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HomeMy WebLinkAbout2001 Financial Statement June 30�, � �' �. � . . .... i • 1 f �= t � � � � �I e, ? � Y 1 �' � �I� � ';� r � `t, i J 'y; : '�: TABLE OF CONTENTS INTRODUCTORY SECTION . Letter of Transmittal ................................................................................ Town of Marana Officials ........................................................................ Town of Marana Organizational Chart .................................................... GFOA Certificate of Achievement .......................................................... FINANCIAL SECTION Pa�e . I . IX . X . XI Opinion of the Certified Public Accountant .................................................. 1 C'leneral Pur�ose Financial Statements Ex i i Combined Balance Sheet - All Fund Types and Account Groups ......................................................... Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types.......................................................................... Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Governmental Fund Types ....................................... Combined Statement of Revenues, Expenses and Changes in Equity - All Proprietary Fund Types....... Combined Statement of Cash Flows - All Proprietary FundTypes ................................................................. Notes to Combined Financial Statements ..................... 1 2 3 4 5 2 3 5 7 8 9 Combinin�. Individual Fund and Account Grou� Statements and Schedules General Fund Comparative Balance Sheets .........................................A-1 Statement of Revenues, Expenditures and Changes in Unreserved Fund Balance - Budget and Actual......A-2 Special Revenue Funds Combining Balance Sheet .............................................B-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................B-2 1999 Community Development Block Grant - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................B-3 36 37 42 44 46 TABLE OF CONTENTS � l.l • � � � � . . 1 � � 1 ! ' • . ! � � "11 "1 ell 1'� ._" � -� . J 1 � , � . 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, Expenditures 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 Actual ..........B-10 Auto Theft - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ..........B-11 Highway User Revenue - Statement of Revenues, Expenditures and Changes in Fund Balance - Budgetand Actual .......................................................B-12 LTAF - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-13 LLEBG - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual..........B-14 Debt Service Funds Combining Balance Sheet .............................................C-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................C-2 2000 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget Actual .......................................................C-3 1997 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual .......................................................C-4 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 TABLE OF CONTENTS Combining, Individual Fund and Account Grou� Statements and Schedules (Continued) E i it a e Capital Projects Funds Combining Balance Sheet .............................................D-1 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................................D-2 2000 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................D-3 1997 General Obligation - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................D-4 Other Capital Project Funds - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ......................................D-5 Enterprise Funds Combining Balance Sheet .............................................E-1 Combining Statement of Revenues, Expenditures and Changes in Fund Equity ..............................................E-2 Combining Statement of Cash Flows ...........................E-3 Comparative Balance Sheets - Water Fund ..................E-4 Comparative Balance Sheets - Airport Authority .........E-5 Statement of Revenues, Expenses and Changes in Fund Equity - Water Fund - Budget and Actual ..................E-6 Statement of Revenues, Expenses and Changes in Fund Equity - Airport Authority - Budget and Actual.........E-7 General Fixed Assets Account Group Comparative Schedule of General Fixed Assets by Source.........................................................................F-1 Schedule of General Fixed Assets - By Function and Activity .................................................................F-2 Schedule of Changes in General Fixed Assets - By Function and Activity ............................................F-3 62 63 64 65 66 68 69 70 71 72 73 74 76 77 78 TABLE OF CONTENTS STATISTICAL SECTION (Unaudited) a 1 Page General Government Expenditures by Function - Last Ten Fiscal Years ...........................................................I General Revenues by Source - Last Ten Fiscal Yeaxs ...........II Assessed and Estimated Value of Taxable Property - Last Ten Fiscal Years ...........................................................III Property T� Rates - Direct and Overlapping Governments - (Per $100 of Assessed Value) - Last Ten Fiscal Years........IV Computation of Legal Debt Margin General Obligation Bonds ...................................................................................V Computation of Direct and Overlapping Debt .......................VI Lease Revenue Bond Coverage - Last Ten Fiscal Years .......VII Demographics ........................................................................VIII Property Value and Construction - Last Ten Fiscal Years ...........................................................IX Top Ten Sales Taxpayers .......................................................X Miscellaneous Statistical Data ...............................................XI 80 81 82 83 84 85 86 87 88 89 90 � � J i ! MARANA /i\ TOWN OF MARANA December 31, 2001 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, 2001 is hereby submitted. The Government Finance Officers Association of the United States and Canada (GFOA) most recently 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, 2000. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standaxds 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 five consecutive fiscal years ended June 30, 2000, 1999, 1998, 1997 and 1996. 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 coordination with the Town's special consultant, Mr. Ron Kovar, CPA and the Town's auditors, Clifton Gunderson LLP. Responsibility for the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the Town. To the best of our lrnowledge 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 Background Located in northern Pima County, the Town of Marana is one of the fastest growing communities in Arizona. The recently conducted 2000 census listed Marana as the fast growing city in Arizona. Over the ten year I 13251 NORTH LON ADAMS ROAD ! MARANA, AZ 85653-9723 o TELEPHONE: (520) 682-3401 � FAX: 682-2654 period from 1990 to 2000, Marana's population increased from 2,162 to over 13,000, an increase in excess of 500%. Straddling Interstate 10, Marana is only 10 miles north of downtown Tucson and 90 miles south of downtown Phoenix. Marana's original incorporation covered approximately ten square miles. Today, the Town boundaries encompass over seventy-five square miles. In its infancy, the Town was primarily a rural, agricultural community. However, through annexations and planned growth, the Town is now home to several residential, commercial and industrial developments, including Continental Ranch, Sunflower, Heritage Highlands and Continental Ranch Business Park. 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 regularing businesses and trades and other municipal purposes. The Town Council appoints the Town Manager who has full responsibility for executing Council polices and administering Town operations. Town employees are hired under personnel rules approved by the Council. A staff of approximately 175 employees is responsible for the functions and operations of the Town government. 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 cultural events. ECONOMIC CONDITION AND OUTLOOK Current Condition The Town of Marana continues to demonstrate significant fiscal growth and improvement. At June 30, 2001, the unreserved, general fund balance was $20.1M, an increase of 9% from the previous fiscal year. Since fiscal 1996, the unrestricted general fund balance has increased from $6.6M to $20.1M at fisca12001 year end, an increase of over 200%. The Town's economic prosperity and fiscal improvement continue to be fueled by a strong, albeit, slowing local economy, prudent fiscal management and a management philosophy that fosters economic development opportunities. As expected, sales tax revenues continue to comprise a majority (68%) of general fund revenues. Retail trade and the construction industry accounted for over $9.OM, or 73%, of total tax revenues. Retail trade grew by 3% ($178K), while the construction industry fell by 18% from the prior year. The decrease in construction tax revenues is consistent with the decline in single family residential (SFR) permits issued for the year. SFR pernuts decreased by 16% from the previous year. The growth in retail trade was spurred by the manufactured housing segment of the industry. The Town has benefited from the recent opening of six retail manufactured housing outlets in Southern Marana due to the tax liability accruing at the origin of sale, rather than the site placement of the manufactured home. In FY O l, the Town received in excess of $200K from the sale of manufactured homes, which partially offsets a reduction in ta�c receipts from the top five retailers. II The moderate growth in retail sales, combined with the reduction in construction tax receipts, compelled staff to prepare a more conservative budget for FY 02. Sound fiscal management practices are key to the continuing success of the Town. Commencing with the budgetary process and continuing with monthly management reports that monitor and report budget variances, the fiscal processes ensure that total spending remains within approved budgetary levels and within available financial resources 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 growth continues to occur predominately in two distinct areas of the Town. Continental Ranch, while nearing build-out, is still home to several significant developments, including Continental Reserve, Sunflower, Silverbell West and Silverbell Place. Similarly, the Dove Mountain area continues to experience growth in Heritage Highlands, Quail Crossing, Canyon Pass and Villages at Dove Mountain and Dove Creek. Collectively, the two development areas are planned for over 10,000 homes. With the adoption of the Northwest Marana Regional Plan and completion of bank protection along the Santa Cruz River, significant residential activity is expected to occur in the northwest quadrant of the township. Imminent projects include Rancho Santa Cruz, San Lucas and La Mirage. From the commercial perspective, several new business establishments commenced operations in FY O1, including Holiday and Ramada Inn Express, Wendy's, and Luke's Italian Beef. New commercial projects under construction at fiscal year end included Inn Suites, Jack in the Box and La Parrilla Suiza restaurant. Collectively, these new business entities will significantly enhance the local tax and employment base of the Town. While construction has yet to begin, the Hyatt Regency Resort Project and Wal-Mart are expected to have a huge economic impact on the community. Annual ta�c revenues of two million dollars are expected to accrue to the Town from these two establishments. Construction is expected to commence in the first quarter of 2002 for both projects. In summary, the economic outlook continues to be positive despite a slowing of the local economy, particularly the retail trade and construction industry sectors. The FY 02 budget reflects a reduction in tax revenues and, therefore, spending levels have been adjusted accordingly. In short, the Town is well positioned to absorb the affects a downturn in the economy. III MAJOR INITIATIVES Current Year Proiects Fisca101 yielded several accomplishments that were consistent with the policy direction set forth by Mayor and Council during the budget process. Among the notable achievements were the following: ❖ Acquisition of the Trico facility ($3.OM) to serve as the operations center for the Town of Marana; ❖ Construction of approximately $3.8M in road improvements to increase transportation capacity in congested areas, primarily on Cortaro Road between Silverbell and I-10; °:• Expenditures of approximately $979K for enhancement to the Town's municipal water system, including acquisition of water rights that will enable the Town to serve its growing population; ❖ Expenditures of approximately $270K for capital improvements to the Marana Northwest Regional Airport, primarily for the design and construction of a fire protection/suppression system that should spur economic development activities within the area; •:° Commencement of design activities for park and recreation amenities, including the Continental Ranch Neighborhood Park and the Santa Cruz River Park; FY O 1 expenditures totaled approximately $100K; °:° Acquisition of vehicles, equipment and machinery totaling approximately $677K, including $200K for seven new police vehicles; all expenditures are designed to replace aging equipment and enhance staff's ability to respond efficiently and effectively to service demands; ❖ Implementation of a funding plan that ensures equitable financing of development-warranted infrastructure; Future Year Proiects � The Town is committed to improving and increasing service levels to its residents and planning for the proper and orderly growth of the community. To that end, the following activities have commenced or are in the planning stages for the very near future: ❖ On-going design and construction of a municipal complex that will provide for the consolidation of services and facilities to better serve the public; ❖ On-going design and construction of roadway improvements to increase traffic capacity; $12.OM programmed in FY 02 for such improvements, ❖ Implementation of the recently adopted Northwest Marana Regional Plan in anticipation of expected development in the northwest quadrant of the township; •:° On-going design and construction of infrastructure improvements to the Marana Northwest Regional Airport to facilitate economic development in the area; •�m Master planning, design and construction of Parks and Recreation amenities, to include 40 miles of multi- use trails system, including 21 miles of the Juan Batista Historic De Anza Trail, and a 48 acre district park that will feature a public library and a multi-sports complex9 ❖ Implementation of a fully integrated digital dispatch and communications system for the police depariment, to include automated vehicle locator and remote, in-vehicle report writing capabilities; 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 from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. N 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 financial 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 staf£ This budget is reviewed by the Town Council and is formally adopted by the passage of a budget resolution. The Town Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Town CounciL Revenue and expenditure reports that compare budget versus actual results are produced monthly and are distributed to senior staff and others upon request. General Fund The General Fund is used to account for expenditures of traditional governmental services as well as financial resources other than those required to be accounted for in other funds. General Fund revenues totaled $18,586,046 in fisca12000-2001, an increase of 2.01% from FY 99-00. General Fund increases (decreases) over the last year are shown in following tabulation: Revenue Source Taxes Other Agencies Licenses, Fees & Pernuts Fines, Forfeitures & Penalties Interest Income Other Amount $12,613,851 $1,596,725 $2,429,073 $359,444 $1,306,134 $280,819 Total $18,586,046 Percent of Total 67.87% 8.59% 13.07% 1.93% 7.03% 1.51% 100.00% Increase/ (Decrease) from 2000 ($343,426) $175,554 ($154,734) $54,634 $386,671 $246,974 $365,673 Percent Increase/ (Decrease) from 2000 -2.65% 12.35% -5.99% 17.92% 42.05% 729.72% 2.01 % The decrease in tax revenues is attributable to a slowing local economy, particularly the construction industry. Construction tax receipts were down by 18% (�700K), following the lead of new housing permits, which were down 16%. Retail sales grew by a modest 3%, which partially mitigated the reduction in construction sales tax. Other agency revenue grew primarily because of an increase in the per capita distribution from the State of Arizona. Income from licenses, fees and permits decreased marginally due to a reduction in the number of single family residential (SFR) housing permits issued. Perrriits dropped off by 16% from the prior year.. Fines, forfeitures and penalties increased modestly due to a continuing increase the volume of cases and an aggressive sentence enforcement policy, which includes the employment of a collection agency to pursue delinquent accounts. The increase in interest income is a continuing reflection of the accumulation of reserves combined with sound cash management. V The increase in Other Income stems from the adjudication of a long-standing case, of which the outcome was favorable to the Town of Marana. General Fund expenditures for general government purposes totaled $13,045,439 in fisca12000-2001, an increase of only 10.15% from FY 99-00. 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 Magistrate Court Public Works Parks & Recreation Debt Service/Capital Lease Amount $2,472,388 $2,642,826 $362,106 $3,202,162 $304,082 $2,871,481 $982,723 $207,671 Total $13,045,439 Percent of Total 18.95% 20.26% 2.78% 24.55% 2.33% 22.01 % 7.53% 1.59% 100.00% Percent Increase/ (Decrease) From 2000 $47,799 $1,397,055 ($-14,668) $128,937 ($24,085) $12,372 ($335,094) ($10,511) $1,201,805 Percent Increase/ (Decrease) from 2000 1.97% 112.14% -3.89% 4.20% -734% .43 % -25.43% -4.82% 10.15% A marginal increase in General Government expenditures occurred in FY O1 from the previous fiscal year. Modest increases in personnel costs were offset by lower operating expenditures amongst most general government departments. The increase in Development Services expenditures is due primarily to the centralization of operating asset purchases, namely, vehicles and equipment and related services, e.g., repairs and maintenance. In FY O1, approximately $860K was expended for vehicles and equipment, which previously were reflected in the using deparhnent's budget. Personnel costs (additional) related to the expansion of the GIS division also contributed to the increase. Cost control measures implemented during the year account for the decrease in Town Attorney expenditures. The increase in the general fund for Police stems primarily from adjustments in the compensation plan. The changes to the salary plan were driven by local market conditions and were designed to attract and retain qualified staff. This, again, demonstrates the Council's commitment to offer competitive wages and benefits to its employees. The increase in personnel costs was partially offset by the aforementioned centralization of asset purchases. General fund expenditures for the Magistrate Court decreased due to lower operating expenditures. The removal of capital equipment purchases, in conjunction with lower operating expenditures, leads to the statistical anomaly for Parks and Recreation. Despite the overall increase in expenditures, the Town's general fund balance increased by nearly 9%, again indicating sound fiscal management practices. Capital Proiects Fund Proceeds of the Series 1997 and 2000 Revenue Bonds are accounted for in the Capital Projects funds until improvement projects are completed. During FY O1, $7.6M was expended for capital projects, with the lijl majority dedicated to roadway improvement projects and the municipal complex (Trico facility). Capital Project fund balances on hand at year-end represent primarily cash and cash investments. Proprietarv/Enterprise Water Fund The Town's enterprise funds, consisting of the water and airport fund, showed a net loss, collectively, of approximately $373K, due primarily to fees paid to consultants for various studies, e.g., rate analysis, water master plan, etc. FINANCIAL MANAGEMENT Debt Administration At June 30, 2001, Marana Municipal Property Corporation had two revenue bond issues outstanding. The Series 1997 bonds were issued in October 1997 and the Series 2000 were issued in February 2000. At June 30, 2001, the outstanding bond indebtedness for the Series 1997 bonds totaled $7,080,000, while the total bond indebtedness for the Series 2000 bonds was $9,250,000. The proceeds of the 1997 Series Bond issue were (are) used to finance capital improvement projects, namely design and construction of major roadways and water system improvements. The Series 2000 bond proceeds are being used to design and construct a municipal complex. Through the years, the Town has entered into numerous capital lease agreements allowing the Town to acquire assets without a major immediate impact on fund balances. 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 Mana�ement The Town of Marana uses a system of consolidated cash mariagement where cash from all funds are pooled. Cash to be used for the payment of current expenditures is kept in a money market savings account. Excess and idle cash is kept on deposit with the State of Arizona Treasurer's Local Government Investment Pool (LGIP). Cash in the LGIP is available upon 24 hour notice and earns a return comparable to U.S. government securities. Interest earned on cash and investments from all funds totaled $2,021,145 in FY 00-01, net of bank analysis fees and investment expenses. Risk Mana�ement 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 $2,000,000. 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 camer for worker's compensation during FY 00-0 L Various risk control techniques, including employee accident prevention training, are utilized to control the Town's risk exposure. OTHER INFORMATION Independent Audit The State of Arizona requires a bi-annual audit of the books of account, financial records and transactions of all departments of the Town by independent auditors. The Town has elected to have its audit conducted on an annual basis. The firm of Clifton Gunderson LLP has been retained to perform the June 30, 2001 audit. The auditor's report is included in the Financial Section of the report. VII Acknowled�ments The preparation of the CAFR was made possible by dedication of Mr. Ron Kovar, CPA, Clifton Gunderson LLP, and the entire staff of the Town's Finance department. Mr. Kovar is the Town's special consultant and Clifton Gunderson LLP 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 Mayor and Council for their interest and support in planning and conducting the financial operation of the Town in a responsible and progressive manner. r ,, 7 l�espectfully submitted, ���� � � A �� Michael C. Hein Town Manager l /� ��� Roy Cuaron Finance Directar VIII ������� � h`� � ,,,;� � _ a �_ . ����.. .., TC?M,tN t�� MARANA TOWN COUNCIL Bobby Sutton, Jr., Mayor Herbert Kai, Vice Mayor Jim Blake Patti Comerford Tim Escobedo Eddie Honea Carol McGorray SENIOR STAFF Michael C. Hein \ Town Manager Michael Reuwsaat \ Assistant Town Manager Roy Cuaron \ Finance Director Jim DeGrood \ Development Services Administrator Brad DeSpain \ Utilities Director Jocelyn Entz \ Town Clerk Daniel J. Hochuli \ Town Attorney Jack Holden \ Building Official Jane Howell \ Human Resources Director Farhad Moghimi \ Town Engineer/Public Works Director Joel Shapiro � Planning & Zoning Director Dave Smith \ Police Chief Ron Smith \ Parks & Recreation Director Joseph Teta \ Court Administrator Ix r _ Town of Marana � DEPARTMENTAL ORGANIZATION �ovo�ioz� �� � � , , � ' - � 1 �. . 1 1 � � � � � 1 � � � ' � ' � i Certif icate of Achievement for Excellence in Financial Ae ortin � g Presented to Town of Marana, Arizona For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2000 A Certificate of Achievement for F�ccellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financia] reporting. �.X Pr sident ��� �C�� Fxecutive Director XI ' Clift�on � Gunderson zLP Certified Public Accountants & Consultants Independent Auditor's Report Honorable Mayor and Town Council Town of Marana Marana, Arizona We have audited the accompanying general-purpose financial statements of the Town of Marana, Arizona as of and for the year ended June 30, 2001. 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 material respects, the financial position of the Town of Marana, Arizona as of June 30, 2001, and the results of its operations and cash flows of its proprietary fund types for the year then ended, in conformity with auditing standards generally accepted in the United States of America. , In accordance with Government Auditing Standards, we have also issued a report dated December 11, 2001 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. That report is an integral part of an audit performed in accordance with Government Auditing ' Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general- purpose financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. The information included in the introductory and statistical sections is presented for purposes of additional analysis and is not a required part of the general-purpose financial statements of the Town of Marana, Arizona. Such additional information has not been subjected to the auditing procedures applied in our audit of the general-purpose financial statements and, accordingly, we express no opinion on such information. � � ., _ � i Tucson, Arizona December 11, 2001 Offices in 13 states and Washington, DC � � Internationai ' ' ' 1 � 1 1 _ i 1 t 1 i i 1 1 1 1 1 1 GENEI�:AL PURPOSE FI��TANCIAL S TATEMENT S I H m _ W � N f- a 0 W � N N � QW�� Z Z ? O N CL¢$c � p Q c 7 � ? Z ' ZCDQ 38N O W r � 0 Z � LL J J Q C O � N � E R� o � F- � E w � O N i m ., c � �o � E d d C N N ~ 7� O � C � � U � y Q � Q C N � � X LL �' N N � .� d � .� a - o `m Q C C a LL W m = 'a � U � d d � U N � � N � � V C N � a> C ��[C d E r a "� > j �LL � c � 1��! 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' EA � � � p p V V �O p � O� � � n t0 V N c0 � I I I I� I p I N I I I n � I I N� I I I I I N I p N � N �- f9 N N yj F» vi d' v�i�i� c�.i�orn � o� m r�i o m m � O � NC�nO� I I I I I �j �� I� m 1 I I � I i � � �j 1� i!1 O � �f1 N 01 [7 O � � � � � N F � N N N N fA � � � � W C U ¢ W � _ N y a O � r � « i¢ � m L� d� U d � Z "o CL N `� � � �� '� � .'� c d V � �° � �' `m C'1 � �n � r w N � N O� E m � U ll� N d X V� N 7 � � . � a�i �v E' d > i° 2 �'� °' Z m° y c?y E� v,y E v Q c p E'� �v >.LL d'o N �'> I W � m y o_ 7 r � m E �� >�� °�'° a O d� m m O m d � w� H �c� W c"� ' Z ��� r Q md°iv,a-°�coy-o �W� v � v av E m d- tA � ��-'� m = o� � a � d d rU � N d L N y�- � p y O i- LL ttl > � Y . �� ._ V O O O� � y � C J� d� XT� ow�o..�Q W aLE� m f ���� �ppw o�, .` � w - o o � m�, � v, - fA t/1 N ..�. y v = > > d� d d m� c �� Q 2 o , � E a�n._.... a�� y w w � o d m p �� E� � Z Z d o,m N a-r- tp � E a`�i d'� °�=r >>� a a � F= � o I t o w '-�� �+� m °' m._ z� o f N a U x t O. �«. �� O O W y a� J J J V a) � w � C' d C N Ui U; Oi y C 1— J W �o � w d� O���' U U E E a x� Q �� o w � o d>>¢¢� � o � Q 0 N U �O¢ dO¢ QQ ii O G Q QO J� � U O�LL � QQ Q F J J �- ~ C � � � U � a d C a O N O m � 0 m � TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES - EXHIBIT 2 Year Ended June 30, 2001 ' ' Totals Special Debt Capital (Memorandum Only) , General Revenue Service Projects 2001 2000 REVENUES Taxes $12,613,851 $ - $ - $ - $12,613,851 $12,957,277 Other agencies 1,596,725 1,390,077 - 2,277,704 5,264,506 2,965,901 Licenses, fees and permits 2,429,073 - - 108,355 2,537,428 2,583,807 Fines, forfeitures and penalties 359,444 - - - 359,444 314,300 Interest 1,306,134 1,343 1,000 712,668 2,021,145 1,236,692 Other 280,819 100,286 - - 381,105 170,531 Total revenues 18,586,046 1,491,706 1,000 3,098,727 23,177,479 20,228,508 OTHER FINANCIAL SOURCES Bond proceeds - - - - - 9,999,625 Transfers from other funds - - 109,023 2,047,003 2,339,923 4,495,949 2,151,419 Total other financial sources - 109,023 2,047,003 2,339,923 4,495,949 12,151,044 Total revenues and other financial sources 18,586,046 1,600,729 2,048,003 5,438,650 27,673,428 32,379,552 EXPENDITURES Current operations General government 2,472,388 30,530 - - 2,502,918 2,444,083 Development and planning services 2,642,826 - - - 2,642,826 1,245,771 Town attorney 362,106 - - - 362,106 376,774 Police 3,202,162 519,727 - - 3,721,889 3,544,326 Magistrate court 304,082 - - - 304,082 328,167 Publicworks 2,871,481 - - - 2,871,481 3,484,673 Parks and recreation 982,723 - - - 982,723 1,317,817 Community development - 404,839 - - 404,839 260,559 Debt service Principal retirement 205,288 - 1,185,000 - 1,390,288 626,913 Interest 2,383 - 811,549 - 813,932 376,519 Fiscal agent fees/bond issuance costs - - 3,500 - 3,500 279,411 Capital improvement projects - - - 7,612,744 7,612,744 1,149,605 Total expenditures 13,045,439 955,096 2,000,049 7,612,744 23,613,328 15,434,618 OTHER FINANCIAL USES Transfers to other funds 3,866,951 628,998 - - 4,495,949 2,151,419 Total other financial uses 3,866,951 628,998 - - 4,495,949 2,151,419 Total expenditures and other financial uses 16,912,390 1,584,094 2,000,049 7,612,744 28,109,277 17,586,037 Excess (deficiency) of revenues and other financial sources over (under) expenditures and other financial uses 1,673,656 16,635 47,954 (2,174,094) (435,849) 14,793,515 FUND BALANCES, BEGINNING 18,472,148 108,549 985,225 12,003,293 31,569,215 17,811,277 Residualequitytransfersout - - - (979,474) (979,474) (1,035,57� FUND BALANCES, ENDING $20,145,804 $ 125,184 $1,033,179 $ 8,849,725 $30,153,892 �31,569,215 See notes to combined financial statements. 3 � TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - ALL GOVERNMENTAL FUND TYPES - EXHIBIT 3 Year Ended June 30, 2001 Generai Special Revenue Actual Budget (a) Variance Actual Budget (a) Variance REVENUES Taxes $12,613,851 $14,800,000 $ (2,186,149) Other agencies 1,596,725 1,484,425 112,300 Licenses, fees and permits 2,429,073 2,443,000 (13,92� Fines, forfeitures and penalties 359,444 350,000 9,444 Interest 1,306,134 770,000 536,134 Miscellaneous 280,819 2,415,000 (2,134,181) Total revenues 18,586,046 22,262,425 (3,676,379) OTHER FINANCIAL SOURCES Bond proceeds - - - Transfe�s from other funds - - - Total other financial sources - - - Totai revenues and other financial sources 18,586,046 22,262,425 (3,676,379) EXPENDITURES Current o erations $ - � $ - $ - 1,357,158 1,495,240 (138,082) ' , ' _ 1 - - - ' 1,343 _ _ - . 1,343 100,286 - 100,286 1,458,787 1,495,240 (36,453) ' .103,383 103,383 , 103,383 - 103,383 1,562,170 1,495,240 66,930 ' p General government 2,472,388 3,032,888 (560,500) Development and planning services 2,642,826 2,766,350 (123,524) Town attorney 362,106 350,000 12,106 Police 3,202,162 3,185,965 16,197 Magistrate court 304,082 344,598 (40,516) Public works 2,871,481 2,489,183 382,298 Parks and recreation 982,723 982,336 387 Community development - - - Debt service Principal retirement 205,288 160,570 44,718 Interest 2,383 - 2,383 Fiscal agent fees/bond issuance costs - - - Capital improvement projects - - - Total expenditures 13,045,439 13,311,890 (266,451) OTHER FINANCIAL USES Transfers to other funds 3,866,951 8,950,535 (5,083,584) Total expenditures and other financial uses 16,912,390 22,262,425 (5,350,035) Excess (deficiency) of revenues and other financial sources over (under) expenditures and other financial uses 1,673,656 - 1,673,656 FUND BALANCES, BEGINNING 18,472,148 - 18,472,148 Residuai equity transfers out - - - FUND BALANCES, ENDING $ 20,145,804 $ - $ 20,145,804 17,052 519,727 381,976 918,755 15,000 490,000 15,000 610,820 364,420 1,495,240 2,052 29,727 (15,000) (610, 820) 17,556 (576, 485) 628,998 - 628,998 1,547,753 1,495,240 52,513 14,417 - 14,417 108,549 - 108,549 $ 122,966 $ - $ 122,966 (a) The Town's budget included an additional $737,250 for revenues and �841 ,797 for expenditures for water enterprise and airport authority activities that are not included in this statement because these activities are proprietary in nature. 5 _ ' . ' ' Debt Service Capital Project Actual Budget (a) Variance Actual Budget (a) Variance ' _ _ - _ _ _ _ _ $ — $ — $ — $ — $ — $ — • — — — 2,277,704 7,895,780 (5,618,076) ' _ _ = 108,355 375,000 (266,645) 1,000 — 1,000 712,668 _ 712,668 t 1,000 — 1,000 3,098,727 8,270,780 (5,172,053) _ __ 5,000,000 �s,000,000� _ , 2,047,003 2,049,493 : — (2,490) 2,339,923 6,796,495 (4,456,572) 2,047,003 2,049,493 (2,490) 2,339,923 11,796,495 (9,456,572) ' 2,048,003 2,049,493 (1,490) 5,438,650 20,067,275 (14,628,625) ' _ _ _ . _ _ _ -__ .- __ , — — — — — _ , 185 000 1 185 000 — — — — 1, 811,549 809,242 2,307 — — — , 3,500 55,251 (51,751) — — — 7,612,744 28,967,275 (21,354,531) 2,000,049 2,049,493 (49,444) 7,612,744 28,967,275 (21,354,531) ' — — — — — — 2,000,049 2,049,493 (49,444) 7,612,744 28,967,275 (21,354,531) ' 47,954 — 47,954 (2,174,094) (8,900,000) 6,725,906 � 985,225 — 985,225 12,003,293 8,900,000 3,103,293 — — — (979,474) — (979,474) ' $ 1,033,179 $ — $ 1,033,179 $ 8,849,725 � — $ 8,849,725 ' ' See notes to combined financial statements. 6 ' TOWN OF MARANA, ARIZONA ' COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY — ALL PROPRIETARY FUND TYPES — EXHIBIT 4 , Year Ended June 30, 2001 Proprietary Totals ' Fund Types (Memorandum Only) _ - - : Enterprise 2001 2000 t OPERATING REVENUES Current use charges $ 676,955 $ 676,955 $ 624,482 , Other 79,373 79, 373 18,112 Total operating revenues 756,328 756,328 642,594 ' OPERATING EXPENSES Material, supplies, and . _ . _ _ _ _ _ . . - other expenses 923,922 923,922 917,515 ' Depreciation expense 205,144 205,144 152,787 Total operating ' expenses 1,129,066 1,129,066 1,070,302 NET LOSS _ - _ (372,738) {372,738) (427,708) ' DEFICIT, BEGINNING (867,464) (867,464) (439,756) DEFICIT, ENDING (1,240,202) (1,240,202) (867,464) ' CONTRIBUTED CAPITAL, BEGINNING 4,050,715 4,050,715 3,015,138 ' Residual equity transfers in 979,474 979,474 1,035,577 CONTRIBUTED CAPfTAL, ENDING 5,030,189 5,030,189 4,050,715 ' FUND EQUITY, ENDING $ 3,789,987 $ 3,789,987 $ 3,183,251 ' , � ' ' � ' See notes to combined financial statements. ' 7 ' __ , � ' _ .___ _ _ _ __ I TOWN OF MARANA, ARIZONA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES — EXHIBIT 5 Year Ended June 30, 2001 Proprietary Totals Fund Types (Memorandum Only) Enterprise 2001 2000 __ : _ _ CASH FLOWS FROM OPERATING ACTIVITIES � ' Loss from operations $ (372,738) $ (372,738) $ (427,708) Adjustments to reconcile loss from operations to net cash used in operating activities : , Depreciation 205,144 205,144 152,787 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable 2,476 2,476 (31,026) Increase (decrease) in accounts payable , and accrued expenses (166,942) (166,942) 263,224 Net cash used in operating activities (332,060) (332,060) (42,723) ' CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES ' (Increase) decrease in due from other funds 98,616 98,616 (66,336) Decrease in due to other funds (26,964) (26,964) (163,410) Net cash provided by (used in) ' noncapital financing activities 71,652 71,652 (229,746) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES ' Residual equity transfers from special revenue funds — — 185,580 Residual equity transfers from capital project funds 979,474 979,474 849,997 Principal paid on capital lease — — (7,024) , Principal paid on note payable (8,800) (8,800} (8,800) Purchase of fixed assets (713,266) (713,266) (747,284) Net cash provided by capital and related financing activities NET INCREASE W CASH CASH, BEGINNING OF YEAR CASH, END OF YEAR 257,408 $ — 257,408 272,469 $ — � — SUPPLEMENTAL SCHEDULE OF NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES During fiscal 2000, the Town financed the purchase of fixed assets with the application of a deposit for fixed asset acquisition of $207,090. See notes to combined financial statements. 8 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: , ' ' � ' report. Control is determined on the basis of budget adoption, taxmg authonty, and the ' ability to significantly influence operations and accountability for fiscal matters. The A. �eneral Statement The Town of Marana (the Town) was incorporated on March 21, �1977, under the provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town operates under a council-mayor form of government. All funds and entities related to the Town that are controlled by the Mayor and Council are included in the annual financial Town provides a full range of services including general government, development and planning, legal, public safety, public works, and parks and recreation services. The accounting policies of the Town conform to generally accepted accounting principles - (GAAP) as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing accounting and financial reporting principles. The more significant accounting policies of the Town are described below. B. Financial Re�orting Entitv _ _ In accordance with Governmental Accounting Standards Board Statement 14, "The Financial Reporting Entity", these financial statements present the Town and its only component unit, the Tow�n of Marana Municipal Property Corporation (MMPC). The MMPC is blended with the Town in these financial statements because the MMPC was established by the Town in order to fund the debt incurred to finance the purchase of the Town hall, various capital projects, and fixed assets used by the water fund. In addition, MMPC only provides services to the Town. MMPC also issues an annual financial report, which is available through the Town of Marana's Finance Department. C. Basis of Presentation The accounts of the Town are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into generic fund types and broad fund categories as follows: � _ _ _ __ , TOWN OF MARANA, ARIZONA � NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 _ i ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): ' _ C. Basis of Presentation (Continued) - ' ' . Governmental Fund Ty�es _ _ __ . _ _ General fund - This fund is the general operating fund of the Town. It is used to '' account for all financial resources, except those required to be accounted for in another '� _ �a. _ . - � : _ _ _ 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. _ I ' _ - --- -_ -- : _ _ __ __ - - _ - - - - 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 being financed from General Obligation Bond proceeds, grants from other agencies, or transfers from other funds. ■ - Pro�riet Fund T.Xpes 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 beginning in fiscal 2000) as noted below: Enterprise funds - These funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the governing body is that the costs (expenses, including depreciation) of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. 10 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): ' ' ' C. Basis of Presentation (Continued) - - - ' Account Grouns Account groups are used to establish .accounting control and accountability for the Town's general fixed assets and general long-term debt obligations. The two account groups are not "funds". They are concerned only with the measurement of financial , position. They are not involved with measurement of results of operations. The :- _` following are the two account groups: : - - General fixed assets account group - This account group is established to account far all fixed assets of the Town, other than those assets accounted for in the proprietary fund. Capital outlays in funds other than the proprietary fund are recorded as expenditures of those funds at the time of purchase and are subsequently recorded for control purposes in the general fixed assets account group. -- General long-term debt account group -.This account group is established to account for all the Town's long-term debt and governmental fund compensated absences that will be financed from general governmental resources. Long-term liabilities of the proprietary fund are accounted for in that fund. D. 1V�easurement FocusBasic of Accounting Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The Governmental Fund Types (General, Special revenue, Debt service, and Capital project funds) use a current financial resources measurement focus and are accounted for using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual; i.e., when they become both measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period, which for the Town is considered to be 60 days after year end. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which are recorded as fund liabilities when due, and accrued vacation which is recorded when payable from current available financial resources. _ ' � l� � � �� ' � �� � ' � � 11 � _ _. ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS ' June 30, 2001 , NOTE 1 - SUMMARY OF SIGNIFICANT 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 prior; to the incurrence of qualifying expenditures. In subsequent periods, ' when both revenue recognition criteria are met, or when the government has a legal claim to the resource, the liability for deferred revenue is removed from the combined balance ' sheet and revenue is recognized. Grant revenues are susce}�tible to accrual if they are earned as expenditures occur. Taxes collected (which include state shared sales t�es, Town sales tax, and county shared auto lieu taxes) and held by 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 using the accrual basis of accounting. Revenues are recorded when earned, including unbilled water services which are accrued. Expenses are recorded at the time liabilities are incurred. The Town's Proprietary 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. 12 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): u ' ' E. �udgetary Control _ _ ' The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation that is applicable to all local governments. This limitation, based on expenditures of the 1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in , population and inflation. Certain expenditures are held to be excludable. The limitation - is set by the State Economic Estimates Commission prior to April 1 of each year for the - following fiscal year. As allowed, the voters of the Town of Marana, on March 1 l, 1997, : approved an alternative expenditure limitation - home rule option to be applicable to the `_ . - Town. This alternative expenditure limitation is -free from-any ties to the state irriposed - - - limitations and is in effect for four consecutive years beginning with the fiscal year ended June 30, 1998: This limitation provides for the Town to allow the Mayor and Council to adopt an annual expenditure limitation each year with no expenditures held to be excludable. Therefore, the annual expenditure limitation equals the adopted budget. The Town establishes its fiscal year as the twelve-month period beginning July_ l. The __ . departments submit to the Town manager a budget of estimated expenditures for the - ensuing fiscal year. The Town manager and each department head meet to discuss mutually acceptable changes for the estimated expenditures for that department after whicli the Town manager subsequently submits a budget of estimated expenditures and revenues to the Town Council. _ _ Upon receipt of the budget estimates, the Town Council will hold a public meeting to obtain t�payer comments. Concurrently, a copy of the budget estimates is published in a local newspaper. The Town Council is prevented from legally enacting the budget through passage of a resolution until 15 days have passed after the date of the public meeting. Prior to July 1, the budget is legally enacted. The Town manager is authorized to transfer budgeted amounts between any departments or any funds; however, any revisions that reallocate budgeted amounts from the budget line items labeled "contingency" must be approved by the Town Council. Budgeted amounts are as originally adopted and all appropriations lapse at year end. All budgets are adopted on a basis consistent with generally accepted accounting principles except the enterprise funds, for which depreciation is not budgeted and the acquisition of capital assets are budgeted as expenditures. � _' ' � 13 I , ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): ' E. Budgetary Control (Continued) _. The Combined Statement of Revenues, Expenditures and Changes in Fund Balances - '_ Budget and Actual - All Governmental Fund Types presents a comparison of budgetary data to actual results � of operations #�or which annual operating budgets are legally adopted. _ _ _ _ . _- _ : _ ' - ' ?' ' � A budge�ary�bas�s to'G�A� basis reconciliation of the special revenue funds, of which the 2000 Community Development Block Grant and Fill T'he Gap - Courts Funds were not budgeted, follows: - ' � Budgetary Unbudgeted GAAP __ _ __ _ __ _ _ Basis - _ Fund Basis _ . __ Actual Actual A ua ' --_ _ _ ' ' ' � I' �J I' Total revenues and other financial sources $1,562,170 _ _ _ _ Total expenditures and other financial uses 1�547,753 Excess of revenues and other financial sources over expenditures and other financial uses F. Encumbrances $ 38,559 $1,600,729 36,341 1,584,094 $ 14,417 � 2,218 � 16�35 Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an extension of formal budgetary integration in the general fund and special revenue funds. I ' . 14 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued); G. Reservations and besignations of Fund Balances In addition to the reservations of fund balance for prepaid expenditures mentioned below, the Town has established other reservations of fund balance as follows: __ _ Reserved for debt service represents amounts required to be maintained under the provisions of various bond ordinances or amounts reserved for future debt service _ requirements. ��_' " Reserved for restricted assets represents assets maintained by Pima County far custodial purposes that are restricted for expenditures that will enhance the Town's ability to conduct police investigations. The designation for subsequent years' expenditures represents Capital Projects Fund Balances specifically identified for capital improvements. _ _ H. Use of Estimates The preparation of general purpose financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. This will effect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and eapenditures during the reporting period. Actual results could differ from these estimates. L �ond Issuance Costs For the enterprise/water fund, bond issuance costs are capitalized in the period in which the bonds are issued and are amortized on a straight line basis over 20 years. For all other funds, bond issuance costs are recognized as expenditures in the period in which the bonds are issued. J. Cash and Cash E�uivalents For the purpose of the statement of cash flows, the Town considers all highly liquid investments (including the funds' participation in the investment pool account, and appropriate restricted assets) to be cash equivalents. Individual fund investments with a maturity of 3 months or less when purchased are considered as cash equivalents. ' � ' �, , ' , ' ' , , , ' ' �� l� ' I _ _ _ . _ _ , �J ' NOTE 1 (Continued): TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ' _ K.Investments GASB Statement No. 31 provides that governmental entities may report all investments ' at fair value or they may elect to report certain money market investments and =- _. participating _ interest-earning _ investment contracts_ at amortized cost. The Town has._ elected to report all investments at fair value. Statutes authorize the Town to invest ' public monies in certificates of deposit, interest bearing savings accounts, and repurchase agreements provided eligible depositories meet interest rate, capital structure, and ' collateral requirements. - Other authorized in��est�nents include obligations of the U.S. Government and its agencies� of Arizona utility and municipal improvement districts, and the Arizona State Treasurer's Local Government Investment Pool ("LGIP"). The LGIP is ' overseen by the State of Arizona. The fair value of each share in the LGIP is $1. L. Restricted Assets , _ __ _ :-. .- .. _, _ The trust indentures executed for all of the bond series issued require all cash and investments for each bond series to be held on deposit by the trustee/fiscal agents. These , assets are restricted for payment of interest and trustee fees associated with the bond issues, retirement of principal balances, and purchasing fixed assets for the water fund, to ' finance various capital projects, and to construct a new facility for the Town's operations. ' ' In addition, the State of Arizona required that assets obtained at the completion of criminal proceedings by the Town's police department be given to Pima County for custodial purposes. These assets are restricted for expenditures that will enhance the Town's ability to conduct police investigations. M. Prepaid Exnenditures ' Prepaid expenditures are for payments made by the Town in the current year for liability insurance coverages extending into the subsequent year, and the reserve for prepaid items has been recognized to signify that a portion of fund balance is not available for other ' subsequent expenditures. , � ' ' N. Interfund Recei��ables and Pa3�ables 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. 16 - _ _ TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 ' NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES , (Continued): _ O. Inventories , The Town uses the purchase method of expending inventories. There were no significant inventories on hand at June 30, 2001 in the general fund� - ' . P. Fixed Assets . :. . . . ' ,, General Fixed Assets Account Grou� - Fixed assets used in Governmental Fund Type operations (general fixed assets), including ;` : _ :' those purchased with Federal grant monies, are accounted for in the General Fixed Assets -_ _ . Account Group, rather than in Governmental Funds. Public domain ("infrastructure") - . general fixed assets; such as roads, bridges, curbs and gutters, streets and sidewalks, ' drainage systems; and lighting systems, are not capitalized along with other general fixed assets for reporting purposes. Donated fixed assets are valued at estimated fair value on the date donated. All purchased fixed assets are valued at cost. The cost of nortnal , maintenance and repairs that do not add to the value of the asset or materially extend �' asset lives are not capitalized. No depreciation has been provided on any of the remaining assets. ' Pronrietarv Fund T.y�e . _ Properly, plant, and equipment owned by the enterprise funds are recorded at cost. ' Repairs and maintenance are recorded as expenses; renewals and betterments are capitalized. ' Depreciation is provided over the estimated useful lives of such assets using the straight- line method. These estimated useful lives are as follows: Estimated Useful Lives (Years� Pump stations, distribution systems, equipment and improvements 20 Organization costs 5-40 Machinery, equipment, and assets under capital lease 5 17 ' ' C� ' ' ' �_ � ,.. , I TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS ' June 30, 2001 . NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ' ed . (Contmu )• _ _. - __ _ __ Q. ��italized Lease Obligations _ The amount capitalized under capital leases is the lesser of the present value of the ' minimum lease payments or the fair value of the leased properties at the beginning of the respective lease terms. When a governmental fund acquires a fixed asset through a capital lease agreement, the acquisition is reflected as an expenditure and other financing ' source, and simultaneously the acquired asset and related liability are recorded in the -= General Fixed Assets Account Group and in the General Long-Term Debt Account - Group. Capitalized leases of the proprietary fund are accounted for entirely within the ' proprietary fund by capitalizing the asset acquired and recording the lease obligation as a liability. ' _ :_ _ R. Com�ensated Absences ' - •=-In the ger�eral -long-terrn debt group of `accounts, essentially the entire accumulated liability for compensated absences is reflected, since the liability at June 30, 2001, will most likely not be paid within the current accounting cycle. Rather, in fiscal 2002 the j' Town will probably pay that year's accrual without utilizing amounts accrued from prior _ years. _ __ _ _ _ _ . ' S. Fund Changec and Transactions Between Funds ' I' � I' I' I' Transactions that would be treated as revenue, expenditures, or expenses if they involved organizations external to the governmental unit are accounted for as revenue, expenditures, ar expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenditures or expenses initially made from that fund which are properly applicable to another fund are recorded as expenditures or expenses in the reimbursing fund and as reductions of the expenditure or expense in the fund that is reimbursed. Nonrecurring or non-routine transfers of equity between funds are treated as residual equity transfers and are reported as additions to or deductions from the fund balance of governmental funds. Residual equity transfers to the proprietary fund are treated as contributed capitaL . I I ' 18 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued): T. Comparative Data - _ _ . Comparative total data for the prior year is presented in the financial statements in order to provide an understanding of changes in the Town's financial position and operations. However, presentation of prior year totals by fund type have not been presented in the _ _ . statements, since their inclusion would m�ke the statements unduly complex and difficult to read. Tota1 columns on the combined financial statements are captioned "memorandum only" -_, _- to_ indicate _that they_ are .presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to . a consolidation. Interfund eliminations have not been made in the aggregation of this data. - - -U. Seized PronertX _ The Town Police have in their custody certain assets seized in criminal proceedings. Until formal procedures have been finalized, the ownership of this property is not determinable. In addition, legal requirements dictate that such assets not be reflected on the Town's financial records in an agency capacity until Town ownership has been determined. Consequently, no such assets are recorded on these financial statements. NOTE 2- DEPOSITS AND INVESTMENTS A. De�osits Cash on the combined balance sheet consist of amounts held in petty cash funds, change funds, and bank demand accounts. Cash held in uninsured and uncollateralized petty cash and change funds totaled $100 at June 30, 2001. At year end, the book value of the Town's banl: demand accounts were $20,672 and the bank balances were $618,836. The difference of $598,164 represents deposits in transit and outstanding checks at June 30, 2001. $100,000 of the total bank balance was covered by federal depository insurance and the remaining balance of $518,836 of the total bank balance was covered by collateral held by the Town's custodial bank in the Town's name. � � ' ' ' I � � ' C� � � ' , �� � , 'I 'I 19 ' I _ . ' ll ' _ _ . I TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 2- DEPOSITS AND INVESTMENTS (Continued) A. De i (Continued) , ._ - , _ -- _ _. . . At year end, the Town owned a nonnegotiable certificate of deposit vvith an original maturity of more than 3 months. This certificate of deposit has a bank balance of ' $508,502 at June 30, 2001, which is the same as its fair value. This certificate of deposit is covered by collateral held by the Town's custodial bank in the Town's name. ' . __ _ _ _ _ : _ _ Restricted assets: cash is uncollateralized by the trustee holding these balances. At year end, the book value: of these balances, which was the same as the bank balances, tofaled : , ` $24,940. _ B. Investments _ __ . '_ . . The Town's investments as of June 30, 2001 are: � ' _ _ _ State Treasurer's Local Government Investment Pool _ Money Market Funds Total Investments Fair Value - _ $27,966,202 2,313.116 $30,272�318 -- - __ Amounts invested in the State Treasurer's Local Government Investment Pool and Money ' Market Funds are recorded at fair value. Government Pool investments and money market funds are not categorized, in accordance with GASB No. 3, because they are not , evidenced by securities that exist in physical or book entry form. ' ' ' I' � A reconciliation of E�ibit 1 to Note 2 is as follows: E ' it Cash/Pooled Investments Investment Restricted assets: Cash/Pooled Investments Restricted assets: Cash/Investments Total No� 2: Cash Certificate of Deposit Restricted assets: Cash Investments Total $17,593,554 508,502 10,393,420 2�338.056 �30.833.532 . $ 20,772 508,�02 24,940 30,279�� 18 . 30,833,532 - ; : I I ' 20 _ ___ _ __ _ _ . . . _ _ . TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 ' NOTE 3- FIXED ASSETS, NET OF ACCUMULATED DEPRECIATION ' �_ ._ - The following is a summary of the changes in general fixed assets for fisca12001: : ' Balance Balance ' : July 1; 2000 Additions Deletions -: - June30, 2001 _ . __ Land $ 540,386 $1,759,757 $ (20,321) _ $ 2,279,822 ' - Buildings -1,160,114 1,563,458 -(114,425) 2,609,14Z_ ` : Assets under capital lease 221,522 - (221,522) - _ ' Machinery, equipment, and other assets 3,177,088 901,262 (139,009) 3,939,341 Marana Park 1,111,614 _ : - 1,111,614 ' Leasehold improvements 464,157 = - 464,157 __ Total : 6 674 1 ==$4�224 �(495,2771 �10�404,081-- _ A summary of enterprise fund property, plant, and equipment at June 30, 2001 is as ' _ follows: _ _ . __ _ Land $ 221,810 ' Water rights 433,696 Improvements, including wells and tanks 3,574,173 ' Machinery, equipment, and other assets 97,780 Organization costs 54,,737 Total 4 382 196 , , , Less accumulated depreciation and amortization ( 637�804� Fixed assets, net � 744 � 2 ' ' ' _ _ _ _ __ _ _ ' ' 21 ' .■ � _ . _ _ _,_ _ ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS ' June 30, 2001 ' NOTE 4 - INTERFUND TRANSACTIONS A. Amounts due to/from other funds at June 30�2001, are as follows: t . - - _ -_ _ , The amount due to the General Fund is due from: • Special Revenue: , 1999 Community Development Block Grant $ 51,412 , _ _ 2000 Community Development Block Grant . 1,806 ` GITEM _ 12,061 ��� ' - - _ 44161 � HIDTA ' ' ,��'�'�� _ __ MANTIS ' : : :29,210 : Auto Theft _. , ' . 11 579 Capital Projects: _ -- _ _- _ - _ 19 836 1997 General Obligation � t 2000 General Obligation 3,Q21.918 7 7�� �' Total $3,191,983 �� ' ' __ ' ' '_ � '.. ' 1 The amount due-to Special Revenue Funds is as follows: _ The amount due to HOME Program is due from the General Fund $ 74 864 The amount due to CJEF Court Fund is due from the General Fund 23,714 E�,,,� �°(� The amount due to Fill The Gap - Courts � is due from the General Fund 2 21 g "'�`'� ` Total $ l OQ,796 �;� ��,� � � The amount due to Capital Project Funds is as follows: The amount due to Other Capital Project Funds is due from the General Fund . from Special Revenue: Highway User Revenue Local Transportation Assistance - Total The amount due to Enterprise Funds is as follows: . The amount due to the Water Fund is due from the General Fund the Special Revenue Fund HOME program Total due to the Water Fund The amount due to the Airport Authority is due from the General Fund Total - 22 $ 672,821 `�. 89,309 �y��� / 9,656 S � r^ / 1' 7 78 $ 167,752 � 552 168,304 , �,51g 1 7 2 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 , ' NOTE 4 - INTERFUND TRANSACTIONS (Continued) ' B. Residual 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 � 979,474 _ _ , , _ __ ' _ - NOTE 5 "- LONG = TERM DEBT - ` _ _ - , i _ _ , . ' .- _ During 1998, the Town s enterprise/water fund was advanced funds under a zero-mterest �. �loan in the amount of $88,000 for the purchase of fixed assets for the water system, collateralized by two storage tanks in the water system and requiring monthly payments ' of $733 over a ten year term. _ _ - _ - _ : . _ . ' During 1998, a capital improvement project in the capital project funds was financed by a taxpayer. Under this unsecured agreement, the Town agreed to repay the taxpayer 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 tax collected by the Town from local businesses within the general vicinity of the improvements created by this project. Based on payments made during fiscal 2001, it is estimated annual repayments will be , approximately $155,000 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, 2001: Fiscal Year Water General Long- Endin� June 30, und Term Debt 2002 ` 2003 2004 2005 2006 Thereafter Total Less amount representing interest _ _ _ PrincipaT _ _ _ _ _ . $ 8,800 $155,000 8,800 29,771 _ . 8,800 - 8,800 - 8,800 - 17,600 - 61,600 184,771 �=) �=) 1 � $���ZZ� ' ' ' �� � 1 ' 23 1 I ... _ _ _ . _ � TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS , June 30, 2001 NOTE 5- LONG - TERM DEBT (Continued) ' _ � The following is a suminary of changes in general long-term debt activity for fisca12001: Balances Balances i at July 1� June 30, _ _ _ _ _ _ _: 2000 " i i Reductions 2001 _ _ 1 _ _ Revenue Bonds (A) $17,�15,000 $ - $(1,185,000) $16,330,000 Compensated absences (B) 238,139 46,983 - 285,122 : Capitalleases _ . , 50,386 - _ (50,386) __ ' _ . Contract payable 339�673 - (154.902) 184,771 Total �18.143�198 �46,983 �(1.390�288) �16,799 ' : _ _ 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 ' The 2000 Series Revenue Bonds are not callable. ' ' � I' I' I' Redemption Price (As a Percent of Princi�all 101.0% 100.5 100.0 Annual debt service requirements to maturity for these revenue bonds are as follows: Fiscal Year 1997 Series 2000 Series Ending June 30, Bonds BQds Total 2002 2003 2004 200� 2006 Thereafter Total Less amount representing interest Principal $ 785,623 $ 1,265,700 $ 2,051,323 791,454 1,249,100 2,040,554 790,873 1,255,550 2,046,423 799,105 1,236,313 2,035,418 785,380 1,240,800 2,026,180 6,5609�6 � 560,081 12,121.037 10,513,391 11,807,544 22,320,935 � 3�433,391) ( 2 ( 5.990,935) � 7,080,000 � 9,250�000 16,330,000 24 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 5- LONG - TERM DEBT (Continued) _ _ B. Com�ensated Absences � � � _ _ : ._ � This consists of the long-term portion of accrued vacation and compensatory time, with an increase of $46,983 for fisca12001: ' - - _ _ _ NOTE 6- ADVANCED REFUNDING/DEFEASANCE OF DEBT : , : Part of the proceeds ($592,753) from the 1997 Series Revenue Bonds were used to refund <- _ . ' botlr the 1990 - and 1992 Series Revenue Bonds. The two debt issues refunded had . - remaining outstanding balances totaling $545,000. The purpose of the refunding was to - take advantage of Iower interest rates, as well as to restructure future debt service , payments. This refunding decreased the Town's total debt requirements by $178,001 and resulted in an estimated economic gain (the difference between the present value of the debt service payments on the old and new debt) of $72,934. - ___,_ ___, _, ---- ---- -- -- The proceeds from this advanced refunding were deposited in trust with an escrow ` agency and invested in U.S. Governmental 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 financial statements. At June 30, 2001 the amount of outstanding principal relative to the 1992 Series Revenue Bonds was $280,000 with the 1990 Series Revenue Bonds fully redeemed during fiscal 1999. ' ' , _' � ' ' 25 I I ' ' TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 NOTE 7- EMPLOYEE RETIREMENT SYSTEMS A. Arizona Public Safety Retirement System , _ _ : All of the Town's full-time police officers are covered by the Marana Iv'Iarshal's Arizona ' Public Safety Personnel Retirement System, which is an agent /multiple-employer administered by the fund manager of the Arizona Public Safety Personnel Retirement System, defined benefit public employee retirement system (PERS). Authority to ' establish and amend the. benefit provisions of this pension plan is established by Arizona _ State statute. The State of Arizona Public Safety Personnel Retirement System issues a publicly -available� financial -�eport that- includes financiai statements and required '` �_ supplemental informa�ion for the Marana Marshal's plan. This report may be obtained by writing to the Arizona Public Safety Personnel Retirement System 1020 E. Missouri Phoenix, Arizona 85014. . _ _, _. _ ' The ension lan provides pension benefits, deferred allowances, death and disability P P benefits and limited health insurance benefits. A member is eligible if he is employed in ' a eovered position prior to atfaining. age 50 years, for at least 20 hours a week for more than 6 months a year. A member may retire after reaching the age of 62 and completion of 15 years service, or completion of 20 years service with the Town. Benefits vest after � 10 years of credited service. Police officers who retire with 25 or more years of credited service are entitled to monthly pension payments for the remainder of their lives equal to , �0% of average monthly compensation for the first 20 years of credited service with the Town, plus 2 1/2% of average monthly compensation for each year of credited service above 20 years with the Town. Police officers who retire with 20 years of credited ' service with the Town, plus 2% of average monthly compensation for each year of credited service between 20 and 25 years with the Town. Police officers who retire with less than 20 years of credited service with the Town are entitled to monthly pension ' payments for the remainder of their lives equal to the average monthly compensation for the entire service period reduced at a rate of 4% a year for each service year below 20 years of service. The maximum monthly pension payment cannot exceed 80% of the ' average monthly compensation. ' ' '_ _. � Pension provisions include deferred allowances whereby a police officer may terminate his employment with the Town after accumulating 10 or more years credited service. Pension benefits are then equal to twice the amount of pension benefits based on the police officer's accumulated contributions. If the police officer does not withdraw his accumulated contributions, the police officer is entitled to these pension benefits upon reaching the age of 62. ' 26 _ _. : _ _ _ - _ TOWN OF MARANA, ARIZONA , NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 ' NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) _ _ _ _ _ _ . A. Arizona Public Safety Retirement System (Continued) Pension provisions include disability and death benefits. Disabled officers are entitled to _ monthly payments for life of 50% of their average monthly compensation or normal pension amount, whichever is greater, if their disability is service connected, regardless of years of credited service. Average monthly compensation (AMC) is one-thirty-sixth of total compensation paid a member during the 3 years, out of the last 10 years of credited : service, in which the amount paid was highest. If the police officer's disability was not service connected, the <disabled officer is entitled to monthly payments for life of 25% _�-. �_; of AMC; if.the_credited service is less than 7 years, 50% of AMC, if the credited service is 7 through 13 years, or 75% of AMC, if the credited service is 14 through 19 years. If the police officer is only temporarily disabled, he is entitled to monthly payments equal to one-twelfth of 50% of compensation paid during the year preceding the date the disability was incurred. The payments terminate after 12 months or prior recovery. Surviving spouses are entitled to 75% of the monthly payments, or 100% if duty related, the __ deceased active police officer would have been paid far disability or, in the case of a retired police officer, 75% of the retired officer's monthly pension payments. To qualify as a surviving spouse, the spouse must have been married to the deceased for at least 2 years. The spouse's benefits terminate upon her death. Each dependent child of a deceased police officer is entitled to one-ninth of the monthly payments the deceased active police officer would have been paid for disability or, in the case of a retired police officer, one-ninth of the retired officer's monthly pension payments. When the dependent child reaches the age of 18 or 23, if the dependent is a full-time student, the monthly payments v�Till terminate. Pension provisions include health insurance benefits, whereby the retired police officer or his surviving spouse can elect to be covered by a health insurance plan provided by the Town or State of Arizona. The retired police officer or his surviving spouse pay for this coverage. However, they cannot be charged more than $150 per month plus an amount up to $110 per month for dependent coverage, if any. Available as a pilot program from July l, 2001 through June 30, 2006, officers with at least 20 years of credited service may elect to enter the Deferred Retirement Option Plan (DROP), for up to 60 months. During the DROP period, the frozen accrued pension is credited to the officer's DROP account. The account is paid at time of actual retirement. The Town's current year payroll for eligible police officers amounted to approximately _ . __ _ __- $2,298,000. _ _ __ _ _ __ _ __ _ ' � � ' _ _, �� 27 , � _ ' _ : - - _ _ _ _ _ _ - TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS � _ June 30, 2001 ' NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) A. Arizona Public Safety Retirement �ystem (Continued) - -- _ . �-- - - __,_ - - --- _ ----- _ _-- - __ _ Police officers of the Town are required to pay 7.65% of their gross earnings to the pension plan. The Town makes periodic contributions to the pension plan at actuarially , determined rates that, expressed as percentages of annual covered payroll, are designed to _accumulate sufficient- assets to pay benefits when due. The normal cost and actuarial accrued liability are determined using an entry age actuarial funding method. Unfunded ' actuarial accrued liabilities are being amortized as a level percent of payroll over an open : period of 20 years. starting July 1 2001: During 2001, the Town was required to _._. contribute 9.22% of its police officers' covered payroll to the plan. � . _ The contribution requirements of plan meinbers 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. ' , ' �1 Total contributions made during fiscal 2000 were $387,737, of which $211,911 was made by the Town and $175,826 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, 2001, to determine the standardized measure of the entry age actuarial accrued liability and these assumptions are summarized below: . ' . ' . ' �_ _ ' The present value of future pension payments is computed by using a discount rate of 9%. The discount rate is equal to the estimated long-term rate of return on current and future investments of the pension plan. Future pension payments reflect an assumption of 5.�% (compounded annually) salary increases as a result of inflation. Future pension payments reflect an assumption of additional projected salary increases ranging from 1.0% to 4.0% per year, depending on age, attributable to seniority/merit. The actuarial value of the assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments. � ' 28 _ . ,_ _ TOWN OF MARANA, ARIZONA ' NOTES TO COMBINED FINANCIAL STATEMENTS . June 30, 2001 . _ ' _ NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) ' A. Arizona Public Safety Retirement System (Continued) -_ ' The standardized measure of the unfunded actuarial accrued liability as of June 30, 2001 _ . is as follows: _ _ - _ . _' Active members _ - $ 2,373;42L _ � :' _ -: Retired members and survivors 736,055 _ - Former members with vested benefits ,._ ` 70�162 ` Total actuarial accrued liabilit 3,179,638 � Y Actuarial value of assets 5,140.522 __ _ . - _ - - ' Unfunded actuarial accrued liability $(1.960.884)- - . _ ' R�e uired Su��lemental Information 1 : SCHEDULE OF EMPLOYER CONTRIBUTIONS _ _ Fiscal Annual ' Year Ended Required Percent _ June 30�: Contribution Contributed _ ' 1996 $ 58,775 100.0% 1997 62,948 100.0% , 1998 66,970 100.0% 1999 100,783 100.0% 2000 106,6�� 100.0% , 2001 211,911 100.0% . ' _ , _ _ . _ _ _ _ _ _ _ _ . __ ' ' 29 ' � _ __ . __ _ _. _ __ _ I TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS , June 30, 2001 ' _ __ NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) I A. A�-i�ona Public Safe� Retirement �ystem (Continued) _ _ -- - - - -- _- _ _ _ _ _ __ _ - _ _ _ _ _ _ �2ec�uired unnlemental Information (Continued) ' , _ _ . . _ . � SCHEDULE OF FUNDING PROGRESS . . - _ _ _ _ _ ' - _; , _ _. ,_ __ . -- : _ _. __ (6) _ . _ ' -- - - -- — _ - - — Unfunded . _ _ �2� AAL as a (1) Entry Age (3) (4) (5) Percentage ' _ . Valuation Actuarial Actuarial Percent Unfunded Annual of Covered Date Value of Accrued Funded AAL Covered Payroll June 30 Assets Liabilit�(AAL) 1/ 2 2- 1 roll 4 5 - __ - _ _ _ _ _- _ -- - — 1996 $ 1,462,763 $1,260,459 116.1% $ (202,�04) $ 965,119 -% 1997 1,956,059 1,862,109 lOSA ( 93,950) 1,275,174 -% 1998 2,527,484 2,188,698 115.5 (338,786) 1,398,167 -% , 1999 3,374,868 3,145,797 107.3 (229,071) 1,737,509 -% 2000 4,265,537 4,249,197 100.4 (16,340) 2,014,412 -% 2001 -- 5,140,522 3,179,638 16I.7 (1,960,884) 2,225,156 -% , �� ' Fiscal Year Ended June 30, Trend Information Annual Pension Cost �APCI Percent Net Pension Contributed bli t' n ' 1996 - $ 58,775 100.0% $0 1997 62,948 100.0 0 1998 _ 66,970 100.0 0 1999 100,783 100.0 0 ' 2000 106,665 100.0 0 2001 211,911 100.0 0 ' No changes in actuarial assumptions or benefit provisions that would significantly affect the valuation of the unfunded actuarial accrued liabilities occurred during fisca12001. - _ : M h 1' Ar' a PERS held no �J � During fisca12001 and as of June 30, 2001, the Marana ars a s izon securities issued by the Town or other related parties. 30 TOWN OF MARAl�'A, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS _ June 30, 2001 - NOTE 7- EMPLOYEE RETIREMENT SYSTEMS (Continued) _ _ _ B. TQwn of Marana Retirement Plan .-- -- --_ ___- -- - Effective July 1, 1995, the Town established a Money Purchase Plan and Trust known as the Town of Marana Retirement Plan (Plan) in the form of the International City IVlanagement 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 pravides pension benefits for all full-time � '_ -- employees ` and permanent part-time emplo��ees, 'except .' for commissioned police personnel who are covered under the Arizona Public Safety Personnel Retirement ---� -�ystem: _ In a defined contribution plan, benefits depend solely on amounts contributed to _ the plan plus .irivestment earnings. Employees are eligible to participate from the date of employment. The Plan requires that both the employee and the Town contribute an amount equal to 4% of the employee's biweekly earnings, which includes overtime and bonuses. The Town's contributions for each employee (and interest allocated to the employee's account) are fully vested after five �-ears of continuous service. _ __ __ . Town contributions for, and interest forfeited by, employees who leave employment befare five years of service are used to reduce the Town's current-period contribution requirement. The Town's total payroll in fiscal year 2001 was approximately $6,166,000. The Town's contributions were calculated using the earnin�s amount of approximately $3,818,000. For fisca12001, the covered employees made the required 4% contribution, amounting to $152,737, with the Town making a smaller contribution due to the application of forfeitures, amounting to $132,470 for a total of $285,207. C. Postemployment Benefits The Town offers no postemployment benefits to employees other than the previously discussed retirement plans. NOTE 8 - RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters. The Town's insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the Town is a participating member. The limit for basis coverage is for $2,000,000 per occurrence on a claims made purpose. Excess coveraQe is for an additional $3,000,000 per occurrence on a follow form, claims made basis.� � ' , ' ' � ' i ' I � ' �� ' L� ' � � _ 31 ' _ ' ' ' _ __ : _ _ I TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 - NOTE 8 - RISK MANAGEMENT (Continued) The Arizona Municipal Risk Retention Pool is structured such that member premiums are ' based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected financial obligations. The pool has the authority to ass�ess its members . _ additional premiums should reserves and annual premiums be insufficient to meet the ' pool's obligations. For the fiscal years ended June 30, 2001, 2000, and 1999 there were no settlements through the pool for the Town that exceeded insurance coverage. ' Workers' compensation insurance is placed through the Arizona Municipal Workers' _. Compensation Fund. - -_ : ' _ . : . _ . : : NOTE 9- EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS ' For fiscal ear 2001 ex enditures exceeded authorized appropriations in the following Y � P individual special revenue funds: 1 _ -_ - : - - - -- : ' , , ' ' I' I' �J I' 1999 Community Development Block Grant COPS Grant GITEM _ MANTIS LTAF $ 99,442 50,846 6,347 3,394 38,517 The excess expenditures for all of these funds were covered by grant revenues. At June 30, 2001, there were no individual funds with a deficit fund balance. NOTE 10 - COMMITMENTS AND CONTINGENCIES At June 30, 2001, the Town had entered into contracts ��ith general contractors for three capital improvement projects in Other Capital Projects Funds, a Capital Project Fund. These projects involved the commitment of $�,408,429 with $2,85�,553 recognized as expenditures during June 30, 2001, leaving a remaining commitment of $2,552,876 at June 30, 2001. The Town is continuously liable with respect to other claims incidental to the ordinary course of its operations. At June 30, 2001, it is the opinion of Town management, based on the ad��ice of the Town Attorney and outside counsel, that any such claims would not have a material effect on the Town's financial position. I ' . 32 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 ' � NOTE 10 - COMMITMENTS AND CONTINGENCIES (Continued) ' The Town leases office space for its development and planning, police, and magistrate _ court_ departments_ under noncancelable; long-term operating leases: with expirations of ` ' September 2001 through September 2004. Two of these leases requires .the Town to pay its share of real estate taxes, common area charges, and management fees. These same leases require annual adjustments for increases in the Town's share of real estate taxes, , . _. common area _ charges, and management fees:= However, - the - increased "related to controllable common area and management fees by the landlord cannot increase more than 4.5% over the prior year. One lease contains two five-year renewal options ' and a second lease contains one two-year renewal, .option at a monthly base rent of either the_then 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 a# a monthly base rent of $3,715, plus an annual adjustment of 3%. . . _ _ _ ,_ These leases provide for payments of minimum annual rentals as follows, excludin real ' g estate taxes, common area charges, management fees, and sales taxes: _ — - . ' Years Ending June 30, 2002 . _ _ _ _ . -_ 2003 _ _ _ 2004 2005 $ 90 667 ' � 70,405 . 46,511 ' 7,171 Total 2 4 4 I Minimum annual rentals above includes the renewal option exercised subsequent to year end but excludes annual rental under the remaining renewal options as of June 30, 2001. Rent expense under the above leases for fisca12001 aggregated $252,121. NOTE 11- WATER CONTRACTS The Town has a contract with Cortaro Water Users to produce substantially all of its water. Under the contract, the Town pays Cortaro a rate based on water production/usage. The rates charged are on a tiered-rate structure which provide a discount for larger volumes of water produced and are subject to annual adjustments. Water production expense under this contract for the year ended June 30, 2001 was $74,806 and is reflected in the Water Fund, an Enterprise Fund. , u ' ' 'I . 33 , I .. _ . _ _ . _ _ _.- _ _ _ . _ _ _. . I TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS _ _ _ _ - June 30, 2001 _ _ _ ' ' NOTE 11- WATER CONTRACTS (Continued) _� The Town has a contract with the Central Arizona Project (CAP) to pay CAP the Town's '_ _ share of costs associated with the CAP making available recharge water to the Town. Under this agreement, the Town is charged its share of costs regardless of whether the ,` Town has accessed recharge water from CAP. The recharge expense under this contract for the year ended June 3 0, 2001 was $106,110 and is reflected in the VJater Fund, an _- - — Enterprise Fund. _ . . _ , . _ NOTE 12 - SEGIVIENT bISCLOSURE - . . `_ - ' The Towri maintains two Enterprise Funds. The Water Fund provides water service to the Town. The Airport Authority operates the Marana Airport. '_ _ , _ . _ _ _ : . Key financial information as of and for the year ended June 30, 2001 for these funds are as follows: 1 - . _: - __ . .. . - -.- = - - _ Water Airport . . Fund th rit Total , Operating revenues $ 678,178 $ 78,156 $ 756,328 Operating expenses e�cluding depreciation 767,948 155,974 923,922 ' Depreciation 19$,658 6,486 205,144 , Net loss �(288�,434) 4 04) $ (372,738) . Residual equity transfers in Fixed asset additions Net working capital Total assets Total equity I' I' I' I ' � 979,474 $ - -- � 979.474 � 713,266 � - -- � 71 �,266 � 88,631 764 � 98�395 $3,745•547 �253,789 �,22,336 $3,552,056 2 7 1 �3 8�7 NOTE 13 - LEASING ARRANGEMENTS The Airport Authority, an Enterprise Fund, leases part of the airport to local Marana businesses under noncancelable operating leases requiring fixed and contingent rentals based on a��iation fuel dispensed on the premises. The following is a schedule of future minimum rentals receivable under these leases at June 30, 2001, not including renewal . _ . options: I ' 34 TOWN OF MARANA, ARIZONA NOTES TO COMBINED FINANCIAL STATEMENTS June 30, 2001 _ _ _ ' ' NOTE 13 - LEASING ARRANGEMENTS (Continued) t Years Ending _ __ _ June 30._ _ ' __ _- -_:_ 2002 -- - _ _ - $ - -67,520 2003 69,041 2004 _ . _. _ _ , , 85,770 ' . 2005 _ _ _ 87,291 _ 2006 ; . _ 90,820 _ . =Thereafter ` 1:792:158 ' ` Total _ _ �2,192 600 - _ NOTE 14 - SUBSEQUENT EVENTS , Subsequent to June 30, 2001, the Town entered a contract with a general contractor for a ' capital improvement project known as Cortaro Road Improvements in Other Capital Projects Funds, a Capital Project Fund. This contract involved the commitment of . .. - $6,600,000 by..the Town . - , Subsequent to June 30, 2001, the Town signed a 99 year lease with the State of Arizona for the lease of 2,400 acres of land. This requires annual rental payments of $432,000 per ' year for the first five years and a 10% increase in the annual rent payments for each � succeeding five year period for the remainder of the lease term. A developer also signed an agreement with the Town to reimburse the Town the annual rental payment for the ' first twenty years of this lease. _ : NOTE 15 - FUTURE CHANGE IN ACCOUNTING PRINCIPLES ' In June 1999, the Governmental Accounting Standards Board issued Statement No. 34, "Basic Financial Statements - and Management's discussion and Analysis - far State and Local Governments." This statement establishes new financial reporting requirements for all state and local governments. It creates new information and restructures much of the information that is cunently presented in the financial statements. The Town of Marana will adopt this new standard beginning with its 2003 fiscal year, the year in which adoption is first required for the Town of Marana. Adjustments to governmental, proprietary, and fiduciary funds resulting from the change to compl5� with this Statement will be treated as adjustments of prior periods, and financial statements presented for the periods affected will be restated unless restatement is not practical. The impact of adopting this statement has not yet been determined. These notes are an integral part of the accompanying combined financial statements. 35 ' , , i� , ' C OMBINING � IND IVID UAL FUND AND AC C OUNT GROUP STATEMENTS STATEMENTS A GENERAL FUND The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in other funds. In Marana, these services include general government, development and planning services, town attorney, police, magistrate court, public works, and parks and recreation. � , , , TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS GENERAL FUND — EXHIBIT A-1 June 30, 2001 and 2000 2001 ASSETS � Cash/Pooled Investments Investment Receivables: Taxes , Other Prepaid expenditures Due from other funds , TOTALASSETS $ 17,593,554 508,502 1,021 ,245 148,881 70, 000 3,191,983 $ 22,534,165 , LIABILITIES AND FUND EQUITY LIABILITIES ' Accounts payable and accrued liabilities $ 1,268,096 Due to other funds 950,887 Deferred revenue 169,378 � Totalliabilities 2,388,361 , FUND EDUITY Reserved for prepaid expenditures 70,000 Unreserved fund balances 20,075,804 ' Total fund equity 20,145,804 , TOTAL LIABILITIES AND FUND EGlUITY $ 22,534,165 r��• $ 18,868,554 1,277,989 75, 936 47,000 170, 919 $ 20,440,398 $ 1,425,222 445,969 97,059 1,968,250 47, 000 18,425,148 18, 472 ,148 $ 20,440,398 � TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 Year Ended June 30, 2001 Variance - Favorable Actual Budget (Unfavorable) REVENUES Taxes Town sales tax Town sales tax audits Total taxes Other agencies Sales taxes - state State revenue sharing Auto lieu taxes - state Total other agencies Licenses, fees and permits Building permits Development fees Cable television franchise fees Business licenses Other Total licenses, fees and permits Fines, forfeitures and penalties; Town courtfines Interest Misceilaneous Other Contingent Revenue Lease income Total miscellaneous Total revenues $12,428,895 $14,800,000 $ (2,371,105)• 184,956 - 184,956 12,613,851 14,800,000 (2,186,149) 602,511 556,000 46,511 727,135 728,425 (1,290) 267,079 200,000 67,079 1,596,725 1,484,425 112,300 1,922,904 2,300,000 (377,096) 358,009 - 358,009 55,431 65,000 (9,569) 25,379 18,000 7,379 67,350 60,000 7,350 2,429,073 2,443,000 (13,927) 359,444 350,000 9,444 1,306,134 770,000 536,134 280,819 65,000 215,819 - 2,oso,000 (2,oso,000� - 300,000 (300,000) 280,819 2,415,000 (2,134,181) 18,586,046 22,262,425 (3,676,379) EXPENDITURES General government Other general government Contractual services Com modities Special programs Other Debt service Total other general government 332,725 785,000 452,275 388 - (388) 71,930 61,000 (10,930) 613,976 727,817 113,841 207,671 160,570 (47,101) 1,226,690 1,734,387 507,697 37 : __ . _ : ' TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED ' FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 2001 ' EXPENDITURES (continued) , General govemment (continued) Mayor and council ' Contractual services Commodities Other ' Total mayor and council Human resources Variance - Favorable Actual Budget (Unfavorable) $ 476 $ 800 $ 324 2,221 7,000 4,779 63,047 20,900 (42,147) 65,744 28,700 (37,044) ' Personal services 115,712 117,730 _ 2,018 Contractual services 24,807 9,000 (15,807) Commodities 3,773 - (3,773) Special programs - 128,000 t 28,000 ' Other 203,777 41,001 (162,776) Total human resources 348,069 295,731 (52,338) , : _ _ _ _ _ _._ _ Accounting and finance Personal services 205,543 206,060 517 ' Contractual services 35,971 40,500 4,529 Commodities 6,074 5,920 (154) Other 11,358 15,185 3,827 , Total accounting and finance 258,946 267,665 8,719 Town Clerk Personal services 128,922 142,530 13,608 ' Contractual services 54,543 33,645 (20,898) Commodities 9,957 12,000 2,043 Other 37,905 32,393 (5,512) ' Total Town Clerk 231,327 220,568 (10,759) Town Manager ' Personal services 322,594 349,410 26,816 Contractual services 168,71 1 170,650 1,939 Commodities 8,909 8,500 (409) Other 49,069 11,400 (37,669) ' Contingency = 103,947 103,947 Capital outlay 2,500 2,500 1 Total Town Manager 549,283 646,407 97,124 Total general government 2,680,059 3,193,458 513,399 ' '' ' 38 ' TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 2001 Variance - Favorable Actual Budget (Unfavorable) EXPENDITURES (continued) Development and planning services � Building services Personal services $ 541,936 $ 597,940 $ 56,004 Contractual services_ 5,869 14,400 8,531 Commodities _ 10,015 12,000 1,985 Other 22,007 19,656 (2,351) Total building services 579,827 643,996 64,169 Planning and zoning Personal services 251,981 248,760 (3,221) Contractual services 46,822 53,000 6,178 Commodities 7,571 13,000 5,429 Oth er 20, 461 21, 352 891 Total planning and zoning 326,835 336,112 9,277 Development services administration Personal services 406,440 433,420 26,980 Contractual services 165,242 193,400 28,158 Commodities 249,780 150,280 (99,500) Special programs 39,524 - (39,524) Other 16,926 48,642 31,716 Capital outiay 858,252 960,500 102,248 Total development services administration 1,736,164 1,786,242 50,078 Total development and planning services 2,642,826 2,766,350 123,524 Town attorney Tax Water Prosecution Annexation General services Condemnations and acquisitions Total town attorney Police Personal services Contractual services Commodities Other Total police 81,465 6,000 (75,465) 15,997 46,000 30,003 112,543 109,200 (3,343) 3,509 8,000 4,491 114,162 160,800 46,638 34,430 20,000 (14,430) 362,106 350,000 (12,106) 2,949,580 2,939,094 (10,486) 160,750 85,300 (75,450) 34,554 104,500 69,946 57,278 57,071 (207) 3,202,162 3,185,965 (16,197) 39 ' L_� ' ' , ' , ' � 1 ' ' 1 ' ' , ' ' ' ,_ _ . _ _ , ' TOWN OF MARANA, ARIZONA , ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNRESERVED FUND BALANCE - BUDGET AND ACTUAL GENERAL FUND - EXHIBIT A-2 (Continued) Year Ended June 30, 2001 Variance - Favorable Actual Budget (Unfavorable) EXPENDITURES (continued) , Magistrate court _ ____ _ _ _ . Personal services $ 224,213 $ 245,445 $ 21,232 • Contractual services 47,279 68,950 21,671 , Commodities 19,980 15,000 (4,980) Other 12,610 15,203 2,593 _ _ _ . _ _ _ _. Total magistrate court 304,082 344,598 40,516 , Public works Personal services 1,062,094 1,136,744 74,650 ' Contractual services - 1,597,657 1,136,194 = (461,463) Commodities 128,712 103,200 (25,512) Other 59,358 60,945 1,587 Capital outlay 23,660 52,100 28,440 ' Total public works 2,871,481 2,489,183 (382,298) ' Parks and recreation Personal services 607,072 601,425 (5,647) Contractual services 180,273 180,380 107 Commodities 121,720 124,800 3,080 ' Other 73,658 33,731 (39,927) Capital outlay 42,000 42,000 Total parks and recreation 982,723 982,336 (387) ' Total expenditures 13,045,439 13,311 ,890 266,451 ' OTHER FINANCIAL USES Transfers to other funds 3,866,951 8,950,535 5,083,584 Total expenditures and other ' financial uses 16,912,390 22,262,425 5,350,035 Excess of revenues over expend- itures and other financial uses 1,673,656 $ - $ 1,673,656 ' OTHER CHANGES IN FUND EQUITY increase in reservefor prepaid expenditures (23,000) ' UNRESERVED FUND BALANCE, BEGINNING 18,425,148 ' UNRESERVED FUND BALANCE, ENDING $ 20,075,804 I , C 40 I ' I - _ � ' ' ' _ - _ _ _ ' _ ' - ___ : _ _ _ ' . _ . ' I . ' _ . :_ - _ _ ' ' ' , THIS PAGE INTENTIONALLY LEFT BLANK. ' , I i ' I � , ' ' 41 ' ' ' ' ' , ' ' ' ' ' ' ' , ' ' 1 ', ' ' STATEMENTS B SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenues derived from specific taYes or other earmarked revenue sources. They are usually required by statute or Federal grant regulation to record particular operating functions of the Town. Federal Grant Funds - includes the Community. Development Block Grants, the HOME Program, the COPS Grant, GITEM, HIDTA, MANTIS, and LLEBG 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 Fill The Gap - Courts Funds. These funds are non-federal funds required by Arizona Statutes to be used for police, public works, or magistrate court expenditures. 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N y « — � c� 7 Z E � W ro O � � Z O � �'� � V U c�.° :.' 'o v w v a o o c Q o c Q d m 'c � a o a�i � � 2 Z tA a� >. ��� c c �a c I °' a > Z� >� � a� � a Z a v' Y g g =m3��Y�2�2�w� � �y �� ��d y H Q Q x x LL _ � a� a� �c °' c c ° E w Z d m.a n o� Q n Q �� � m m � L � o Z d d o o ro Q � m � L � 00 tC j�S�n�.rOCL���U ��v� F =� � w a �C7dU � _� � x o axi Z Z oC O W� O W � u�. ' TOWN OF MARANA, ARIZONA 1999 COMMUNITY DEVELOPMENT BLOCK GRANT — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN ' FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-3 Year Ended June 30, 2001 ' Variance — Favorabie ' Actual Budget (Unfavorable) REVENUES � ' Other agencies Block grants — Pima County $ 178,862 $ 79,420 $ 99,442 ' Total revenues 178,862 79,420 99,442 EXPENDITURES . ' : Current operations _ General government 17,052 15,000 (2,052) j' Community development 161,810 64,420 (97,390) Total expenditures 178,862 79,420 (99,442) ' . . _ _ _ _ _ _ Excess of revenues over expenditures — — — , FUND BALANCE, BEGINNING — — — FUND BALANCE, ENDING $ — $ — $ — ' _ , ' ' ' ' 1 ' 46 ' TOWN OF MARANA, ARIZONA HOME PROGRAM — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-4 Year Ended June 30, 2001 Variance — Favorable Actual Budget (Unfavorable) REVENUES • Other agencies Block grants — Pima County $ 29,154 $ 300,000 $ (270,846) Misceilaneous Sales proceeds 100,286 — 100,286 Total revenues 129,440 300,000 (170,560) OTHER FINANCIAL SOURCES Transfers from other funds 102,425 — 102,425 Total revenues and other financial sources 231,865 300,000 (68,135) - -- -- EXPENDITURES Current operations Community development 220,166 300,000 79,834 Total expenditures 220,166 300,000 79,834 Excess of revenues over expenditures 11,699 — 11,699 FUND BALANCE, BEGINNING 62,613 — 62,613 FUND BALANCE, ENDING $ 74,312 $ — $ 74,312 47 _ _ _. . _ ' TOWN OF MARANA, ARIZONA COPS GRANT — SPECIAL REVENUE FUND ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-5 Year Ended June 30, 2001 ' Variance — Favorable ' _ - _ Actual . _ Budget (Unfavorable) REVENUES ' ' Other agencies Public safety - U.S. Dept of Justice $ 170,846 $ 120,000 $ 50,846 Total revenues 170,846 ' 120,000 50,846 ' _ _ _ - : EXPENDITURES Current operations ' - Police 170,846 120,000 (50,846) Total expenditures 170,846 120,000 (50,846) ' Excess of revenues ' over expenditures _ _ FUND BALANCE, BEGINNING — — — , FUND BALANCE, ENDING $ — $ — $ — _ ' ' t ' ' , ' ' 48 ' TOWN OF MARANA, ARIZONA 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, 2001 Variance — Favorable Actual Budget (Unfavorable) REVENUES � Other agencies - - Public justice — Arizona $ — $ 15,000 $ . (15,000) Total revenues — 15,000 (15,000) EXPENDITURES Current operations Magistrate court — 15,000 15,000 Total expenditures — 15,000 15,000 Excess of expenditures over revenues — — 0 FUND BALAN�E, BEGINNING 23,714 -- 23,714 FUND BALANCE, ENDING $ 23,714 $ — $ 23,714 49 1 ' ' ' ' ' ' ' ' ' ' ' � , ' ' ' ' ' ■. _ _ __ , TOWN OF MARANA, ARIZONA RICO — SPECIAL REVENUE FUND ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B 7 Year Ended June 30, 2001 ' Variance — Favorable ' Actual Budget (Unfavorable) REVENUES � ' Other agencies RICO funds — Pima County $ 20,856 $ 25,000 $ (4,144) _ _ - Interest 1,343 — 1,343 !_ Total revenues . _ . 22,199 25,000 (2,801) _- _ EXPENDITURES - _ _ _ . � '- : _ Current operations Police 17,796 25,000 7,204 ' . _ . .. Total expenditures 17,796 25,000 7,204 � Excess of expenditures over revenues 4,403 — 4,403 FUND BALANCE, BEGINNING 20,537 — 20,537 ' FUND BALANCE, ENDING $ 24,940 $ — $ 24,940 _ . _ ' _ _ ' ' ' ' ' ' ' 50 � 1 , TOWN OF MARANA, ARIZONA GITEM — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-8 Year Ended June 30, 2001 Variance — Favorable Actual Budget (Unfavorable) - _ _ REVENUES � Other agencies Public safety — Arizona $ 166,347 $ 160,000 $ 6,347 Total revenues 166,347 160,000 6,347 EXPENDITURES - -- . _ Current operations -. -- . ._ - Police 166,347 160,000 (6,347) _ __ - Total expenditures 166,347 160,000 (6,347) Excess of revenues over expenditures — — — _ __ __ FUND BALANCE, BEGINNING — — — FUND BALANCE, ENDING $ — $ — $ — 51 ' � ' , ' ' � , ' ' ' , , ' , , � , ' :. ' TOWN OF MARANA, ARIZONA HIDTA — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN , FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-9 Year Ended June 30, 2001 , Variance — Favorable , Actual Budget (Unfavorable) REVENUES � ' Other agencies Public safety — Tucson $ 43,757 $ 54,000 $ (10,243) Total revenues 43,757 54,000 (10,243) ' ` . _. . _ _ : EXPENDITURES - - _ _ _ ;_ � Current operations . - Police _ 43,757 54,000 10,243 Total expenditures 43,757 54,000 10,243 ' Excess of revenues , _ over expenditures — FUND BALANCE, BEGINNING — — — �' FUND BALANCE, ENDING $ — $ — $ — ' . _ . ' ' ' ' ' ' ' 52 ' _ _ 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, 2001 Variance — ' Favorable Actual Budget (Unfavorable) ' REVENUES � Other agencies ' _ Pubiic safety — Tucson $ 56,394 $ 53,000 $ 3,394 Total revenues 56,394 53,000 3,394 ' EXPENDITURES -_ - _ _ . - -- . Current operations � Police 56,394 53,000 . (3,394) Total expenditures 56,394 53,000 (3,394) _ _ ' Excess of revenues over expenditures — — — - _ _ ' FUND BALANCE, BEGINNING — — — FUND BALANCE, ENDING $ — $ — $ — ' _ : _. _ . ' _ , ' r � �� _ � �� � 53 , __ ___ . _ ' TOWN OF MARANA, ARIZONA AUTO THEFT - SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN ' FUND BALANCE - BUDGET AND ACTUAL EXHIBIT B-11 Year Ended June 30, 2001 , Variance - Favorable , Actual Budget (Unfavorabie) REVENUES � ' Other agencies - Public safety - Arizona $ 38,300 $ 53,000 $ (14,700) Total revenues 38,300 53,000 (14,700) ' , .. - EXPENDITURES � Current operations . _ Police 38,300 53,000 14,700 _ , Total expenditures 38,300 53,000 14,700 Excess of revenues , over expenditures . _ - - FUND BALANCE, BEGINNING - - - , FUND BALANCE, ENDING $ - $ - $ - __ _ . _ - _ _ _ _ _ _ __ _ _ __ _. . _ _ ' _ ' ' ' ' ' ' ' 54 I ' I III� TOWN OF MARANA, ARIZONA HIGHWAY USER REVENUE — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL EXHIBIT B-12 Year Ended June 30, 2001 ' � Variance — ' Favorable _ Actual Budget (Unfavorable) : _ _ _ ' REVENUES • Other agencies , _ Highway user fees — Arizona $ 517,356 $ 537,695 $ (20,339) _ __ _ _ . _ . Totai revenues 517,356 537,695 (20,339) , , , _ _ ' EXPENDITURES _ _ _ _ _ _ Current operations . - Public works — 537,695 537,695 ' _ _ . _ _ Total expenditures — 537,695 537,695 OTHER FINANCIAL SOURCES ' Transfers to other fund __ 517,356 — (517,356) _ --_ _ , - - - _ ' Total expenditures and other financial uses 517,356 537,695 20,339 Excess of revenues over expenditures ' and other financial souces — — — , FUND BALANCE, BEGINNING — — — ' FUND BALANCE, ENDING $ — $ — $ — , 55 ' ' ' ' � `_ � , _ _. . _ I I,' TOWN OF MARANA, ARIZONA LTAF — SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL ' EXHIBIT B-13 Year Ended June 30, 2001 ' Variance — Favorable _ . Actual Budget (Unfavorable) ' : _ _ : - REVENUES � ' Other agencies LTAF funds — Arizona $ 73,019 $ 73,125 $ (106) LTAF — Pima Assoa _ _ _ _ _ _ _ : _ of Governments . 38,623 — 38,623 , __ < -_ Total revenues 111,642 73,125 38,517 EXPENDITURES - ' __ . Current operations _ _ ' Public works — 73,125 73,125 Total expenditures — 73,125 73,125 ' OTHER FINANCIAL SOURCES - Transfers to other fund 111,642 — (111,642) ' Total expenditures and other financial uses 111,642 73,125 (38,517) ' Excess of revenues over expenditures _ _ _ and other financial souces ' FUND BALANCE, BEGINNING = _ _ FUND BALANCE, ENDING $ $ $ ' ' ' , I� ' I ! ' 56 ' TOWN OF MARANA, ARIZONA LLEBG - SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL EXHIBIT B-14 Year Ended June 30, 2001 Variance - Favorable Actual Budget (Unfavorable) REVENUES . Other agencies Public safety - U.S. Dept of Justice _ $ 23,644 $ 25,000 $ (1,356) ___ T t � ___. __ , 25 000 1 356 ' ' ' ' _ ' o a revenues 23,644 , ( , ) , OTHER FINANCIAL SOURCES Transfers from other funds ` � 958 - 958 , Total revenues and other financial sources 24,602 25,000 (398) ' EXPENDITURES : - . . - -- - _: _ _ _ ' Current operations Police 26,287 25,000 (1,287) Total expenditures 26,287 25,000 (1,287) ' - _ _ ._ _ Excess (deficiency) of revenues ' and other financial sources over (under) expenditures (1,685) - (1,685) FUND BALANCE, BEGINNING 1,685 - 1,685 ,, FUND BALANCE, ENDING $ - $ - $ - ' , ' ❑ ' I 57 ' I • STATEMENTS C DEBT SERVICE FUNDS Debt Service Funds are created to account for the accumulation of resources for, and the payment of, general-long term debt principal and interest. 2000 General Oblig�tion Debt Service Fund - this fund accounts for the accumulation of resources and payment of principal and interest on the series 2000 revenue bonds. The Town has pledged Town sales t� revenue, state shared revenues, licenses, fees and permits revenue, and fines, forfeitures and penalties revenue to make the required payments for this series. 1997 General Obligation Debt Service Fund - this fund accounts for the accumulation of resources and payment of principal and interest on the series 1997 revenue bonds. The Town has pledged Town sales tax revenue, state shared revenues, licenses, fees and permits revenue, and fines, forfeitures and penalties revenue to make the required payments for this series. TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET DEBT SERVICE FUNDS — EXHIBIT C-1 June 30, 2001 ASSETS Restricted assets: Cash/Investments TOTALASSETS LIABILITIES AND FUND EQUITY FUND EQUITY Reserved fund balances Reserved for debt service Total fund equity TOTAL LIABILITIES AND FUND EQUITY 2000 1997 General General • Obligation Obligation Totals $ 638,059 $ 395,120 $ 1,033,179 $ 638,059 $ 395,120 $ 1,033,179 $ 638,059 $ 395,120 $ 1,033,179 638,059 395,120 1,033,179 $ 638,059 $ 395,120 $ 1,033,179 58 TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES DEBT SERVICE FUNDS — EXHIBIT C-2 Year Ended June 30, 2001 REVENUES Interest Total revenues OTHER FINANCIAL SOURCES Tranfers from other funds Total other financial sources Total revenues and other financial sources EXPENDITURES Debt service Principal retirement I nterest Fiscal agent fees Total expenditures Excess of revenues and other financial sources over expenditures FUND BALANCES, BEGINNING FUND BALANCES, ENDING 2000 1997 General General Obligation Obligation Totals $ 618 $ 382. $ 1,000 618 382 1,000 1,260,740 786,263 2,047,003 1,260,740 786,263 2,047,003 1,261,358 786,645 2,048,003 750,000 435,000 1,185,000 458,099 353,450 811,549 1,500 2,000 3,500 1,209,599 790,450 2,000,049 51,759 (3,805) 47,954 586,300 398,925 985,225 $ 638,059 $ 395,120 $ 1,033,179 59 ' TOWN 2000 GENERAL O STATEMENT OF REVEN ' FUND BALA Year ' 1 REVENUES ' Interest Total revenues , OTHER FINANCIAL SOURCES Tranfers from other funds , Totai other financial sources Total revenues and other financial ' sources EXPENDITURES ' Debt service Principal retirement Interest Fiscal agent fees ' Total expenditures ' Excess of revenues and other financial sources over expenditures FUND BALANCES, BEGINNING , FUND BALANCES, ENDING ' ' ' ' � � ' ' OF MARANA, ARIZONA BLIGATION — DEBT SERVICE FUND UES, EXPENDITURES, AND CHANGES IN NCE — BUDGET AND ACTUAL EXHIBIT C-3 Ended June 30, 2001 Variance— Favorable Actual Budget (Unfavorable) $ 618 $ — $ 618 618 — 618 1,260,740 1,263,350 (2,610) 1,260,740 1,263,350 (2,610) 1,261,358 1,263,350 (1,992) _ _ __ - __ 750,000 750,000 — 458,099 458,099 — 1,500 55,251 53,751 1,209,599 1,263,350 53,751 51,759 — 51,759 586,300 — 586,300 $ 638,059 $ — $ 638,059 .� TOWN OF MARANA, ARIZONA ' 1997 GENERAL OBLIGATION — DEBT SERVICE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL ' EXHIBIT C-4 Year Ended June 30, 2001 Variance— ' Favorable - Actual Budget (Unfavorable) ' REVENUES Interest $ 382 $ — $ 382 ' Totalrevenues 382 — 382 OTHER FINANCIAL SOURCES ' Tranfers from other funds 786,263 786,143 120 Total other financial sources 786,263 786,143 120 _ _ ' Total revenues and other financial sources 786,645 786,143 502 - -_ __ , _ __ . _ 1 EXPENDITURES Debt service Principal retirement 435,000 435,000 — ' Interest 353,450 351,143 (2,307) Fiscal agent fees 2,000 — (2,000) I � Total expenditures 790,450 786,143 (4,307) ' Excess (deficiency) of revenues and other financial sources over (under) expenditures (3,805) — (3,805) ' FUND BALANCES, BEGINNING 398,925 — 398,925 FUND BALANCES, ENDING $ 395,120 $ — $ 395,120 ' , ' ' ' , 61 ' � ' ' ' ' ' ' STATEMENTS D CAPITAL PROJECTS FUNDS , ° Capital Projects Funds are created to account for the purchase or construction of major ' capital facilities which are not financed by the general, enterprise, or special revenue funds. ' 2000 General Obligation Ca�ital Pro�ect Fund - this fiznd accounts for the proceeds from the sale of the 2000 general obligation bonds which are used for authorized capital improvements. ' 1997 General Obligation Ca itan 1 Pro�ect Fund - this fund accounts for the proceeds from the sale of the 1997 general obligation bonds which are used for authorized capital ' improvements. Other Ca�ital Pro�ect Funds - this fund accounts for the purchase or construction of major , capital facilities which are not funded by general obligation bonds. ' ' �� t , ' ' i ' , TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET CAPITAL PROJECTS FUNDS — EXHIBIT D-1 June 30, 2001 �SETS Due from other funds Deposit for equipment Receivables: Other Restricted assets: Cash/Pooled Investments Investments 1TAL ASSETS �BILITIES AND FUND EQUITY �BILITIES Accounts payable Due to other funds Deferred revenue Total liabilities ' FUND EQUITY Unreserved fund balances Designated for subsequent years' expenditures ' Total fund equity ' TOTAL LIABILITIES AND FUND EQUITY ' ' , ' I' Other 2000 1997 Capital General General , Project Obligation Obligation Funds Totals $ — $ — $ 771,786 $ 771,786 121,000 — — 121,000 — — 193,366 193,366 10,393,420 — — 10,393,420 14,236 1,265,701 — 1,279,937 $ 10,528,656 $ 1,265,701 $ 965,152 $12,759,509 $ 11,2gg $ — $ 596,726 $ 608,014 3,021,918 19,836 — 3,041,754 — — 260,016 260,016 3,033,206 19,836 856,742 3,909,784 7,495,450 1,245,865 108,410 8,849,725 7,495,450 1,245,865 108,410 8,849,725 $ 10,528,656 $ 1,265,701 $ 965,152 $12,759,509 C•� TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF RE,/ENUES, EXPENDITURES, AND CHANGES IN FUND BAIANCES CAPITAL PROJECTS FUNDS - EXHIBIT D-2 Year Ended June 30, 2001 REVENUES Other agencies Public works - Pima Assoc. of Governments Airport - State of Arizona Public works - State of Arizona Licenses, fees and permits I m pact fees Interest Total revenues OTHER FINANCIAL SOURCES Tranfers from other funds Total revenues and other financial sources EXPENDITURES Capital improvement projects Hartrnan Lane Improvements Tangerine Road Project Levee Development Drain Study Handicap Ramp Replacement Park Maintenance Building Orange Grove Drainage Outlet Holiday Banner and Light Project Santa Cruz River Study Fire Protection/Suppression System Pavement Rehabilitation/Runway Preservation Aerial Photography Cortaro Road Improvements Transportation Plan Update Silverbell Road Improvements Emigh Road Traffic Signal Back-up Traffic Signal Controller Upgrade Stre2t Lighting Twin Peaks Interchange Scoping Continental Neighborhood Park Web Page Design Work at Home Stations Perimeter/Security Fence Alternative Fuel Vehicle Fueling Depot Municipal Complex Total expenditures F�ccess (deficiency) of revenues and other financial sources over (under) expenditures FUND BALANCES, BEGINNING Residual squity transfers out FUND BALANCES, ENDING 2000 1997 General General Obligation Obligation Other Capital Project Funds Totals $ - $ 610,131 102,483 610,131 102,483 $ 2,055,588 $ 2,055,588 193,366 193,366 28,750 28,750 108,355 108,355 54 712,668 2,386,113 3,098,727 2,339,923 2,339,923 610,131 102,483 4,726,036 5,438,650 2,995,118 2,995,1 18 598,897 598,897 17,771 17,771 35,280 35,280 7,903 7,903 430 430 196 196 68,786 68,786 43,897 43,897 234,445 234,445 4,670 4,670 65,400 65,400 2,687,352 2,687,352 196,983 196,983 191,118 191,118 80,731 80,731 35,000 35,000 105,921 105,921 10,566 10,566 4,641 4,641 58,391 58,391 41,152 41,152 51,438 51,438 30,493 30,493 40,565 40,565 5,600 3,000,718 4,617,626 7,612,744 (2,384,987) 102,483 108,410 (2,174,094) 9,880,437 2,122,856 - 12,003,293 - (979,474) - (979,474) $ 7,495,450 $ 1,245,865 $ 108,410 $ 8,849,725 63 _ __ _ _ _ _ _ , TOWN OF MARANA, ARIZONA 2000 GENERAL OBLIGATION — CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN , FUND BALANCE — BUDGET AND ACTUAL EXHIBIT D-3 Year Ended June 30, 2001 ' Variance— ' _ _ Favorable Actual Budget (Unfavorable) REVENUES ' Interest $ 610,131 $ — $ 610,131 Total revenues 610,131 — 610,131 , OTHER FINANCIAL SOURCES Bond proceeds — 5,000,000 (5,000,000) - : . Total revenues and other financial ' sources 610,131 5,000,000 (4,389,869) ' EXPENDITURES Capital improvement projects Twin Peaks Interchange Scoping — 1,275,000 1,275,000 ' Continental Ranch Water Storage _ and Booster Plant ' 5,000,000 5,000,000 Municipal Complex 2,995,118 725,000 (2,270,118) ' Total expenditures 2,995,118 7,000,000 4,004,882 Excess (deficiency) of revenues and other financial , sources over (under) expenditures (2,384,987) (2,000,000) (384,987) FUND BALANCES, BEGINNING 9,880,437 2,000,000 7,880,437 ' FUND BALANCES, ENDING $ 7,495,450 $ — $ 7,495,450 ' ' ' ' , ' ' 64 , ' TOWN OF MARANA, ARIZONA ' 1997 GENERAL OBLIGATION — CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE — BUDGET AND ACTUAL ' EXHIBIT D-4 Year Ended June 30, 2001 ' Variance— Favorable ' Actual Budget (Unfavorable) REVENUES Interest $ 102,483 $ — $ 102,483 ' Total revenues 102,483 — 102,483 _ ' EXPENDITURES i, Capital improvement projects _ _ ' Water System Improvements/Acquistion — 900,000 900,000 , Total expenditures — 900,000 900,000 Excess (deficiency) of revenues - - - - - ' over (under) expenditures 102,483 (900,000) 1,002,483 FUND BALANCES, BEGINNING 2,122,856 900,000 1,222,856 ' Residual equity transfers out (979,474) — (979,474) _ FUND BALANCES, ENDING $ 1,245,865 $ — $ 1,245,865 ' ' ' ' ' , ' ' ' 65 ' � ___ ___- : _ _ _ _ _. ' TOWN OF MARANA, ARIZONA OTHER CAPITAL PROJECT FUNDS - CAPITAL PROJECT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN , FUND BALANCE - BUDGET AND ACTUAL EXHIBIT D-5 Year Ended June 30, 2001 , ' REVENUES Other agencies Public works - Pima Assoc. of Governments $ 2,055,588 Airport - State of Arizona 193,366 Public Works - State of Arizona 28,750 Licenses, fees and permits - - Impact fees 108,355 I nterest 54 Total revenues 2,386,113 OTHER FINANCIAL SOURCES Tranfers from otfie�_funds ` 2,339;923 Total revenues and other financial sources 4,726,036 EXPENDJTURES _ __ _ Capital improvement projects Hartman Lane Improvements 598,897 - Tangerine Road Project_ __ _ _ 17,771 Levee Development Drain Study 35,280 Handicap Ramp Replacement 7,903 Park Maintenance Building 430 Orange Grove Drainage Outlet 196 Holiday Banner and Light Project 68,786 Santa Cruz River Study 43,897 Fire Protection/Suppression System 234,445 Pavement Rehabilitation/Runway Preservation 4,670 Aerial Photography 65,400 Cortaro Road Improvements 2,687,352 Transportation Plan Update 196,983 Silverbell Road Improvements 191,118 Emigh Road 80,731 Traffic Signal Back-up 35,000 Traffic Signal Controller Update 105,921 Street Lighting 10,566 Twin Peaks Interchange Scoping 4,641 Continental Neighborhood Park 58,391 Web Page Design 41,152 Work at Home Stations 51,438 Perimeter/Security Fence 30,493 Alternative Fuel Vehicle Fueling Depot 40,565 Municipal Complex 5,600 Other Projects not started - Total expenditures 4,617,626 Excess (deficiency) of revenues and other financial sources over (under) expenditures 108,410 FUND BALANCES, BEGINNING - Variance- Favorable Actual Budget (Unfavorable) $ 5,200,000 $ (3,144,412) 2,695,780 (2,502,414) - 28,750 375,000 - (266,645) - 54 8,270,780 (5,884,667) 6,796,495 (4,456,572) 15,067,275 (10,341,239) 451,500 200,000 40,000 40,000 75, 000 50, 000 100,000 60, 000 1,941,775 100,000 120,000 5,500,000 200, 000 4,200,000 250,000 30, 000 120,000 80, 000 3,750,000 60,000 72, 000 375,000 22,000 3,230,000 21,067,275 (147,397) 182,229 4,720 32,097 74, 570 49,804 31, 214 16,103 1, 707, 330 95,330 54,600 2,812,648 3,017 4, 008, 882 169,269 (5, 000) 14,079 69,434 (4, 641) 3,691,609 18, 848 20, 562 344,507 (18,565) (5,600) 3,230,000 16,449,649 (6,000,000) 6,108,410 s,000,000 (s,000,000� ' FUND BALANCES, ENDING ' __ $ 108,410 $ - $ 108,410 .. STATEMENTS E ENTERPRISE FUNDS Enterprise Funds are 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. Expenses, including depreciation, of providing goods or services to the general public are recovered primarily through 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. Air�ort Authoritv - established to account for the financing and operation of the Marana Airport. ' , ' ' ' �J ' , ' ' ' ' C�' � ' ' , ' TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET ENTERPRISE FUNDS - EXHIBIT E-1 June 30, 2001 Water Airport Fun Authority ASSETS CURRENT ASSETS Receivables: Other Due from other funds Total current assets PROPERTY, PLANT, AND EQUIPMENT Land Water rights Improvements, including wells and tanks Machinery, equipment, and other assets Organization costs - Total Less accumulated depreciation and amortization Total property, plant, and equipment TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Accounts payable Deposits Accrued payroll Other Total Current portion of note payable Total current liabilities LONG-TERM LIABILITIES Note payable, less current maturities above Total long-term liabilities Total liabilities FUND EQUITY Contributed capital Deficit Total fund equity TOTAL LIABILITIES AND FUND EQUIN 68 Totals $ 61,018 $ 16,104 $ 77,122 168,304 9,518 177,822 229,322 25,622 254,944 14,720 207,090 221,810 433,696 - 433,696 3, 574,173 - 3, 574,173 80,702 17,078 97,780 39,388 15,349 54,737 4,142,679 239,517 4,382,196 626,454 11,350 637,804 3,516,225 228,167 3,744,392 $ 3,745,547 $ 253,789 $ 3,999,336 $ 55,383 $ 13,818 $ 69,201 61,662 - 61,662 7,516 2,040 9,556 7,330 - 7,330 131,891 15,858 147,749 8,800 - 8,800 140, 691 15, 858 156, 549 52,800 - 52,800 52,800 - 52,800 193,491 15,858 209,349 4,622,170 408,019 5,030,189 (1,070,114) (170,088) (1,240,202) 3,552,056 237,931 3,789,987 $ 3,745,547 $ 253,789 $ 3,999,336 � TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY - ENTERPRISE FUNDS - EXHIBIT E-2 Year Ended June 30, 2001 Water Airport Fund Authority Totals OPERATING REVENUES Current use charges Other Total operating revenues OPERATING EXPENSES Material, supplies, and other expenses: Personal services Contractual services Commodities Other Depreciation expense Total operating expenses NET LOSS DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING $ 616,448 $ 60,507 $ 676,955 61,724 17,649 79,373 678,172 78,156 756,328 231,292 63,119 294,411 345,040 42,463 387,503 151,410 8,075 159,485 40,206 42,317 82,523 198,658 6,486 205,144 966,606 162,460 1,129,066 (288,434) (84,304) (372,738) (781,680) (85,784) (867,464) (1,070,114) (170,088) (1,240,202) 3,642,696 979,474 4,622,170 $ 3,552,056 408,019 4,050,715 - 979,474 408,019 5,030,189 $ 237,931 $ 3,789,987 .• . ' , , ' _ _ __ __ I TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF CASH FLOWS ENTERPRISE FUNDS — EXHIBIT E-3 Year Ended June 30, 2001 CASH FLOWS FROM OPERATING ACTIVITIES , Loss from operations Adjustments to reconcile loss from operations to net cash used by operating activities: ' Depreciation Changes in operating assets and liabilities: (Increase) decrease in accounts receivable Decrease in accounts payable , and accrued expenses Net cash used by operating activities , CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES ' Decrease in due from other funds Decrease in due to other funds Net cash provided (used) by ' noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED , FINANCING ACTIVITIES Residual equity transfers from capital project funds Principal paid on note payable ' Purchase of fixed assets Net cash provided by capital and , related financing activities NET INCREASE IN CASH ' CASH, BEGINNING OF YEAR CASH, END OF YEAR ' ' , ' , 70 Water Airport Fund Authority Totals $ (288,434) $ (84,304) $ (372,738) 198,658 6,486 205,144 7,552 (2,076) 5,476 (151,347) (15,595) (166,942) (233,571) (95,489) (329,060) 3,127 95,489 (26,964) — 98,616 {26,964) (23,837) 95,489 979,474 �s,soo� (713,266) 257,408 71,652 979,474 (s,soo) (713,266) 257,408 $ — $ — � — TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS WATER FUND — EXHIBIT E-4 June 30, 2001 and 2000 2001 ASSETS CURRENT ASSETS Receivables: Other $ 61,018 Due from other funds 168,304 Total current assets 229,322 PROPERTY, PLANT, AND EQUIPMENT _ Land _ _ _ 14,720 Water rights 433,696 Improvements, including wells and tanks 3,574,173 Machinery, equipment, and other assets 80,702 �, Organization costs 39,388 Total 4,142,679 Less accumulated depreciation and am ortizatio n 626,454 Total property, plant, and equipment 3,516,225 TOTAL ASSETS $ 3,745,547 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: Accounts payable $ 55,383 Deposits 61,662 Accrued payroll 7,516 Other 7,330 Total 131, 891 Due to other funds — Current portion of note payable 8,800 Total current liabilities 140,691 LONG—TERM LIABILITIES Note payable, less current maturities above 52,800 Total long—term liabilities 52,800 Total liabilities 193,491 FUND EQUITY Contributed capital 4,622,170 Deficit (1,070,114) Total fund equity 3,552,056 TOTAL LIABILITIES AND FUND EQUITY $ 3,745,547 2000 $ 68, 570 171,431 240, 001 14,720 386,288 2,913,513 75, 504 39, 388 3,429,413 427,796 3, 001, 617 $ 3,241,618 $ 215,724 54, 408 6, 818 6,288 283,238 26, 964 8, 800 319,002 61,600 61, 600 380,602 3,642,696 (781, 680) 2,861,016 $ 3,241,618 71 � _. ,._ . _ _ . ' TOWN OF MARANA, ARIZONA COMPARATIVE BALANCE SHEETS , AIRPORT AUTHORITY — EXHIBIT E-5 June 30, 2001 and 2000 2001 I � ASSETS CURRENT ASSETS ' Receivables: ' . Other Due from other funds Total current assets I, ' PROPERTI(, PLANT, AND EQUIPMENT __ _ _ _ Land ' Machinery, equipment, and other assets Organization costs - _ __ , Total - ,:_ : ' Less accumulated depreciation and amortization Total properry, plant, and equipment ,_ _ - - _ _ _ -- _ TOTAL ASSETS ' LIABILITIES AND FUND EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities: ' Accounts payable Accrued payroll Total current liabilities ' FUND EQUITY Contributed capital , Deficit Total fund equity TOTAL LIABILITIES AND FUND EQUITY ' ' ' ' � ' 72 ' $ 16,104 9, 518 25, 622 2000 $ 14,028 105,007 119,035 207,090 207,090 17,078 17,078 15, 349 15, 349 239, 517 239, 517 _ 11, 350 4, 864 228,167 234,653 $ 253,789 $ 353,688 $ 13,818 2,040 15, 858 408,019 (170,088) 237,931 $ 253,789 $ 31,453 31,453 408, 019 (85, 784) 322,235 $ 353,688 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUfTY - BUDGET AND ACTUAL WATER FUND - EXHIBIT E-6 Year Ended June 30, 2001 Variance - Favorable Actual Budget (Unfavorable) OPERATING REVENUES Current use charges $ 616,448 $ 655,000 $ (38,552) Other 61,724 - �61,724 Total operating revenues 678,172 655,000 23,172 OPERATING EXPENSES Material, supplies, and other expenses: Personal services . 231,292 __ 251,240 : 19,948 _ Contractual services 345,040 342,014 (3,026) Commodities 151,410 12,361 (139,049) - - Other 40,206 57,992 17,786 Depreciation expense 198,658 - (198,658) Total operating expenses 966,606 663,607 (302,999) NONOPERATING EXPENSES Capital outlay - 5,000 5,000 _ Total nonoperating expenses - 5,000 5,000 Total expenses 966,606 668,607 (297,999) NET INCOME (LOSS) (288,434) (13,607) (274,827) DEFICIT, BEGINNING DEFICIT, ENDING CONTRIBUTED CAPITAL, BEGINNING Residual equity transfers in CONTRIBUTED CAPITAL, ENDING FUND EQUITY, ENDING (781,680) - (781,680) (1,070,114) (13,607) (1,056,507) 3,642,696 - 3,642,696 979,474 13,607 965,867 4,622,170 13,607 4,608,563 $ 3,552,056 $ - $ 3,552,056 73 r � : , _ . , TOWN OF MARANA, ARIZONA ( , STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY - BUDGET AND ACTUAL AIRPORT AUTHORITY - EXHIBIT E-7 Year Ended June 30, 2001 � Variance - Favorable Actual Budget (Unfavorable) ' OPERATING REVENUES Current use charges $ 60,507 $ 82,250 $ (21,743) Other agencies 17,649 - 17,649 ' Total operating revenues 78,156 82,250 (4,094) OPERATING EXPENSES , . . Material, supplies, and other expenses: Personal services 63,119 61,590 (1,529) ' Contractual services ` 42,463 41,600 ' (863) Commodities 8,075 6,150 (1,925) Other 42,317 38,850 (3,467) ' Depreciation expense 6,486 - (6,486) _ _ __ _ Total operating expenses 162,460 148,190 (14,270) ' NONOPERATING EXPENSES Capital outlay - 25,000 25,000 ' Total nonoperating expenses - 25,000 25,000 , Total expenses 162,460 173,190 10,730 NET INCOME (LOSS) (84,304) (90,940) 6,636 DEFICIT, BEGINNING (85,784) - (85,784) DEFICIT, ENDING (170,088) (90,940) (79,148) CONTRIBUTED CAPITAL, BEGINNWG 408,019 - 408,019 Residual equity transfers in - 90,940 (90,940) CONTRIBUTED CAPITAL, ENDING 408,019 90,940 317,079 FUND EQUITY, ENDING $ 237,931 $ - $ 237,931 74 , ' � _ _ . _ _ ' _ _._ - , . _ _ _ _ ' _ _ _ -, - _ , _ _ _ _ ._ _ _ _ _ _ _ _ _ _ __ _ _ _ - -- - - _ _ _ __ ___ __ ' __ : --_ _ -_ . _ _ _ _ _ _ . ' _ ' ' ' THIS PAGE INTENTIONALLY LEFT BLANK. ' ' ' ' � ' 75 � , STATEMENTS F GENERAL FIXED ASSETS ACCOUNT GROUP The General Fixed Assets Account Group is comprised of those fixed assets of a governmental jurisdiction which are not accounted for in the Enterprise Funds. Infrastructure assets, which include roads, bridges, streets, and street lighting systems are not included in these schedules. TOWN OF MARANA, ARIZONA COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE EXHIBIT F-1 June 30, 2001 and 2000 2001 2000 GENERAL FIXED ASSETS Land Buildings Assets under capital lease Machinery, equipment, and other assets Marana Park Leasehold improvements TOTAL GENERAL FIXED ASSETS $ 2,279,821 2,609,147 3,939,342 1,111,614 464,157 $10,404,081 $ 540,386 1,160,114 221, 522 3,177,088 1,111,614 464,157 $ 6,674,881 INVESTMENT IN GENERAL FIXED ASSETS BY SOURCE From Current Revenues $ 6,037,953 From Revenue Bonds 3,839,258 From Federal Grants 526,870 TOTALINVESTMENTIN GENERAL FIXED ASSETS $10,404,081 $ 5,289,677 938,340 446, 864 $ 6,674,881 � �- O � � c0 aD t0 (� N M t[) O tn lA CO N c0 00 ln O (`) O V' f� O N � ln V C� � � V � CO � (O .�- N � � N V' � r � c� O Ef3 fA N N V t� � � O (O V � � � N M 00 C � N r � I I I � N o I � � N Q . � . J � y� . tfl . . . . . F" . . . . . . 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Q .? � �� � 0 v� � � � N W Q � � X 'a N �' O ') � LL � � C � j N � � J � �I � � 7 N � �� Q p; j � O N 'O �� � CC i p N N - Y Y N w cl � E U % o c E C �° W u- � � °> � N c E ° E � C7 � N N U •� '— N "O Y J N N N O � 7 O N� c6 Q C'3 0 � � a U 0 a � H ' TOWN OF MARANA, ARIZONA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS — BY FUNCTION AND ACTIVITY ' EXHIBIT F-3 Year Ended June 30, 2001 ' General Fixed Additions Deletions General Fixed Assets and and Assets Function and Activity July 1, 2000 Transfers Transfers June 30, 2001 , General government $ 912,491 $ $ (17,681) $ 894,810 Development and planning � services 453,160 (37,621) 415,539 , Police 1,692,304 (31,250) 1,661,054 Magistrate court 159,796 — (5,490) 154,306 , Publicworks 1,296,365 23,660 (46,967) 1,273,058 ' Community development 869,643 179,559 (134,746) 914,456 Development services administration — 3,799,736 — 3,799,736 ' Parks and recreation 1,291,122 — — 1,291,122 TOTAL GENERAL FIXED ASSETS $ 6,674,881 $ 4,002,955 $ (273,755) $ 10,404,081 , _ . _ _ ' , ' , ' , 1 ' � 78 , Q r O Z Z O F- U Z Z � N m Q N Q �� ¢—�¢� QJDy`a QQ c�a g�aZj LL W � v O � � 2 Zy 3 W5 O Z 2 W > � C7 J Q W 2 W � ��rnvrn�rn��� r-�NONN�tn�N � �V:O�tOM�t9fOt`7 � 5�����N`°�� ° �nmroacoo��v_co ~ .-�NIAfO��a'1nM '- r- .- N � M� �I�tncDO d Of� NN�C�Dn U 0 d I �� ' 1 N�� N N N � N V! � N t�(0007 p N aDO� .-Of�tOn �-w � m(�O � � O��� � � 3 N NCO(O�fO V� ai�i�r� � II C f�0����1� ^ N � ° on��n�o� cor� Y d �aoa�D�N� I I n co � N t0 M Of a ° ' � � � � � a��(DO��71�O�M C a... 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' TOWN OF MARANA, ARIZONA TABLE III ASSESSED AND ESTIMATED VALUE OF TAXABLE PROPERTY � LAST TEN FISCAL YEARS {Unaudited) � , Assessed Fiscal Property Year Value ' 1991 -92 $ 21,302,281 1992 - 93 20,105,438 1993 -94 21,360,473 ' 1994-95 46,427,724 1995 - 96 49, 677 , 845 1996 -97 59,454,386 ' 1997-98 72,242,105 1998 -99 81,390, 365 1999 -00 98,250, 095 2000 -01 310,432,295 , _ Estimated Property Value $ 164,744,983 156,300,829 160,582,056 297, 740, 632 325,467,683 363,689,243 485, 315, 813 560,419,914 693,931,626 2,761,526,707 Ratio of Total Assessed Value to Total Estimated Value 13% 13% 13% 16% 15% 16% 15% 15% 14% 11 % ' _. -__ _ _ = - -, _- _ _ _ ,_ Note: Includes real property oniy , Source: Pima County Assessor's Office of Pima County, Arizona � ' ' ' , , ' ' E3: � (O ln � 00 � OD (O � N rn c� O M� r M M O� O� � � �r-�OO��fOOI�� Q N N 6) � f� t0 l0 � N N N N N N N N �3 = O O O O O O O O O O � O O O O O O O O O O � R R� R[t ��' � T T � N��� O O O O O O O O O O U Q � c � 0 U I � � _ r in aD c � inv� � y; I I I 1 I I I �.j �.j �.j LL - y y � Q N H Z_ . 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OO�nOrNtNtD V O tn lf� V� ln �t V� ln ln n' U � O O O O O O O O o � �nr�n ���� I I I I I I � N O O O O (n Q � N M� If) CO f� [O m O t0 � � � � m � � � m O O y� I I I I I I I I I I LL N M V lA (O 1� OD � O � � � � m � � m � O W m� m m m m�� O .-- .- .- .- � � .- .- .- N N m U . � � y N N � j t6 U = o � �, ' U id V U � a. _ E `� o s r� ~� c�n a� d >. p � L N d = N � �� � ro � N CA O C T � C >. i0 y �� fl- � V � O p. l0 � N �cg � �� � o � o � � �' n� U tC V O � � in in � O a V U � w f N y N O y a� U 0 L = +� � d O N Q � � � L m � - � °'� in -- �, — .� .«- � ° � R � � in o � � 3 ca �� N d F�- f6 oEia N°' � C N � T � d C C �X �j O O cn � O N T n- �? � U � � rn � � � � _ � N a � - X - C O N y O•� H� � N O E t o �`�� ~� o Z r N cn ' TOWN OF MARANA, ARIZONA TABLE V ' COMPUTATION OF LEGAL DEBT MARGIN GENERAL OBLIGATION BONDS June 30, 2001 (Unaudited) , Net Assessed Valuation $ 310,432,295 � 20% Bonds (1) , Debt Limit $ 62,086,459 . _ � 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 $ 62,086,459 ' 6% � Bonds (2) Total $ 18,625,938 $ 80,712,397 $ 18,625,938 $ 80,712,397 Notes: ' (1) Under Arizona law, Towns can issue general obligation bonds for purposes of water, sewer, artificial light, and parks up to an amount not exceeding 20% of assessed valuation. , (2) Under Arizona law, Towns can issue general obligation bonds for all purposes other than those listed in Note (1) above, up to an amount not exceeding 6% ' of assessed valuation. , Sources: Town of Marana, Arizona and Pima County Assessor's Office of Pima County, Arizona '. ' , ' 84 ' _ _ _ _ TOWN OF MARANA, ARIZONA TABLE VI COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2001 (Unaudited) - ._ _ Percentage � Amount Net Applicable Applicable Bonded Debt to to - - Jurisdiction Outstanding Town of Marana Town of Marana '' Town of Marana, Arizona $ 16,330,000 100.0000% $ 16,330,000 Pima County 192,625,000 7.1176% 13,710,218 Marana School District 58,830,000 27.0100% - = 15,889,983 Flowing Wells School District 16,470,000 7.6923% 1,266,923 __ _ Total $ 284,255,000 $ 47,197,124 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 Town of Marana, Arizona based upon assessed property values and square mileage of intersected territory. Sources: Town of Marana, Arizona and Pima County Assessor's Oftice of Pima County, Arizona 85 ' TOWN OF MARANA, ARIZONA TABLE VII , LEASE REVENUE BOND COVERAGE LAST TEN FISCAL YEARS (Unaudited) ' , _ : _ _ _ Fiscal Excise � Year Revenues Principal Interest Total Coverage , 1991 —92 $ 939,598 $ — $ 22,858 $ 22,858 41.11 1992-93 1,148,229 — - 49,402 49,402 23.24 . ' 1993-94 3,902,424 — 47,361 47,361 82.40 1994-95 6,447,896 - 5,000 47,061 52,061 123.85 1995-96 7,516,097 15,000 45,993 60,993 123.23 1996-97 9,461,127 15,000 44,903 59,903 157.94 _ 1997-98 - 10,995,24� 560,000 —. 560,000 . 19.63 1998-99 14,963,819 245,000 479,362 724,362 20.66 1999-00 17,267,065 415,000 370,250 785,250 21.99 ' 2000-01 16,999,093 1,185,000 811,549 1,996,549 8.51 -_ _ _ _ _ ' - __ _. _ __ _ _ _ _ . _ _ _ _ ' . 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 ' , , ' 86 , ._ . t TOWN OF MARANA ' TABLE VIII DEMOGRAPHICS June 30, 2001 ' (Unaudited) Population by Age Group ' Percentage Age Group Number of Total Under 5 1,170 8.60% ' 5-14 1,985 14J0% 15-19 740 5.50% � 20-34 3,026 22.20% 35-44 2,351 17.30% ' _ _ 45-54 _ 1,650 12.20% - - - _ 55-64 1,340 9.90% : 65 and over 1,294 9.60% t Total 13,556 100.00% _ _ _ _ _. _ Population by Ethnic Background . ' Percentage _ Background group Number of Total White - 9,718 71.69% ' Hispanic 2,663 19.64% Biack 392 2.89% Native American _ _ _ 286 2.11 % . _ ' Other 497 3.07% Totai 13,556 100.00% -_ _ _ _ _ _ _ _ __ , Population by Jurisdiction: Town of Pima State of ' Years Marana County Arizona 2000 Census 13,556 843,746 5,130,632 1998 Estimate 9,965 823,900 4,764,025 1995 Special Census 5,309 758,050 4,228,900 , 1990 Census 2 187 80 3 665 305 , 666,8 , , 1980 Census 1,674 531,443 2,718,425 N t :P ' o e opulation figures are based on 2000 Census of Population and Housing issued May 2001. Source: U.S. Census Bureau � ' ' ' ' 87 _ , _ ' TOWN OF MARANA TABLE IX ' PROPERTY VALUE AND CONSTRUCTION LAST TEN FISCAL YEARS (Unaudited) � - - _ _ - - -- _.._ —_. _ _ Estimated Residential Construction Commercial Construction Fiscal Property Number of Number of � Year Value Units Value Units Value 1991-92 $ 164,744,983 18 $ 1,788,250 10 $ 1,713,967 . : 1992-93 _- 156,300,829 112 9,417,569 1 20,000 _ _ _ 1993-94 ,160,582,056 447 40,709,699 5 . 189,244 '_, 1994-95 297,740,632 320 28,018,383 . 41 5,742,572 1995-96 325,467,983 329 34,083,387 40 1,842,171 1996-97 363,689,243 435 68,352,903 36 4,284,366 ' ,189�-98_ 485315,813 - 713 - - -77,801,401 40 6,675,409 1998-99 � 560,419,914 1,003 - 108,490,481 37 15,730,402 - 1999-00 693,931,626 786 93,628,161 22 9,471,305 2000-01 2,761,526,707 690 85,603,244 32 7,548,471 ' _ _ _ _ _ __ _ ___ _ _ -- _ -- _ __ ' __ - - - _ __ _ _ _ _ _ , Source: Town of Marana . __ ' _ ' ' ' ' ' , , 88 1 _ TOWN OF MARANA , TABLE X TOP TEN TAXPAYERS-SELECTED INDUSTRIAL GROUPS June 30, 2001 ' (Unaudited) � Retail Restaurants Construction Costco - Cracker Barrei Del Webb Homes K- Mart McDonald's Pulte Homes .' Home Depot Taco Bell U S Homes Target Wendy's Richmond American Homes Driver's Mart Lil Abner's KE&G Homes � Sam tevifz Furniture . Hooters D R Horton Construction - Fry's Food and Drug - Eegee's __ Lloyd Construction : Petsmart . Denny's Ashton Construction ' Tucson Cycle and Ski Timber Lodge AZ Underground Payless/Cashways Domino's - G R Walton Construction _ - _ . . _ _. __ _ __ - ' _ � _ _ __ . _ _ _ _ _ _ - _ _ _ , _ _ _ . _ _ ' Source: Town of Marana �' __ _ _ _ , _ _ _ _ _ _ ' Note: Since the Town does not levy rroperty taxes, the tor ten sales tax�ayers are based on Town sales tax collections. , __ _ _ _ _ , _ ' � , , ' ' ' ' 89 _ ' __ _ _ - ' _ TOWN OF MARANA ' TABLE X TOP TEN TAXPAYERS SELECTEDINDUSTRY GROUPS ' June 30, 2001 (Unaudited) ,--_ _. _: _ _ _ _ __ _. _ _ __ . _ . Retail Restaurant & Bars Construction Costco Cracker Barrel Del Webb Homes ' K-Mart McDonald's Pulte Homes Home Depot Taco Bell U S Homes Target . Wendy's . Richmond American Homes Driver's Mart LiFAbner's KE&G Homes ' Sam Levitz Furniture Hooters _ D R Horton Construction Fry's Food and Drug Eegee's Lloyd Construction Petsmart Denny's Ashton Construction - ': Tucsorr-Cycle and Ski Timber Lodge AZ Underground Payless Cashways_ Domino's Pizza G R Walton Construction _ _ _ _ _ _ _ _ _ _ _ _ _ _ , '_ . _ _ ' - _ _ :_ _ . _ Source: Town of Marana ' Note: Since the Town does not levy property taxes, the top ten sales taxpayers are based on Town sales _ ax co ections. _ _ ' ' ' ' , t ' 1 89 ' __ . . - TOWN OF MARANA . TABLE XI ' MISCELLANEOUS STATISTICAL DATA June 30, 2001 ' (Unaudited) , Date of incorporation: March 21, 1977 Form of govemment: 7 member Council/Manager - _ ' Town Employees Full-Time 163 ' Part-Time_. _ _ : 12 _ . - - - _ . __ Totai 175 . _ _ . : ' Police Protection Number of Stations- 2 -_ _ - Totai Fuii-Time Employees : _ ` 67 , Commissioned Employees 50 _ _ _ _ _ __ _ - - _ Parks and Recreation ' Acres _ 40 Parks _ . 1 Piaygrounds 1 _ _SwimmingPools _ _ . 1 : _ ._ - - __ , Water Utility _ . Operable Wells 16 , Active Services: _ _ . Metered 1,246 Unmetered 58 , Water Distributed (Gallons) 168,738,189 _ ' Source: Town of Marana ' ' , ' ' � 90 '