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TOWN OF 1ViARANA
MARANA, ARIZONA
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2004
Issued by:
Finance Department
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
Town of Mazana Officials
Town of Marana Senior Staff
Town of Marana Organization Chart
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet -
Governmental Funds to the Statement of Net Assets
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and
Cha�ges in Fund Balances - Governmental Funds to the
Statement of Activities
Page
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vi
vii
1
5
19
20
24
27
28
31
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS (Cont'd)
FINANCIAL SECTION (Cont'd)
BASIC FINANCIAL STATEMENTS (Concl'd)
Statement of Net Assets - Proprietary Funds
Statement of Revenues, Expenses and Changes in Fund Net Assets -
Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Notes to Financial Statements
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL
(Required Supplementary Information)
General Fund
Note to Required Supplementary Information
COMBIl�TING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Other Major Governmental Funds Schedules of Revenues, Expenditures and
Changes in Fund Balances - Budget and ActuaL•
2003 General Obligation
Capital Improvements Fund
Non-Major Governmental Funds:
Combining Balance Sheet - All Non-Major Governmental Funds -
By Fund Type
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances - All Non-Major Governmental Funds - By Fund Type
Page
32
33
34
35
63
64
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71
72
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS (Concl'd)
FINANCIAL SECTION (Concl'd) Pa e
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES (Concl'd)
Non-Major Special Revenue Funds:
Combining Balance Sheet 76
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
Non-Major Debt Service Funds:
Combining Balance Sheet
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Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 96
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual 98
Non-Major Capital Projects Fund:
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
102
103
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual 104
SUPPLEMENTAL INFORMATION
Sales Tax by Industry Group
Top Ten Taxpayers by Selected Industry Groups
1•
109
Single Family Residential Permits 110
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MARANA
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December 3, 2004
The Honorable Mayor and Council
Town of Mazana, Arizona
TOWN OF MARANA
State statutes require that cities and towns publish a complete set of financial statements presented in
conformity with accounting principles generally accepted in the United States of America and
audited in accordance with auditing standards generally accepted in the United States by a certified
public accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby
issue the annual fmancial report of the Town of Marana, Arizona (Town) for the fiscal year ended
June 30, 2004.
This report consists of senior management's representations conceming the finances of the Town.
Consequently, senior management assumes full responsibility for the completeness and reliability of
a11 of the information presented in this report. To provide a reasonable basis for making these
representations, management of the Town has established a comprehensive internal control
framework that is designed to protect both the Town's assets from loss, theft, or misuse and to
compile sufficient reliable information for the preparation of the Town's financial statements in
conformity with accounting principles generally accepted in the United States of America. Because
the cost of internal controls should not outweigh their benefits, the Town's comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management, we
assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all
material respects.
The Town's financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified
public accounting firm. The goal of the independent audit was to provide reasonable assurance that
the financial statements of the Town for the fiscal year ended June 30, 2004, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement
presentation. The independent auditor concluded, based upon the audit, that there was a reasonable
basis for rendering an unqualified opinion that the Town's financial statements for the fiscal year
ended June 30, 2004, are fairly presented in conformity with accounting principles generally
accepted_in the United States of America. The independent auditors' report is presented as the first
component of the financial section of this report.
i 13251 NORTH LON ADAMS ROAD � MARANA, AZ 85653-9723 � TELEPHONE: (520) 682-3401 � FAX: 682-2654
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The independent audit of the financial statements of the Town was part of a broader, federally '
mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only on
the fair presenta.tion of the financial statements, but also on the audited Town's internal controls and �
compliance with legal requirements, with special emphasis on internal controls and legal
requirements involving the . administration of federal awards. These reports are available in a
se aratel issued Sin le Audit Re ortin Package.
P Y g P g �
Accounting principles generally accepted in the United States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial statements
in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The Town's NID&A
can be found immediately following the report of the independent auditors.
PROFILE OF THE TOWN
Located in northern Pima County, the Town of Marana is one of the fastest growing communities in
Arizona. The 2000 U.S. Census listed Mazana as the fast growing city in Arizona with a population
increase in excess of 500%. The official resident population increased from 2,162 in 1990 to 13,556
in 2000. Unofficially, the Town's current population is believed to be in excess of 25,000.
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 one hundred 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, Continental Reserve, Sunflower, Heritage
Highlands, Continental Ranch Business Park and Arizona Pavilions Drive. �
Legislative authority for the Town of Marana is vested in a seven-member Mayor and Council.
Voters of the Town directly elect the Mayor. Council-members serve four-year staggered terms.
The Council fixes the duties and compensation of Town officials and employees, and enacts
ordinances and resolutions relating to Town services, taxes, appropriating and borrowing moneys,
licensing and regulating businesses and trades and other municipal purposes. The Town Council
appoints the Town Manager who has full responsibility for executing Council polices and
administering Town operations. Town employees are hired under personnel rules approved by the
Council. A staff of approximately 260 employees is responsible for the functions and operations of
the Town government.
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ECONOMIC CONDITION AND OUTLOOK
Current Condition. The Town's fiscal position improved significantly from fisca12003. At June
30, 2004, the unreserved, general fund balance was $22.1 million, an increase of approximately $5.3
million from the previous fiscal year. The increase stems primarily from higher than expected sales
tax collections combined with excess (to budget) building & development fees. Another
contributing factor was lower than expected expenditures.
The Town's economic prosperity continues to be dependent upon the local economy, namely, sales
� tax. Sales taac revenues continue to comprise a majority (64%) of general fund revenues. Retail
trade and the construction industry accounted for over $14.8 million, or 76%, of total tax revenues.
Retail trade and construction each grew by 12% from the prior year. Retail trade is expected to
� remain healthy, especia.11y with the opening of Wa1-Mart, Kohl's and Lo.we's. • While single family
residential (SFR) permits declined marginally (8%) from the prior year, the construction industry is
expected to remain strong. In fiscal year 2004, the Town issued 1,008 SFR permits. If the current
� trend of activity continues, the Town is on pace to issue in excess of 1,200 SFR permits, which
would surpass its record of 1,179 issued in fisca12003.
� Future Economic Outlook. The economic outlook for the Town of Marana continues to be positive
yet challenging. Marana is expected to have very rapid commercial, industrial and residential growth
in the next ten years due to the abundance of developable land.
,
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 azea 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 has begun in the northwest quadrant of the
township. Development activity has recently commenced on the Gladden Farms proj ect and home
sales are exceeding expectations.
From the commercial perspective, several new business establishments commenced operations in
fiscal year 04, including Lowe's Home Improvement, Kohl's Depariment Store, Al's Ace Hardware,
Eckerd's Drug Store and Brake-Max.
New commercial projects under construction at fiscal year end included several new establishment
located at the intersection of Arizona Pavilions Drive and Cortaro Road.
� Collectively, these new business entities will significantly enhance the local employment and t�
base of the Town. Similarly, completion of the Fire Suppression/Security Fencing project at the
Marana Northwest Regional Airport is expected to yield substantial economic benefits to the Town.
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In summary, the economic outlook continues to be positive. The fiscal year 2005 budget reflects
modest recurring revenue growth and, therefore, spending levels have been adjusted ac�ordingly.
The challenge is to maintain spend.ing within the constraints of the Town's fiscal resources and in the
face of publ�c demands for increased services.
ACKNOW'LEDGEMENTS
Senior management and staffwould li.ke to aclaiowledge the firm ofHeinfeld, Meech & Co., P.C. for
their efforts in the preparation of this financial report. �
A special thanks to the Mayor and Council for dedicating the resources to fhis project and for their
leadership and support of staff. �
Respectfully submitted,
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Michael A. Reuwsaat
Town Manager .
Roy Cuaron
Finance Director
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TOWN OF MARANA
Town Council
Bobby Sutton, Jr., Mayor
Herbert Kai, Vice Mayor
�im Blake
Patti Comerford
Tim Escobedo
Eddie Honea
Carol McGorray
Term Expires
March 2007
March 2005
March 2007
March 2005
March 2005
March 2007
March 2005
►i�
TOWN OF MAR�►NA
Senior Staff
Mike Reuwsaat
�'own Manager
B�rhara Beriin
Planning Director
Jocelyn Bronson
Town Clerk
Anthony Casella
information Technology Director
Frank Cassidy
Town Attorney
Ro3� Cuaron
Finance Director
Dick Gear
Economic Development
Administrator
Jim DeGrood
Assistant to Town Manager
Brad DeSpain
Utilities Director
Harvey Gill
Actino Public Works Director
Jaret Barr :
Assistant i own Manager
Jack Holden
Building Official
Jane Howeli
Human Resources Director
Charies Mangum
Airport Manager
James Mazzocco
Development Services
Administrator
Mike Mencinger
Operations Division Manager
Ron Smith
Parks and Recreation Director
Joe Teta
Court Administrator
Richard Vidaurri
Police Chief
James West
Town Magistrafe
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Town of Marana
DEPAR'TMENTAL ORGATTIZATION
�o�roiioa�
Public
Mayor & Conncil
Magistrate
Town Manager
Executive Assistant to the
Town Manager
Administrative Manager
Town Attorney
Finance Director
Hnman Resources Director
Town Clerlc/Town Marshal
Conrt Administrator
Planning Director
Information Technology Director
Airport Director
Community & Economic Development .
Director
Police Chief
Utilifies Director .
Parks and Recreation Director
Building Official
Pablic Works Director/Town Engineer
Operations and Maintenance Director
Development Services Administrator
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HEINFELD, MEECH & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS
6740 N. Oracle Road, Suite 100
Tucson, Arizona 85704-5618
Gary Heinfeld, CPA, CGFM (520) 742
Nancy A. Meech, CPA, CGFM Fax (520) 742-2718
, Jennifer L. Shields, CPA www.heinfeldmeech.com
C Christopher Arvizu, CPA
INDEPENDENT AUDITORS' REPORT
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Honorable Mayor and Town Council
Town of Marana, Arizona
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund (General Fund, 2003 General Obligation, Capital Improvements,
Water and Airport Funds), and the aggregate remaining fund information of the Town of Marana,
Arizona (Town), as of and for the year ended June 30, 2004, which collectively comprise the Town's
basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the Town's management. Our responsibility is to express opinions on these
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 Gove�-nmentAuditing
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 sta.tement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
' respective financial position of the governmental activities, the business-type activities, each major
fund as listed above, and the aggregate remaining fund information of the Town of Marana, Arizona,
as of June 30, 2004, and the respective changes in financial position and cash flows, where
1 applicable, thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
' In accordance with Government Auditing Standards, we have also issued our report dated December
3, 2004, on our consideration of the Town of Marana's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
� agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is
� an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
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The management's discussion and analysis on pages 5 through 13 and budgetary comparison ,�
information on pages 63 and 64 are not a required part of the basic financial statements but are
supplementary information required by the Governmenta.l Accounting Standards Board. We have '
applied certain limited procedures, which consisted principally of inquiries of mana.gement regazding '
the methods of ineasurement and presentation of the required supplementary information. However,
we did not audit the information and express no opinion on it. '
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town's basic financial statements. The introductory section, combining
and individual fund financial statements and schedules, and supplemental information are presented
for purposes of additional analysis and aze not a required part of the basic financial statements. The
combining and`individual fund financial sta.tements and schedules have been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic fmancial statements taken as a whole. The
introductory section and supplemental information have not been subjected to the auditing
procedures applied in the audit of the basic financial statements and, accordingly, we express no
opinion on them.
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HEINFELD, MEECH & CO., P.C.
Certified Public Accountants
December 3, 2004
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MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
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TOWN OF l�ZARANA, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2004
As management of the Town of Marana, Arizona, (the Town) we offer readers of the Town's
financial statements this narrative overview and analysis of the financial activities of the Town for
the fiscal year ended June 30, 2004. We encourage readers to consider the information presented
here in conjunction with additional information that we have fiunished in our letter of transmittal,
which can be found in the introductory section of this report.
FINANCIAL HIGHLIGHTS
� • The Town's total net assets increased by approximately $17 million in fisca12004, of which
$16.7 (98.5%) million was attributed to governmental activities and $261,177 (1.5%)
attributable to business-type activities. The increase in governmental net assets is due
prunarily to increases in license fees, permits and sales tax revenues as well as decreasd
, aggregate spending:
� • General revenues from governmental activities accounted for $27.5 million in revenue, or
71.6% of all revenues from governmental activities. Program specific revenues in the form
of charges for services and grants and contributions accounted for $10.9 million, or 28.4%,
, of total governmental activities. The Town had $2.4 million of program revenues related to
business-type activities.
• The Town had approximately $21.7 million iri expenses related to governmental activities,
of which $10.9 million were offset by program specific charges for services or grants and
contributions. General revenues of $27.5 million were adequate to provide for the remaining
costs of these programs.
• Among major funds, the General Fund had $31.1 million in fisca12004 revenues, which
consisted primarily of sales tax and licenses, fees and permits. Collectively, these revenue
sources accounted for 85% of all general fund revenues, with sales tax comprising 64%.
General fund expenditures totaled $18.0 million, with police, development & planning
services and public works accounting for nearly 56% of total expenditures. The general fund
also transferred $7.8 million to other funds, primarilyto the Capital Improvements fund. The
net affect of all fisca12004 activities in the general fund was an increase of $5.3 million in
the fund balance. The increase may be attributable to higher than expected sales tax
collections combined with excess (to budget) licenses, fees & permits. Another contributing
factor was lower than expected expenditures within general government.
� • In fisca12004, the Town, through its municipal property corporation, issued $19.7 million in
revenue bonds to finance the design and construction of its new municipal complex. This
� activity was recorded in the 2003 General Obligation fund.
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TOWN OF MARANA, ARIZONA '
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A) �
YEAR ENDED NNE 30, 2004
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town's basic financial
statements. The Town's basic financial statements comprise three components: 1) govemment-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-wide financial statements. The govemment-wide financial statements are designed
to provide readers with a broad overview of the Town's finances, in a manner similar to a private-
sector business.
The statement of net assets presents information on all of the Town's assets and liabilities, with the '
difference between the two reported as net assets. Over time, increases or decreases in net assets
may serve as a useful indicator of whether the financial position of the Town is improving or '
deteriorating. ,
The statement of activities presents information showing how the Town's net assets changed during
the most recent fiscal yeaz. All changes in net assets aze reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused compensated absences).
The govemment-wide financial statements outline activities of the Town. The governmental
activities of the Town include general government, development and planning services, town
attorney, police, magistrate court, public works, parks and recreation, community development and
interest on long-term debt are principally supported by sales taxes, intergovemmental revenues,
license fees and permits. The business-type activities of the Town include water and airport
operations and are primarily supported through user fees and charges.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Town uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the
funds of the Town can be divided into two categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating the Town's near-term financing requirements.
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TOWN OF MARANA, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2004
OVERVIEW OF FINANCIAL STATEMENTS (Concl'd)
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
Town's near-term financing decision. Both the governmental fund. balance sheet and the
governmental fund sta.tement of revenues, expenditures, and changes in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
Information is presented separately in the govemmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances for the
General Fund, 2003 General Obligation Fund and the Capital Improvements Fund, all of
which are considered to be major funds. Data from the other governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these non-
major governmental funds is provided in the form of combining statements and schedules.
Proprietary funds. The Town maintains one type of proprietary fund. Enterprise funds are
' used to report the same functions presented as business-type activities in the govemment-
wide financial statements. The Town uses enteiprise funds to account for its water and
, airport services. Proprietary funds provide the same type of information as the government-
wide financial statements, only in more detail.
, Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements. The
notes to the financial statements can be found immediately following the basic financial statements.
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Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town's budget
process. The Town adopts an annual expenditure budget for all governmental funds. A schedule of
revenues, expenditures and changes in fund balance — budget and actual has been provided for the
General Fund as required supplementary information.
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TOWN OF MARANA, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2004
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets may serve over rime as a useful indicator of a government's financial position. In the case
of the Town, assets exceeded liabilities by $54.8 million as of June 30, 2004.
The majority of the Town's net assets (58%) reflect its investment in capital assets (land, building
and improvements, parks and infrastructure, vehicles and equipment and construction in progress)
net of accumulated depreciation and any related outstanding debt used to acquire or construct those
assets. The Town uses these capital assets to provide services to its citizens, consequently, these
assets are not available for future spending. Although the Town's invesiment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
The Town's financial position is the product of several financial transactions including the net
results of activities, the acquisition and payment of debt, the acquisition and disposal of capital
assets, and the depreciation of capital assets.
The following table presents a summary of the Town's net assets for the fiscal years ended June 30,
2004 and June 30, 2003.
Govemmental Activities Business-type Activities Total
2004 2003 2004 2003 2004 2003
Current and other assets $45,961,400 $29,750,529 $(1,675,397) $ 944,630' $44,286,003 $30,695,159
Capital assets, net 37,690,394 18,881,234 11,784,051 8,852,199 49,474,445 27,733,433
Total assets, net 83,651,794 48,631,763 10,108,654 9,796,829 93,760,448 58,428,592
Current liabilities
Long-term liabilities
Total liabilities
Net assets:
Invested in capital
assets, net of related
debt
Unrestricted
Total net assets
7,619,796 7,519,283 424,585 365,137 8,044,381 7,884,420
30,944,707 12,757,708 26,400 35,200 30,971,107 12,792,908
38,564,503 20,27G,991 450,985 400,337 39,015,488 20,677,328
20,043,584 10,657,727 11,748,851 8,816,999 31,792,435 19,474,726
25,043,707 17,697,045 (2,091,182) 579,493 22,952,525 18,276,538
$45,087,291 $28,354,772 $9,657,669 $9,396,492 $54,744,960 $37,751,264
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GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)
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' •$12.9 million in expenses for the new municipal complex.
•$5.2 million in expenses for transportation infrastructure capacity improvements
•$1.1 million in expenses for the design and construction of recreational amenities (parks)
, •$2.6 million in capital contributions from developers, primarily the deeding of public
infrastructure
TOWN OF MARANA, ARIZONA `
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED NNE 30, 2004
The following are current year transacrions that significantly impacted the Statement of Net Assets.
1 Changes in net assets. The Town's total revenues for the fiscal yeaz ended June 30, 2004, were
$40.8 million. The total cost of all programs and services was $23.8 million. The following table
presents a summary of the changes in net assets for the fiscal years ended June 30, 2004 and June 30,
� 2003.
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Revenues:
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
HURF/LTAF revenues
PAG funding
Sales taxes
State shared revenue
Other
Investment income (loss)
Totat revenues
Expenses:
General government
Development & planning
Town attorney
Police
Magistrate court
Public works
Parks & recrearion
Community development
Interest on long-term debt
Airport
Water
Total expenses
Excess before transfers
Transfers in/(out)
Increase in net assets
Govemmental Activities Business-type Activiries Total
2004 2003 2004 2003 2004 2003
$6,037,260 $ 3,583,929
533,616 484,860
4,322,803 5,318,646
2,471,079 1,544,51 G
1,418,022 1,975,263
20,05 8,983 17,335,5 88
2,938,350 2,614,943
198,988
602,442 ? (213,057)
38,382,555 32,843,676
5,844,848
3,464,643
207�_771
5,304,561
492,297
3,29_ 3:?8
2,078,989
274,861
688,538
5,934�483 _
3,068,014
353,703
4,642,258
459,223
8,307,761
2,632,076
316,058
7G1,561
21,650,036 26,475,137
16,732,519 6,368,539
(1,103,468)
$1,653,683 $1,227,832 $7,690,943 $4,811,761
533,616 484,860
728,994 1,934,340 5,051,797 7,252,98G
2,471,079 1,544,516
1,418,022 1,975,263
20,05 8,983 17,335,5 88
2,938,350 2,614,943
198,988
602,442 (213,057)
2,382,677 3,162,172 40,765,232 36,005,848
5,844,848
3,464,643
207,771
5,304,561
492,297
3,293,528
2,078,989
274,861
688,538
391,425 213,674 391,425
1,730,075 1,170,749 1,730,075
2,121,500 1,384,423 23,771,536
261,177 1,777,749 16,993,696
1, l 03,468
5,934,483
3,068,014
353,703
4,642,258
459,223
8,307,761
2,632,076
316,058
761,561
213,674
1,170,749
27,859,560
8,146,288
$16,732,519 $ 5 $2G1,177 $2,881,217 $16,993,696 $8,146,288
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' Page 9
TOWN OF MARA1vA, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2004
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont'd)
Governmental activities. Governmental activities increased the Town's net assets by
approximately $16.7 million. The key elements to changes in net assets are as follows:
• Increase in sales tax collections
• Increase in license, fees & permits
• Developer contributions tota.ling $2.6 million
• Decreased aggregate spending
The following table presents the cost of the eleven major Town functional acdvities. The table also
shows each function's net cost (total cost less charges for services generated by the activities and
intergovernmental aid provided for specific programs). The net cost shows the financial burden that
was placed on the State and Town's taxpayers by each of these functions.
Year Ended June 30, 2004
Total Net Expense/
Expenses (Revenue)
Governmental Activities
General government
Development & planning
Town attorney
Police
Magistrate court
Public works
Parks & recreation
Community development
Interest on long-term debt
Total
$ 5,844,848
3,464,643
207,771
5,304,561
492,297
3,293,528
2,078,989
274,861
688,538
$21,650,036
$4,048,106
716,952
137,428
3,562,467
329,735
(132,227)
1,501,710
(96,352)
688,538
$10,756,357
Year Ended June 30, 2003
Total Net Expense/
Expenses (Revenue)
$ 5,094,420
(2,942,697)
353,703
4,486,692
146,183
6,387,761
2,484,021
316,058
761,561
$ 17,087,702
Business-Type Activities
Airport
Water
T'otal
391,425
1,730,075
$ 2,121,500
(439,519)
178,342
$ (261,177)
$ 5,934,483
3,068,014
353,703
4,642,258
459,223
8,307,761
2,632,076
316,058
761,561
$26,475,137
213,674
1,170,749
$ 1,384,423
(1,790,015)
12,266
$ (1,777,749)
Page 10
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TOWN OF MARANA, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2004
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Concl'd)
• The cost of all governmental activities this year was $21.7 million. The decrease of $4.8
million from the prior year was due to lower spending within the Capital Improvements Plan.
• The cost of all business-type activities this year was $2.1 million. The increase of $737,077
was due to increased operating costs in both the airport and water funds.
• Federal and State governments and charges for services subsidized certain programs with
grants and contributions and other local revenues of $10.9 million.
• Net cost of governmental activities ($10.8 million) was financed by general revenues, which
are made up of primarily sales taxes ($20.1 million).
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS
As noted eaxlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds. The focus of the Town's governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Town's financing requirements. In particular, unreserved fund balance may serve as a
useful measure of the Town's net resources available for spending at the end of the fiscal year.
The financial performance of the Town as a whole is reflected in its govemmental funds. At June
30, 2004, the Town's governmental funds reported a combined fund balance of $39.5 million, with
virtually all of it unreserved and undesignated, hence, available for spending at the Town's
discretion.
The General Fund, which is the principal operating fund of the Town had a fund balance of $22.2
t million. The 2003 General Obligation Fund, which was established to finance the design and
construction of the new municipal complex, had a fund balance of nearly $18.5 million. The fund
� balance in the 2003 General Obligation Fund offsets the negative fund balance of $10.4 million in
the Capital Impro�ements Fund.
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Proprietary funds. Net assets of the Enterprise Fund at June 30, 2004 amounted to approximately
$9.7 million, with 53.2 % residing within the water activity fund and 46.8% within the airport fund.
' Page 11
TOWN OF MARANA, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (NID&A)
YEAR ENDED JUNE 30, 2004
BUDGETARY HIGHLIGHTS
The Town did not revise the annual operating budget during the yeaz.
A schedule showing the budget amounts compared to the Town's actual financial activity for the
General Fund is provided in this report as required supplementary information.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. As of June 30, 2004, the Town had invested $49.5 million in governmental and
business-type capital assets including buildings, facilities, vehicles, computers, equipment, and
infrastructure assets. Total depreciation expense for the year was $2.0 million, with $1.5 million
attributed to governmental activities and the balance to business-type activities.
The following schedule presents capital asset balances net of depreciation for the fiscal years ended
June 30, 2004 and June 30, 2003.
Land
Water rights
Construction in progress
Improvements, including wells,
tanks, and pump station
Organization costs
Buildings and improvements
Assets under capital lease
Machinery, equipment and other
assets
Pazks and other infrastructure
Total
Governmental Activities
As of As of
June 30, 2004 June 30, 2003
$ 2,400,765 $2,400,765
16,579,824
2,939,550
429,107
2,446,842
3,136,421
429,107
2,493,167
12,847,981
$37,690,394
2,019,935
8,448,164
$18,881,234
Business-type Activities
As of As of
7une 30, 2004 June 30, 2003
$221,810 $221,810
543,696 433,696
7,338 1,503,716
10,891,038
26,367
93,802
6,587,841
30,422
75,714
$11,784,051 $8,853,199
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TOWN OF MARANA, ARIZONA
MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2004
CAPITAL ASSETS AND DEBT ADMINISTRATION (Concl'd)
Debt Administration. At year-end, the Town had $32.7 million in long-term obligarions
outstanding with $1.8 million due within one year. The following table presents a summary of the
Town's outstanding bonded debt for the fiscal years ended June 30, 2004 and June 30, 2003.
Governmental
Activities
' Revenue bonds
Compensated absences
Caprtal lease payable
, Notes payable
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2004 2003
$32,110,000 $13,780,000
462,423 430,452
154,005 352,838
Business-type
Activities
2004 2003
$ $
35,200 44,000
$32,726,428 $14,563,290 $35,200 $44,000
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
Many factors were considered by Mayor, Council and staff during the development of the fiscal year
2003-04 budget. The primary factors were the Town's sales tax and building & development fees.
These key revenue sources were again pivotal in the adoption of the fiscal year 2005 budget. No new
programs were added to the 2005 fiscal budget.
CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a
general overview of the Town's finances and to demonstrate the Town's accountability for the
resources it receives. If you have questions about this report or need additional information, conta.ct
the Finance Department, Town of Marana, Arizona at 13251 North Lon Adams Road, Marana, AZ
85653.
' Page 13
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BASIC FINANCIAL STATEMENTS
' Page 15
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
, Page 17
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ASSETS �
Current assets:
Cash/pooled investments
Investments
Tax receivables
Other receivables
Prepaid items
Intemal balances
Total current assets
Noncurrent assets:
Restricted cash/investments
Capital assets not depreciated
Capital assets(net of depreciation)
Defened bond issuance costs
Deferred bond discount
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilites
Deferred revenue
Current portion, note payable
Current portion, revenue bonds
Current portion, capital leases
Current portion, compensated absences
Total current liabilities
Noncurrent liabilities:
Note payable
Revenue bonds
Compensated absences
Total non-current liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total net assets
TOWN OF MARANA, ARIZONA
STATEMENT OF NET ASSETS
JUNE 30, 2004
Governmental Business-type
Activities Activities Total
$ 23,246,128 $ $ 23,246,128
586,362 586,362
1,970,743 1,970,743
2,908,132 188,711 3,096,843
90,000 90,000
1,864,108 (1�,864,108)
30,665,473 (1,675,397) 28,990,076
14,679,900 14,679,900
18,980,589 772,844 19,753,433
18,709,805 11,011,207 29,721,012
505 505,170
110,857 110,857
52,986,321 11,784,451 64,770,372
83,651,794 10,108,654 93,760,448
5,359,126 415,785 5,774,911
478,950 478,950
8,800 8,800
1,425,000 1,425,000
154,005 154,005
202,715 202,715
7,619,796 424,585 8,044,381
26,400 26,400
30,685,000 30,685,000
259,707 259,707
30,944,707 26,400 30,971,107
38,564,503 450,985 39,015,488
20,043,584 11,748,851 31,792,435
25,043,707 (2,091,182) 22,952,525
$ 45,087,291 $ 9,657,669 $ 54,744,960
The notes to the financial statements are an integral part of this statemen�
' Page 19
TOWN OF MARANA, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JIJNE 30, 2004
Functions/Programs Expenses
Primary Government
Governmental activities:
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
Net (Expense)
Revenue
and Changes
in Net Assets
Governmental
Activities
General government $ 5,844,848 $ 1,796,742 $ � $ $ (4,048,106)
Development & planning services 3,464,643 1,049,888 1,697,803 (716,952)
Town attomey 207,771 70,343 (137,428)
Police 5,304,561 1,579,691 162,403 (3,562,467)
Magistrate court 492,297 162,562 (329,735)
Public works 3,293,528 800,755 2,625,000 132,227
Parks & recreation 2,078,989 577,279 (1,501,710)
Community development 274,861 371,213 96,352
Interest on long-term debt 688,538 (688,538)
Total governmental activities 21,650,036 6,037,260 533,616 4,322,803 (10,756,357)
Business-type activities:
Anport
Water
Total business-tyge acrivities
Total primary government
General revenues:
HURF/LTAF Revenues
PAG Funding
Taxes:
Sales taxes
State shared revenues
Investment income
Total general revenues
Changes in net assets
Net assets, beginning of year
Net assets, end of year
The notes to the financial statements are an integral part of this statement.
Page 20
391,425 101,950 728,994
1,730,075 1,551,733
2,121,500 1,653,683 728,994
$ 23,771,536 $ 7,690,943 $ 533,616 $ 5,051,797 (10,756,357)
2,471,079
1,418,022
20,058,983
2,938,350
602,442
27,488,876
16,732,519
28,354,772
$ 45,087,291
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and Changes in Net Assets
' Business-type
Activities Totals
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$ $ (4,048,106)
, (716,952)
(137,428)
(3,562,467)
(329,735)
� 132,227
(1,501,710)
96,352
' (688,538)
(10,756,357)
' 439,519 439,519
(178,342) (178,342)
, 261,177 261,177
261,177 (10,495,180)
, 2,471,079
, 1,418,022
20,058,983
2,938,350
� 602,442
27,488,876
� . 261,177 16,993,696
9,396,492 37,751,264
' $ 9,657,669 $ 54,744,960
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FUND FINANCIAL STATEMENTS
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TOWN OF MARANA, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JiJNE 30, 2004
ASSETS
Cash/pooled investments
Investments
Tax receivables
Other receivables
Prepaid items
Due from other funds
Restricted cash/investments
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilites
Due to other funds
Deferred revenue
Total liabilities
Fund balances (deficits):
Reserved for prepaid items
Unreserved:
Undesignated
Unreserved reported in:
Capital projects funds
Special revenue funds
Debt service funds
Total fund balances
Total liabilities and fund balances
2003 General Capital
General Fund Obligation Improvements
$ 23,219,197 $
585,380
1,970,743
46,476
90,000
$
1,369,949
13,547,209 5,688,845 6,132,432
12,787,032
$ 39,459,005 $ 18,475,877 $ 7,502,381
$ 948,196 $
15,842,528
478,950
17,269,674
$ 4,353,230
13,575,879
17,929,109
90,000
22,099,331 18,4'75,877
(10,426,728)
22,189,331 18,475,877 (10,426,728)
$ 39,459,005 $ 18,475,877 $ 7,502,381
The notes to the financial statements are an integral part of this statement.
Page 24
Non-Major Total
Govemmental Governmental
Funds Funds
$ 26,931 $ 23,246,128
982 586,362
1,970,743
1,491,707 2,908,132
90,000
8,587,527 33,956,013
1,892,868 14,679,900
$ 12,000,015 $ 77,437,278
$ 57,700 $ 5,359,126
2,673,498 32,091,905
478,950
2,731,198 37,929,981
90,000
30,148,480
7,015,490 7,015,490
1,531,147 1,531,147
722,180 722,180
9,268,817 39,507,297
$ 12,000,015 $ 77,437,278
Page 25
TOWN OF MARANA, ARIZONA
RECONCILIATION OF THE BALANCE SIiEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JIJNE 30, 2004
Total Governmental Fund balances
Amounts reported for governmental activities in the Statement of Net
Assets are different because:
Capital assets used in governmental activities aze not financial
resources and therefore are not reported in the funds:
Governmental capital assets
Less accumulated depreciation
Long-term liabilities are not due and payable in the current
period and therefore are not reported in the funds:
Compensated absences
Revenue bonds payable
Capital leases
Deferred bond issuance costs
Deferred bond discount
Net Assets of Governmental Activities
$ 44,403,666
(6,713,272)
$
39,507,297
37,690,394
(462,422)
(32,110,000)
(154,005)
505,170
110,857 (32,110,400)
$ 45,087,291
Page 27 The notes to the financial statements are an integral part of this statement.
TOWN OF MARANA, ARIZONA
S'��I►TEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JIJNE 30, 2004
Revenues:
Sales taxes
Other agencies
Licenses, fees & permits
Fines, farfeitures, & penz�ties
Current use charges
Other
Lease income
Investrnent income
Total revenaes
Expenditures:
Current -
General government
Development & planning services
Town attomey
Police
Magistrate court
Public works
Parks & recreation
Community development
Capital outiay
Debt service -
Bond issuance costs
Principal retirement
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfers in
Transfers out
Face value of bonds issued
Discount on issuance of bonds
Total other financing sources (uses)
Changes in fund balances
Fund balances (deficits), beginning of year
Fund balances (deficits), end of year
2003 General Capital
General Fund Obligation Improyements
$ 20,058,983 $ $
2,938,350 1,418,022
6,264,206
365,435
115,625
547,531
442,266
403,750 136,761
31,136,146 136,761 1,418,022
5,307,044
3,101,058
207,771
4,665,939
480,160
2,365,193
1,705,112
18,807,727
505,170
198,833
11,818
18,042,928 505,170 18,807,727
13,093,218 (368,409) (17,389,705)
8,403,842
(7,771,380) (744,857) (1,440,636)
19,700,000
(110,857)
(7,771,380) 18,844,286 6,963,206
5,321,838 18,475,877 (10,426,499)
16,867,493 �229)
$ 22,189,331 $ 18,475,877 $ (10,426,728)
The notes to the financial statements are an integral part of this statement.
Page 28
Non-Major Total
Govemmental Governmental
Funds Funds
$ $ 20,058,983
2,833,114 7,189,486
6,264,206
365,435
115,625
171,581 719,112
442,266
61,931 602,442
3,066,626 35,757,555
5,307,044
3,101,058
207,771
198,823 4,864,762
480,160
2,365,193
1,705,112
274,861 274,861
18,807,727
505,170
1,370,000 1,568,833
676,720 688,538
2,520,404 39,876,229
546,222 (4,118,674)
3,807,579 12,211,421
(2,254,548) (12,211,421)
19,700,000
(110,857)
1,553,031 19,589,143
2,099,253 15,470,469
7,169,564 24,036,828
$ 9,268,817 $ 39,507,297
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TOWN OF MARANA, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JiJNE 30, 2004
Net Changes in Fund Balances - Total Governmental Funds
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlays as expenditures.
However, in the statement of acrivities, the cost of these assets
is allocated over their estimated useful lives as depreciation expense.
Expenditures for capital assets
Less current year accumulated depreciation
Capital assets contributed by developers to the Town are not recorded in
the governmental funds as they do not provide current financial resources
but are recognized in tha Statement of Activites as program revenues.
Compensated absences expenses reported in the Statement of Activities
do not require the use of cunent financial resources and therefore are not
reported as expenditures in govemmental funds.
Government funds report issuance of bonds as inflows of resources.
However, in the statement of activities, the net effect of the issuance
of bonds is not reported.
Repayment of debt principal are expenditures in the governmental
funds, but the repayment reduces long-term liabiliries in the Statement
of Net Assets.
Change in Net Assets in Governmental Activities
$ 17,708,978
(1,524,818)
$ 15,470,469
16,184,160
2,625,000
(31,970)
(19,083,973)
1,568,833
$ 16,732,519
' Page 31 The notes to the financial statements are an integral part of this statement.
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ASSETS
Current assets:
Other receivables
Due from other funds
Total current assets
Noncurrent assets:
Capital assets not depreciated
Capital assets(net of depreciation)
Total noncurrent assets
Total assets
TOWN OF MARANA, ARIZONA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2004
Ente�rise Funds
Water Auport Total
$ 164,441 $ 24,270 $ 188,711
1,134,245 628,269 1,762,514
1,298,686 652,539 1,951,225
565,754 207,090 772,844
3,986,100 7,025,107 11,011,207
4,551,854 7,232,197 11,784,051
5,850,540 7,884,736 13,735,276
LIABILITIES
G�rrent liabilities:
Accounts payable and accmed liabilites 404,769 11,016 415,785
Due to other funds 274,779 3,351,843 3,626,622
Current portion, note payable 8,800 8,800
Total current liabilities 688,348 3,362,859 4,051,207
Noncurrent liabilities:
Note payable
Total non-current liabilities
Total liabilities
26,400 26,400
26,400 26,400
714,748 3,362,859 4,077,607
NET ASSETS
Invested in capital assets, net of related debt 4,516,654 7,232,197 11,748,851
Unrestricted 619,138 (2,710,320) (2,091,182)
Total net assets $ 5,135,792 $ 4,521,877 $ 9,657,669
The notes to the financial statements are an integral part of this statemen�
Page 32
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STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2004
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Operating revenues:
G�urent use charges
Other
Total operating revenues
Operating egpenses:
Personnel costs
Contractual services
Commodities
Other
Depreciation
Total operating ezpenses
Operating loss
Capital contributions
Changes in net assets
Total net assets, beginning of year
Total net assets, end of year
Enterprise Funds
Water Airqort Total
$ 1,526,507 $ 101,950 $ 1,628,457
25,226 25,226
1,551,733 101,950 1,653,683
421,435 84,107 505,542
915,531 34,191 949,722
71,237 58,829 130,066
25,307 11,325 36,632
296,565 202,973 499,538
1,730,075 391,425 2,121,500
(178,342) (289,475) (467,817)
728,994 728,994
(178,342) 439,519 261,177
5,314,134 4,082,358 9,396,492
$ 5,135,792 $ 4,521,877 $ 9,657,669
The notes to the financial statements are an integral part of this statemen�
Page 33
TOWN OF MARANA, ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2004
Increase In Cash and Cash Equivalents
Cash flows from operaring activities.
Cash received from customers
Cash payments m suppliers for goods and services
Cash payments to e�nployees for services
Net cash provided by operating activities
Cash flows from noncapital and related financing activiries:
Interfund borrowing
Net cash provided by (used for) noncapital finaacing activities
Cash flows from capital and related financing activities:
Principal paid on note payable
Acquisition and construction of capital assets
Net cash used for capital and
related financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents, July 1, 2003
Cash and cash equivalents, June 30, 2004
Reconciliation of OperatinQ Loss to
Net Cash Provided bv Oaerating Activities
Operating loss
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Depreciation
Change in assets and liabilitiex
(Increase) Decrease in accounts receivable
Increase in accounts payable
Total adjustments
Net cash provided by operating activities
Enterprise Funds
Water Airport Totals
$ 1,477,336. $ 249,537 $ 1,726,873
(955,350) (]01,622) (1,056,972)
(421,435) (84,107) (505,542)
100,551 63,808 164,359
(13,175) 2,560,012 2,546,837
(13,175) 2,560,012 2,546,837
(8,800) (8,800)
(78,576) (2,623,820) (2,702,396)
(87,376) (2,623,820) (2,711,196)
$ - $ - $ -
$ (178,342) $ (289,475) $ (467,817)
296,565 202,973 .499,538
(74,397) 147,587 73,190
56,725 2,723 59,448
278,893 353,283 632,176
$ 100,551 $ 63,808 $ 164,359
The notes to the fiaancial statements are an integral part of this statement.
Page 34
'
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JLTNE 30, 2004
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. General Statement
The Town of Marana, Arizona (the Town) was incorporated on March 21, 1977, under the
provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town
operates unde� a council-mayor form of government. All funds and entities related to the
Town that are controlled by the Mayor and Council are included in the annual financial
report. Control is determined on the basis of budget adoption, taxing authority, and the
ability to significantly influence operations and accounta.bility for fiscal matters. The Town
provides a full range of services including general government, development and planning,
legal, public safety, public works, and parks and recreation services. The financial
statements of the Town have been prepared in conformity with accounting principles
generally accepted in the United States of America as applied to governments. The
Governmental Accounting Standards Board (GASB) is the accepted standard-setting body
for establishing government accounting and financial reporting principles.
The more significant accounting policies of the Town are described below.
� B. Reporting Entity
In accordance with generally accepted accounting principles, these financial statements
� present the Town and its only component unit, the Town of Marana Municipal Property
Corporation (MMPC). The MMPC is blended with the Town in these financial statements
because the 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 capital assets used by the water
fund. In addition, MMPC only provides services to the Town. The MMPC has a June 30
year-end and is included in the 2003 General Obligation, 2000 General Obligation and 1997
� General Obligation Capital Projects and Debt Service Funds. Separate financial statements
of the MMPC are not prepared on a stand-alone basis.
C. Government-Wide and Fund Financial Statements
� The government-wide financial statements (i.e. the statement of net assets and the statement
of activities) present financial information about the Town as a whole. The reported
information includes all of the activities of the Town and its component unit. For the most
� part, the effect of internal activity has been removed from these statements. These statements
axe to distinguish between the governmental and business-type activities of the Town.
Governmental activities normally are supported by taxes and intergovernmental revenues,
1 and are reported separately from business-type activities, which rely to a significant extent on
fees and charges for support.
'
� Page 35
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
The statement of activities demonstrate the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are
clearly id�ntifiable with a specific function or segment. Program revenues include 1) charges
to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes, investment income, and other items not included among program revenues
are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds.
Major individual government funds are reported as separate columns in the fund financial
statements.
D. Measnrement Focus, Basis of Accounting, and Financial Statement Presentation
Government-Wide Financial Statements — The government-wide financial statements are
reported using the economic resources measurement focus and the accrual basis of
accounting, as are the proprietary fund financial statements. Revenues are recorded when
earned, including unbilled water services which are accrued, and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Grants and similar items
aze recognized as revenue as soon all eligibility requirements imposed by the grantor or
provider have been met. As a general rule the effect of internal activity has been eliminated
from the government-wide fmancial statements, the exception is any internal activity
between governmental and business-type activities, such as internal balances or transfers.
Fund Financial Statements - Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible witivin the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the Town considers
revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures are recorded when a liability is incuned, as under accrual accounting.
Exceptions to this general rule include debt service expenditures and accrued compensated
absences, which are recorded only when payment is due.
Page 36
C
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
� Sales taxes, franchise taxes, licenses and permits, charges for services, and investment
income associated with the current fiscal period are all considered to be susceptible to accrual
' and so have been recognized as revenues of the current fiscal period. Grants and similar
awards are recognized as revenue as soon as all eligibility requirements imposed by the
grantor or provider have been met. Miscellaneous revenue is not � susceptible to accrual
� because generally they axe not measurable until received in cash. Grants and similar awards
, are recognized as revenue as soon as all eligibility requirements imposed by the grantor or
provider have been met. Deferred revenue also arise when resources are received by the
� Town before it has legal claim to them, as when grant monies are received prior to meeting
, all eligibility requirements imposed by the provider. Receivables that will not be collected
within the available period have also been reported as deferred revenue on the governmental
� fund fxnancial statements.
The Town reports the following major governmental funds:
General Fund — This fund is the general operating fund of the Town. It is used to account
for all financial resources, except those required to be accounted for in another fund.
2003 General Obligation — This fund accounts for the proceeds from the sale of the 2003
general obligation bonds which are used for authorized capital improvements.
Capital Improvements — This fund accounts for the purchase of construction of major
capital facilities which are not funded by general obligation bonds.
The Town reports the following major proprietary funds:
Water Fund — This fund is used to account for the financing and operation of the Water
Utility.
Airport Fund — This fund is used to account for the financing and operation of the Marana
Airport.
Private-sector standards of accounting and financial reporting issued prior to December 1,
1989, generally are followed in both the government-wide and proprietary fund financial
statements to the extent that those standards do not conflict with or contradict guidance of the
Governmental Accounting Standards Board. Governments also have the option of following
subsequent private-sector guidance for their business-type activities and enterprise funds,
subject to this same limitation. The Town has elected not to follow subsequent private-sector
guidance.
,
' Page 37
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 1- SUN[MARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
Proprietary funds distinguish operaring revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the Town's enterprise funds are user fees and charges to
customers for water and airport services. Operating expenses for these funds include the cost
of sales and services, administrative expenses, and depreciation. All revenues and expenses
not meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Town's policy
to use restricted resources first, then unrestricted resources as they are needed.
The focus of govemmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column. Non-major funds are
aggregated and presented in a single column.
E. Fund Equity
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that aze not available for expenditures or are legally restricted by outside parties for
use for a specific purpose. Designations of fund balance represent tentative management
plans that are subject to change.
F. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles accepted in the United States of America requires management to make estimates
and assumptions. This will affect 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 expenses during the reporting �eriod. Actual results could differ
from these estimates.
G. Cash and Cash Equivalents
For the purpose of the statement of cash flows, the Town considers all highly liquid
inveshnents (including the funds' participation in the investment pool account, and
appropriate restricted assets) to be cash equivalents. Individua.l fund investments with a
maturity of 3 months or less when purchased are considered as cash equivalents.
�
Page 38
C
'
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
NNE 30, 2004
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
H. Investments
' A.R.S. authorize the Town to invest public monies in the Sta.te Treasurer's local government
investment pool, interest-bearing savings accounts, certificates of deposit, and repurchase
agreements in eligible depositories; bonds or other obligations of the U.S. government that
, are guaranteed as to principal and interest by the U.S. government; and bonds of the State of
Arizona counties, cities, towns, school districts, and special districts as specified by statute.
The State Board of Deposit provides oversight for the State Treasurer's pool, and the Local
Government Investment Pool Advisory Committee provides consultation and advice to the
Treasurer. The fair value of a participant's position in the pool approximates the value of
that participant's pool shares.
Nonparticipating interest-earning investment contracts are stated at cost. Money market
investments and participating interest contracts with a remaining maturity of one year or less
at time of purchase are stated at amortized cost. All investments are stated at fair value.
I. 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 aze restricted for payment of interest and trustee fees associated with the bond issues,
retirement of principal balances, and purchasing capital 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 expenses that will enhance the Town's ability to
conduct police investigations.
J. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements.
Prepaid items are recorded as expenses when consumed in the government-wide financial
statements. Prepaid items are recorded as expenditures when purchased in the fund financial
stater�ents and are offset by a reserve of fund balance.
K. Receivables and Payables
� Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds"
' (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-
current portion of interfund loans). All trade and other receivables are shown net of an
allowance for uneollectibles.
' Page 39
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
NNE 30, 2004
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
L. Interfund Activity
Flows of cash from one fund to another without a requirement for repayment aze reported as
interfund transfers. Interfund transfers between governmental funds aze eliminated in the
Sta.tement of Activities. Interfund transfers in the fund statements are reported as other
financing sources/uses in governmental funds and after nonoperating revenues/expenses in
proprietary funds.
M. Capital Assets
Capital assets, which include property, plant, equipment, and "infrastructure" assets (i.e.
roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting
systems), are reported in the applicable governmental or business-type activities columns in
the government-wide financial statements. Capita.l assets are defined by the Town as assets
with an initial, individual cost of $5,000 or more and an estimated useful life of more than
one yeaz. Such assets aze recorded at historical cost or estimated historical cost if purchased
or constructed. Donated capital assets are valued at estimated fair value on the date donated.
General government infrastructure capital assets include only those assets acquired or
constructed since July 1, 2002.
The cost of normal maintenance and repairs that do not add to the value of the asset or
materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Depreciation is provided over the estimated useful lives of such assets using the straight-line
method. These estimated useful lives are as follows.
Years
Buildings 40
Building improvements 10-15
Pump stations, distribution systems,
equipment and improvements 20-30
Public domain infrastructure 20
Organization costs 5-40
Machinery, equipment, and assets
under capital lease 4-10
'
,
,
Page 40 ,
�
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
N. Long-term Obligations
' In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable business-type activities and proprietary fund type statement of net assets. Bond
� related charges and credits, such as premium discounts and issuance costs, are deferred and
i
amortized over the life of the bonds using the straight-line method.
� In the fund financial sta.tements, governmental fund types recognize bond premiums and
, discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are
, reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from. the actual debt proceeds
' received, are reported as debt service expenditures.
O. Capitalized 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. Capitalized leases are accounted for by capitalizing the asset acquired and
recording the lease obligation as a liability.
P. Compensated Absences
The Town's employee vacation and sick leave policies generally provide for granting
vacation and sick leave with pay. Vacation leave vests with the employee as it is earned.
The current and long-term liabilities for accumulated vacation, including related benefits, are
reported on the government-wide financial statements. A liability for these amounts is
reported in governmental funds only if they have matured, for example, as a result of
employee leave, resignations, and retirements.
Sick leave benefits provided for ordinary sick pay are not vested with the employees.
Q. Transactions Between Funds
Transactions that would be treated as revenue or expenses if they involved organizations
external to the governmental unit are accounted for as revenue or expenses in the funds
involved. Transactions which constitute reimbursements of a fund for expenses initially
made from that fund which are properly applicable to another fund are recorded as expenses
in the reimbursing fund and as reductions of the expense in the fund that is reimbursed. �
�
' Page 41
TOWN OF MARANA, ARIZONA
NOTE5 TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 1- SIJiVIlVIARY OF SIG1vIFICANT ACCOUNTING POLICIES (Concl'd)
Nonrecurring or non-routine transfers of equity between funds are treated as interfund
transfers. Interfund transfers between governmental funds are eliminated in the Statement of
Activities. Interfund transfers in the fund statements are reported as other financing
sources/uses in govemmental funds and after nonoperating revenues/expenses in proprietary
funds. �
R Seized Property
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 — BUDGETARY 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 yeax for the following fiscal
year. As allowed, the vaters of the Town of Marana, on May 15, 2001, approved an
alternative expenditure limitation - home rule option to be applicable to the Town. This
alternative expenditure limitation is free from any ties to the state imposed limitations and is
in effect for four consecutive years beginning with the fiscal year ended June 30, 2002. This
limitation provides for the Town to allow the Mayor and Council to adopt an annual
expenditure limitation each year with no expenditures held to be excludable. Therefore, the
annual expenditure limitation equals the adopted budget.
The Town establishes its fiscal year as the twelve-month period beginning July 1. The
departments submit to the Town manager a budget of estimated expenditures for the ensuing
fiscal year. The Town manager and each department head meet to discuss mutually
acceptable changes for the estimated expenditures for that department after which the Town
manager subsequently submits a budget of estimated expenditures and revenues to the Town
Couricil.
Upon receipt of the budget estimates, the Town Council will hold a public meeting to obtain
taxpayer comments. Concurrently, a copy of the budget estimates is published in a local
newspaper. The Town Council is prevented from legally enacting the budget through
passage of a resolution until 15 days have passed after the date of the public meeting. Prior
to July 1, the budget is legally enacted.
Page 42
�
'
TOWN OF NZARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 2 — BUDGETARY CONTROL (Concl'd)
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.
NOTE 3- CASH AND INVESTMENTS
The Town maintains a cash and investment pool that is available for use by all funds. Pooled
' cash and investments axe stated at fair value. Restricted cash and investments axe amounts
held separately by trustees and amounts segregated due to their source and future intent.
A. Deaosits
At year end, the bank value of the Town's bank demand accounts were $991,401 and the
book balances were $589,248. The difference of $402,153 represents deposits in transit and
outstanding checks at June 30, 2004. $100,000 of the total bank balance was covered by
federal depository insurance and the remaining balance of $891,401 of the total bank balance
was covered by collateral held by the Town's custodial bank in the Town's name.
At year end, the Town owned a nonnegotiable certificate of deposit with an original maturity
of more than 3 months. This certificate of deposit has a bank balance of $585,380 at June 30,
2004, 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, totaled
$1,065,589.
B. Investments
The Town's investments as of June 30, 2004 are:
Fair Value
State Treasurer's Local Government Investment Pool $21,591,192
� _ Money Market Funds 1,065,589
Total Investments $22,656,781
'
' Page 43
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 3— CASH AND INVESTMENTS (Concl'd)
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 subject to categorization as they are not evidenced by securities that exist in
physical or book entry form.
A reconciliation of Cash and investments as reported in the Town's individual major funds
and non-major governmental funds consist of the following.
Cash/Pooled Investments
Investments
Restricted assets: Cash/Investments
Total
Cash
Certificate of Deposit
Restricted assets: Cash
Investments
Total
NOTE 4 — OTHER RECEIVABLES
2003 Non-Major
General General Governmental
Fund Obligation Funds
$23,219,197 $ $ 26,931
585,380 982
12,787,032 1,892,868
$23,804,577 $12,787,032 $1,920,781
$23,246,128
585,380
14,679,900
982
$38,512,390
Receivables, net of allowance for uncollectibles, as of year end for the Town's individual
major funds and non-major governmental funds in the aggregate, are as follows.
Due from Federal government
Due from State government
Accounts Receivable
- Net Total Receivables
Capital
General Improvements
Fund Fund
$ $
1,369,949
Non-Major
Governmental
Funds
$ 115,572
1,376,135
46,476
$46,476 $1,369,949 $1,491,707
Page 44
'
�
'
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 5 - CAPITAL ASSETS
The following is a summary of the changes in capital assets for fiscal year ended June 30,
2004.
Governmental Activities
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Leasehold improvements
Assets under capital lease
Machinery, equipment, and other assets
Marana Paxk
Continental Neighborhood Park
Coyote Trails Park
Other infrastructure
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and imprpvements
Assets under capital lease
Machinery, equipment, and other assets
Parks and other infrastructure
Total accumulated depreciation
�
'
�
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Beginning
Balance
$ 2,400,765
2,446,842
4,847,607
3,366,821
464,157
536,385
5,888,766
1,502,909
2,748,504
917,415
3,797,124
19,222,081
(694,557)
(107,278)
(3,868,831)
(517,788)
(5,188,454)
Ending
Additions Deletions Balance
$
14,132,982
14,132,982
1,234,140
$ $ 2,400,765
16,579,824
18,980,589
7,981
10,388
4,948,487
6,200,996
(196,871)
(760,908)
(567,039)
(1,524,818)
3,366,821
464,157
536,385
7,122,906
1,502,909
2,756,485
927,803
8,745,611
25,423,077
(891,428)
(107,278)
(4,629,739)
(1,084,827)
(6,713,272)
14,033,627 4,676,178 18,709,805
$18,881,234 $18,809,160 $ $37,690,394
Construction in progress in the governmental activities capital assets is comprised of the
following.
Expended to Remaining
June 30, 2004 Commitments
Buildings and related improvements $16,579,824 $18,475,877
� Page 45
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 5 - CAPITAL ASSETS (Cont'd)
A summary of changes in capital assets for business-type activities is as follows.
Business-Type Activities
Capital assets, not being depreciated:
Land
Water rights
Construction in progress
Total capital assets, not being
depreciated
Capital assets being depreciated:
Improvements, including wells, tanks,
and pump station
Machinery, equipment, and other assets
Organization costs
Total capita.l assets being depreciated
Less accumulated depreciation and
amortization for:
Improvements
Machinery, equipment, and other assets
Organization costs
Total accumulated depreciation and
amortization
Total capital assets, being depreciated, net
Business-type activities capital assets, net
Beginning Ending
Balance Additions Deletions Balance
$ 221,810 $ $ $ 221,810
433,696 110,000 543,696
1,503,716 7,338 1,503,716 7,338
2,159,222 117,338 1,503,716 772,844
7,614,741 4,777,341 12,392,082
173,490 39,427 212,917
54,737 54,737
7,842,968 4,816,768 12,659,736
(1,026,900) (474,144)
(97,776) (21,339)
(24,315) 4,055
(1,501,044)
(119,115)
(28,370)
(1,148,991) 499,538 (1,648,529)
6,693,977 4,317,230 11,011,207
$ 8,853,199 $4,434,568 $1,503,716 $11,784,051
Page 46
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JiJNE 30, 2004
NOTE 5 - CAPITAL ASSETS (Concl'd)
Construction in progress in the business-type activities capital assets is comprised of the
following.
Expended to Remaining
June 30, 2004 Comniitments
Improvements
$7,388 $117,662
Depreciation expense was charged to functions/programs as follows.
Governmental Activities:
General Government
Development & planning services
Police
Magistrate court
Public works
Parks & recreation
$ 58,491
61,954
310,561
9,750
678,766
405,296
Total depreciation expense — governmental activities $1,524,818
Business-type Activities:
Water
Airport
296,565
202,973
Total depreciation expense — business-type activities $ 499,538
NOTE 6 - CAPITAL LEASES
The Town entered into a long-term capital lease in a prior year for the acquisition of
equipment for General Town purposes; this commitment is expected to be funded by the
Town's General Fund. Under this lease, the Town is required to make quarterly payments of
$52,288, which includes an effective annual interest rate of 3.7%. Following is a schedule of
future minimum lease payments under the capital lease as of June 30, 2004.
Page 47
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 6 - CAPITAL LEASES (Concl'd)
Year Ending June 30:
" 2005
Total minimum lease payments
Less: amount representing interest
Present value of minimum lease payments
NOTE 7 — LONG-TERM DEBT
A. Note Pavable
Govemmental
Activities
$156,863
156,863
2,858
$154,005
In a prior year, the Town's Water Fund was advanced funds under a zero-interest loan in the
amount of $88,000 for the purchase of capital assets for the water system, collatera.lized by
two storage tanks in the water system and requiring monthly payments of $733 over a ten
year term.
The following is a schedule by years of the debt service requirements for this note payable in
the water fund as of June 30, 2004.
Year Ending June 30:
2005
2006
2007
2008
Total minimum payments required
$ 8,800
8,800
8,800
8,800
$35,200
'
Page 48
�
�
�
TOWN OF 1VZARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 7 — LONG-TERM DEBT (Cont'd)
B. Revenue Bonds
The 2003 Series Revenue Bonds maturing on or after July 1, 2014, will be subject to
redemption, at the option of the Town of Marana Municipal Property Corpora.tion, acting at
the request of the Town, at a redemption price equal to the principal amount thereof plus
accrued interest on such principal to the date fixed for redemption, but without premium.
�
The 2000 Series Revenue Bonds are not callable. The 1997 Series Revenue Bonds are
callable as follows.
Redemption Dates
7/1/2008 and 1/1/2009
7/1/2009 and 1/1/2010
7/1/2010 and thereafter
1997 Series
Bonds
$799,106
785,380
795,325
708,760
404,260
1,833,430
1,722,370
1,201,813
Annual debt service requirements to maturity for these revenue bonds are as follows.
�
Year Ending June 30:
2005
2006
2007
2008
2009
2010-14
2015-19
2020-24
2025-29
, Total
Less amount representing
interest
Principal
�
Redemption Price
(as a percent of principal)
101.0%
� 100.5%
100.0%
2000 Series 2003 Series
Bonds Bonds Total
$1,236,313 $ 1,151,771 $ 3,187,190
1,240,801 1,633,678 3,659,859
1,241,950 1,380,678 3,417,953
1,239,931 1,377,903 3,326,594
1,235,076 1,372,153 3,011,489
1,843,126 6,894,190 10,570,746
6,891,463 8,613,833
6,883,454 8,085,267
6,204,000 6,204,000
8,250,444 8,037,197 33,789,290 50,076,931
(2,590,444) (1,287,197) (14,089,290) (17,966,931)
$5,660,000 $6,750,000 $19,700,000 $32,110,000
' Page 49
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
'
'
NOTE 7 — LONGTERM DEBT (Concl'd)
The following is a summary of changes in long-term debt activity for fiscal year ended June
30, 2004.
Beginning Ending Due Within
Balance Additions Reductions � Balance One Yeaz
Governmental activities:
Revenue Bonds
Compensated absences
Capital lease
Total
Business-type activities:
$13,780,000 $19,700,000 $(1,370,000) $32,110,000 $1,425,000
430,452 250,852 (218,882) 462,422 202,715
352,838 (198,833) 154,005 154,005
$14,563,290 $19,950,852 $ 1,787,715 $32,726,427 $1,781,720
Note payable $ 44,000 $ $ (8,800) $ 35,200 $ 8,800
NOTE 8- INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
At June 30, 2004, interfund balances were as follows.
Due to/from other funds:
General Fund
003 General
Obligation Fund
o apitalImprovements
� Fund
� ater Fund
A irport Fund
on-Major
Governmental Funds
otal
General
Fund
$
5,688,845
1,132,099
618,945
Due from
Capital Non-Major
Improvements Governmental Airport Water
Fund Funds Fund Fund
$13,437,538 $109,671 $ $
Total
$13,547,209 '�
2,515,134 3,351,843 265,455
2,146
9,324
5,688,845 ,�
6,132,432 I
1,134,245 �
628,269 ,
8,402,639 138,341 46,547 8,587,527
$15,842,528 $13,575,879 $2,673,498 $3,351,843 $274,779 $35,718,527
Interfund transfers were made by the Town during the fiscal year to ensure that sufficient
resources were available to cover expenditures in the applicable funds. The transfers from
the General Fund, 2003 General Obligation Fund and the non-major governmental funds
were made to provide for capital projects that were accounted for in the Capital
Improvements Fund.
Page 50
,�
�
�
'
�
,
�
�
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 8- INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS (Concl'd)
Interfund transfers:
eneral Fund
� � apital Improvements Fund
� 0 003 General Obligation Fund
�, on-Major Governmental Funds
otal
Transfer in
Capital Non-Maj4r
Improvements Governmental
Fund Funds Total
$5,728,037 $2,043,343 $ 7,771,380
1,440,636 1,440,636
24,991 719,866 744,857
1,210,178 1,044,370 2,254,548
$8,403,842 $3,807,579 $12,211,421
At June 30, 2004, several funds had negative cash balances in the pooled cash/investment
accounts. Negative cash on deposit was reduced by interfund borrowing with other funds.
All interfund balances are expected to be paid within one year.
A. Arizona Public Safetv Retirement Svstem
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS
All of the Town's full-time police officers are covered by the Marana Police Arizona Public
Safety Personnel Retirement System, which is an agent /multiple-employer administered by
the fund manager of the Arizona Public Safety Personnel Retirement System, defined benefit
public employee retirement system (PERS). Authority to establish and amend the benefit
provisions of this pension plan is established by Arizona State statute. The State of Arizona
Public Safety Personnel Retirement System issues a publicly available financial report that
includes financial statements and required supplemental information for the Marana
Marshal's plan. This report may be obtained by writing to the Arizona Public Safety
Personnel Retirement System 1020 E. Missouri Phoenix, Arizona 85014.
The pension plan provides pension benefits, defened allowances, death and disability
benefits and limited health insurance benefits. A member is eligible if he is employed in a
covered position prior to attaining age 50 years, for at least 20 hours a week for more than 6
months a year. A member may retire after reaching the age of 62 and completion of 15 years
service, or completion of 20 years service with the Town. Benefits vest after 10 years of
credi�ed 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 50% 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
Page 51
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Cont'd)
the Town. Police officers who retire with 20 years of credited service with the Town, plus
2% of average monthly compensation for each yeaz 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 perivd reduced at a rate of
4% a yeaz for each service yeaz below 20 years of service. The maximum monthly pension
payment cannot exceed 80% of the average monthly compensation.
Pension provisions include deferred allowances whereb� a police officer may terminate his
employment witli 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.
Pension provisions include disability and death benefits. Disabled officers aze 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 sernice,
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 80%
of the monthly payments, or 100% if duty related, the deceased active police officer would
have been paid for disability or, in the case of a retired police officer, 80% 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 yeaxs. The spouses' benefits terminate upon their
death. Each dependent child of a deceased police officer is entitled to one-ninth of the
monthly payments the deceased active police officer would have been paid for disability or,
in the case of a retired police officer, one-ninth of the retired officer's monthly pension
payments. When the dependent child reaches the age of 18 or 23, if the dependent is a full-
time student, the monthly payments will terminate.
'
,
Pension provisions include health insurance benefits, whereby the retired police officer or his !
surviving spouse can elect to be covered by a health insurance plan provided by the Town or
State of Arizona. The retired police officer or the 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.
�
Page 52 '
�
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Cont'd)
� 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
$2,781,239.
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, 2003. During 2003-04, the Town was required to contribute 7.95% of its
police officers' covered payroll to the plan.
The contribution requirements of plan members are established and maybe amended by
Arizona State statute. The Arizona Public Safety Personnel Retirement System's funding
policy provides for actuarially determined employer contributions at rates which will provide
assets sufficient to pay benefits when due. This funding policy/objective is stated in the
Arizona State statutes.
Total contributions made during fiscal year 2003-04 were $434,391, of which $231,076 was
made by the Town and $212,764 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, 2004, to determine the
standardized measure of the entry age actuarial accrued liability and these assumptions aze
summarized below.
• The present value of future pension payments is computed by using a discount rate of
� 8.75%. The discount rate is equal to the estimated long-term rate of return on current
and future investments of the pension plan.
•� Future pension payments reflect an assumption of 6.25% (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 3.0% per year, depending on age, attributable to
� seniority/merit.
, Page 53
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Cont'd)
The actuarial value of the assets was determined using techniques that smooth the effects of
short-term volatility in the market value of investments.
The standardized measure of the unfunded actuarial accrued liability as of June 30, 2004 is as
follows. �
Active members
Retired members and survivors
Drop members •
Former members with vested benefits
Total actuarial accrued liability
- Actuarial value of assets
Unfunded actuarial accrued liability
(1)
Actuarial
Valuation Value of
Date June 30 Assets
2002 $5,479,157
2003 5,555,162
2004 6,012,970
Trend Information
$3,274,201
1,902,619
350,258
92,654
5,619,732
6,012,970
$ (393,238)
SCHEDULE OF FUNDING PROGRESS
�2)
Entry Age
Actuarial
Accrued
Liabili
(AALI
$3,757,279
4,577,761
5,620,002
Fiscal Year Ended June 30,
2002
2003
2004
(3)
Percent
Funded
1/2
145.8%
121.4
107.0
Annual Pension
Cost (APC)
$244,971
159,961
231,076
(4)
Unfunded
AAL f21-(1)
$(1,721,878)
(977,401)
(392,968)
Percent
Contributed
100.0
100.0
100.0
(5)
Annual
Covered
Pavroll
2,508,348
2,607,622
2,963,538
(6)
Unfunded
AAL as a
Percentage of
Covered
Payroll
4/5
-%
-%
-%
Net Pension
Obligation
$-0-
-0-
-0-
No changes in actuarial assumptions or benefit provisions that would significantly affect the
valuation of the unfunded actuarial accrued liabilities occurred during fiscal year 2004.
Page 54
�
�
�
�
L
��
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 9- EMPLOYEE RETIREMENT SYSTEMS (Concl'd)
B. Towu of Marana Retirement Plan
' The Town has established a Money Purchase Plan and Trust known as the Town of Marana
Retirement Plan (the Plan) in the form of the International City Management Association
Retirement Corporation Prototype Money Purchase Plan and Trust. - The prototype plan is
� qualified under Section 401 of the Internal Revenue Code. The Plan is a defined contribution
plan that provides pension benefits for all full-time employees and permanent part-time
' employees, except for commissioned police personnel who are covered under the Arizona
� Public Safety Personnel Retirement System. In a defined contribution plan, benefits depend
solely on amounts contributed to the plan plus investment earnings. Employees are eligible
to participate from the date of employment. The Plan requires that the employee and the
� Town contribute an amount equal to 4% and 8%, respectively, 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) axe fully vested after five years
� of continuous service.
Town contributions for, and interest forfeited by, employees who leave employment before
five years of service are used to reduce the Town's current-period contribution requirement.
The Town's total payroll in fiscal year 2003-04 was approximately $9,355,053. The Town's
contributions were calculated using the earnings amount of approximately $6,573,814. For
fiscal 2003-04, the covered employees made the required 4% contribution, amounting to
$262,952, with the Town making a required smaller contribution due to the application of
forfeitures, amounting to $525,905 for a total of $788,857.
NOTE 10 - RISK MANAGEMENT
� The Town is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters. The Town's insurance
� protection is provided by the Arizona Municipal Risk Retention Pool, of which the Town is a
participating member. The limit for basis coverage is for $2,000,000 per occurrence on a
claims made purpose. Excess coverage is for an additional $13,000,000 per occurrence on a
� follow form, claims made basis.
The Arizona Municipal Risk Retention Pool is structured such that member premiums are
� basec� on an actuarial review that will provide adequate reserves to allow the pool to meet its
expected financial obligations. The pool has the authority to assess its members additional
premiums should reserves and annual premiums be insufficient to meet the pool's
1 obligations. For the fiscal years ended June 30, 2004, 2003, and 2002 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.
' Page 55
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 11 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Individual De�cit Fund Balances - At June 30, 2004, the following individual major and
non-major governmental funds reported deficits in fund balance.
�
�
Deficit �
Major Fund:
Capital Improvements $10,426,728 '
Non-Major Governmental Funds:
Community Development Block Grant 38,398
COPS Grant 19,835 �
HIDTA 8,291
Auto Theft 15,200
The deficits arose because of operations during the year. Additional revenues received and
interfund transfers in fiscal year 2004-OS are expected to eliminate the deficits.
Excess Exnenditures Over Bud�et - At June 30, 2004, the Town had expenditures in funds
that exceeded the budget, however this does not constitute a violation of any legal provisions.
NOTE 12 - COMMITMENTS AND CONTINGENCIES
The Town is subject to a number of lawsuits, investigations, and other claims (some of which
involve substantial amounts) that are incidental to the ordinary course of its operations,
including those related to wrongful death and personal injury matters. Although the Town
Attorney does not currently possess sufficient information to reasonably estimate the
amounts of the liabilities to be recorded upon the settlement of such claims and lawsuits,
some claims could be significant to the Town's operations. While the ultimate resolution of
such lawsuits, investigations, and claims cannot be determined at this time, in the opinion of
Town management, based on the advice of the Town Attorney, the resolution of these
matters will not have a material adverse effect on the Town's financial position.
NOTE 13 - 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, 2004 was $155,279 and is reflected in the Water Fund,
an Enterprise Fund.
�
Page 56 '
�
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�
�
�
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 13 - WATER CONTRACTS (Concl'd)
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 shaze of costs regardless of whether the Town has
accessed recharge water from CAP. The recharge expense under this contract for the year
ended June 30, 2004 was $23,999 and is reflected in the Water Fund, an Enterprise Fund.
NOTE 14 - LEASING ARRANGEMENTS
Airport
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 aviation fuel dispensed on the premises. The following is a schedule of future minimuxn
rentals receivable under these leases at June 30, 2004, not including any year beyond the
minimum of twenty years in the lease for the general fund and not including renewal options
for the leases for the Airport Authority.
Year Ending June 30:
2005
2006
2007
2008
2009
Thereafter
Total
General
Fund
$ 432,000
432,000
475,200
475,200
475,200
6,438,960
$8,728,560
Airport
$ 103,496
120,545
120,625
137,685
137,767
2,961,248
$3,581,366
Office Snace
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
2003 through September 2004. Two of these leases requires the Town to pay its share of real
estate ta�ces, 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 charges and
management fees by the landlord cannot increase more than 4.5% over the prior year. One
lease_ contains two five-year renewal options and a second lease contains one three-year
renewal option at a monthly base rent of $3,715, plus an annual adjustment of 3%.
Page 57
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 14 - LEASING ARRANGEMENTS (Cont'd)
Land — State of Arizona �
The Town has assigned and assumed a noncancelable long-term operating lease for 2,400 '
acres of land with the State of Arizona with an expiration of October 2099. This lease had an �
initial annual rent of $432,000 that requires 10% increases n the annual rent payments for ,
each succeeding five year period. In conjunction with the Town assuming the long-term
operating lease, a developer has signed a noncancelable agreement to reimburse the Town the �
annual rental payment for a minimum of twenty years. This noncancelable twenty year term
begins after the first twelve consecutive months generate more than $1,000,000 in resort '
sales tax to the Town from the development project known as "Dove Mountain". It is �
unknown when this event will occur, resulting in the start of the twenty year term: �
These leases provide for payments of minimum annual rentals as follows, excluding real
estate taxes, common area charges, management fees, and sales taxes.
Years Ending
June 30.
2005 $ 432,000
2006 432,000
2007 475,200
2008 475,200
2009 475,200
2010-14 2,518,560
2015-19 2,770,416
2020-24 3,047,458
2025-29 3,352,203
2030-34 3,687,424
2035-39 4,056,166
2040-44 4,461,783
2045-49 4,907,961
2050-54 5,398,757
2055-59 5,938,633
� 2060-64 6,532,496
2065-69 7,185,746
2070-74 7,904,320
2075-79 8,694,752
2080-84 9,564,227
2085-89 10,520,650
2090-94 11,572,715
2095-99 12,729,987
2100 2,642,073
Total $119,775,927
�
Minimum annual rentals above excludes annual rental under the remaining renewal options as of '
June 30, 2004. Rent expense under the above leases for fisca12003-04 aggregated $432,000.
Page 58 �
�
�
�
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
NOTE 15 - SUBSEQUENT EVENTS
On August 1, 2004, the Town, through the Town of Marana Municipal Property Corporation,
issued $8,675,000 in Municipal Facilities Revenue Bonds to finance the design and
construction of its new municipal complex. The bonds have a maturity of twenty years with
an interest rate of 3.0 percent to 5.0 percent.
�
�
� Page 59
�
�
�
�
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
� FUND BALANCES - BUDGET AND ACTUAL
(REQUIRED SUPPLEMENTARY INFORMATION)
�
�
' Page 61
�
TOWN OF MARANA, ARIZONA
� SCHEDULE OF REVENUES, EXPENDTTiTRE5 AND
CHANGES Il�' FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2004
'
� Revenues:
� Sales taxes
Other agencies
Licenses, fees & permits
� Fines, forfeitures, & penalties
Current use charges
Other
Lease income
� Investrnent income
�otal revenues
�
r
Ezpenditures:
Cturent- -
General government
Development & planning services
Town attorney
Police
Magistrate court
Public works
Parks & recreation
Debt service -
Principal retirement
Interest and fiscal charges
Total ezpenditures
Egcess (deficiency) of revenues over
ezpenditures
Budgeted Variance with
�o�� Final Budget
Positive
Original & Final Actual (NeQative)
$ 17,787,610 $ 20,058,983 $ 2,271,373
2,945,965 2,938,350 (7,615)
4,716,000 6,264,206 1,548,206
400,000 365,435 (34,565)
2,435,000 115,625 (2,319,375)
1,882,400 547,531 (1,334,869)
467,000 442,266 (24,734)
400,000 403,750 3,750
31,033,975 31,136,146 102,171
7,364,107 5,307,044 2,057,063
3,772,500 3,101,058 671,442
349,860 207,771 142,089
4,823,077 4,665,939 157,138
497,963 480,160 17,803
1,712,138 2,365,193 (653,055)
1,725,563 1,705,112 20,451
200,000 198,833 _ 1,167
12,000 11,818 1g2
20,457,208 18.042,928 2,414,280
10.576,767 13,093,218 2,516,451
Other fmancing sources (uses):
Transfrrs out (11,312,660) (7,771,380) 3.541,280
Total other financin; sources (uses) (11,312,660) (7,771,380) 3,541,280
�hange in fund balances
Fund balances, July 1, 2003
Fund balances, June 30, 2004
�
�
' Page 63
(735,893) 5,321,838 6,057,731
4,508,652 16,867,493 12,358,841
$ 3.772.759 $ 22,189,331 $' 18,416,572
See accompanying notes to this schedule.
1
TOWN OF 1VZARANA, ARIZONA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION �
JUNE 30, 2004
NOTE 1- BUDGETARY BASIS OF ACCOUNTING
Budgets are adopted on a basis consistent with accounting principles generally accepted in
the United States of America.
�
_ . �
�
'
Page 64 ,
�
�
�
�
OTHER MAJOR GOVERNMENTAL FUNDS
' SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
,
� Page 65
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
Cfi�NG�S RT FUND BALANCES - BUDGET AND ACTUAL - 2003 GENERAL OBLIGATION
YEAR ENDED JIJNE 30, 2004
Revenues:
Investment income
Total revenues
Expenditures:
Debt service -
Bond issuance costs
Total eapenditures
Escess (deficiency) of revenues over
expenditures
Budgeted Variance with
�o�� Final Budget
Positive
Ori�inal & Final Actual (Negative)
$ $ 136,761 $ 136,761
136,761 136,761
510,000 505,170 4,830
510,000 505,170 4,830
(510,000) (368,409) 141,591
Other financing sources (uses):
Transfers out (744,857) (744,857)
Face value ofbonds issued 21,190,000 19,700,000 (1,490,000)
Discount on issuance ofbonds (120,000) (110.857) 9,143
Total other financing sources (uses) 21,070,000 18,844,286 (2,225,714)
Change in fund balances
Fund balances, Juiy 1, 2003
Fund balances, .iune 30, 2004
20,560,000 18,475,877 (2,084,123)
$ 20,�60,000 $ 18,47�,877 $ (2,084,123)
Page 66
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDTTURES AND
eIIANGES IN FUND BALANCES - BUDGET AND ACTUAL - CAPITAL IlVIPROVEME!�TTS
YEAR ENDED JUNE 30, 2004
Revenues:
Other agencies
Total revenues
Egpenclitures:
Current -
Capital ouflay
Total expenditures
Ezcess (deficiency) of revenues over
egpenditures
Budgeted Variance with
Amounts Final Budget
Positive
Ori�inal & Final Actual (Ne�ative) ,
$ 5,457,000 $ 1,418,022 $ (4,038,978)
5,457,000 1,418,022 (4,038,978)
52,828,940 18,807,'727 34,021,213
52,828,940 18,807,727 34,021,213
(47,371,940) (17,389,705) 29,982,235
Other financina sources (uses):
Transfers in 10,502,680 8,403,842 (2,098,838)
Transfers out (1,440,63� (1,440,636)
Total other financing sources (uses) 10,502,680 6,963,206 (3,539,474)
Change in fund balances
Fund balances (deficits), Ju[y 1, 2003
Fund balances (deficits), June 30, 2004
(36,869,260) (10,426,499) 26,442,761
(229) (229)
$ (36,869,260) $ (10,426,728) $ 26,442,532
Page 67
�
'
�
�
NON-MAJOR GOVERNMENTAL FUNDS
�
'
�
, Page 69
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MATOR GOVERNMENTAL FUNDS - BY FUND TYPE
JiJNE 30, 2004
ASSETS
Cash/pooled investments
Investments
Other receivables
Due from other funds
Restricted cash/investments
Total assets
LIABII.ITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilites
Due to other funds
Total liabilities
Fund balances:
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
Total
Non-Major
2003 General Governmental
Special Revenue ObliQation Capital Proiects Funds
$ 26,931 $ $ $ 26,931
982 982
1,491,707 1,491,707
2,730,842 5,856,685 8,587,527
722,180 1,170,688 1,892,868
$ 4,249,480 $ 722,180 $ 7,028,355 $ 12,000,015
$ 57,700 $
2,660,633 _
2,718,333
$ $ 57,700
12,865 2,673,498
12,865 2,731,198
1,531,147 722,180 7,015,490 9,2b8,817
1,531,147 722,180 7,015,490 9,268,817
$ 4,249,480 $ 722,180 $ 7,028,355 $ 12,000,015
Page 71
TOWN OF MARANA, ARIZONA
COiVIBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
YEAR ENDED JUNE 30, 2004
Revenues:
Other agencies
Other
Investment income
Total revenues
Ezpenditures:
G�urent -
Police
Community development
Debt service -
Principal retirement
Interest and fiscal charges
Total egpenditures
Egcess (deficiency) of revenues over egpenditures
Other fmancing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, beginning of year
Fund balances, end of year
Svecial Revenue Debt Service Capital Proi�ts
$ 2,833,114 $ $
171,581
13,825 2,330 45,776
3,018,520 2,330 45,776
198,823
274,861
1,370,000
676,420 300
473,684 2,046,420 300
2,544,836 (2,044,090) 45,476
1,749,899 2,057,680
(1,210,178) (1,044,3'10)
(1,210,178) 1,749,899 1,013,310
1,334,658 (294,191) 1,058,786
196,489 1,016,371 5,956,704
$ 1,531,147 $ 722,180 $ 7,015,490
Page 72
'
�
'
Total
� Non-Major
Governmenta.l
Funds
� $ 2,833,114
171,581
, 61,931
3,066,626
198,823
274,861
1,370,000
676,720
2,520,404
546,222
3,807,579
(2,254,548)
1,553,031
2,099,253
7,169,564
$ 9,268,817
'
'
' Page 73
'
�
�
�
�
NON-MAJOR SPECIAL REVENUE FUNDS
Federal Grant Funds — includes the Community Development Block Grants, the HOME
Program, HIDTA, and MANTIS Grant. The separate funds have been established to account for
grant revenues and to provide compliance with Federal grant regulations.
Other Grant Funds — includes COPS Grant, JCEF Court fund, RICO, Auto Theft, Highway
User Revenue, Local Transportation, Fill The Gap and Local Technology — Courts Funds. These
funds are non-federal funds required by Arizona Statues to be used for police, public works, or
magistrate court expenditures.
�
�
' Page 75
'
TOWN OF MARANA, ARIZONA
�OARBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2004 .
Communiry
Development
Block Grant Home Pro�ram COPS Grant JCEF Court Fund
ASSETS
Cash/pooled invesUneats $ $ $ $
Other receivables 12,969 44,978
Due from other fuads 64,904 265,924 38,051
Total assets $ 77,873 $ 310,902 $ $ 38,051
LIABILITIES AND FIJND BALANCES
Lia.bilities:
Accounts payable and acerued liabilites $ 50,740 $ 6,960 $ $
Due to other funds 65,531 54,279 19,835
Total liabilities 116,271 61,239 19,835
Fund balances (deficits):
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund batances
(38,398) ?�9,663 (19,835) 38,051
(38,398) 249,663 (19,835) 38,051
$ 77,873 $ 31Q902 $ $ 38,051
Page 76
Highway User Local
RICO HIDTA MANTIS Auto Theft Revenue Transportation
$ 26,931 $ $ $ $ $
48,920 8,705 13,356 1,361,943
2,126,382 203,729
$ 26,931 $ 48,920 $ 8,705 $ 13,356 $ 3,488,325 : $ 203,729
$ $ $ $ $ $
57,211 4,068 28,556 2,227,424 203,729
57,211 4,068 28,556 2,227,424 203,'129
26,931 (8,291) 4,637 (15,200) 1,260,901
26,931 (8,291) 4,637 (15,200) 1,260,901
$ 26,931 $ 48,920 $ 8,705 $ 13,356 $ 3,488,325 $ 203,729
(Continued)
Page 77
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2004
(Concluded)
Local
Fill-the-Gap Technology Totals
ASSETS
Cash/pooled investments $ $ $ 26,931
Other receivables 836 1,491,707
Due from other funds 10,647 21,205 2,730,842
Total assets $ 11,483 $ 21,205 $ 4,249,480
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilites $ $ $ 57��00
Due to other funds 2,660,633
Total liabilities 2,718,333
Fund balances (deficits):
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
11,483 21,205 1,531,147
11,483 21,205 1,531,147
$ 11,483 $ 21,205 $ 4,249,480
Page 78
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHA.NGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2004
Revenues:
Other agencies
Other
Investment income
Total revenues
Eapenditures:
Ctiurent-
Police
Community development
Totsl egpenditures
Eacess (de5ciency) of revenues over espenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Page 80
Community
Development
Block Grant Home Program COPS Grant
$ 199,632 $
171,581 _
$
199,632 171,581
19,835
238,030 36,831
238,030 36,831 19,835
(38,398) 134,750 (19,835)
(38,398) 134,750 (19,835)
114,913
$ (38,398) $ 249,663 $ (19,835)
�
�
�
'
�
Highway User
JCEF Court Fund RICO HIDTA MANTIS Auto Theft Revenue
$ $ $ 48,920 $ 60,263 $ 50,951 $ 2,353,423
13,825
13,825 48,920 60,263 50,951 2,353,423
57,211 55,626 66,151
57,211 55,626 66,151
13,825 (8,291) 4,637 (15,200) 2,353,423
(1,092,522)
(1,092,522)
13,825 (8,291) 4,637 (15,200) 1,260,901
38,051 13,106
$ 38,051 $ 26,931 $ (8,291) $ 4,637 $ (15,200) $ 1,260,901
(Continued)
Page 81
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JiJNE 30, 2004
(Concluded)
Revenues:
Other agencies
Other
Investment income
Total revenues
Ezgenditures:
G�rrent -
Police
Community development
Total egpenditures
Eacess (deficiency) of revenues over ezpenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, begiuning of year
Fund balances (deficits), end of year
Local Local
Transuortation Fill-the-Gap Technology
$ 117,656 $ 2,269 $
117,656 2,269
117,656 2,269
(117,656)
(117,656)
2,269
9,214 21,205
$ $ 11,483 $ 21,205
Page 82
Totals
$ 2,833,114
171,581
13,825
3,018,520
198,823
274,861
473,684
2,544,836
(1,210,178)
(1,210,178)
1,334,658
196,489
$ 1,531,147
Page 83
TOWN OF MARANA, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2004
Revenues:
Other agencies
Other
Investment income
Total revenues
Eapenditures:
C�trent -
Police
Community development
Total ezpenditures
Ezcess (deficiency) of revenues over
ezpenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, July 1, 2003
Fund balances (deficits), June 30, 2004
Communitv Development Block Grant
Variance -
Positive
Bud�et Actual (Negative)
$ 205,000 $ 199,632 $ (5,368)
205,000 199,632 (5,368)
205,000 238,030 (33,030)
205,000 238,030 (33,030)
(38,398) (38,398)
(38,398) (38,398)
$ $ (38,398) $ (38,398)
*The Home Program Fund was included in the Town's budget, however, the budget was -0-.
Page 84
Home Pro�ram
Variance -
Positive
Bud�et* Actual (Ne�ative)
$ $ $
171,581 171,581
171,581 171,581
36,831 (36,831)
36,831 (36,831)
134,750 134,750
134,750 134,750
114,913 114,913
$ $ 249,663 $ 249,663
COPS Grant
Variance -
Positive
Budget Actual (NeQative)
$ 92,285 $ $ (92,285)
92,285
(92,2$5)
92,285 19,835 72,450
92,285 19,835 72,450
(19,835) (19,835)
(19,835) (19,835)
$ $ (19,835) $ (19,835)
(Continued)
Page 85
TOWN OF MARANA, ARIZONA
COIVBINING SCHEDULE OF REVENUES,I:XPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JIJNE 30, 2004
(Continued)
Revenues:
Other agencies
Other
Investment income
Total revenues
Egpenditures:
Cutrent -
Police
Community development
Total egpenditures
Escess (deficiency) of revenues over
eapenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, July 1, 2003
Fund balances (deficits), June 30, 2004
- JCEF Court Fund
Variance -
Positive
Bud�et* Actual (Ne�ative)
$ $ $
38,051 38,051
$ $ 38,051 $ 38,051
*The JCEF Court Fund Fund was included in the Town's budget, however, the budget was -0-.
Page 86
RICO
Variance -
Positive
Bud�et Actual fNegative)
$ $ $
64,811 13,825 f50,986)
64,811 13,825 (50,986)
64,811 13,825 (50,986)
64,811 13,825 (50,98�
13,106 13,106
$ 64,811 $ 26,931 $ (37,880)
I�TA
Variance -
Positive
Budget Actual �Negative)
$ 55,270 $ 48,920 $ (6,350)
55,270 48,920 (6,350)
55,270 57,211 (1,941)
55,270 57,211 (1,941)
(8,291) (8,291)
(8,291) (8,291)
$ $ (8,291) $ (8,291)
(Continued)
Page 87
TOWN OF MARANA, ARIZONA
COMBINING SCHEDULE OF REVENLTES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JiJNE 30, 2004
(Continued)
MANTTS
Variance -
. Positive
Bud�et Actual (Ne�ative)
Revenues:
Other agencies
Other
Invesiment income
Total revenues
Ezpenditures:
Current -
Police
Community development
Total egpenditures
Ezcess (deficiency) of revenues over
egpenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, July 1, 2003
Fund balances (deficits), June 30, 2004
$ 53,000 $ 60,263 $ 7,263
53,000 60,263 7,263
53,000 55,626 (2,626)
53,000 55,626 (2,626)
4,637 4,637
4,637 4,637
$ $ 4,637 $ 4,637
Page 88
Auto Theft
Variance -
Positive
Bud�ef Actual (Negative)
$ 46,825 $ 50,951 $ 4,126
HiQhway User Revenue
Variance -
Posifive
Bud�et Actual (NeQative)
$ 1,152,400 $ 2,353,423 $ 1,201,023
46,825 50,951 4,126 1,152,400 2 1,201,023
46,825 66,151 (19,326)
46,825 66,151 (19,32�
(15,200) (15,200) 1,152,400 2,353,423 1,201,023
(1,100,000) (1,092,522) 7,478
(1,100,000) (1,092,522) 7,478
(15,200) (15,200) 52,400 1,260,901 1,208,501
$ $ (15,200) $ (15,200)
$ 52,400 $ 1,260,901 $ 1,208,501
(Continued)
Page 89
TOWN OF MARANA, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CIiANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2004
(Continued)
Revenues:
Other agencies
Other
Investment income
Total revenues
Ezpenditures:
Gtiurent-
Police
Community development
Total egpenditures
Ezcess (deficiency) of revenues over
egpenditures
Other fin�ncing sources (uses):
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, July 1, 2003
Fund balances (deficits), June 30, 2004
Local Transportation
Variance -
Positive
BudQet Actual (Ne�ative)
$ 94,280 $ 117,656 $ 23,376
94,280 117,656 23,376
94,280 117,656 23,376
(146,680) (117,656) 29,024
(146,680) (117,656) 29,024
(52,400)
52,400
$ (52,400) $ $ 52,400
*The Fill-the-Gap Fund was included in the Town's budget, however, the budget was -0-.
**The Local Technology Fund was included in the Town's budget, however, the budget was -0-.
Page 90
Fill-the-Gap
Vaziance -
Positive
Budget* Actual (NeQative)
$ $ 2,269 $ 2,269
2,269 2,269
2,269 2,269
2,269 2,269
9,214 9,214
Local Technolo�y
Variance -
Positive
Bud�et** Actual (Ne�ative)
$ $ $
21,205 21,205
$ $ 11,483 $ 11,483 $ $ 21,205 $ 21,205
(Continued)
Page 91
TOWN OF MARANA, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JIJNE 30, 2004
(Concluded)
Revenues:
Other agencies
Other
Investment income
Total revenues
Egpenditures:
Current -
Police
Community development
Total expenditures
Excess (deficiency) of revenues over
egpenditures
Other Snancing sources (uses):
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, July 1, 2003
Fund balances (deficits), June 30, 2004
Totals
Variance -
Positive
Budget Actual (Ne�ative)
$ 1,699,060 $ 2,833,114 $ 1,134,054
171,581 : 171,581
64,811 13,825 (50,986)
1,763,871 3,018,520 1,254,649
247,380 198,823 48,557
205,000 274,861 (69,861)
452,380 473,684 (21,304)
1,311,491 2,544,836 1,233,345
(1,246,680) (1,210,178) 36,502
(1,246,680) (1,210,178) 36,502
64,811 1,334,658 1,269,847
196,489 196,489
$ 64,811 $ 1,531,147 $ 1,466.336
Page 92
�
w
r
�
NON-MAJOR DEBT SERVICE FUNDS
Debt Service Funds axe created to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
' 2003 General Obligation Debt Service Fund — this fund accounts for the accumulation of
resources and payment of principal and interest on the series 2003 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.
2000 General Obligation Debt Service Fund — this fund accounts for the accumulation of
1 resources and payment of principal and interest on the series 2000 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.
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 shaxed re revenues licenses, fees and permits reveriue, and
fines, forfeitures and penalties revenue to make the required payments for this series.
�
,
' Page 93
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2004
ASSETS
Restricted cash/investments
Total assets
LIABILITIES AND FUND BALANCES
Fund balances:
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
2003 General
Obligation
$ 722,180
$ 722,180
722,180
722,180
$ 722,180
Page 95
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS �
YEAR ENDED JUNE 30, 2004
Revenues:
Investment income
Total revenues
Expenditures:
Debt service -
Principal retirement
Interest and fiscal charges
Total expenditures
2003 General 2000 General 1997 General
Obligation Obligation Obligation
$ 2,323 $ 3 $ 4
2,323 3 4
875,000 495,000
380,547 295,873
1,255,547 790,873
Excess (deficiency) of revenues over expenditures 2,323 (1,255,544) (790,869)
Other financing sources (uses):
Transfers in
Total other financing sources (uses)
Change in fund balances
Fund balances, beginning of year
Fund balances, end of year
719,857 634,743 395,299
719,857 634,743 395,299
722,180 (620,801) (395,570)
620,801 395,570
$ 722,180 $ $
Page 96
�
�
� Totals
' $ 2,330
2,330
'
1,370,000
, 676,420
2,046,420
, (2,044,090)
, 1,749,899
1,749,899
� (294,191)
, 1,016,371
� $ 722,180
�
�
�
' Page 97
TOWN OF MAR.ANA, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2004
Revenues:
Investment income
Face amount of bonds issued
Total revenues
Ezpenditures:
Debt service -
Principal retirement
Interest and fiscal charges
Total ezpenditures
Egcess (defciency) of revenues over
ezpenditures
Other 5nancing sources (uses):
Transfers in
Total other financing sources (uses)
Change in fund balances
Fund balances, July 1, 2003
Fund balances, June 30, 2004
2003 General Obligation
Variance -
Positive
BudQet* Actual (Negative)
$ $ 2,323 $ 2,323
2,323 2,323
2,323 2,323
719,857 719,857
719,857 719,857
722,180 722,180
$ $ 722,180 $ 722,180
*The 2003 General Obligation Fund was included in the Town's budget, however, the budget was -0-.
**The 2000 General Obligation Fund was included in the Town's budget, however, the budget was -0-.
Page 98
2000 General Obli�ation
Variance -
Positive
Budget** Actual (Ne�ative)
$ $ 3 $ 3
3 3
875,000 (875,000)
380,547 (380,547)
1,255,547 (1,255,547)
1997 General Obligation
Variance -
Positive
BudQet Actual (Negative)
$ $ 4 $ 4
21,190,000 (21,190,000)
21,190,000 4 (21,189,996)
495,000 (495,000)
295,873 (295,873)
790,873 (790,873)
(1,255,544) (1,255,544) 21,190,000 (790,869) (21,980,869)
634,743 634,743
634,743 634,743
(620,801) (620,801)
620,801 620,801
395,299 395,299
395,299 395,299
21,190,000 (395,570) (21,585,570)
395,570 395,570
$ $ $ $ 21,190,OU0 $ $ (21,190,000)
(Continued)
Page 99
TOWN OF MARANA, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2004
(Concluded)
Revenues:
Investment income
Face amount of bonds issued
Total revenues
Egpenditures:
Debt service -
Principal retirement
Interest and fiscal charges
Total ezpenditures
Egcess (deficiency) of revenues over
ezpenditures
Other financing sources (uses):
Transfers in
Total other financing sources (uses)
Change in fund balances
Fund balances, July 1, 2003
Fund balances, June 30, 2004
Totals
Variance -
Positive
Bud�et Actual (NeQative)
$ $ 2,330 $ 2,330
21,190,000 (21,190,000)
21,190,000 2,330 (21,187,670)
1,370,000 (1,370,000)
676,420 (676,420)
2,046,420 (2,046,420)
21,190,000 (2,044,090) (23,234,090)
1,749,899 1,749,899
1,749,899 1,749,899
21,19Q000 (294,191) (21,484,191)
1,016,371 1,016,371
$ 21,190,000 $ 722,180 $ (20,467,820)
Page100
'
�
,
NON-MAJOR CAPITAL PROJECTS FUND
�
'
� _J
'
�'
'
'
�
'
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 Obli�ation Capital Proiect Fund — this fund accounts .for the proceeds from the
sale of the 2000 general obligation bonds which are used for authorized capital improvements.
1997 General Obligation Capital Proiect Fund — this fund accounts for the proceeds from the
sale of the 1997 general obligation bonds which are used for authorized capital improvements.
Page 101
�
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JLTNE 30, 2004
2000 General 1997 General
ObliQation Oblif;ation Totals
ASSETS
Investments
Due from other funds
Restricted cash/investments
Total assets
$ 982 $ $ 982
5,611,942 244,743 5,856,685
639,256 531,432 1,170,688
$ 6,252,180 $ 776,175 $ 7,028,355
LIABILITIES AND FUND BALANCES
Liabilities:
Due to other funds $ 12,865 $ $ 12,865
Total liabilities 12,865 12,865
Fund balances:
Unreserved:
Undesignated
Total fund balances
Total liabilities and fund balances
6,239,315 776,175 7,015,490
6,239,315 776,175 7,015,490
$ 6,252,180 $ 776,175 $ 7,028,355
�
'
'
'
Page102
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CFIANGES IN FUND BALANCES -
NON-MAJOR CAPTTAL PROJECTS FUNDS
YEAR ENDED JiJNE 30, 2004
Revenues:
Investment income
Total revenues
Eapenditures:
Debt service -
Interest and fiscal charges
Total egpenditures
Eacess (de5ciency) of revenues over egpenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, beginning of year
Fund balances, end of year
2000 General 1997 General
Obligation Oblil�ation Totals
$ 43,915 $ 1,861 $ 45,776
43,915 1,861 : 45,776
300 300
300 300
43,915 1,561 45,476
1,272,663 785,017 2,057,680
(634,738) (409,632) (1,044,370)
637,925 375,385 1,013,310
681,840 376,946 1,058,786
5,557,475 399,229 5,956,704
$ 6,239,315 $ 776,175 $ 7,015,490
Page 103
TOWN OF MARANA, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2004
Revenues:
Investment income
Total revenues
Ezpenditures:
Debt service -
Interest and fiscal charges
Total egpenditures
Eacess (deficiency) of revenues over
ezpenditures
2000 General Obli�ation
Variance -
Positive
Bud�et Actual (NeQative)
$ $ 43,915 $ 43,915
43,915 : 43,915
43,915 43,915
Other 5nancing sources (uses):
Transfers in 1,272,663 1,272,663
Transfers out (1,168,475) (634,738) 533,737
Total other financing sources (uses) (1,168,475) 637,925 1,806,400
Change in fund bstances
Fund balances, July 1, 2003
Fund balances (deficits), June 30, 2004
(1,168,475) 681,840 1,850,315
6,000,000 5,557,475 (442,525)
$ 4,831,525 $ 6,239,315 $ 1,407,790
Page 104
1997 General ObliQation
Variance -
Positive
Bud�et Actual (Negative)
$ $ 1,861 $ 1,861
1,861 1,861
300 (300)
300 (300)
1,561 1,561
785,017 785,017
(792,605) (409,632) 382,973
(792,605) 375,385 1,167,990
(792,605) 376,946 1,169,551
706,000 399,229 (306,771)
$ (86,605) $ 776,175 $ 862,780
Totals
Variance -
Positive
Budget Actual (Ne�arive)
$ $ 45,776 $ 45,776
45,776 45,776
300 (300)
300 (300)
45,476 45,476
2,057,680 2,057,680
(1,961,080) (1,044,370) 916,710
(1,961,080) 1,013,310 2,974,390
(1,961,080) 1,058,786 3,019,866
6,706,000 5,956,704 (749,296}
$ 4,744,920 $ 7,015,490 $ 2,270,570
Page 105
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SUPPLEMENTAL INFORMATION
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TOWN OF MARANA, ARIZONA
SALES TAX BY IND�JSTRY GROUP
JLJNE 30, 2004
IndustrV Gmnp FY 00 % FY Ol % FY 02 % FY 03 '/o FY 04 °/a
Mining 64�310 0.51% 16,652 0.13% 6,841 0.05% 19,446 0.11% 1�,886 0.08%
Const[ucHon 3,752,812 29.57% 3,185,788 25.68% 5,053,516 34.05% 6,818,267 39.91% 7,637,372 39.28%
Manufy�turjng 18,626 0.15% 25,731 0.21% 20�471 0.14% 27,463 0.16% 40,866 0.21%
Ttanspottation, CommuniCetions, 911,727 7.18% 1,086,598 8.76% 1,267,941 8.54% 1,339,125 7.84% 1,632,955 8.40%
and Utiliries
Wholesale Trade 166,151 131% 118,787 0.96% 150,862 1.02% 117,525 0.69% 88,038 0.45%
RetsilTrade 5,787,976 45.61% 5,982,47] 48.21% 6,240,721 42.05% 6,447,144 37.73% 7,230,986 37.19%
jtestgutants & gazs 818,112 6.45% 749,934 6.04% 812,513 5.47% 857,812 5.02% 967,250 4.97%
Fue,lnsurance & Real Estate 285,562 225% 306,140 2.47% 306 2.0�% : 393,885 2.31% 617,768 3.18%
Hotels & Othe[ I.odging 297,676 235% 361,862 2.92% 430,371 2.90% 483,512 2.83% 517,601 2.66%
$�j� 539,462 425% 547,202 4.41% 543,512 3.66% 570�815 334% 664,411 3.42%
plt pthers 48,225 038% 26,887 0.22% 9,112 0.06% 10,849 0.06% 32,731 0.17%
Total 12,690.639 100.00% 12,408,052 100.00% 14,842.811 100.00% 17.085,843 100.00% 19,445.864 100.00%
Source: Town of Marana Finance Department
Page 108
TOWN OF 1�7ARANA, ARIZONA
TOP TEN TAXPAYERS
SELECTED INDUSTRY GROUPS
JUNE 30, 2004
Retail Construction Restaurant & Bars
Costco U.S. Homes McDonald's
Wal-Mart Monterey Homes Cracker Bazrel
Home Depot KB. Homes Wendy's
Sam Levitz Furniture D R Horton Homes La Parrilla Suiza
Target Pulte Homes Lil Abner's �
Orielly's Autoplex AF Sterling Homes Kentucky Fried Chicken (KFC)
KohPs Department Stores Borderland Construction Hooter's
Tucson Cycle & Ski Richmond American Homes IHOP
Petsmart Canoa Builders Jack in the Box
Fry's Food & Drug DL Withers Construction Taco Bell
Source: Town of Marana Finance Department
Page 109
TOWN OF NZARANA, ARIZONA
SINGLE FANIILY RESIDENTIAL PERMITS
J[TNE 30, 2004
Month 1998 1999 2000 2001 2002 2003 2004 �
7��ry 73 66 53 83 101 81
February 93 82 50 62 99 71
March 68 54 65 87 105 105
April 105 43 68 70 . 129 52
May 87 74 81 105 � 138 136
June 123 83 66 47 99 108
July 102 78 75 81 122 99
August 45 112 71 73 87 123
September 108 58 47 90 70 96
October 43 54 42 65 '72 86
November 87 47 60 50 55 55
December 69 95 34 46 102 76
Fiscal Total
1,003 846 712 859 1,179 1,088
Source: Town of Marana Finance Department
Page 110