HomeMy WebLinkAbout2014 Financial Statement June 30TOWN OF MARANA, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Issued by:
Finance Department
_____________________________
11555W. Civic Center Dr., A3
Marana, Arizona 85653
This page intentionally left blank
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS
INTRODUCTORY SECTIONPage
Letter of Transmittal i
Certificate of Achievement for Excellence in Financial Reporting vi
Principal Officials vii
Senior Staff vii
Organizational Chart viii
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT1
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information) 7
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements:
Statement of Net Position 25
Statement of Activities 26
Fund Financial Statements:
Balance Sheet – Governmental Funds 30
Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position 33
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 34
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds to the
Statement of Activities 37
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Cont’d)
FINANCIAL SECTION(Cont’d)Page
BASIC FINANCIAL STATEMENTS (Concl’d)
Statement of Net Position– Proprietary Funds 38
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds39
Statement of Cash Flows – Proprietary Funds 40
Notes to Financial Statements 41
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
(Required Supplementary Information)
General Fund 70
Highway User Revenue Fund 71
Note to Required Supplementary Information 72
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Other Major Governmental Funds Schedules of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual:
Tangerine Farms Road Improvement District Debt Fund 77
2008 Debt Service Fund 78
Non-Major Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 80
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 81
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Cont’d)
FINANCIAL SECTION(Concl’d)Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES (Concl’d)
Non-Major Special Revenue Funds:
Combining Balance Sheet 84
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 86
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual 88
Non-Major Capital Projects Funds:
Combining Balance Sheet 98
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 102
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual 105
Non-Major Debt Service Fund:
Combining Balance Sheet 120
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 122
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual 124
STATISTICALSECTION
FINANCIAL TRENDS
Net Positionby Component –Last Ten Fiscal Years 134
Changes in Net Position– Last Ten Fiscal Years 136
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Cont’d)
STATISTICAL SECTION(Cont’d)
FINANCIAL TRENDS (Concl’d)
Governmental Activities Tax Revenues by Source –Last Ten Years140
Fund Balances of Governmental Funds – Last Ten Fiscal Years 141
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 142
REVENUE CAPACITY
Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable 144
Property – Last Ten Years
Property Tax Rates – Direct and Overlapping Governments – Last Ten Years 145
Principal Property Taxpayers – Current Year and Seven Years Ago 146
Property Tax Levies and Collections –Last Ten Fiscal Years147
DEBT CAPACITY
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 148
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 149
Direct and Overlapping Governmental Activities Debt 150
Legal Debt Margin Information 151
Pledged-Revenue Coverage – Last Ten Fiscal Years 152
DEMOGRAPHIC AND ECONOMIC INFORMATION
Demographic and Economic Statistics – Last Ten Fiscal Years 153
Principal Employers – Current Year and Seven Years Ago 154
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Concl’d)
STATISTICAL SECTION(Concl’d)
OPERATING INFORMATION
Full-time Equivalent City Government Employees by Function –Last155
Ten Fiscal Years
OTHER INFORMATION
Sales Tax by Industry – Last Ten Years 156
Excise Tax Collections – Last Ten Years 157
Principal Retail and Contracting Sales Taxpayers 158
Single Family Residential Permits Issued – Last Ten Years 159
Capital Assets Statistics by Function 160
This page intentionally left blank
INTRODUCTORY SECTION
This page intentionally left blank
December 17, 2014
The Honorable Mayor and Town Council, and Citizens of the Town of Marana, Arizona:
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 financial report of the Town of Marana, Arizona (Town) for the fiscal year ended
June 30, 2014.
This report consists of senior management’s representations concerning the finances of the Town.
Consequently, senior management assumes full responsibility for the completeness and reliability of
all 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’sfinancial 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 Henry & Horne, LLP, 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, 2014, 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, 2014, 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
The independent audit of the financial statements of the Town was part of a broader, federally
mandated Single Audit as required by the provisions of the Single Audit Act Amendments of 1996
and U.S. Office of Management and Budget Circular A-133,
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 presentation 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
separately issued Single Audit Reporting Package.
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 MD&A can be
found immediately following the report of the independent auditors.
Profile of the Town
The Town of Marana, incorporated in 1977, is located in northern Pima County and has historically
been one of the fastest growing communities in Arizona. 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. The Town’s planning area currently occupies
over 120 square miles and serves a population in excess of 38,000.
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, Dove Mountain, Saguaro Ranch, Sky Ranch, Saguaro Bloom, Continental Ranch Business
Park and Arizona Pavilions.
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 monies,
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 319 employees is responsible for the functions and operations of
the Town government.
ii
Economic Condition and Outlook
The local economy continued to slightly improve during the current fiscal year. Revenues in the
General Fund grew by approximately 1% overall with growth in intergovernmental revenues of 7%
and charges for services of 34%. Transaction privilege taxes grew by $1.6 million or 6% overall,
which demonstrates continued growth and improvement in the economy. The Town has seen
improvements in economically sensitive revenues over the past few years and the revenue forecast
for fiscal year 2014-15 anticipates a continuation of the recovery with estimated revenue growth of
9%. Expenditures in the General Fund also grew by approximately 1% overall. The Town was able
to provide a market adjustment to employees while reducing costs in commodities and services
received in order to stay within budget. The General Fund expenditures were $1.9 million under
budget. The Town’s budget is structurally balanced with ongoing revenues supporting ongoing
expenditures. One-time revenues like contracting transaction privilege taxes and building permits
support one-time expenditures. The budget maintains the investment planning, which includes three
investment priorities: current employees, resources and tools, and strategic positions.
Current Condition
The economy continued to improve throughout the current fiscal year. As described above, key
revenues including transaction privilege taxes, intergovernmental and charges for services revenues
were higher from previous years. The Town established and maintains an investment plan as a way
to guide decisions made during future year’s budgetary processes. Even, as revenues grow in
future years, the investment plan will serve as a guide in the allocation of resources as they become
available. Both the current and future programs are measured for alignment with the Strategic Plan
as well as the investment plan. Those programs that are more precisely aligned with those plans
and those that are sustainable are more likely to receive funding. The financial performance of the
Town as a whole is reflected in its governmental funds. As of June 30, 2014, the Town’s
governmental funds reported a combined fund balance of $64 million, of which $20.7 million is
unassigned and available for spending at the Town’s discretion.
The Town, like most municipalities, is significantly dependent upon transaction privilege tax
revenues which are subject to economic fluctuations. Transaction privilege tax revenues comprised
58% of general fund revenues. Of those revenues, retail, construction and utilities comprised 70%
of total transaction privilege tax revenues. Sales taxes and revenues related to the residential and
commercial construction industry continued their modest recovery during the fiscal year.
Future Economic Outlook
Despite the significant slowdown in development during the depths of the recession, several key
activities and revenues associated with those activities have shown consistent recovery over the past
several fiscal years. In fact, a number of key revenues are at or are approaching pre-recession
highs. The Town’s goal in managing budgets during the recession was to position the Town to take
advantage of the eventual economic recovery. The Town has been able to make strategic
reinvestments in existing programs and minor investments in new programs that provide the
opportunity to further position the Town as the place to live, work and play. In the past year,
several restaurants, such as Village Inn, Dunkin Donuts, and McDonald’s have opened and
development is continuing. A major development that has begun in the Town is a new outlet mall on
a 46-acre site. The mall is scheduled to open in fall of 2015 with an estimated 90-name brand and
designer stores. This development will draw more interest for development and additional tax
revenues, which will enable the Town to maintain a high level of service to the community. Many
more exciting things are in store for Marana as it is uniquely positioned geographically with an
abundance of developable commercial, industrial and residential land.
iii
Accomplishments and Initiatives
During fiscal year 2014, the Town had several significant accomplishments.
Tortolita Trail System
The Tortolita Mountain trails range in elevation from 2,800 feet at the bottom of Wild Burro Canyon
to 4,300 feet along the Ridgeline Trail. In FY 2014, 3 additional miles of backcountry trails were
constructed in the Tortolita Trail System. The total of 31 miles of trails, which cross easements on a
patchwork of private, town, county and state land, were constructed starting in 2004 in a
cooperative venture by the Town, Pima County, and the Aizona State Land Department. This trail
system and the ground they cross constitute a spectacular natural space open to southern Arizona
residents and visitors.
Impact Fee Update
In accordance with Arizona Revised Statutes 9-463.05, the Town has adopted impact fees with the
most recent update in FY14 under Marana Ordinance 2014.12. New impact fees were calculated for
northeast roads, parks, water and sewer. In addition, an updated Land Use Assumptions report was
developed.
Legacy of Sustainability Marana Baseline Report
The Planning Department participated in the development of the Legacy of Sustainability Marana
Baseline Report. The baseline report consists of an inventory and description of Marana’s current
sustainable practices. Currently in the last stages of the draft, the final baseline report will be shared
with the public and updated annually to measure progress from year to year.
Twin Peaks Corridor Study
The Twin Peaks Corridor Study was completed in FY 2014, which established policy guidelines for
development along the Twin Peaks Corridor. As development activity in this area increases it was
important to ensure that quality development, enhanced landscaping, recreation amenities and
improved aesthetic treatments be implemented to establish a baseline standard that brands this
area as the next “place to be” in Marana.
Expenditure Limitation
One June 30, 1980 Arizona voters approved general propositions amending the Arizona Constitution
to establish expenditure and revenue limitations for local governments. The purpose of the
expenditure limitation is to control expenditures and to limit future increases in spending to
adjustments for inflation, deflation and population growth of the Town.
On May 21, 2013, the voters of the Town approved an alternative expenditure limitation, the effect
of which is that the total budgeted expenditures of each yearly budget becomes the expenditure
limitation for that year on a total budget basis. This alternative expenditure limitation is effective for
four years.
Single Audit
As a recipient of Federal, State and County financial assistance, the Town is responsible for ensuring
that adequate internal controls are in place to ensure compliance with applicable laws, regulations,
contracts and grants related to those programs. Internal control is subject to periodic evaluation by
management.
iv
As part of the Town’s single audit described earlier, tests are made to determine the adequacy of
the internal controls, including that portion related to Federal financial assistance programs, as well
as to determine that the Town has complied with applicable laws and regulations.
Certificate of Achievement
The Government Finance Officers Association of the United States (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the Town of Marana for its Comprehensive
Annual Financial Report (CAFR) for the year ended June 30, 2013. This was the sixth consecutive
year that the Town has achieved this prestigious award. In order to be awarded the Certificate of
Achievement, a governmental unit must publish an easily readable and efficiently organized CAFR,
whose contents conform to program standards. Such reports must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a one-year period only. We believe our current report
conforms to the Certificate of Achievement program requirements, and we are submitting it to GFOA
for consideration.
Acknowledgements
The preparation of this report would not have been possible without the efficient and dedicated
services of the Finance Department. We would like to express our appreciation to all members of
the Department who assisted and contributed to the preparation of this report.
A special thanks to the Mayor and Council for dedicating the resources to this project and for their
leadership and support of staff.
Respectfully submitted,
Gilbert Davidson Erik Montague, CPA
Town Manager Finance Director
v
vi
TOWN OF MARANA, ARIZONA
PRINCIPAL OFFICIALS OF THE TOWN OF MARANA
FISCAL YEAR 2014
MAYOR AND COUNCIL
Ed Honea, Mayor
Jon Post, Vice Mayor Herb Kai, Councilmember
Carol McGorray, CouncilmemberRoxanne Ziegler, Councilmember
Dave Bowen, CouncilmemberPatti Comerford, Councilmember
MANAGEMENT STAFF
Gilbert Davidson, Town Manager
Jamsheed Mehta, Deputy Town Manager
DEPARTMENT HEADS
Ryan Mahoney, Planning Director Suzanne Machain, Human Resources Director
Jocelyn Bronson, Town ClerkFrank Cassidy, Town Attorney
Keith Brann, Town EngineerErik Montague, Finance Director
Ryan Benavides, Public Works DirectorSteve Miller, Airport Manager
Terry Rozema, Police Chief Charles Davies, Town Magistrate
Lisa Shafer, Community Development and Carl Drescher, Technology Services Director
Neighborhood Services Director
Tom Ellis, Parks and Recreation Director John Kmiec, Utilities Director
vii
viii
FINANCIAL SECTION
This page intentionally left blank
INDEPENDENT AUDITORS' REPORT
The Honorable Mayor and Council
Town of Marana, Arizona
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
Town of Marana, Arizona, as of and for the year ended June 30, 2014, and the related notes to
the financial statements, which collectively comprise the Town’s basic financial statements as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
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 Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
8IQTI7GSXXWHEPI'EWE+VERHI
);EVRIV6SEH )'SGLMWI6SEH)'SXXSR[SSH0ERI
7YMXI7YMXI7YMXI
8IQTI%> 7GSXXWHEPI%> 'EWE+VERHI%>
*E\
*E\
*E\
1
[[[LIRV]ERHLSVRIGSQ
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
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, and the aggregate remaining fund information of the Town of Marana, Arizona, as of
June 30, 2014, and the respective changes in financial position and, where applicable, cash
flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
In connection with our audit, nothing came to our attention that caused us to believe that the
Town of Marana failed to use highway user revenue fund monies received by the Town of
Marana pursuant to Arizona Revised Statutes Title 28, Chapter 18, Article 2 and any other
dedicated state transportation revenues received by the Town of Marana solely for the
authorized transportation purposes. However, our audit was not directed primarily toward
obtaining knowledge of such noncompliance.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 7-20
and 72-74 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town of Marana, Arizona’s basic financial statements. The introductory
section, combining and individual fund financial statements and schedules, and statistical
section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
2
The combining and individual fund financial statements and schedules are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual fund financial statements are fairly stated in all material respects in
relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 17, 2014, on our consideration of the Town’s internal control over financial reporting
and our tests of its compliance with certain provisions of laws, regulations, contracts and 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 internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the Town of Marana, Arizona’s, internal control over financial reporting
and compliance.
Casa Grande, Arizona
December 17, 2014
3
This page intentionally left blank
4
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
5
This page intentionally left blank
6
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
As management of the Town of Marana, Arizona, (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, 2014. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal, which can
be found in the introductory section of this report.
FINANCIAL HIGHLIGHTS
The Town’s total net position decreased by $452,908 or .1 percent from the previous fiscal
year 2012-13. Although both revenues and expenditures increased from the prior year,
expenditures slightly exceeded revenues. The minimal decrease in net position is primarily
due to the retirement of debt.
General revenues from governmental activities, excluding transfers, accounted for $36.3
million in revenue, or 65.4 percent of all revenues from governmental activities. Program
specific revenues in the form of charges for services and grants and contributions accounted
for $19.2 million or 4.6 percent of total revenues from governmental activities. The Town
had $7.4 million of program revenues related to business-type activities.
The Town had approximately $54.2 million in expenses related to governmental activities; of
which $19.2 million of these expenses were offset by program specific charges for services
or grants and contributions. General revenues of $36.3 million were adequate to provide for
the remaining costs of these programs. However, with the inclusion of transfers to cover
business-type activity cash deficits, the change in governmental activities decreased by $1
million.
Among major funds, the General Fund had $34.8 million in fiscal year 2013-14 revenues,
which primarily consisted of sales taxes, intergovernmental revenue and licenses, fees and
permits. The General fund had $29.6 million of expenditures and $2.5 million in required
transfers during the year. The $2.7 million fund balance growth was due to unanticipated
increases in taxes and permits revenue as well as a spending level slightly below budget.
Highway User Revenue Fund revenues remained steady in fiscal year 2013-14 at $2.3
million. Expenditure growth was more significant due to the establishment of the pavement
preservation program which seeks to maximize pavement life. Fund balance decreased by
$1 million and ended the fiscal year at $2.9 million.
Tangerine Farms Road Improvement District Debt Service Fund, which accounts for special
assessments, had a $499,850 fund balance attributable to the accumulation prepaid
assessments and resources required for the July 2014 debt service payment.
The 2008 Debt Service Fund had a fund balance of $6.9 million in fiscal year 2013-14, which
is a decrease of $5.8 million from the prior year. The change in fund balance is attributable
to the retirement of principal debt primarily from proceeds received in the prior year.
7
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
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) government-
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 government-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. All of the activities of the Town, except those of a fiduciary nature, are
included in these statements.
The Town’s activities are presented in two columns on these statements; governmental activities
and business-type activities. A total column for these activities is also provided.
The governmental activities include basic services of the Town including general government
(administration), public safety (police and building safety), highways and streets, health and
welfare, economic and community development, and culture and recreation. These activities
are primarily supported by general taxes and revenues.
The business-type activities include the private sector-type activities such as water utility,
wastewater utility, and airport operations. These activities are supported primarily through user
charges and fees.
The statement of net positionpresents information on all of the Town’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources with the difference reported as net position
The focus on net position is important because increases and decreases in net position may serve as
a useful indicator of how the financial position of the Town may be changing. Increases may
indicate an improved financial position. However, decreases in net position may not necessarily
indicate the Town’s financial position is deteriorating. Instead, it may reflect a situation where the
Town may have used previously accumulated funds (i.e., cash collected over time to fund capital
projects). As a result, other financial and non-financial indicators must also be considered to
effectively assess the Town’s overall financial health.
The statement of activities presents information showing how the Town’s net position changed
during the most recent fiscal year. Since economic resources measurement focus and accrual basis
of accounting are used for the government-wide financial statements, all changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing
of related cash flowsThus, 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 long-term debt
that has not matured). This statement also focuses on both the gross and net costs of various Town
functions, based only on direct functional revenues and expenses. This is designed to show the
extent to which the various functions are dependent on general taxes and revenues for support.
In addition to the Town itself (primary government), the government-wide financial statements also
include the Marana Municipal Property Corporation, a legally separate entity, for which the Town is
financially accountable. The Corporation also has substantially the same governing board as the
8
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
Town and provides services entirely to the Town. Financial information for this component unit is
blended into the Town’s financial statements. In addition, the Gladden Farms Community Facilities
District, Gladden Farms Community Facilities District II, Vanderbilt Farms Community Facilities
District and Saguaro Springs Community Facilities District are blended component units.
The government-wide financial statements can be found on pages 25-27 of this report.
Fund financial statements. Also presented are the financial statements for governmental funds
and proprietary funds. 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 fundsare 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 and outflows 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 and determining what financial resources are available in the near
future to fund Town programs.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it may be 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. To facilitate this comparison, reconciliations of the differences between the
governmental fund balance sheet and statement of revenues, expenditures and changes in fund
balances and government-wide statement of net position and statement of activities are provided
immediately following the respective governmental fund statements.
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General, Highway User Revenue, Tangerine Farms Road Improvement District Debt Service, and
2008 Debt Service 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.
These statements are included as supplementary information after the basic financial statements
starting on page 80.
The Town adopts an annual budget and legally allocates (or appropriates) available monies for the
General, Highway User Revenue, Tangerine Farms Road Improvement District Debt Service, 2008
Debt Service, and other non-major governmental funds. Budgetary comparison schedules have
been presented for the Town’s major funds (pages 70-78), and budgetary comparison schedules
have been presented for the Town’s non-major funds to demonstrate compliance with the annual
budget.
The basic governmental fund financial statements can be found on pages 30-37 and 80-129 of this
report.
9
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
Proprietary funds. Proprietary funds are used to account for services primarily supported by user
charges and fees. The Town maintains one type of proprietary fund. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses enterprise funds to account for its water, wastewater 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.
Required supplementary information other than MD&A.In addition to the basic financial
statements and accompanying notes, this report also presents certain required supplementary
information concerning the Town’s budget process. Governments have an option of including
budgetary comparison statement of the General Fund and major special revenue funds as either
part of the fund financial statements within the basic financial statements, or required
supplementary information after the notes to the financial statements. The Town has elected to
present these budgetary comparison schedules as required supplemental information immediately
following the notes to the financial statements. Additionally, governments are required to disclose
certain information about employee pension funds. These disclosures are included within Note 10
Employee Retirement Systems beginning on page 60 rather than separately presenting the
information as required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, assets and deferred outflows of resources exceeded liabilities by
$356.9 million as of June 30, 2014. Current and other assets decreased $1.1 million or 1.2 percent
primarily due to a reduction in accounts receivable and amounts due from other governments.
Net position.The majority of the Town’s net position reflects its investment in capital assets (land,
building and improvements, infrastructure, vehicles and equipment and construction in progress) net
of accumulated depreciation and any related outstanding debt used to acquire or construct those
assets. The Town uses these capital assets to provide services to its citizens; consequently, these
assets are not available for future spending. Although the Town’s investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate
these liabilities. In addition, a portion of the Town’s net position represents resources that are
subject to external restrictions on how they may be used.
The Town’s financial position is the product of several financial transactions including the net results
of activities, the acquisition and payment of debt, the acquisition and disposal of capital assets, and
the depreciation of capital assets.
10
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
The following table presents a summary of the Town’s net position for the fiscal years ended June
30, 2014 and June 30, 2013.
Governmental ActivitiesBusiness-type ActivitiesTotal
201420132014201320142013
Current and other assets$ 87,419,238 $ 92,563,835 $ 2,754,834 $ (1,283,314) $ 90,174,072 $ 91,280,521
Capital assets, net 265,674,223 273,160,908 113,153,692 115,309,001 378,827,915 388,469,909
Total assets, net 353,093,461 365,724,743 115,908,526 114,025,687 469,001,987 479,750,430
Deferred charge on refunding238,732254,485 - - 238,732 254,485
Total deferred outflows of
resources
Current and other liabilities10,500,13311,186,856 1,521,1721,390,912 12,021,305 12,577,768
Long-term liabilities 95,123,626 106,021,794 5,191,562 4,048,219 100,315,188 110,070,013
Total liabilities 105,623,759 117,208,650 6,712,734 5,439,131 112,336,493 122,647,781
Net position:
Net investment in capital assets 189,170,947 184,949,436 107,768,414 111,044,427 296,939,361 295,993,863
Restricted 58,820,189 62,436,637 292,388 219,291 59,112,577 62,655,928
Unrestricted (282,702) 1,384,505 1,134,990 (2,677,162) 852,288 (1,292,657)
Total net position
$ 247,708,434$ 248,770,578$ 109,195,792$ 108,586,556$ 356,904,226$ 357,357,134
Net investment in capital assets of $296.9 million or 83.2 percent represents the largest portion of
net position. This reflects the Town’s investment in capital assets, net of accumulated depreciation
and related outstanding debt used to acquire those assets. These capital assets are used to provide
services to the Town’s citizens. Consequently, the Town does not intend to sell these assets and,
therefore, they are not available for future spending. Although the capital assets are 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 are not intended to be used to liquidate these
liabilities. This portion of net position increased by $945,498 as of June 30, 2014, which is a result
of depreciation, reduction of related outstanding debt, and additions of capital assets.
The second portion of net position of $59.1 million or 16.6 percent represents resources that are
subject to external restrictions on how they may be utilized. The decrease of $3.5 million or 5.7
percent is due primarily to the reduction of debt service from prior year proceeds.
The third portion consists of unrestricted net position of $852,288. The unrestricted balance may be
used to meet the Town’s ongoing obligations to its citizens and creditors.
11
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
Changes in net position.The Town’s total revenues for the fiscal year ended June 30, 2014,
were $63 million. The capital grants and contributions decrease of $1.5 is primarily due to the one
time revenues received in debt proceeds from in the prior year. The sales tax revenue increased by
$1.5 from the prior year. The total cost of all programs and services was $62.2 million. The following
table presents a summary of the changes in net position for the fiscal years ended June 30, 2014
and June 30, 2013.
12
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
Governmental Activities. Governmental activities decreased net position by $1.1 million for fiscal
year ended June 30, 2014. The overall decrease in net position during the year is primarily
attributable to the principal retirement payments decreasing debt service net position.
General revenues of governmental activities of $36.3 million increased by $2.1 million or 6.2 percent
from the previous year. This increase is primarily attributable to increased sales taxes and State
shared revenue collections in fiscal year 2014 from the year earlier.
13
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
Program revenues of $19.2 million decreased by $2 million or 9.3 percent from the previous year.
This decrease is largely due a reduction in the capital grants and contributions revenues related to a
one time reimbursement of major capital project in the prior year.
The following table presents the cost of the nine major Town functional activities. The table also
shows each function’s net cost (total cost less charges for services generated by the activities and
intergovernmental aid provided for specific programs). The net cost shows the financial burden that
was placed on the State and Town’s taxpayers by each of these functions.
Year Ended June 30, 2014Year Ended June 30, 2013
TotalNet (Expense)/TotalNet (Expense)/
ExpensesRevenueExpensesRevenue
Governmental Activities
General government$ 10,662,236 $ (9,273,723) $ 9,531,516 $ (8,297,187)
Public safety 12,134,034 (11,025,418) 11,776,600 (11,074,749)
Highways and streets 19,052,740 (9,159,056) 18,326,851 (11,207,793)
Health and welfare 23,371 (3,099) 23,371 (6,732)
Economic and community
development 4,690,466 825,312 4,123,656 5,474,515
Culture and recreation 3,130,770 (1,820,615) 3,830,633 (1,284,161)
Interest on long-term debt 4,542,970 (4,542,970) 4,312,582 (4,312,582)
Total$ 54,236,587 $ (34,999,569) $ 51,925,209 $ (30,708,689)
Business-Type Activities
Water$ 5,244,262 $ 458,457 $ 3,778,492 $ 400,203
Wastewater2,756,375(1,325,108) 2,599,360 (1,185,820)
Airport 1,197,076 (948,757) 1,178,922 (388,483)
Total$ 9,197,713 $ (1,815,408) $ 7,556,774 $ (1,174,100)
The cost of all governmental activities this year was $54.2 million and the cost of all
business-type activities this year was $9.2 million. The slight 4.5 percent increase in
governmental activities expenses is primarily due to cost of living increases for employees
and an increase in depreciation expense.
Net cost of governmental activities ($35 million) was largely financed by general revenues,
which are made up of primarily sales taxes totaling $26.2 million.
The general government expenses increased $1.1 million or 11.9 percent. This is primarily
due to cost of living increases for employees and bond issuance costs.
14
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
The following graph shows the functional revenues and expenses of the governmental activities in
order to demonstrate the extent to which the governmental functions produce direct revenues to
offset related program costs. It should be noted that this graph is not intended to represent a full
allocation to these functions. As described above, expenses not covered by direct program revenues
are covered by the Town’s general revenues which consist primarily of taxes and unrestricted State
shared revenues. In governmental activities, the functional revenues of $19.2 million are 35.5
percent of expenses for fiscal year 2014, down from 40.9 percent a year earlier. As described
earlier, this decrease is attributable to the reduction in the capital grants and contributions revenues
related to a one time reimbursement of major capital project in the prior year.
As seen on the following graphs, the largest revenue source for the Town’s governmental activities
is sales tax revenues at 47.2 percent followed by capital grants and contributions at 18.5 percent
and State shared revenues at 14.9 percent. The Town’s largest expense category is highways and
streets at 35.1 percent, followed by public safety at 22.4 percent and general government at 19.7
percent.
15
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
16
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS (Cont’d)
Business-type Activities
Business-type activities’ net position increased by $1.8 million for fiscal year ended June 30, 2014.
This increase is largely due to a reimbursement to the Wastewater Fund from bond proceeds for
prior year capital expenses. Revenue bonds were issued to pay capital costs and the new debt is
shown as a long-term debt in the governmental funds as excise taxes were pledged and are
expected to repay the debt.
Charges for services increased by 9.6 percent due primarily to an increase in Water fees and the
establishment of the Wastewater operations. Capital grants and contributions increased by 29.4
percent from a year earlier due to contributions from developers of Water related assets.
The Town’s largest overall business-type activity is the Water Utility with $5.2 million in expenses
and $5.7 million in program revenues during the year. The second largest activity is the Wastewater
Utility with $2.8 million in expenses and $1.4 million in program revenues, followed by the Airport
with $1.2 million in expenses and $0.2 million in program revenues.
17
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, 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, unrestricted 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 governmental funds. As of June
30, 2014, the Town’s governmental funds reported a combined fund balance of $64 million, of which
$20.7 million is unassigned and undesignated and therefore 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 $23.7
million. Revenues and expenditures remained fairly consistent with prior year activity.
The Highway User Revenue Fund had a fund balance of $2.9 million which reflected a decrease of
$1 million from a year earlier. Expenditures have increased 65.6 percent due to the pavement
preservation program.
The 2008 Debt Service Fund had a fund balance of $6.9 million and reflects a $5.8 million decrease
primarily due funds received from external funding sources in the prior year, which were utilized for
repayment of debt related to the Marana Municipal Property Corporation Revenue Bonds, Series
2008A and 2008B in the current year.
Proprietary funds. The proprietary funds in the financial statements are prepared on the same
measurement focus and accounting basis as the government-wide financial statements, but they
provide more detail since each major enterprise fund is presented discretely. Of the total
proprietary funds net position of $109.2 million, $107.8 million comprised the funds’ net investment
in capital assets. $292,388 is restricted for debt service and unrestricted net position of $1.1 million.
The factors concerning the finances of these funds, as well as the changes in net position, have
been addressed previously in the discussion of the Town’s business-type activities.
BUDGETARY HIGHLIGHTS
The Town’s annual adopted budget established the legal level of expenditure control. Budgetary
comparison statements are required for the General Fund and all major special revenue funds.
These statements compare the original budget, the budget as amended throughout the year, and
the actual revenues and expenditures. Budgetary schedules for other governmental funds are also
presented in this report as other supplementary information.
18
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
The economy continued to improve modestly throughout the fiscal year. General Fund revenues
exceeded conservative budget projections in several key revenue sources like sales taxes and
licenses, permits and fees. Despite the improved revenue outlook, departments maintained their
BUDGETARY HIGHLIGHTS (Cont’d)
conservative use of available resources. The improved revenues along with the prudent use of
resources allowed for fund balance in the General Fund to grow by $2.7 million. The General Fund
budget and actual variances are shown on page 70.
Amendments to the adopted budget may occur throughout the year between departments within
the General Fund and between funds in all other funds in a legally permissible manner (see Note 4 –
Budgetary Control). Budget adjustments between departments in the General Fund did occur.
However, none of the amendments were significant.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. As of June 30, 2014, the Town had invested $378.8 million in governmental and
business-type capital assets (net of accumulated depreciation). Total depreciation expense for the
year was $20.7 million, with $16.8 million attributed to governmental activities and $3.9 million to
business-type activities.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2014 and
June 30, 2013. Additional information on the Town’s capital assets can be found in Note 6.
Governmental ActivitiesBusiness-type ActivitiesTotal
As of As of As of As of As of As of
June 30, 2014June 30, 2013June 30, 2014June 30, 2013June 30, 2014June 30, 2013
Land$ 4,093,405 $ 3,920,605 $ 4,493,811 $ 4,493,811 $ 8,587,216 $ 8,414,416
Water rights - - 3,278,839 2,994,627 3,278,839 2,994,627
Construction in progress 9,395,385 11,563,543 1,333,533 1,060,586 10,728,918 12,624,129
Buildings and improvements 46,473,837 45,537,781 115,653,660 114,821,395 162,127,497 160,359,176
Machinery and equipment 20,078,906 19,009,233 8,996,604 8,888,919 29,075,510 27,898,152
Infrastructure 323,548,227 314,507,563 - - 323,548,227 314,507,563
Less: Accumulated depreciation (137,915,537) (121,377,817) (20,602,755) (16,950,337) (158,518,292) (138,328,154)
Total$ 265,674,223$ 273,160,908$ 113,153,692$ 115,309,001$ 378,827,915$ 388,469,909
Debt Administration. At year-end, the Town had $104.9 million in long-term obligations
outstanding with $4.6 million due within one year.
The following table presents a summary of the Town’s outstanding bonded debt for the fiscal years
ended June 30, 2014 and June 30, 2013. Additional information on the Town’s long-term
obligations can be found in Note 7.
Governmental ActivitiesBusiness-type ActivitiesTotal
201420132014201320142013
General obligation bonds$ 8,325,000 $ 8,550,000 $ - $ - $ 8,325,000 $ 8,550,000
Revenue bonds 68,443,000 78,335,000 1,343,000 - 69,786,000 78,335,000
Special assessment bonds 18,488,000 19,926,000 - - 18,488,000 19,926,000
Loan payable - - 4,042,278 4,264,574 4,042,278 4,264,574
Compensated absences 935,957 888,142 73,315 59,408 1,009,272 947,550
Total$ 96,191,957 $ 107,699,142$5,458,593$4,323,982$101,650,550$112,023,124
19
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2014
ECONOMIC FACTORS ANDNEXT YEAR’S BUDGET AND RATES
Several key revenues like sales taxes, State shared revenues, building permits and planning fees
increased modestly during the fiscal year. Although, these key revenue sources appear to be
improving, the Town anticipates a slow recovery for at least the next fiscal year. In order to help
better guide future decisions, the Town has maintained the investment planning concept. This plan
is based on economic analysis that projects a slow, multi-year recovery. As a result, the Town
adopted a fiscal year 2014-15 budget which anticipates slightly increased revenue projections and
will require a focus on the maintenance of essential services and programs in the development of
future budgets.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a
general overview of the Town’s finances and to demonstrate the Town’s accountability for the
resources it receives. If you have questions about this report or need additional information,
contact the Finance Department, Town of Marana, Arizona at 11555 West Civic Center Drive,
Marana, Arizona 85653, or visit www.marana.com.
20
BASIC FINANCIAL STATEMENTS
21
This page intentionally left blank
22
GOVERNMENT-WIDE FINANCIAL STATEMENTS
23
This page intentionally left blank
24
TOWN OF MARANA, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2014
Governmental Business-type
ActivitiesActivitiesTotal
ASSETS
Current assets:
Cash and cash equivalents$ 51,698,269 $ 4,308,730 $ 56,006,999
Accounts receivable1,604,894 962,263 2,567,157
Interest receivable 15,018 - 15,018
Due from other governments5,033,265-5,033,265
Internal balances 452,352 (452,352) -
Prepaid items 63,354 153,636 216,990
Total current assets 58,867,152 4,972,277 63,839,429
Noncurrent assets:
Accounts receivable 17,493,643 - 17,493,643
Restricted cash and investments 8,548,612 292,388 8,841,000
Internal balances2,509,831(2,509,831)-
Capital assets not depreciated 13,488,790 9,106,183 22,594,973
Capital assets (net of depreciation)252,185,433104,047,509356,232,942
Total noncurrent assets 294,226,309 110,936,249 405,162,558
Total assets 353,093,461115,908,526469,001,987
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding238,732-238,732
Total deferred outflows of resources
238,732-238,732
LIABILITIES
Current liabilities:
Accounts payable 1,483,517 320,878 1,804,395
Accrued payroll and employee benefits 846,444 69,332 915,776
Unearned revenue 422,930 - 422,930
Deposits held for others1,049,014579,8991,628,913
Due to other government114,428224,045338,473
Accrued interest payable2,299,46159,987 2,359,448
Compensated absences 842,361 65,983 908,344
Loan payable - 201,048 201,048
General obligation bonds - CFD240,000-240,000
Special assessment bonds - TRFID1,242,000-1,242,000
Revenue bonds1,959,978-1,959,978
Total current liabilities 10,500,133 1,521,172 12,021,305
Noncurrent liabilities:
Compensated absences93,5967,332100,928
Loan payable-3,841,2303,841,230
General obligation bonds - CFD8,085,000-8,085,000
Special assessment bonds - TRFID17,246,000-17,246,000
Revenue bonds69,699,0301,343,00071,042,030
Total non-current liabilities95,123,6265,191,562100,315,188
Total liabilities 105,623,7596,712,734112,336,493
NET POSITION
Net investment in capital assets189,170,947107,768,414296,939,361
Restricted for:
Capital projects25,212,786-25,212,786
Debt service27,669,905292,38827,962,293
General government1,273,812-1,273,812
Public safety1,615,040-1,615,040
Highways and streets2,805,807-2,805,807
Economic and community development242,839-242,839
Unrestricted(282,702)1,134,990852,288
Total net position$ 247,708,434$ 109,195,792$ 356,904,226
The notes to the financial statements are an integral part of this statement.
25
TOWN OF MARANA, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2014
Program Revenues
Operating Capital Grants
Charges for Grants and and
Functions/Programs ExpensesServicesContributionsContributions
Primary Government
Governmental activities:
General government$ 10,662,236$ 941,001$ 447,512$ -
Public safety 12,134,034 - 1,092,012 16,604
Highways and streets 19,052,740 - 2,286,488 7,607,196
Health and welfare23,371-20,272-
Economic and community
development
4,690,466 3,386,191 586,706 1,542,881
Culture and recreation3,130,770199,7199,2851,101,151
Interest on long-term debt 4,542,970 - - -
Total governmental activities 54,236,587 4,526,911 4,442,275 10,267,832
Business-type activities:
Water5,244,262 3,765,960 - 1,936,759
Wastewater2,756,375834,319-596,948
Airport1,197,076248,319--
Total business-type activities 9,197,713 4,848,598 - 2,533,707
Total primary government$ 63,434,300$ 9,375,509$ 4,442,275$ 12,801,539
General revenues:
Taxes:
Sales taxes
Property taxes
Franchise taxes
State shared revenues, unrestricted
Investment income
Miscellaneous
Transfers
Total general revenues and transfers
Changes in net position
Net position, beginning of year
Net position, end of year
The notes to the financial statements are an integral part of this statement.
26
Net (Expense) Revenue and Changes in Net Position
Governmental Business-type
ActivitiesActivitiesTotals
$ (9,273,723)$ -$ (9,273,723)
(11,025,418) - (11,025,418)
(9,159,056) - (9,159,056)
(3,099)-(3,099)
825,312 - 825,312
(1,820,615)-(1,820,615)
(4,542,970) - (4,542,970)
(34,999,569) - (34,999,569)
- 458,457 458,457
-(1,325,108)(1,325,108)
-(948,757)(948,757)
- (1,815,408) (1,815,408)
(34,999,569)(1,815,408)(36,814,977)
26,225,881 - 26,225,881
421,004 - 421,004
377,069-377,069
8,272,540 - 8,272,540
170,8121,446172,258
854,47738,840893,317
(2,384,358) 2,384,358 -
33,937,4252,424,64436,362,069
(1,062,144) 609,236 (452,908)
248,770,578108,586,556357,357,134
$ 247,708,434$ 109,195,792$ 356,904,226
27
This page intentionally left blank
28
FUND FINANCIAL STATEMENTS
29
TOWN OF MARANA, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2014
Tangerine Farms
Improvement
Highway User District Debt
General FundRevenueService
ASSETS
Cash and cash equivalents$ 19,420,922 $ 2,797,894 $ 17,626
Accounts receivable185,900--
Special assessments receivable - - 18,443,977
Interest receivable9,075--
Development agreement receivable - - -
Due from other governments3,138,459214,521-
Due from other funds 3,208,673 - -
Prepaid items29,954--
Restricted cash and investments - - 482,224
Total assets$ 25,992,983$ 3,012,415$ 18,943,827
LIABILITIES
Accounts payable622,32994,613-
Accrued payroll and employee benefits819,73721,772-
Due to other funds---
Due to other governments114,428--
Deposits held for others398,967--
Unearned revenue375,169--
Total liabilities 2,330,630116,385-
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 18,443,977
Total deferred inflows of resources - - 18,443,977
FUND BALANCES (DEFICITS)
Nonspendable 2,539,785 - -
Restricted - 2,896,030 499,850
Unassigned 21,122,568 - -
Total fund balances (deficits) 23,662,353 2,896,030 499,850
Total liabilities, deferred inflow of
resources, and fund balances (deficits)
$ 25,992,983$ 3,012,415$ 18,943,827
The notes to the financial statements are an integral part of this statement.
30
Non-Major Total
2008 Bond Debt Governmental Governmental
ServiceFundsFunds
$ 2,268,544 $ 27,193,283 $ 51,698,269
-10,327196,227
- - 18,443,977
-5,94315,018
- 458,333 458,333
-1,680,2855,033,265
- - 3,208,673
-33,40063,354
4,589,332 3,477,056 8,548,612
$ 6,857,876$ 32,858,627$ 87,665,728
-766,5751,483,517
-4,935846,444
-246,490246,490
--114,428
-650,0471,049,014
-47,761422,930
-1,715,8084,162,823
- 1,061,062 19,505,039
- 1,061,062 19,505,039
- 33,400 2,573,185
6,857,876 30,520,081 40,773,837
- (471,724) 20,650,844
6,857,876 30,081,757 63,997,866
$ 6,857,876$ 32,858,627$ 87,665,728
31
This page intentionally left blank
32
TOWN OF MARANA, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
YEAR ENDED JUNE 30, 2014
Total governmental fund balances$63,997,866
Amounts reported for governmental activities in the Statement of Net
Position are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds:
Governmental capital assets$ 403,589,760
Less accumulated depreciation (137,915,537) 265,674,223
Long-term liabilities, including bonds payable, are not due and payable in the
current period and, therefore, are not reported in the governmental funds:
Compensated absences (935,957)
Revenue bonds payable(68,443,000)
General obligation bonds payable(8,325,000)
Special assessment bonds (18,488,000)
Accrued interest payable (2,299,461) (98,491,418)
Deferred items related to the issuance of bonds are amortized over the life
of the associated issue in the government-wide statements
Bond premium(3,282,522)
Bond discount 66,514
Deferred charge on refunding 238,732 (2,977,276)
Other long-term assets are not available to pay for current period
expenditures and, therefore, are reported as unavailable revenue in the funds.
Intergovernmental revenue1,061,062
Special assessments revenue18,443,97719,505,039
Net position of governmental activities$ 247,708,434
The notes to the financial statements are an integral part of this statement.
33
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2014
Tangerine Farms
Improvement
Highway User District Debt
General FundRevenueService
Revenues:
Sales taxes$ 20,333,285 $ - $ -
Property taxes---
Intergovernmental8,273,207 2,286,488 -
Licenses, fees & permits 3,932,108 - -
Fines, forfeitures & penalties635,869--
Charges for services 509,235 - -
Lease income 98,873 - -
Special assessments--2,175,964
Contributions 22,555 - -
Investment income 87,928 1,535 -
Miscellaneous 872,368 5,072 -
Total revenues 34,765,4282,293,0952,175,964
Expenditures:
Current -
General government 7,958,293 - -
Public safety11,397,243--
Highways and streets1,599,6852,402,712-
Economic and community development 4,325,492 - -
Culture and recreation2,934,671--
Capital outlay1,352,291944,516-
Debt service -
Principal retirement--1,438,000
Interest and fiscal charges--913,530
Bond issuance costs - - -
Total expenditures 29,567,6753,347,2282,351,530
Excess (deficiency) of revenues over
expenditures
5,197,753(1,054,133)(175,566)
Other financing sources (uses):
Face value of bonds issued---
Refunded bond escrow payment---
Transfers in---
Transfers out(2,453,592)--
Total other financing sources (uses)(2,453,592)--
Changes in fund balances 2,744,161(1,054,133)(175,566)
Fund balances (deficits), beginning of year 20,918,1923,950,163675,416
Fund balances (deficits), end of year$ 23,662,353$ 2,896,030$ 499,850
The notes to the financial statements are an integral part of this statement.
34
Non-Major Total
2008 Debt Governmental Governmental
ServiceFundsFunds
$ - $ 5,892,596 $ 26,225,881
-424,567424,567
- 2,172,011 12,731,706
- 2,616,502 6,548,610
-195,200831,069
- - 509,235
- - 98,873
--2,175,964
- 1,075,395 1,097,950
35 81,315 170,813
- 49,186 926,626
3512,506,77251,741,294
- 994,640 8,952,933
-555,23211,952,475
-211,7934,214,190
- 182,482 4,507,974
-259,8403,194,511
-2,156,4574,453,264
7,430,0001,470,00010,338,000
1,534,0662,074,3994,521,995
- 96,859 96,859
8,964,0668,001,70252,232,201
(8,964,031)4,505,070(490,907)
-6,493,0006,493,000
-(7,710,000)(7,710,000)
3,154,62811,000,59114,155,219
-(14,085,985)(16,539,577)
3,154,628(4,302,394)(3,601,358)
(5,809,403)202,676(4,092,265)
12,667,27929,879,08168,090,131
$ 6,857,876$ 30,081,757$ 63,997,866
35
This page intentionally left blank
36
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 JUNE 30, 2014
Net changes in fund balances - total governmental funds$(4,092,265)
Amounts reported for governmental activities in the Statement of Activities
are different because
Governmental funds report the portion of capital outlay for capitalized assets
as expenditures. However, in the Statement of Activities, the costs of those
assets are allocated over their estimated useful lives depreciation
expense.
Expenditures for capitalized assets$ 4,682,256
Less current year depreciation (16,844,470) (12,162,214)
Debt proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the Statement of Net Position.
Proceeds on refunding bonds (6,493,000)
Payment to escrow agent for refunding7,710,000
Special assessment bond retirement1,438,000
General obligation bond retirement225,000
Revenue bond principal retirement8,675,00011,555,000
Contributions of infrastructure assets are not recorded as revenues
in the governmental funds. 4,856,726
Some revenues and expenses reported in the Statement of Activities do not
require the use of current financial resources and therefore are not reported
as revenues or expenditures in governmental funds.
Accrued interest(179,624)
Developer contributions 458,333
Intergovernmental revenue (127,913)
Special assessments(1,294,371)
Compensated absences(47,815)
Disposal of asset(181,197)
Amortization of deferred charges153,196(1,219,391)
Change in net position in governmental activities$(1,062,144)
The notes to the financial statements are an integral part of this statement.
37
TOWN OF MARANA, ARIZONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2014
Enterprise Funds
WaterWastewaterAirportTotal
ASSETS
Current assets:
Cash and cash equivalents$ 4,029,251 $ 274,104 $ 5,375 $ 4,308,730
Accounts receivable808,27994,37059,614962,263
Prepaid items - - 153,636 153,636
Total current assets 4,837,530 368,474 218,625 5,424,629
Noncurrent assets:
Restricted cash 292,388 - - 292,388
Capital assets not depreciated 4,196,719 2,878,887 2,030,577 9,106,183
Capital assets (net of depreciation)18,879,45868,207,48416,960,567104,047,509
Total noncurrent assets 23,368,565 71,086,371 18,991,144 113,446,080
Total assets 28,206,09571,454,84519,209,769118,870,709
LIABILITIES
Current liabilities:
Accounts payable241,63955,12724,112320,878
Accrued payroll and employee benefits 51,809 11,587 5,936 69,332
Compensated absences 50,137 12,434 3,412 65,983
Due to other funds - - 452,352 452,352
Deposits held for others 579,899 - - 579,899
Due to other governments 224,045 - - 224,045
Loan payable - current 201,048 - - 201,048
Interest payable 59,987 - - 59,987
Total current liabilities 1,408,564 79,148 485,812 1,973,524
Noncurrent liabilities:
Due to other funds - - 2,509,831 2,509,831
Compensated absences5,5711,3823797,332
Bonds payable1,343,000--1,343,000
Loan payable3,841,230--3,841,230
Total non-current liabilities5,189,8011,3822,510,2107,701,393
Total liabilities 6,598,36580,5302,996,0229,674,917
NET POSITION
Net investment in capital assets17,690,89971,086,37118,991,144 107,768,414
Restricted for debt service292,388--292,388
Unrestricted3,624,443287,944(2,777,397)1,134,990
Total net position$ 21,607,730$71,374,315$16,213,747$109,195,792
The notes to the financial statements are an integral part of this statement.
38
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2014
Enterprise Funds
WaterWastewaterAirportTotal
Operating revenues:
Licenses, fees & permits$ -$ 8,977$ -$ 8,977
Charges for services 3,765,960817,082 248,319 4,831,361
Lease income -8,260 - 8,260
Miscellaneous 1,500 - 37,343 38,843
Total operating revenues 3,767,460 834,319 285,662 4,887,441
Operating expenses:
Personnel costs 1,263,561 299,513 148,759 1,711,833
Contractual services247,770364,45011,642623,862
Commodities 718,360 137,841 31,992 888,193
Other663,8133,68083,925751,418
Depreciation expense 1,045,791 1,950,891 920,759 3,917,441
Total operating expenses 3,939,2952,756,3751,197,077 7,892,747
Operating loss (171,835) (1,922,056) (911,415) (3,005,306)
Nonoperating revenues (expenses):
Investment income 1,446 - - 1,446
Interest expense (59,341) - - (59,341)
Loss on disposal of capital assets (1,217,540) - - (1,217,540)
Bond issuance costs(28,088)--(28,088)
Total nonoperating revenues
(expenses)
(1,303,523) - - (1,303,523)
Net loss before contributions, special
items, and transfers
(1,475,358)(1,922,056)(911,415)(4,308,829)
Development fees 651,288 596,948 1,248,236
Capital contributions 1,285,471--1,285,471
Transfers in-4,045,000-4,045,000
Transfers out(1,556,178)(104,464)-(1,660,642)
Changes in net position (1,094,777) 2,615,428 (911,415) 609,236
Net position, beginning of year 22,702,50768,758,88717,125,162108,586,556
Net position, end of year$ 21,607,730$ 71,374,315$ 16,213,747$ 109,195,792
The notes to the financial statements are an integral part of this statement.
39
TOWN OF MARANA, ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
Enterprise Funds
WaterWastewaterAirportTotal
Cash flows from operating activities:
Received from customers$ 3,689,297 $ 804,433 $ 84,600 $ 4,578,330
Payments to suppliers for goods and services (1,552,678) (525,389) (113,500) (2,191,567)
Payments to employees for services (1,250,659) (293,773) (144,698) (1,689,130)
Other receipts 1,500 17,237 37,343 56,080
Net cash provided by (used for) operating activities 887,460 2,508 (136,255) 753,713
Cash flows from non-capital activities:
Interfund borrowing-(3,616,095)186,702(3,429,393)
Transfers in-4,045,000-4,045,000
Transfers out(1,556,178)(104,464)-(1,660,642)
Net cash provided by (used for) non-capital activities (1,556,178) 324,441 186,702 (1,045,035)
Cash flows from capital activities and related financing
activities:
Development fees received 651,288 596,948 - 1,248,236
Bond proceeds 1,343,000 - - 1,343,000
Bond issuance costs (28,088) - - (28,088)
Principal payments(222,296)--(222,296)
Interest paid on debt (62,640) - - (62,640)
Acquisition and construction of capital assets (999,337) (649,793) (45,072) (1,694,202)
Net cash provided by (used for) capital activities 681,927 (52,845) (45,072) 584,010
Cash flows from investing activities:
Interest on investments 1,446 - - 1,446
Net cash provided by investing activities 1,446 - - 1,446
Net increase in cash and cash equivalents 14,655274,1045,375294,134
Cash and cash equivalents, beginning of year 4,306,984 - - 4,306,984
Cash and cash equivalents, end of year$ 4,321,639 $ 274,104 $ 5,375 $ 4,601,118
Reconciliation of operating loss to net cash provided by
operating activities:
Operating revenue (loss)$ (171,835)$ (1,922,056)$ (911,415)$ (3,005,306)
Adjustments to reconcile operating (loss) to net cash
provided by operating activities
Depreciation1,045,7911,950,891920,7593,917,441
Change in assets and liabilities:
(Increase) in accounts receivable(154,498)(14,257)(10,083)(178,838)
(Increase) decrease in prepaid items16,2461,608(153,636)(135,782)
Increase (decrease) in accounts payable77,265(19,418)14,05971,906
Increase in accrued payroll6,5821,2179978,796
Increase in compensated absences payable6,3204,5233,06413,907
Increase in deposits held for others31,626--31,626
Increase in due to other governments29,963--29,963
Net cash provided (used) by operating activities$ 887,460$ 2,508$ (136,255)$ 753,713
Noncash investing, capital and financing activities:
Capital contributions$ 1,285,471$ -$ -$ 1,285,471
Donated capital assets(1,217,541)--(1,217,541)
The notes to the financial statements are an integral part of this statement.
40
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
A.Reporting Entity
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 under a council-mayor form of government. All funds and entities related to the
Town that are controlled by the Mayor and Council are included in the annual financial
report. Control is determined on the basis of budget adoption, taxing authority, and the
ability to significantly influence operations and accountability for fiscal matters. The Town
provides a full range of services including general government, development and planning
services, legal, public safety, public works, and parks and recreation services.
In accordance with generally accepted accounting principles, these financial statements
present the Town and its component units, the Town of Marana Municipal Property
Corporation (MMPC), the Gladden Farms Community Facilities District (GFCFD), Gladden
Farms Community Facilities District II (GFCFD II), the Vanderbilt Farms Community Facilities
District (VFCFD), the Saguaro Springs Community Facilities District (SSCFD) and the
Tangerine Farms Road Improvement District (TFRID). The MMPC, GFCFD, GFCFD II,
VFCFD, SSCFD and TFRID are blended component units with the Town in these financial
statements as all five were 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, the MMPC only provides services to the Town.
The MMPC, GFCFD, GFCFD II, VFCFD, SSCFD and TFRID component units each have a June
30 year-end and are included in the 1997 Bond, 2003 Bond, 2004 Bond Debt Service Funds,
and 2008 Bond Debt Service Funds, the Gladden Farms Capital Projects and Debt Service
Funds, the Vanderbilt Farms Capital Projects and Debt Service Funds, the Saguaro Springs
Capital Projects Fund, the Tangerine Farms Improvement District Debt Service Fund, and
the Other Capital Projects Funds, respectively. Separate financial statements of the MMPC,
the GFCFD, the GFCFD II, the VFCFD, the SSCFD and the TFRID are not prepared on a
stand-alone basis.
B.Basis of Presentation
The basic financial statements include both the government-wide statements and fund-
based financial statements. The government-wide statements focus on the Town as a
whole, while the fund-based statements focus on major funds. Each presentation provides
valuable information that can be analyzed and compared between years and between
governments to enhance the usefulness of the information.
Government-wide Financial Statements
The government-wide financial statements (i.e. the statement of net position 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 units. For
41
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
the most part, the effect of internal activity has been removed from these statements.
These statements are to distinguish between the governmentaland business-type activities
of the Town. Governmental activitiesnormally are supported by taxes and
intergovernmental revenues, and are reported separately from business-type activities,
which are financed in whole or part by fees charged to external parties.
The statement of activities demonstrates the degree to which the direct expenses of a given
function of the Town’s governmental activities or segment of its business-type activities are
offset by program revenues. Direct expensesare those that are clearly identifiable with a
specific function or segment. The Town does not currently have an indirect cost allocation
system. However, the General Fund does allocate administrative charges to the Enterprise
funds to support general services used by those funds (like purchasing, accounting,
administration, etc.) These fees are included in the expense column on the Statement of
Activities. Program revenuesinclude 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.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses 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 Water Utility, Wastewater Utility, and Airport funds are
charges to customers for sales and services. Operating expenses for enterprise funds
include the cost of sales and services, administrative expenses, and depreciation of capital
assets. All revenues and expenses not meeting this definition are reported as non-operating
revenues and expenses.
Generally, the effect of interfund activity has been eliminated from the government-wide
financial statements to minimize the double counting of internal activities. However,
charges for interfund services provided and used are not eliminated if doing so would distort
the direct costs and program revenues reported by the departments concerned.
Fund Financial Statements
Fund statements provide information about the Town’s funds, including blended component
units. Separate statements are presented for the governmental and proprietary fund
categories. The emphasis of fund financial statements is on major governmental and
enterprise funds, each displayed in a separate column. All remaining governmental funds
are aggregated and reported as non-major funds.
42
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
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.
Highway User Revenue Fund – This fund accounts for excise fuel taxes which are
distributed to cities and towns based on a formula. A constitutional restriction requires
that these funds be used solely for street and highway purposes.
Tangerine Farms Improvement District Debt Service Fund – This fund accounts for the
accumulation of resources and payment of principal and interest on the Tangerine Farms
Road Improvement District Special Assessment Bonds.
2008 Bond Debt Service Fund – This fund accounts for the accumulation of resources
and payment of principal and interest on the series 2008 revenue bonds. The Town has
pledged Town sales tax revenue, state shared revenues, licenses, fees and permits
revenue, and fine, forfeiture and penalty revenues to make the required payments for
this series.
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.
Wastewater Fund – This fund is used to account for the financing and operation of the
Wastewater Utility.
Airport Fund – This fund is used to account for the financing and operation of the
Marana Airport.
C.Measurement FocusandBasis of Accounting
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 are recognized as revenue as soon all
eligibility requirements imposed by the grantor or provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focusand the modified accrual basis of accounting. Revenues are recognized
as soon as they are both measurable and available. Revenues are considered to be
availablewhen they are collectible within the current period or soon 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.
43
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. Debt service resources are provided during the current year for payment of
long-term debt principal and interest due early in the following year. Compensated
absences are recorded only when payment is due.
Sales 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 are not measurable until received in cash.
Property taxes are levied by community facility districts, which are component units of the
Town and collected by the Pima County Treasurer and special assessment property taxes
are levied and collected by the Town. All property taxes are levied no later than the third
Monday in August and are payable in two installments due October 1 of the current year
and March 1 of the subsequent year. Taxes become delinquent after the first business day
of November and May, respectively. Interest attaches on installments after the delinquent
date. Pursuant to ARS, a lien against assessed real and personal property attaches on the
first day of January preceding assessment and levy; however according to case law, an
enforceable legal claim to the asset does not arise.
Tangerine Farms Road Improvement District (a component unit) issued special assessment
bonds for infrastructure improvements. These bonds will be paid through assessments
made to the property owners within the Tangerine Farms Road Improvement District. The
Town is responsible for the collection of the assessments and the disbursement of funds to
retire the bonds. If a delinquency on an assessment occurs, the Town is required to cover
the delinquency with other resources until foreclosure proceeds are received.
Proceeds of long-term debt and acquisitions under capital lease agreements are reported as
other financing sources.
D.Cash and Cash Equivalents
For the purposes of the statement of cash flows, the Town considers all highly liquid
investments (including the funds' participation in the investment pool account, and
appropriate restricted assets) to be cash equivalents. Individual fund investments with a
maturity of three months or less when purchased are considered as cash equivalents.
E.Investments
Arizona Revised Statutes authorize the Town to invest public monies in the State 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 statue.
44
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
The State Board of Investment provides oversight for the State Treasurer’s pools. 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.
F.Restricted Assets
The trust indentures executed for the entire bond series issued require all cash and
investments for each bond series to be held on deposit by the trustee/fiscal agents. These
assets are restricted for payment of interest and trustee fees associated with the bond
issues, retirement of principal balances, and to finance various capital projects.
In addition, the State of Arizona required that assets obtained at the completion of criminal
proceedings by the Town's police department be given to Pima County for custodial
purposes. These assets are restricted for expenses that will enhance the Town's ability to
conduct police investigations.
G.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 statements and are offset by a reserve of fund balance.
H.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 uncollectible amounts.
I.Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported
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 governmental funds and after non-operating
revenues/expenses in proprietary funds.
J.Capital Assets
Capital assets, including public domain infrastructure such as roads, bridges, curbs and
sidewalks, lighting system, water distribution system and other assets that are immovable
45
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
and of value to the Town, are defined as assets with an initial individual cost of $5,000 or
more and an estimated useful life of more than one year. Such assets are 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. Capital assets are reported
in the applicable governmental or business-type activities columns in the government-wide
financial statements. No long-term assets or depreciation are shown in the governmental
funds financial statements.
The Town has chosen not to apply the modified approach to any network, system, or
subsystem of infrastructure assets.
The cost of normal maintenance and repairs that do not significantly add to the value of the
asset or materially extend the life of the asset are not capitalized. Major improvements are
capitalized and depreciated over the remaining useful life of the related capital assets.
Major outlays for capital assets and improvements are capitalized as projects are
constructed. Interest incurred during the construction phase of capital assets is included as
part of the capitalized value of the assets 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
Buildings40
Building improvements10-15
Pump stations, distribution systems,
equipment and improvements20-75
Public domain infrastructure20-50
Machinery, equipment, and assets
under capital lease4-10
K.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 position. Bond related charges and credits, such as premium discounts and issuance
costs, are deferred and amortized over the life of the bonds using the straight-line method.
In the fund financial statements, 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.
46
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
L.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. Generally, resources from the General Fund are
used to pay for compensated absences.
M.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.
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 governmental funds and after non-operating revenues/expenses in
proprietary funds.
N.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 period. Actual results could differ
from these estimates.
O.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.
P.Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate
section for deferred outflows of resources. This separate statement element,
represents a consumption of net position that applies to a future
47
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
period(s) and so will be recognized as an outflow of resources (expense/expenditure)
until then. The Town only has one item that qualifies for reporting in this category. It is the
deferred charge on refunding reported in the government-wide statement of net position. A
deferred charge on refunding results from the difference in the carrying value of refunded
debt and its reacquisition price. This amount is deferred and amortized over the shorter of
the life of the refunded or refunding debt.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element,
represents an acquisition of net position that applies to a
future period(s) and so will be recognized as an inflow of resources (revenue) until that
time. The Town has only one type of item, which arises only under a modified accrual basis
of accounting, that qualifies for reporting in this category. Accordingly, the item,
, is reported only in the governmental funds balance sheet.
Q.Flow Assumption
Sometimes the government will fund outlays for a particular purpose from both restricted
and unrestricted resources (the total of committed, assigned, and unassigned fund
balance). In order to calculate the amounts to report as restricted, committed, assigned,
and unassigned fund balance in the governmental fund financial statements a flow
assumption must be made about the order in which the resources are considered to be
applied. 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. Additionally, the Town funds certain programs by a combination of grants and
general revenues. The Town applies grant resources to such programs before using general
revenues.
NOTE 2 – FUND BALANCE CLASSIFICATIONS
In the fund financial statements, fund balance is reported in classifications that comprise a
hierarchy based on the extent to which the Town is bound to honor constraints on the
specific purposes for which amounts in those funds can be spent. The classifications of fund
balance are Nonspendable, Restricted, Committed, Assigned, and Unassigned.
Nonspendable and Restricted fund balances represent the restricted classifications and
Committed, Assigned, and Unassigned represent the unrestricted classifications. Committed
fund balance can be used only for specific purposes determined by formal action of Town
Council. Town Council is the highest level of decision-making authority for the town.
Commitments may be established, modified, or rescinded only through resolutions approved
by Town Council.
Nonspendable Fund Balance consists of funds that are not in a spendable form, such as
inventories and prepaids, or can be legally or contractually required to be maintained intact.
Restricted Fund Balance consists of funds that are externally imposed by creditors, grantors,
contributors, law or regulations of other governments, or by law imposed through
constitutional provisions or enabling legislation. Committed Fund Balance consists of funds
that can only be used for specific purposes pursuant to constraints imposed by formal action
of the Town’s highest level of decision-making authority. Assigned Fund Balance consists of
funds constrained by the Town’s intent to be used for specific purposes, but are neither
48
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 2 – FUND BALANCE CLASSIFICATIONS(Cont’d)
restricted nor committed, should be reported as assigned fund balance. This classification
of fund balance must be designated by the Town’s highest level of decision making
authority or a Town official that has been delegated the authority to assign funds.
Unassigned Fund Balance consists of the residual classification for the general fund. This
classification represents fund balance that has not been assigned to other funds and that
has not been restricted, committed, or assigned to specific purposes within the general
fund. The General Fund is the only fund that can report a positive unassigned fund balance
and any other governmental fund can report a negative fund balance. When both restricted
and unrestricted resources are available for specific expenditures, restricted resources are
considered spent before unrestricted resources.
As of June 30, 2014, the fund balance details by classification are listed below:
Tangerine
Farms
Highway Improvement Non-Major
General User District Debt 2008 Bond Governmental
FundRevenueService Debt Service Funds
Fund Balances:
Nonspendable:
Prepaid expenditures $ 29,954 $ - $ - $ - $33,400
Long-term due from
other funds2,509,831 ----
Restricted:
Courts- ---885,176
Tourism promotion - ---388,636
Police- ---1,565,445
Highways and
streets - 2,896,030 - --
Housing programs - - - -247,294
Capital projects- ---25,565,328
Debt service- -499,850 6,857,876 1,868,202
Unassigned:21,122,568 -- - (471,724)
Total fund balances:$23,662,353 $2,896,030 $ 499,850$ 6,857,876 $ 30,081,757
NOTE 3 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Individual Deficit Fund Balance – At June 30, 2014, the Local Transportation Assistance
Fund, the PAG Capital Fund, and the Pima County Bond Capital Fund, all non-major
governmental funds, reported deficits in fund balance of $90,223, $216,344, and $165,157,
respectively.
All funds with deficit fund balance account for the activity of cost/reimbursement programs.
The deficits are as a result of the timing difference between the expenditures and the
receipt of reimbursement. The Town expects reimbursement for these expenditures early in
fiscal year 2014-15, which are expected to eliminate the deficits.
49
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 4 - BUDGETARY CONTROL
Excess Expenditures Over Budget – At June 30, 2014, the Town had expenditures in
funds that exceeded the budget;however, this does not constitute a violation of any legal
provisions.
The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation that
is applicable to all local governments. This limitation, based on expenditures of the 1979-80
fiscal year, restricts the growth of expenditures based on a factor of increases in population
and inflation. Certain expenditures are held to be excludable. The limitation is set by the
State Economic Estimates Commission prior to April 1 of each year for the following fiscal
year. As allowed, the voters of the Town of Marana, on May 21, 2013, 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,
2014. This limitation provides for the Town to allow the Mayor and Council to adopt an
annual expenditure limitation each year with no expenditures held to be excludable.
Therefore, the annual expenditure limitation equals the adopted budget.
The Town establishes its fiscal year as the twelve-month period beginning July 1. The
departments submit to the Town manager a budget of estimated expenditures for the
ensuing fiscal year. The Town manager and each department head meet to discuss
mutually acceptable changes for the estimated expenditures for that department after which
the Town manager subsequently submits a budget of estimated expenditures and revenues
to the Town Council.
Upon receipt of the budget estimates, the Town Council will hold a public meeting to obtain
taxpayer comments. Concurrently, a copy of the budget estimates is published in a local
newspaper. The Town Council is prevented from legally enacting the budget through
passage of a resolution until 15 days have passed after the date of the public meeting.
Prior to July 1, the budget is legally enacted.
The Town Council formally adopts the budget and legally allocates the available monies for
the General Fund, the Highway User Revenue Fund, the Local Transportation Assistance
Fund, the Community Development Block Grant Fund, the Affordable Housing Revolving
Fund, the Local JCEF Fund, the Local Technology Enhancement Fund, the Fill the Gap Fund,
the Bed Tax Fund, the Other Special Revenue Fund, the Other Debt Service Fund, the
Gladden Farms CFD Debt Fund, the Transportation Fund, the ½ Cent Sales Tax Fund, the
Downtown Reinvestment Fund, the Impact Fee Funds, the Other Capital Projects Funds and
the Tangerine Farms Improvement District Fund. The enterprise funds, Water Department,
Wastewater Department and Airport Authority, are subject to flexible budgets.
The Town manager is authorized to transfer budgeted amounts within any department in
the General Fund or between funds for any other fund; however, any revisions that
reallocate budgeted amounts between departments within the General Fund or from the
budget line items labeled "contingency" must be approved by the Town Council.
50
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 5 - CASH AND INVESTMENTS
A.R.S. authorize the Town to invest public monies in the State Treasurer’s local government
investment pools, the County Treasurer’s 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 statutes do not include any
requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate
risk, or foreign currency risk for the Town’s investments. The State Board of Investment
provides oversight for the State Treasurer’s pools.
At June 30, 2014, the carrying amount of the Town’s deposits was $1,797,824 and the bank
balance was $2,259,026. The differences between the book and bank balances are due to
timing of certain transactions like deposits in transit and outstanding checks. In addition to
the regular timing of transactions, the Town had a transfer of $21,000,000 in transit
transferring funds from the General Operating Account to the Local Government Investment
Pool. The funds were removed from the General Operating Account on June 30, 2014, but
were not received in the Local Government Investment Pool until July 1, 2014.
Of the bank balance, $1,051,511 was covered by Federal depository insurance and
$1,207,515 was covered by collateral; no portion of the balance was uninsured and
uncollateralized. The Town had $1,560 in petty cash funds, change drawers and other
related items at year end. Additionally, the Town had deposits of $1,109,887 held by Pima
County in a fiduciary capacity.
At June 30, 2014, the Town’s investments consisted of the following.
Investment Maturities
(in Years)
Investment Type Fair Value Less than 1 1-5
Money Market Investments $ 10,747,494 $ 10,747,494 $ -
Repurchase Agreement 8,736,431 8,736,431 -
Federal Home Loan Mortgage Corp. 2,092,764 - 2,092,764
Federal National Mortgage Assn. 4,966,859 - 4,966,859
$ 19,483,925 $ 7,059,623
State Treasurer’s investment pool 7 14,395,18019 days average maturities
$ 40,938,728
. The Town does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to fair value losses arising from
increasing interest rates.
51
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 5 - CASH AND INVESTMENTS (Cont’d)
. The Town has no investment policy that would further limit its investment
choices. As of June 30, 2014, the Town’s investment in the State Treasurer’s investment
pool 7 are specifically limited to those securities that carry the full faith and credit of the
United States Government, having a weighted average credit rating of AAA by Standard &
Poor’s. The Town’s investments in U.S. Agencies were rated Aaa by Moody’s Investors
Service and AA+ by Standard & Poor’s.
The Town’s investment in the State Treasurer’s investment pool
represents a proportionate interest in the pool’s portfolio; however, the Town’s portion is
not identified with specific investments and is not subject to custodial credit risk.
. The Town places no limit on the amount it may invest in any
one issuer. More than 5 percent of the Town’s investments are in U.S. Agencies. These
investments are 17% of the Town’s total investments.
NOTE 6 - CAPITAL ASSETS
The following is a summary of the changes in capital assets for fiscal year ended June 30,
2014.
Beginning Ending
Balance Additions DeletionsBalance
Capital assets, not being depreciated:
Land $ 3,920,605 $ 172,800 $ - $ 4,093,405
Construction in progress 11,563,543 2,588,396 (4,756,554) 9,395,385
Total capital assets, not being depreciated15,484,148 2,761,196 (4,756,554) 13,488,790
Capital assets, being depreciated:
-
Buildings and improvements 45,537,781 936,056 46,473,837
Machinery, equipment, and other assets 19,009,233 1,554,158 (484,485) 20,078,906
Infrastructure 314,507,563 9,040,664- 323,548,227
Total capital assets being depreciated379,054,577 11,530,878(484,485) 390,100,970
Less accumulated depreciation for:
Buildings and improvements (11,754,564) (1,432,618)- (13,187,182)
Machinery, equipment, and other assets (17,651,099) (1,365,306)306,750 (18,709,655)
Infrastructure (91,972,154) (14,046,546) - (106,018,700)
Total accumulated depreciation(121,377,817) (16,844,470)306,750 (137,915,537)
Total capital assets, being depreciated, net 257,676,760 (5,313,592) 177,735 252,185,433
Governmental activities capital assets, net $273,160,908 $(2,552,396) $(4,934,289) $265,674,223
52
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 6 – CAPITAL ASSETS (Cont’d)
Governmental activities depreciation expense was charged to function/programs as follows.
Governmental Activities:
$ 1,089,810
General government
874,915
Public safety
14,057,255
Highways and streets
23,371
Health and welfare
10,709
Economic and community development
788,410
Culture and recreation
$ 16,844,470
Total depreciation expense –governmental activities
A summary of changes in capital assets for business-type activities is as follows.
Beginning Ending
Business-type Activities BalanceAdditions Deletions Balance
Capital assets, not being depreciated:
Land$ 4,493,811$ - $ - $ 4,493,811
Water rights2,994,627284,212 - 3,278,839
Construction in progress 1,060,586521,502 (248,555) 1,333,533
Total capital assets, not being depreciated8,549,024805,714 (248,555) 9,106,183
Capital assets, being depreciated:
(1,477,367)
Buildings, improvements and infrastructure114,821,3952,309,632115,653,660
Machinery, equipment, and other assets8,888,919112,883 (5,198) 8,996,604
Total capital assets being depreciated 123,710,3142,422,515 (1,482,565) 124,650,264
Less accumulated depreciation for:
Buildings, improvements and infrastructure(15,221,941)(3,294,331)259,826 (18,256,446)
Machinery, equipment, and other assets(1,728,396)(623,110)5,197 (2,346,309)
Total accumulated depreciation(16,950,337)(3,917,441)265,023 (20,602,755)
Total capital assets, being depreciated, net106,759,977(1,494,926) 1,217,542 104,047,509
Business-type activities capital assets, net $ 115,309,001$(689,212)$(1,466,097)$113,153,692
On November 5, 2013 the Town transferred ownership and operation of the North Marana Non-
Potable Water System to the Cortaro-Marana Irrigation District with Resolution 2013-099. The
value of assets deleted for this transfer was $1,477,367 and the related accumulated
depreciation was $259,826. The net amount of donated capital assets was $1,217,541.
Business-type depreciation expense was charged to functions/programs as follows.
Business-type Activities:
Airport $ 920,759
Water 1,950,891
Wastewater 1,045,791
Total depreciation expense –business-type activities $ 3,917,441
53
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 7 – LONG-TERM DEBT
A.NotesPayable
Business-type activities loan payable consists of a loan from the Water Infrastructure
Finance Authority (WIFA), the proceeds of which were used to acquire and construct various
water related infrastructure. The loans are to be repaid in annual principal payments, plus
semiannual interest payments, and a semiannual servicing fee.
During 2010, the Town obtained $5,250,000 in financing from WIFA for the acquisition and
construction of a new water infrastructure. As of year-end, the Town has drawn on
$4,690,128 of the loan and returned $559,872. The interest rate at June 30, 2014 on the
outstanding balance is 1.468 percent.
The following is a schedule by years of the debt service requirements for the loan as of
June 30, 2014.
Fiscal YearPrincipal Interest Total
2015$ 201,048 $ 57,865 $ 258,913
2016207,015 54,870 261,885
2017213,159 51,786 264,945
2018219,485 48,610 268,095
2019226,000 45,340 271,340
2020–2024 1,234,686 174,154 1,408,840
2025–2029 1,429,117 76,559 1,505,676
2030311,7682,288 314,056
Totals $ 4,042,278 $ 511,472 $ 4,553,750
B.Community Facilities District (CFD) General Obligation Bonds
Gladden Farms Community Facilities District (a component unit) issued general obligation
bonds for infrastructure improvements. The CFD general obligation bonds outstanding as
reported in governmental activities as of June 30, 2014, were as follows.
54
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 7 – LONG-TERM DEBT (Cont’d)
Outstanding
June 30, 2014
$2,105,000 CFD General Obligation Bonds, 2004 Series, due
in annual installments of $45,000 to $165,000; through
July 15, 2029; at a 5.0% to 6.5% interest rate. $ 1,730,000
$3,250,000 CFD General Obligation Bonds, 2006 Series, due
in annual installments of $70,000 to $395,000; through
July 15, 2031; at a 4.9% to 5.5% interest rate.
2,865,000
$3,075,000 CFD General Obligation Bonds, 2007 Series, due
in annual installments of $60,000 to $605,000; through
July 15, 2032; at a 4.4% to 5.45% interest rate. 2,750,000
$1,000,000 CFD General Obligation Bonds, 2010 Series, due
in annual installments of $10,000 to $665,000; through
July 15, 2033; at a 2.7% to 5.75% interest rate.
980,000
Total $ 8,325,000
Annual debt service requirements to maturity on the CFD general obligation bonds at June
30, 2014, are summarized as follows.
Year ending
June 30PrincipalInterestTotal
2015 $ 240,000 $ 457,903 $ 697,903
2016 250,000 445,273 695,273
2017 265,000 431,872 696,872
2018 280,000 417,568 697,568
2019 295,000 402,231 697,231
2020 – 2024 1,730,000 1,744,386 3,474,386
2025 – 2029 2,275,000 1,177,291 3,452,291
2030 - 20342,990,000 436,045 3,426,045
Totals $ 8,325,000 $ 5,512,569 $ 13,837,569
C.Tangerine Farms Road Improvement District Improvement Bonds
Tangerine Farms Road Improvement District (a component unit) issued special assessment
bonds for infrastructure improvements. These bonds will be paid through assessments
made to the property owners within the Tangerine Farms Road Improvement District. The
Town is responsible for the collection of the assessments and the disbursement of funds to
retire the bonds. If a delinquency on an assessment occurs, the Town is required to cover
the delinquency with other resources until foreclosure proceeds are received. The TFRID
special assessment bonds outstanding as reported in governmental activities as of June 30,
2014, were as follows.
55
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 7 – LONG-TERM DEBT (Cont’d)
Outstanding
June 30, 2014
$25,774,000 TFRIDSpecial Assessment Bonds, due in annual
installments of $951,000 to $1,965,000; through January 1, 2026;
at an interest rate of 4.6%. $ 18,488,000
Total $ 18,488,000
Annual debt service requirements to maturity on the TFRID special assessment bonds at
June 30, 2014, are summarized as follows.
Year ending
June 30Principal Interest Total
2015 1,242,000 849,137 2,091,137
2016 1,240,000 793,316 2,033,316
2017 1,297,000 736,276 2,033,276
2018 1,356,000 676,614 2,032,614
2019 1,419,000 614,238 2,033,238
2020-2024 8,132,000 2,030,348 10,162,348
2025-2026 3,802,000 264,316 4,066,316
Totals $ 18,488,000 $ 5,964,245 $ 24,452,245
D.RevenueBonds
The Town issued $6,493,000of pledged excise tax revenue and refunding obligation bonds
with an interest rate of 2.55% and issued $1,343,000 of water utility revenue refunding
obligation bonds (business-type activity) with an interest rate of 2.53%. The proceeds were
used to advance refund $7,710,000 of outstanding 1997 Series revenue bonds and 2004
Series revenue bonds, which had interest rates ranging from 5.0% to 5.25%. The net
proceeds of $8,210,706 (after a deposit of $500,706 and a payment of $126,000 in
underwriting fees and other issuance costs) were deposited in an irrevocable trust with an
escrow agent to provide funds for the future debt service payment on the refunded bonds.
As a result, the 1997 and 2004 Series revenue bonds are considered defeased and the
liability for the refunded bonds has been removed from the statement of net position.
The Town advance refunded the 1997 Series and 2004 Series revenue bonds to obtain an
economic gain (difference between the present values of the debt service payments on the
old and new debt) of $922,010.
The Town has issued revenue bonds for acquiring water systems, infrastructure upgrades,
the design and construction of the new municipal complex and to refund prior issuances.
These bonds are payable from the excise taxes collected by the Town and water utility
revenue. The revenue bonds outstanding as reported in governmental activities as of June
30, 2014 were as follows.
56
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 7 – LONG-TERM DEBT (Cont’d)
Outstanding June 30, 2014
Governmental Business- type
$8,175,000 Revenue Bonds, 1997 Series, due in bi-
annual installments of $105,000 to $300,000; through
July 1, 2015; at a 3.85% to 5.25% interest rate. $ 110,000
$8,675,000 Revenue and Refunding Bonds, 2004 Series,
due in bi-annual installments of $115,000 to
$320,000; through July 1, 2015; at a 3.0% to 5.25%
interest rate. 185,000
$31,090,000 Revenue Bonds, 2008 Series A, due in bi-
annual installments of $570,000 to $1,275,000;
through July 1, 2028; at a 4.0% to 5.25% interest
rate. 26,875,000
$34,780,000 Pledged Excise Tax Revenue and Revenue
Refunding Obligations, 2013 Series, due in annual
installments of $315,000 to $2,570,000; through July
1, 2033; at a 2.0% to 5.0% interest rate. 34,780,000
$6,493,000 Pledged Excise Tax Revenue and Revenue
Refunding Obligations, 2014 Series, due in annual
installments of $353,000 to $735,000; through July 1,
2025; at a 2.55% interest rate. $6,493,000
$1,343,000 Water Utility Revenue Refunding
Obligations, 2014 Series, due in annual installments of
$129,000 to $197,000; through July 1, 2022; at a
2.53% interest rate. $ 1,343,000
Total $ 68,443,000 $ 1,343,000
Annual debt service requirements to maturity on revenue bonds at June 30, 2014, are
summarized as follows.
GovernmentalActivities Business-type Activities
Year ending
June 30PrincipalInterest Principal Interest
2015$ 1,930,000 $ 3,158,235 $ -$ 19,632
2016 2,423,000 2,948,571 129,000 32,346
2017 3,360,000 2,836,238 136,000 28,994
20183,510,000 2,692,495 139,000 25,515
20193,914,000 2,537,157 179,000 21,492
2020-2024 21,944,000 10,163,703 760,000 39,038
2025-2029 23,492,000 4,732,040 - -
2030-2034 7,870,000 988,200 - -
Totals $ 68,443,000 $ 30,056,639 $ 1,343,000 $ 167,017
57
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 7 – LONG-TERM DEBT (Cont’d)
E.Pledged Revenues
The Town has pledged certain future revenues to repay specific bonded debt as follows.
The Town has pledged future excise tax revenues to repay $89.2 million in Excise Tax
Revenue Bonds issued in 1997, 2004, 2008, 2013, and 2014. The various bonds were issued
for the construction of the municipal complex, the acquisition of certain water systems,
acquisition of the Marana Wastewater Reclamation Facility, infrastructure upgrades and to
refund prior debt issuances. At year end, $68.4 million in bonds remain outstanding to be
repaid by future excise tax revenues and the net revenues available for service of this debt
were $37.7 million. The debt principal and interest paid on this debt during fiscal year 2014
was $11.8 million (31% of available net pledged revenues).
In addition, the Town has pledged future water utility revenues to repay a $4.7 million
Water Infrastructure Financing Authority loan and a $1.3 million Revenue Refunding Bond.
The loan was issued for the acquisition of well sites and the construction of certain
infrastructure. The bond was issued in 2014 to refund prior debt issuances. At year end,
$5.4 million remains outstanding to be repaid by future water revenues. For the fiscal year
ended June 30, 2014, the net revenues available for service of this debt were $3.9 million.
The debt principal and interest paid on this debt during fiscal year 2014 was $281,636.
F.Changes in Long-term Debt
The following is a summary of changes in long-term debt activity for fiscal year ended
June 30, 2014.
Beginning Due Within
BalanceAdditionsReductionsEnding BalanceOne Year
Governmental
activities:
General obligation bonds$ 8,550,000 $ - $ (225,000) $ 8,325,000 $ 240,000
Revenue bonds 78,335,000 6,493,000 (16,385,000) 68,443,000 1,930,000
Compensated absences 888,142 958,347 (910,532) 935,957 842,361
Special assessment
bonds 19,926,000 - (1,438,000) 18,488,000 1,242,000
Deferred bond premium 3,455,905 - (173,383) 3,282,522 34,412
Deferred bond discount (70,948) - 4,434 (66,514) (4,434)
Total$ 111,084,099$ 7,451,347$ (19,127,481)$ 99,407,965 $ 4,284,339
Business-type
activities:
Loan payable$ 4,264,574 $ -$ (222,296) $ 4,042,278 $ 201,048
Revenue bonds - 1,343,000 - 1,343,000 -
Compensated absences 59,408 76,793 (62,886) 73,315 65,983
Total$ 4,323,982 $ 1,419,793$ (285,182) $ 5,458,593 $ 267,031
58
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 8 – DEFERRED AMOUNTS
Governmental funds report deferred inflows of resources for revenue due and receivable but
not considered to be available to liquidate liabilities of the current period. Governmental
funds also defer revenue recognition in connection with resources that have been received,
but not yet earned. At the end of the current fiscal year, the various components of
deferred amounts reported in the governmental funds were as follows.
Deferred revenue Unavailable Unearned
$ -
Program revenues (General Fund) $ 375,169
Intergovernmental (Non-Major governmental
funds)1,061,06247,761
Special assessments (Tangerine Farms
Improvement District Debt Service Fund) 18,443,977-
Total deferred amounts for governmental funds $ 19,505,039 $ 422,930
NOTE 9 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Due to/from other funds:
At June 30, 2014, several funds were involved in interfund borrowing arrangements with the
General Fund due to insufficient resources available in the funds to cover expenditures.
Through the fiscal year 2014-2015, these interfund borrowing will be eliminated as sufficient
resources become available. Listed below is a summary of the interfund borrowing
transactions.
Due From
Non-Major
Governmental Airport
Due To Funds FundTotal
General Fund$ 246,490 0$2,962,183 0 $3,208,673
Total $ 246,490 $2,962,183 $3,208,673
Interfund transfers:
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. These were direct
transfers between funds and will not be eliminated as sufficient resources become available
in the receiving funds. Listed below is a summary of transfers between funds.
Transfers In
2008 Debt Non-Major
Service Governmental Wastewater
Transfer OutFundFundsFundTotal
General Fund $ 395,018 $ 2,058,574 $ - $2,453,592
Non-Major Governmental 2,655,146 7,385,839 4,045,000 14,085,985
Water Fund - 1,556,178 - 1,556,178
Wastewater Fund104,464 - 104,464
Total $3,154,628 $11,000,591$4,045,000 $18,200,219
59
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS
All full-time and permanent part-time employees participate in one of four different
retirement plans. With the exception of public safety personnel, police dispatchers and
elected officials, all other employees participate in the Arizona State Retirement System
(ASRS). Certified public safety personnel participate in the Public Safety Retirement
Systems (PSPRS). Police dispatch and communication staff participate in the Corrections
Officer Retirement Plan (CORP). The Town’s Mayor and Council Members participate in the
Elected Officials’ Retirement Plan (EORP).
A. Public Safety Personnel Retirement System
All of the Town's full-time police officers are covered by the Arizona Public Safety Personnel
Retirement System (PSPRS), which is an agent multiple-employer defined benefit plan.
PSPRS was established by Title 38, Chapter 5, Article 4 of the Arizona Revised Statutes to
provide pension benefits for public safety personnel who are regularly assigned hazardous
duty as employees of the State of Arizona or one of its political subdivisions. The PSPRS is
jointly administered by the fund manager and participating local boards. The fund manager
is a five-member board appointed by the Governor and the State Legislature. The fund
manager is responsible for establishing contribution rates in accordance with an actuarial
study. The PSPRS provides retirement benefits, as well as death and disability and health
insurance premium benefits. PSPRS issues a publicly available financial report that includes
financial statements and required supplemental information. This report may be obtained
by writing to the PSPRS 3010 E Camelback Rd, Ste 200, Phoenix, AZ 85016 or by calling
(602) 255-5575.
For the fiscal year ending June 30, 2014, the required employee contribution rate was
10.35% of the members’ annual covered payroll; the Town was required to contribute at
the actuarially determined rate of 19.16% (18.02% retirement and 1.14% health insurance
premium) of the covered payroll.
60
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
The Town’s pension cost for the year ending June 30, 2014, the date of the most recent
actuarial valuation and related information are summarized as follows:
Contribution rates:
Town – retirement
18.02%
Town – health insurance premium
1.14%
Plan members
7.65%
Annual pension cost
$884,291
Contributions made:
Retirement
$831,677
Health insurance premium
$52,614
Actuarial valuation date
June 30, 2012
Actuarial cost method
Entry Age Normal
Actuarial assumptions:
Investment rate of return
8.00%
Projected salary increases 5.0% - 9.0%
Cost-of-living adjustments
None
Amortization method
Level percent-of-pay closed
Remaining amortization period 24years for underfunded actuarial
accrued liability, 20 years for excess
Asset valuation method 7-year Smoothed market value
80%/120% market
Trend Information
Annual Pension Percent Net Pension
Fiscal Year Ended June 30, Cost (APC) Contributed Obligation
2014
Pension $831,677 100.0 -
Health $52,614 100.0 -
2013
Pension $778,039 100.0 -
Health $56,830 100.0 -
2012
Pension $ 644,505 100.0 -
Health $ 53,783 100.0 -
61
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
SCHEDULE OF FUNDING PROGRESS
An analysis of funding progress for each of the agent plans as of the most recent actuarial
valuations follows.
Pension Plan
(6)
Unfunded
AAL as a
(1) (2) (3) (5) Percentage
Actuarial Actuarial Percent (4) Annual of Covered
Valuation Value of Accrued Funded Unfunded Covered Payroll
Date June 30Assets Liability (AAL)(1)/(2) AAL (2)-(1) Payroll(4)/(5)
$4,772,288
2012 $13,200,211 $17,972,49973.4%$4,512,699 105.8%
$4,157,714
2011 $11,606,757 $15,764,47173.6%$4,254,314 97.7%
$3,407,378
2010 $10,545,546 $13,952,92475.6%$4,345,965 78.4%
Health Insurance Plan
(6)
Unfunded
AAL as a
(1) (2) (3) (5) Percentage
Actuarial Actuarial Percent (4) Annual of Covered
Valuation Value of Accrued Funded Unfunded Covered Payroll
Date June 30Assets Liability (AAL)(1)/(2) AAL (2)-(1) Payroll(4)/(5)
2012 $0 $611,3870.00%$611,387 $4,512,699 13.55%
2011 $0 $590,8430.00%$590,843 $4,254,314 13.89%
2010 $0 $459,5310.00%$459,531 $4,345,965 10.57%
Annual Required Contribution – Health Insurance Plan
Valuation Fiscal Year Actuarial
Date Ended Accrued Dollar
June 30, June 30, Normal Cost (a) Liability (b) Total (a+b) Amount
20122014 .42% .72% 1.14% $56,718
20112013 .51% .75% 1.26% $59,099
20102012 .67% .54% 1.21% $58,530
The Health Insurance Subsidy payments reported for valuation year 2012 were $14,093.
62
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
B. Arizona State Retirement System
All full-time and permanent part-time employees not in the Public Safety Retirement
System, Corrections Officers Retirement System or Elected Officials Retirement System are
eligible to participate in the Arizona State Retirement System (ASRS) a cost sharing
multiple-employer defined benefit plan. The ASRS was established by the State of Arizona
to provide pension benefits for employees of the State and employees of participating
political subdivisions and school districts. The ASRS is administered in accordance with the
provisions of A.R.S. Title 38, Chapter 5, Article 2. The ASRS provides for retirement, death,
long-term disability, survivor, and health insurance premium benefits. ASRS issues a
publicly available financial report that includes financial statements and required
supplementary information. The report may be obtained by writing to ASRS, 3300 N.
Central Avenue, P.O. Box 33910, Phoenix, Arizona 85067-3910 or by calling 602-240-2000
or 1-800-621-3778.
Funding Policy
Cost-sharing plan - Arizona Revised Statutes provide statutory authority for determining the
employees’ and employers’ contribution amounts. The ASRS funding policy providesfor
actuarially determined employer contributions at rates which will provide assets sufficient to
pay benefits when due.
For the fiscal year ending June 30, 2014, the required contribution rate of members was
11.54% (11.3% retirement and 0.24% long-term disability) and the Town was required by
statute to contribute at an actuarially determined rate of 11.54% (10.7% retirement, 0.60%
health insurance premium, and 0.24% long-term disability). The Town’s contributions to
ASRS for the year’s ended June 30, 2014, 2013, and 2012 were $1,351,867, $1,273,770,
and $1,192,032, respectively, equal to the required contributions for each year.
The Town’s contribution for the current and two proceeding year’s, all of which were equal
to the required contributions are as follows:
Years ended Health Long-term
June 30,RetirementInsurance Disability Total
2014$ 1,253,464$ 70,288$ 28,115$ 1,351,867
20131,172,00674,32227,4421,273,770
2012 1,095,471 69,92426,6381,192,032
C. Corrections Officers Retirement Plan
All full-time and permanent part-time employees employed as police dispatchers or
communications operators are eligible to participate in the Corrections Officers Retirement
Plan (CORP), a multiple-employer cost-sharing defined benefit plan. The CORP is governed
by the Corrections Officers Retirement System Board according to the provisions of A.R.S.
Title 38, Chapter 5, Article 6. Benefits are established by state statute and generally
provide retirement, death, long-term disability, survivor, and health insurance premium
benefits. CORP issues a publicly available report that includes financial statements and
required supplementary information. The report may be obtained by writing to CORP, 3010
E Camelback Rd, Ste 200, Phoenix, AZ 85016 or by calling (602) 255-5575.
63
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS (Cont’d)
The contribution requirements of plan members are established and may be amended by
Arizona State statute. The CORP funding policy providesfor actuarially determined
employer contributions at rates which will provide assets sufficient to pay benefits when
due. For the fiscal year ending June 30, 2014, the required contribution rate of members
was 7.96%; the Town’s contribution rate was 11.19%. The Town’s contributions to CORP
for the fiscal years ended June 30, 2014, 2013, and 2012 were $51,039, $34,906, and
$27,800, respectively, which were equal to the required contributions for those years.
D. Elected Officials’ Retirement Plan
The Town’s Mayor and Council Members are eligible to participate in the Elected Officials’
Retirement Plan (EORP), a multiple employer cost-sharing defined benefit plan. The EORP
is governed by the Public Safety Retirement System Board according to the provisions of
A.R.S. Title 38, Chapter 5, Article 3. Benefits are established by the State statute and
generally provide retirement, death, long-term disability, survivor, and health insurance
premium benefits. EORP issues a publicly available financial report that includes financial
statements and required supplementary information. The report may be obtained by
writing to EORP, 3010 E Camelback Rd, Ste 200, Phoenix, AZ 85016 or by calling (602) 255-
5575.
Incorporated city or town employers are required to contribute an amount sufficient to meet
both the normal cost of a level-cost method attributable to the EORP, plus the amount
required to amortize the unfunded accrued liability for the employer. Such amount is to be
determined each year by actuarial valuation and paid as a level percent of compensation.
The contribution requirements for plan members are established and may be amended by
the fund manager, a five-member board. For the fiscal year ending June 30, 2014, the
required contribution rate of members was 13%; the Town’s contribution rate was 39.62%
for the period of July 1, 2013 through December 31, 2013. The Town’s contribution rate
was 23.50% for the period of January 1, 2014 through June 30, 2014. The Town’s
contributions to EORP for the fiscal years ended June 30, 2014, 2013 and 2012 were
$38,431, $43,518, and $40,861, respectively, which were equal to the required
contributions for those years.
NOTE 11 - 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 basic coverage is for $2,000,000
per occurrence on a claims-made purpose. Excess coverage is for an additional
$12,000,000 per occurrence on a follow form, claims-made basis. The Arizona Municipal
Risk Retention Pool is structured such that member premiums are based on an actuarial
review that will provide adequate reserves to allow the pool to meet its expected financial
obligations. The pool has the authority to assess its member’s additional premiums should
reserves and annual premiums be insufficient to meet the pool's obligations.
The Town continues to carry commercial insurance for all other risks of loss, including
64
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 11 - RISK MANAGEMENT (Cont’d)
workers’ compensation and employee health and accident insurance. Settled claims
resulting from these risks have not exceeded commercial insurance coverage in any of the
past three fiscal years.
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.
Significant Contractual Commitments
At the end of fiscal year 2014, the Town was obligated to $3.8 million in significant
contractual commitments for transportation, park, water facility, and wastewater facility
related construction projects. Tangerine Corridor improvements and Constructed Recharge
for Effluent project accounted for $3.6 million in commitments. Other transportation and
park related projects accounted for $143,896.
NOTE 13 - LEASING ARRANGEMENTS
Land – State of Arizona
The Town has assigned and assumed a non-cancelable 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 in the annual rent payments
for each succeeding five year period. In conjunction with the Town assuming the long-term
operating lease, a developer signed a non-cancelable agreement to reimburse the Town the
annual rental payment for either a minimum of twenty years or until the first twelve
consecutive months the developer generates more than $1,000,000 in resort sales tax to
the Town from the development project known as "Dove Mountain".
This threshold was reached on June 30, 2011, and therefore the developer ceased
reimbursing the Town for the annual rent payment. These leases provide for payments of
minimum annual rentals as follows, excluding real estate taxes, common area charges,
management fees, and sales taxes.
65
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 13 - LEASING ARRANGEMENTS (Cont’d)
Minimum annual rentals above excludes annual rental under the remaining renewal options
as of June 30, 2014. Rent expense under the above leases for fiscal 2013-14 aggregated
$522,720.
66
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
NOTE 14 – SUBSEQUENT EVENTS
Bond Call:
In July 2014, the Tangerine Road Farms Improvement District, a component unit of the
Town, retired $57,000 of the outstanding bonds through an early bond call. The debt was
issued as special assessment bonds for infrastructure improvements and is paid by the
property owners within the Tangerine Road Farms Improvement District. The bonds were
issued at an interest rate of 4.6%.
Self-insured Health Insurance:
In July 2014, the Town moved from a fully insured plan to a self-insured plan. The goal of
moving to the self-insured plan was to maintain flexibility over plan design and, possibly,
maximize value of benefits while looking to control costs. The Town worked closely with our
benefits consultant to establish the self-insurance plan.
67
This page intentionally left blank
68
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES – BUDGET AND ACTUAL
(REQUIRED SUPPLEMENTARY INFORMATION)
69
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Variance -
Positive
OriginalFinalActual(Negative)
Revenues:
Sales taxes$ 19,498,321 $ 19,498,321$ 20,333,285 $ 834,964
Intergovernmental8,244,2338,244,2338,273,20728,974
Licenses, fees & permits 3,195,925 3,195,925 3,932,108 736,183
Fines, forfeitures & penalties 625,000 625,000 635,869 10,869
Charges for services 364,626 364,626 509,235 144,609
Lease income 134,000 134,000 98,873 (35,127)
Contributions 20,650 20,650 22,555 1,905
Investment income 100,000 100,000 87,928 (12,072)
Miscellaneous496,820496,820872,368375,548
Total revenues 32,679,575 32,679,575 34,765,428 2,085,853
Expenditures:
General government:
General government 2,160,508 1,904,668 826,910 1,077,758
Town council 289,568 289,568 266,946 22,622
Town clerk254,217259,217256,766 2,451
Town manager955,416951,416791,978 159,438
Human resources644,699644,699639,387 5,312
Facilities 664,902 669,786 629,002 40,784
Finance948,294948,294896,66051,634
Legal737,238737,238703,49833,740
Technology services2,057,7192,057,7191,980,46577,254
Municipal courts988,884988,884966,68122,203
Public Safety:
Police 10,589,408 10,664,408 10,661,134 3,274
Building safety 802,707 802,707 736,109 66,598
Highways and streets
Public works1,608,4281,605,8941,599,6856,209
Economic and community development
Development services3,905,8593,897,8593,814,00283,857
Community development374,484374,484344,43630,048
Town manager177,471181,471167,054
Culture and recreation
Parks and recreation 3,016,619 3,016,619 2,934,671 81,948
Capital outlay1,298,032 1,479,522 1,352,291127,231
Total expenditures 31,474,45331,474,45329,567,6751,892,361
Excess (deficiency) of revenues over
expenditures 1,205,1221,205,1225,197,7533,992,631
Other financing sources (uses):
Transfers out(2,725,636)(2,725,636)(2,453,592)272,044
Total other financing sources
(uses)(2,725,636)(2,725,636)(2,453,592)272,044
Changes in fund balances(1,520,514)(1,520,514)2,744,1614,264,675
Fund balances, beginning of year--
20,918,19220,918,192
Fund balances, end of year$ (1,520,514)$ (1,520,514)$ 23,662,353$ 25,182,867
See accompanying notes to this schedule.
70
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - HIGHWAY USER REVENUE FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Variance -
Positive
OriginalFinalActual(Negative)
Revenues:
Intergovernmental$ 2,327,150 $ 2,327,150$ 2,286, 488$ (40, 662)
Investment income7,5007,5001,535(5,965)
Miscellaneous - - 5,072 5, 072
Total revenues 2,334,6502,334,6502,293,095(41,555)
Expenditures:
Current -
Highways and streets 2,750,129 2,805,129 2,402, 712 402,417
Capital outlay 1,737,482 1,682,482 944,516 737,966
Total expenditures 4,487,611 4,487,611 3,347, 228 1,140, 383
Excess (deficiency) of revenues over
expenditures (2,152,961) (2,152,961) (1, 054,133) 1,098, 828
Fund balances, beginning of year--3,950,1633,950,163
Fund balances, end of year$ (2,152,961) $ (2,152,961) $ 2,896, 030$ 5,048, 991
71
TOWN OF MARANA, ARIZONA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2014
NOTE 1 - BUDGETARY BASIS OF ACCOUNTING
The adopted budget of the Town is prepared on a basis of accounting consistent with
accounting principles generally accepted in the United States of America.
72
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
73
This page intentionally left blank
74
OTHER MAJOR GOVERNMENTAL FUNDS
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – BUDGET AND ACTUAL
75
This page intentionally left blank
76
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - TANGERINE FARMS
IMPROVEMENT DISTRICT DEBT SERVICE
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Variance -
Positive
OriginalFinalActual(Negative)
Revenues:
Special assessments$ 2,212,507$ 2,212,507$ 2,175,964$ (36,543)
Total revenues 2,212,507 2,212,507 2,175,964 (36,543)
Expenditures:
Debt service -
Principal retirement 1,298,000 1,298,000 1,438,000 (140,000)
Interest and fiscal charges914,507914,507913,530977
Total expenditures 2,212,507 2,212,507 2,351,530 (139,023)
Excess (deficiency) of revenues
over expenditures
- - (175,566) (175,566)
Fund balances, beginning of year --675,416675,416
Fund balances, end of year$ - $ - $ 499,850 $ 499,850
77
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - 2008 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2014
Budgeted Amounts
Variance -
Positive
OriginalFinalActual(Negative)
Revenues:
Investment income$ - $ -$ 35 $ 35
Total revenues--3535
Expenditures:
Debt service -
Principal retirement1,465,0001,465,0007,430,000(5,965,000)
Interest and fiscal charges 1,689,628 1,689,628 1,534,066 155,562
Total expenditures 3,154,628 3,154,628 8,964,066 (5,809,438)
Excess (deficiency) of revenues over
expenditures (3,154,628) (3,154,628) (8,964,031) (5,809,403)
Other financing sources:
Transfers in3,154,6283,154,6283,154,628-
Total other financing sources 3,154,6283,154,6283,154,628-
Change in fund balances--(5,809,403)(5,809,403)
Fund balances, beginning of year --12,667,27912,667,279
Fund balances, end of year$ - $ - $ 6,857,876 $ 6,857,876
78
NON-MAJOR GOVERNMENTAL FUNDS
79
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS -
BY FUND TYPE
JUNE 30, 2014
Total
Non-Major
Special Governmental
RevenueCapital ProjectsDebt ServiceFunds
ASSETS
Cash and cash equivalents$ 2,920,156 $ 23,129,953 $ 1,143,174 $ 27,193,283
Accounts receivable 10,327 - - 10,327
Interest receivable - 5,936 7 5,943
Development agreement receivable - 458,333 - 458,333
Due from governments 406,148 1,274,137 - 1,680,285
Prepaid items - 33,400 - 33,400
Restricted cash and investments - 2,095,069 1,381,987 3,477,056
Total assets$ 3,336,631 $ 26,996,828 $ 2,525,168 $ 32,858,627
LIABILITIES
Accounts payable$ 186,327$ 580,248 $ - $ 766,575
Accrued payroll and employee benefits4,935 - - 4,935
Due to other funds 56,140 180,046 10,304 246,490
Deposits held for others - 3,385 646,662 650,047
Unearned revenue 47,761 - - 47,761
Total liabilities 295,163 763,679 656,966 1,715,808
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 45,140 1,015,922 - 1,061,062
Total deferred inflows of
resources
45,140 1,015,922 - 1,061,062
FUND BALANCES (DEFICITS)
Fund balances:
Nonspendable-33,400-33,400
Restricted 3,086,55125,565,3281,868,20230,520,081
Unassigned(90,223)(381,501)-(471,724)
Total fund balances 2,996,32825,217,2271,868,20230,081,757
Total liabilities, deferred inflows
of resources, and fund balances
$ 3,336,631$ 26,996,828$ 2,525,168$ 32,858,627
80
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
YEAR ENDED JUNE 30, 2014
Total
Non-Major
Special Governmental
RevenueCapital ProjectsDebt ServiceFunds
Revenues:
Sales tax$ 880,490$ 5,012,106$ -$ 5,892,596
Property tax - 51,511 373,056 424,567
Intergovernmental 1,311,189860,822-2,172,011
Licenses, fees & permits - 2,616,502 - 2,616,502
Fines, forfeitures & penalties 195,200 - - 195,200
Contributions 54,980675,962344,4531,075,395
Investment income 5,690 75,554 71 81,315
Miscellaneous 12,301 36,885 - 49,186
Total revenues 2,459,8509,329,342717,58012,506,772
Expenditures:
Current -
General government 834,749159,891-994,640
Public safety 555,232 - - 555,232
Highways and streets 90,224 121,569 - 211,793
Economic and community development 158,94123,541-182,482
Culture and recreation - 259,840 - 259,840
Capital outlay 421,5791,734,878-2,156,457
Debt service -
Principal retirement--1,470,0001,470,000
Interest and fiscal charges - - 2,074,399 2,074,399
Bond issuance costs - 2,757 94,102 96,859
Total expenditures 2,060,7252,302,4763,638,5018,001,702
Excess (deficiency) of revenues over
expenditures
399,1257,026,866(2,920,921)4,505,070
Other financing sources (uses):
Face value of bonds issued--6,493,0006,493,000
Refunded bond escrow payment - - (7,710,000) (7,710,000)
Transfers in 1,540 - 10,999,051 11,000,591
Transfers out-(7,688,735)(6,397,250)(14,085,985)
Total other financing sources (uses)
1,540 (7,688,735) 3,384,801 (4,302,394)
Change in fund balances 400,665 (661,869) 463,880202,676
Fund balances, beginning of year 2,595,66325,879,0961,404,32229,879,081
Fund balances, end of year$ 2,996,328$ 25,217,227$ 1,868,202$ 30,081,757
81
This page intentionally left blank
82
NON-MAJOR SPECIAL REVENUE FUNDS
Community Development Grant Fund (CDBG) – This fund accounts for the CDBG program
which provides resources to address community development needs
Affordable Housing Fund – This revolving fund accounts for resources utilized on affordable
housing projects and programs.
Bed Tax Fund – This fund accounts for the collection of the discriminatory portion of bed tax
revenues which funds economic development and tourism initiatives.
Judicial Collection Enhancement Fund – This fund accounts for resources required to
improve, maintain and enhance the ability to collect and manage monies assessed or received
by the courts including restitution, child support, fines and civil penalties; and to improve court
automation projects likely to improve case processing or the administration of justice.
Fill-the-Gap Fund – This fund accounts for local Fill The Gap resources which shall be used to
improve, maintain and enhance the ability to collect and manage monies assessed or received
by the courts, to improve court automation and to improve case processing or the
administration of justice.
Local Transportation Assistance Fund – This fund accounts for special distributions of state
lottery monies which are restricted for transportation and/or transit related projects and
programs.
Local Technology Fund – This fund accounts for resources required to fund local or
collaborative technology improvement projects and programs.
Other Special Revenue Fund – Includes all other grant related programs and projects.
83
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
Community
Development Affordable
Block GrantHousingBed Tax
ASSETS
Cash and cash equivalents$ 1,576 $ 192,979 $ 395,020
Accounts receivable---
Due from governments 114,519 - 76,564
Total assets$ 116,095 $ 192,979 $ 471,584
LIABILITIES
Accounts payable$ 3,931$ -$ 82,021
Accrued payroll and employee benefits 1,709 - 927
Due to other funds56,140--
Unearned revenue - - -
Total liabilities 61,780-82,948
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue ---
Total deferred inflows of resources---
FUND BALANCES (DEFICITS)
Restricted54,315192,979388,636
Unassigned---
Total fund balances 54,315192,979388,636
Total liabilities, deferred inflows of
resources, and fund balances
$ 116,095 $ 192,979 $ 471,584
84
Judicial Local
Collection Transportation Local Other Special
EnhancementFill-the-GapAssistanceTechnologyRevenue FundTotals
$ 109,896 $ 66,380 $ - $ 708,365 $ 1,445,940 $ 2,920,156
-2,170--8,15710,327
- - - - 215,065 406,148
$ 109,896 $ 68,550 $ - $ 708,365 $ 1,669,162 $ 3,336,631
$ -$ -$ 90,223$ 162$ 9,990$ 186,327
- - - 1,473 826 4,935
-----56,140
- - - - 47,761 47,761
-- 90,223 1,63558,577295,163
----45,14045,140
----45,14045,140
109,89668,550-706,7301,565,445$ 3,086,551
--(90,223)--(90,223)
109,89668,550(90,223)706,7301,565,4452,996,328
$ 109,896 $ 68,550 $ - $ 708,365 $ 1,669,162 $ 3,336,631
85
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2014
Community Judicial
Development Affordable Collection
Block GrantHousingBed TaxEnhancement
Revenues:
Sales taxes$ - $ - $ 880,490 $ -
Intergovernmental 238,688 - - -
Fines, forfeitures & penalties---13,122
Contributions----
Investment income - - - -
Miscellaneous - 2,057 - -
Total revenues 238,688 2,057 880,490 13,122
Expenditures:
Current -
General government--750,757-
Public safety - - - -
Highways and streets - - - -
Economic and community development136,13412,42210,385-
Capital outlay 97,015 - - -
Total expenditures 233,149 12,422 761,142 -
Excess (deficiency) of revenues over
5,539 (10,365) 119,348 13,122
expenditures
Other financing sources (uses):
Transfers in - - - -
Total other financing sources (uses)----
Change in fund balances 5,539(10,365)119,34813,122
Fund balances (deficits), beginning of year
48,776203,344269,28896,774
Fund balances (deficits), end of year$ 54,315 $ 192,979 $ 388,636 $ 109,896
86
Local
Transportation Local Other Special
Fill-the-GapAssistanceTechnologyRevenue FundTotals
$ - $ - $ - $ - $ 880,490
- - - 1,072,501 1,311,189
7,180-122,04352,855195,200
---54,98054,980
- - - 5,690 5,690
- - - 10,244 12,301
7,180 - 122,043 1,196,270 2,459,850
--29,01254,980834,749
- - - 555,232 555,232
- 90,224 - - 90,224
----158,941
- - - 324,564 421,579
- 90,224 29,012 934,776 2,060,725
7,180 (90,224) 93,031 261,494 399,125
- 1,540 - - 1,540
-1,540--1,540
7,180(88,684)93,031261,494400,665
61,370(1,539)613,6991,303,9512,595,663
$ 68,550 $ (90,223) $ 706,730 $ 1,565,445 $ 2,996,328
87
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
YEAR ENDED JUNE 30, 2014
Community Development Block Grant Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ 2,699,899$ 2,699,899$ 238,688$ (2,461,211)
Total revenues 2,699,8992,699,899238,688(2,461,211)
Expenditures:
Current -
Economic and community development 2,699,899 2,699,899 136,134 2,563,765
Capital outlay - - 97,015 (97,015)
Total expenditures 2,699,899 2,699,899 233,149 2,466,750
Excess (deficiency) of revenues over
expenditures--5,5395,539
- - 48,776 48,776
Fund balance, July 1, 2013
$ -$ -$ 54,315$ 54,315
Fund balance, June 30, 2014
88
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
AFFORDABLE HOUSING REVOLVING FUND
YEAR ENDED JUNE 30, 2014
Affordable Housing Revolving Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Miscellaneous$ 100,000$ 100,000$ 2,057$ (97,943)
Total revenues 100,000100,0002,057(97,943)
Expenditures:
Current -
Economic and community development 70,000 70,000 12,422 57,578
Total expenditures 70,000 70,000 12,422 57,578
Excess (deficiency) of revenues over
expenditures 30,000 30,000 (10,365) (40,365)
Fund balance (deficits), July 1, 2013--203,344203,344
Fund balance (deficits), June 30, 2014$ 30,000 $ 30,000 $ 192,979 $ 162,979
89
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
BED TAX FUND
YEAR ENDED JUNE 30, 2014
Bed Tax Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales taxes$ 754,269$ 754,269$ 880,490$ 126,221
Total revenues 754,269754,269880,490126,221
Expenditures:
Current -
General government 723,303 723,303 750,757 (27,454)
Economic and community development 30,966 30,966 10,385 20,581
Total expenditures 754,269 754,269 761,142 (6,873)
Excess (deficiency) of revenues over
expenditures--119,348119,348
- - 269,288 269,288
Fund balance (deficits), July 1, 2013
$ -$ -$ 388,636$ 388,636
Fund balance (deficits), June 30, 2014
90
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
JUDICIAL COLLECTION ENHANCEMENT FUND
YEAR ENDED JUNE 30, 2014
Judicial Collection Enhancement Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Fines, forfeitures & penalties$ 14,000$ 14,000$ 13,122$ (878)
Total revenues 14,00014,00013,122(878)
Expenditures:
Current -
General government 43,000 43,000 - 43,000
Capital outlay 10,000 10,000 - 10,000
Total expenditures 53,000 53,000 - 53,000
Excess (deficiency) of revenues over
expenditures(39,000)(39,000)13,12252,122
- - 96,774 96,774
Fund balance (deficits), July 1, 2013
$ (39,000)$ (39,000)$ 109,896$ 148,896
Fund balance (deficits), June 30, 2014
91
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
FILL-THE-GAP FUND
YEAR ENDED JUNE 30, 2014
Fill-the-Gap
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Fines, forfeitures & penalties$ 4,000$ 4,000$ 7,180$ 3,180
Total revenues 4,0004,0007,1803,180
Expenditures:
Current -
General government 34,500 34,500 - 34,500
Total expenditures 34,500 34,500 - 34,500
Excess (deficiency) of revenues over
expenditures (30,500) (30,500) 7,180 37,680
- - 61,370 61,370
Fund balance (deficits), July 1, 2013
$ (30,500)$ (30,500)$ 68,550$ 99,050
Fund balance (deficits), June 30, 2014
92
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
LOCAL TRANSPORTATION ASSISTANCE FUND
YEAR ENDED JUNE 30, 2014
Local Transportation Assistance Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ -$ -$ -$ -
Total revenues----
Expenditures:
Current -
Highways and streets 100,000 100,000 90,224 9,776
Total expenditures 100,000 100,000 90,224 9,776
Excess (deficiency) of revenues over
expenditures (100,000) (100,000) (90,224) 9,776
Other financing sources:
Transfer in100,000100,0001,540 (98,460)
Total other financing sources 100,000 100,000 1,540 (98,460)
Change in fund balance--(88,684)(88,684)
- - (1,539) (1,539)
Fund balance (deficits), July 1, 2013
Fund balance (deficits), June 30, 2014$ - $ - $ (90,223) $ (90,223)
93
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
LOCAL TECHNOLOGY
YEAR ENDED JUNE 30, 2014
Local Technology Fund
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ 118,000$ 118,000$ 122,043$ 4,043
Total revenues 118,000118,000122,0434,043
Expenditures:
Current -
General government 373,598 373,598 29,012 344,586
Total expenditures 373,598 373,598 29,012 344,586
(255,598) (255,598) 93,031 348,629
Change in fund balance
--613,699613,699
Fund balance (deficits), July 1, 2013
Fund balance (deficits), June 30, 2014$ (255,598) $ (255,598) $ 706,730 $ 962,328
94
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR SPECIAL REVENUE FUNDS
OTHER SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2014
Other Special Revenue Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ 676,513$ 676,513$ 1,072,501$ 395,988
Fines, forfeitures & penalties50,00050,00052,8552,855
Contributions51,00051,00054,9803,980
Investment income 1,615 1,615 5,690 4,075
Miscellaneous - - 10,244 10,244
Total revenues 779,128 779,128 1,196,270 417,142
Expenditures:
Current -
General government 551,000 169,279 54,980 114,299
Public safety442,829748,550555,232193,318
Community development----
Capital outlay 379,606 455,606 324,564 131,042
Total expenditures 1,373,435 1,373,435 934,776 438,659
Excess (deficiency) of revenues over
expenditures(594,307)(594,307)261,494855,801
Other financing sources:
Transfer in50,00050,000 - (50,000)
Total other financing sources 50,000 50,000 - (50,000)
(544,307) (544,307) 261,494 805,801
Change in fund balance
--1,303,9511,303,951
Fund balance (deficits), July 1, 2013
Fund balance (deficits), June 30, 2014$ (544,307)$ (544,307)$ 1,565,445$ 2,109,752
95
This page intentionally left blank
96
NON-MAJOR CAPITAL PROJECTS FUND
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.
Northwest (Benefit Area) TransportationImpact Fees – This fund accounts for the
financing and construction of transportation projects that are defined within the northwest
benefit area.
Northeast (Benefit Area) TransportationImpact Fees – This fund accounts for the
financing and construction of transportation projects that are defined within the northeast
benefit area.
South (Benefit Area) TransportationImpact Fees – This fund accounts for the financing
and construction of the Twin Peaks Interchange Project.
Transportation– This fund accounts for the financing and construction of transportation
capacity improvement projects.
Park Impact Fees Fund – This fund accounts for park impact fees collected by the Town and
utilized for authorized capital improvements.
PAG Capital Fund – This fund accounts for proceeds from Pima Association of Governments
which are used for the Thornydale Road and Silverbell Road Improvements Projects.
Pima County Bond Capital Fund – This fund accounts for the financing and construction of
projects funded through Pima County Bond program.
Sales Tax Capital Fund – This fund accounts for sales tax proceeds which are used for
authorized capital improvements.
Downtown Reinvestment Fund – This fund accounts for sales tax proceeds which are used
for authorized capital improvements in the Downtown area.
Other Capital Projects Fund – Includes all other capital related funding and projects.
Gladden Farms Capital Fund – This fund accounts for the proceeds from the sale of general
obligation bonds which are used for authorized capital improvements.
Vanderbilt Farms Capital Fund – This fund accounts for the proceeds from property tax
revenues to be used for authorized capital improvements.
Saguaro Springs Capital Fund – This fund accounts for the financing and construction of
authorized capital improvements.
97
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS (Cont'd)
YEAR ENDED JUNE 30, 2014
Northwest Northeast South
Transportation Transportation Transportation
Impact FeesImpact FeesImpact FeesTransportation
ASSETS
Cash and cash equivalents $ 1,642,688 $ 3,510,926 $ 2,585,639 $ 5,682,699
Interest receivable - - 3,368 2,541
Development agreement receivable - - - -
Due from governments - - - 658,537
Prepaid items - - - 33,400
Restricted cash ----
Total assets $ 1,642,688$ 3,510,926$ 2,589,007$ 6,377,177
LIABILITIES
Accounts payable $ - $ - $ 657 $ 143,465
Due to other funds - - - -
Deposits held for others - - - -
Total liabilities --657143,465
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - -
Total deferred inflows of
resources
----
FUND BALANCES (DEFICITS)
Nonspendable - - - 33,400
Restricted 1,642,688 3,510,926 2,588,350 6,200,312
Unassigned - - - -
Total fund balances (deficits)
1,642,688 3,510,926 2,588,350 6,233,712
Total liabilities, deferred inflows
of resources, and fund balances
$ 1,642,688 $ 3,510,926 $ 2,589,007 $ 6,377,177
98
Gladden
Park Impact Pima County Sales Tax Downtown Other Capital Farms
FeesPAG CapitalBond CapitalCapitalReinvestmentProjectsCapital
$ 4,981,419 $ 22,364 $ - $ 100,048 $ 3,333,627
$ 753,986$ 412,086
- - - 6 - 21 -
- - - - - 458,333 -
- 580,064 14,889 - 20,647 - -
- - - - - - -
- - - - - 1,998,251 96,818
$ 4,981,419$ 602,428$ 14,889$ 120,695$ 5,790,232
$ 753,992$ 508,904
$ 174,802$ 261,183$ -$ -$ 141$ -$ -
- - 180,046 - - - -
- - - - - - -
174,802 261,183 180,046 - 141 - -
-557,589---458,333-
- 557,589 - - - 458,333 -
-------
4,806,617 - - 753,992 120,554 5,331,899 508,904
- (216,344) (165,157) - - - -
4,806,617 (216,344) (165,157) 753,992 120,554 5,331,899 508,904
$ 4,981,419 $ 602,428 $ 14,889 $ 120,695 $ 5,790,232
$ 753,992$ 508,904
99
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR
CAPITAL PROJECTS FUNDS (Concl'd)
YEAR ENDED JUNE 30, 2014
Vanderbilt Saguaro
Farms Springs
CapitalCapitalTotals
ASSETS
Cash and cash equivalents $ 48,379 $ 23,129,953
$ 56,092
Interest receivable - - 5,936
Development agreement receivable - - 458,333
Due from governments - - 1,274,137
Prepaid items - - 33,400
Restricted cash --2,095,069
Total assets $ 48,379$ 26,996,828
$ 56,092
LIABILITIES
Accounts payable $ - $ - $ 580,248
Due to other funds - - 180,046
Deposits held for others - 3,385 3,385
Total liabilities - 3,385763,679
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - $ 1,015,922
Total deferred inflows of
resources
--1,015,922
FUND BALANCES (DEFICITS)
Nonspendable - - $ 33,400
Restricted 48,379 52,707 25,565,328
Unassigned - - (381,501)
Total fund balances (deficits)
48,379 52,707 25,217,227
Total liabilities, deferred inflows
of resources, and fund balances
$ 48,379 $ 26,996,828
$ 56,092
100
This page intentionally left blank
101
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECT FUNDS (Cont'd)
YEAR ENDED JUNE 30, 2014
Northwest Northeast South
Transportation Transportation Transportation
Impact FeesImpact FeesImpact FeesTransportation
Revenues:
Sales tax $ -$ -$ -$ 4,868,032
Property tax - - - -
Intergovernmental - - - -
Licenses, fees & permits 132,031859,611658,178-
Contributions - - - -
Investment income 504 - 34,732 25,599
Miscellaneous revenue ---20,000
Total revenues 132,535 859,611 692,910 4,913,631
Expenditures:
Current -
General government - - - 159,891
Highways and streets 40,52340,52340,523 -
Economic and community development - - - -
Culture and recreation - - - -
Capital outlay - - 7,464 447,776
Debt service
Bond Issuance Costs - - - -
Total expenditures 40,52340,52347,987607,667
Excess (deficiency) of revenues over
expenditures
92,012 819,088 644,923 4,305,964
Other financing sources (uses):
Transfers out - - (565,851) (2,089,295)
Total other financing sources (uses) - - (565,851) (2,089,295)
Change in fund balances 92,012 819,088 79,072 2,216,669
Fund balances (deficits), beginning of year
1,550,6762,691,8382,509,2784,017,043
Fund balances (deficits), end of year $ 1,642,688$ 3,510,926$ 2,588,350$ 6,233,712
102
Gladden
Park Impact Pima County Sales Tax Downtown Other Capital Farms
FeesPAG CapitalBond CapitalCapitalReinvestmentProjectsCapital
$ -$ -$ -$ -$ 144,074$ -$ -
- - - - - - 45,203
- 674,598 134,469 - - 51, 755 -
944,984----21,698-
- - - - - 675, 962 -
5,087 - - 6, 424 - 2, 473 712
-----16,885-
950,071 674,598 134,469 6, 424 144, 074 768, 773 45, 915
- - - - - - -
- - - - - - -
----23,541--
133,923 - 125,917 - - - -
642,213 622,372 243 10, 525 - 4,285 -
- - - - - 2,757 -
776,136622,372126,16010,52523,5417,042-
173,935 52,226 8,309 (4,101) 120,533 761,731 45,915
- - - - - ( 5,033,589) -
- - - - - ( 5,033,589) -
173,935 52,226 8,309 ( 4,101) 120, 533 ( 4,271,858) 45, 915
4,632,682(268,570)(173,466)758,093219,603,757462,989
$ 4,806,617$ (216,344)$ (165,157)753,$ 120,554$ 5,331,899508,
$ 992$ 904
103
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECT FUNDS (Concl'd)
YEAR ENDED JUNE 30, 2014
Vanderbilt Saguaro
Farms Springs
CapitalCapitalTotals
Revenues:
Sales tax $ -$ -$ 5,012,106
Property tax 2,744 3,564 51,511
Intergovernmental - - 860,822
Licenses, fees & permits --2,616,502
Contributions - - 675,962
Investment income 23 - 75,554
Miscellaneous revenue --36,885
Total revenues 2,767 3,564 9,329,342
Expenditures:
Current -
General government - - 159,891
Highways and streets - - 121,569
Economic and community development - - 23,541
Culture and recreation - - 259,840
Capital outlay - - 1,734,878
Debt service
Bond Issuance Costs - - 2,757
Total expenditures --2,302,476
Excess (deficiency) of revenues over
expenditures
2,767 3,564 7,026,866
Other financing sources (uses):
Transfers out - - (7,688,735)
Total other financing sources (uses) - - (7,688,735)
Change in fund balances 2,767 3,564 (661,869)
Fund balances (deficits), beginning of year
45,61249,14325,879,096
Fund balances (deficits), end of year $ 48,379$ 52,707$ 25,217,227
104
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
NORTHWEST TRANSPORTATION IMPACT FEES
YEAR ENDED JUNE 30, 2014
Northwest Transportation Impact Fees
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Licenses, fees & permits$ 233,185 $ 233,185 $ 132, 031$ ( 101,154)
Investment income - - 504 504
Total revenues 233,185 233,185 132, 535 ( 100,650)
Expenditures:
Current -
Highways and streets--40,523(40,523)
Total expenditures--40,523(40,523)
Excess (deficiency) of revenues over
expenditures 233,185 233,185 92, 012 ( 141,173)
Fund balances (deficits), July 1, 2013-- 1, 550,676 1, 550,676
Fund balances (deficits), June 30, 2014$ 233,185 $ 233,185 $ 1, 642,688$ 1, 409,503
105
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
NORTHEAST TRANSPORTATION IMPACT FEES
YEAR ENDED JUNE 30, 2014
Northeast Transportation Impact Fees
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Licenses, fees & permits$ 582,655 $ 582,655 $ 859, 611$ 276, 956
Total revenues 582,655 582,655 859, 611 276, 956
Expenditures:
Current -
Highways and streets - - 40,523 (40,523)
Capital outlay500,000500,000-500,000
Total expenditures 500,000500,00040,523459,477
Excess (deficiency) of revenues over
expenditures 82,655 82,655 819, 088 736, 433
Fund balances (deficits), July 1, 2013--2,691,838 2, 691,838
Fund balances (deficits), June 30, 2014$ 82,655 $ 82,655 $ 3,510,926 $ 3, 428,271
106
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
SOUTH TRANSPORTATION IMPACT FEES
YEAR ENDED JUNE 30, 2014
South Transportation Impact Fees
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Licenses, fees & permits$ 630,640 $ 630,640 $ 658,178 $ 27,538
Investment income - - 34,732 34,732
Miscellaneous - - - -
Total revenues 630,640 630,640 692,910 62,270
Expenditures:
Current -
Highways and streets--40,523(40,523)
Capital outlay21,18521,1857,46413,721
Total expenditures 21,185 21,185 47,987 (26,802)
Excess (deficiency) of revenues over
expenditures 609,455609,455 644,923 35,468
Other financing sources (uses):
Transfers out (565,851) (565,851) (565,851) -
(565,851) (565,851) (565,851) -
Total other financing sources (uses)
43,604 43,604 79,072 35,468
Change in fund balances
Fund balances (deficits), July 1, 2013--2,509,2782,509,278
Fund balances (deficits), June 30, 2014$ 43,604$ 43,604$ 2,588,350$ 2,544,746
107
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
TRANSPORTATION CAPITAL
YEAR ENDED JUNE 30, 2014
Transportation Capital
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Sales taxes$ 3,659,877 $ 3,659,877$ 4,868,032 $ 1,208,155
Investment income - - 25,599 25,599
Miscellaneous - - 20,000 20,000
Total revenues 3,659,877 3,659,877 4,913,631 1,253,754
Expenditures:
Current -
General government-160,000159,891109
Capital outlay2,904,9332,744,933447,7762,297,157
Total expenditures 2,904,933 2,904,933 607,667 2,297,266
Excess (deficiency) of revenues over
expenditures 754,944754,944 4,305,964 3,551,020
Other financing sources (uses):
Transfers out (2,089,295) (2,089,295) (2,089,295) -
Total other financing sources (uses)
(2,089,295) (2,089,295) (2,089,295) -
Changes in fund balances (1,334,351) (1,334,351) 2,216,669 3,551,020
Fund balances (deficits), July 1, 2013--4,017,0434,017,043
Fund balances (deficits), June 30, 2014$ (1,334,351)$ (1,334,351)$ 6,233,712$ 7,568,063
108
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
PARK IMPACT FEES
YEAR ENDED JUNE 30, 2014
Park Impact Fees
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Licenses, fees & permits$ 1,094,735 $ 1,094,735 $ 944, 984$ ( 149,751)
Investment income - - 5, 087 5, 087
Total revenues 1,094,735 1,094,735 950, 071 ( 144,664)
Expenditures:
Current -
Culture and recreation--133,923(133,923)
Capital outlay2,362,5222,362,522642,2131,720,309
Total expenditures 2,362,5222,362,522642,2131,720,309
Excess (deficiency) of revenues over
expenditures (1,267,787) (1,267,787) 307, 858 1, 575,645
Fund balances (deficits), July 1, 2013--4,632,682 4, 632,682
Fund balances (deficits), June 30, 2014$ (1,267,787) $ (1,267,787) $ 4,940,540 $ 6, 208,327
109
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - PAG CAPITAL
YEAR ENDED JUNE 30, 2014
PAG Capital
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ 10,366,806 $ 10,366,806 $ 674,598 $ (9, 692,208)
Miscellaneous - - - -
Total revenues 10,366,806 10,366,806 674,598 (9, 692,208)
Expenditures:
Capital outlay10,366,80610,366,806622,3729,744,434
Total expenditures 10,366,80610,366,806622,3729,744,434
Excess (deficiency) of revenues over
expenditures - - 52,226 52,226
Fund balances (deficits), July 1, 2013--(268,570) (268, 570)
Fund balances (deficits), June 30, 2014$ - $ - $ (216,344) $ (216, 344)
110
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
PIMA COUNTY BOND CAPITAL
YEAR ENDED JUNE 30, 2014
Pima County Bond Capital
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ -$ -$ 134,469$ 134,469
Contributions 319,740 319,740 - (319, 740)
Total revenues 319,740 319,740 134,469 (185, 271)
Expenditures:
Current -
Culture and recreation209,740209,740125,91783,823
Capital outlay110,000110,000243109,757
Total expenditures 319,740319,740126,160193,580
Excess (deficiency) of revenues over
expenditures - - 8,309 8,309
Fund balances (deficits), July 1, 2013--(173,466) (173, 466)
Fund balances (deficits), June 30, 2014$ - $ - $ (165,157) $ (165, 157)
111
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
SALES TAX CAPITAL
YEAR ENDED JUNE 30, 2014
Sales Tax Capital
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Investment income$ -$ -$ 6,424$ 6,424
Total revenues - - 6,424 6,424
Expenditures:
Capital outlay 531,743 531,743 10,525 521,218
Total expenditures 531,743 531,743 10,525 521,218
Excess (deficiency) of revenues over
expenditures(531,743)(531,743)(4,101)527,642
Fund balances (deficits), July 1, 2013-- 758,093 (758, 093)
Fund balances (deficits), June 30, 2014$ (531,743)$ (531,743)$ 753,992$ (230,451)
112
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
DOWNTOWN REINVESTMENT
YEAR ENDED JUNE 30, 2014
Downtown Reinvestment
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax $ 125,000 $ 125,000 144,074$ 19, 074
Total revenues 125,000 125,000 144,074 19,074
Expenditures:
Highways and streets 125,000 125,00023,541 101, 459
Total expenditures 125,000 125,000 23,541 101,459
Excess (deficiency) of revenues over
expenditures--120,533120,533
Fund balances (deficits), July 1, 2013-- 21 (21)
Fund balances (deficits), June 30, 2014$ -$ -$ 120,554$ 120,512
113
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - OTHER CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2014
Other Captial Projects
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental$ 490,558$ 490,558 $ 51,755 $ (438,803)
Licenses, fees & permits 30,000 30,000 21,698 (8,302)
Contributions 60,000 60,000 675,962 615,962
Investment income - - 2,473 2,473
Miscellaneous - - 16,885 16,885
Total revenues 580,558 580,558 768,773 188,215
Expenditures:
Highways and streets60,00060,0004,28555,715
Capital outlay 591,905 591,9052,757 589,148
Total expenditures 651,905 651,905 7,042 644,863
Excess (deficiency) of revenues over (71,347) (71,347) 761,731 833,078
expenditures
Other financing sources (uses):
Transfers out--(5,033,589)(5,033,589)
Total other financing sources
(uses)
--(5,033,589)(5,033,589)
Changes in fund balances--(4,271,858)(4,271,858)
Fund balances (deficits), July 1, 2013--9,603,7579,603,757
Fund balances (deficits), June 30, 2014$ -$ -$ 5,331,899$ 5,331,899
114
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
GLADDEN FARMS COMMUNITY FACILITIES DISTRICT CAPITAL
YEAR ENDED JUNE 30, 2014
Gladden Farms Community Facilities District Capital
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property tax$ 44,939$ 44,939$ 45,203$ 264
Contributions 37,491 37,491 - (37,491)
Investment income - - 712 712
Total revenues 82,430 82,430 45,915 (36,515)
Expenditures:
Current -
General government82,43082,430-82,430
Capital outlay900,000900,000-900,000
Debt service -
Bond issuance costs100,000100,000 - 100,000
Total expenditures 1,082,430 1,082,430 - 1,082,430
Excess (deficiency) of revenues over
expenditures (1,000,000) (1,000,000) 45,915 1,045,915
Other financing sources (uses):
Bond proceeds1,000,0001,000,000-(1,000,000)
1,000,0001,000,000-(1,000,000)
Total other financing sources (uses)
Change in fund balances--45,91545,915
Fund balances (deficits), July 1, 2013-- 462,989 462,989
Fund balances (deficits), June 30, 2014$ - $ - $ 508,904 $ 508,904
115
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
VANDERBILT FARMS COMMUNITY FACILITIES DISTRICT CAPITAL
YEAR ENDED JUNE 30, 2014
Vanderbilt Farms Capital
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax$ -$ -$ -$ -
Property tax2,6832,6832,744 61
Contributions25,36925,369 - (25, 369)
Investment income - - 23 23
Total revenues 28,052 28,052 2,767 (25, 285)
Expenditures:
Current -
General government28,05228,052-28,052
Total expenditures 28,052 28,052 - 28,052
Excess (deficiency) of revenues over
expenditures--2,7672,767
Fund balances (deficits), July 1, 2013-- 45,612 45,612
$ - $ - $ 48,379 $ 48,379
Fund balances (deficits), June 30, 2014
116
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR CAPITAL PROJECTS FUNDS
SAGUARO SPRINGS COMMUNITY FACILITIES DISTRICT CAPITAL
YEAR ENDED JUNE 30, 2014
Saguaro Springs Capital
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property tax$ 4,429$ 4,429$ 3,564$ (865)
Contributions193,821193,821 - (193,821)
Total revenues 198,250 198,250 3,564 (194,686)
Expenditures:
Current -
Economic and community development298,250298,250-298,250
Capital outlay800,000800,000-800,000
Debt service -
Bond issuance costs100,000100,000 - 100,000
Total expenditures 1,198,250 1,198,250 - 1,198,250
Excess (deficiency) of revenues over
expenditures(1,000,000)(1,000,000)3,564 1,003,564
Other financing sources (uses):
1,000,0001,000,000 - (1,000,000)
Bond proceeds
Total other financing sources (uses)1,000,0001,000,000-(1,000,000)
Change in fund balances--3,5643,564
Fund balances (deficits), July 1, 2013--49,14349,143
Fund balances (deficits), June 30, 2014$ -$ -$ 52,707$ 52,707
117
This page intentionally left blank
118
NON-MAJOR DEBT SERVICE FUNDS
Debt Service Funds are created to account for the accumulation of resources for, and the
payment of, general long-term debt principal and interest.
1997 Bond Debt Service Fund – This fund accounts for the accumulation of resources and
payment of principal and interest on the series 1997 revenue bonds. The Town has pledged
Town sales tax revenue, state shared revenues licenses, fees and permits revenue, and fines,
forfeitures and penalties revenue to make the required payments for this series.
2003Bond 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,
forfeituresand penalties revenue to make the required payments for this series.
2004 Bond Debt Service Fund – This fund accounts for the accumulation of resources and
payment of principal and interest on the series 2004 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.
2013 Bond Debt Service Fund – This fund accounts for the accumulation of resources and
payment of principal and interest on the series 2013 revenue bonds. The Town has pledged
Town sales tax revenue and state shared revenues to make the required payments for this
series.
2014 Bond Debt Service Fund – This fund accounts for the accumulation of resources and
payment of principal and interest on the series 2014 revenue bonds. The Town has pledged
Town sales tax revenue and state shared revenues to make the required payments for this
series.
Gladden Farms Debt Service Fund – This fund accounts for the accumulation of resources
and payment of principal and interest on the Gladden Farms general obligation bonds.
119
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2014
1997 Bond 2003 Bond Debt 2004 Bond
Debt ServiceServiceDebt Service
ASSETS
Cash and cash equivalents$ -$ -$ -
Interest receviable - - -
Restricted cash and investments171,295-329,412
Total assets$ 171,295 $ - $ 329,412
LIABILITIES AND FUND BALANCES
Liabilities:
Due to other funds$ - $ - $ 10,304
Deposits held for others---
Total liabilities - - 10,304
Fund balances:
Restricted171,295-319,108
Total fund balances 171,295-319,108
Total liabilities and fund balances
$ 171,295 $ - $ 329,412
120
2013 Bond 2014 Bond Other Debt Gladden Farms
Debt ServiceDebt ServiceServiceDebt ServiceTotals
$ 1,084,012$ 1,648$ 45,514$ 12,000$ 1,143,174
- - - 7 7
---881,2801,381,987
$ 1,084,012 $ 1,648 $ 45,514 $ 893,287 $ 2,525,168
$ -$ -$ - $ - $ 10,304
---646,662646,662
- - - 646,662 656,966
1,084,0121,64845,514246,6251,868,202
1,084,0121,64845,514246,6251,868,202
$ 1,084,012 $ 1,648 $ 45,514 $ 893,287 $ 2,525,168
121
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2014
1997 Bond Debt 2003 Bond Debt 2004 Bond
ServiceServiceDebt Service
Revenues:
Property Taxes$ -$ -$ -
Contributions - -
Investment income---
Total revenues - - -
Expenditures:
Debt service -
Principal retirement 215,000 675,000 355,000
Interest and fiscal charges132,740361,781302,024
Bond Issuance Costs - - -
Total expenditures 347,740 1,036,781 657,024
Excess (deficiency) of revenues over
expenditures
(347,740)(1,036,781)(657,024)
Other financing sources (uses):
Face value of bonds issued---
Refunded bond escrow payment(2,225,000)-(5,485,000)
Transfers in2,637,589346,9626,142,386
Transfers out - - -
Total other financing sources (uses) 412,589 346,962 657,386
Change in fund balances 64,849 (689,819) 362
Fund balances, beginning of year 106,446 689,819 318,746
Fund balances, end of year$ 171,295$ -$ 319,108
122
2013 Bond 2014 Bond Other Debt Gladden Farms
Debt ServiceDebt ServiceServiceDebt ServiceTotals
$ -$ -$ -$ 373,056$ 373,056
- - - 344,453 344,453
---7171
- - - 717,580 717,580
- - - 225,000 1,470,000
788,102--489,7522,074,399
- 94,102 - - 94,102
788,10294,102-714,7523,638,501
(788,102)(94,102)-2,828(2,920,921)
-6,493,000--6,493,000
----(7,710,000)
1,872,114---10,999,051
- (6,397,250) - - (6,397,250)
1,872,114 95,750 - - 3,384,801
1,084,012 1,648 - 2,828 463,880
- - 45,514 243,797 1,404,322
$ 1,084,012$ 1,648$ 45,514$ 246,625$ 1,868,202
123
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
1997 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2014
1997 Bond Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$ - $ -
Contributions - - - -
Investment income - - - -
Total revenues----
Expenditures:
Debt service -
Principal retirement 215,000 215,000 215,000 -
Interest and fiscal charges 132,840 132,840 132,740 100
Bond issuance costs- - - -
Total expenditures 347,840 347,840 347,740 100
Excess (deficiency) of revenues over
expenditures (347,840) (347,840) (347,740) 100
Other financing sources (uses):
Face value of bonds issued - - - -
Refunded bond escrow payment - - (2,225,000) (2,225,000)
Transfers in 347,840 347,840 2,637,589 2,289,749
Transfers out----
Total other financing sources (uses)347,840347,840412,58964,749
Change in fund balances - - 64,849 64,849
Fund balances (deficits), July 1, 2013--106,446106,446
Fund balances (deficits), June 30, 2014$ -$ -$ 171,295$ 171,295
124
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2003 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2014
2003 Bond Debt Service
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$ - $ -
Contributions - - - -
Investment income - - - -
Total revenues----
Expenditures:
Debt service -
Principal retirement 675,000 675,000 675,000 -
Interest and fiscal charges 705,229 705,229 361,781 343,448
Bond issuance costs- - - -
Total expenditures 1,380,229 1,380,229 1,036,781 343,448
Excess (deficiency) of revenues over
expenditures (1,380,229) (1,380,229) (1,036,781) 343,448
Other financing sources (uses):
Face value of bonds issued - - - -
Refunded bond escrow payment - - - -
Transfers in 1,380,229 1,380,229 346,962 1,033,267
Transfers out----
Total other financing sources (uses)1,380,2291,380,229346,9621,033,267
Change in fund balances - - (689,819) (689,819)
Fund balances (deficits), July 1, 2013--689,819689,819
Fund balances (deficits), June 30, 2014$ -$ -$ -$ -
125
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2004 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2014
2004 Bond Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$ - $ -
Contributions - - - -
Investment income - - - -
Total revenues----
Expenditures:
Debt service -
Principal retirement 355,000 355,000 355,000 -
Interest and fiscal charges 302,775 302,775 302,024 751
Bond issuance costs- - - -
Total expenditures 657,775 657,775 657,024 751
Excess (deficiency) of revenues over
expenditures (657,775) (657,775) (657,024) 751
Other financing sources (uses):
Face value of bonds issued - - - -
Refunded bond escrow payment - - (5,485,000) (5,485,000)
Transfers in 657,775 657,775 6,142,386 (5,484,611)
Transfers out----
Total other financing sources (uses)657,775657,775657,386389
Change in fund balances - - 362 362
Fund balances (deficits), July 1, 2013--318,746318,746
Fund balances (deficits), June 30, 2014$ -$ -$ 319,108$ 319,108
126
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2013 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2014
2013 Bond Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$ - $ -
Contributions - - - -
Investment income - - - -
Total revenues----
Expenditures:
Debt service -
Principal retirement - - - -
Interest and fiscal charges - - 788,102 (788,102)
Bond issuance costs----
Total expenditures - - 788,102 (788, 102)
Excess (deficiency) of revenues over
expenditures - - (788,102) (788, 102)
Other financing sources (uses):
Face value of bonds issued - - - -
Refunded bond escrow payment - - - -
Transfers in - - 1,872, 114 (1, 872,114)
Transfers out----
Total other financing sources (uses)--1,872,114(1,872,114)
Change in fund balances - - 1,084, 012 1,084, 012
Fund balances (deficits), July 1, 2013----
Fund balances (deficits), June 30, 2014$ -$ -$ 1,084,012$ 1,084,012
127
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2014 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2014
2014 Bond Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$ - $ -
Contributions - - - -
Investment income - - - -
Total revenues----
Expenditures:
Debt service -
Principal retirement - - - -
Interest and fiscal charges - - - -
Bond issuance costs-- 94,102 (94,102)
Total expenditures - - 94,102 (94, 102)
Excess (deficiency) of revenues over
expenditures - - (94,102) (94, 102)
Other financing sources (uses):
Face value of bonds issued - - 6,493,000 (6,493,000)
Refunded bond escrow payment - - - -
Transfers in - - - -
Transfers out--(6,397,250)6,397,250
Total other financing sources (uses)--95,750(95,750)
Change in fund balances - - 1,648 1,648
Fund balances (deficits), July 1, 2013----
Fund balances (deficits), June 30, 2014$ -$ -$ 1,648$ 1,648
128
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
GLADDEN FARMS DEBT SERVICE
YEAR ENDED JUNE 30, 2014
Gladden Farms Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ 370,907 $ 370,907$ 373,056 $ 2,149
Contributions 329,846 329,846 344,453 14,607
Investment income - - 71 71
Total revenues 700,753700,753717,58016,827
Expenditures:
Debt service -
Principal retirement 225,000 225,000 225,000 -
Interest and fiscal charges 475,753 475,753 489,752 (13, 999)
Bond issuance costs----
Total expenditures 700,753 700,753 714,752 (13, 999)
Excess (deficiency) of revenues over
expenditures - - 2,828 2,828
Fund balances (deficits), July 1, 2013--243,797243,797
Fund balances (deficits), June 30, 2014$ - $ -$ 246,625 $ 246,625
129
This page intentionally left blank
130
STATISTICALINFORMATION
131
This page intentionally left blank
132
TOWN OF MARANA, ARIZONA
STATISTICAL SECTION
JUNE 30, 2014
Statistical Section
Financial presentations included in the Statistical Section provide data and information on the financial, physical, a
and economic characteristics of the Town of Marana. The following schedules cover multiple fiscal years and
provide users with a broader and more complete understanding of the Town and its financial affairs and economic
condition. They also present detailed information as a context for understanding this year's financial statements,
note disclosures, and required supplementary information.
SchedulePage
Financial Trends
These schedules contain trend information to help users understand and assess how the Town's
financial position has changed over time.
Net Position by Component - Last Ten Fiscal Years1134
Changes in Net Position - Last Ten Fiscal Years2136
Governmental Activities Tax Revenues by Source - Last Ten Years3140
Fund Balances of Governmental Funds - Last Ten Fiscal Years4141
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years5142
Revenue Capacity
These schedules contain information to help users understand and assess the Town's local revenue
source, the property tax.
Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable Property - 6144
Last Ten Years
Property Tax Rates - Direct and Overlapping Governments - Last Ten Years7145
Principal Property Taxpayers - Current Year and Seven Years Ago8146
Property Tax Levies and Collections - Last Ten Fiscal Years9147
Debt Capacity
These schedules present information to help users understand and assess the Town's debt burden
and its ability to service current debt and to issue additional debt in the future.
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years10148
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years11149
Direct and Overlapping Governmental Activities Debt12150
Legal Debt Margin Information13151
Pledged-Revenue Coverage - Last Ten Fiscal Years14152
Demographic and Economic Information
These schedules present economic and demographic indicators to help users understand the
environment within which the Town's financial activities take place.
Demographic and Economic Statistics - Last Ten Fiscal Years15153
Principal Employers - Current Year and Seven Years Ago16154
Operating Information
These schedules present information to help users understand the Town's operations and resources
as well as to provide a context for understanding and assessing the Town's economic condition.
Full-time Equivalent City Government Employees by Function - Last Ten Fiscal Years17155
Other Information
These schedules present information to help users understand potential for growth and
economic opportunities within the town.
Sales Tax by Industry - Last Ten Years18156
Excise Tax Collections - Last Ten Years19157
Principal Retail and Contracting Sales Taxpayers20158
Single Family Residential Permits Issued - Last Ten Years21159
Capital Assets Statistics by Function 22160
133
TOWN OF MARANA
Schedule 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
2005200620072008
(as restated)
Governmental activities
Net investment in capital assets $ 73,954$ 159,963$ 184, 396
$ 28,450
Restricted - 11,939 59,313 25,465
Unrestricted 31,044 33,018 (279) 22,320
Total governmental activities net position59,494118,912218,998232,181
Business-type activities
Net investment in capital assets11,65714,99025,52232,341
Restricted - - 1,297
Unrestricted (236) 131 966 (1,242)
Total business-type activities net position 11,421 15,122 26,488 32,396
Primary government
Net investment in capital assets 40,107 88,944 185,485 216,737
Restricted -11,93959,31326,762
Unrestricted 30,808 33,149 687 21,078
Total primary government net position $ 245,485$ 264, 577
$ 70,915$ 134,033
134
Schedule 1
200920102011201220132014
$ 174,286$ 193,721$ 196,326$ 194,287$ 184,949$ 189,171
45,727 25,459 28,136 29,004 62,437 58,820
39,916 39,929 38,889 39,911 1,384 (283)
259,929259,109263,351263,202248,770247,708
41,64344,31042,148112,528111,045109,111
- - 73 146 219 293
(4,714) (5,813) (2,683) (17,519) (2,677) (208)
36,929 38,497 39,538 95,155 108,587 109,196
215,929 238,031 238,474 306, 815 295,994 298,282
45,72725,45928,20929,15062,65659,113
35,202 34,116 36,206 22,392 (1,293) (491)
$ 296,858$ 297,606$ 302,889$ 358,357$ 357,357$ 356,904
135
TOWN OF MARANA
Schedule 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
2005200620072008
Expenses
Governmental activities:
General government$ 6,175$ 8,740 10,$ 12,925
$ 134
Development & planning services 4,803 6,438 3,442 -
Town Attorney * 401 489 - -
Public safety6,3098,9489,18711,215
Magistrate court *741807--
Highways and streets 4,086 5,510 15,898 10,269
Health & Welfare ** - - - 130
Culture & recreation 2,642 3,307 3,557 3,978
Economic & community development *** 238 256 375 8,643
Interest on long-term debt 1,709 1,816 2,297 2,500
Total governmental activities expenses 27,10436,311 44,891 49,660
Business-type activities:
Airport5648371,0281,196
WastewaterN/AN/AN/AN/A
Water 1,974 2,629 3,227 3,276
Total business-type activities expenses2,5383,4664,2554,472
Total primary government expenses $ 29,642$ 39,77749,$ 54,132
$ 146
Program Revenues
Governmental activities:
Charges for services:
General government $ 696$ 472$ 1,108$ 899
Development & planning services 3,153 5,969 4,718 -
Town attorney2613--
Public safety 338 192 19 -
Magistrate court 521 648 - -
Highways and streets ****3,9335905-
Health & Welfare----
Culture and recreation722191208200
Economic & community development 77512,380
Operating grants and contributions 7854501,4044,700
Capital grants and contributions 3,13526,0365,904 14,590
Total government activities program revenues 13,38634,61413,36522,768
Business-type activities:
Changes for services:
Airport134144185221
WastewaterN/AN/AN/AN/A
Water2,3753,2162,9052,968
Capital grants and contributions5953,5319,0736,885
Total business-type activity program revenues3,1046,89112,16310,074
Total primary government program revenues16,49041,50625,52832,842
Net (expense)/revenue
Governmental activities(13,718)(1,697)(31,525)(26,892)
Business-type activities5663,4267,9085,602
Total primary government net expense$ 1,729$ (23,618)
$ (13,152)$ (21,290)
136
Schedule 2
200920102011201220132014
$ 9,565$ 14,638$ 10,643$ 10,833$ 9,532$ 10,662
1,304 - - - - -
917 - - - - -
12,25510,6759,04410,20611,77712,134
946-----
6,734 14,986 15,425 17,233 18,327 19,053
112 102 86 23 23 23
4,818 3,943 3,335 2,173 3,831 3,131
12,751 4,835 4,596 4,258 4,123 4,691
2,530 865 5,173 4,721 4,312 4,543
51,93250,04448,30249,447 51,92554,237
2,5463,8033,3921,1121,1791,197
N/AN/AN/A3,8312,5992,756
1,178 1,136 1,273 3,074 3,779 5,244
3,7244,9394,6658,0177,5579,197
$ 55,656$ 54,983$ 52,967$ 57,464$ 59,482$ 63,434
$ 918$ 939 $ 830$ 881$ 975$ 941
- - - - - -
------
- - - - - -
- - - - - -
------
------
315211140134216200
1,7401,9742,2562,5133,9063,386
3,5374,2213,5553,2023,7474,442
40,72511,61814,9639,01712,37310,268
47,23518,96321,74415,74721,21719,237
227235238233239248
N/AN/AN/A241730834
2,7183,0353,1033,2813,4553,766
5,2693,4892,66960,2071,9582,534
8,2146,7596,01063,9626,3827,382
55,44925,72227,75479,70927,59926,619
(4,697)(31,081)(26,558)(33,699)(30,708)(35,000)
4,4901,8201,34555,944(1,175)(1,815)
$ (207)$ (29,261)$ (25,213)$ 22,245$ (31,883)$ (36,815)
137
TOWN OF MARANA
Schedule 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
2005200620072008
General Revenues and Other Changes in
Net Position
Governmental activities:
General revenues
City sales taxes$ 25,126$ 34,167 30,$ 27,173
$ 900
Property taxes - - - 460
Franchise fees---309
Highway Users/Local Transit Assistance Funding1,2851,2532,068-
State shared revenues1,8033,6346,8947,397
Pima Association of Governments Funding - - - -
Intergovernmental - - 4,810 -
System development fees1153,588231-
Investment income (loss) 757 1,835 4,463 3,024
Miscellaneous - - 221 459
Gain on sale of assets----
Transfers - - 470 ( 160)
Total governmental activities29,08644,47650,05738,661
Business-type activities:
General revenues
Investment income---110
Miscellaneous - - - 37
Transfers - - (470) 160
Special item----
Total business-type activities - - (470) 307
Total primary government 29,086 44,476 49,586 38,968
Change in Net Position
Governmental activities15,36842,77918,53111,769
Business-type activities5663,4267,4375,909
Total primary government$ 15,934$ 46,20425,$ 17,678
$ 968
* In prior fiscal years, 2003 through 2006, the functions of Town Attorney and Magistrate Court were reported
separately. However, both functions have been consolidated as part of the General Government function, as
per GeneralAccounting and Financial Reporting standards.
**In prior fiscal years, 2003 through 2008, programs and services offered by the Senior Center were included
in the function of Culture and Recreation. Effective fiscal year 2008, these programs and services are reported
under the function of Health and Welfare.
***In prior fiscal years, 2003 through 2007, the functions of Development and Planning Services and Economic
Development were reported separately. Effective fiscal year 2008, the functions were consolidated under
one function, Economic and Community Development.
In prior fiscal years, Highway Users Revenues and Local Transportation Assistance Funds were reported as general
revenues. Effective fiscal year 2008, these revenues are being reported as program revenues.
138
Schedule 2
200920102011201220132014
$ 22,404$ 21,662$ 22,948$ 24,539$ 24,768$ 26,226
691 623 584 506 447 421
315313322333349377
------
7,2216,4625,7196,9437,7148,273
- - - - - -
- - - - - -
------
595 135 105 97 152 171
1,227 774 814 803 737 854
----36-
(8) 291 309 329 (15,912) (2,384)
32,44530,26030,80133,55018,29133,938
811121
26 38 4 1 19 39
8 (291) (309) (329) 15,911 2,384
----(1,326)-
42 (252) (304) (327) 14,606 2,424
32,487 30,008 30,497 33,223 32,897 36,362
27,748(821)4,243(149)(12,417)(1,062)
4,5321,5681,04155,61713,431609
$ 32,280$ 747$ 5,284$ 55,468$ 1,014$ (453)
139
TOWN OF MARANA
Schedule 3
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
Fiscal Highway User
Year Sales TaxRevenue taxesTotal
2014$ 25,958$ 2,286$ 28,244
2013 24,618 2,257 26,875
2012 24,300 2,061 26,361
2011 22,800 1,869 24,669
201021,5781,80623,384
2009 22,718 1,936 24,654
2008 27,173 2,036 29,209
2007 30,900 2,068 32,969
200634,1671,25335,420
2005 25,126 1,285 26,411
140
141
142
143
Schedule 6
TOWN OF MARANA
ASSESSED VALUE AND ESTIMATED ACTUAL OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Assessed
Fiscal Less: Tax Total Value as a
Year Exempt Taxable Total Estimated Percentage
Ended Residential Commercial Real Assessed Direct Tax Actual Taxable of Actual
June 30Property Property PropertyValueRate ValueValue
2014$ 17,078$ 4$ 1,359$ 15,723$ 160,7569.8%
$ 2.8000
201316,17651,35414,827 2.8000150,1829.9%
2012 17,850 4 1,342 16,512 2.8000 165,51710.0%
2011 18,920 10 1,338 17,592 2.8000 176,25610.0%
2010 21,859 7 1,250 20,616 2.8000 201,03810.3%
2009 23,441 8 1,190 22,259 2.8000 215,98910.3%
2008 24,964 23 405 24,582 2.8000 230,39310.7%
2007 10,329 35 68 10,296 2.8000 94,39010.9%
2006 2,285 2 9 2,278 2.8000 14,28615.9%
2005 468 2 190 280 2.8000 2,9489.5%
SOURCE: Pima County Assessor's Office
NOTES:
1) The Town of Marana does not impose a property tax; principal property taxpayers represented above
reflect those properties within the boundaries of the Gladden Farms Community Facilities District,
which does impose a property tax.
144
145
Schedule 8
TOWN OF MARANA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND SEVEN YEARS AGO
(Amounts expressed in thousands)
20142007
Percentage Percentage
of Total of Total
taxable taxable
Full Cash Assessed Full Cash Assessed
ValueRank Value ValueRank Value
Taxpayer
Fidelity National Title TR 60421$ 1,448116.5%
Gladden 25 LLC1,180213.4%28256.0%
KB Home Tucson Inc 1,178313.4%
Smith Food & Drug Centers Inc 1,073412.2% 32446.9%
Weingarten Newquist LLC 903510.3% 22474.8%
AH4R 2014-1 Borrower LLC*79969.1%
Fidelity National Title TR 6042366077.5%
Walgreen Arizona Drug Co 63687.2%
DEO Jagpal S & Gurdarshan K 49295.6%
Mote Max A & Teresa L 410104.7%
Fidelity National Title TR 302122,659156.3%
Fidelity National Title TR 60338 35227.5%
Bank of America33937.2%
y
Wells Fargo Bank National Assn 8391.8%
Title Security Agency TR 89123464.9%
First American Title TR 9170 79101.7%
Totals $ 8,779$ 4,720
Notes:
1) The Town of Marana does not impose a property tax; principal property taxpayers represented above
reflect those properties within the boundaries of the Gladden Farms Community Facilities District,
which does impose a property tax.
2) Due to cost considerations for the accumulation of data, the Town has elected to present less than ten
years of data for certain statistical schedules. This information will be accumulated and reported each
year until the complete ten years of data is presented.
Source: Pima County Assessor's Office - IS Dept
(Information System's Coordinator)
146
TOWN OF MARANA
Schedule 9
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Collected within the Fiscal Year
of the LevyTotal Collections to Date
Fiscal Year
Ended June Total Tax Levy for Percentage Percentage
30Fiscal YearAmountof LevyAmountof Levy
2014$ 415 41199.04% 412 99.28%
201346245698.65%45698.65%
2012 492 48999.39% 491 99.80%
2011 577 56397.57% 563 97.57%
201062762399.36%62399.36%
200968868198.98%68799.85%
200854453297.79%54399.82%
2007 287 28699.70% 287 100.00%
2006646297.54%64100.00%
2005 8 899.96% 8100.00%
Notes:
The Town does not impose a property tax; levies and collections presented above reflect assessments
directly related to the Gladden Farms Community Facilities District.
Source: Pima County Treasurer's Office
147
TOWN OF MARANA
Schedule 10
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Business-Type Activities
Governmental Activities
General Special Total Percentage
Fiscal Revenue Obligation Assessment Capital Revenue Loans Primary of Personal
Year BondsBonds*Bonds**LeasesBondsPayableGovernmentIncome ***Per Capita
2014$ 68,443$ 8,325$ 18,488$ - $ 1,343$ 4,042 100,641276.9% 2,628
2013 78,335 8,550 19,926 - - 4,265 111,076293.9% 3,022
2012 60,315 8,765 21,288 - - 4,480 94,848261.0% 2,645
201164,9708,96522,492--4,586101,013289.1%2,931
2010 66,900 8,155 23,828 33 - 1,562 100,478299.0% 2,944
2009 67,975 8,335 24,823 75 - - 101,208313.3% 3,039
200829,2258,385-115--37,725151.6%1,258
2007 30,460 5,355 - 154 - - 35,969134.7% 1,199
2006 31,835 2,105 - - - - 33,940118.2% 1,131
2005 33,395 2,105 - - - - 35,500132.9% 1,328
Notes:
* Bonds issued for Gladden Farms Facilities District fiscal year 2005, a component unit of the Town. Principal
debt payoff does not begin until fiscal year 2008.
** Bonds issued for Tangerine Farms Road Improvement District FY 2008, a component unit of the Town.
*** Individual statistics not available for Marana, included in figures for Pima County and Tucson
Metropolitan area.
Source: US Census Bureau, Bureau of Economic Analysis
148
TOWN OF MARANA
Schedule 11
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Less: Amounts Percentage of
General Available in Estimated Actual
Obligation Debt Service Taxable Value of Per
Fiscal Year BondsFundTotal propertyCapita
2014$ 8,325$ 881$ 7, 4440.19%19.4%
20138,5506897,8610.22%21.4%
2012 8,765 886 7,8790.21%22.0%
2011 8,965 1,066 7,8990.20%23.7%
2010 8,155 963 7,1920.22%24.0%
20098,3359577,3780.30%24.6%
2008 8,385 968 7,4170.38%27.8%
20075,3556224,7330.29%20.5%
2006 2,105 531 1,5740.12%7.7%
20052,105-2,1050.19%11.6%
Notes:
The Town of Marana does not impose a property tax; any property taxes presented in this report are
directly related to the Gladden Farms Community Facilities District, formed in fiscal year 2005.
149
TOWN OF MARANA
Schedule 12
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2014
(Amounts expressed in thousands)
Estimated
Debt Percentage Estimated Share of
Outstanding Applicable Overlapping Debt
Governmental Unit
State of ArizonaNone0.58%None
Pima County $ 416,006 5.03%$ 20,925
Pima County Community College District 1,335 5.03% 67
Pima County Flood Control DistrictNone5.58%None
Northwest Fire District 30,020 41.48% 12,452
Gladden Farms Community Facilities District8,325100.00%8,325
Red Hawk Community Facilities District No. 1None100.00%None
Red Hawk Community Facilities District No. 2None100.00%None
Flowing Wells Unified School District No. 818,823100.00%18,823
Marana Unified School District No. 6 53,125 55.08% 29,261
Town of Marana *42,616100.00%42,616
Total direct and overlapping debt$ 132,470
Notes:
* Does not include the Municipal Property Corporation municipal facilities revenue bonds outstanding in the
aggregate principal amount of $27,170,000. In addition, the above schedule does not include the
Tangerine Farms Road Impovement Special Assessment bonds outstanding in the amount of $18,488,000.
** The estimated percentage of debt applicable to the Town is calculated based on the Town's secondary
assessed valuation as a percentatge of the secondary assessed valuation of the overlapping jurisdiction.
Sources: The various entities
150
151
152
153
TOWN OF MARANA
Schedule 16
PRINCIPAL EMPLOYERS
CURRENT YEAR AND SEVEN YEARS AGO
20142007
Percentage of Percentage of
Total City Total City
EmploymentEmployment
Employees Employees
Employer
Marana Unified School District 1,70611.2% 1,66022.6%
Wal-Mart4502.9%4506.1%
Marana Health Center 3652.4%
N/AN/A
The Ritz Carlton, Dove Mountain 350 2.3%
N/AN/A
Town of Marana 3192.1% 3304.5%
Sargent Aerospace & Defense 3152.1% 2403.3%
FLSmidth Krebs 2931.9%
N/AN/A
Marana Aerospace Solutions Inc 2811.8%
N/AN/A
Fry's Food & Drug2401.6%
N/AN/A
Northwest Fire District 2351.5%
N/AN/A
Hunter Construction2001.3%
N/AN/A
Coca-Cola Enterprises1731.1%1852.5%
Comcast1501.0%2092.8%
Trico Electric Cooperative1300.8%
N/AN/A
Costco 1300.8% 2753.7%
The Home Depot 1250.8%
N/AN/A
Lowe's 1250.8%
N/AN/A
KOLD-TV 13 1000.7%
N/AN/A
Lasertel 1000.7%
N/AN/A
Target1000.7%2253.1%
Source: "Star 200" published in the Arizona Daily Star; Marana.com/950/Major-Employers
Notes:
1) Due to cost considerations for the accumulation of data, the Town has elected to present less than ten year of
data, or data from nine years prior for certain statistical schedules. This information will be accumulated and
reported each year until the complete ten years of data is presented.
154
Schedule 17
TOWN OF MARANA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2005200620072008200920102011201220132014
Function
General Government 41.5 54.5 58.0 64.0 90.4 62.8 72.5 62.5 62.5 62.5
Public Safety
Police
Officers 71.0 82.0 84.0 84.0 81.0 78.0 80.0 79.0 80.0 80.0
Civilians 21.0 27.0 29.0 29.5 30.0 28.0 28.8 28.5 26.0 26.0
Building Safety---19.0-5.06.06.09.09.0
Highways and streets 32.0 35.0 36.0- 24.0 31.0 32.0 32.0 36.0 36.0
Engineering 18.5 20.5 22.0 40.8 - - - - - -
Maintenance --- 35.0 - - - - - -
Culture and recreation 35.5 41.0 49.3 49.8 50.0 43.8 41.5 41.7 33.3 33.3
Community Development 1.0 1.0 3.0 - 3.0 3.0 4.0 3.0 - -
Economic & Community Development50.551.551.518.045.154.652.453.448.548.5
Water Utilities14.018.5 18.0 19.0 17.4 15.4 18.1 20.1 19.1 19.1
Wastewater UtilitiesN/AN/AN/AN/AN/AN/AN/A - 4.04.0
Municipal Airport 2.0 2.0 2.0 3.0 2.0 - - - 1.0 1.0
Total 287.0333.0352.8362.0342.9321.6335.3326.1319.3319.3
Source: Town of Marana; Annual Budget; Authorized position schedule.
155
156
157
Schedule 20
TOWN OF MARANA
PRINCIPAL RETAIL AND CONTRACTING SALES TAXPAYERS
CURRENT YEAR AND SIX YEARS AGO
Fiscal Year 2014Fiscal Year 2008
Percentage of Percentage of
Sales Tax Total Sales Sales Tax Total Sales
PaymentsRankTax PaymentsPaymentsRankTax Payments
RETAIL
TaxpayerA$ 1,578,06716.0%$ 1,661,24116.1%
TaxpayerB 1,116,51124.3% 1,156,65524.3%
TaxpayerC647,93432.5%726,35232.7%
TaxpayerD 532,46142.0% 428,81571.6%
TaxpayerE 510,67451.9% 376,99381.4%
TaxpayerF458,55361.7%626,85042.3%
TaxpayerG428,94271.6%550,14352.0%
TaxpayerH 304,03881.2% 258,204101.0%
TaxpayerI 274,37791.0%
TaxpayerJ 267,091101.0% 311,10991.1%
Taxpayer K 431,40861.6%
$ 6,118,64823.2%$ 6,527,76924.1%
CONTRACTING
TaxpayerA$ 929,11313.5%$ 798,74912.9%
TaxpayerB805,16323.1%274,46191.0%
TaxpayerC 640,55132.4% 734,09332.7%
TaxpayerD561,02042.1%
TaxpayerE 462,63351.8%
TaxpayerF296,50061.1%
TaxpayerG 205,48270.8%0.0%
TaxpayerH 178,23480.7% 329,33971.2%
TaxpayerI 160,32990.6%
TaxpayerJ 159,607100.6%
TaxpayerK 759,37622.8%
TaxpayerL 498,39541.8%
TaxpayerM392,24251.4%
TaxpayerN 339,56461.2%
TaxpayerO280,87581.0%
271,586101.0%
$ 4,398,63216.7%$ 4,678,67917.0%
Source: Town of Marana Finance Department, Arizona Department of Revenue
158
Schedule 21
TOWN OF MARANA
SINGLE FAMILY RESIDENTIAL PERMITS
LAST TEN FISCAL YEARS
Month 2005200620072008200920102011201220132014
January 13052351133817226039
February 12944832792528315261
March1801345312246384612542
April203685550114814416447
May222618118132035534655
June123756528202322496159
July1689251213144327074
August1439950764628314660
September1492730272718222944
October139343571422305646
November79611351212223527
December106592851219464843
Calendar Total 1,771 806 579 287 200 343 337 526 702 303
Fiscal Total 1,5221,218744353199342297425692597
Source: Town of Marana Finance Department, Town of Marana Building Services
159
TOWN OF MARANA
Schedule 22
CAPITAL ASSET STATISTICS BY FUNCTION
AS OF JUNE 30, 2014
Fiscal Year
Function20102011201220132014
Public Safety
Police:
Stations11111
Substations22222
Police Vehicles11311311399118
Highways and Streets
Street (miles)300300300494494
Culture and Recreation
Parks77788
Parks Acreage848484139139
Trails in Miles - Hiking1128283745
Trails in Miles - Paved1616161616
Swimming Pools11111
Tennis Courts55566
Senior Center11111
Water Systems
Miles of Water Mains707070128132
Number of Meters4,7555,5565,7346,0026,272
Wastewater
Number of Manholes N/A N/A841863863
Sewer Mains (miles)N/AN/A46.447.547.5
Avg Daily Sewage Treated (MGD) N/A N/A0.1920.1980.287
Source: This information is provided from the Town's facility records.
Notes:
*Due to cost considerations for the accumulation of data, the Town has elected to present less
than ten years of data for certain statistical schedules. This information will be accumulated and
reported each year until the complete ten years of data is presented.
**Due to the waste water plant transfer from Pima County on January 3, 2012 infromation is
reflected from that point forward. Prior years are not available however will be accumulated
and reported each year until the ten years of data is presented.
160