported in the financial statements. Basis of accountinQ relates to the timinQ of tne measurement made, � reQardless 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 accountina. Under the modified accrual basis of accountin�, revenues are recoanized when susceptible to accrual; i.e., �vhen they become both measurable and available. "tileasurable" 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 pa�• liabilities of the cunent period, which for the Town is considered to be 60 days afte. year end. Expenditures are recorded when the related fund liability is incuned. Exceptions to this general rule include principal and interest on ��eneral long-term debt which are recorded as fund liabilities when due, and accnied vacation which is recorded ���hen payable from current available financial resources. � , TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINAi�TCIAL STATEMENTS June 30,1999 NOTE 1 - SUNIMARY OF SIGNIFICAi�iT ACCOUNTING POLICIES (Continued): D. Measurement FocusBasis 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 claim to them, as when grant monies are received priar to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a Iegal 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. TaYes 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 Types are accounted for on an economic resources measurement focus usinQ the accrual basis of accounting. Revenues are recorded when earned, including unbilled water services which are accrued_ E:cpenses are recorded at the time �� liabilities are incuned. The Town's Proprietary Funds apply 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. l? � � � � LJ � � � � , � � � � � , i TO�V�i OF iVIARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATENIENTS June 30,1999 ' ( � I ' I � � NOTE i - SUl�iI�I�RY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): E. Budgeta�,v Control The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation that is applicable to all local governments. This limitation, based on eYpenditures of the 1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in population and inflation. Certain eYpenditures are held to be excludable. The limitation is set by the State Economic Estimates Commission prior to April 1 of each year for the followinQ fiscal yeaz. As allowed, the voters of the Town of Marana, on March 11, 1997, approved an altemative eYpenditure limitation - home rule option to be applicable to the Town. This alternative eYpenditure 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 eYpenditures held to be eYCludable. Therefore, the _annual expenditure limitation equals the adopted budget. The Town establishes its fiscal year as the twelve-month period beginning July 1. The departments submit to the Town manager a budQet of estimated e:cpenditures for the ensuing fiscal year. The Town manaQer and each department head meet to discuss mutually accept�ble chan�es for the estimated expenditures for that department after which the Town manager subsequently submits a budget of estimated expenditures and rever.ues to the Town Council. Upon receipt of the budaet estimates, the Town Council �vill hold a public meeting to obtain taYpayer comments. Concurrently, a copy of the budQet estimates is published in a local newspaper. The Town Council is prevented �rom legally enacting the budget through passage of a resolution until 1� days have passed after the date of the public meetinQ. Prior to July 1, the budQet is legally enacted. The Town manager is authorized to transfer budgeted amounts between any departments or any funds; however, any revisions that reallocate budaeted amounts from the budQet line items labeled "continQency" must be approved by the To�vn Council. Budgeted amounts are as ori�inally adopted and all appropriations lapse at year end. All bud,ets are adopted on a basis consistent �vith generally accepted accountin, principles except the enterprise!�vater fund, for �vhich depreciation is not bud�eted and the acquisition of capital assets is bud<yeted as an expenditure and bond proceeds are budgeted as revenue. � r TOW�1 OF NIARAIVA, ARIZONA NOTES TO COMBINED FINANCIAL STATEiVIENTS June 30,1999 NOTE 1 - SUNIMARY OF SIGNIFICANT ACCOITNTING POLICIES (Continued): E. Budgetarx Control (Continued) The Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Special Revenue Funds presents a comparison of budQetary data to actual results af operations for which annual operating budgets are legally adopted. However, it was not anticipated that bond proceeds and other revenue 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 capitai projects funds, although the bond proceeds were budgeted as revenue and capital improvement projects within the general fund and the enterprise/water fund. Accordingly, comparison of actual results of operations to budgetary data for the debt service fund and capital projects funds is not presented. A budgetary basis to GAAP basis reconciliation of the speciai revenue funds, of which the 1997 Community Develapment Block Grant, House Plan Program, LLBDG Grant, and 402 Grant are not bud�eted, follows: Budgetary Unbudgeted GAAP Basis Fund Basis ctu 1 Actual ctua Total revenues and other financial sources �1,311,121 $ 29,453 $1,340,574 � 1 Total eYpenditures and other financial uses � 4 � 29,4�; l, �3.816 Excess (deficiency) of revenues and other financial sources over (under) eYpenditures and other financial uses ��1;.?�?) �= �' �`��) F. �ncumbrances Encumbrance accountina. under which purchase orders, contracts, and other commitments for the e�cpenditurz af monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an e;ctension of formal budgetary intet,�ration in the general fund and special revenue funds. � , � � � � � � , , � , LJ ' � r , LJ TOWN OF NI�,RANA, ARIZONA NOTES TO COMBINED FINANCLAL STATEMENTS June 30,1999 , I� I ' � � NOTE 1 - SUlVII�IARY OF SIGNIFICANT ACCOUNTiNG POLICIES (Continued): G. Reservations and Desianations of Fund Balanc�es In addition to the reservations of fund balance for prepaid e:cpenditures mentioned below, the Town has established other reservations of fund baiance 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. ITse of Estimates The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires manaaement to make estimates and assumptions. This will effect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and eYpenditures durina ti�e reportina 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 straiaht line basis over 20 years. For all other funds, bond issuance costs are recognized as eYpenditures in the period in which the bonds are issued. J. C��h �n� rach Fm�ivalent� For the purpose of the statement of cash flows, the Town considers all hijhly liquid investments (ineluding the funds' participation in the investment pool account, and appropriate restricted assets) to be cash equivalents. Individual fund investments with a maturitv of 3 months or less when purchased are considered as cash equivalents. l� TOWN OF l�1ARANA, ARIZflNA NOTES TO COlVIBINED FINANCIAL STATENIENTS June 30,1999 NOTE 1 - (Continued): , , SUMMARY OF SIGNIFICAi�iT ACCOUlVTING POLICIES � K. Restricted Asse#s The trust indentures executed for ail 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 purchasinQ fiYed assets for the water fund and to finance various cagital projects. In addition, the State of Arizona required that assets obtained at the completio� of criminal proceedings by the Town's police department be given to Pima County for custodial purposes. These assets are restricted for eYpenditures that will eghance the Town's ability to conduct police investigations. L. Pre�aid .x�enditures Prepaid expenditures are for payments made by the Town in the current year fc�r liability insurance coverages extendina into the subsequent year, and the reserve for prepaid items has been recognized to signify that a portion of fund balance is not available far other subsequent expenditures. M. Interfund Receivables and Pavables 1 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. Inventories The Town uses the purchase method of expendinQ inventories. There were na significant inventories on hand at June 30, 1999 in the aeneral fund. The inventories in the proprietary/water fund consist of supplies (aka water meters) and are recarded at the lo�ver of cost or market usin� the first in first out (FIFO) method. 16 � �� � � ' � � �J � , � ' � � , , TOW�i OF MARANA, A1�ZO�TA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1999 �i � 1 , , � � � � NOTE 1 - (Continued): O. Fised Assets SU1�Il�1ARY OF SIGNIFICANT ACCOUNTING POLICIES C'T�neral Fixed Assets Account ro �� FiYed 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, bridaes, curbs and gutters, streets and sidewalks, drainaQe systems, and li�hting systems, are not capitalized along with other general fiYed 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 af the asset or materially eYtend asset lives are not capitalized. No depreciation has been provided on any of the remaining assets. Interest has also been capitalized on fiYed assets in the Governmental Fund Type operations. Pro�rietarv Fund Tvn_e_ Property, plant, and equipment owned by the enterprise funds are recorded at cost. Repairs and maintenance are recorded as eYpenses; 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 Usefui Lives (Yearsl - Pump stations, distribution systems, equipment and improvements Oraanization costs Machinery, equipment, and assets under capital lease 20 40 5 P. Capitalized Lea�e Obliaations 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 retlected as an espenditure and other financina source, and simultaneously the acquired asset and related liability are reeorded in the General Fi�ced Assets Account Group and in the General Long-Term Debt Account Group. Capitalized leases of the proprietarv fund are accounted for entirely within the proprietary fund by capitalizing the asset acquired and recording the lease obligation as a liability. � � � 17 TOWN OF NIARANA, ARIZONA NOTES TO COiVIBINED FINANCIAL STATEMENTS June 30,1999 f NOTE 1 - SUlVII�i L�RY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): Q. C'om�►ensated A sences 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, 1999, will most likely not be paid within the current accounting cycle. Rather, in fiscal 2000 the Town will probably pay that year's accrual without utilizing amounts accrued from prior years. R. Fund Chan�es and Transactions Between Funds Transactions that would be treated as revenue, expenditures, or eYpenses 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 espenses initially made from that fund which are prope:ly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as reductions of the eYpenditure 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. Com�arative Data Comparative total data for the prior year is presented in the financial statements in order to provide an understandin� 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 chanaes in cash flo�vs in conformity with generally accepted accountin� principles. Neither is such data comparable to a consolidation. Inter�und eliminations have not been made in the a�gregation of this data. Certain comparative data have been reclassified to present such amounts in a manner consistent �vith the current year's presentation. �, i �� , , � , � l � LJ � � ' , , � ' � � � � TOWN OF 1�IARANA, ARIZONA NOTES TO COIVIBINED FYNANCI�' STATEMENTS June 30,1999 NOTE 1 - SUiVIMARY OF SIG1vIFICANT ACCOUNTING POLICIES (Continued): T. Sei?ed Prooertv The Town Police have in their custody certain assets seized in criminal proceedings. Until formal procedures have been ��nts that such assets not bep eflected determinable. In addition, legal requirem the Town's financial records in an aaency capacity until Town ownership has been determined. Consequently, no such assets are recorded on these financial statements. NOTE 2- DEPOSITS AND INVESTMENTS A. e 't 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 fiznds totaled $100 at June 30, 1999. At year end, the book value of the Town's bank demand account was $(411,781) and the bank balance was $973,331. The difference of $1,385,162 represents deposits in transit and outstanding checks at June 30, 1999. $100,000 of the total bank balance was covered by federal depository insurance and $�00,000 of the total bank balance was covered by collateral held by the Town's custodial bank in the Town's name; leaving a bank balance of $373,381 that was uninsured and uncollateralized. The uninsured balance is considered a Category � deposit in accordance with GASB Statement No. 3. The negative cash balance per ledger was offset by investments in the Town's pool account. These investments are liquidated as checks are redeemed. Restricted assets: cash is uncollateralized by the tnzstee holdin� these balances. At year Y 1 end, the book value of these balances, which was the same as the bank balances, totaled $24,980. B. Investments Statutes authorize the Town to invest public monies in certificates of deposit, interest bearing savinas accounts, and repurchase aareements provided eligible depositories meet interest rate, capital structure, and collateral requirements. Other authorized investments include obli�ations of the U.S. Government and its agencies, of Arizona utility and municipal improvement districts, and the Arizona State Treasurer's Local Government Investment Pool. The To�vn's investments as ot June 30, 1999 are= �,Iar�:et Value State Treasurer's Local Government Investment Pool � 13,793,799 a � � l .6�2 Ntoney Nlarket Funds � l�,�� l Total Investments ' 1 `� TOW�1 OF MARANA, ARIZONA NOTES TO COiV�INED FINANCIAL STATEMENTS June 30,1999 NOTE 2- DEPOSITS AND Ir�ESTlYIENTS (Continued) B. Inves#ments (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. Govemment Pool investments and money market funds are not categorized, in accordance with GASB No. 3, because they are not evidenced by securities that e;cist in physical or book en�ry form. A reconciliation of E�iibit 1 to �tote 2 is as follows: E�ibit 1 Cash/Pooled Investments Restricted assets: Cash/Investments Total Note 2 Cash Restricted assets: Cash Investments Total $13,387,118 4,276,622 � 17 663,740 $ (411,681) 24,980 �$,OSO �17 663,740 NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION The following is a summary of the chanQes in general fixed assets for fiscal 1999: � Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Leasehold improvements Total Balance �y 1 1998 �►dditions � 63,293 $ 451,101 345,449 826,282 762,373 _ 1,817,942 543,617 5�5,090 436,81� �16.162 ��7 9 �3 760.309 �?,�� Balance De eti ,Iune 30, 1999 � (5,009) $ 509,385 (61,181) 1,110,550 (48,625) 713,748 (644,540) 1,717,019 - 991,90� 464.157 $(7�9--�'� ��.SOfi.764 ? �} TOWN OF i�IARAl`1A, AKIZONA NOTES TO COI�INED FINANCIAL STATEMENTS June 30,1999 NOTE 3- FIYED ASSETS, NET OF ACCUI�IULATED DEPRECIATION (Continued) A summary of enterprise fund property, plant, and equipment at June 30, 1999 is as follows: Land Water rights Improvements, including wells and tanks �Iachinery, equipment, and other assets Asset under capital lease Organization costs Total Less accumulated depreciation and amortization Fised assets, net NOTE 4 - TNTERFUND TRANSACTIONS $ 14,720 50,000 2,523,401 45,157 26,541 54,737 2,714,556 � 272 8731 4�4 '' A. Amounts due to/from other funds at June 3Q,1999 are as follows: The amount due to the General Fund is due from: Special Revenue: .99$ Community Development Block Grant House Plan Program COPS Grant GITEM HIDTA MANTIS Auto Theft Highway User Revenue Capital Projects 1997 General Obliaation Enterprise: Water Total The amount due to Special Revenue Funds is as follo���s: $ 65,104 4,136 12.169 22,727 8,795 5,972 10,066 18,5�3 537,668 190.374 � 87� 614 The amount due to HON1E Pro,ram is due from the General Fund � 2.294 The amount due to CJEF CouR Fund is due from the General Fund 1�. � l 3 The amount due to P�G l�°'a Funds is due from the General Fund 64.=�70 Total `� 82.077 21 TOtiin1 OF YIARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS .�une 30,1999 NOTE 4 - INTERFUND TRAI�iSACTIONS (Continued} A. Amounts due to/from other funds at June 30 1999 are as follows: (Continued) 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 The amount due to Enterprise Funds is as follows: ', . 111 The amount due to the Water Fund is due from the 1997 General Obligation in the Capital Projects Funds $ 21 Q,102 ' ' C� , ' � , � B. RPsidual Ec�uity Transfers In/Out: The amount transferred to the Enterprise Funds is as follows: The amount transferred to the Water Fund was transferred from the 1997 General Obligation in the Capital Projects Funds The amount transfened to the Airport Authority was transferred from the General Fund Total NOTE 5 - CAPITAL LEASES $ 792,613 222 439 $I,915�52 � The Town has previously entered into several lon� term capital leases involving the acquisition of equipment for the Enterprise/Water Fund and General Town purposes; these commitments are eYpected 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, 1999: Fiscal Year Ending June 30. 2000 2001 Total minimum lease payments Less amount representina interest Present value of net minimum lease payments Water General Long- Funcl Term � 7,263 $ 80,043 - 27 7,263 132,311 .� 239) ___(1.� 42.) �4 �� 4 , � C� ' � � l _� � � , �� ' TOWPi OF MARAi�1A, ARIZONA NOTES TO CONIBINED FINANCIAL STATEMENTS June 30,1999 NOTE 6- LONG - TER'�I DEBT During 1998, the Town's enterprise/water fund was advanced funds under a zero-interest loan in the amount of �83,000 for the purchase of fixed assets for the water system, collateralized by two storaae tanks in the water system and requiring monthly payments of $733 over a ten year term. During 1998, a capital improvement project in the capital project funds was financed by a ta�cpayer. Under this unsecured agreement, the Town agreed to repay the taYpayer the total cost of $66�,881 for this project under a zero-interest repayment plan based on quarterly payments of 33% of the Town sales ta.x 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, 1999: Fiscal Year Water General Long- Endin� June 30, F�u ..� Term Debt 2000 2001 2002 2003 2004 Thereafter Total Less amount representinQ interest Principal $ 8,800 8,800 8,800 8,800 8,800 � � 79,200 -� - ) 7$ 9•200 $ 85,000 85,000 85,000 85,004 85,000 54.565 479,56� L—) 4 9 ,� A reconciliation of lonQ-term debt for the Water Fund at June 30, 1999 is as follo�vs: Note payable Capital Lease Total $ 79,200 7 2� , � �?� � ,; TOWN OF VIARANA, ARIZONA NOTES TO COMBINED FINANCIAI. STATEiY1ENTS June 30,1999 ,, NOTE 6- LONG - TERM DEBT (Continued) The following is a summary of changes in general long-term debt activity for fiscal 1999: Revenue Bonds (A) Compensated absences (B) Contract payable Capital leases Total $alances Balances at July 1, 7une 30, 1 g98 A ditions Reductions 1429_ $8,175,Q00 $ - $(245,000) $7,930,Q00 146,496 35,128 - 181,624 594,413 - (114,848) 479,565 2�4 4 __—_-_— �) � 4 �9 40- 97 � 2 �.(4�?2� ��' 9 A. Revenue Bonds The 1997 Series Revenue Bonds are callable as follows: Redem�tion Dates 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 Princi�a� 101.0% 100.5 100.0 Annual �ebt service requirements to maturity for these revenue bonds are as foIlows: Fiscal Year F�nding.June 30, 2000 2001 2002 2003 2004 Thereafter Total � Less amount representing interest Principul B. omnensated Absences 1997 Series Bonds $ 785,250 788,450 785,623 791,4�4 790,873 8 14�.440 12,037,090 � 4.I57,090) � 7_„930.000 This consists of the lon`�-term gortion of accrued vacation and compensatory time, �vith an increase of $35,12g for tiscat 1999. �a Towiv oF �iaxANa, ax�zo�a NOTES TO COMBINED FINANCIAL STATEMENTS Jnne 30,1999 NOTE 7- ADVANCED REFUi�1DING/DEFEASANCE OF DEBT Part of the proceeds ($592,753) 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 refundina 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,QOI 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 refundin� were 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, were removed from the Town's fmancial statements. At June 30, 1999 the amount of outstanding principal relative to the 1992 Series Revenue Bonds was $290,000 with the 1990 Series Revenue Bonds fully redeemed during fiscal 1999. NOTE 8- EMPLOYEE RETIREMENT SYSTEMS A. Arizona Public Safetv Retirement Svstem All of the Town's full-time police officers are covered by the Marana Marshal's Arizona Public Safety Personnel Retirement System, which is an aaent /multiple-emgloyer administered by the fund manaaer 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 Nlarana Nlarshal's plan. This report may be obtained by writing to the Arizona Public Safety Personnel Retirement System 1020 E_ Ntissouri Phoenix, Arizona 8�014. -, � TOWN OF MARANA, ARIZONA NOTES TO CO�INED FINANCIAL STATEMENTS June 30,1999 NOTE 8- ElVIPLOYEE RETIRElV1ENT SYSTEMS (Continued) A. Ar'�ona Public Safetv Retirement �vstem (Continued) The pension plan provides pension benefits, defened 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 aQe 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 officers who retire with 2� 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 yeazs of credited service with the Town, plus 2/2% of average monthly compensation for each year of credited service above 20 years with the Town. Police officers who retire with 20 years of credited service with the Town, plus 2% of average monthly compensation for each year of credited service between 20 and 2� years with the Town. Police officers who retire with less than 20 yeazs 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 ma�cimum monthly pension payment cannot exceed 80% of the averaQe 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. �6 ' ' , ' ' � i IJ , i i � , i � � � ' ' � � TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCI� STATEMENTS June 30,1999 r--, il � � � , , �� , NOTE 8- EMPLOYEE RETIRElV1ENT SYSTE�I�IS (Continued) A. Arizona Public Safetv R°*�Y°r"P�,t Svstem (Continued) Pension provisions include disability and death benefits. Disabled officers are entitled to monthly payments for life of 50% of their average monthly compensation or normal pension amount, whichever is greater, if their disability is service connected, regardless of years of credited service. Average monthly compensation (AMC) is one-thirty-sixth of total compensation paid a member during the 3 yeazs, out of the last 10 years of credited service, in which the amount paid was hiDhest. If the police officer's disability was not service connected, the disabled officer is entitled to monthly payments for life of 2�% 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 o�cer is only temporarily disabled, he is entided to monthly payments equal to one-twelfth of 50% of compensation paid during the year preceding the date the disability was incurred. The payments terminate after 12 months or prior recovery. Surviving spouses are entitled to two-thirds of the monthly payments, or 100% if duty related, the deceased active police officer would have been paid for disability or, in the case of a retired police officer, two-thirds of the retired o�cer'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. �Vhen the dependent child reaches the age of 18 or 23, if the dependent is a fizll-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 P aed mo� per h plu san amount coverage. However, they cannot be char� up to $47.50 per month for dependent coverage, if any. The Town's current year payroll for eliaible police officers amounted to approYimately $1,590,000. Police officers of the To�m are required to pay 7.6�% of their gross earnings to the pension plan. The To�vn makes periodic contributions to the pension plan at actuarially determined rates that, eYpressed as percentaQes of annual covered payroll, are desianed to accumulate sufficient assets to pay benetits �vhen due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded actuarial accrued liabilities are bein�� amortized as a leve! percent of payroll over an open period of 20 yenrs starting July l, 1999. Durin�7 1999, the To�vn was required to contribute 6.3�% of its police officers' covered payroll to the plan. �� TOWN OF lY1ARANA, AR�ZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1999 NOTE 8- EVIPLOYEE RETIREMENT SYSTENIS (Continued) A. Ar'�ona Public Safetv Retirement v tem (Continued) The contribution requirements of plan members are established and maybe amended by Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding policy provides for actuarially determined employer contributions at rates which will provide assets sufficient to pay benefits when due. This funding policy/objective is stated in the Arizona State statutes. Total contributions made durinQ fisca11999 were $222,390, of which $100,783 was made by the Town and $121,607 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, 1999, to determine the standardized measure of the entry age actuarial accrued liability and these assumptions are summarized below: . . 1 The present value of future pension payments is computed by usin� a discount rate of 9%. The discount rate is equal to the estimated lon� term rate of return on current and future investments of the pension plan. Future pension payments reflect an assumption of 6.�% (compounded annually) salary increases as a result of inflation. Future pension payments reflect an assumptian of additional projected salary increases rangin� from 0.0% to 3.0% per year, depending on a�e, 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, 1999 is as follows: Active members � 2,871,501 Retired members and beneficiaries currently receivina benefits 274,296 Vested terminated members not yet receivin, benefits '�' Total actuarial accrued liability 3,14�,797 Actuariat value of assets 3 374.g68 Unfunded actuarial accrued liability �L��9 071) � � 'J � , ' �� �� � TOWN OF MARANA, AR�ZONA NOTES TO COIV�INED FINANCIAL STATEMENTS June 30,1999 NOTE 8- EMPLOYEE RETIREIVIENT SYSTElVIS (Continued) A. ArLOna Public Safetv� �ent vstem (Continued) Re�uired Sunnlemental Information SC'n DULE OF EMPLOj'F'R CONTRIBU'�IONS Fiscal Annual Year Ended Required �� C'ontribution `- Valuation Date lune 30 1996 1997 1993 1999 Percent C'nntributed 0 1993 $ 18,629 100.0 0 1994 34,052 100.0% 1995 50,947 100.0% 1996 53,775 100.Q% 1997 62,948 100.0% 1998 66,970 100.0% 1999 100,78� 100.0% SCHFDITi�F OF FUNDIN(� PROGRF� (6) Unfunded ��� AAL as a (i) Entry Aee �(3) (4) (�) Percentage Actuarial Actuarial Percent Unfunded Annual of Covered Value of Accrued Funded AAL Covered Payr 1ll et i��biii (AAL) l l� (21-(ll P vr 1 4/" $ 1,462,76� 51,26Q,4�9 116.1% $ (202,�04) $ 96�,119 - % 1,9�6,0�9 1,&62,109 10�.0 (93,9�0) l;?7�,174 -% 2,�27,434 2,133,693 11�.� (338,736) 1,393,167 -°/a 3,374,368 3,14�,797 107.3 (229,071) 1,737,�09 - % : `> TOWN OF MARANA, ARIZONA NOTES TO COI�INED FINANCIAL STATElVIENTS June 30,1999 NOTE 8- ENIPLOYEE RETIRE�+IENT SYSTEMS (Continued) A. Ari�ona Public Safet Retirement System (Continued) Re�uired un�lemental Information (Continued) Fiscal Year Ended June 30, 1996 1997 1998 1999 Four Year Trend Information Annual Pension a t �-1pC) Percent Contributed Net Pension ' ti $ 58,775 62,948 66,970 100,?83 100.0% 100.0 100.0 100.0 �a 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 1999. DurinQ fiscal 1999 and as of June 30, 1999, the Marana Marshal's Arizona PERS held no securiti�s :ssued by the Town or ather related parties. B. Town of Marana Retirement Plan Effective July l, 1995, the Town established a Money Purchase Plan and Trust known as the Town of Marana Retirement Plan (Plan) in the form of the International City Management Association Retirement Corporation Prototype Money Purchase Plan and Trust. The prototype plan is qualified under Section 401 of the Internal Revenue Code. The Plan is a defined contribution plan that provides pension benefits for all full-time employees and permanent part-time employees, except for commissioned police personnel who are covered under the Arizona Public Safety Personnel Retirement System. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate from the date of employment. The Plan requires that both the employee and the Town contribute an amount equal to 4% of the employe�'s biweekly earninQs, �vhich includes overtime and bonuses. The Town's contributions for each employee (and interest allocated to the zmployee's account) are fiillv vested after five years of continuous service. � C. J ' ' ' I ;� � TOWN 4F MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1999 � ' ' ' ' ' NOTE 8- EiI�IPLOYEE RETIRElVIENT SYSTENIS (Continued) B. Town of Marana Retirement Plan (Continued) Town contributions for, and interest forfeited by, employees who leave employment before five years of service are used to reduce the Town's current-period contribution requirement. The Town's total payroll in fiscal year 1999 was approximately $4,010,000. The Town's contributions were calculated using the earnings amount of appro�mately $2,563,000. For fiscal 1999, the covered employees made the required 4% contribution, amounting to $102,506, with the Town making a smaller contribution due to the application of forfeitures, amounting to $94,393 for a total of $196,899. C. Postem�lovment Benefits The Town offers no postemployment benefits to employees other than the previausly discussed retirement plans. NOTi E 5-_ RISK MANAGEl�1ENT � The Town is eYposed to various risks of loss related to torts; theft of, damage to and destruction of assets; enors 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. EYCess 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 obliaations. The pool has the authority to assess its members additional premiums should reserves and annual premiums be insufficient to meet the pool's obliaations. For the fiscal years ended June 30, 1999, 1998, and 1997 there �vere no settlements throu�h the pool for the To�vn that exceeded insurance covera��e. Workers' compensation insurance is placed throu<�h the State Compensation Fund. ;l TOWN OF MAR��1A, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30,1999 NOTE 10 - EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS For fiscal year 1999, esgenditures exceeded authorized appropriations in the following individual special revenue funds: GITEM MANTIS LTAF $ 14,692 8,032 10,336 The eYCess expenditures for all of these funds were covered by grant revenues. At June 30, 1999, there were no individual funds with a deficit fund balance. NOTE 11- COMMITMENTS AND CONTINGENCIES The Town is continuously liable with respect to other claims incidental to the ardinary course of its operations. At June 30, 1999, 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, lonQ-term operating leases with expirations of November 1999 through November 200I. Two of these leases requires the Town to pay � 1 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 taYes, common area charQes, and mana�ement fees. However, the increased related to controllable common area charges and manaQement 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 twa-year renewal option at a monthly base rent of either the then escalated rental rate or 90% of the prevailing market rental rate at the time of renewal, and the 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 Inde:c (CPI) for the previous three years at the time of renetival. ;� C ' � �' � ' LJ TOWN OF MARA��IA, AR�ZONA NOTES TO CONIBINED FPiANCIAL STATEMENTS June 30,1999 NOTE 11 - CO�I�IMITib1ENTS AND CONTINGENCIES (Continued) These leases provide for payments of minimum annual rentals as follows, eYCluding real estate taxes, common area charges, management fees, and sales t�es: Years Ending June 30, 2000 2001 2002 Total $124,167 102,538 2 312 �249.0 lZ Minimum annual rentals above includes the renewal option eYercised subsequent to year end but excludes annual rental under the remaining renewal options as of June 30, 1999. Rent expense under the above leases for fiscal 1999 ag�'egated $156,032. NOTE 12 - 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 eYpense under this contract for the year ended June 30, 1999 was �: $b9,659. NOTE 13 - RELATED PARTY TRANSACTIONS During fiscal 1999, the Town passed throuah $4�,OQ0 of its Community Development Block Grant Programs to a local non-profit health care aaency. The Town's former mayor is the eYecutive director of this health care aQencv. Before makina these e:cpenditures, the Town Council discussed and approved the budget for these expenditures, which �vere also approved by Pima County (the Town's arantor for Community Development Block Grants). The former mayor did not participate in the presentation, discussion. or approval of these e�cpenditures. ;; TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEiVIENTS June 30,1999 NOTE 14 - SUBSEQUENT EVENT On October l, 1999, the Town completed the acquisition of the Marana Airport from Pima County. During fiscal 1999, a deposit for the full purchase price of $207,090 was made with Pima County for this acquisition. The Town has established the Airport Authority as an Enterprise Fund to reflect the activities of the Marana Airport. � These notes are an inte�ral part of the accompanyinQ combined �nancial statements. ;1 REQUIRED SUPPLENIENTAL INFOR�riATION 3� TOWN OF MARANA, ARIZON:� REQUIRED SUPPLEI�IENTAL IPIFOR1VI�iTION - YEAR 2000 Issue June 30,1999 The year 2000 issues is the result of shortcomings in many electronic data processinQ systems and other electronic equipment that may adversely affect the Town's operations during fiscal yeaz 2000. The Town has completed an inventory of computer systems and other electronic equipment that may be afFected by the year 2000 issue and that are necessary to conductinQ Town operations. Based on this inventory, Town management believes that its existing hazdware and software are year 2000 compliant. In fact, there has been no problems esperienced wzth the start of fiscal year 2000 that began July l, 1999. In addition, the Town implemented a policy during fiscal 1998 that it will only make purchases of hardwaze and software that are identified as year 2000 comgliant. Town management does not believe it is necessary to do any further or formai 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 manaaement cannot assure that the Town is or will be year 2000 ready, that any future Totivn remediation efforts will be successful in whole or in part, or that parties with whom the Town does business wiil be year 2000 ready. �; �1 � � ; f, ' ' � ' CI ' � � 1 �� � 1 0 1 1 1 �' COl��IBINING � INDIVIDUAL F UND AND AC C OUNT GROUP STATEMEl�TS 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 w�ich are not accounted for in other funds. In Marana, these services include general government, development and planning services, town attorney, police, magistrate court, anc� public works. e TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS GENERAL FUND — EXHfBIT A-7 June 30, 1999 and 1998 ASSETS Cash�Pooled Investments Receivables: Taxes Other Prepaid expenditures Due from other funds TOTAL ASSETS 1999 $ 13.387,118 t ,063,722 437,962 40,000 875,614 g 15 804,416 LIABILITIES AND FUND EL]UITY LIABILITIES Accounts payabie and accrued liabilities $ 908,505 Due to other funds 358,077 Deferred revenue 291,006 Total liabilities � � FUND EGlUITY Reserved for prepaid expenditures Unreserved fund balances Total fund equity 40,000 14,206,828 14,246,828 TOTAL LIABILITIES AND FUND EG�UIIY � 15.804,416 3 s 37 1998 $ 11,298,305 791,778 62, 544 42,000 70, 602 $ 12.265.229 $ 1,595,950 326,207 126,280 2,048,437 42,OQ0 10,174,792 10.216.792 � 12,2s�,22s TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGcS IN UNRESEAVED FUND BALANCE - BUDGET AND ACT1tAL GENEAAL FUND - EXNIBIT A-2 Year Ended June 30, 1999 Variance - Favorable Actual 6udget (Unfavorable) REVENUES Taxes Town sales tax Town sales tax audits $10,027,913 $ 9.175,437 $ 852,476 366,653 - 366,653 Totaltaxes 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 Totai licenses, fees and permits Fines, farfeitures and penaities; Town court fines Interest Miscellaneous Other Airport and ccnti^gent revenue Balance available from prior years Total miscellaneous Total revenues OTHEA FINANCIAL SOURCES 10,394,566 9,17a,437 1,219,129 488,576 459,704 28,872 610,580 610,847 (287) 185,597 120,000 65,597 1,284,753 1,190,551 94,202 2,368,600 1,921,859 446,741 50"6,442 - 506,442 46,762 36,000 10,762 18,585 t7,000 1,585 69,435 S5,Q00 54,435 3,069, 824 1,969, 859 1, 079,965 214,676 440,000 74,676 745,036 a50,Q00 495,036 48,So9 60,000 (11,431) - 1,ta0,000 (i,100,000) - 1,800,000 (1,800,000) 48,569 2,960,000 (2.911,431) 15,757,424 1&,005,847 (248,423) Bond proceeds - 1,6a5,491 (1,645,491) Total revenues and other financial sources 15,757,424 17,651,338 (1,893,914) EXPENDITURES General government Other general government Contractual services Commodities Special programs Other Cantingency Debt service Total other general government 21 g,g51 242,000 22,349 243 - (243) 657, 52 2 1, 936, 000 1, 278, 478 430,188 1,049,000 618,812 - 5,158,505 1,158,505 230,423 t,i08,800 878,377 1,538,027 5,494,305 3,950",278 38 , ❑ � , � ' �� � ' � � ' L� � ' � ' ' � TOWN OF MARANA, ARIZONA STATEMENT OF REYENUES, EXPENDITURES AND CHANGES IN UNRESEAVED FUND BALANCE - BUDGET AND ACTUAL GENEAAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 1999 EXPENDITURES (continued) General government (continued) Mayor and council Contractual services Commodities Other Capitai outlay Total mayor and council Variance - Favorable Actual Budget (Unfavcrable) $ 703 $ 3.35� $ 2,647 3,404 7,440 4,036 17,035 22,830 5,795 _ 1,000 1, 000 21,142 34,620 13, 478 Human resources Personal services Contractual services Commodities Speciai programs Other Capitai outlay Total human resources Accounting and finance Personal services Contractual services Commodities Other Total accounting and finance 81,080 78,437 (2,643) 9,360 12,000 2,640 2,685 - (2,685) _ 19,600 19, 600 71,049 40,748 (30,301) _ 5,000 5,000 164,174 155.785 (8,389) 106,047 127,527 21,480 30,754 27,450 (3,304) 7,280 9,175 1,895 6,072 9,328 3,256 150,153 173,480 23,327 Town Clerk Personal services 140,782 142,450 1,668 Contractual services 25,407 36,180 10,773 Gbmmodities 15,395 15,724 329 Other 36,450 46,060 9,610 Total Town C1erk 218,034 240,414 22,380 Town Manager Personal services Contractual services Commodities Other Contingency Capital outlay Total Town Manager Total generai government 186,546 233,034 46,488 145,355 217,735 72,380 12,362 8,802 (3,560) 7,241 17,025 9,784 _ 100,000 100,000 _ 18,000 18,000 351,504 594,596 243,092 2,443,034 6,693,200 4,250,160 39 TOWN OF MARANA, AAIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANG�S fN UNRESEAVED FUND BALANCE - BUDG�T AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continuedj Year Ended June 30, 1999 EXPENDITURES (continued) Development and planning szrvices Building services Personal services Contractual services Commodities Other Capital outfay Total building services Planning and zoning Personal services Contractuai services Commodities Other Total pianning and zoning Total development and planning services Town attorney Tax Water Prosecuticn - Annexation General services Condemnations and acquisitions Total town attorney �, Police Personal services Contractual services Commodities Other Capital outlay Total police Magistrate court Personal services Contractual services Commodities Other Capital outlay Total magistrate court Variance - Favorable Actual Budget (Unf�iarabie) $ 35&,140 $ 348,780 $ (7,360) 7,323 1 g,200 11, 877 t8,899 t2,600 (6,299) 52,614 15,6�0 3,036 - 1,400 _ 1,400 394,976 3�7,630 2,654 283,062 3t3,868 30,806 51,126 73,500 22,374 14,593 40,400 (1,193) 22,703 23,908 1,205 368,484 424,676 53,192 7fi3,460 859,306 55,846 8,139 10, 000 1, 861 23,621 24,Q00 379 113,424 100,000 (13,124) 4,429 1Q,000 5,571 95,389 150,000 �4,611 35,430 33,000 (2,43Q) 280,132 327,000 46,868 1,901,535 1,89Q,050 (11,485) 180,814 n3,300 (87,514) 99, 949 10Q, 950 1, 001 62,487 69,650 7,163 352,787 415,000 62,213 2.5s7,572 2,ssa,sso �za,s22) 218,468 228,292 9,824 49,231 50,200 969 27,774 10,000 (17,774) 9,178 13, 850 4, 672 - 32,500 32,500 304,651 334,842 30,191 ao ' � �� � � � � � � � ' , ' ' � � � �I TOWN OF MAfiANA, AAIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE — BUDGET A1VD ACTUAL GENERAL FUND — EXHIBIT A-2 (Continued) Year Ended June 30, 1999 EXPENDITURES (continued) Pubiic works Personal services Contractuai services Commodities Other Capital improveme�t projects Capital outiay Total public works Variance — Favorable Actual Budget (Unfavorable) g 70g,gp7 � 825,980 $ 116,373 1,905,705 2,117,637 211,932 181.772 199, 300 17, 528 90,534 72,025 (18,509) — 3,448,353 3,448,353 138.967 157,150 18,183 3,026,585 6,820,445 3,793,860 Totai expenditures 9,415,434 17,563,743 8,148,309 OTHER FINANClAL USES Transfers to otherfunds 2,089.515 — (2,089,515) Total expenditures and other financial uses 11,504,949 17,563,743 6,058,794 Excess of revenues and other financial sources over expend— itures and otherfinancial uses OTHEA CHANGES IN FllND EQUITY Decrease in reserve for prepaid expenditures Residual equity trarisfers out UNRESERVED FUND BALANCE, BEGINNING UNRESERVED FUND BALANGE, ENGI�:G 4,252,475 $ 87,595 � 4,164,880 2,000 (222.439) 10,174,792 $14,206,828 41 STATEl�1ENTS 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 Funds - includes the Community Development Block Grants, the HOME Program, the COPS Grant, GITEM, HIDTA, MANTIS, House Plan Program, LLBDG Grant, and 402 Grant. The separate funds have been established to account for grant revenues and to provide compliance with Federal grant regulations. Other Grant Funds - includes CJEF Court Fund, RICO, Auto Theft, LTAF, Highway User Revenue, and PAG 15% Funds. These funds are non-federal funds required by Arizona Statutes to be used for police or public works expenditures. 3 I �! F �I � m F- O� N=W N aWl� .0 y o� Z Z C Q 2 Q m u o �C7j c Ozw� Z m W � � � F-UQ U W d U'� i I Oi U Qi � LL � al � O j' UU� N C m O� c � � d � N Q � o a i I W O � = ol d� y C I � �� � j � �I m � O Y �d�� a>o U�mi I n �.I n � �I i I ��i n � ^�� n �I aq i n N N;I N I N � NI N N. 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N LLJ C . 7 C p C � O�"' V .- C L N>.0 Z U� N 7 � Q m �+� a� tA > �� Z Z N c� p m v� c �'O � r W N p y N � a c NU m� c OF c a mv v �, �+ C7 G � N U� K p y �. N � � � � j b �� O CO W � Q F�- ���� a i° m '^ Q t � c � a�i � Q� a c�i y c N t� v a> >. T a� a T��.= m m a� U o v �. > " �. " U L � m a c i ��° W W 3 E � W m& 3.` �° o a� " U U N � m� � rn>?'�^ 3= o c�- � Z n � m � o `� m o E a Z �' a ro � c� a J j m 3 �.� Y °_ .� � � itl � LL f � C c �.� � E°� � w a � �� c Q Q O�'-- �n— v— W L c•' � s s C? ��= � o`w u�i � o W� o� �� C7 a d U o W� :°. � c�'i t x C 0 > �=�amrc��na LL � �� f- — t- �U ~ = t- �` w ° �' > > LL! — � x F � C W O LL � , y W U 2 J Q tt7 � Z � � Z � 9 W d � � Q C _ � U �? Q Z N Q a � � N y H � � W m Q � � O � � A a ~ W d 2 p c 2 Z � � Q � 0 9 � LL W � C Oyt�W Z W W m �i = Z } �W W� W � � oa 2W 'L � � W H ¢ h- N � Z Z m � 0 U NI �� O� F I o I � VI � 3� a �I I m 7�I L y CI �� m 2 Q F J I Ci R N� OI v � ..I m �I -� v I J Q �i � Q F �I Z a! ��, I � O(O N (O � O Q � ���, r � N 01 � T t[f � 7� Oi� tn O v � c7 ��� � c7 O t� T v c7 i0 �O r O� O Ol in N m � Vf O � M � � � 1 I I I I 1 1 m I I I� � � � � oi � 0 � I 1 I I I I I 1 I � Q �N � � � r C � � � � � � � � � � � � � � O � O � a o v � I I I I I I l 1 1 I � � � N N � � I I I i I I 1 t I I� u� N y v p o a 0 I� i I I I I I �� �� � N N (7 � � O V � 1 I� I I I I I I I I� �I �� NI, � I I I I � 7� �I O 7 M� T � O� M �I �I �i �i oi vI I f0 I r � � O O a � NI OI 7 Oi o� v NI � Oi NI O Of tA P7I1� �p p7 cp O I� N O N NI� op O � �IM C+1 O � NIO � �O NIT � � I I � I � � � 0 0 I I � I � � � � � � � � � � O � v �+ I � � N N � � I I I � N C Q 0 0 I � I 1 � � � O � � � � � IN � �. m� M� �I ^I � p�l MI �I �� rI �i u�i I oi vI � � ni C! � ol OI a �D n N � Ni 7 0 o�i �f Q�. �I �I I� I � N � i. t�.���. 7 �' N cO j � II OII � r1l �I�,il /fN� I � �i i I I I I' VN � � � I I � I I I �i I I I I � v� I I I I I �� I �i � N � E � C y � N � N 7 V O �C � �a C � � �C7 U NV� Z ,� � � '" W c � c `w '� 2 C7 C C Y O Q'� U N 'G � tl7 L > O� 2 Z N Q 7 � v� C � C t E W fn O � N N C� 0 Q C O V U�0 n a Q. Q� O N O � C C � V O Cl7 � W � N o i° a ovi E y m a E �'" J`� N T� a Q H d�E �� n_ m N � 6 t '° c � �= a d °� c� m W W m I I 1 a a � � m C d y U a a " i tA .4 � '^ T.� U� �� v'� m U U a I I m ��'c � �� Z p c ft �� o'c m Q o c� �y � � Z Z ��V!:_' �v�mo'ar� oo.i Z` >a�i• � oro uE¢ Z � am a�� -� -� N G� R o' '^ O� �� �; o �.. ,y '^ d li. m �� ~ c c �'� E� LL w ��� u�i � a ca � �� t� �� c � u " ^ n � 3 m c�i i6 � � c ' � Z � C7 n�. a U o W,�y :°_ � c�i L X C C 2mrn��sU�3�^'omNmo Trt F 111� F i o:� xa� 2 Z W�=a�m2�da�F � F � Xv t-~' ~ W �� �ii � u; C � u. � m v TOWN OF MAAANA, ARIZONA 1998 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF REVEIVUES, EXPENDITURES AND CNANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-3 Year Ended June 30, 1999 REVENUES Other agencies Block grants — Pima County Total revenues OTHEA FINANCIAL SOURCES Transfers from other funds Total revenues and other financiai sources EXPENDITURES Current operations Generai government Community development Total expenditures OTHEA FINANCIAL USES Transfers to other funds Total expenditures and other financial uses Excess of revenues and other financial sources over expenditures and ot��e� financial uses FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variancs — Favorable Actual @udget (Unfavorable) $ 126,100 $ 180,000 $ (53,900) � 2s,100 � 80,00o t�,soo) 12,459 - 12.459 138,5�9 180,000 (41,441) 23,008 - (23,008) 65, 582 180, 00 0 114, 418 88,590 i80,Q00 94,410 49,969 - (49,969) 138,559 180,000 41,441 $ - � - � - 47 TOWN OF MARANA, ARIZONA HOME PROGRAM — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CNANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-4 Year Ended June 30, 1999 REVENUES Other agencies Block grants — Pima County Miscellaneous Sales proceeds Total revenues EXPE►VDITURES Current operations Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING „ 1 Variance — Favorable Actuai Budget (Unfavorable) $ 65,215 $ 605,000 $ (599,785) 64,019 — 64,019 129,234 665,000 (535,766) 159,716 665,000 505,284 159,716 665,000 505,284 (30,482) — (30,482) 50,760 — 50,760 $ 20,284 $ — $ 20,284 4V TOWN OF MARANA, ARIZONA COPS GftANT — SPECIAL REVEIVUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-5 Year Ended June 30, 1999 REVENUES Other agencies Public safety - U.S. Dept of Justice Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING �1 Variance — Favorable Actuai Budget (Unfavorabie) $ 123,517 $ 2t8,000 $ (94,483) 123,517 218,Q00 (94,483) 123,517 218,C00 94,483 123,517 218.OQ0 94,483 � _ $ — $ — 49 TOWN OF MARANA, AFiIZONA CJEF COURT FUND — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-6 Year Ended June 30, 1999 REVENUES Other agencies Public justice — Arizona Fines, forfeitures and penalties Town courtfines Interest Total revenues EXPENDITURES Current operations Police Magistrate court Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING Variance — Favorabie Ac tual Budget (Unfavorabie) � — s sa,000 � (ea,000) 6,484 — 6,484 213 — 213 6,697 84,000 (77,303) — 50,000 50,000 — 34,000 34,000 — 84,000 84,000 6,697 — 6,697 8,616 — 8,616 $ 15,313 $ — $ 15,313 50 TOWN OF MARANA, ARIZONA RICO — SPECIAL REVENUE FUND STATEMENT OF REi/ENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGcT AND ACTUAL EXHIBIT B-7 Year Ended June 30, 1999 REVEIVUES Other agencies RICO funds — Pima County Interest Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING 1 Varianc2 — Favorable Actual Budget (Unfavorable) $ 12,331 $ 20,000 $ (7,669} t,358 — 1,358 13,689 2Q,000 (6,311) 3,146 20, 000 16, 854 3,146 20,000 16,854 10,543 — 10,543 14,437 — 14,437 $ 24.980 $ — $ 24,980 J� TOWN OF MAFiANA, ARIZONA GITEM — SPECIAL REVENUE FUND STATEMENT OF REYENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-8 Year Ended June 30, 1999 REVENUES Other agencies Public safety — Arizona Total revenues EXPENDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING � Variance — Favorable Actual Budget (Unfavorabie) $ 109,692 � 95,000 � 14,692 109,692 95,000 14,692 109,692 95,000 (14,692) 109,692 95,000 (14,692) $ — $ — � — 52 TOWN OF MARANA, ARIZONA HIDTA — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAE. EXHIBIT B-9 Year Ended June 30, �999 REVENUES Other agencies Pubiic safety — Tucson Total revenues EXPENDITURES Current operations Police Totai expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING .� 1 Varianca — Favora�le Actua{ Budget (Unfavorab(e) $ 46,394 $ 50,000 $ (3,6t16) 46,394 SfJ,000 (3,6Q6) 46,394 5�7,000 3,606 46,394 50,000 3,606 � — � — � — 53 TOWN OF MARANA, ARIZONA MANTIS — SPECiAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-10 Year Ended June 30, 1999 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) $ 54,032 $ 46,00� $ 8,032 54,032 46,000 8,032 54,032 46,000 (8,032) 54,032 46,000 (8,032) g — g — $ 54 TOWN OF MARANA, ARIZONA AUTO THEFT — SPEClAL REVENUE FUND STATEMENT aF REVENUES, EXPENDITURES AND CHANGES 1N FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-11 Year Ended June 30, i 999 REVENUES Other agencies Public safety — Arizona Total revenues EXPE�IDITURES Current operations Police Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNlNG FUND BALANCE, ENDING ., Variance — Favorabte Actual Budget (Unfavorable) � 40,042 $ 43,000 $ (2,958) 40,042 43,000 (2,958) 40,042 43,000 2,958 40,042 43,000 2,958 � — � — $ — 55 TOWN OF MARANA, ARIZONA LTAF — SPECIAL REVENUE FUND STATEMENT OF REVEiVUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBtT B-12 Year Ended June 30, 1999 REVENUES Other agencies LTAF funds — Arizona Total revenues EXPENDITURES Current operations Public works Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDING :, Variance — Favorabie Acival Budget (Unfavorabie) $ 54,176 $ 43,840 $ 10,336 54,176 43,840 10,336 54,176 43,840 (10,336) 54,176 43,840 (10,336) $ — � — � — � TOWN O� MARANA, ARiZONA HIGHWAY USER REVENUE — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPEN�ITURES AND CHANGES !M FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-13 Year Ended June 30, 1999 REVENUES Other agencies Highway user fees — Arizona Total revenues EXPENDITURES Current operations Pubiic works Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGlNNING FUND BALANCE, ENDING 3, Variance — Favorable Actuai Budget (Unfavoraq{e) $ 405,559 $ 426,037 5 (16,478) 409,559 426,037 (16,478) 409,559 426,037 16,478 409,559 426,037 16,478 $ — � — � — 57 TOWN OF MARANA, ARIZONA PAG 15% FUNDS — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-14 Year Ended June 30, 1999 REVENUES Other agencies Public works — Pima Assoc. of Governments Total revenues EXPENDITURES Current operations Pubiic works Total expenditures Excess of revenues over expenditures FUND BALANCE, BEGINNING FUND BALANCE, ENDIiVG .� : Variance — Favorable Actual Budget (Unfavorabie) $ 185,530 $ 905,Q00 $ (719,470) 185,530 905,000 (719,470) i85,530 905,000 719,470 185,530 905,000 719,470 $ — � — � — 58 STATEMENTS C CAPITAL PROJECTS FUNDS Capital Projects Funds are created to account for ihe purchase or construction of major capital facilities which are not financed by tlie general, enterprise, or special revenue funds. 1997 General Obligation C�pital 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 accounis for the purchase ar construction of major capital facilities which are not funded by general obligation bonds. I .1 TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS — EXHIBIT C-1 June 30, 1999 ASSETS Due from other funds Restricted assets: Investments TOTAL ASSETS LIABILITIES AND FUND EGlUITY LIABILITIES Due to other funds Deferred revenue Total liabilities FUND EGIUITY Unreserved fund balances Designated for subsequent years' expenditures Total fund equiry TOTAL LIABILITIES AND FUND E�U17Y 1 Other 1gg7 Capital Generai Project Obligation Funds Totals � _ $ 276,000 $ 276,000 3,854,417 — 3,854,417 $ 3 854, 417 $ 276, 000 $ 4,130, 417 $ 747,770 $ — $ 747,TI0 _ 276,000 276,000 747,770 276,000 1,023,770 3,106,647 — 3,106,647 3,106,647 — 3,106,647 $ 3 854,417 $ 276,000 $ 4 130,417 �l-•/ TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGcS IN FUND BALANC� CAPITAL PROJECTS FUNDS - D(HIBtT C-2 Year Ended June 30, 1999 REVENUES Interest Other-Public Donation Totalrevenues OTHER FINANClAL SOURCES Tranfers from other funds Total other financial sources Total revenues and other financiai sources EXPENDITURES Capital improvement projects Tangerine Road Project Land acquisition for Town Hall Expansion Development and Planning Services and Magistrate Court Facilities Improvements Marana Park Improvements Development and construction of Senior Center Price Lane Improvements Lon Adams Road improvements Sandario Road Design Coachline/Silver 8ell Improvements Siiverbell/Cortaro improvements Silverbell Pedestrian Improvements Silverbell Median ImprovemeRts Safety Light improvements Moore Road/Sandario Road Improvements Hartman Lane Improvements Orange Grove Embankment improvements Total expenditures Ercess of expenditures over revenues and other nna��;;ial sources FUND BALANCES, BEGINNING Residuai equity transfers out FUND BALANCES, ENDING Other 1gg7 Capitai Gerteral Froject Obiigation Funds Totals $ 210.924 $ - $ 210.924 - 80,000 80,000 210.924 80,000 290.924 - 1.355.292 1, 355.292 - 1.355,292 1,355.292 210,924 1,435,292 1,646,216 - 35,799 35,799 341,031 80,000 421,031 308.213 134,989 443.202 - 521,794 521,794 349,315 400,258 749,573 - 158,500 158,50Q - 314 314 - 37,325 37,325 - t5,563 15,563 - 413 413 - 3,649 3,649 - 4,740 4,740 - 11,920 11.920 - 25,775 25,775 12,793 (2,676) 10,i17 206.C64 6,929 212.993 1.217.416 1,435,292 2,652.708 (1.00s.as2� - (�.00s.as2� 4.905.752 - 4,905,752 (792.613) - (792.613) $ 3,106,647 $ - � 3,106,647 60 STATEI�IENTS D E�iTERPRISE FUNDS Enterprise Funds aze established to account for operations that are financed and operated in a manner similar to a private business enterprises and where periodic determination of net income is desired. EYpenses, includin; depreciation, of providinQ goods or services to the general public are recovered primarily throujh user charges. Water Fund - 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. A�ort Authoritv - established tQ account for the financin� and operation of the Marana Airport. � TOWN OF MARANA, ARIZONA COMBINING BALANCE SNEET ENTERPRISE FUNDS - DCHIBIT D-1 June 30, 1999 Water Airport Fund Authority ASSETS CURREIVT ASSETS Deposit for fixed asset acquisition Receivables: Other Due from other funds Total current assets PROPEATY, PLANT, AND EQUIPMENT Land Water rights Improvements, including welis and tanks Asset under capital lease Machinery, equipment, and other assets Organization costs Total Less accumulated depreciation and amortization Total property, piant, and equipment TOTAL ASSETS LIABIIITIES AND FUND EGZUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Deposits Accrued payroll Total Due to other funds Current portion of capitat lease Current portion of note payabfe Total current liabiiities �. LONG- LIABILITIES Note payable, less current maturities above Total long-term liabilities Total liabilities FUND E�UITY Contributed capital Deficit Total fund equity TOTAL LIABILITIES AND FUND E�U17Y Totals $ - $ 207,090 $ 207,090 51, 572 - 51, 572 210,102 - 210,102 261,674 207,090 468,764 14,720 - 14,720 50,000 - 50,000 2,523,4Q1 - 2,523,401 26,541 - 26,541 45,157 - 45,157 39,388 15,349 54,737 2,699,207 15,349 2,714,556 279.873 - 279.873 2,419,334 15,349 2,434,683 $ 2,681,008 $ 222,439 � 2,903,447 $ 45,625 � - $ 45,625 5,842 - 5,842 51,467 - 51,467 190,374 - 190,374 7,024 - 7,024 8,800 - 8,80Q 257,665 - 257,605 70,4�0 - 70,400 70,400 - 70,400 328,�65 - 328,065 2,792,699 222,439 3,015,138 (439,750) - (439,750) 2,352,943 222,439 2,575,382 3 2,681,008 $ 222,439 $ 2,903,447 � TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, DCPENSES AND CHANGES IN FUND EQUITY — ENTERPRISE FUNDS — EXHIBIT D-2 Year Ended June 30, 1999 OPERATING REVENUES Current use charges Other Total operating revenues OPERATING EXPENSES Materiai, suppiies, and other expenses Depreciation expense Total operating expenses NET LOSS DEFICIT, BEGiNNING DEFiCIT, ENDING CONTRIBUTED CAPITAL, BEGiNNING Residual equifij transfers in COMTRl3UTED CAPITAL, ENDING FUND EQUITY, ENDING Water Airport Fund Authority Totals $ 532,447 � — $ 532,447 22,801 — 22,801 555,248 — 555,248 551,128 — 551,128 103,363 — 103,363 654,491 — 654,491 (99,243) — (99,243) (340,513) — (340,513) {439,756) — (439,756) 2,000,086 — 2,000,086 792,613 222,439 1,015,052 2�7g2,ggg 222,439 3,015,138 � 2,352,943 � 222,439 $ 2,575,382 62 TOWN OF MARANA, ARIZONA CQMBiNtNG STATEMENT OF CASH FLOWS ENTERPRISE FUNDS - EXHIBIT D-3 Year Ended June 30, 1999 CASH FLOWS FFiOM OPEAATING ACTiVITIES Loss from operations Adjustments to reconcile loss irom op�ations to net cash provided by operating activities: Depreciation Changes in operating assets and liabitities: Decrease in accounts receivable Decrease in inventories Increase in accounts payable and acctued expenses Net cash provided by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES (Increase) in due from other funds Increase in due to other funds Residuai equity transfers from genera! fund Residual equity transfers from capital project funds Deposit for fixed asset acquisition Principal paid on capital lease Principal paid on note payable Purchase of fixed assets Net cash used in capital and related financing activities NET DECREASE IN CASH CASH, BEGINNING OF YEAR CASH, END OF YEAR 1� Water Rirpert Fund Authcrity Totais $ (99.243} $ - $ (99,243) 103,363 - 103,363 4,715 - 4,715 22,268 - 22.268 12.989 - � 12,989 44,092 - 44,092 (210,102) 172,229 792,613 (8��) (8.800) (781.198) (44,092) $ - - (210,102) - 172.229 722.439 222,439 - 792,613 (2a7,090) (207,090) - (8,834) - (8,800) (t5,349) (796,54� - (44,092) $ - $ - 63 ' TOWN OF MARANA, ARIZONA COMPARATiVE BALANCE SHEETS WATER FUND — EXHIBIT D-4 June 30, 1999 and 1998 1999 ASSETS CURRENT ASSETS Receivables: Other Due from other funds Inventories Totai current assets PROPERTY, PLANT, AND E�UlPMENT Land Water rights Improvements, including wells and tanks Asset under capital lease Machinery, equipment, and other assets Organization costs Total Less accumulated depreciation and amortization Totai property, piant, and equipment TOTAL ASSETS LIABILITIES AND FUND E�UITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Deposits Accrued payroll Total Due to other funds � Current portion of capital lease Current portion of note payable Total current liabilities LONG—TERM LIABILITIES Capitai less current maturities above Note payabie, less current maturities above Total long—term liabilities Total liabilities FUND EQUITY Contributed capital Deficit Total fund equity TOTAL LIABILITIES AND FUND EC�UITY $ 51, 572 210,102 261,674 14.720 5a,000 2,523,401 26,541 45,157 39,388 2,699,207 279,873 2,419,334 $ 2,68i $ 45,625 5, 642 51,467 190,374 7,024 8, 800 257,605 70,400 7Q.400 328,065 2.792, 699 (439, 750) 2,352,943 $ 2,681,008 1998 $ 56,287 22,268 78, 555 T 4, 720 50,000 1, 743, 869 26,541 43, 491 39, 388 1, 918, 009 176, 510 1,741,499 $ 1,820,054 $ 35,900 2, 578 38, 478 18,145 8,834 8, 800 74,257 7,024 79, 200 86,224 160, 481 2,000,086 (340, 513) 1,659,573 $ t , 820, 054 [�! TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CNANGES IN FUND E�UITY — BUDGETAND ACTUAL WATER FUND — EXHIBIT D-5 Year Ended June 30, t999 OPERATiNG REVENUES Current use charges Other Total operating revenues NONOPERATING REVENUES Bond proceeds Totai nonoperating revenues Total revenues OPERATING EXPENSES Material, supplies, and other expenses: Personai services Contractual services Commodities Other Depreciation expense Total operating expenses NONOPERATING EXPENSES Capital outlay Total nonoperating expenses Totai expenses NET INCOME (LOSS� DEFICIT, BEGiNNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEG1N(VING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EC]UITY, ENDING Variance — Favorable Actua{ Budget (Unfavorabte) $ 532,447 $ 1,t01,000 $ (508,5�3) 22,801 — 22,801 5�5,248 1,101,000 (545,752) — 3,079,190 (3,079,190) — 3,0�9,190 {3,079�,490) 55�,248 4,180,190 (3,624,342) 214,024 192,743 (21,281) f 19,222 319,874 200,&52 172,644 72,577 (10Q,06� 45,238 72,501 27,263 103,363 — �j�.� 6�4,491 657,695 3,204 — s,sio,oso s,s�o,asa — 3,610,090 3,61Q,090 6�4,491 4,267,785 3,613,294 (99,243) (87,595) (11,648) (344,513) — (340,5i 3) (439,756) (87,595) (352,161) 2,000,086 — 2,OOO,Q86 792,613 — 792.613 2,792,699 — 2,792,699 3 2.352,943 S (87,595) $ 2,440,538 65 , STATEi�IENTS E GENERAL FIXED ASSETS ACCOU�IT GROUP The General Fixed Assets Account Group is comprised of those fixed assets of a governmental jurisdiction which aze not accounted for in the Enterprise Funds. � u �� � ' � , ' Infrastructure assets, which include roads, bridges, streets, and street lighting systems are ' not included in these schedules. ., � ' ' C� �� i � � i � 0 1 1I TOWN OF MARANA, ARIZONA COMPARATIVE SCHEDULE OF GEiVERAL F1XED ASSETS BY SOURCE EXHIBIT E-1 June 30, 1999 and 1998 jgg9 1998 GENERAL FIXED ASSETS Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Leasehoid improvements TOTAL GENERAL F1XED ASSETS $ 509,385 1.11Q,5b0 753,748 t ,717,019 991,905 464.157 $ 5 �06,764 $ 63,293 345,449 762,373 1.817,942 555,090 216,162 $ 3,760,309 INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE From Current Revenues $ 4,202,125 From Revenue Bonds 938,340 From Federal Grants �� TOTALINVESTMENTIN GENERAL FIXED ASSETS $ 5.506,764 � $ 3,418,719 341,590 $ 3,760,309 � ln CO O (O (O CO �t V� � i � m m r c�o � a�D o r� �� N' co �ri r� oi o oi cc �07 `� � c r�i � rn � oi �°i o : �� � �' T � �I � � NI N � �I � N ln fD O �j O c0 C ,�� N M m � N j� � N r � � � � p � Oi �' a �' Ei — j � d31 � � Y � �� mI v � a; i i i i i i ��1 ¢ � Z � �' z � I N �o M � r� �oC rnl � 47 N� tJf � C�� � N � � fD O� V � QO NI Q ao v Q co � v r � QZ ����Q! t� c° r� O � W � I �� � � N �. � m ¢ � N � � m � r �) Q Cn I � N N�� � N � � n � Z F- W ' - N 'a mi I I � °� o I i �i CCU)p�c� Q�(�JI � N nl I �¢= c I E» u�l o x� � � X i p O) tD t0 0� Z lL �] t�0 V m � �I � I � O Q �! o � � � o �n � N r � � � �7; � {� ^1 m+ W � � � � i p Q c�7� � � J � m I i I I � I OI � J ; v �n � � y I � � U � � i W � N �; a' Q > , c � 0 Q � � c X � a o ° u. �' � � � � �� � `° � c m � a� a o � °' � ° �' � ° u�i > � y T . � � � � O � � W �; a .� `° 3 � � � f6 �� a� � � E �, C7 � ; N c� � � � s J Q C7 � a � � U � � r , TOWN OF MARANA, ARIZONA SCHEDULE OF CFIANGES IN GENEAAL FiXED ASSETS - BY FUNCTiON AND ACTIVITY EXHIBIT E-3 Year Ended June 30, 1999 Generai Fixed Additions Deletions General Fixed Assets and and Assets Function and Aciivity Jufy 1, 1998 Transters Transfers June 30, 1999 General govemment $ 424,831 � 420,620 $ (118,616) $ 726,835 Development and pianning services 354,408 260,061 (178,711) 435,758 Police 1,271,734 352,787 (236,831) 1,387,690 Magistrate court 40,662 134,950 (15,822) 159,796 Public works 977,916 197,218 (2Q4,278) 970,850 Community development 66,190 789,078 (60",190) 789,078 Parks and recreation 624,568 436,814 (24,631) 1,036,751 TOTAL GENERAL FIXED ASSETS � 3,760.309 $ 2,591,534 $ (845,079) $ 5,506,764 v 1 m ' ' ' ' �J ' 1 � � � � � 0 � � � � �� �� STATISTICAL SECTION � rno��rnv�rrn� NaO�mNONN�U � �(O�ROt�tOCOt(IM �0 a70�tOa0C9 !O 0 Q� O�� t0 W N� � M�iAtOa0VM0 O �r�rN��0O1V a � � r Z O F- U 2 � m Z N � � � � ~ �' a o ¢—zQ d Q QWti c�a F Z C LL W � ? � � F 3 Z 5 � O W i- > � � J � W Z W (J ? � O�f � NN� U �> I I I p I I��� Q d N FCS � � � �N I�t00 � N a0 Of � O 1� 'Q� I I I p�m I 1 O�� � 3 Nr NaDtO V O c�i c�i � - o cor�rnoaonm � �����rn� coo�r�nro.- � co v uS ri oi o Y � � raoaoaoNm I I n. � � oin�noaonrn�vco � I rncoco�nmovvno C Q... 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F-�- � � ^ O Z �N cn N � TOWN OF MARANA, ARIZONA TABLE I11 ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (Unaudited) Fiscal Year 1989 —90 1990 — 91 1991 —92 1992 — 93 1993 —94 1994 —95 1995 — 96 1996 — 97 1997 — 98 1998 — 99 Assessed Property Value $17,903,587 20,639,806 21,302,281 20,105,438 21,360,473 46,427,724 49,677,845 59,454,386 72,242,105 81,390,365 Estimated Praperty Value $ 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, 813 560,419,914 Ratio of Total Assessed Value to Total Estimated Value 13% 13% 13% 13% 13% 16% 15% 16% 15% 15% Note: Inciudes real property only Source: Pima County Assessor's Office of Pima County, Arizona 3 73 , N H Z W � Z � W O � C7 Z W Z �-J� � �ow ¢ �wr N ¢ > � W ¢ d Z JZfA Q m � Q LL � �i- LL W � � � Q Z ��tA ' `� g � o W a Q v � Q .2 H � W a O ¢ a vroc�ornmor�v aoor�co�nvaDncom N 7� C7 O M a C+> c7 � � Ch V Of aD cp t!J f0 O � N N N N N N N �� N HI I � � o000000aoo 0 0000aoa000 oo r��r�r�� � C `m j U � � N � ,� N OOOOOOOOOO va� �o 0 U � m � � u� � N� I I 1 I I i I I 1 �,j LL. • N m� Q � � NO V 00�00('}fONCfl • � W �t lA � M C:J C7 N� � �� O�OV��O�aO�m(O �_ f�mm�0r-���r 0000'- � o •�' oU� U � O O O O O O O O O N � O o 0 o O O O o 0 C y O V NNIAr1�OC?M1t�tO . �n o ao .- v co cv �n �n ao 3 dt ` co r: co r� r� ���o «ico LL� °no i � oo�nor�cninc�m � �mcocovcornnvo C p V V T M tA N N IO 1� 1� R � L « ln N(O CO N(V fA � f0 � V N �m��nnn���n � � � � fR �� ������� T t0 [O I� � N 01 W� V V' �6 "6 � O �� CD ('� (O 1A IA N N O � 7 � C 1� �n l� l� V c9 c7 t9 M M a U I O ��y O O O O O O O O O O � 69 V' � tn �t a R�'�1' V' V � O N N N N N N N�. N N �00�0 (WNNO � � � NN N(VNN�N.N � o000000000 ULL� I � M t� lD N I� 1� CP � N h C� O f0 N tA N c9 M tD 00 ��'OOOMtOr N � 7 4Y�OOaDf�O�N�A 0 V V� 1n � R!LS V V ln a v> 000000 000000 o � nr�r�r�nn vvvvvv � o00000 k I I I fn Q � O � N M R�A tO f� �D � N � � � 01 � � � � � � � N} I I I I I I! I i I LL � O N M V' tf? fD 1� CO � m�� m W m� m� �01���0�0)m�� N m U � � m N N N � ; � U c O � N ' U N V U 0 � .- c � • O L M � ~� f� r N N T � � L N N t N � � � � � � N CS7 O C � � � � �' � N � Qt� � ttiii� O ��•� �� LL o «, o � - o V�' y � U Rf � � c ' N - m� O a U U � � � N y N O y N i=p p t C •�-� N O N Q 0 � � L ��� d� � _. � o« � '�' � � � c c y o� d 3 m � m a�i m � � oEro �'°' N Y j, t C X U �C ° o o N ° o y >. o. `m � U d m � � �� m � C X�C o m a O•� H� N m � 'o; o a E L U � LL c6 `� ~ � O Z � N � ' ' � , ' � ' ' � ' n ' ' ' ' � 1 ' TOWN OF MARANA, ARIZONA TABLE V COMPUTATION OF LEGAL DEBT MARGIN GENERAL OBLIGATION BONDS June 30, 1999 (Unaudited) Net Assessed Valuation Debt Limit Amount of debt applicable to debt limit: General obligation bonds outstanding Less assets in debt service funds available for payment of principal Amount of debt applicable to debt limt Legal debt margin available $ 81,390,365 20% Bonds (1) $ 16,278,073 6% Bonds (2) $ 4,883,422 Total $ 21,161,495 $ 16,278,073 $ 4,883,422 $ 21,161,495 N otes: (1) Under Arizona law, Towns can issue general obligation bonds for purposes of water, sewer, artificial light, and parks up to an amount not exceeding 20% of assessed valuation. (2) Under Arizona law, Towns can issue general obligation bonds for all purposes other'than those listed in Note (1) above, up to an amount not exceeding 6% of assessed valuation. Sources: Town of Marana, Arizona and Pima County Assessor's Office of Pima County, Arizona 75 TOWN OF MARANA, ARIZONA TABLE VI COMPUTATION OF DIREGT AND OVERLAPPtl�tG DEBT June 30, 1999 (Unaudited) Jurisdiction Town of Marana, Arizona Pima County Marana School District Flowing Wells School District Net Bonded Debt Outstanding $ 7,930,Q00 153,280,000 65,220,000 17,950,000 $ 244,380,000 P ercentage ApplicabPe to Tawn of Ma�ana 100.F7t}�0% 1.7'086% 27.d1 QO% 7.6923% Amount Applicable to Town of Marana $ 7,930,000 2,618,909 17,615,922 1,380,769 $ 29,545,601 Notes: (1) The bonded debt of Town of Marana, Arizona includes revenue bonds issued by the Marana Municipal Property Corporation. (2) Percentages and applicable amounts are estimated by the Tovvn of Marana, Arizona based upon assessed property values and square mileage of intersected territory. Sources: Town of Marana, Arizona and Pima County Assessor's O�ice � of Pima County, Arizona � TOWN OF MARANA, ARIZONA TABLE VII LEASE REVENUE BOND COVERAGE LAST TEN FiSCAL YEARS (Unaudited) Fiscal Year 1989 — 90 1990 — 91 1991 — 92 1992 — 93 1993 — 94 1994 — 95 1995 — 96 1996 — 97 1997 — 98 1998 — 99 Excise Revenues Principal $ 768,149 $ — 1, 259,135 — 939,598 — 1,148,229 — 3,902,424 — 6,447,896 5,000 7,516,097 15,000 9,461,127 15,000 10,995,247 560,000 14,963,819 245,000 Interest _ $ 7,619 $ 22,858 22,858 49,402 47, 361 47,061 45,993 44,903 479,362 Total 7, 619 22,858 22,858 49,402 47,361 52,061 60,993 59,903 560,000 724, 362 Coverage 100.82 55.09 41.11 23.24 82.40 123.85 123.23 157.94 19.63 20.66 Notes: (1) Excise revenues include Taxes, Other agencies, Licenses, fees and permits, and Fines, forfeitures and penalties in General Fund revenues. (2) Excise 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 77 TOWN OF MARANA, ARIZONA TABLE VIII DEMOGRAPHICS June 30, 1999 (Unaudited� Population by Age Group Percentage Age Group Number of Total Under 5 452 8.51% 5 —14 808 15.22% 15 —19 329 &.20% 20-29 807 i5.20% 30-39 1,i83 22.28% 40-49 757 14.26% 50 — 64 624 i 1.76% 65 and over 349 6.57% Total 5,309 10Q.00°� Population by Ethnic Background Percentage Age Group Number of �otal White 3,624 68.26% Hispanic 1,200 22.60% Black 189 3.56% NativeAmerican 133 2.51% Other 163 3.07% Total 5,309 100.0�% Population by Jurisdiction: Town of Pirna State of Years Marana Caunty Arizona 1995 Special Census 5,309 758,050 4,�28,900 1990 Census 2,i87 66�,880 3,665,305 1980 Census 1,674 531,443 2,7f8,425 1970 Census 1,154 351,667 1,775,399 Note: Population figures are based on a recount campleted by the U.S. Census on September 14, 1995 Sources: U.S. Census Bureau and Tawn of Marana, Arizona Unemployment Averages: Town of Pima Siate of Years Marana County Arizona 1997 2.4°!0 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 Stat�s 5.0% 5.4% 5.6% 6.1 % 6.8% 7.4% 78 TOWN OF MARANA, ARIZONA TABLE IX PROPERTY VALUE, CONSTRUCTION, AND BANK DEPOSITS LAST TEN FISCAL YEARS (Unaudited) Fiscal Year 1988 —89 1989 — 90 1990 — 91 1991 — 92 1992 — 93 1993 — 94 1994 — 95 1995 — 96 1996 — 97 1997 — 98 1998 —99 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, 813 560,419,914 Residential Construction Number of Units Value 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 1,003 108,490,481 Commercial Construction Number of Units Value N.A. $ N.A. N.A. N.A. 5 318,629 10 1,713,967 1 20,000 5 189, 244 41 5,742,572 40 1, 842,171 36 4,284,366 40 6,675,409 37 15,730,402 Bank Deposits (000's) N.A. 7,509 8,555 9,414 9,189 9,939 10,256 9, 538 11,998 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 either fiscal 1999 or 1998. Sources:� "Operating Banks and Branches" by Federal Deposit Insurance Corporation and Town of Marana 79 TOWN OF MARANA, ARIZONA TABLE X MISCELLANEOUS STATISTICAL DATA June 30, 1999 (Unaudited) ' ' Date of Incorporation: March 21, 1977 Form of Government: 7 member council/Manager Largest Employers Fry's Marana School District K — Mart Tucson Electric Power Flowing Wells School District Evergreen Air Center Payless Cashways Arizona Army National Guard Product/ Service �eEail — Foad� � School Retail — Stores E{ectric Utilitiy School Retail — Service Retail — Stores Government Number of Employees (1) 1,500 (2) 1,21 i (1) 1,200 (1) 989 (1) 645 (2) 642 (1) 210 (2) 160 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 �ddresses listed as Marana, Arizona. Source: "Star 200 (The Major Employers of Southern Arizona)" published by the Arizona Daily Star on March 14, 1999 Town Employees: June 30, 1999 Full — Time _ Part — Time Total 133 27 160 ' � , �__ � ' ' , � ' � Police Protection Number of Stations Total Full — Time Employees Commissioned Employees Parks and Recreation Acres Parks Playgrounds Swimming Pools Water Utiliry Operable Wells Active Services: Metered Unmetered Water Distributed (Gallons) 2 57 46 40 1 1 1 12 f,130 14 139,525,370 ' ' �� ' ' m ' I