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Home My WebLink AboutAnnual Expenditure Limitation Report June 30, 2017 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT Year Ended June 30, 2017 Financial Reports Contents Page Independent Accountants' Report 1 Annual Expenditure Limitation Report - Part I 3 Annual Expenditure Limitation Report - Part II 4 Annual Expenditure Limitation Report - Reconciliation 6 Notes to the Annual Expenditure Limitation Report 8 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT FOR THE YEAR ENDED JUNE 30, 2017 INDEPENDENT ACCOUNTANTS’ REPORT The Auditor General of the State of Arizona and The Honorable Mayor and Town Council of the Town of Marana, Arizona We have examined the accompanying Annual Expenditure Limitation Report of Town of Marana, Arizona for the year ended June 30, 2017. The Town’s management is responsible for presenting this report in accordance with the uniform expenditure reporting system as described in Note 1. Our responsibility is to express an opinion on this report based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether this report is presented in accordance with the uniform expenditure reporting system in all material respects. An examination involves performing procedures to obtain evidence about the amounts and disclosures in the report. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement of the report, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. In our opinion, the Annual Expenditure Limitation Report of Town of Marana, Arizona, referred to above is presented in accordance with the uniform expenditure reporting system as described in Note 1 in all material respects. Casa Grande, Arizona December 4, 2017 Tempe • Scottsdale • Casa Grande www.hhcpa.com 1. Economic Estimates Commission expenditure limitation 17,258,764$ 2. Voter-approved alternative expenditure limitation 170,063,889 (Approved November 8, 2016) See Note 1 3. Enter applicable amount from Line 1 or Line 2 170,063,889$ 4. Amount subject to the expenditure limitation (total amount from Part II, Line C) 97,500,296 5. Board̻authorized expenditures necessitated by a disaster the Governor declared - 6. Board̻authorized expenditures necessitated by a disaster the Governor did not declare - 7. Prior̻year, voter-approved expenditures to exceed the expenditure limitation for the reporting fiscal year - 8. Subtotal 97,500,296 9. Board-authorized excess expenditures for the previous fiscal year necessitated by a disaster the Governor did not declare and the voters did not approve - 10. Total adjusted amount subject to the expenditure limitation 97,500,296 11. Amount under (in excess of) the expenditure limitation - 72,563,593$ Signature of Chief Fiscal Officer: Name and Title: Telephone Number:Date: I hereby certify, to the best of my knowledge and belief, that the information contained in this report is accurate and in accordance with the requirements of the uniform expenditure TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT-PART I YEAR ENDED JUNE 30, 2017 December 04, 2017 Erik Montague, Finance Director (520)382-1930 See accompanying notes.3 Description Governmental Funds Enterprise Funds A. Amounts reported on the Reconciliation, Line D 134,001,217$ 18,858,769$ B. Less exclusions claimed: 1. Bond proceeds Debt service requirements on bonded indebtedness 8,965,244 482,853 Proceeds from other long-term obligations 46,154,328 2,641,623 Debt service requirements on other long-term - - 2.Dividends, interest, and gains on the sale or redemption of investment securities - - 3.Trustee or custodian - - 4.Grants and aid from the federal government 994,768 - 5.Grants, aid, contributions, or gifts from a private agency, organization, or individual, except amounts received in lieu of taxes 253,492 - 6.Amounts received from the State of Arizona - - 7.Quasi-external interfund transactions - - 8.Amounts accumulated for the purchase of land, and the purchase or construction of buildings or improvements - - 9.Highway user revenues in excess of those received in fiscal year 1979-80 - - 10.Contracts with other political subdivisions - - 11.Refunds, reimbursements, and other recoveries - - 12.Voter-approved exclusions not identified above (attach resolution)- - 13.Prior years carryforward - - 14 Qualifying capital improvement expenditures repaid in accordance with A.R.S. §41-1279.07 - - 15 Total exclusions claimed 56,367,832 3,124,476 C. Amounts subject to the expenditure limitation 77,633,385$ 15,734,293$ TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT-PART II YEAR ENDED JUNE 30, 2017 See accompanying notes.4 Internal Service Funds Fiduciary Funds Total 4,132,618$ -$ 156,992,604$ - - 9,448,097 - - 48,795,951 - - - - - - - - - - - 994,768 - - 253,492 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 59,492,308 4,132,618$ -$ 97,500,296$ 5 Description Governmental Funds Enterprise Funds A. Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statements 134,085,424$ 11,122,416$ B. Deductions: 1. Items not requiring use of working capital: Depreciation - 4,550,776 Loss on disposal of capital assets - 320,308 Bad debt expense - - Other postemployment benefits (OPEB) expense - - Claims incurred but not reported (IBNR) - - Landfill closure and postclosure care costs - - Pension Expense - 206,238 2. Expenditures of separate legal entities established under Arizona Revised Statutes - - 3. Required fees paid to the Arizona Department of Revenue 84,207 - 4. Present value of net minimum capital lease and installment purchase contract payments recorded - - as expenditures at inception of the agreements - - 5. Involuntary court judgments - - 6. Total subtractions 84,207 5,077,322 C. Additions: 1. Principal payments on long-term debt - 349,159 2. Acquisition of capital assets - 12,282,931 3. Claims paid in the current year but reported as expenses incurred but not reported in previous years - - 4. Landfill closure and postclosure care costs paid in the current year but reported as expenses in previous years - - 5. Pension Contributions - 181,585 6. Total additions - 12,813,675 D. Amounts reported on Part II, Line A 134,001,217$ 18,858,769$ TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT-RECONCILIATION YEAR ENDED JUNE 30, 2017 See accompanying notes.6 Internal Service Funds Fiduciary Funds Total 4,132,618$ -$ 149,340,458$ - - 4,550,776 - - 320,308 - - - - - - - - - - - - - - 206,238 - - - - - 84,207 - - - - - - - - - - - 5,161,529 - - 349,159 - - 12,282,931 - - - - - - - - 181,585 - - 12,813,675 4,132,618$ -$ 156,992,604$ 7 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT Year Ended June 30, 2017 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07, and in accordance with the voter-approved alternative expenditure limitation adopted November 8, 2016, as authorized by the Arizona Constitution, Article IX, §20 (9). In accordance with the UERS requirements, a note to the AELR is presented below for any exclusion claimed on part II and each subtraction or addition in the Reconciliation that cannot be traced directly to an amount reported in the fund financial statements. All references to financial statement amounts in the following notes refer to the Statement of Revenues, Expenditures, and Changes in Fund Balances for the Governmental Funds, Statement of Revenues, Expenses, and Changes in Net Position for the Proprietary Funds, Statement of Cash Flows for the Proprietary Funds and the Statement of Changes in Fiduciary Net Position for the Fiduciary Funds. NOTE 2 EXCLUSIONS The exclusion claimed for debt service requirements on other long-term obligations in the Governmental Funds consists of $5,083,000 for principal and $3,882,244 for interest expenditures. The exclusion claimed for debt service requirements on other long-term obligations in the Enterprise Funds consists of $349,159 for principal and $133,694 for interest expenditures. The exclusion claimed for grants and aid from the federal government in the Governmental Funds consists of $994,768 in expended intergovernmental revenues. The $253,492 exclusion claimed for grants, aid, contributions or gifts from a private agency, organization or individual except amounts received in lieu of taxes consists of expended intergovernmental revenues received from State grants received. NOTE 3 RECONCILIATION DEDUCTIONS AND ADDITIONS The deductions for depreciation and pension expense and the additions for principal payments, the acquisition of capital assets, and pension contributions are all provided in the Statement of Revenues, Expenses, and Changes in Fund Net Position for the proprietary funds and the financial statement footnotes 5, 6, and 9. The addition of $349,159 for principal payments on long-term debt in the Enterprise Funds consists of $213,159 paid on loans payable and $136,000 paid on bonds payable, during the current fiscal year. The addition for the acquisition of capital assets consists of $12,282,931 paid for various capital assets in the Enterprise Funds. 8 NOTE 3 RECONCILIATION DEDUCTIONS AND ADDITIONS (Continued) The subtraction of $206,238 for pension expense consists of the change in net position liability recognized in the current year in the Enterprise Funds. The addition of $181,585 for pension contributions paid in the current year consists of the required pension contributions made to the Arizona State Retirement System from the Enterprise Funds. The subtraction of $84,207 for fees required by law to be paid to Arizona state agencies consists of payments to the Arizona Department of Revenue as required by Laws 2015, Chapter 323, HB2617, which were recorded as general government expenditures. 9