HomeMy WebLinkAbout2018 Financial Statement June 30
TOWN OF MARANA, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
Issued by:
Town of Marana Finance Department
_____________________________
11555W. Civic Center Dr., A3
Marana, Arizona 85653
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 27
Statement of Activities 28
Fund Financial Statements:
Balance Sheet – Governmental Funds 32
Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position 35
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 36
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances - Governmental Funds to the
Statement of Activities 39
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Cont’d)
FINANCIAL SECTION(Cont’d)Page
BASIC FINANCIAL STATEMENTS (Concl’d)
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – General Fund 40
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Budget and Actual – Highway User Revenue Fund41
Statement of Net Position – Proprietary Funds 42
Statement of Revenues, Expenses and Changes in Fund Net Position –
Proprietary Funds 43
Statement of Cash Flows – Proprietary Funds 44
Notes to Financial Statements 45
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of the Town’s Proportionate Share of the Net Pension Liability -
Cost-Sharing Pension Plans 86
Schedule of Changes in the Town’s Net Pension Liability (Asset) and –
Related Ratios Agent Pension Plans 87
Schedule of Town Pension Contributions 89
Notes to Pension Plan Schedules93
Schedule of Agent OPEB Plans’ Funding Progress 94
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 Fund99
PAG/RTA Capital Fund 100
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Cont’d)
FINANCIAL SECTION(Cont’d)Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES (Cont’d)
Sales Tax Capital Fund 101
Transportation Capital Fund102
Non-Major Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 104
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type105
Non-Major Special Revenue Funds:
Combining Balance Sheet 108
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 110
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual112
Non-Major Capital Projects Funds:
Combining Balance Sheet 120
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances122
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual 124
Non-Major Debt Service Fund:
Combining Balance Sheet 134
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 136
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Cont’d)
FINANCIAL SECTION(Concl’d)Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES (Concl’d)
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual 138
STATISTICAL SECTION
FINANCIAL TRENDS
Net Position by Component – Last Ten Fiscal Years 146
Changes in Net Position – Last Ten Fiscal Years 148
Governmental Activities Tax Revenues by Source – LastTen Years 152
Fund Balances of Governmental Funds – Last Ten Fiscal Years153
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years154
REVENUE CAPACITY
Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable 158
Property – Last Ten Years
Property Tax Rates – Direct and Overlapping Governments – Last Ten Years 160
Principal Property Taxpayers – Current Year and Nine Years Ago 162
Property Tax Levies and Collections – Last Ten Fiscal Years 163
Tangerine Farms Road Improvement District Assessments 164
DEBT CAPACITY
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 188
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 189
Direct and Overlapping Governmental Activities Debt 190
TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS(Concl’d)
STATISTICAL SECTION(Concl’d)Page
DEBT CAPACITY (Concl’d)
Legal Debt Margin Information191
Pledged-Revenue Coverage – Last Ten Fiscal Years 192
DEMOGRAPHIC AND ECONOMIC INFORMATION
Demographic and Economic Statistics – Last Ten Fiscal Years 193
Principal Employers – Current Year and Nine Years Ago194
OPERATING INFORMATION
Full-time Equivalent City Government Employees by Function – Last 195
Ten Fiscal Years
OTHER INFORMATION
Sales Tax by Industry – Last Ten Years 196
Excise Tax Collections – Last Ten Years 198
Principal Retail and Contracting Sales Taxpayers – Current
and Nine Years Ago200
Single Family Residential Permits Issued – Last Ten Years201
Capital Assets Statistics by Function 202
AUDITOR’ SECTION
Independent auditors’ report on internal control over financial reporting
and on compliance and other matters based on an audit of financial
statements performed in accordance with government auditing standards 203
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INTRODUCTORY SECTION
December 5, 2018
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, 2018.
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, 2018, 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 unmodified opinion that the Town’s financial statements for the fiscal year ended June 30,
2018, 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.
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
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of 44,000.
In its infancy, the Town was primarily a rural, agricultural community. However, throughannexations 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, Arizona Pavilions, and the Marana Center.
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 355 employees is responsible for the functions
and operations of the Town government.
Economic Condition and Outlook
The local economy continued to improve during the current fiscal year. Revenues in the General Fund grew by
approximately 9% overall with growth in licenses, fees and permits revenues of 15%. Transaction privilege taxes
grew by $1.9 million or 7.7% overall, which demonstrates continued growth and improvement in the economy. The
Town has seen improvements in economically sensitive revenues over the past several years and the revenue
forecast for fiscal year 2018-19 anticipates a continuation of General Fund revenue growth of 2.2%. Expenditures in
the General Fund grew by approximately 2.7% overall. The Town was able to provide team based merit increases
to employees while maintaining costs in commodities and services received in order to stay within budget. The
General Fund expenditures were $8.6 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
As described above, key revenues including transaction privilege taxes and licenses, fees and permits 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, 2018, the Town’s governmental funds reported a combined fund balance of $72.4 million, of which
$22.3 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 58.4% of general fund revenues.
Of those revenues, retail comprised 51.8% and restaurants and bars, construction, and utilities comprised 30.9% of
total transaction privilege tax revenues. Sales taxes and revenues related to the residential and commercial
construction industry continued to improve during the fiscal year. The Council approved a temporary half-cent sales
tax increase, which began on July 1, 2015, for the construction of a new police facility. On October 16, 2018, Town
Council repealed the half-cent sales tax effective January 1, 2019.
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Future Economic Outlook
The Town of Marana has recovered from the recession in several key areas including most transaction privilege tax
industry groups. The Town’s goal in managing budgets is to structurally balance on-going revenues matched with
on-going expenses and one-time revenues aligned with one-time expenses. 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. Marana continues to lead the region in the
construction of new single-family homes, with 818 new homes permitted in fiscal year 2018. In the past year, the
Town has also completed construction of major community improvements, including the new Water Reclamation
Facility, a major expansion to the Tangerine Road Corridor, as well as the new Tangerine Sky Community Park, and
the Splash Pad at Crossroads District Park. Commercial growth continues in Marana, with several new medical
facilities opening or constructing this year, including the Northwest Emergency Hospital on Twin Peaks, and the
Carondelet Micro-Hospital on Cortaro, and exciting new amenities such as the upcoming Hampton Inn at Marana
Center, and Top Golf, the only recreational facility of its kind in Southern Arizona. The Town will continue to
facilitate economic growth through infrastructure projects in the coming year, with road, water, and parks
infrastructure projects planned throughout the community.
Accomplishments and Initiatives
During fiscal year 2018, the Town had several significant accomplishments and initiatives.
Strategic Plan IV
In September 2017 the Town released Strategic Plan IV. This document presents updated goals and initiatives
outlining the vision for the future, and focuses on ensuring financial sustainability, quality public service, strategic
partnerships, and local resource investment. The five focus areas are commerce, community, innovation, heritage,
and recreation.
Commissioning of the New Water Reclamation Facility
Marana is the fastest-growing community in Southern Arizona. To accommodate that desert growth requires water,
and several years ago the Town Council made a decision to invest in that precious resource for future generations.
The new Water Reclamation Facility will allow reclaimed Marana water to be treated here and to be recharged back
into the aquifer, affording the Town valuable water credits for future growth.
New Marana Public Safety Facility
Several years in development, the Town of Marana welcomed a new addition to its Municipal Complex campus this
year: the brand-new Public Safety Facility. The Town Council had voted to institute a temporary half-cent sales tax
increase specifically allocated to fund the facility, and have now voted again to sunset the increase as of January
2019. The state-of-the-art facility houses a growing police force with everything they need to serve and protect the
Marana community.
Animal Services Division
The Town of Marana is always trying to find ways to serve its residents in more efficient and effective ways. This
past year saw the development of the Town’s own Animal Services Division created specifically to serve that
purpose. Previously, the Town had been part of a regional contract for these services, but had received many
reports that the customer service was lacking. For the same cost, the Town has been able to operate its own Animal
Services division and provide high-quality service directly to Marana residents and their pets.
Tangerine Corridor Expansion
Part of the Regional Transportation Authority plan, this road expansion project spanned three jurisdictions, from
Marana, to Pima County, to Oro Valley. With the Town of Marana as Project Manager, the Tangerine Road
Expansion included an addition of two new lanes, a landscaped median, multi-use pedestrian and cyclist paths,
drainage improvements, and wildlife corridors. With the connection to Twin Peaks Road, the expansion of Tangerine
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Road creates a beautified corridor from Interstate 10 to Oracle Road, representing a major economic opportunity for
the three communities involved.
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 November 8, 2016, 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.
The Office of Management and Budget (OMB) set the single audit (OMB Circular A-133) threshold for federal
awards to $750,000. As such, the Town did not meet the minimum threshold to have a single audit performed.
Certificateof 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, 2017. This was the tenth 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, effective and dedicated services
of the entire staff of the Finance Department and the assistance of personnel in the various departments. We
would like to express our appreciation to all members who assisted and contributed to the preparation of this
report.
We would also wish to express our sincere appreciation to the Mayor and Council for unfailing support in
maintaining the highest standards of professionalism in the management of the Town of Marana’s finances.
Respectfully submitted,
Jamsheed Mehta Yiannis Kalaitzidis
Town Manager Finance Director
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TOWN OF MARANA, ARIZONA
PRINCIPAL OFFICIALS OF THE TOWN OF MARANA
FISCAL YEAR 2018
MAYOR AND COUNCIL
Ed Honea, Mayor
Jon Post, Vice Mayor Herb Kai, Councilmember
John Officer, Councilmember Roxanne Ziegler, Councilmember
Dave Bowen, CouncilmemberPatti Comerford, Councilmember
MANAGEMENT STAFF
Jamsheed Mehta, Town Manager
Erik Montague, Deputy Town Manager
DEPARTMENT HEADS
Jason Angell, Development ServicesDirector Curry C. Hale, Human Resources Director
Hilary Hiser, Interim Town Clerk Frank Cassidy, Town Attorney
Keith Brann, Town Engineer Yiannis Kalaitzidis, Finance Director
Mo El-Ali, Public Works Director Steve Miller, Airport Director
Terry Rozema, Police Chief Laine Sklar, Town Magistrate
Lisa Shafer, Community Development and Vacant, Technology Services Director
Neighborhood Services Director
Jim Conroy, Parks and Recreation DirectorJohn Kmiec, Utilities Director
Curt Woody, Director of Economic Development
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2018
FISCAL YEAR
ORGANIZATIONAL CHART
TOWN OF MARANA, ARIZONA
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INDEPENDENT AUDITORS’ REPORT
The Honorable Mayor and Town Council
Town of Marana, Arizona
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
Town of Marana, Arizona, as of and for the year ended June 30, 2018, 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 auditors’
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
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.
Tempe Scottsdale Casa Grande www.hhcpa.com
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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, 2018, and the respective changes in financial position and, where applicable, cash
flows thereof and the respective budgetary comparison for the General Fund and the Highway
User Revenue Fund for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Emphasis of Matter
As discussed in Note 2 to the financial statements, the 2017 financial statements have been
restated to correct a misstatement. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and pension information as listed in the table of
contents 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, the 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.
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
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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 and schedules 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.
Compliance Over the Use of Highway User Revenue Fund and Other Dedicated State
Transportation Revenue Monies
In connection with our audit, nothing came to our attention that caused us to believe that the
Town of Marana, Arizona failed to use highway user revenue fund monies received by the Town
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, insofar as they relate to accounting matters. However, our audit was
not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we
performed additional procedures, other matters may have come to our attention regarding the
Town of Marana’s noncompliance with the use of highway user revenue fund monies and other
dedicated state transportation revenues, insofar as they relate to accounting matters.
The communication related to compliance over the use of highway user revenue fund and other
dedicated state transportation revenue monies in the preceding paragraph is intended solely for
the information and use of the members of the Arizona State Legislature, the Board of
Supervisors, management, and other responsible parties with the Town and is not intended to
be and should not be used by anyone other than these specified parties.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 5, 2018 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 5, 2018
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MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
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TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
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, 2018. 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 increased by $26.5 million or 7.9 percent from the previous fiscal year 2016-
17.The increase is primarily due to an increase in capital asset. The increase in capital assets is primarily
due to the Tangerine Road Corridor project, Police Facility project, Wastewater Facility project, and
developer contributions of road, water, and wastewater infrastructure.
General revenues from governmental activities, excluding transfers, accounted for $55.8 million in revenue,
or 57.7 percent of all revenues from governmental activities. Program specific revenues in the form of
charges for services and grants and contributions accounted for $40.9 million or 42.3 percent of total
revenues from governmental activities. The Town had $17.3 million of program revenues related to
business-type activities. Overall revenues have decreased by 5.6 percent, which can be attributed to a
decrease in governmental capital grants and contributions. This decrease is primarily due to a decrease in
reimbursements for the Tangerine Road Corridor project. The largest increases in revenue in fiscal year
2017-18 was an 11.2 percent increase in sales taxes, a 203.2 percent increase in investment income, and
an 11.7 percent increase in charges for services.
The General Fund had $46.6 million in fiscal year 2017-18 revenues, which primarily consisted of sales
taxes, intergovernmental revenue and licenses, fees and permits. The General fund had $37.7 million of
expenditures, $3.1 million transfers in, and $7.5 million in required transfers out during the year. The $4.5
million fund balance increase is attributed to higher than anticipated revenues in sales taxes and licenses,
fees and permits as well as prudent use of Town funds for departmental expenditures.
Highway User Revenue Fund revenues continue to grow in fiscal year 2017-18 at $3.3 million. Expenditures
were 21 percent lower than the previous year due to delayed projects for the pavement preservation
program. Fund balance increased by $495,339 and ended the fiscal year at $1.9 million.
Tangerine Farms Road Improvement District Debt Service Fund, which accounts for special assessments,
had a $707,418 fund balance attributable to the accumulation of prepaid assessments and resources
required for debt service payment.
The PAG/RTA Capital Fund remains a major fund in fiscal year 2017-18 due to the continued increase in
revenues and expenditures primarily related to the Tangerine Road Corridor project. The revenues
decreased 38.29 percent and the expenditures decreased 43.46 percent as this project is nearing
completion.
The Sales Tax Capital Fund became a major fund in fiscal year 2017-18 due to the increased liabilities and
expenditures related to the Police Facility project. The project is expected to be complete in fiscal year
2018-19. Fund balance at the end of the year was $3.1 million.
The Transportation Fund had an increase in revenue of 31.14 percent in fiscal year 2017-18 due to increase
tax revenues. There was an increase of 383.93 percent in expenditures due to certain transportation
improvement projects.
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TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
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,
The focus on net position
liabilities, and deferred inflows of resources with the difference reported as 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 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 27-29 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
8
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
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 fundsare used to account for essentially the same functions reported as
Governmental funds.
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 Fund, Highway User Revenue,
Tangerine Farms Road Improvement District Debt Service, PAG/RTA Capital, Sales Tax Capital, and Transportation
Capital Fund all of which are considered to be major funds. Data from the other governmental funds are combined
into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements and schedules. These statements are included as supplementary
information after the basic financial statements starting on page 104.
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, PAG/RTA Capital, Sales Tax
Capital, Transportation Capital, and other non-major governmental funds. Budgetary comparison statements are
provided for the General Fund and Highway User Revenue fund within the basic financial statements on pages 40-
41. Budgetary comparison schedules have been presented for the Town’s major debt and capital funds on pages
99-102, 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 32-39 of this report.
Proprietary funds. The Town maintains two different types of proprietary funds. 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, which are primarily supported
by user charges and fees. Internal service funds are an accounting device used to accumulate and allocate costs
internally among the Town’s various functions. The Town uses an internal service fund to account for the employee
health and dental benefits. Because the services of internal service funds predominantly benefits governmental
rather than business-type functions, they have been included within governmental activities in the government-wide
financial statements. 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.
9
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
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
progress in funding its obligation to provide pension and OPEB benefits to its employees. Governments are required
to disclose certain information about employee pension funds. These disclosures are included within Note 10
Employee Retirement Systems beginning on page 63 in addition to the information on pages 86-94 reported 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 and deferred inflows by $361.6
million as of June 30, 2018. Current and other assets decreased $16.6 million or 17.5 percent primarily due to a
lower cash position. This is a result of bond proceeds that were spent for Wastewater projects. Noncurrent assets
decreased primarily due to a restatement, which is included in the note disclosures within Note 2 Restatement of
Net Position. The current liabilities increased by $6.4 million or 35.4 percent, which is attributable to an increase in
accounts payable, accrued interest payable, and the special assessment bond and revenue bond payments due
within one year.
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.
The following table presents a summary of the Town’s net position for the fiscal years ended June 30, 2018 and
June 30, 2017.
10
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
Governmental ActivitiesBusiness-type Activities Total
20182017 2018 2017 2018 2017
Current and other
assets$99,908,458$97,771,267 $ 1,134,123$ 22,934,999 $101,042,581 $120,706,266
Capital assets, net 298,014,680 273,651,004 120,068,186 126,192,867 418,082,866 399,843,871
Total assets, net 397,923,138 371,422,271 121,202,309 149,127,866 519,125,447 520,550,137
Deferred outflows
related to pensions8,973,65510,253,753 372,785 573,413 9,346,440 10,827,166
Deferred charge on
refunding 1,751,3021,879,822--1,751,3021,879,822
Total deferred
outflows of
resources 10,724,957 12,133,575 372,785 573,413 11,097,742 12,706,988
Current and other
liabilities 21,084,296 13,558,120 3,447,782 4,553,503 24,532,078 18,111,623
Long-term liabilities115,703,142 120,641,925 26,161,056 26,657,272 141,864,198 147,299,197
Total liabilities 136,787,438 134,200,045 29,608,838 31,210,775 166,396,276 165,410,820
Deferred inflows
related to pensions 2,138,953 2,936,513 108,826 282,195 2,247,779 3,218,708
Total deferred
inflows of
resources 2,138,953 2,936,513 108,826 282,195 2,247,779 3,218,708
Net position:
Net investment in
capital assets 236,207,921 210,137,199 95,777,056 101,523,564 331,984,977311,660,763
Restricted 17,241,37931,162,624 365,485 365,485 17,606,864 31,528,109
Unrestricted 16,272,404 5,119,465 (4,285,111) 16,319,260 11,987,293 21,438,725
Total net
position$269,721,704 $246,419,288 $91,857,430 $118,208,309 $361,579,134 $364,627,597
Net investment in capital assets, which reflects the Town’s investment in capital assets net of accumulated
depreciation and any related outstanding debt issued to acquire or construct those assets, was $331.6 million or
91.8 percent, which represents the largest portion of net position. This portion of net position increased by $20.3
million as of June 30, 2018. Increases in capital assets of $70.5 million due to capital asset related expenditures and
donated assets as well as decreases to outstanding debt as a result of regular principal payments contributed to the
increase in net investment in capital assets. This increase was offset by deletions to capital assets as well as a
restatement, which reduced the capital assets in the Wastewater fund.
The second portion of net position of $17.6 million or 4.9 percent represents resources that are subject to external
restrictions on how they may be utilized. The decrease of $13.9 million or 44.2 percent is primarily due to the
spending of impact fees toward capital projects.
The third portion consists of unrestricted net position of $12 million or 3.3 percent. The unrestricted balance has
decreased by $9.5 million. The business-type activities had a decrease in unrestricted net position of $20.6 million
primarily related to the spent bond proceeds for the Wastewater Reclamation Facility. This decrease was offset by
an increase of $11.1 million in the governmental activities unrestricted net position primarily due to increases in
General Fund and Transportation resources.
11
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
Changes in net position.The Town’s total revenues for the fiscal year ended June 30, 2018, were $114.2
million, which was an overall decrease of $6.8 million or 5.6 percent. Specifically, the decrease of $18.5 million was
in governmental activities capital grants and contributions, which is due to reimbursable project costs decreasing
related to the Tangerine Road Corridor project. The decrease was offset by increases in all other categories. Sales
tax revenues overall have also continued to increase $4.2 million or 11.2 percent, which is largely due to new
commercial development and an overall recovering economy. Additionally, charges for services and state shared
revenues continued to increase due to continued growth.
The total cost of all programs and services was $87.7 million. The decrease of $13.3 million or 13.1 percent is
primarily attributable to reduced spending on the Tangerine Road Corridor project costs related to other
jurisdictions. The following table presents a summary of the changes in net position for the fiscal years ended June
30, 2018 and June 30, 2017.
12
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
Governmental Activities Business-type Activities Total
2018 20172018 20172018 2017
Revenues:
Program revenues:
Charges for services $10,389,946 $ 9,550,903 $ 7,405,399 $ 6,380,137 $17,795,345 $15,931,040
Operating grants and
contributions4,665,0384,619,454 - - 4,665,0384,619,454
Capital grants and
contributions25,856,050 44,370,835 9,890,570 5,940,747 35,746,62050,311,582
General revenues:
Sales taxes 41,689,482 37,500,219 - - 41,689,48237,500,219
Property taxes 553,403 508,819 - - 553,403 508,819
Franchise taxes 507,073 488,477 - - 507,073 488,477
State shared revenues 11,505,675 10,619,017 - - 11,505,67510,619,017
Investment income 662,797 237,809 187,213 42,545 850,010 280,354
Miscellaneous
revenues 885,174 744,452 29,580 54,031 914,754 798,483
Total revenues 96,714,638 108,639,985 17,512,762 12,417,460 114,227,400121,057,445
Expenses:
General government 18,491,725 19,393,387 - - 18,491,72519,393,387
Public safety 16,114,146 16,735,675 - - 16,114,14616,735,675
Highways and streets 27,892,754 40,172,247 - - 27,892,75440,172,247
Health and welfare236,628 277,906 - - 236,628277,906
Economic and
community development 4,328,283 4,901,872 - - 4,328,283 4,901,872
Culture and recreation 5,146,978 6,006,335 - - 5,146,978 6,006,335
Interest on long-term
debt 3,076,938 2,335,044 - - 3,076,938 2,335,044
Water - - 5,979,081 5,367,466 5,979,081 5,367,466
Wastewater--4,598,1153,982,665 4,598,1153,982,665
Airport - -1,816,222 1,772,285 1,816,222 1,772,285
Total expenses 75,287,452 89,822,466 12,393,418 11,122,416 87,680,870100,944,882
Increase/(decrease)
in net position before
transfers 21,427,186 18,817,519 5,119,344 1,295,044 26,546,53020,112,563
Transfers 1,875,230(2,878,195)(1,875,230) 2,878,195 --
Increase/(decrease)
in net position 23,302,416 15,939,324 3,244,114 4,173,239 26,546,53020,112,563
Net position,
beginning of year, as
restated 246,419,288 230,479,964 88,613,316 114,035,070 335,032,604344,515,034
Net position, end of
year$269,721,704$246,419,288 $91,857,430 $118,208,309 $361,579,134$364,627,597
13
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
Governmental Activities. Governmental activities increasednet positionby $23.3million for fiscal year ended
June 30, 2018. This increase is attributable to the increases in charges for services, sales tax revenue and state
shared revenues. Also, as previously mentioned, the economic resources measurement focus is used for reporting
government-wide financial information, as such, there was an increase in capital expenditures of $19 million and
contributions of infrastructure assets of $6.9 million, which contributed to the increase in governmental net position.
The sales tax revenue increased by $4.2 million from the prior year, which is a larger increase from the prior year
due to continued development and economic growth.
Transfers decreased by $4.8 million from the prior year. This is primarily due to a one time transfer of funds in the
prior year of $3.2 million from refunding bonds to the Wastewater fund. Primarily the $1.8 million of transfers are
contributions from Water and Wastewater to governmental activities for debt service payments.
The following table presents the cost of the nine major Town functional activities. The table also shows each
function’s net cost (total cost less charges for services generated by the activities and intergovernmental aid
provided for specific programs). The net cost shows the financial burden that was placed on the State and Town’s
taxpayers by each of these functions.
Year Ended June 30, 2018 Year Ended June 30, 2017
Total Net (Expense)/ Total Net (Expense)/
Expenses Revenue Expenses Revenue
Governmental Activities
General government$ 18,491,725 $ (12,954,447) $ 19,393,387 $(14,113,064)
Public safety 16,114,146 (15,148,667) 16,735,675 (15,805,657)
Highways and streets 27,892,754 (1,349,573) 40,172,247 4,836,412
Health and welfare236,628 (212,948) 277,906 (256,595)
Economic and community
development 4,328,283 1,967,506 4,901,872 1,190,122
Culture and recreation 5,146,978 (3,601,351) 6,006,335 (4,797,448)
Interest on long-term debt 3,076,938 (3,076,938) 2,335,044 (2,335,044)
Total$ 75,287,452 $ (34,376,418) $ 89,822,466 $(31,281,274)
Business-Type Activities
Water5,979,081 $ 6,387,711 $ 5,367,466 $ 3,048,700
Wastewater 4,598,115 7,686 3,982,665 (1,153,624)
Airport 1,816,222 (1,492,846) 1,772,285 (696,608)
Total$ 12,393,415 $ 4,902,551 $ 11,122,416 $ 1,198,468
The cost of all governmental activities this year was $75.3 million. The 16.2 percent decrease in
governmental activities expenses is primarily due to a reduction in highways and streets costs associated
with the Tangerine Road Corridor project, which decreased $11.7 million. Depreciation was lower in the
current year by approximately $900,000.
Net cost of governmental activities of $34.4 million was largely financed by general revenues, which are
made up of primarily sales taxes totaling $41.7 million.
The Wastewater fund expenses increased $0.6 million or 15.5 percent. This is primarily due to a loss on
disposal of capital assets.
14
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
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 $40.9 million are 54.3 percent of expenses for fiscal year 2018, down from 65.2 percent a year earlier.
As described earlier, this decrease is attributable to lower collections in the capital grants and contributions
revenues related to a one time reimbursements of major capital projects.
As seen on the following graphs, the largest revenue source for the Town’s governmental activities is sales tax
revenues at 43.1 percent, followed by capital grants and contributions at 26.7 percent, State shared revenues at
11.9 percent, and charges for services at 10.8 percent. This is a change from the prior year, as capital grants and
contributions were the largest revenue source in fiscal year 2017. Again, this is due to rising sales tax collections
and the reduction in reimbursements related to the Tangerine Road project. The Town’s largest expense category is
highways and streets at 37.0 percent, followed by general government at 24.7 percent and public safety at 21.4
percent.
15
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
16
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
Business-type Activities
Business-type activities’ net position increased by $3.2 million for fiscal year ended June 30, 2018. This increase is
largely related to capital contributions in the Water fund of developer contributed infrastructure. Charges for
services increased slightly due to continued growth.
Capital grants and contributions increased by $3.9 million or 66.5 percent. This was primarily due to an increase in
infrastructure contributed to the Town from developers largely for Water and Wastewater related infrastructure in
Gladden Farms and Saguaro Springs (Bloom).
Business-type activity expenses increased by $1.3 million or 11.4 percent primarily due to a loss on disposal of
capital assets in Wastewater.
The Town’s largest overall business-type activity is the Water Utility with $6.0 million in expenses and $12.4 million
in program revenues during the year. The second largest activity is the Wastewater Utility with $4.6 million in
expenses and $4.6 million in program revenues, followed by the Airport with $1.8 million in expenses and $0.3
million in program revenues.
As seen on the following graph, the largest revenue source for the Town’s business-type activities is capital grants
and contributions at 56.5 percent followed by charges for services revenues at 42.3 percent.
17
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
FINANCIAL ANALYSIS OF THE TOWN’SFUNDS
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, 2018, the
Town’s governmental funds reported a combined fund balance of $72.4 million, of which $22.3 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 $29.6million. Revenues
and expenditures increased slightly from the previous year. The primary increases in revenues were related to sales
taxes, intergovernmental, and licenses, fees and permits. The increase in expenditures relates to team based
increases for employees, which was offset significantly due to vacancy savings in key positions throughout the fiscal
year.
The Transportation Fund had a fund balance of $17.0 million which reflected an increase of $4.2 million from a year
earlier. Sales tax revenues increased $1.7 million or 30.0 percent over the prior year.
18
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
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 business-type activities proprietary funds net position of
$91.9 million, $95.8 million comprised the funds’ net investment in capital assets. $0.4 million is restricted for debt
service and unrestricted net position of ($4.3) 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.
Although agriculture remains a major force in Marana’s economy, a recent influx of residential and commercial
development has occurred due to the Town’s location between Phoenix and Tucson along I-10 and the Union Pacific
Railroad. The Town is also a business-friendly government, which does not impose a Marana property tax. General
Fund revenues exceeded conservative budget projections in several key revenue sources like sales taxes and
licenses, permits and fees. Departments maintained their conservative use of available resources. The prudent
use of funds as well as higher than expected revenues resulted in an increase in fund balance of $4.6 million. The
General Fund budget and actual variances are shown on page 40.
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, 2018the Town had invested $418.1 million in governmental and business-type
capital assets (net of accumulated depreciation). Total depreciation expense for the year was $21.3 million, with
$17.7 million attributed to governmental activities and $3.6 million to business-type activities.
In 2012 the Town acquired the Marana Wastewater Reclamation Facility from Pima County. The facility included
various components ranging from buildings to sewer lines and manholes. In fiscal year 2018, a comparative review
of the system to Marana’s Geographic Information System (GIS) software indicated the Town’s fixed asset program
included sewer lines and manholes still under the County’s ownership. The beginning balance has been restated to
remove County owned assets and correctly show the value of Town owned assets. The total reduction to capital
assets related to the restatement is $29.6 million in the business-type activities.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2018 and June 30, 2017.
Additional information on the Town’s capital assets can be found in Note 6.
19
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
Governmental Activities Business-type Activities Total
As of As of As of As of As of As of
June 30, June 30,
June 30, 2018 June 30, 2017 2018 2017 June 30, 2018 June 30, 2017
Land $ 7,659,942 $ 6,988,518 $ 4,465,411 $ 4,493,811 $ 12,125,353 $ 11,482,329
Water rights - - 4,430,930 4,430,930 4,430,930 4,430,930
Construction in
progress 60,357,654 30,921,798 30,315,856 12,804,795 90,673,510 43,726,593
Buildings and
improvements 45,295,675 45,283,387 107,883,970 134,089,117 153,179,645 179,372,504
Machinery and
equipment 20,335,042 20,258,351 1,575,133 1,426,571 21,910,175 21,684,922
Infrastructure 368,364,932 356,969,064 - - 368,364,932 356,969,064
Less:
Accumulated
depreciation (203,998,565) (186,770,114) (28,603,114) (31,052,357) (232,601,679) (217,822,471)
Total$298,014,680 $273,651,004 $120,068,186 $126,192,867 $418,082,866 $399,843,871
Major capital asset events during the current fiscal year included the following:
Construction of the Tangerine Sky Park (construction in progress as of the close of the fiscal year had
reached $3.5 million).
Construction of the groundwater recharge facility (construction in progress at the close of the fiscal year
had reached $2.8 million).
Completion of the Tangerine/Downtown Sewer Conveyance System Phase 2 of $2.2 million.
Expansion of the wastewater reclamation facility to 1 Millions of Gallons per Day (MGD) (construction in
progress as of the close of the fiscal year had reached $26.1 million).
Design and construction of the Marana Road Realignment (construction in progress as of the close of
the fiscal year reached $2.2 million).
Design and construction of the new Police Facility (construction in progress as of the close of the fiscal
year had reached $14.9 million).
Widening of Tangerine Road (construction in progress as of the close of the fiscal year had reached
$32.1 million).
Debt Administration. At year-end, the Town had $107.9 million in long-term debt obligations outstanding with
$6 million due within one year.
The Town’s total debt decreased by $3.1 million during the current fiscal year due to regularly scheduled principal
reductions.
The following table presents a summary of the Town’s outstanding debt for the fiscal years ended June 30, 2018
and June 30, 2017. Additional information on the Town’s long-term obligations can be found in Note 7.
20
TOWN OF MARANA, ARIZONA
MANAGEMENT’SDISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2018
Governmental Activities Business-type Activities Total
20182017 20182017 20182017
General
obligation bonds$ 7,745,000 $ 7,955,000 $ -$ -$ 7,745,000 $ 7,955,000
Revenue bonds55,835,000 57,840,000 20,719,000 20,858,000 76,554,000 78,698,000
Special
assessment
bonds14,200,132 14,245,132 --14,200,132 14,245,132
Loan payable--3,201,5723,421,057 3,201,5723,421,057
Deferred bond
premium5,812,9296,253,495370,558390,2466,183,4876,643,741
Total $83,593,061 $86,293,627 $24,291,130 $24,669,303 $107,884,191 $110,962,930
ECONOMIC FACTORS ANDNEXT YEAR’S BUDGET AND RATES
Our Town has been a leader in residential construction activity in Pima County since the late 1990s. The Town
continues to grow in residential and commercial development. The Town is committed to provide exceptional
services and programs to our citizens. As a result, the Town adopted a fiscal year 2018-19 budget focused on the
Strategic Plan IV principles and goals. The 2017-18 budget decreased by $58.7 million or 29.3%. Most of that
change is attributable to several major capital projects that have been or will soon be completed. Several key
revenues like sales taxes, State shared revenues, building permits and planning fees increased modestly during the
fiscal year. The budget is structurally balanced with ongoing revenues supporting ongoing program expenditures.
The budget document is the comprehensive decision making tool resulting from the annual budget process. The
budget is a long-range plan by which financial policy is implemented and controlled.
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.MaranaAZ.gov.
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22
BASIC FINANCIAL STATEMENTS
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24
GOVERNMENT-WIDE FINANCIAL STATEMENTS
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26
TOWN OF MARANA, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2018
Governmental Business-type
ActivitiesActivitiesTotal
ASSETS
Current assets:
Cash and cash equivalents
$ 59,908,816 $ 7,359,132 $ 6 7,267,948
Property taxes receivable
2,020 - 2 ,020
Accounts receivable
286,112 894,231 1 ,180,343
Interest receivable
37,679 - 3 7,679
Due from other governments
9,373,493 3,746 9 ,377,239
Internal balances
700,000 (700,000) -
Prepaid items
688,648 37,173 7 25,821
Total current assets
70,996,768 7,594,282 7 8,591,050
Noncurrent assets:
Assessment receivable
13,760,335 -1 3,760,335
Restricted cash and investments
8,325,711 365,485 8 ,691,196
Internal balances
6,825,644 (6,825,644) -
Capital assets not depreciated
68,017,596 39,212,197 1 07,229,793
Capital assets (net of depreciation)
229,997,084 80,855,989 3 10,853,073
Total noncurrent assets
326,926,370 113,608,027 4 40,534,397
Total assets
397,923,138 121,202,309 5 19,125,447
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions
8,973,655372,785 9,346,440
Deferred charge on refunding
1,751,302- 1 ,751,302
Total deferred outflows of resources
10,724,957 372,785 11,097,742
LIABILITIES
Current liabilities:
Accounts payable
10,227,213 1,832,726 1 2,059,939
Accrued payroll and employee benefits
819,970 51,212 8 71,182
Unearned revenue
358,479 1,983 360,462
Deposits held for others
,819,467
1,078,810 740,657 1
Due to other government
83,730 233,845 3 17,575
Claims payable
305,075- 3 05,075
Accrued interest payable
1,580,05859,3901 ,639,448
Compensated absences
1,035,263 103,281 1 ,138,544
Loan payable
- 2 26,000 226,000
General obligation bonds - CFD
205,000 - 2 05,000
Special assessment bonds - TRFID
1,766,132 - 1 ,766,132
Revenue bonds
3,624,566 198,688 3 ,823,254
Total current liabilities
21,084,296 3,447,782 2 4,532,078
Noncurrent liabilities:
Compensated absences
115,02911,475 126,504
Net pension liablity
37,590,7502,283,139 39,873,889
Loan payable
- 2,975,572 2,975,572
General obligation bonds - CFD
7,540,000- 7 ,540,000
Special assessment bonds - TRFID
12,434,000- 1 2,434,000
Revenue bonds
58,023,36320,890,8707 8,914,233
Total non-current liabilities
115,703,142 26,161,056 1 41,864,198
Total liabilities
136,787,438 29,608,838 1 66,396,276
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions
2,138,953108,826 2,247,779
Total deferred inflows of resources
2,138,953 108,826 2 ,247,779
NET POSITION
Net investment in capital assets
236,207,921 95,777,056 3 31,984,977
Restricted for:
Capital projects
10,130,724 - 1 0,130,724
Debt service
311,756 365,485 6 77,241
General government
2,534,042 - 2 ,534,042
Public safety
2,190,586 - 2 ,190,586
Highways and streets
1,856,009 - 1 ,856,009
Economic and community development
218,262 - 2 18,262
Unrestricted
16,272,404 (4,285,111)1 1,987,293
Total net position
$ 269,721,704 $ 91,857,430 $ 3 61,579,134
The notes to the financial statements are an integral part of this statement.
27
TOWN OF MARANA, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2018
Program Revenues
Operating Capital Grants
Charges for
Grants and and
Functions/Programs ExpensesServicesContributionsContributions
Primary Government
Governmental activities:
General government
$ 18,491,725 $ 5,073,246 $ 464, 032$ -
Public safety
16,114,146 - 965, 479 -
Highways and streets
27,892,754 - 2, 974,510 23, 568,671
Health and welfare
236,628 - 23,680-
Economic and community
development
4,328,283 4,992,982 203,694 1,099,113
Culture and recreation
5,146,978 323,718 33,643 1, 188,266
Interest on long-term debt
3,076,938 - - -
Total governmental activities
75,287,452 10,389,946 4, 665,038 25, 856,050
Business-type activities:
Water
5,979,081 5,609,049 - 6, 757,743
Wastewater
4,598,115 1,502,216 - 3,103,585
Airport
1,816,222 294,134 - 29, 242
Total business-type activities
12,393,418 7,405,399 - 9, 890,570
Total primary government
$ 87,680,870 $ 17,795,345 $ 4, 665,038$ 35, 746,620
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, as restated
Net position, end of year
The notes to the financial statements are an integral part of this statement.
28
Net (Expense) Revenue and Changes in Net Position
Governmental Business-type
ActivitiesActivitiesTotals
$ (12,954,447) $ - $ (12,954,447)
(15,148,667) - (15,148,667)
(1,349,573) - (1,349,573)
(212,948) - (212,948)
1,967,506 - 1,967,506
(3,601,351) - (3,601,351)
(3,076,938) - (3,076,938)
(34,376,418) - (34,376,418)
- 6,387,711 6,387,711
- 7,686 7,686
- (1,492,846) (1,492,846)
- 4,902,551 4,902,551
(34,376,418) 4,902,551 (29,473,867)
41,689,482-41,689,482
553,403 - 553,403
507,073 - 507,073
11,505,675-11,505,675
662,797 187,213 850,010
885,174 29,580 914,754
1,875,230(1,875,230)-
57,678,834(1,658,437)56,020,397
23,302,4163,244,11426,546,530
246,419,288 88,613,316 335,032,604
$ 269,721,704 $ 91,857,430 $ 361,579,134
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30
FUND FINANCIAL STATEMENTS
31
TOWN OF MARANA, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2018
Tangerine Farms
Improvement
Highway User District Debt
General FundRevenueService
ASSETS
Cash and cash equivalents$ 20,880,649 $ 1,874,488 $ 315,271
Property taxes receivable - - -
Accounts receivable 225,778 - -
Special assessments receivable - - 13,760,335
Interest receivable 155 - -
Development agreement receivable - --
Due from other governments 3,550,393 304,337 -
Due from other funds 8,069,378 --
Prepaid items 427,200 - -
Restricted cash and investments - - 392,147
Total assets$ 33,153,553 $ 2,178,825$ 14,467,753
LIABILITIES
Accounts payable$ 1,327,262 $ 322,657 $ -
Accrued payroll and employee benefits811,134 159 -
Due to other funds - - -
Due to other governments83,730 - -
Deposits held for others 1,003,052 - -
Unearned revenue 340,452 - -
Total liabilities 3,565,630 322,816 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue--13,760,335
Total deferred inflows of resources--13,760,335
FUND BALANCES (DEFICITS)
Nonspendable4,852,844--
Restricted-1,856,009707,418
Unassigned24,735,079--
Total fund balances (deficits)29,587,923 1,856,009 707,418
Total liabilities, deferred inflow of
resources, and fund balances (deficits)
$ 33,153,553 $ 2,178,825 $ 14,467,753
The notes to the financial statements are an integral part of this statement.
32
Non-Major Total
PAG/RTA Sales Tax Governmental Governmental
CapitalCapitalTransportationFundsFunds
$ - $ 6,208,515 $ 7,701,517 $ 22,155,459 $ 59,135,899
- - - 2,020 2,020
- - - 1,596 227,374
- - - - 13,760,335
- 6,357 27,268 3,899 37,679
- - - 58,738 58,738
3,077,373 671,137 899,905 870,348 9,373,493
- - 2,400,000 - 10,469,378
- - - 261,448 688,648
- - 6,904,068 1,029,496 8,325,711
$ 3,077,373 $ 6,886,009$ 17,932,758$ 24,383,004$ 102,079,275
$ 1,999,407 $ 3,825,917 $ 906,923 $ 1,837,217 $ 10,219,383
- - 1,295 7,382 819,970
2,708,748 - - 234,986 2,943,734
- - - - 83,730
- - - 75,758 1,078,810
- - - 18,024 358,476
4,708,155 3,825,917 908,218 2,173,367 15,504,103
378,086-- 2,861 14,141,282
378,086-- 2,861 14,141,282
--2,400,000261,4487,514,292
-3,060,09214,624,54022,341,38642,589,445
(2,008,868)--(396,058)22,330,153
(2,008,868)3,060,09217,024,54022,206,77672,433,890
$ 3,077,373 $ 6,886,009 $ 17,932,758 $ 24,383,004 $ 102,079,275
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34
TOWN OF MARANA, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
YEAR ENDED JUNE 30, 2018
Total governmental fund balances$72,433,890
Amounts reported for governmental activities in the Statement of Net
Position are different because:
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds:
Governmental capital assets$ 502,013,245
Less accumulated depreciation (203,998,565) 298,014,680
Long-term liabilities, such as net pension liabilities and bonds payable, are
not due and payable in the current period and, therefore, are not reported
in the governmental funds:
Compensated absences (1,150,292)
Revenue bonds payable (55,835,000)
General obligation bonds payable (7,745,000)
Special assessment bonds (14,200,132)
Net pension liability (37,590,750)
Accrued interest payable (1,580,058) (118,101,232)
Internal Service Funds are used by management to charge the costs of
health and dental services. The assets and liabilities of the Internal
Service Fund are included in governmental activities in the Statement of
Net Position. 460,009
Deferred items related to the issuance of bonds and resources related to
pensions are applicable to future reporting periods and, therefore, are not
reported in the funds.
Bond premium (5,812,929)
Deferred charge on refunding1,751,302
Deferred inflows related to pensions(2,138,953)
Deferred outflows related to pensions8,973,655 2,773,075
Other long-term assets are not available to pay for current period
expenditures and, therefore, are reported as unavailable revenue in the funds.
Intergovernmental revenue 380,947
Special assessments revenue 13,760,335 14,141,282
Net position of governmental activities$ 269,721,704
The notes to the financial statements are an integral part of this statement.
35
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2018
Tangerine Farms
Improvement
Highway User
District Debt
General FundRevenueService
Revenues:
Sales taxes
$ 27,236,046 $ - $ -
Property taxes
- - -
Intergovernmental
11,506,531 3,316,057 -
Licenses, fees & permits
5,573,620 - -
Fines, forfeitures & penalties
612,638 - -
Charges for services
684,076 - -
Lease income
135,589 - -
Special assessments
- -988,702
Contributions
35,017 - -
Investment income
334,960 15,843 -
Miscellaneous
492,961 - -
Total revenues
46,611,438 3,331,900 988,702
Expenditures:
Current -
General government
11,338,936 - -
Public safety
14,110,604 - -
Highways and streets
2,533,544 2,254,322 -
Health and welfare
228,479 - -
Economic and community development
4,109,551 - -
Culture and recreation
4,749,400 - -
Capital outlay
667,504 582,239 -
Debt service -
Principal retirement
--45,000
Interest and fiscal charges
--253,563
Total expenditures
37,738,0182,836,561298,563
Excess (deficiency) of revenues over
expenditures
8,873,420 495,339 690,139
Other financing sources (uses):
Proceeds from sale of capital assets
46,243 - -
Transfers in
3,112,608 - -
Transfers out
(7,451,459) - -
Total other financing sources (uses)
(4,292,608) - -
Changes in fund balances
4,580,812 495,339 690,139
Fund balances (deficits), beginning of year
25,007,111 1,360,670 17,279
Fund balances (deficits), end of year
$ 29,587,923 $ 1,856,009 $ 707,418
The notes to the financial statements are an integral part of this statement.
36
Non-Major Total
Sales Tax
Governmental Governmental
PAG/RTA CapitalCapitalTransportationFundsFunds
$ -$ 5,526,253$ 7,368,949 $ 1,558,234 $ 41,689,482
- - - 572,492 572,492
14,118,211 - - 1,978,210 30,919,009
- - - 3,043,576 8,617,196
- - 7,700 130,168 750,506
- - - - 684,076
- - - - 135,589
- - - - 988,702
51,547 - - - 86,564
- 11,222 162,955 137,817 662,797
- - - 18,593 511,554
14,169,758 5,537,475 7,539,604 7,439,090 85,617,967
- - 953,743 656,022 12,948,701
- - - 663,729 14,774,333
- - 67,318 37,866 4,893,050
- - - - 228,479
- - - 342,792 4,452,343
- - - 153,958 4,903,358
13,858,196 11,508,382 2,735,911 11,607,573 40,959,805
---2,215,0002,260,000
---2,491,7972,745,360
13,858,19611,508,3823,756,97218,168,73788,165,429
311,562 (5,970,907) 3,782,632 (10,729,647) (2,547,462)
- - 46,243
-
59,866 620,248 804,295 8,010,227 12,607,244
(472,080) - (391,239) (2,417,236) (10,732,014)
(412,214) 620,248 413,056 5,592,991 1,921,473
(100,652) (5,350,659) 4,195,688 (5,136,656) (625,989)
(1,908,216) 8,410,751 12,828,852 27,343,432 73,059,879
$ (2,008,868) $ 3,060,092 $ 17,024,540 $ 22,206,776$ 72,433,890
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38
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, 2018
Net changes in fund balances - total governmental funds$(625,989)
Amounts reported for governmental activities in the Statement of Activities
are different because
Governmental funds report the portion of capital outlay for capitalized assets
as expenditures. However, in the Statement of Activities, the costs of those
assets are allocated over their estimated useful lives depreciation
expense.
Expenditures for capitalized assets$ 35,132,500
Less current year depreciation (17,681,601) 17,450,899
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.
Special assessment bond retirement 45,000
General obligation bond retirement 210,000
Revenue bond principal retirement 2,005,000 2,260,000
Contributions of infrastructure assets are not recorded as revenues
in the governmental funds. 6,912,777
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 (645,624)
Intergovernmental revenue48,452
Special assessments (484,797)
Compensated absences(61,236)
Proceeds from the sale of capital assets (46,243)
Gain on sale of assets 46,243
Amortization of deferred charges 312,046 (831,159)
Town pension contributions are reported as expenditures in the governmental funds
when made. However, they are reported as deferred outflows of resources in the
Statement of Net Position because the reported net pension liability is measured a
year before the Town's report date. Pension expense, which is the change in the
net pension liability adjusted for changes in deferred outflows and inflows of
resources related to pensions, is reported in the Statement of Activities.
Town pension contributions 3,179,118
Town proportionate share of State's appropriation to EORP 80,074
Pension expense (4,878,087) (1,618,895)
Internal service funds are used by the Town to charge the costs of health
and dental services. The net revenue (expense) is reported with governmental
activities in the Statement of Activities. (245,217)
Change in net position in governmental activities$23,302,416
The notes to the financial statements are an integral part of this statement.
39
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2018
Budgeted Amounts
Variance -
Positive
(Negative)
OriginalFinalActual
Revenues:
Sales taxes$ 25,817,378 $ 25,817,378 $ 27,236,046 $ 1,418,668
Intergovernmental 11,479,759 11,479,759 11,506,531 26,772
Licenses, fees & permits 4,406,685 4,406,685 5,573,620 1,166,935
Fines, forfeitures & penalties 625,000 625,000 612,638 (12,362)
Charges for services 644,900 644,900 684,076 39,176
Lease income 128,750 128,750 135,589 6,839
Contributions 37,800 37,800 35,017 (2,783)
Investment income 200,000 200,000 334,960 134,960
492,961 (18,758)
Miscellaneous 511,719 511,719
Total revenues 43,851,991 43,851,991 46,611,438 2,759,447
Expenditures:
General government:
General government 6,877,426 6,327,426 2,074,634 4,252,792
Town council 290,628 290,628269,988 20,640
Town clerk429,193429,193417,464 11,729
Town manager1,724,1901,724,1901,560,986 163,204
Human resources869,595869,595809,551 60,044
Facilities 1,172,231 1,172,231 1,035,084 137,147
Finance1,197,6211,197,621973,070 224,551
Legal 847,174 847,174 832,521 14,653
2,485,176 179,467
Technology services 2,664,643 2,664,643
Municipal courts992,929992,929880,462 112,467
Public Safety:
Police 13,052,320 13,252,320 13,248,171 4,149
Building safety 1,055,171 1,055,171 850,636 204,535
Code Enforcement 58,055 58,055 11,797 46,258
Highways and streets:
Public works 3,207,009 3,207,009 2,533,544 673,465
Health and welfare:
Animal Services 229,364 229,364 228,479 885
Economic and community development:
Development services3,953,3123,953,312 3,243,668 709,644
Economic development and tourism 276,876 276,876 247,651 29,225
Community development792,455792,455618,232174,223
Culture and recreation:
Parks and recreation5,809,5045,809,5044,749,4001,060,104
Capital outlay 1,215,640 1,215,640 667,504 548,136
Total expenditures 46,715,336 46,365,336 37,738,018 8,627,318
Excess (deficiency) of revenues over
(2,863,345) (2,513,345) 8,873,420 11,386,765
expenditures
Other financing sources (uses):
Proceeds from the sale of capital assets 150,000 150,000 46,243 (103,757)
Transfers in - - 3,112,608 3,112,608
Transfers out (6,107,870) (6,107,870) (7,451,459) (1,343,589)
Total other financing sources (uses) (5,957,870) (5,957,870) (4,292,608) 1,665,262
Changes in fund balances (8,821,215) (8,471,215) 4,580,812 13,052,027
Fund balances, beginning of year
-- 25,007,111 25,007,111
Fund balances, end of year
$ (8,821,215) $ (8,471,215) $ 29,587,923 $ 38,059,138
The notes to the financial statements are an integral part of this statement.
40
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - HIGHWAY USER REVENUE FUND
YEAR ENDED JUNE 30, 2018
Budgeted Amounts
Variance -
Positive
OriginalFinalActual(Negative)
Revenues:
Intergovernmental$ 3,455,525 $ 3,455,525$ 3,316,057 $ (139,468)
Investment income 7,500 7,500 15,843 8,343
Total revenues 3,463,025 3,463,025 3,331,900 (131,125)
Expenditures:
Current -
Highways and streets 3,197,363 3,017,674 2,254,322 763,352
Capital outlay 480,775 660,464 582,239 78,225
Total expenditures 3,678,138 3,678,138 2,836,561 841,577
Excess (deficiency) of revenues over
expenditures (215,113) (215,113) 495,339 710,452
Fund balances, beginning of year
-- 1,360,670 1,360,670
Fund balances, end of year
$ (215,113) $ (215,113) $ 1,856,009 $ 2,071,122
The notes to the financial statements are an integral part of this statement.
41
TOWN OF MARANA, ARIZONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2018
Governmental
Business-type ActivitiesActivities
Total Enterprise Internal Service
WaterWastewaterAirportFundsFunds
ASSETS
Current assets:
Cash and cash equivalents
$ 4,109,334 $ 3,229,888 $ 19,910 $ 7,359,132 $ 772,917
Accounts receivable
68,157 894,231 -
615,294 210,780
Due from governments
- - 3,746 3,746 -
Prepaid items
- 37,173 -
37,173 -
Total current assets
4,761,801 3,440,668 91,813 8,294,282 772,917
Noncurrent assets:
Restricted cash
365,485 - - 365,485 -
Capital assets not depreciated
2,011,249 39,212,197 -
8,173,035 29,027,913
Capital assets (net of depreciation)
29,949,499 36,712,800 14,193,690 80,855,989 -
Total noncurrent assets
38,488,019 65,740,713 16,204,939 120,433,671 -
Total assets
16,296,752 128,727,953 772,917
43,249,820 69,181,381
DEFERRED OUTFLOWS OF RESOURCES
Employer contributions
142,002 35,112 19,809 196,923 -
Resources related to pensions
-
129,005 31,986 14,871 175,862
Total deferred outflows of
resources
271,007 67,098 34,680 372,785 -
LIABILITIES
Current liabilities:
Accounts payable
482,079 1,340,742 9,905 1,832,726 7,833
Accrued payroll and employee benefits
39,141 7,971 4,100 51,212 -
Claims payable
- - - - 305,075
Compensated absences
68,179 20,762 14,340 103,281 -
Due to other funds
- 500,000 200,000 700,000 -
Deposits held for others
740,657 - - 740,657 -
Due to other governments
233,845--233,845 -
Bonds payable - current
179,00019,688 - 198,688 -
Loan payable - current
226,000 - - 226,000 -
Interest payable
59,390--59,390 -
Unearned revenue
--1,9831,983-
Total current liabilities
2,028,291 1,889,163 230,328 4,147,782 312,908
Noncurrent liabilities:
Due to other funds
-5,011,9431,813,7016,825,644 -
Compensated absences
7,5752,3071,59311,475-
Bonds payable
760,00020,130,870 - 20,890,870 -
Loan payable
2,975,572 - - 2,975,572 -
Net pension liability
1,788,925 277,246 216,968 2,283,139 -
Total non-current liabilities
5,532,072 25,422,366 2,032,26232,986,700-
Total liabilities
7,560,363 27,311,529 2,262,590 37,134,482 312,908
DEFERRED INFLOWS OF RESOURCES
Resources related to pensions
92,738 5,534 10,554 108,826 -
Total deferred inflows of
resources
92,738 5,534 10,554 108,826 -
NET POSITION
Net investment in capital assets
33,981,962 45,590,155 16,204,939 95,777,056 -
Restricted for debt service
365,485 - - 365,485 -
Unrestricted
1,520,279 (3,658,739) (2,146,651) (4,285,111) 460,009
Total net position
$ 35,867,726 $ 41,931,416 $ 14,058,288 $ 91,857,430 $ 460,009
The notes to the financial statements are an integral part of this statement.
42
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2018
Governmental
Business-type ActivitiesActivities
Total Enterprise Internal Service
WaterWastewaterAirportFundsFunds
Operating revenues:
Licenses, fees & permits
$ -$ 57,224 $ -$ 57,224$ -
Charges for services
5,609,0491,444,992 294,134 7,348,175 4,499,446
Miscellaneous
2,002 - 27,578 29,580 -
Total operating revenues
321,712 7,434,979 4,499,446
5,611,051 1,502,216
Operating expenses:
Personnel costs
1,887,163 351,377 277,869 2,516,409 -
Contractual services
161,184 569,221 460,193 1,190,598 756,196
Commodities
1,762,689 206,598 27,619 1,996,906 -
Other
1,040,674 4,190 120,203 1,165,067 3,988,467
Depreciation expense
1,059,196 1,584,435 930,338 3,573,969 -
Total operating expenses
5,910,906 2,715,821 1,816,222 10,442,949 4,744,663
Operating gain (loss)
(299,855) (1,213,605) (1,494,510) (3,007,970) (245,217)
Nonoperating revenues (expenses):
Development fees
Investment income
38,251 148,962 - 187,213 -
Interest expense
(70,756) (544,413) - (615,169) -
Gain (loss) on disposal of capital assets
(1,335,300) -
2,581 (1,337,881) -
Total nonoperating revenues
(expenses)
(29,924) (1,733,332) - (1,763,256) -
Net gain (loss) before contributions and
transfers
(329,779) (2,946,937) (1,494,510) (4,771,226) (245,217)
Development fees
4,240,435 -
2,233,149 2,007,286 -
Capital contributions
4,524,5941,096,29929,242 5,650,135 -
Transfers in
1,868,542 3,536,009
244,012 5,648,563 -
Transfers out
(1,490,159) (6,033,634) - (7,523,793) -
Changes in net position
6,806,347(2,340,977) (1,221,256) 3,244,114 (245,217)
Net position, beginning of year, as
restated
29,061,379 44,272,393 15,279,544 88,613,316 705,226
Net position, end of year
$ 35,867,726 $ 41,931,416 $ 14,058,288 $ 91,857,430$ 460,009
The notes to the financial statements are an integral part of this statement.
43
TOWN OF MARANA, ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2018
Governmental
Business-type ActivitiesActivities
Total Enterprise Internal Service
Water Wastewater AirportFundsFunds
Cash flows from operating activities:
Received from customers
$ 5,828,934 $ 1,408,716 $ 363,970 $ 7,601,620 $ 4,499,446
Payments to suppliers for goods and services
(3,172,832) (1,881,591) (628,342) (5,682,765) (4,689,278)
Payments to employees for services
(1,895,168) (359,711) (270,984) (2,525,863) -
Other receipts
27,578 86,804 -
2,002 57,224
Net cash provided by (used for) operating activities
762,936 (775,362) (507,778) (520,204) (189,832)
Cash flows from non-capital activities:
Interfund borrowing
- 5,511,943 (211,143) 5,300,800 -
Transfers in
1,868,542 3,536,009 244,012 5,648,563 -
Transfers out
(1,490,159) (6,033,634) - (7,523,793) -
Net cash provided by (used for) non-capital activities
378,383 3,014,318 32,869 3,425,570 -
Cash flows from capital activities and related financing
activities:
Capital grants received
- 7,731 29,265 36,996 -
Development fees received
2,233,149 2,007,286 - 4,240,435 -
Principal payments
(358,485) (19,688) - (378,173) -
Interest paid on debt
(75,771) (544,413) - (620,184) -
Proceeds from sale of capital assets
2,581 4,021
Acquisition and construction of capital assets
(2,677,287) (20,502,916) 407,182 (22,773,021) -
Net cash provided by (used for) capital activities
(875,813) (19,047,979) 436,447 (19,493,947) -
Cash flows from investing activities:
Interest on investments
38,251 148,962 - 187,213 -
Net cash provided by investing activities
- 187,213 -
38,251 148,962
Net increase (decrease) in cash and cash equivalents
303,757 (16,660,061) (38,462) (16,394,766) (189,832)
Cash and cash equivalents, beginning of year
4,171,062 19,889,949 58,372 24,119,383 962,749
Cash and cash equivalents, end of year
$ 4,474,819$ 3,229,888$ 19,910$ 7,724,617$ 772,917
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss)
$ (299,855)$ (1,213,605)$ (1,494,510)$ (3,007,970)$ (245,217)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation
1,059,1961,584,435930,3383,573,969-
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
83,555 (36,276) (12,017) 35,262 -
Decrease in due from other governments
- - 81,853 81,853 -
(Increase) decrease in prepaid items
(11,805) - - (11,805) -
(Increase) decrease in deferred outflows of resources related
to pensions
163,871 13,726 23,031 200,628
Increase (decrease) in accounts payable
(208,285) (1,101,582) (20,327) (1,330,194) 7,292
Decrease in claims payable
- - --48,093
Increase (decrease) in accrued payroll
5,551 779 (1,055) 5,275 -
Increase (decrease) in compensated absences payable
(3,312) 4,962 9,295 10,945 -
Increase in deposits held for others
39,750 - - 39,750 -
Increase in due to other governments
108,385 - - 108,385 -
Increase (decrease) in net pension liability
(40,726) (6,503) (5,704) (52,933)
(Increase) decrease in deferred inflows of resources related to
pensions
(133,389) (21,298) (18,682) (173,369)
Net cash provided (used) by operating activities
$ 762,936 $ (775,362) $ (507,778) $ (520,204) $ (189,832)
Noncash investing, capital and financing activities:
Capital contributions
4,524,594 1,088,568 - 5,613,162 -
Loss on disposal of capital assets
1,341,902 - 1,341,902 -
The notes to the financial statements are an integral part of this statement.
44
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
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 separately elected
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 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 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.
The GFCFD, GFCFD II, VFCFD, SSCFD and TFRID component units each have a June 30 year-end and are
included in 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 TFRID are not prepared on a stand-alone basis.
B.Basis of Presentation
The basic financial statements include both 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 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.
45
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
The statement of activities demonstrates the degree to which the direct expenses of a given function of
the T-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
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
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.
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.
PAG/RTA Capital Fund This fund accounts for proceeds from Pima Association of Governments and
Regional Transportation Authority which are used for road improvement projects.
Sales Tax Capital Fund This fund accounts for sales tax proceeds which are used for authorized
capital improvements.
46
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Transportation Fund This fund accounts for the financing and construction of transportation capacity
improvement projects.
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.
Additionally, the Town reports the following fund types:
Internal service fund This fund is used to account for the operating revenues and charges for health
and dental benefits.
C.Measurement Focus and Basis 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.
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
47
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
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
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.
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.Pensions
For purposes of measuring the net pension (asset and) liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about the pension
determined on the same basis as they are reported by the plans. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with
the benefit terms. Investments are reported at fair value.
G.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
48
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
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.
H.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.
I.Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
(i.e., the current portion of interfund
-current portion of interfund loans). All trade and
other receivables are shown net of an allowance for uncollectible amounts.
J.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.
K.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 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 actual cost or historical cost (or estimated historical cost if historical
records are not available). Donated capital assets are reported at acquisition value. 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.
49
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Depreciation is provided over the estimated useful lives of such assets using the straight-line method.
These estimated useful lives are as follows:
Years
Buildings 15-40
Building improvements 10-15
Pump stations, distribution systems,
equipment and improvements 20-75
Public domain infrastructure 20-50
Machinery, equipment, and assets
under capital lease 5-10
L.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 in the period incurred.
M.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.
N.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.
50
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
O.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.
P.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.
Q.Deferred Outflows/Inflows of Resources
The statement of net position and balance sheet include separate sections for deferred outflows of
resources and deferred inflows of resources. Deferred outflows of resources represent a consumption of
net position that applies to future periods that will be recognized as an expense or expenditure in future
periods. Deferred inflows of resources represent an acquisition of net position or fund balance that applies
to future periods and will be recognized as revenue in future periods.
R.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 RESTATEMENT OF NET POSITION
Net position as of July 1, 2017, has been restated as follows for a change to the capital asset net book
value for the Wastewater Fund. The change is due to an incorrect valuation of the assets acquired in the
transfer of certain sewer facilities from Pima County to the Town on January 3, 2012. An evaluation during
the fiscal year inventory discovered the discrepancy and the following change resolves the valuation error.
Business-type Activities Wastewater Fund
Net Position as previously reported at June 30, 2017 $ 118,208,309 $ 73,867,386
Correction of a misstatement
Capital assets (net of depreciation) (29,594,993) (29,594,993)
Net position as restated, July 1, 2017 $ 88,613,316 $ 44,272,393
51
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 3 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
-making authority.
Assigned Fund Balance consists of funds constrain
but are neither restricted nor committed, should be reported as assigned fund balance. This classification
y 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, 2018, the fund balance details by classification are listed below:
Tangerine
Farms
Highway Improvement Non-Major
PAG/RTA
User District Debt Sales Tax Transportation Governmental
Capital Fund
General Fund Revenue Service Capital Fund Fund Funds
Fund Balances:
Nonspendable:
Prepaid
expenditures $427,200 $ - $ - $ - $ - $ - $ 261,448
Long-term due
from other
funds 4,425,644 - - - - 2,400,000 -
Restricted:
Courts - - - - - - 1,113,914
Tourism promotion - - - - - - 1,415,903
Police - - - - - - 1,981,113
Highways and
streets - 1,856,009 - - - - -
Housing programs - - - - - - 218,262
Capital projects - - - - 3,060,092 14,624,540 12,366,629
Debt service - - 707,418 - - - 4,849,507
Unassigned: 24,735,079 - - (2,008,868) - - -
Total fund balances: $29,587,923 $1,856,009 $ 707,418 $(2,008,868) $3,060,092 $17,024,540 $ 22,206,776
52
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 4 - BUDGETARY CONTROL
Excess Expenditures Over Budget At June 30, 2018, 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 November 8,
2016, 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, 2017. 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 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 RICO Fund, the Emergency Telecommunications Fund, the Impound Fund,
the Other Special Revenue Fund, the Gladden Farms CFD Debt Fund, the Tangerine Farms Improvement
District Debt Fund, the Transportation Fund, the One-half Cent Sales Tax Fund, the Downtown
Reinvestment Fund, the Impact Fee Funds, the Other Capital Projects Funds, the Regional Transportation
Authority Fund, the Gladden Farms CFD Capital Fund, the Gladden Farms II CFD Capital Fund, the
Vanderbilt CFD Capital Fund, the Saguaro Springs CFD Capital Fund, and the Tangerine Farms
Improvement District Capital Fund. The enterprise funds, Water Utility, Wastewater Utility 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.
NOTE 5 - CASH AND INVESTMENTS
vestment pool, interest-bearing savings accounts, certificates of deposit,
53
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
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
At June 30, 2018, deposits was $8,724,099 and the bank balance was
$10,472,213. The differences between the book and bank balances are due to timing of certain
transactions like deposits in transit and outstanding checks.
Of the bank balance, $608,034 was covered by Federal depository insurance and $9,726,070 was covered
portion of the balance was uninsured and uncollateralized. The Town had $4,175 in petty cash funds,
change drawers and other related items at year end. Additionally, the Town had deposits of $1,659,592
held by Pima County in a fiduciary capacity.
At June 30, 2018stments, categorized within the fair value hierarchy established by
generally accepted accounting principles, were as follows:
Fair value measurement using
Quoted prices
in active Significant
Significant
markets for other
unobservable
identical observable
inputs
assets inputs
(Level 3)
Investment by fair value level Amount (Level 1) (Level 2)
Federal Home Loan Mortgage Corp. $ 973,349 $ - $ 973,349 $ -
Federal National Mortgage Assn. 4,950,862 - 4,950,862 -
Federal Home Loan Bank 1,985,040 1,985,040
Total investments by fair value level $ - $ 7,909,251 $ -
External investment pools measured at fair value
23,826,894
s investment pool 7 8,617,279
Total investments measured at fair
value 40,353,424
Investments measured at amortized costs
Money market investments 25,217,854
Total investments measured at
amortized costs 25,217,854
Total investments $65,571,278
Investments categorized as Level 2 are valued using market-corroborated inputs by evaluating issues with
its best-
54
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
ols.
. 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.
. The Town has no investment policy that would further limit its investment choices. As of June
30, 2018
limited to those securities that carry the full faith and credit of the United States Government. The net
asset value per share of both pools at June 30, 2018 was $1.00. Pool 5 has continued to maintain the
Pool 7 itself is unrated, but the securities in Pool 7
had a weighted average credit rating of AAA by Standard & investments in U.S.
e Arizona State
Treasurer has a publicly available financial report that includes financial statements and required
supplementary information. Copies may be obtained by contacting the Arizona State Treasurer, 1700 West
Washington, Phoenix, AZ 85007 or at www.aztreasury.gov.
investments and is not subject to custodial credit risk.
. The Town places no limit on the amount it may invest in any one issuer.
total investments.
At June 30, 2018, the Town had the following investment in debt securities:
Investment maturities
Less than 1
Investment Type Amount Year 1-5 Years
Money market investments $ 25,217,854 $ 25,217,854 $ -
Federal Home Loan Mortgage Corp. 973,349 973,349
Federal National Mortgage Assn. 4,950,862 3,969,902 980,960
Federal Home Loan Bank 1,985,040 1,985,040
Total investments by fair value level $ 29,187,756 $ 3,939,349
55
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 6 - CAPITAL ASSETS
The following is a summary of the changes in capital assets for fiscal year ended June 30, 2018:
Beginning Ending
Balance Additions Deletions Balance
Capital assets, not being depreciated:
Land $ 6,988,518 $ 671,424 $ - $ 7,659,942
Construction in progress 30,921,798 34,179,756 (4,743,900) 60,357,654
Total capital assets, not being depreciated 37,910,316 34,851,180 (4,743,900) 68,017,596
Capital assets, being depreciated:
-
Buildings and improvements 45,283,387 12,288 45,295,675
Machinery, equipment, and other assets 20,258,351 529,841 (453,150) 20,335,042
Infrastructure 356,969,064 11,395,868 - 368,364,932
Total capital assets being depreciated 422,510,802 11,937,997 (453,150) 433,995,649
Less accumulated depreciation for:
Buildings and improvements (17,272,051) (1,410,123) - (18,682,174)
Machinery, equipment, and other assets (15,698,294) (868,478) 452,949 (16,113,823)
Infrastructure (153,799,769) (15,403,000) 201 (169,202,568)
Total accumulated depreciation (186,770,114) (17,681,601) 453,150 (203,998,565)
Total capital assets, being depreciated, net 235,740,688 (5,743,604) - 229,997,084
Governmental activities capital assets, net $273,651,004 $29,107,576 $(4,743,900) $298,014,680
Governmental activities depreciation expense was charged to function/programs as follows:
Governmental Activities:
$ 886,553
General government
455,951
Public safety
14,645,197
Highways and streets
161,600
Economic and community development
10,616
Health and Welfare
1,521,684
Culture and recreation
$ 17,681,601
Total depreciation expense governmental activities
56
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
A summary of changes in capital assets for business-type activities is as follows:
Beginning
Balance, as Ending
Business-type Activities restated Additions Deletions Balance
Capital assets, not being depreciated:
Land $ 4,493,811 $ - $ (28,400) $ 4,465,411
Water rights 4,430,930 - - 4,430,930
Construction in progress 12,804,795 23,299,662 (5,788,601) 30,315,856
Total capital assets, not being depreciated 21,729,536 23,299,662 (5,817,001) 39,212,197
Capital assets, being depreciated:
Buildings, improvements and infrastructure 99,934,291 10,701,590 (2,751,911) 107,883,970
Machinery, equipment, and other assets 1,426,571 201,932 (53,370) 1,575,133
Total capital assets being depreciated 101,360,862 10,903,522 (2,805,281) 109,459,103
Less accumulated depreciation for:
Buildings, improvements and infrastructure (25,509,638) (3,456,349) 1,413,860 (27,552,127)
Machinery, equipment, and other assets (982,886) (117,620) 49,519 (1,050,987)
Total accumulated depreciation (26,492,524) (3,573,969) 1,463,379 (28,603,114)
Total capital assets, being depreciated, net 74,868,338 7,329,553 1,341,902 80,855,989
Business-type activities capital assets, net $96,597,874 $30,629,215 $(7,158,903) $120,068,186
See Note 2 regarding the restated beginning balance in the table above.
Business-type depreciation expense was charged to functions/programs as follows:
Business-type Activities:
Airport $ 930,338
Water 1,059,196
Wastewater 1,584,435
Total depreciation expense business-type activities $ 3,573,969
NOTE 7 LONG-TERM LIABILITIES
A.Notes Payable
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 loan is 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, 2018 on the outstanding balance is 1.468 percent.
57
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
The following is a schedule by years of the debt service requirements for the loan as of June 30, 2018.
Fiscal Year Principal Interest Total
2019 $ 226,000 $ 45,340 $ 271,340
2020 232,707 41,973 274,680
2021 239,614 38,506 278,120
2022 246,726 34,937 281,663
2023 254,049 31,261 285,310
2024 2028 1,387,924 97,236 1,485,160
2029 2030 614,552 9,088 623,640
Totals $ 3,201,572 $ 298,341 $ 3,499,913
B.Community Facilities District (CFD) General Obligation Bonds
Gladden Farms Community Facilities District (a component unit) issued general obligation bonds for
infrastructure improvements and to refund prior issuances. The refunding issuance resulted in the 2004,
2006, 2007, and 2010 general obligation bond series to be considered defeased and the liability has been
removed from the statement of net position. As of June 30, 2018, $875,000 was still outstanding for the
2010 Series refunding.
These bonds are payable from the property tax collected by the District. The CFD general obligation bonds
outstanding as reported in governmental activities as of June 30, 2018, were as follows:
Outstanding
June 30, 2018
$7,955,000 CFD General Obligation Bonds, 2016 Series, due in annual
installments of $20,000 to $640,000; through July 15, 2041; at a 2.0% to 4.0% $ 7,745,000
interest rate.
Annual debt service requirements to maturity on the CFD general obligation bonds at June 30, 2018, are
summarized as follows:
Year ending
June 30 Principal Interest Total
2019 $ 205,000 $ 267,012 $ 472,012
2020 265,000 262,312 527,312
2021 410,000 255,562 665,562
2022 420,000 247,263 667,263
2023 430,000 236,613 666,613
2024 2028 2,365,000 957,038 3,322,038
2029 2033 2,840,000 447,563 3,287,563
2034 2038 720,000 34,362 754,362
2039 2042 90,000 5,938 95,938
Totals $ 7,745,000 $ 2,713,663 $ 10,458,663
58
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
C.Tangerine Farms Road Improvement District Improvement Bonds
Tangerine Farms Road Improvement District (a component unit) issued special assessment bonds for
infrastructure improvements and to refund prior issuances. These bonds are 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, 2018, were as follows:
Outstanding
June 30, 2018
$14,245,132 TFRID Refunding Bonds, Series 2017, due in annual
installments of $1,618,132 to $1,907,000; through January 1, 2026;
at an interest rate of 1.96%. $ 14,200,132
Annual debt service requirements to maturity on the TFRID special assessment bonds at June 30, 2018,
are summarized as follows:
Year ending
June 30 Principal Interest Total
2019 $ 1,766,132 $ 356,613 $ 2,122,745
2020 1,678,000 243,706 1,921,706
2021 1,709,000 210,818 1,919,818
2022 1,743,000 177,321 1,920,321
2023 1,775,000 143,159 1,918,159
2024-2026 5,529,000 218,089 5,747,089
Totals $ 14,200,132 $ 1,349,706 $ 15,549,838
D.Revenue Bonds
The Town issued pledged excise tax-revenue and refunding obligation bonds to finance the expansion of
the Marana Wastewater Reclamation Facility and construction of the groundwater Recharge Facility, for
acquiring water systems, wastewater systems, infrastructure upgrades, the design and construction of the
new municipal complex and to refund prior issuances. The 2008 Series revenue bonds were refunded in
2017 and are considered defeased and the liability for the refunded bonds has been removed from the
statement of net position. As of June 30, 2018, $20,485,000 of defeased bonds are still outstanding.
These bonds are payable from the excise taxes collected by the Town, wastewater utility revenue, and
water utility revenue. The revenue bonds outstanding as of June 30, 2018 were as follows:
59
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Outstanding June 30, 2018
Business-
Governmental type
$34,780,000 Pledged Excise Tax Revenue and Revenue Refunding $ 30,600,000
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.
$6,493,000 Pledged Excise Tax Revenue and Revenue Refunding 5,370,000
Obligations, 2014 Series, due in annual installments of $353,000
to $735,000; through July 1, 2025; at a 2.55% interest rate.
$1,343,000 Water Utility Revenue Refunding Obligations, 2014 $ 939,000
Series, due in annual installments of $129,000 to $197,000;
through July 1, 2022; at a 2.53% interest rate.
$17,215,000 Pledged Excise Tax Revenue Bonds, 2017 Series A,
due in annual installments of $1,920,000 to $2,420,000; through
July 1, 2042; at a 2.0% to 5.0% interest rate. 17,215,000
$19,865,000 Pledged Excise Tax Revenue and Revenue Refunding 19,865,000
Obligations, 2017 Series B, due in annual installments of
$840,000 to $2,580,000; through July 1, 2028; at a 2.0% to
5.0% interest rate.
$2,565,000 Pledged Excise Tax Revenue Bonds, 2017 Series C, due 2,565,000
in annual installments of $30,000 to $1,980,000; through July 1,
2034; at a 2.0% to 5.0% interest rate.
Total $ 55,835,000 $ 20,719,000
Annual debt service requirements to maturity on revenue bonds at June 30, 2018, are summarized as
follows:
Governmental Activities Business-type Activities
Year ending
June 30 Principal Interest Principal Interest
2019 $ 3,184,000 $ 2,402,294 $ 179,000 $ 830,561
2020 3,624,000 2,303,358 184,000 825,969
2021 3,726,000 2,185,415 186,000 821,289
2022 3,865,000 2,037,374 193,000 816,494
2023 4,535,000 1,864,137 197,000 811,561
2024-2028 23,881,000 6,040,565 - 4,045,344
2029-2033 11,300,000 1,437,950 410,000 4,016,844
2034-2038 1,720,000 43,000 8,150,000 3,194,269
2039-2042 - - 11,220,000 1,152,709
Totals $ 55,835,000 $ 18,314,093 $ 20,719,000 $16,515,040
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 $80.9 million in Excise Tax Revenue Bonds issued in 2013,
60
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
2014, and 2017. The various bonds were issued for the expansion of the Marana Wastewater Reclamation
Facility, construction of the groundwater Recharge Facility, 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, $75.6 million in bonds remain
outstanding to be repaid by future excise tax revenues and the net revenues available for service of this
debt were $54.2 million. The debt principal and interest paid on this debt during fiscal year 2018 was $4.8
million (8.9% 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, $4.1 million remains outstanding to be repaid by future water
revenues. For the fiscal year ended June 30, 2018, the net revenues available for service of this debt were
$1.9 million. The debt principal and interest paid on this debt during fiscal year 2018 was $432,611.
F.Changes in Long-term Liabilities
The following is a summary of changes in long-term liability activity for fiscal year ended June 30, 2018.
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental
activities:
General obligation
bonds $ 7,955,000 - $ (210,000) $ 7,745,000 $ 205,000
Revenue bonds 57,840,000 - (2,005,000) 55,835,000 3,184,000
Compensated
absences 1,089,056 278,991 (217,755) 1,150,292 1,035,263
Net pension liability 36,454,393 1,519,645 (383,288) 37,590,750 -
Special assessment
bonds 14,245,132 - (45,000) 14,200,132 1,766,132
Deferred bond
premium 6,253,495 - (440,566) 5,812,929 440,566
Total $123,837,076 $ 1,798,636 $(3,301,609) $122,334,103 $6,630,961
Business-type
activities:
Loan payable $ 3,421,057 $ - $ (219,485) $ 3,201,572 $ 226,000
Net pension liability 2,336,072 - (52,933) 2,283,139 -
Revenue bonds 20,858,000 - (139,000) 20,719,000 179,000
Compensated
absences 103,811 37,797 (26,852) 114,756 103,281
Deferred bond
premium 390,246 - (19,688) 370,558 19,688
Total $ 27,109,186 $ 37,797 $ (457,958) $ 26,689,025 $ 527,969
61
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
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) $ - $ 340,452
Intergovernmental (PAG/RTA Capital Fund) 378,086 -
Intergovernmental (Non-Major governmental funds) 2,861 18,024
Special assessments (Tangerine Farms Improvement District
Debt Service Fund) 13,760,335 -
Total deferred amounts for governmental funds $ 14,141,282 $ 358,476
NOTE 9 INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Due to/from other funds:
At June 30, 2018, 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 2017-
2018, these interfund borrowing will be eliminated as sufficient resources become available. A portion of
the amount due from the Airport Fund, $1,813,701 and a portion of the amount due from the Wastewater
Fund, $2,400,000 to the Transportation Fund and $2,611,943 to the General Fund, is considered long
term. Listed below is a summary of the interfund borrowing transactions.
Due From
Enterprise Funds
Due To Non-Major
PAG/RTA Governmental Wastewater
Capital Fund Funds Fund Airport Fund Total
General Fund $ 2,708,748 $ 234,986 $ 3,111,943 $ 2,013,701 $ 8,069,378
Transportation
Fund - - 2,400,000 - 2,400,000
Total $ 2,708,748 $ 234,986 $ 5,511,943 $ 2,013,701 $ 10,469,378
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.
62
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Transfers In
Enterprise Funds
Transfer Non-Major
Out Govern-
General PAG/RTA Sales Tax Transport-mental
Fund Capital Capital ation Funds Water Wastewater Airport Total
General
Fund $4,108,448 $3,100,000 $243,011 $7,451,459
PAG/RTA
Capital 472,080 472,080
Transport-
ation 391,239 391,239
Non-Major
Govern-
mental
Funds 665 59,866 620,248 804,295 932,162 2,417,236
Water 1,053,149 436,009 1,001 1,490,159
Wastewater 3,111,943 1,053,149 1,868,542 6,033,634
Total $3,112,608 $ 59,866 $620,248 $ 804,295 $8,010,227 $1,868,542 $3,536,009 $244,012 $18,255,807
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
At June 30, 2018, the Town reported the following aggregate amounts related to pensions for all plans to
which it contributes:
Statement of Net Position and Governmental Business-Type
Statement of Activities Activities Activities Total
Net pension liabilities $ 37,590,750 $ 2,283,139 $ 39,873,889
Deferred outflows of resources 8,973,655 372,785 9,346,440
Deferred inflows of resources 2,138,953 108,826 2,247,779
Pension expense 4,878,087 171,249 5,049,336
The Town reported $3,179,118 of pension contributions as expenditures in the governmental funds related
to all pension plans to which it contributes.
A. Public Safety Personnel Retirement System and Corrections Officer Retirement Plan
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 Board of Trustees (formerly fund manager)
and participating local boards. The Board of Trustees is a nine-member board appointed by the Governor
and the State Legislature. The Board of Trustees is responsible for establishing contribution rates in
accordance with an actuarial study.
63
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
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), an agent multiple-
employer defined benefit pension plan and an agent multiple-employer defined benefit health insurance
premium benefit (OPEB) plan. The CORP is governed by the PSPRS Board of Trustees and the local
participating local boards according to the provisions of A.R.S. Title 38, Chapter 5, Article 6. PSPRS and
CORP net OPEB liabilities have not been recorded, or further disclosed at June 30, 2018 in accordance with
PSPRS and CORP issue publicly available financial reports that include financial statements and required
supplemental information. This report may be obtained on the PSPRS website at www.psprs.com or by
writing to 3010 E Camelback Rd, Ste 200, Phoenix, AZ 85016 or by calling (602) 255-5575.
Benefits providedThe PSPRS and CORP provide retirement, health insurance premium supplement,
disability, and survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor
benefits are calculated on the basis of age, average monthly compensation, and service credit as follows:
PSPRS Initial membership date:
On or after January 1, 2012 and
Before January 1, 2012 before July 1, 2017
Retirement and Disability
Years of service 20 years of service, any age 25 years of service or 15 years of credited
and age required 15 years of service, age 62 service, age 52.5
to receive benefit
Final average Highest 36 consecutive Highest 60 consecutive
salary is based on months of last 20 years months of last 20 years
Benefit percent
1.5% to 2.5% per year of credited service,
Normal 50% less 2.0% for each year of
not to exceed 80%
Retirement credited service less than 20 years
OR plus 2.0% to 2.5% for each year
of credited service over 20 years,
not to exceed 80%
Accidental 50% or normal retirement, whichever is greater
Disability
Retirement
Catastrophic 90% for the first 60 months then reduced to either 62.5%
Disability or normal retirement, whichever is greater
Retirement
Ordinary Normal retirement calculated with actual years of credited service or 20 years of
Disability credited service, whichever is greater, multiplied by years of credited service (not to
Retirement exceed 20 years) divided by 20
Survivor Benefit
Retired Members
Active Members 80% to 100% of accidental disability retirement benefit or 100% of average
monthly compensation if death was the result of injuries received on the job
64
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
CORP Initial membership date:
Before January 1, 2012 On or after January 1, 2012
Retirement and Disability
Years of service Sum of years and age equals 80 25 years, age 52.5
and age required 25 years, any age (dispatchers) 10 years, age 62
to receive benefit 20 years, any age (all others)
10 years, age 62
Final average Highest 36 consecutive Highest 60 consecutive
salary is based on months of last 10 years months of last 10 years
Benefit percent
Normal 2.0% to 2.5% per year of credited service, not to exceed 80%
Retirement
Before January 1, 2012 On or after January 1, 2012
Accidental 50% or normal retirement if more 50% or normal retirement if more than 25
Disability than 20 years of credited service years of credited service
Retirement
Total and 50% or normal retirement if more than 25 years of credited service
Permanent
Disability
Retirement
Ordinary 2.5% per year of credited service
Disability
Retirement
Survivor Benefit
Retired Members
Active Members 40% of average monthly compensation or 100% of average monthly compensation
if death was the result of injuries received on the job. If there is no surviving spouse
Retirement and survivor benefits are subject to automatic cost-of-living adjustments. The adjustments are
based on inflation of PSPRS and excess investment earnings for CORP.In addition, the Legislature may
enact permanent one-time benefit increases after a Joint Legislative Budget Committee analysis of the
PSPRS also provides temporary disability benefits of 50 percent of the
Health insurance premium benefits are available to retired or disabled members with 5 years of credited
service. The benefits are payable only with respect to allowable health insurance premiums for which the
member is responsible. Benefits range from $150 per month to $260 per month depending on the age of
the member and dependents.
Employees covered by benefit termsAt June 30, 2018, the following employees were covered by the
65
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
PSPRS CORP
Dispatchers
Inactive employees or beneficiaries currently receiving benefits 29 -
Inactive employees entitled to but not yet receiving benefits 21 2
Active employees 79 7
Total 129 9
ContributionsState statutes establish the pension contribution requirements for active PSPRS and CORP
employees. In accordance with state statutes, annual actuarial valuations determine employer contribution
requirements for PSPRS and CORP pension and health insurance premium benefits. The combined active
member and employer contribution rates are expected to finance the costs of benefits employees earn
during the year, with an additional amount to finance any unfunded accrued liability. Contributions rates
for the year ended June 30, 2018, are i
covered payroll.
PSPRS
Tier 3
PSPRS PSPRS Defined CORP
Tier 1 Tier 2 Contribution Dispatchers
Active membersPension 7.65% 11.65% 10.55% 7.96%
Town
Pension 32.69% 32.69% 28.07% 14.05%
Health insurance premium benefit .41% .41% .39%
In addition, statute required the Town to contribute at the actuarially determined rate of 17.52 percent for
the PSPRS of annual covered payroll of retired members who worked for the Town in positions that an
employee who contributes to the PSPRS would typically fill.
The
for the year ended June 30, 2018, were:
PSPRS CORP Dispatchers
Pension Contributions
$ 1,782,576 $ 57,269
Health Insurance Premium Benefit
22,357 1,590
Total Contributions
$ 1,804,933 $ 58,859
During fiscal year 2018, the Town paid for PSPRS and CORP pension contributions as follows: 92%
percent from the General Fund and 8% percent from other funds.
Pension liabilityAt June 30, 2018, the Town reported the following net pension liabilities:
Net Pension Liability
PSPRS 15,423,434
CORP Dispatchers 790,163
66
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
The net pension liabilities were measured as of June 30, 2017, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date.
The total pension liabilities as of June 30, 2017, reflect the following changes of actuarial assumptions
based on the results of an actuarial experience study for the 5-year period ended June 30, 2016.
Decreasing the investment rate of return from 7.5 percent to 7.4 percent.
Decreasing the wage inflation from 4 percent to 3.5 percent.
Updating mortality, withdrawal, disability, and retirement assumptions.
The total pension liabilities for CORP also reflect changes of benefit terms for a court decision that
increased cost-of-living adjustments for retirees who became members before July 20, 2011. The total
pension liabilities for PSPRS also reflect changes of benefit terms for legislation that changed benefit
eligibility and multipliers for employees who became members on or after January 1, 2012, and before July
1, 2017, and a court decision that decreased the contribution rates for employees who became members
before July 20, 2011.
Pension actuarial assumptions The significant actuarial assumptions used to measure the total pension
liability are as follows:
PSPRS and CORPPension
Actuarial valuation date June 30, 2017
Actuarial cost method Individual entry age normal
Investment rate of return 7.40%
Wage inflation 3.5%
Price Inflation 2.5%
Permanent benefit increase Included
Mortality rates RP-2014 tables using MP-2016 improvement scale with
adjustments to match current experience
Healthcare cost trend rate Not applicable
Actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2016.
The long-term expected rate of return on PSPRS and CORP pension plan investments was determined to
be 7.40 percent using a building-block method in which best-estimate ranges of expected future real rates
of return (expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class.
The target allocation and best estimates of geometric real rates of return for each major asset class are
summarized in the following table:
67
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Long-Term Expected
PSPRS and CORP Target Geometric Real Rate
Asset Class Allocation of Return
U.S. Equity 16% 7.60%
Non-U.S. Equity 14% 8.70%
Private Credit 12% 6.75%
Fixed Income 5% 1.25%
Credit Opportunities 16% 5.83%
Absolute Return 2% 3.75%
GTAA 10% 3.96%
Real Assets 9% 4.52%
Real Estate 10% 3.75%
Risk Parity 4% 5.00%
Short Term Investments 2% 0.25%
Total 100%
Pension discount ratesThe following discount rates were used to measure the total pension liabilities:
PSPRS CORP
Dispatchers
Discount rates 7.40% 7.40%
Change from prior year
(0.1) (0.1)
The projection of cash flows used to determine the PSPRS and CORP discount rates assumed that plan
member contributions will be made at the current contribution rate and that employer contributions will be
made at rates equal to the difference between the actuarially determined contribution rate and the
member rate. Based on those assumptions, the pension as projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
68
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Changes in the Net Pension Liability (Asset)
PSPRSIncrease (Decrease)
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
(a) (b) (a) (b)
Balances at June 30, 2017 31,059,879 16,535,203 14,524,676
Changes for the year:
Service cost 1,213,757 - 1,213,757
Interest on the total pension liability 2,322,987 - 2,322,987
Changes of benefit terms 367,673 - 367,673
Differences between expected and actual 340,373 - 340,373
experience in the measurement of the pension
liability
Changes of assumptions or other inputs 725,862 - 725,862
Contributionsemployer - 1,384,924 (1,384,924)
Contributionsemployee - 621,583 (621,583)
Net investment income - 2,081,790 (2,081,790)
Benefit payments, including refunds of employee (1,387,192) (1,387,192) -
contributions
Pension plan administrative expense - (18,820) 18,820
Other changes - 2,417 (2,417)
Net changes 3,583,460 2,684,702 898,758
Balances at June 30, 2018 34,643,339 19,219,905 15,423,434
69
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
CORPIncrease (Decrease)
Total Plan Net Pension
Pension Fiduciary Liability
Liability Net Position (Asset)
(a) (b) (a) (b)
Balances at June 30, 2016 1,548,120 1,015,820 532,300
Changes for the year:
Service cost 59,139 - 59,139
Interest on the total pension liability 118,108 - 118,108
Changes of benefit terms 312,169 312,169
Differences between expected and actual experience (18,913) - (18,913)
in the measurement of the pension liability
Changes of assumptions or other inputs (5,967) - (5,967)
Benefit payments, including refunds of employee (5,825) (5,825) -
contributions
Contributionsemployer - 51,162 (51,162)
Contributionsemployee - 32,199 (32,199)
Net investment income - 124,809 (124,809)
Pension plan administrative expense - (1,491) 1,491
Other changes - (6) 6
Net changes 458,711 200,848 257,863
Balances at June 30, 2018 2,006,831 1,216,668 790,163
SThe following table presents
ion liabilities calculated using the discount rates noted above, as well as what the
lower or 1 percentage point higher than the current rate:
Pension plan fiduciary net position
available in the separately issued PSPRS and CORP financial reports.
1% Current 1% Increase
Decrease Discount
Rate
PSPRS
Rate 6.40% 7.40% 8.40%
Net pension liability $20,802,372 $15,423,434 $11,097,179
CORP Dispatchers
Rate 6.40% 7.40% 8.40%
Net pension liability $1,143,839 $790,163 $504,351
Pension expenseFor the year ended June 30, 2018, the Town recognized the following pension expense:
Pension
Expense
PSPRS 2,908,449
CORP Dispatchers 372,799
70
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Pension deferred outflows/inflows of resourcesAt June 30, 2018, the Town reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
PSPRS
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual $ 884,651 $ -
experience
Changes of assumptions or other inputs 2,152,941
Net difference between projected and
actual earnings on pension plan
investments
936,165 798,045
Town contributions subsequent to the
measurement date
1,782,576
Total $ 5,756,333 $ 798,045
CORP
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience
$ - $ 50,366
Changes of assumptions or other inputs 8,435 4,895
Net difference between projected and
actual earnings on pension plan
investments
13,461 163
Town contributions subsequent to the
measurement date
57,269
Total $ 79,165 $ 55,424
The amounts reported as deferred outflows of resources related to pensions resulting from town
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability (or an increase in the net pension asset) in the year ending June 30, 2018. Other amounts
reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
PSPRS CORP
Dispatchers
Year ending June 30
2019 $875,022 $(6,923)
2020 1,017,832 1,683
2021 651,637 (5,988)
2022 297,788 (20,201)
2023 278,612 (2,099)
Thereafter 54,821 -
71
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Agent plan OPEB actuarial assumptionsThe health insurance premium benefit contribution requirements
for the year ended June 30, 2018, were established by the June 30, 2015, actuarial valuations, and those
actuarial valuations were based on the following actuarial methods and assumptions.
and assumptions about the
required contributions are subject to continual revision as actual results are compared to past expectations
and new estimates are made. The required schedule of funding progress for the health insurance premium
benefit presented as required supplementary information provides multiyear trend information that shows
or decreasing over time relative to the
actuarial accrued liability for benefits.
include the types of benefits in force at the valuation date, and (2) the pattern of sharing benefit costs
-term perspective
and employ methods and assumptions designed to reduce short-term volatility in actuarial accrued
liabilities and the actuarial value of assets. The significant actuarial methods and assumptions used are the
same for all PSPRS and CORP plans and related benefits (unless noted), and the following actuarial
methods and assumptions were used to establish the fiscal year 2017 contribution requirements:
PSPRS and CORPOPEB Contribution Requirements
Actuarial valuation date June 30, 2016
Actuarial cost method Entry age normal
Amortization method Level percent closed for unfunded actuarial accrued
liability, open for excess
Remaining amortization period 21 years for unfunded actuarial accrued liability, 20 years
for excess
7-year smoothed market value; 80%/120% market
Asset valuation method
corridor
Actuarial assumptions:
Investment rate of return 7.4%
Projected salary increases 4.00%8.00% for PSPRS and 4.00%7.25% for CORP
Wage growth 4.00% for PSPRS and CORP
Agent plan OPEB trend informationAnnual OPEB cost information for the health insurance premium
benefit for the current and 2 preceding years follows for each of the agent plans:
72
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Percentage
of Annual
Annual OPEB Cost Net OPEB
Year Ended June 30 Cost Contributed Obligation
PSPRS
2018 $ 22,357 100 $ -
2017 13,062 100 -
2016 19,742 100 -
CORP Dispatchers
2018 1,590 100 -
2017 1,578 100 -
2016 1,475 100 -
Agent plan OPEB funded status
recent valuation date, June 30, 2017, along with the actuarial assumptions and methods used in those
valuations follow.
PSPRS CORP
Dispatchers
Actuarial value of assets (a) $813,401 $43,507
Actuarial accrued liability (b) 693,231 42,677
Unfunded actuarial accrued liability (funding excess)
(b) (a) (120,170) (830)
Funded ratio (a)/(b) 117.3% 101.9%
Annual covered payroll (c)
$5,318,831 $404,506
Unfunded actuarial accrued liability (funding excess) as a
percentage of covered payroll
(b) (a) / (c) 2.26% 0.20%
The actuarial methods and assumptions used are the same for all the PSPRS and CORP health insurance
premium benefit plans (unless noted), and for the most recent valuation date are as follows:
PSPRS and CORPOPEB Funded Status
Actuarial valuation date June 30, 2017
Actuarial cost method Entry age normal
Amortization method Level percent closed for unfunded actuarial accrued
liability, open for excess
Remaining amortization
19 years for unfunded actuarial accrued liability, 20 years
period
for excess
Asset valuation method 7-year smoothed market value; 80%/120% market corridor
Actuarial assumptions:
Investment rate of return 7.40%
Projected salary increases 3.5%7.5% for PSPRS and 3.5%6.5% for CORP
Payroll growth 3.5% for PSPRS and CORP
73
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. Title38, Chapter 5, Article 2and 2.1. The ASRS provides for retirement, death, long-
term disability, survivor, and health insurance premium benefits.ASRS net OPEB liabilities have not been
recorded, or further disclosed at June 30, 2018 in accordance with GASB Statement 75, due to the relative
insignificance to the Town’s financial statements.ASRS issues a publicly available financial report that
includes financial statements and required supplementary information. The report may be obtainedon its
websiteatwww.azasrs.govorby 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.
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.Retirement
benefitsare calculated on the basis of age, average monthly compensation, and service credit as follows:
ASRSRetirement
Initial membership date:
Before July1,2011On or after July1,2011
Years of serviceSum of years and age equals 8030 years,age 55
and age required10 years,age 6225 years,age 60
to receive benefit5 years,age 50*10 years,age 62
any years,age 655 years,age 50*
any years,age 65
Final averageHighest 36 consecutive monthsHighest 60 consecutive
salary is based onof last 120 monthsmonths
of last 120 months
Benefit percent2.1% to 2.3%2.1% to 2.3%
per year of service
*With actuarially reduced benefits.
Retirement benefits for members who joined the ASRS prior to September 13, 2013, are subject to
automatic cost-of-living adjustments based on excess investment earning. Members with a membership
date on or after September 13, 2013, are not eligible for cost-of-living adjustments. Survivor benefits are
payable upon a member’s death. For retired members,the retirement benefitoption chosen determines
the survivor benefit. For all other members, the beneficiary is entitled to the member’s account balance
that includes the member’s contributions and employer’s contributions, plus interest earned.
Health insurance premium benefits are available to retired or disabled members with 5 years of credited
service. The benefits are payable only with respect to allowable health insurance premiums for which the
member is responsible. For members with 10 or more years of service, benefits range from $150 per
month to $260 per month depending on the age of the member and dependents. For members with 5 to 9
years of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based
on completed years of service.
74
Active members are eligible for a monthly long-term disability benefit equal to two-thirds of monthly
earnings. Members receiving benefits continue to earn service credit up to their normal retirement dates.
Members with long-term disability commencement dates after June 30, 1999, are limited to 30 years of
service or the service on record as of the effective disability date if their service is greater than 30 years.
Contributions—In accordance with state statutes, annual actuarial valuations determine activemember and
employer contribution requirements. The combined active member and employer contribution rates are
expected to finance the costs of benefits employees earn during the year, with an additional amount to
finance any unfunded accrued liability. Forthe year endedJune 30, 2018,statute requiredactive ASRS
members to contribute at the actuarially determined rate of 11.5percent (11.34percent for retirement and
0.16percent for long-term disability) of the members’ annual covered payroll, andstatute required the
Townto contribute at the actuarially determined rate of 11.5percent (10.9percent for retirement, 0.44
percent for health insurance premium benefit, and 0.16percent forlong-term disability) of the active
members’ annual covered payroll. In addition, theTownwas required by statute to contribute at the
actuarially determined rate of 9.49percent (9.26percent for retirement, 0.1percent for health insurance
premium benefit, and 0.13percent for long-term disability) of annual covered payroll of retired members
who worked for theTownin positions that would typically be filled by an employee who contributes to the
ASRS. TheTown’s contributions to the pension plan for the year endedJune 30, 2018, were $1,620,757.
TheTown’s contributions for the current and 2 preceding years for OPEB, all of which were equal to the
required contributions, were as follows:
Years endedHealthLong-term
June 30,RetirementInsuranceDisabilityTotal
2018$1,536,196$62,011$22,550$1,620,757
20171,496,44077,73819,4341,593,612
20161,426,88165,75515,7801,508,416
During fiscal year 2018, theTownpaidfor ASRS pension and OPEB contributions as follows:86.14%
percent from the General Fund,.34%percent from major funds,12.82% from enterprise fundsand.7%
percent from other funds.
Pension liability—AtJune 30, 2018, theTownreported a liability of $22,254,803for its proportionate share
of the ASRS’ net pension liability. The net pension liability was measured as of June 30, 2017. The total
pension liability used to calculate the net pension liability was determined using update procedures to roll
forward the total pension liability from an actuarial valuation as of June 30, 2016, to the measurement
date of June 30, 2017.The total pension liability as of June 30, 2017, reflects a change in actuarial
assumptionrelated to changesin loads for future potential permanent benefit increases.
The Town’s proportion of the net pension liability was based on the Town’s actual contributions to the plan
relative to the totalof all participating employers’ contributions for the year ended June 30, 2017. The
Town’s proportion measured as of June 30, 2017, was 0.14286percent, which was adecrease of 0.002276
percent from its proportion measured as of June 30, 2016
Pension expense and deferred outflows/inflows of resources—For the year endedJune 30, 2018, theTown
recognized pension expense for ASRS of $1,411,258.AtJune 30, 2018, theTownreported deferred
outflows of resources and deferred inflows of resources related to pensions from the following sources:
75
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
ASRS
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience
$ - $ 667,322
Changes of assumptions or other inputs
966,577 665,459
Net difference between projected and actual
earnings on pension plan investments
159,774 -
Changes in proportion and differences between
contributions and proportionate share of
contributions
571,988 -
Town contributions subsequent to the measurement
date
1,536,196
Total $ 3,234,535 $ 1,332,781
The $1,536,196 reported as deferred outflows of resources related to ASRS pensions resulting from
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending June 30, 2019. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to ASRS pensions will be recognized in pension expense as follows:
Year ending June 30,
2019 $(501,219)
2020 1,082,995
2021 295,710
2022 (511,928)
Actuarial AssumptionsThe significant actuarial assumptions used to measure the total pension liability are
as follows:
ASRS
Actuarial valuation date June 30, 2016
Actuarial roll forward date June 30, 2017
Actuarial cost method Entry age normal
Investment rate of return 8%
Projected salary increases 36.75%
Inflation 3%
Permanent benefit increase Included
Mortality rates 1994 GAM Scale BB
Healthcare cost trend rate Not applicable
Actuarial assumptions used in the June 30, 2016, valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2012.
The long-term expected rate of return on ASRS pension plan investments was determined to be 8.7
percent using a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by adding
76
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
expected inflation. The target allocation and best estimates of arithmetic real rates of return for each
major asset class are summarized in the following table:
ASRS Long-Term Expected
Target Arithmetic Real Rate
Asset Class Allocation of Return
Equity 58% 6.73%
Fixed income 25% 3.70%
Real estate 10% 4.25%
Multi-asset 5% 3.41%
Commodities 2% 3.84%
Total 100%
Discount RateThe discount rate used to measure the ASRS total pension liability was 8 percent, which is
less than the long-term expected rate of return of 8.7 percent. The projection of cash flows used to
determine the discount rate assumed that contributions from participating employers will be made based
on the actuarially determined rates based on the
contractually required rate under Arizona statute.
projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the Town pension liability to changes in the discount
rateThe following table presents the Town
using the discount rate of 8 percent, as well as what the Town
liability would be if it were calculated using a discount rate that is 1 percentage point lower (7 percent) or
1 percentage point higher (9 percent) than the current rate:
ASRS Current
1% Decrease Discount Rate 1% Increase
(7%) (8%) (9%)
Proportionate share of the net $28,564,427 $22,254,803 $16,982,573
pension liability
Pension plan fiduciary net position
available in the separately issued ASRS financial report.
C. Elected Officials
(EORP), a multiple employer cost-sharing defined benefit plan. The EORP pension plan was closed to new
members as of January 1, 2014. The EORP is governed by the Public Safety Retirement System Board of
Trustees according to the provisions of A.R.S. Title 38, Chapter 5, Article 3. EORP issues a publicly
available financial report that includes financial statements and required supplementary information. At
the time of issuance, the most recent report for EORP was unavailable. The report may be obtained on
website at www.psprs.com or by writing to EORP, 3010 E Camelback Rd, Ste 200, Phoenix, AZ
85016 or by calling (602) 255-5575.
77
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Benefits providedThe EORP provides retirement, health insurance premium supplement, disability, and
survivor benefits. State statute establishes benefit terms. Retirement, disability, and survivor benefits are
calculated on the basis of age, average yearly compensation, and service credit as follows:
EORP Initial membership date:
Before January 1, 2012 On or after January 1, 2012
Retirement and
Disability
Years of service and age 20 years, any age 10 years, age 62
required to receive 10 years, age 62 5 years, age 65
benefit 5 years, age 65 any years and age if disabled
5 years, any age*
any years and age if disabled
Final average salary is Highest 36 consecutive Highest 60 consecutive
based on months of last 10 years months of last 10 years
Benefit percent
Normal Retirement 4% per year of service, 3% per year of service,
not to exceed 80% not to exceed 75%
Disability Retirement 80% with 10 or more years of 75% with 10 or more years of service
service 37.5% with 5 to 10 years of service
40% with 5 to 10 years of service 18.75% with less than 5 years of service
20% with less than 5 years of
service
Survivor Benefit
Retired Members
Active Members and 75% of disability retirement benefit 50% of disability retirement benefit
Other Inactive Members
*
normal retirement age, with a maximum reduction of 30%.
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on excess
investment earning. In addition, the Legislature may enact permanent one-time benefit increases after a
Joint Legislative Budget Committee analysis of th
ContributionsState statutes establish active member and employer contribution requirements. Statute
also appropriates $5 million annually through fiscal year 2043 for the EORP from the State of Arizona to
supplement the normal cost plus an amount to amortize the unfunded accrued liability. For the year ended
June 30, 2018, statute required active EORP members to contribute 7 or 13
annual covered payroll
covered payroll. In addition, statue required the Town to contribute 23.5 percent of annual covered payroll
of retired members who worked for the Town in positions that an employee who contributes to the EORP
would typically fill. June 30, 2018, was
$27,266. No OPEB contributions were required or made for the years ended June 30, 2016, 2017, and
2018.
78
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
During fiscal year 2018, the Town paid for EORP pension contributions 100 percent from the General Fund.
Pension liabilityThe most recent EORP Schedule of Employer Allocations, Schedule of Pension Amounts
by Employer was unavailable. At June 30, 2018 liability for its
. The amount the Town recognized as its
proportionate share of the net pension liability, the related state support, and the total portion of the net
pension liability that was associated with the Town were as follows:
net pension liability $ 1,405,489
pension liability associated with the Town 290,197
Total $ 1,695,686
The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of that date. The total pension liability
as of June 30, 2016, reflects a decrease in the investment rate of return actuarial assumption from 7.85
percent to 7.50 percent.
portion of the net pension liability as of June 30, 2016
ended June 30, 2016s of June 30, 2016, was .1488 percent, which
was an increase of .0154 percent from its proportion measured as of June 30, 2015.
The collective net pension liability measured as of June 30, 2017, will reflect changes of actuarial
assumptions based on the results of an actuarial experience study for the 5-year period ended June 30,
these changes is not known.
Pension expense and deferred outflows/inflows of resourcesFor the year ended June 30, 2018, the Town
recognized pension expense for EORP from the prior year due to the unavailability of the current year
report. At June 30, 2018, the Town reported the June 30, 2017 deferred outflows of resources and
deferred inflows of resources related to pensions from the following sources:
EORP Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience
$ - $ 26,431
Changes of assumptions or other inputs
157,801 -
Net difference between projected and actual
earnings on pension plan investments
32,558 -
Changes in proportion and differences between
employer contributions and proportionate share of
contributions
57,983 35,098
Town contributions subsequent to the measurement
date
28,065
Total $ 276,407 $ 61,529
79
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
The $28,065 reported as deferred outflows of resources related to EORP pensions resulting from Town
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending June 30, 2018. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to EORP pensions will be recognized in pension expense as follows:
Year ending June 30
2017 $116,908
2018 51,553
2019 11,831
2020 6,521
Actuarial assumptionsThe significant actuarial assumptions used to measure the total pension liability are
as follows:
EORP
Actuarial valuation date June 30, 2016
Actuarial cost method Entry age normal
Investment rate of return 7.50%
Projected salary increases 4.25%
Inflation 4.0%
Members retired on or before July 1, 2011: 3% of benefit
Permanent benefit increase
Members retired on or after August 1, 2011: 0.5% of benefit
Mortality rates RP-2000 mortality table projected to 2025 with projection
scale AA
Actuarial assumptions used in the June 30, 2016, valuation were based on the results of an actuarial
experience study for the 5-year period ended June 30, 2011.
The long-term expected rate of return on EORP pension plan investments was determined to be 7.40
percent using a building-block method in which best-estimate ranges of expected future real rates of
return (expected returns, net of pension plan investment expenses and inflation) are developed for each
major asset class. The target allocation and best estimates of geometric real rates of return for each major
asset class are summarized in the following table:
80
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
EORP Target Long-Term Expected Geometric
Asset Class Allocation Real Rate of Return
Short term investments 2% 0.25%
Absolute return 2% 3.75%
Risk parity 4% 5.00%
Fixed income 5% 1.25%
Real assets 9% 4.52%
GTAA 10% 3.96%
Private credit 12% 6.75%
Real estate 10% 3.75%
Credit opportunities 16% 5.83%
Non-U.S. equity 14% 8.70%
U.S. equity 16% 7.60%
Total 100%
Discount rateAt June 30, 2017, the discount rate used to measure the EORP total pension liability was
3.91 percent, which was an increase of 0.23 from the discount rate used as of June 30, 2016. The
projection of cash flows used to determine the discount rate assumed that plan member contributions will
be made at the current contribution rate, employer contributions will be made at the statutorily set rates,
and state contributions will be made as currently required by statute. Based on those assumptions, the
be insufficient to make all projected future benefit
payments of current plan members. Therefore, to determine the total pension liability for the plan, the
long-term expected rate of return on pension plan investments of 7.40 percent was applied to periods of
projected benefit payments through the year ended June 30, 2026. A municipal bond rate of 3.56 percent
obtained from the Fidelity 20-year Municipal GO AA Index as of June 30, 2017, was applied to periods of
projected benefit payments after June 30, 2026.
rate
using the discount rate of 3.68, as well
would be if it were calculated using a discount rate that is 1 percentage point lower or 1 percentage point
higher than the current rate:
EORP Current
1% Decrease Discount Rate 1% Increase
(2.68%) (3.68%) (4.68%)
net pension liability $1,636,058 $1,405,489 $1,213,022
Pension Plan Fiduciary Net Position
available in the separately issued EORP financial report.
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
81
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
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 t
reserves and annual premiums be insufficient to meet the pool's obligations.
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
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
Significant Contractual Commitments
At the end of fiscal year 2018, the Town was obligated to $7.2 million in significant contractual
commitments for transportation, park, police facility, water facility, and wastewater facility related
construction projects. The Tangerine Corridor improvements accounted for $1.2 million and the Public
Safety Facility accounted for $4.6 million. The remaining commitments were for other transportation
projects of $441,000, water projects of $97,000, wastewater projects of $421,000, and park related
projects accounted for $479,000.
Additionally, the Town entered into an agreement with Motorola Solutions, Inc. for $351,948 for an
equipment lease-purchase agreement. While we have executed an agreement, no drawdowns have
occurred, thus no liability is present for fiscal year 2018.
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 $1,000,000 in resort
sales tax to the Town from the development project known as "Dove Mountain". This threshold was
reached on June 30, 2011, and therefore the developer ceased reimbursing the Town for the annual rent
payment. These leases provide for payments of minimum annual rentals as follows, excluding real estate
taxes, common area charges, management fees, and sales taxes:
82
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
Years Ending
June 30,
2019 574,992
2020 574,992
2021 632,491
2022 632,491
2023 632,491
2024 - 2028 3,352,202
2029 - 2033 3,687,422
2034 - 2038 4,056,163
2039 - 2043 4,461,780
2044 - 2048 4,907,959
2049 - 2053 5,398,754
2054 - 2058 5,938,630
2059 - 2063 6,532,495
2064 - 2068 7,185,745
2069 - 2073 7,904,319
2074 - 2078 8,694,751
2079 - 2083 9,564,226
2084 - 208810,520,649
2089 - 209311,572,714
2094 - 209812,729,984
2099 - 2099 2,642,072
Total112,197,322$
Minimum annual rentals above excludes annual rental under the remaining renewal options as of June 30,
2018. Rent expense under the above leases for fiscal 2017-18 aggregated $574,992.
NOTE 14 SUBSEQUENT EVENT
Saguaro Springs Community Facilities District Debt Issuance
In July 2018, the District issued the Series 2018 General Obligation Bonds (Bonds) in the amount of
$3,845,000, maturing in 2043, with an interest rate of 2% to 4%. The Bonds were issued to finance the
costs to acquire and construct certain public infrastructure benefiting the District and to pay costs of
issuance related to the Bonds.
Town of Marana Debt Issuance
In August 2018, the Town entered into the Water Infrastructure Finance Authority Loan Agreement (Loan)
in the amount of $1,481,990 with 50% forgivable principal (total principal $740,995), maturing in 2038,
with an interest rate of 2.508%. The Loan was acquired to finance the costs to design and construct a new
lift station and force main to convey flow from the Adonis collection system to the existing Town of Marana
system.
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84
REQUIRED SUPPLEMENTARY INFORMATION
85
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
COST-SHARING PENSION PLANS
JUNE 30, 2018
Arizona State Reporting Fiscal Year
Retirement System (Measurement Date)
2014
2018 2017 2016 2015
through
(2017) (2016) (2015) (2014) 2009
0.14286% 0.140584% 0.136510% 0.129998% Information
pension liability not
available
$ 22,254,803 $ 22,691,024 $ 21,263,376 $ 19,235,271
the net pension liability
$ 13,881,636 $ 13,150,962 $ 12,565,464 $ 11,714,615 10 years of
information
160.32% 172.54% 169.22% 164.20%
will be
the net pension liability as a
reported as
percentage of its covered
it becomes
payroll
available
Plan fiduciary net position as a 69.92% 67.06% 68.35% 69.49%
percentage of the total
pension liability
Elected Officials Reporting Fiscal Year
Retirement Plan (Measurement Date)
2018 2017 2016 2015
2014 through
(2017) (2016) (2015) (2014) 2009
Information .148768% .133401% .1658860% Information
pension liability not available not available
T$1,405,489 $1,042,465 $ 1,112,385
the net pension liability
10 years of
290,197 324,997 341,068 information
the net pension liability will be
associated with the Town reported as it
becomes
Total $1,695,686 $1,367,462 $ 1,453,453
available
ed payroll $119,424 $119,424 $ 119,423
1,176.89% 872.91% 931.15%
the net pension liability as a
percentage of its covered
payroll
Plan fiduciary net position as a 23.42% 28.32% 31.91%
percentage of the total pension
liability
See accompanying notes to pension plan schedules.
86
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
NET PENSION LIABILITY (ASSET) AND RELATED RATIOS
AGENT PENSION PLANS
JUNE 30, 2018
Reporting Fiscal Year
PSPRS
(Measurement Date)
2014
2018 2017 2016 2015 through
(2017) (2016) (2015) (2014) 2009
Total pension liability
Service cost $ 1,213,757 $ 994,058 $ 891,324 $ 876,619 Information
Interest on the total pension liability 2,322,987 2,005,255 1,844,654 1,551,602 not
Changes of benefit terms 367,673 1,837,430 - 308,515 available
Differences between expected and
actual experience in the
10 years of
measurement of the pension liability 340,373 536,692 333,269 148,583
information
Changes of assumptions or other
will be
inputs 725,862 1,226,081 - 1,933,583
reported as
Benefit payments, including refunds
it becomes
of employee contributions (1,387,192) (1,174,525) (974,950) (1,211,258)
available
Net change in total pension liability 3,583,460 5,424,991 2,094,297 3,607,644
Total pension liabilitybeginning 31,059,879 25,634,888 23,540,591 19,932,947
Total pension liabilityending (a) $34,643,339 $31,059,879 $25,634,888 $ 23,540,591
Plan fiduciary net position
Contributionsemployer $1,384,924 $1,323,677 $1,006,859 $ 797,871
Contributionsemployee 621,583 672,181 579,390 578,596
Net investment income 2,081,790 95,438 533,938 1,698,902
Benefit payments, including refunds
of employee contributions (1,387,192) (1,174,525) (974,950) (1,211,258)
Pension plan administrative expense (18,820) (14,134) (13,410) -
Other changes 2,417 223,597 46,032 (543,969)
Net change in plan fiduciary net
position 2,684,702 1,126,234 1,177,859 1,320,142
Plan fiduciary net positionbeginning 16,535,203 15,408,969 14,231,110 12,910,968
Plan fiduciary net positionending (b) $19,219,905 $16,535,203 $15,408,969 $ 14,231,110
ty (asset)
ending (a) (b) $15,423,434 $14,524,676 $10,225,919 $ 9,309,481
Plan fiduciary net position as a
percentage of the total pension
liability 55.48% 53.24% 60.11% 60.45%
Covered payroll $5,318,831 $5,182,784 $4,900,569 $ 4,638.415
percentage of covered payroll 289.98% 280.25% 208.67% 200.70%
See accompanying notes to pension plan schedules.
87
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
NET PENSION LIABILITY (ASSET) AND RELATED RATIOS
AGENT PENSION PLANS
JUNE 30, 2018
Reporting Fiscal Year
CORP Dispatchers
(Measurement Date)
2014
2018 2017 2016 2015 through
(2017) (2016) (2015) (2014) 2008
Total pension liability
Service cost $ 59,139 $ 57,866 $ 64,307 $ 63,474 Information
Interest on the total pension liability 118,108 113,075 105,144 94,360 not
Changes of benefit terms 312,169 15,002 - - available
Differences between expected and
actual experience in the (18,913) (25,358) (18,303) (16,512)
10 years of
measurement of the pension liability
information
Changes of assumptions or other
will be
inputs (5,967) (136) - 18,699
reported as
Benefit payments, including refunds of
it becomes
employee contributions
(5,825) (47,673) (46,131) - available
Net change in total pension liability 458,711 112,776 105,017 160,021
Total pension liabilitybeginning 1,548,120 1,435,344 1,330,327 1,170,306
Total pension liabilityending (a) $ 2,006,831 $ 1,548,120 $ 1,435,344 $ 1,330,327
Plan fiduciary net position
Contributionsemployer $ 51,162 $ 48,648 $ 49,045 $ 48,667
Contributionsemployee 32,199 32,623 35,981 36,306
Net investment income 124,809 6,034 34,230 102,910
Benefit payments, including refunds of
employee contributions (5,825) (47,673) (46,131) -
Pension plan administrative expense (1,491) (1,253) (1,233) -
Other changes (6) (5) (635) (24,446)
Net change in plan fiduciary net position 200,848 38,374 71,257 163,437
Plan fiduciary net positionbeginning 1,015,820 977,446 906,189 742,752
Plan fiduciary net positionending (b) $ 1,216,668 $ 1,015,820 $ 977,446 $ 906,189
ity (asset)
ending (a) (b) $ 790,163 $ 532,300 $ 457,898 $ 424,138
Plan fiduciary net position as a
percentage of the total pension liability 60.63% 65.62% 68.10% 68.12%
Covered payroll $ 404,506 $ 397,428 $ 430,892 $ 456,107
T
percentage of covered payroll 195.34% 133.94% 106.27% 92.99%
See accompanying notes to pension plan schedules.
88
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2018
Reporting Fiscal Year
Arizona State
Retirement
System
2018 2017 2016 2015 2014
Statutorily required $1,536,196 $1,496,440 $1,426,879 $ 1,367,122 $ 1,253,464
contribution
1,536,196 1,496,440 1,426,879 1,367,122 1,253,464
relation to the
statutorily required
contribution
$ - $ - $ - $ -$ -
deficiency (excess)
$14,093,538 $13,881,636 $13,150,962 $12,565,464 $11,714,615
10.90% 10.78% 10.85% 10.88% 10.70%
a percentage of
covered payroll
2013 2012 2011 2010 2009
Statutorily required $1,172,006 $1,095,471 $934,621 $929,807 $961,911
contribution
1,172,006 1,095,471 934,621 929,807 961,911
relation to the
statutorily required
contribution
$ -$ -$ -$ -$ -
deficiency (excess)
$11,434,201 $11,098,998 $10,373,156 $11,148,776 $12,038,936
10.25% 9.87% 9.00% 8.34% 7.99%
a percentage of
covered payroll
See accompanying notes to pension plan schedules.
89
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2018
Reporting Fiscal Year
Elected Officials
Retirement Plan
2018 2017 2016 2015 2014
Statutorily required $27,266 $28,065 $28,065 $28,065 $38,431
contribution
27,266 28,065 28,065 28,065 38,431
in relation to the
statutorily required
contribution
$ - $ - $ - $ - $ -
deficiency (excess)
$116,021 $119,423 $119,423 $119,424 $119,423
payroll
23.50% 23.50% 23.50% 23.50% 32.18%
as a percentage of
covered payroll
2013 2012 2011 2010 2009
Statutorily required $43,518 $40,861 $34,226 $29,793 Information
contribution not available
43,518 40,861 34,226 29,793
in relation to the
statutorily required
contribution
$ - $ - $ - $ -
deficiency (excess)
$119,423 $123,858 $114,891 $113,497
payroll
36.44% 32.99% 29.79% 26.25%
as a percentage of
covered payroll
See accompanying notes to pension plan schedules.
90
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2018
Reporting Fiscal Year
PSPRS
2018 2017 2016 2015 2014
$1,384,924 $1,323,677 $1,006,859 $ 797,871 $ 831,677
Actuarially determined
contribution
1,384,924 1,323,677 1,006,859 797,871 831,677
in relation to the
actuarially
determined
contribution
$ - $ - $ - $ -$ -
deficiency (excess)
$5,318,831 $5,182,784 $4,900,569 $4,638,418 $4,498,048
payroll
26,04% 25.54% 20.55% 17.20% 18.49%
as a percentage of
covered payroll
2013 2012 2011 2010 2009
$778,039 $644,505 $554,133 $457,749 Information
Actuarially determined
not available
contribution
778,039 644,505 554,133 457,749
ontributions
in relation to the
actuarially
determined
contribution
$ -$ -$ -$ -
deficiency (excess)
$4,512,699 $4,254,314 $4,345,965 $4,625,605
payroll
17.24% 15.15% 12.75% 9.90%
as a percentage of
covered payroll
See accompanying notes to pension plan schedules.
91
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2018
Reporting Fiscal Year
CORP -
Dispatchers
2018 2017 2016 2015 2014
$51,210 $48,648 $49,045 $ 48,667 $ 32,506
Actuarially determined
contribution
51,210 48,648 49,045 48,667 32,506
in relation to the
actuarially
determined
contribution
$ -$ -$ -$ -$ -
deficiency (excess)
$ 404,506 $ 397,428 $ 430,892 $ 456,106 $ 443,980
Tow
payroll
12.66% 12.24% 11.38% 10.67% 7.32%
as a percentage of
covered payroll
2013 2012 2011 2010 2009
$ 25,550 $ 24,843 $ 22,805 $ 28,540 Information
Actuarially determined
not available
contribution
25,550 24,843 22,805 28,540
in relation to the
actuarially
determined
contribution
$ -$ -$ -$ -
deficiency (excess)
$ 530,695 $ 536,843 $ 593,407 $ 603,377
payroll
4.25% 4.63% 3.84% 4.73%
as a percentage of
covered payroll
See accompanying notes to pension plan schedules.
92
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO PENSION PLAN SCHEDULES
JUNE 30, 2018
Note 1 - Actuarially Determined Contribution Rates
Actuarial determined contribution rates for PSPRS and CORP are calculated as of June 30 two years prior
to the end of the fiscal year in which contributions are made. The actuarial methods and assumptions used
to establish the contribution requirements are as follows:
Actuarial cost method Entry age normal
Amortization method Level percent-of-pay closed
Remaining amortization period 19 years
as of the 2016 actuarial
valuation
Asset valuation method 7-year smoothed market value; 80%/120% market corridor
Actuarial assumptions:
Investment rate of return In the 2016 actuarial valuation, the investment rate of return was
decreased from 7.85% to 7.5%
In the 2013 actuarial valuation, the investment rate of return was
decreased from 8.0% to 7.85%
Projected salary increases In the 2014 actuarial valuation, projected salary increases were
decreased from 4.5%8.5% to 4.0%8.0% for PSPRS and from 4.5%
7.75% to 4.0%7.25% for CORP.
In the 2013 actuarial valuation, projected salary increases
were decreased from 5.0%9.0% to 4.5%8.5% for
PSPRS and from 5.0%8.25% to 4.5%7.75% for CORP.
Wage growth In the 2014 actuarial valuation, wage growth was decreased from 4.5%
to 4.0% for PSPRS and CORP. In the 2013 actuarial valuation, wage
growth was decreased from 5.0% to 4.5% for PSPRS and CORP
Retirement age Experience-based table of rates that is specific to the type of eligibility
condition. Last updated for the 2012 valuation pursuant to an
experience study of the period July 1, 2006 - June 30, 2011.
Mortality RP-2000 mortality table (adjusted by 105% for both males and females)
Note 2 Factors that affect trends
Arizona courts have ruled that provisions of a 2011 law that changed the mechanism for funding
permanent pension benefit increases and increased employee pension contribution rates were
unconstitutional or a breach of contract because those provisions apply to individuals who were members
prior mechanism for funding permanent benefit increases for those members and revised actuarial
assumptions to explicitly value future permanent benefit increases. PSPRS and EORP also reduced those
ities for
effective date. These changes also increased the PSPRS and CORP required pension contributions
will increase the PSPRS and CORP required contributions beginning in fiscal year 2019 for members who
valuations, and therefore, these changes did not affect them.
93
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2018
Health Insurance Premium Benefit
Unfunded UAAL
actuarial (funding
accrued excess)
liability as a
Actuarial Actuarial (UAAL) Annual percentage
value of accrued (funding Funded covered of covered
Actuarial assets liability excess) ratio payroll payroll
Valuation Date (a) (b) (b) (a) (a)/(b) (c) (b) (a)/c)
PSPRS
6/30/17 $ 784,926 $ 693,231 $ (91,695) 113.23% $ 5,318,831 (1.72)%
6/30/16 768,883 739,259 (29,624) 104.00% 5,182,784 (0.57)%
6/30/15 724,917 607,586 (117,331) 119.31% 4,900,569 (2.39)%
CORP Dispatchers
6/30/17 $ 42,148 $ 42,677 $ 529 98.76% $ 404,506 0.13%
6/30/16 39,112 51,144 12,032 76.50% 397,428 3.03%
6/30/15 35,178 47,755 12,577 73.66% 430,892 2.92%
94
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
95
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96
OTHER MAJOR GOVERNMENTAL FUNDS
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES BUDGET AND ACTUAL
97
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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, 2018
Budgeted Amounts
Variance -
Positive
OriginalFinalActual(Negative)
Revenues:
Special assessments
$ 2,251,074 $ 2,251,074$ 988,702 $ (1,262,372)
Total revenues
2,251,074 2,251,074 988,702 (1,262,372)
Expenditures:
Debt service -
Principal retirement
1,584,000 1,584,00045,0001,539,000
Interest and fiscal charges
667,074 667,074 253,563 413,511
Total expenditures
2,251,074 2,251,074 298,563 1,952,511
Excess (deficiency) of revenues
over expenditures
- - 690,139 690,139
Fund balances, beginning of year
-- 17,279 17,279
Fund balances, end of year
$ - $ - $ 707,418 $ 707,418
99
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - PAG CAPITAL
YEAR ENDED JUNE 30, 2018
PAG Capital
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental
$ 40,382,226$ 40,382,226$ 14,118,211 $ (26,264,015)
Contributions
- - 51,547 51,547
Total revenues
40,382,226 40,382,226 14,169,758 (26,212,468)
Expenditures:
Capital outlay
26,825,611 26,825,61113,858,19612,967,415
Total expenditures
26,825,611 26,825,611 13,858,196 12,967,415
Excess (deficiency) of revenues
over expenditures
13,556,615 13,556,615 311,562 (13,245,053)
Other financing sources (uses):
Transfers in
- - 59,866 59,866
Transfers out
- - (472,080) (472,080)
Total other financing sources
(uses)
- - (412,214) (412,214)
Changes in fund balances
13,556,61513,556,615(100,652)(13,657,267)
Fund balance (deficit), beginning
of year
--(1,908,216)(1,908,216)
Fund balance (deficit), end of year
13,556,615 13,556,615 (2,008,868) (15,565,483)
100
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - SALES TAX CAPITAL
YEAR ENDED JUNE 30, 2018
Sales Tax Capital
Variance -
Positive
(Negative)
Original BudgetFinal BudgetActual
Revenues:
Sales tax$ 5,579,676$ 5,579,676$ 5,526,253 $ (53,423)
Investment income - - 11,222 11,222
Total revenues 5,579,676 5,579,676 5,537,475 (42,201)
Expenditures:
Capital outlay 17,175,455 17,175,455 11,508,382 5,667,073
Total expenditures 17,175,455 17,175,455 11,508,382 5,667,073
Excess (deficiency) of revenues over
expenditures (11,595,779) (11,595,779)(5,970,907)5,624,872
Other financing sources (uses):
Transfers in
- - 620,248 620,248
Total other financing sources
(uses)
- - 620,248 620,248
Changes in fund balances
(11,595,779) (11,595,779) (5,350,659) 6,245,120
Fund balances, beginning of year
-- 8,410,751 8,410,751
Fund balances, end of year
$ (11,595,779)$ (11,595,779) $ 3,060,092 $ 14,655,871
101
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - TRANSPORTATION CAPITAL
YEAR ENDED JUNE 30, 2018
Transportation Capital
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales taxes
$ 7,018,183 $ 7,018,183$ 7,368,949 $ 350,766
Fines, forefeitures & penalties
- - 7,700 7,700
Investment income
- - 162,955 162,955
Total revenues
7,018,183 7,018,183 7,539,604 521,421
Expenditures:
Current -
General government
- - 953,743 (953,743)
Highways and streets
202,227 202,227 67,318 134,909
Capital outlay
18,141,609 18,141,609 2,735,911 15,405,698
Total expenditures
18,343,836 18,343,836 3,756,972 14,586,864
Excess (deficiency) of revenues over
expenditures (11,325,653) (11,325,653) 3,782,632 15,108,285
Other financing sources (uses):
Transfers in
- - 804,295 804,295
Transfers out
(641,740)(641,740)(391,239)250,501
Total other financing sources
(uses)
(641,740)(641,740)413,0561,054,796
Changes in fund balances
(11,967,393) (11,967,393) 4,195,688 16,163,081
Fund balances (deficits), July 1, 2017-- 12,828,852 12,828,852
Fund balances (deficits), June 30, 2018$ (11,967,393)$ (11,967,393)$ 17,024,540$ 28,991,933
102
NON-MAJOR GOVERNMENTAL FUNDS
103
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS -
BY FUND TYPE
JUNE 30, 2018
Total
Non-Major
Special Governmental
RevenueCapital ProjectsDebt ServiceFunds
ASSETS
Cash and cash equivalents
$ 4,538,996 $ 12,769,147 $ 4,847,316 $ 22,155,459
Taxes receivable
- 310 1,710 2,020
Accounts receivable
1,596 - - 1,596
Interest receivable
- 3,418 481 3,899
Development agreement receivable
- 58,738 - 58,738
Due from governments
265,700 604,648 - 870,348
Prepaid items
210,837 50,611 - 261,448
Restricted cash and investments - 1,029,496 - 1,029,496
Total assets$ 5,017,129 $ 14,516,368 $ 4,849,507 $ 24,383,004
LIABILITIES
Accounts payable
$ 28,048 $ 1,809,169 $ - $ 1,837,217
Accrued payroll and employee benefits 7,382 - - 7,382
Due to other funds 20,785 214,201 - 234,986
Deposits held for others - 75,758 - 75,758
Unearned revenue 18,024 - - 18,024
Total liabilities 74,239 2,099,128 - 2,173,367
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
2,861 - - 2,861
Total deferred inflows of
resources
2,861 - - 2,861
FUND BALANCES (DEFICITS)
Fund balances:
Nonspendable 210,837 50,611 - 261,448
Restricted 4,729,192 12,762,687 4,849,507 22,341,386
Unassigned-(396,058)-(396,058)
Total fund balances 4,940,029 12,417,240 4,849,507 22,206,776
Total liabilities, deferred inflows
of resources, and fund balances
$ 5,017,129 $ 14,516,368 $ 4,849,507 $ 24,383,004
104
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, 2018
Total
Non-Major
Special Governmental
RevenueCapital ProjectsDebt ServiceFunds
Revenues:
Sales tax
$ 1,327,289$ 230,945$ -$ 1,558,234
Property tax
- 80,973 491,519 572,492
Intergovernmental
1,079,948 898,262 - 1,978,210
Licenses, fees & permits
- 3,043,576 - 3,043,576
Fines, forfeitures & penalties
130,168 - - 130,168
Investment income
1,496 137,817
14,381 121,940
Miscellaneous
18,593 - - 18,593
Total revenues
2,570,379 4,375,696 493,015 7,439,090
Expenditures:
Current -
General government
655,694 328 - 656,022
Public safety
663,729 - - 663,729
Highways and streets
- 37,866 - 37,866
Economic and community development
342,792 - - 342,792
Culture and recreation
- 153,958
- 153,958
Capital outlay
14,736 11,592,837 - 11,607,573
Debt service -
Principal retirement
- - 2,215,000 2,215,000
Interest and fiscal charges
- - 2,491,797 2,491,797
Total expenditures
1,676,951 11,784,989 4,706,797 18,168,737
Excess (deficiency) of revenues over
expenditures
893,428(7,409,293)(4,213,782)(10,729,647)
Other financing sources (uses):
Transfers in
- 3,129,090 4,881,137 8,010,227
Transfers out
(665)(2,416,571)- (2,417,236)
Total other financing sources (uses)
(665)712,5194,881,1375,592,991
Change in fund balances
892,763(6,696,774)667,355(5,136,656)
Fund balances, beginning of year
4,047,266 19,114,014 4,182,152 27,343,432
Fund balances, end of year
$ 4,940,029 $ 12,417,240 $ 4,849,507 $ 22,206,776
105
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106
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 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.
107
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2018
Community
Development Affordable
Block GrantHousingBed Tax
ASSETS
Cash and cash equivalents$ - $ 232,997 $ 1,301,224
Accounts receivable - - -
Due from governments 23,872 - 123,922
Prepaid - - 4,225
Total assets$ 23,872 $ 232,997 $ 1,429,371
LIABILITIES
Accounts payable$ 3,086 $ 14,736 $ 7,077
2,166
Accrued payroll and employee benefits - -
Due to other funds 20,785 - -
Unearned revenue - - -
9,243
Total liabilities 23,871 14,736
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue
- - -
-
Total deferred inflows of resources - -
FUND BALANCES (DEFICITS)
4,225
Nonspendable - -
Restricted 1 218,261 1,415,903
Total fund balances 1 218,261 1,420,128
Total liabilities, deferred inflows of
resources, and fund balances
$ 23,872 $ 232,997 $ 1,429,371
108
Judicial
Collection Local Other Special
Enhancement
Fill-the-GapTechnologyRevenue FundTotals
$ 152,387 $ 90,078 $ 871,204 $ 1,891,106 $ 4,538,996
- 1,596 - - 1,596
- - - 117,906 265,700
210,837
- - - 206,612
$ 152,387 $ 91,674 $ 871,204 $ 2,215,624 $ 5,017,129
$ - $ - $ 264 $ 2,885 $ 28,048
7,382
- - 1,087 4,129
- - - - 20,785
- - - 18,024 18,024
- - 1,351 25,038 74,239
- - 2,861 2,861
-
- - 2,861 2,861
-
- - - 206,612 210,837
152,387 91,674 869,853 1,981,113 4,729,192
152,387 91,674 869,853 2,187,725 4,940,029
$ 152,387 $ 91,674 $ 871,204 $ 2,215,624 $ 5,017,129
109
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2018
Community Judicial
Development Affordable Collection
Block GrantHousingBed TaxEnhancement
Revenues:
Sales taxes
$ - $ - $ 1,327,289 $ -
Intergovernmental
87,807 - - -
Fines, forfeitures & penalties
- - - 8,691
Investment income
- -
- -
Miscellaneous
- 12,840 - -
Total revenues
87,807 12,840 1,327,289 8,691
Expenditures:
Current -
General government
576,832 -
- -
Public safety
- - - -
Economic and community development
87,806 - 254,986 -
Capital outlay
-
- 14,736 -
Total expenditures
831,818 -
87,806 14,736
Excess (deficiency) of revenues over
expenditures
1 (1,896) 495,471 8,691
Other financing sources (uses):
Transfers out
(665) - - -
Total other financing sources (uses)
(665) - - -
Change in fund balances
(664)(1,896)495,4718,691
Fund balances (deficits), beginning of year
665 220,157 924,657 143,696
Fund balances (deficits), end of year
$ 1$218,261$1,420,128$ 152,387
110
Local Other Special
Fill-the-GapTechnologyRevenue FundTotals
$ - $ - $ - $ 1,327,289
- - 992,141 1,079,948
5,301 63,376 52,800 130,168
- - 14,381 14,381
- - 5,753 18,593
5,301 63,376 1,065,075 2,570,379
- 78,862 - 655,694
- - 663,729 663,729
- - - 342,792
- - - 14,736
78,862 663,729 1,676,951
-
5,301 (15,486) 401,346 893,428
- - - (665)
- - - (665)
5,301(15,486)401,346892,763
86,373 885,339 1,786,379 4,047,266
$ 91,674$ 869,853$2,187,725$4,940,029
111
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, 2018
Community Development Block Grant Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 87,807 $ (87,193)
Intergovernmental$ 175,000 $ 175,000
Total revenues 175,000 175,000 87,807 (87,193)
Expenditures:
Current -
Economic and community development 185,000 185,000 87,806 97,194
Capital outlay 25,000 25,000 - 25,000
Total expenditures 210,000 210,000 87,806 122,194
Excess (deficiency) of revenues over
1 35,001
expenditures (35,000) (35,000)
Other financing sources:
Transfer out - - (665) (665)
Total other financing sources - - (665) (665)
Change in fund balance (35,000) (35,000) (664) 34,336
Fund balance, July 1, 2017- - 665 665
Fund balance, June 30, 2018$ (35,000)$ (35,000) $ 1 $ 35,666
112
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, 2018
Affordable Housing Revolving Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 12,840 $ 2,840
Miscellaneous$ 10,000 $ 10,000
Total revenues 10,000 10,000 12,840 2,840
Expenditures:
Current -
Economic and community development 215,720 215,720 - 215,720
Capital outlay 90,000 90,000 14,736 75,264
Total expenditures 305,720 305,720 14,736 290,984
Excess (deficiency) of revenues over
(1,896) 293,824
expenditures (295,720) (295,720)
Fund balance, July 1, 2017 - - 220,157 220,157
Fund balance (deficits), June 30, 2018$ (295,720) $ (295,720) $ 218,261 $ 513,981
113
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, 2018
Bed Tax Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 1,327,289 $ 337,731
Sales taxes$ 989,558 $ 989,558
Total revenues 989,558 989,558 1,327,289 337,731
Expenditures:
Current -
General government 679,922 679,922 576,832 103,090
Economic and community development 309,636 309,636 254,986 54,650
Total expenditures 989,558 989,558 831,818 157,740
Excess (deficiency) of revenues over
495,471 495,471
expenditures - -
Fund balance, July 1, 2017 - - 924,657 924,657
Fund balance (deficits), June 30, 2018$ - $ - $ 1,420,128 $ 1,420,128
114
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, 2018
Judicial Collection Enhancement Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 8,691 $ (6,309)
Fines, forfeitures & penalties$ 15,000 $ 15,000
Total revenues 15,000 15,000 8,691 (6,309)
Expenditures:
Current -
General government 82,000 82,000 - 82,000
Total expenditures 82,000 82,000 - 82,000
Excess (deficiency) of revenues over
expenditures (67,000) (67,000) 8,691 75,691
Fund balance, July 1, 2017 - - 143,696 143,696
Fund balance (deficits), June 30, 2018$ (67,000) $ (67,000) $ 152,387 $ 219,387
115
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, 2018
Fill-the-Gap
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 5,301 $ (1,199)
Fines, forfeitures & penalties$ 6,500 $ 6,500
Total revenues 6,500 6,500 5,301 (1,199)
Expenditures:
Current -
General government 34,500 34,500 - 34,500
Total expenditures 34,500 34,500 - 34,500
Excess (deficiency) of revenues over
expenditures (28,000) (28,000) 5,301 33,301
Fund balance, July 1, 2017 - - 86,373 86,373
Fund balance (deficits), June 30, 2018$ (28,000) $ (28,000) $ 91,674 $ 119,674
116
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, 2018
Local Technology Fund
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 63,376 $ (66,624)
Fines, forfeitures & penalties$ 130,000 $ 130,000
Total revenues 130,000 130,000 63,376 (66,624)
Expenditures:
Current -
General government 288,191 288,191 78,862 209,329
Total expenditures 288,191 288,191 78,862 209,329
Change in fund balance (158,191) (158,191) (15,486) 142,705
Fund balance, July 1, 2017 - - 885,339 885,339
Fund balance (deficits), June 30, 2018$ (158,191) $ (158,191) $ 869,853 $ 1,028,044
117
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, 2018
Other Special Revenue Fund
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
$ 992,141 $ (264,663)
Intergovernmental$ 1,256,804 $ 1,256,804
Fines, forfeitures & penalties 50,000 50,000 52,800 2,800
Contributions 789 789 - (789)
Investment income 1,615 1,615 14,381 12,766
Miscellaneous 10,000 10,000 5,753 (4,247)
Total revenues 1,319,208 1,319,208 1,065,075 (254,133)
Expenditures:
Current -
General government 680,789 680,789 - 680,789
663,729 (81,701)
Public safety 1,582,028 582,028
Total expenditures 2,262,817 1,262,817 663,729 599,088
Excess (deficiency) of revenues over
expenditures (943,609) 56,391 401,346 344,955
Other financing sources:
Transfer in100,000100,000 - (100,000)
Total other financing sources 100,000 100,000 - (100,000)
Change in fund balance(843,609) 156,391 401,346 244,955
Fund balance, July 1, 2017--1,786,3791,786,379
Fund balance (deficits), June 30, 2018$ (843,609)$ 156,391 $ 2,187,725 $ 2,031,334
118
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) Transportation Impact Fees This fund accounts for the
financing and construction of transportation projects that are defined within the northwest
benefit area.
Northeast (Benefit Area) Transportation Impact Fees This fund accounts for the
financing and construction of transportation projects that are defined within the northeast
benefit area.
South (Benefit Area) Transportation Impact Fees This fund accounts for the financing
and construction of transportation projects that are defined within the south benefit area.
Park Impact Fees Fund This fund accounts for park impact fees collected by the Town and
utilized 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.
119
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS (Cont'd)
YEAR ENDED JUNE 30, 2018
Northwest Northeast South
Transportation Transportation Transportation Park Impact
Impact FeesImpact FeesImpact FeesFees
ASSETS
Cash and cash equivalents
$ 260,240 $ - $ 4,208,138 $ 2,350,543
Taxes receivable
- - - -
Interest receivable
- - 2,240 -
Development agreement receivable
- - - -
Due from governments
- - - 833
Prepaid items
- - - -
Restricted cash
- -
- -
Total assets
$ 260,240 $ - $ 4,210,378 $ 2,351,376
LIABILITIES
Accounts payable
$ 123,106 $ 181,857 $ 174 $ 1,176,653
Due to other funds
- 214,201 - -
Deposits held for others
- - - -
Total liabilities
123,106 396,058 174 1,176,653
FUND BALANCES (DEFICITS)
Nonspendable - - - -
Restricted 137,134 - 4,210,204 1,174,723
- -
Unassigned - (396,058)
Total fund balances (deficits)
137,134 (396,058) 4,210,204 1,174,723
Total liabilities, deferred inflows
of resources, and fund balances
$ 260,240 $ - $ 4,210,378 $ 2,351,376
120
Gladden Vanderbilt Saguaro
Downtown Other Capital Farms Farms Springs
ReinvestmentProjectsCapitalCapitalCapitalTotals
$ 785,871 $ 4,400,021 $ 6 07,213$ 57,265 $ 9 9,856$ 12,769,147
- - 205 - 105 310
- 1,178 - - - 3,418
- 58,738 - - - 58,738
27,953 575,862 - - - 604,648
- 50,611 - - - 50,611
- 1,029,496
- 1,029,496 - -
$ 813,824 $ 6,115,906 $ 6 07,418$ 57,265 $ 9 9,961$ 14,516,368
$ 263 $ 326,788 $ 164
$ 82 $ 82 $ 1,809,169
- - - - - 214,201
72,373 - - 3,385 75,758
-
263 399,161 164 82 3,467 2,099,128
- 50,611 - - - $ 50,611
813,561 5,666,134 607,254 57,183 96,494 12,762,687
- - - - (396,058)
-
813,561 5,716,745 607,254 57,183 96,494 12,417,240
$ 813,824 $ 6,115,906 $ 6 07,418$ 57,265 $ 9 9,961$ 14,516,368
121
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECT FUNDS
YEAR ENDED JUNE 30, 2018
Northwest Northeast South
Transportation Transportation Transportation Park Impact
Impact FeesImpact FeesImpact FeesFees
Revenues:
Sales tax
$ -$ -$ -$ -
Property tax
- - - -
Intergovernmental
- - - 830
Licenses, fees & permits
77,207 573,592 1,016,237 1,149,486
Investment income
12,583 29,826 3,954 43,177
Miscellaneous revenue
- - - -
Total revenues
89,790 603,418 1,020,191 1,193,493
Expenditures:
Current -
General government
- -
- -
Highways and streets
4,839 9,130 7,809 -
Culture and recreation
- - - 153,250
Capital outlay
1,277,549 3,642,502 2,048 3,335,596
Total expenditures
9,857 3,488,846
1,282,388 3,651,632
Excess (deficiency) of revenues over
expenditures
(1,192,598) (3,048,214) 1,010,334 (2,295,353)
Other financing sources (uses):
Transfers in
- - - -
Transfers out
(380) (248,718) (254,681) (488,249)
Total other financing sources (uses)
(380) (248,718) (254,681) (488,249)
Change in fund balances
(1,192,978) (3,296,932) 755,653 (2,783,602)
Fund balances (deficits), beginning of year
1,330,112 2,900,874 3,454,551 3,958,325
Fund balances (deficits), end of year
$ 137,134$ (396,058) $ 4,210,204 $ 1,174,723
122
Gladden Vanderbilt Saguaro
Downtown Other Capital Farms Farms Springs
ReinvestmentProjectsCapitalCapitalCapitalTotals
$ 230,945$ -$ -$ -$ -$ 230,945
- - 59,183 2,702 19,088 80,973
- 897,432 - - - 898,262
- 227,054 - - - 3,043,576
- 32,400 - - - 121,940
- - - - - -
230,945 1,156,886 59,183 2,702 19,088 4,375,696
82 328
- - 164 82
- 16,088 - - - 37,866
- 708 - - - 153,958
24,280 3,310,862 - - - 11,592,837
24,280 3,327,658 164 82 82 11,784,989
206,665 (2,170,772) 59,019 2,620 19,006 (7,409,293)
- 3,129,090 - - - 3,129,090
(2,416,571)
- (1,424,543) - - -
- 1,704,547 - - - 712,519
206,665(466,225) 59,019 2,620 19,006 (6,696,774)
606,896 6,182,970 548,235 54,563 77,488 19,114,014
$ 813,561$ 5,716,745$ 607,254$ 57,183 $ 96,494 $ 12,417,240
123
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, 2018
Northwest Transportation Impact Fees
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
$ 77,207$ 38, 707
Licenses, fees & permits$ 38,500$38,500
Investment income- - 12, 58312, 583
Total revenues 38,500 38,500 89, 79051, 290
Expenditures:
Current -
Highways and streets- - 4,839 (4,839)
Capital outlay 1,253,564 1,253,564 1,277,549 ( 23,985)
282,388 ( 28,824)
Total expenditures 1,253,564 1,253,564 1,
Excess (deficiency) of revenues over
expenditures (1,215,064) (1,215,064) ( 1,192,598)22, 466
Other financing sources (uses):
Transfers out- - ( 380) (380)
Total other financing sources (uses)- - (380) (380)
Change in fund balances (1,215,064) (1,215,064) ( 1,192,978)22, 086
Fund balances (deficits), July 1, 2017- - 1, 330,112 1, 330,112
Fund balances (deficits), June 30, 2018$ (1,215,064) $ (1,215,064) $ 137, 134$ 1, 352,198
124
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, 2018
Northeast Transportation Impact Fees
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
$ 573,592 $ 338,612
Licenses, fees & permits$ 234,980 $ 234,980
Investment income - - 29,826 29,826
Total revenues 234,980 234,980 603,418 368,438
Expenditures:
Current -
Highways and streets - - 9,130 (9,130)
Capital outlay 3,642,682 3,642,682 3,642,502 180
3,651,632 (8,950)
Total expenditures 3,642,682 3,642,682
Excess (deficiency) of revenues over
expenditures (3,407,702) (3,407,702) (3,048,214) 359,488
Other financing sources (uses):
Transfers out (449,218) (449,218) (248,718) 200,500
Total other financing sources (uses) (449,218) (449,218) (248,718) 200,500
Change in fund balances (3,856,920) (3,856,920) (3,296,932) 559,988
Fund balances (deficits), July 1, 2017- - 2,900,874 2,900,874
Fund balances (deficits), June 30, 2018$ (3,856,920) $ (3,856,920) $ (396,058) $ 3,460,862
125
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, 2018
South Transportation Impact Fees
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 1,016,237 $ 165,787
Licenses, fees & permits$ 850,450 $ 850,450
Investment income - - 3,954 3,954
Total revenues 850,450 850,450 1,020,191 169,741
Expenditures:
Current -
Highways and streets - - 7,809 (7,809)
Capital outlay - - 2,048 (2,048)
Total expenditures - - 9,857 (9,857)
Excess (deficiency) of revenues over
expenditures 850,450 850,450 1,010,334 159,884
Other financing sources (uses):
Transfers out (463,479) (463,479) (254,681) 208,798
Total other financing sources (uses) (463,479) (463,479) (254,681) 208,798
Change in fund balances 386,971 386,971 755,653 368,682
Fund balances (deficits), July 1, 2017-- 3,454,551 3,454,551
Fund balances (deficits), June 30, 2018$ 386,971 $ 386,971 $ 4,210,204 $ 3,823,233
126
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, 2018
Park Impact Fees
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
$ 830 $ 830
Intergovernmental$ - $ -
Licenses, fees & permits 890,795 890,795 1,149,486 258,691
Investment income - - 43,177 43,177
Total revenues 890,795 890,795 1,193,493 302,698
Expenditures:
Current -
Culture and recreation
- 156,751 153,250 3,501
3,335,596 1,141,446
Capital outlay 4,633,793 4,477,042
3,488,846 1,144,947
Total expenditures 4,633,793 4,633,793
Excess (deficiency) of revenues over
expenditures (3,742,998) (3,742,998) (2,295,353) 1,447,645
Other financing sources:
Transfers out - - (488,249) (488,249)
Total other financing sources - - (488,249) (488,249)
Change in fund balances (3,742,998) (3,742,998) (2,783,602) 959,396
Fund balances (deficits), July 1, 2017-- 3,958,325 3,958,325
Fund balances (deficits), June 30, 2018$ (3,742,998) $ (3,742,998) $ 1,174,723 $ 5,405,970
127
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, 2018
Downtown Reinvestment
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Sales tax
$ 223,600$ 223,600230,945$ 7,345
Total revenues 223,600 223,600 230,945 7,345
Expenditures:
Economic and community development
223,600 203,200 - 203,200
Capital outlay
- 370,400 24,280 346,120
Total expenditures 223,600 573,600 24,280 549,320
Excess (deficiency) of revenues over
206,665 556,665
expenditures - (350,000)
Fund balances (deficits), July 1, 2017-- 606,896 (606,896)
Fund balances (deficits), June 30, 2018$ - $ (350,000) $ 813,561 $ (50,231)
128
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - OTHER CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2018
Other Captial Projects
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
Intergovernmental
$ 897,432 $ 381,357
$ 516,075$ 516,075
Licenses, fees & permits
- - 227,054 227,054
Contributions
410,000 410,000 - (410,000)
Investment income
- - 32,400 32,400
Total revenues
926,075 926,075 1,156,886 230,811
Expenditures:
Highways and streets
35,000 35,00016,088 18,912
Culture and recreation
- -708 (708)
Capital outlay
3,310,862 4,258,179
7,569,041 7,569,041
Total expenditures
7,604,041 7,604,041 3,327,658 4,276,383
Excess (deficiency) of revenues over
(6,677,966) (6,677,966) (2,170,772) 4,507,194
expenditures
Other financing sources (uses):
Transfers in
3,000,000 3,000,000 3,129,090 129,090
Transfers out
- - (1,424,543) (1,424,543)
Total other financing sources (uses)
3,000,000 3,000,000 1,704,547 (1,295,453)
Changes in fund balances
(3,677,966) (3,677,966) (466,225) 3,211,741
Fund balances (deficits), July 1, 2017-- 6,182,970 6,182,970
$ 5,716,745 $ 9,394,711
Fund balances (deficits), June 30, 2018$ (3,677,966) $ (3,677,966)
129
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, 2018
Gladden Farms Community Facilities District Capital
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
$ 59,183$ 72
Property tax$ 59,111$ 59,111
Total revenues 59,111 59,111 59,183 72
Expenditures:
Current -
General government548,693548,693 164 548,529
Capital outlay900,000900,000 - 900,000
Debt service -
Bond issuance costs100,000100,000 - 100,000
164 1,548,529
Total expenditures 1,548,693 1,548,693
Excess (deficiency) of revenues over
expenditures (1,489,582) (1,489,582) 59,019 1,548,601
Other financing sources (uses):
Bond proceeds1,000,0001,000,000 - (1,000,000)
Transfers out
- - - -
Total other financing sources (uses) 1,000,000 1,000,000 - (1,000,000)
Change in fund balances (489,582) (489,582) 59,019 548,601
Fund balances (deficits), July 1, 2017-- 548,235 548,235
$ 607,254 $ 1,096,836
Fund balances (deficits), June 30, 2018$ (489,582) $ (489,582)
130
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, 2018
Vanderbilt Farms Capital
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
$ 2,702$ 305
Property tax$ 2,397$ 2,397
Contributions29,83929,839 - (29,839)
Total revenues 32,236 32,236 2,702 (29,534)
Expenditures:
Current -
General government32,19432,194 82 32,112
Total expenditures 32,194 32,194 82 32,112
Excess (deficiency) of revenues over
expenditures 42 42 2,620 2,578
Fund balances (deficits), July 1, 2017-- 54,563 54,563
Fund balances (deficits), June 30, 2018$ 42 $ 42 $ 57,183 $ 57,141
131
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, 2018
Saguaro Springs Capital
Variance -
Positive
Original BudgetFinal BudgetActual(Negative)
Revenues:
$ 088$( 142)
Property tax$ 19,230$ 19,23019,
Contributions384,086384,086- ( 384,086)
Total revenues 403,316 403,316 19, 088 ( 384,228)
Expenditures:
Current -
General government
442,000 442,000 82 441,918
Capital outlay4,000,0004,000,000- 4,000,000
Debt service -
Bond issuance costs450,000450,000 - 450,000
Total expenditures 4,892,000 4,892,000 82 4, 891,918
Excess (deficiency) of revenues over
expenditures (4,488,684) (4,488,684) 19, 006 4, 507,690
Other financing sources (uses):
Bond proceeds4,500,0004,500,000 - (4,500,000)
Total other financing sources (uses) 4,500,000 4,500,000 - ( 4,500,000)
Change in fund balances 11,316 11,316 19, 0067, 690
Fund balances (deficits), July 1, 2017- - 77, 488 77, 488
$ 494$ 85, 178
Fund balances (deficits), June 30, 2018$ 11,316 $ 11,316 96,
132
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.
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.
2017 Bond Debt Service Fund This fund accounts for the accumulation of resources and
payment of principal and interest on the series 2017 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.
133
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2018
2013 Bond 2014 Bond
Debt ServiceDebt Service
ASSETS
Cash and cash equivalents
$ 2,372,063 $ 732,512
Property taxes receivable
- -
Interest receviable
481 -
Total assets
$ 2,372,544 $ 732,512
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
$ - $ -
Total liabilities
- -
Fund balances:
Reserved for:
Restricted 2,372,544 732,512
Total fund balances
2,372,544 732,512
Total liabilities and fund balances
$ 2,372,544 $ 732,512
134
2017 Bond Other Debt Gladden Farms
Debt ServiceServiceDebt ServiceTotals
$ 1,305,850 $ 45,514 $ 391,377 $ 4,847,316
- - 1,710 1,710
- - - 481
$ 1,305,850 $ 45,514 $ 393,087 $ 4,849,507
$ -$ - $ - $ -
- - - -
1,305,850 45,514 393,087 4,849,507
1,305,850 45,514 393,087 4,849,507
$ 1,305,850 $ 45,514 $ 393,087 $ 4,849,507
135
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2018
2013 Bond 2014 Bond
Debt ServiceDebt Service
Revenues:
Property Taxes
$ - $ -
Investment income
627 66
Total revenues
627 66
Expenditures:
Debt service -
Principal retirement
1,615,000 390,000
Interest and fiscal charges
1,416,424 143,908
Total expenditures
3,031,424 533,908
Excess (deficiency) of revenues over
expenditures
(3,030,797) (533,842)
Other financing sources (uses):
Transfers in
3,065,881 802,914
Total other financing sources (uses)
3,065,881 802,914
Change in fund balances
35,084 269,072
Fund balances, beginning of year
2,337,460 463,440
Fund balances, end of year
$ 2,372,544 $ 732,512
136
2017 Bond Debt Other Debt Gladden Farms
ServiceServiceDebt ServiceTotals
$ - $ - $ 491,519 $ 491,519
2 - 801 1,496
2 - 492,320 493,015
- - 210,000 2,215,000
655,602 - 275,863 2,491,797
655,602 - 485,863 4,706,797
(655,600) - 6,457 (4,213,782)
1,012,342 - - 4,881,137
1,012,342 - - 4,881,137
356,742 - 6,457 667,355
949,108 45,514 386,630 4,182,152
$ 1,305,850 $ 45,514 $ 393,087 $ 4,849,507
137
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, 2018
2013 Bond Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$ - $ -
Contributions - - - -
Investment income - - 627 627
Total revenues - - 627 627
Expenditures:
Debt service -
Principal retirement 1,615,000 1,615,000 1,615,000 -
Interest and fiscal charges 1,418,425 1,418,425 1,416,424 2,001
2,001
Total expenditures 3,033,425 3,033,425 3,031,424
Excess (deficiency) of revenues over
expenditures (3,033,425) (3,033,425) (3,030,797) 2,628
Other financing sources (uses):
Transfers in 3,069,439 3,069,439 3,065,881 3,558
Total other financing sources (uses) 3,069,439 3,069,439 3,065,881 3,558
Change in fund balances 36,014 36,014 35,084 (930)
2,337,460 2,337,460
Fund balances (deficits), July 1, 2017 - -
Fund balances (deficits), June 30, 2018$ 36,014 $ 36,014$ 2,372,544 $ 2,336,530
138
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, 2018
2014 Bond Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$- $ -
Contributions - - - -
Investment income- - 66 66
Total revenues - - 66 66
Expenditures:
Debt service -
Principal retirement 390,000 390,000 390, 000 -
Interest and fiscal charges 143,908 143,908 143, 908 -
908 -
Total expenditures 533,908 533,908 533,
Excess (deficiency) of revenues over
expenditures (533,908) (533,908) (533,842) 66
Other financing sources (uses):
Transfers in 531,908 531,908 802, 914 ( 271,006)
Total other financing sources (uses) 531,908 531,908 802, 914 ( 271,006)
Change in fund balances (2,000) (2,000) 269, 072 271, 072
440 463, 440
Fund balances (deficits), July 1, 2017 - - 463,
Fund balances (deficits), June 30, 2018$ (2,000) $ (2,000)$ 732, 512$ 734, 512
139
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2018 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2018
2017 Bond Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ - $ -$ - $ -
Contributions - - - -
Investment income - - 2 2
Total revenues - - 2 2
Expenditures:
Debt service -
Principal retirement - - - -
Interest and fiscal charges 649,602 649,602 655,602 (6,000)
655,602 (6,000)
Total expenditures 649,602 649,602
Excess (deficiency) of revenues over
expenditures (649,602) (649,602) (655,600) (5,998)
Other financing sources (uses):
Transfers in 2,665,564 2,665,564 1,012,342 1,653,222
Total other financing sources (uses) 2,665,564 2,665,564 1,012,342 1,653,222
Change in fund balances 2,015,962 2,015,962 356,742 (1,659,220)
949,108 949,108
Fund balances (deficits), July 1, 2017 - -
Fund balances (deficits), June 30, 2018$ 2,015,962 $ 2,015,962$ 1,305,850 $ (710,112)
140
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, 2018
Gladden Farms Debt Service
Variance -
Original Positive
BudgetFinal BudgetActual(Negative)
Revenues:
Property Taxes$ 490,934 $ 490,934$ 491,519 $ 585
Contributions 10,229 10,229 - (10,229)
Investment income - - 801 801
Total revenues 501,163 501,163 492,320 (8,843)
Expenditures:
Debt service -
Principal retirement 210,000 210,000 210,000 -
Interest and fiscal charges 291,163 291,163 275,863 15,300
485,863 15,300
Total expenditures 501,163 501,163
Excess (deficiency) of revenues over
expenditures - - 6,457 6,457
Other financing sources (uses):
Transfers in - - - -
Total other financing sources (uses) - - - -
Change in fund balances - - 6,457 6,457
386,630 386,630
Fund balances (deficits), July 1, 2017 - -
Fund balances (deficits), June 30, 2018$ - $ - $ 393,087 $ 393,087
141
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142
STATISTICAL INFORMATION
143
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144
TOWN OF MARANA, ARIZONA
STATISTICAL SECTION
JUNE 30, 2018
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 Years1146
Changes in Net Position - Last Ten Fiscal Years2148
Governmental Activities Tax Revenues by Source - Last Ten Years3152
Fund Balances of Governmental Funds - Last Ten Fiscal Years4153
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years5154
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 - 6158
Last Ten Years
Property Tax Rates - Direct and Overlapping Governments - Last Ten Years7160
Principal Property Taxpayers - Current Year and Nine Years Ago8162
Property Tax Levies and Collections - Last Ten Fiscal Years9163
Tangerine Farms Road Improvement District Active Assessments10164
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 Years11188
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years12189
Direct and Overlapping Governmental Activities Debt13190
Legal Debt Margin Information14191
Pledged-Revenue Coverage - Last Ten Fiscal Years15192
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 Years16193
Principal Employers - Current Year and Nine Years Ago17194
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 Years18195
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 Years19196
Excise Tax Collections - Last Ten Years20198
Principal Retail and Contracting Sales Taxpayers - Current Year and Nine Years Ago21200
Single Family Residential Permits Issued - Last Ten Years22201
Capital Assets Statistics by Function 23202
145
TOWN OF MARANA
Schedule 1
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
2009201020112012
Governmental activities
Net investment in capital assets$ 174,286 $ 193,721$ 196,326$ 194,287
Restricted 45,727 25,459 28,136 29,004
Unrestricted 39,916 39,929 38,889 39,911
Total governmental activities net position 259,929 259,109 263,351 263,202
Business-type activities
Net investment in capital assets 41,643 44,310 42,148 112,528
Restricted - - 73 146
(2,683) (17,519)
Unrestricted (4,714) (5,813)
Total business-type activities net position 36,929 38,497 39,538 95,155
Primary government
Net investment in capital assets 215,929 238,031 238,474 306,815
Restricted 45,727 25,459 28,209 29,150
Unrestricted 35,202 34,116 36,206 22,392
Total primary government net position$ 296,858 $ 297,606$ 302,889$ 358,357
Source: Statement of Net Position
146
Schedule 1
201320142015201620172018
(as restated)
$ 184,949$ 189,171$ 190,297$ 193,845$ 210,137$ 236,208
31,163 17,242
62,437 58,820 36,418 43,127
1,384 (283) (4,283) (6,492) 5,119 16,272
248,770 247,708 222,432 230,480 246,419 269,722
111,045 109,111 109,649 112,357 101,524 95,777
219 293 365 365 365 365
(2,677) (208) 984 1,313 16,319 (4,285)
108,587 109,196 110,998 114,035 118,208 91,857
295,994 298,282 299,946 306,202 311,661 331,985
62,656 59,113 36,783 43,492 31,528 17,607
(1,293) (491) (3,299) (5,179) 21,439 11,987
$ 357,357$ 356,904$ 333,430$ 344,515$ 364,628$ 361,579
147
TOWN OF MARANA
Schedule 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
2009201020112012
Expenses
Governmental activities:
General government$ 9,565$ 14,638$ 10,643$ 10,833
Development & planning services 1,304 - - -
Town Attorney * 917 - - -
Public safety 12,255 10,675 9,044 10,206
Magistrate court * 946 - - -
Highways and streets 6,734 14,986 15,425 17,233
Health & Welfare 112 102 86 23
Culture & recreation 4,818 3,943 3,335 2,173
Economic & community development 12,751 4,835 4,596 4,258
Interest on long-term debt 2,530 865 5,173 4,721
Total governmental activities expenses 51,932 50,044 48,302 49,447
Business-type activities:
Airport 2,546 3,803 3,392 1,112
WastewaterN/AN/AN/A 3,831
Water 1,178 1,136 1,273 3,074
Total business-type activities expenses 3,724 4,939 4,665 8,017
Total primary government expenses $ 55,656$ 54,983$ 52,967$ 57,464
Program Revenues
Governmental activities:
Charges for services:
General government $ 918$ 939$ 830$ 881
Culture and recreation315 211 140 134
Economic & community development 1,740 1,974 2,256 2,513
Operating grants and contributions 3,537 4,221 3,555 3,202
Capital grants and contributions 40,725 11,618 14,963 9,017
Total government activities program revenues 47,23518,96321,744 15,747
Business-type activities:
Charges for services:
Airport 227 235 238 233
WastewaterN/AN/AN/A 241
Water 2,718 3,035 3,103 3,281
Capital grants and contributions 5,269 3,489 2,669 60,207
Total business-type activity program revenues 8,214 6,759 6,010 63,962
Total primary government program revenues 55,449 25,722 27,754 79,709
Net (expense)/revenue
Governmental activities (4,697) (31,081) (26,558) (33,700)
Business-type activities 4,490 1,820 1,345 55,945
Total primary government net expense$ (207)$ (29,261) $ (25,213)$ 22,245
148
Schedule 2
201320142015201620172018
$ 9,532$ 10,662$ 14,707 $ 17,531 $ 19,393 $ 18,492
- - - - - -
- - - - - -
16,114
11,777 12,134 14,324 14,423 16,736
- - - ---
18,327 19,053 18,522 22,659 40,172 27,893
23 23 - - 278 236
5,147
3,831 3,131 4,433 3,422 6,006
4,123 4,691 4,796 4,779 4,902 4,328
4,312 4,543 4,106 3,962 2,335 3,077
51,925 54,237 60,888 66,776 89,822 75,287
1,179 1,197 1,289 1,829 1,772 1,816
3,662 3,983 4,598
2,599 2,756 3,431
3,779 5,244 4,150 4,405 5,368 5,979
7,557 9,197 8,870 9,896 11,123 12,393
$ 59,482$ 63,434$ 69,758 $ 76,672 $ 100,945$ 87,680
$ 975$ 941$ 4,490$ 4,787$ 4,909$ 5,073
216 200 305 265 287 324
4,027 4,355 4,992
3,906 3,386 4,585
3,747 4,442 4,360 4,507 4,619 4,665
17,157 44,371 25,856
12,373 10,268 11,281
21,21719,23725,02130,743 58,541 40,910
239 248 239 247 251 294
730 834 933 1,016 1,065 1,502
3,455 3,766 4,146 4,243 5,064 5,609
1,958 2,534 4,015 5,214 5,941 9,891
6,382 7,382 9,333 10,720 12,321 4,665
27,599 26,619 34,354 41,463 70,862 45,575
(33,699) (35,000) (35,867) (36,033) (31,281) (34,376)
55,944 (1,815) 463 824 1,198 4,902
$ 22,245$ (36,815)$ (35,404)$ (35,209)$ (30,083)$ (29,474)
149
TOWN OF MARANA
Schedule 2
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
2009201020112012
General Revenues and Other Changes in
Net Position
Governmental activities:
General revenues
City sales taxes$ 22,404$ 21,662$ 22,948$ 24,539
Property taxes 691 623 584 506
Franchise fees 315 313 322 333
State shared revenues 7,221 6,462 5,719 6,943
Investment income (loss) 595 135 105 97
Miscellaneous 1,227 774 814 803
Gain on sale of assets - - - -
Transfers (8) 291 309 329
Total governmental activities 32,445 30,260 30,801 33,550
Business-type activities:
General revenues
1 1
Investment income 8 1
Miscellaneous 26 38 4 1
(309) (329)
Transfers 8 (291)
Special item - - - -
Total business-type activities 42 (252) (304) (327)
Total primary government32,48730,00830,497 33,223
Change in Net Position
Governmental activities 27,748 (821) 4,243 (150)
Business-type activities4,5321,5681,04155,618
Total primary government$ 32,280$ 747$ 5,284$ 55,468
* In prior fiscal years, 2003 through 2009, 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 General Accounting and Financial Reporting standards.
Source: Statement of Activities
150
Schedule 2
201320142015201620172018
$ 24,768$ 26,226$ 28,059 $ 35,442 $ 37,500 $ 41,689
553
447 421 442 482 509
349 377 401 447 488 507
7,714 8,273 8,820 9,039 10,619 11,506
152 171 149 173 238 663
885
737 854 813 676 744
36 - 116 - - -
(15,912) (2,384) (404) (2,177) (2,878) 1,875
18,291 33,938 38,396 44,082 47,220 57,678
16 43 187
2 1 9
19 39 19 19 54 30
15,911 2,384 404 2,177 2,878 (1,875)
(1,326) - - - - -
14,606 2,424 432 2,212 2,975 (1,658)
32,89736,36238,82846,294 50,195 56,020
8,049 15,939 23,302
(15,408) (1,062) 2,529
70,550 609 895 3,036 4,173 3,244
$ 55,142$ (453)$ 3,424$ 11,085 $ 20,112 $ 26,546
151
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
2018$ 41,689$ 3,316$ 45,005
2017 37,500 3,099 40,599
2016 35,442 2,623 38,065
2015 28,059 2,484 30,458
2014 25,958 2,286 28,244
26,875
2013 24,618 2,257
2012 24,300 2,061 26,361
2011 22,800 1,869 24,669
2010 21,578 1,806 23,384
2009 22,718 1,936 24,654
Source: Statement of Revenues
152
Schedule 4
TOWN OF MARANA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
(Amounts expressed in thousands)
200920102011*20122013
General Fund
Reserved $ 185$ 313$ -$ -$ -
Unreserved 14,299 14,779 - - -
Nonspendable - - 229 293 2,803
Unassigned - - 16,149 18,004 18,115
Total general fund 14,484 15,092 16,378 18,297 20,918
All other governmental funds
Reserved $ 7,221$ 7,099$ -$ -$ -
Unreserved, reported in:
Major governmental funds 23,762 6,341 - - -
- - -
Special revenue funds 2,561 4,844
Capital revenue funds 4,648 7,174 - - -
-
Debt service funds - - - -
Nonspendable - - - - -
Restricted - - 28,137 29,821 47,616
Unassigned - - - (816) (444)
Total all other governmental funds$ 38,192$ 25,458$ 28,137$ 29,005$ 47,172
$ 47,302$ 68,090
Total fund balance of governmental funds$ 52,676$ 40,550$ 44,515
20142015201620172018
General Fund
Reserved $ -$ -$ -$ -$ -
Unreserved - - - - -
Nonspendable 2,540 2,282 2,418 2,367 4,853
Unassigned 21,123 22,309 20,425 22,640 24,735
Total general fund 23,663 24,591 22,843 25,007 29,588
All other governmental funds
Reserved $ -$ -$ -$ -$ -
Unreserved, reported in: -
Major governmental funds - - - - -
Special revenue funds - - - - -
Capital revenue funds - - - - -
Debt service funds - - - - -
Nonspendable 33 - 3 1 7,514
Restricted 40,774 40,771 48,486 49,960 42,589
Unassigned (472) (863) (525) (1,908) 22,388
Total all other governmental funds$ 40,335$ 39,908$ 47,964$ 48,053$ 72,491
Total fund balance of governmental funds$ 63,998$ 64,499$ 70,807$ 73,060$ 1 02,079
*GASB Statement No. 54 implemented in fiscal year 2011, changed the way fund balances are classified.
Source: Governmental Fund Statements
153
TOWN OF MARANA
Schedule 5
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
(Amounts expressed in thousands)
Fiscal Year
2009201020112012
Revenues
Sales taxes$ 22,404$ 21,662$ 22,948$ 24,539
Property taxes 692 622 584 506
Intergovernmental revenues 21,607 16,331 17,707 14,960
Licenses, fees and permits 2,521 3,681 4,361 4,906
Fines, forfeitures and penalties 869 879 730 752
Charges for services 706 621 430 456
Lease Income 543 555 647 92
Special assessments 2,136 2,352 2,239 2,302
3,690 537
Contributions 658 381
System development fees - - - -
105
Investment earnings 595 135 97
Miscellaneous 286 820 614 636
54,055 49,783
Total revenues 53,017 48,039
Expenditures
General government 8,947 9,080 9,661 8,481
9,334 10,590
Public safety 11,204 10,164
Highways and streets 3,693 2,854 3,043 3,657
59 -
Health and welfare 113 75
Economic and community development 4,405 4,654 4,520 4,259
2,552 2,604
Culture and recreation 3,665 3,309
Town attorney 917 - - -
Magistrate Court 946 - - -
Community development370---
Capital outlay 35,888 29,420 13,800 7,040
Debt service
Principal 2,535 3,191 3,490 6,059
Interest 2,313 4,931 4,832 4,635
Other charges 628 109 -
Total expenditures 75,624 67,678 51,400 47,325
Excess of revenues
over (under) expenditures (22,607) (19,639) 2,655 2,458
154
Schedule 5
201320142015201620172018
$ 24,768$ 26,226$ 28,058$ 35,442$ 37,500$ 41,689
497 424 447 489 521 572
18,000 12,732 14,927 20,537 43,261 30,919
8,586 6,549 7,048 6,243 7,078 8,617
728 750
871 831 889 750
379 509 692 500 563 684
105 99 96 90 113 136
2,337 2,176 2,050 2,129 2,340 989
1,216 214 87
589 1,098 583
- -- - - -
238 663
152 171 149 173
804 927 853 376 460 512
57,088 51,742 55,792 67,945 93,016 85,618
7,860 8,953 9,652 12,017 13,347 12,949
11,952 13,886 14,068 14,477 14,774
12,067
4,026 4,214 5,441 5,796 6,037 4,893
-- - 365 229
-
4,479 4,508 4,351 4,146 4,642 4,452
4,903
2,859 3,195 3,598 3,710 4,266
- -- - - -
- -- - - -
------
3,700 4,453 9,885 11,840 34,275 40,960
2,260
4,177 10,338 3,412 3,992 5,083 2,745
4,4084,5224,4914,2123,882-
521 97 -- 1,023 -
44,097 52,232 54,716 59,781 87,397 88,165
12,991 (490) 1,076 8,164 5,619 (2,547)
155
TOWN OF MARANA
Schedule 5
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
(Amounts expressed in thousands)
Fiscal Year
2009201020112012
Other financing sources (uses)
Proceeds from sale of capital assets - - - -
Bonds issued 39,790 - 1,000 -
p p
Premium on bonds issued 443 - - -
Discount on bonds issued - - - -
Payments to refunded bond escrow agent - - - -
Residual equity transfer out - - - -
Total other financing sources (uses) 40,224 291 1,309 329
Net change in fund balance $ 20,585$ 2,946$ 3,767$ 13,320
Debt service as a percentage of
noncapital expenditures13.9%27.0%27.5%26.5%
Source: Governmental Fund Statements
156
Schedule 5
201320142015201620172018
45 46
57 - - 321
34,780 6,493 - - 42,065 -
3,031 - - - 4,089 -
- - -
(46,865)
(14,160) (14,160) - -
7,797 (10,052) (575) (1,856) (3,366) 1,921
$ 7,307$ (8,976)$ (575)$ 6,308$ 2,253$ (626)
21.5%31.3%18.1%16.5%12.6%5.2%
157
TOWN OF MARANA
Schedule 6
ASSESSED VALUE AND ESTIMATED ACTUAL OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Assessed
Fiscal Total Estimated Value as a
Year Less: Tax Taxable Total Actual Percentage
Ended Fiscal Residential Commercial Exempt Real Assessed Direct Taxable of Actual
June 30YearProperty Property PropertyValueTax Rate ValueValue
20192018/19$ 22,757$ 2,289$ 2,662$ 22,385 2.8000$233,8709.6%
20182017/1820,7191821,26419,637 2.8000201,0929.8%
20172016/1719,250421,20218,091 2.8000185,4839.8%
20162015/1618,27451,22817,051 2.8000173,9389.8%
20152014/1517,07841,35915,724 2.8000160,7569.8%
2.8000 150,1829.9%
20142013/14 16,176 5 1,354 14,826
20132012/13 17,851 4 1,343 16,512 2.8000 165,51710.0%
20122011/12 18,920 10 1,339 17,591 2.8000 176,25610.0%
20112010/11 21,859 7 1,25120,6162.8000201,03910.3%
2.8000
20102009/10 23,438 9 1,190 22,257 215,98910.3%
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) The valuations shown are consistent with Gladden Farms CFD Property Tax Levy as adopted by the board of
superviosrs on the third Monday in August of each year.
Source: Pima County Assessor's Office
158
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159
TOWN OF MARANA
Schedule 7
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Pima County County
Fiscal Tax State of
(General Road TaxLibrary
YearYearArizona
Fund)District
2018 - -
2018/194.06960.5153
2017 - 0.2500
4.20960.5053
2017/18
2016 - -
2016/174.28960.5153
2015 - -
4.38770.5153
2015/16
2014 - -
2014/154.27790.4353
2013 - -
3.66650.3753
2013/14
2012 - -
2012/133.41780.3460
2011 - -
3.41780.3460
2011/12
2010 - -
2010/113.31330.3100
2009 - -
3.31330.2643
2009/10
Central
Fire Total
Arizona
Fiscal Tax Town of
District Water Overlapping
YearYearMarana
AssistanceConservation Rates
District
20180.0441 0.1400 17.6010 -
2018/19
20170.0459 0.1400 17.6822 -
2017/18
20160.140017.6018-
0.0468
2016/17
-
2015 0.1400 17.3338
2015/160.0467
20140.140017.1007-
0.0472
2014/15
2013 0.1400 16.6268 -
2013/140.0456
2012 0.1000 15.2648 -
0.0447
2012/13
-
2011 0.1000 15.0224
2011/120.0418
20100.100014.5833-
0.0430
2010/11
2009 0.1000 14.2903 -
2009/100.0406
Notes:
1) The Flowing Wells School District (a school district of approximately
13 miles) intersects approximately one mile of the Town's boundaries.
Marana School District covers the remaining approximate 69 miles of
the Town's boundaries.
2) The Town intersects several fire districts. Prior to fiscal year 1999,
the Town contracted for fire service for the Town until fire districts
could be established.
3) The Pima County Flood Control District tax levy applies only to real
property.
4) Primary and secondary tax rates are assessed per $100 of the net
assessed value and are set by the County Board of Supervisors
or governing board of taxing jurisdiction.
Source: Pima County
160
Schedule 7
State
Flowing
Flood Community
Education
Debt Wells Northwest Fire
Control College
Equalization
ServiceSchool District
DistrictDistrict
Assistance
District
Tax
0.69000.33350.47416.88601.39833.0501
0.70000.31350.48756.75391.3893.0734
0.70000.33350.50106.89711.37332.9920
0.70000.31350.50546.62921.36892.9138
0.70000.30350.50896.61351.33442.9272
0.78000.26350.51236.71461.29333.0213
0.78000.26350.47175.97781.17412.8339
0.78000.26350.42595.96891.10942.7109
0.75000.26350.35646.04071.08482.4646
0.71000.26350.33066.12391.07702.2077
Gladden Vanderbilt Saguaro
Total Direct
Marana Total
Farms Farms Springs
&
School Community Community Direct
Community
Overlapping
DistrictFacilities Facilities Rates
Facilities
Rates
DistrictDistrictDistrict
6.0840 2.4400 0.3000 2.800011.624029.2250
6.2334 2.8000 0.3000 0.30009.633427.3156
2.80000.3000 0.30009.787127.3889
6.3871
2.8000 0.3000 0.30009.737027.0708
6.3370
2.80000.3000 0.30009.628826.7295
6.2288
2.8000 0.3000 0.30009.408526.0353
6.0085
2.8000 0.3000 0.30008.986324.2511
5.5863
2.8000 0.3000 0.30008.604723.6271
5.2047
2.80000.3000 0.30008.099522.6828
4.6995
2.8000 0.3000 0.30008.328622.6189
4.9286
161
Schedule 8
TOWN OF MARANA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(Amounts expressed in thousands)
20182009
Percentage Percentage
of Total of Total
taxable taxable
Full Cash Assessed Assessed
Full Cash
ValueValue ValueValue
Rank Rank
Taxpayer
--
UNISOURCE ENERGY CORPORATION 11,622125.7% -
HSL COTTONWOOD RC HOTEL LLC 6,127213.5% - --
--
TUCSON PREMIUM OUTLETS LLC 5,804312.8% -
FRYS FOOD STORE OF ARIZONA 4,00948.9% - --
VERIZON WIRELESS 3,30757.3% - --
TRICO ELECTRIC COOPERATIVE INC 3,05066.7% - --
AZPAV WEST LLC 3,02276.7% - --
WALMART STORES INCORPORATED 2,88186.4% - --
KREBS FLSMIDTH INC 2,77296.1% - --
UNION PACIFIC RAILROAD 2,657105.9% - --
Fidelity National Title TR 30212 2,300152.2%
Fidelity National Title TR 60360 34027.7%
Fidelity National Title TR 60338 32837.4%
Smith Food & Drug Centers Inc 32447.4%
Gladden 25 LLC 28256.4%
Weingarten Newquist LLC 22465.1%
Freedber Barry & Freedbrg Bella 20174.6%
Miramonte Gladden Farms LLC 17183.9%
OS Realty LLC 13493.0%
Title Security Agency of AZ TR 891103102.3%
Totals $ 45,251$ 4,407
Notes:
1) The Town of Marana does not impose a property tax.
Source: Pima County Assessor's Office - IS Dept
(Information System's Coordinator)
162
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
2018$ 571 56899.47% 569 99.65%
2017521 51598.85% 520 99.81%
2016489 48599.18% 438 99.80%
2015440 43699.09% 438 99.55%
2014415 41199.04% 412 99.28%
462 45698.65% 456 98.65%
2013
2012 492 48999.39% 491 99.80%
2011 623 56397.57% 563 97.57%
100.00%
2010 623 623100.00% 623
2009 688 68198.98% 687 99.85%
Notes:
1) The Town does not impose a property tax; levies and collections presented above reflect assessments
directly related to the Gladden Farms Community Facilities District I and II, Vanderbilt, and Saguaro
Springs.
Source: Pima County Treasurer's Office
163
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Tangerine/I-10,
Commercial
242-C1215-01-003P$1,135,478.05$681,092.81$12,587.001,015,384
LLC
Tangerine/I-10,
Commercial
242-A215-01-003R910,428.35546,102.018,440.00814,136
LLC
INTERNATION
AL CENTER
Commercial
242-B3-1215-01-003S87,681.7052,594.143,543,600.0078,565
TUCSON LLC
& SECUNDUS
Tangerine/I-10,
Commercial
242-B1/2215-01-003T266,454.95159,827.162,954.00238,273
LLC
Tangerine/I-10,
Commercial
242-B4/5215-01-003U620,104.49371,957.146,874.00554,519
LLC
Tangerine/I-10,
Commercial
242-B1/2/4/5215-01-003V1,240,696.11744,205.6013,759.001,109,473
LLC
INTERNATION
AL CENTER
82,323.3849,379.55296,239.0073,738Commercial
242-B3-2215-01-003W
TUCSON LLC
& SECUNDUS
Tangerine/I-10,
Commercial
242-D1216-12-025082,810.5049,671.7929,546.0073,864
LLC
Tangerine/I-10,
Commercial
242-D2216-12-0260$430,127.46$258,002.71$153,923.00384,808
LLC
Tangerine/I-10,
Commercial
242-D3216-12-0270608,900.71365,236.64217,717.00544,292
LLC
Tangerine/I-10,
Commercial
242-D4216-12-030029,227.2317,531.3810,409.0026,023
LLC
Tangerine/I-10,
Commercial
242-C2216-12-0330197,770.95118,628.378,120.00176,854
LLC
164
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
TOWN OF
Park
237217-53-040A119,965.9671,959.101,242,000.001,019,740
MARANA
KB Home
Tucson Inc. /
Residential
235217-53-8060504,741.16302,758.52419,263.00-
Attn: John W.
Ward
KB Home
Tucson Inc. /
Residential
236217-53-8070319,456.43191,619.33315,775.00-
Attn: John W.
Ward
WALGREEN
CO. / Real
Commercial
238/239-1217-53-808047,073.1228,235.83397,520.0079,504
Estate Property
Tax
GLADDEN 25 Residential
LLC / The and
238/239-2217-53-809034,021.6220,407.15114,954.0057,477
Commercial
Aspen Group
GLADDEN 25 Residential
238/239-3217-53-8100LLC / The 36,317.2421,784.14122,704.0061,352and
Aspen GroupCommercial
GLADDEN 25 Residential
238/239-4217-53-8110LLC / The 34,975.9820,979.61118,098.0059,049and
Aspen GroupCommercial
GLADDEN 25 Residential
238/239-5217-53-8120LLC / The 31,674.4118,999.25107,006.0053,503and
Aspen GroupCommercial
GLADDEN 25 Residential
238/239-6217-53-8130LLC / The 33,583.1320,144.14113,434.0056,717and
Aspen GroupCommercial
GLADDEN 25 Residential
238/239-7217-53-8140LLC / The 25,767.7015,456.2287,048.0043,524and
Aspen GroupCommercial
GLADDEN 25 Residential
238/239-8217-53-8150LLC / The 59,118.6935,461.12169,764.0099,861and
Aspen GroupCommercial
GLADDEN 25 Residential
and
238/239-9217-53-8160LLC / The 54,733.7932,830.94157,140.0092,435
Aspen GroupCommercial
165
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
GLADDEN 25 Residential
LLC / The and
238/239-10217-53-817051,638.5630,974.33148,232.0087,195
Aspen GroupCommercial
Residential
Gladden Phase
II, LLC / Attn: 511,130.62306,591.1113,295.001,072,447and
230-1217-54-0110
Jennifer BarlowCommercial
Gladden Phase Residential
230-2217-54-0120II, LLC / Attn: 648,590.84389,043.7717,744.001,431,382and
Jennifer BarlowCommercial
Gladden Phase Residential
230-3217-54-0130II, LLC / Attn: 550,694.98330,322.9815,066.001,215,324and
Jennifer BarlowCommercial
Northwest
Medical Center
230-4217-54-0140Hospital
1,140,957.82684,379.9131,212.002,517,768
/ Attn: Chief
Financial
Residential
Gladden Phase
II, LLC / Attn: 766,695.93459,886.66137,732.001,930,109and
230-5217-54-0150
Jennifer BarlowCommercial
Gladden Phase Residential
230-6217-54-0160II, LLC / Attn: 626,135.01375,574.1211,961.00964,854and
Jennifer BarlowCommercial
Gladden Phase Residential
230-7217-54-0180II, LLC / Attn: 715,582.86429,227.5514,742.001,189,188and
Jennifer BarlowCommercial
Gladden Phase Residential
230-8217-54-0190II, LLC / Attn: 597,781.67358,566.9416,351.001,318,997and
Jennifer BarlowCommercial
Gladden Phase Residential
230-9217-54-0200II, LLC / Attn: 530,298.02318,088.2816,492.001,330,522and
Jennifer BarlowCommercial
Gladden Phase Residential
230-10217-54-0210II, LLC / Attn: 690,026.33413,898.0013,970.001,126,897and
Jennifer BarlowCommercial
Gladden Phase Residential
230-11217-54-0220II, LLC / Attn: 1,181,989.55708,991.9521,902.001,766,794and
Jennifer BarlowCommercial
166
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Gladden Phase Residential
II, LLC / Attn: and
230-12217-54-0230659,991.24395,882.0718,052.001,456,211
Jennifer BarlowCommercial
Residential
Gladden Phase
II, LLC / Attn: 779,474.19467,551.4414,602.001,177,862and
230-14217-54-0250
Jennifer BarlowCommercial
Gladden Phase Residential
230-15217-54-0260II, LLC / Attn: 632,524.14379,406.5014,546.00955,706and
Jennifer BarlowCommercial
Gladden Phase Residential
230-16217-54-0270II, LLC / Attn: 894,478.58536,534.4517,809.001,436,609and
Jennifer BarlowCommercial
Gladden Phase Residential
442217-54-3440II, LLC / Attn: 342,327.13342,327.1315,612.001,252,529and
Jennifer BarlowCommercial
Northwest Fire
Residential
District / Attn:
443217-54-028Band
32,681.5232,681.521,490.00119,680
Phyllis
Commercial
Shumacher
Lennar Homes
319217-54-0290/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
320217-54-0300/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
321217-54-0310/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
322217-54-0320/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
323217-54-0330/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
324217-54-0340/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
167
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
325217-54-03503,770.073,770.07503.00-
Lane
Lennar Homes
/ Attn: Karla 3,770.073,770.07503.00-Residential
326217-54-0360
Lane
Lennar Homes
327217-54-0370/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
328217-54-0380/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
329217-54-0390/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
330217-54-0400/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
331217-54-0410/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
332217-54-0420/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
333217-54-0430/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
334217-54-0440/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
335217-54-0450/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
336217-54-0460/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
168
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
337217-54-04703,770.073,770.07503.00-
Lane
Lennar Homes
/ Attn: Karla 3,770.073,770.07503.00-Residential
338217-54-0480
Lane
Lennar Homes
339217-54-0490/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
340217-54-0500/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
341217-54-0510/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
342217-54-0520/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
343217-54-0530/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
344217-54-0540/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Richmond
American
345217-54-05503,770.073,770.07503.00-Residential
Homes /
M.D.C.
Richmond
American
346217-54-05603,770.073,770.07503.00-Residential
Homes /
M.D.C.
Richmond
American
347217-54-05703,770.073,770.07503.00-Residential
Homes /
M.D.C.
Richmond
American
348217-54-05803,770.073,770.07503.00-Residential
Homes /
M.D.C.
169
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Richmond
American
Residential
349217-54-05903,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
Residential
350217-54-06003,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
Residential
351217-54-06103,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
Residential
352217-54-06203,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
Residential
353217-54-06303,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
Residential
354217-54-06403,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
3,770.073,770.07503.00-Residential
355217-54-0650
Homes /
M.D.C.
Richmond
American
Residential
356217-54-06603,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
3,770.073,770.07503.00-Residential
357217-54-0670
Homes /
M.D.C.
Richmond
American
358217-54-06803,770.073,770.07503.00-Residential
Homes /
M.D.C.
Lennar Homes
359217-54-0690/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
360217-54-0700/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
170
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
361217-54-07103,770.073,770.07503.00-
Lane
Lennar Homes
/ Attn: Karla 3,770.073,770.07503.00-Residential
362217-54-0720
Lane
Lennar Homes
363217-54-0730/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
364217-54-0740/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
365217-54-0750/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
366217-54-0760/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
367217-54-0770/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
368217-54-0780/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
369217-54-0790/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
370217-54-0800/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
371217-54-0810/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
372217-54-0820/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
171
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
373217-54-08303,770.073,770.07503.00-
Lane
Lennar Homes
/ Attn: Karla 3,770.073,770.07503.00-Residential
374217-54-0840
Lane
Lennar Homes
375217-54-0850/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
376217-54-0860/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
377217-54-0870/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
378217-54-0880/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
379217-54-0890/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
380217-54-0900/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
381217-54-0910/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
382217-54-0920/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
383217-54-0930/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
384217-54-0940/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
172
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
385217-54-09503,770.073,770.07503.00-
Lane
Lennar Homes
/ Attn: Karla 3,770.073,770.07503.00-Residential
386217-54-0960
Lane
Lennar Homes
387217-54-0970/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Lennar Homes
388217-54-0980/ Attn: Karla 3,770.073,770.07503.00-Residential
Lane
Richmond
American
389217-54-0990Residential
3,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
Residential
390217-54-10003,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
3,770.073,770.07503.00-Residential
391217-54-1010
Homes /
M.D.C.
Richmond
American
Residential
392217-54-10203,770.073,770.07503.00-
Homes /
M.D.C.
Richmond
American
3,770.073,770.07503.00-Residential
393217-54-1030
Homes /
M.D.C.
Richmond
American
394217-54-10403,770.073,770.07503.00-Residential
Homes /
M.D.C.
Richmond
American
395217-54-10503,770.073,770.07503.00-Residential
Homes /
M.D.C.
Richmond
American
396217-54-10603,770.083,770.08503.00-Residential
Homes /
M.D.C.
173
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
397217-54-10703,770.083,770.08503.00-
Lane
Lennar Homes
/ Attn: Karla 3,770.083,770.08503.00-Residential
398217-54-1080
Lane
Lennar Homes
399217-54-1090/ Attn: Karla 3,770.083,770.08503.00-Residential
Lane
Richmond
American
400217-54-1100Residential
3,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
401217-54-11103,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
402217-54-11203,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
403217-54-1130
Homes /
M.D.C.
Richmond
American
Residential
404217-54-11403,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
405217-54-1150
Homes /
M.D.C.
Richmond
American
406217-54-11603,770.083,770.08503.00-Residential
Homes /
M.D.C.
Richmond
American
407217-54-11703,770.083,770.08503.00-Residential
Homes /
M.D.C.
Richmond
American
408217-54-11803,770.083,770.08503.00-Residential
Homes /
M.D.C.
174
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Richmond
American
Residential
409217-54-11903,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
410217-54-12003,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
411217-54-12103,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
412217-54-12203,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
413217-54-12303,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
414217-54-12403,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
415217-54-1250
Homes /
M.D.C.
Richmond
American
Residential
416217-54-12603,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
417217-54-1270
Homes /
M.D.C.
Richmond
American
418217-54-12803,770.083,770.08503.00-Residential
Homes /
M.D.C.
Richmond
American
419217-54-12903,770.083,770.08503.00-Residential
Homes /
M.D.C.
Richmond
American
420217-54-13003,770.083,770.08503.00-Residential
Homes /
M.D.C.
175
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Richmond
American
Residential
421217-54-13103,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
422217-54-13203,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
423217-54-13303,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
424217-54-13403,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
425217-54-13503,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
426217-54-13603,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
427217-54-2190
Homes /
M.D.C.
Richmond
American
Residential
428217-54-22003,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
429217-54-2210
Homes /
M.D.C.
Richmond
American
430217-54-22203,770.083,770.08503.00-Residential
Homes /
M.D.C.
Richmond
American
431217-54-22303,770.083,770.08503.00-Residential
Homes /
M.D.C.
Richmond
American
432217-54-22403,770.083,770.08503.00-Residential
Homes /
M.D.C.
176
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Richmond
American
Residential
433217-54-22503,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
434217-54-22603,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
435217-54-22703,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
436217-54-22803,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
437217-54-22903,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
Residential
438217-54-23003,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
439217-54-2310
Homes /
M.D.C.
Richmond
American
Residential
440217-54-23203,770.083,770.08503.00-
Homes /
M.D.C.
Richmond
American
3,770.083,770.08503.00-Residential
441217-54-2330
Homes /
M.D.C.
WESTCOR
MARANA LLC /
231217-55-012A2,645,066.471,586,588.3332,195.002,597,047Commercial
Barbara
Hailtern
KB Home
Tucson Inc. /
162217-56-30706,389.133,832.39173,392.00-Residential
Attn: John W.
Ward
KB Home
Tucson Inc. /
6,389.133,832.39195,151.00-Residential
163217-56-3080
Attn: John W.
Ward
177
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
KB Home
Tucson Inc. /
Residential
164217-56-30906,389.133,832.39166,369.00-
Attn: John W.
Ward
KB Home
Tucson Inc. /
Residential
165217-56-31006,389.133,832.3927,329.00-
Attn: John W.
Ward
KB Home
Tucson Inc. /
Residential
166217-56-31106,389.133,832.3927,329.00-
Attn: John W.
Ward
KB Home
Tucson Inc. /
Residential
167217-56-31206,389.133,832.3927,329.00-
Attn: John W.
Ward
MERITAGE
HOMES OF
Residential
248217-56-66003,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
249217-56-66103,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
3,781.963,781.968,001.00-Residential
250217-56-6620
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
251217-56-66303,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
3,781.963,781.968,001.00-Residential
252217-56-6640
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
253217-56-66503,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
254217-56-66603,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
255217-56-66703,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
178
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
MERITAGE
HOMES OF
Residential
256217-56-66803,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
257217-56-66903,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
258217-56-67003,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
259217-56-67103,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
260217-56-67203,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
261217-56-67303,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
3,781.963,781.968,001.00-Residential
262217-56-6740
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
263217-56-67503,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
3,781.963,781.968,001.00-Residential
264217-56-6760
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
265217-56-67703,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
266217-56-67803,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
267217-56-67903,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
179
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
MERITAGE
HOMES OF
Residential
268217-56-68003,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
269217-56-68103,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
270217-56-68203,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
271217-56-68303,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
272217-56-68403,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
273217-56-68503,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
3,781.963,781.968,001.00-Residential
284217-56-6960
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
285217-56-69703,781.963,781.968,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
3,781.963,781.968,001.00-Residential
286217-56-6980
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
287217-56-69903,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
288217-56-70003,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
289217-56-70103,781.963,781.968,001.00-Residential
ARIZONA /
Attn: Becky
180
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
MERITAGE
HOMES OF
Residential
290217-56-70203,781.973,781.978,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
291217-56-70303,781.973,781.978,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
292217-56-70403,781.973,781.978,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
293217-56-70503,781.973,781.978,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
294217-56-70603,781.973,781.978,001.00-
ARIZONA /
Attn: Becky
MERITAGE
HOMES OF
Residential
295217-56-70703,781.973,781.978,001.00-
ARIZONA /
Attn: Becky
Gladden
NP Investments
Farms
LLC / Dave 30,562.8018,332.46260,465.0052,093
218217-57-3660
Commercial
Newquist
Center -
Weingarten Gladden
Realty / Attn: Farms
219217-57-367020,712.1612,423.7667,076.0035,303
Deborah Commercial
Brennand, Center - Fast
Weingarten Gladden
Realty / Attn: Farms
220217-57-368024,176.0114,501.4978,293.0041,207
Deborah Commercial
Brennand, Center - Fast
Weingarten Gladden
Realty / Attn: Farms
221217-57-369019,133.9511,477.1061,965.0032,613
Deborah Commercial
Brennand, Center
Weingarten Gladden
Realty / Attn: Farms
222217-57-370045,150.4327,082.56146,218.0076,957
Deborah Commercial
Brennand, Center
Weingarten Gladden
Realty / Attn: Farms
224217-57-372069,415.0441,637.17189,304.00118,315
Deborah Commercial
Brennand, Center -
181
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Weingarten Gladden
Realty / Attn: Farms
225217-57-373015,904.189,539.7943,373.0027,108
Deborah Commercial
Brennand, Center
Weingarten Gladden
Realty / Attn: Farms
226217-57-374030,604.4518,357.4599,112.0052,164
Deborah Commercial
Brennand, Center
Weingarten Gladden
Realty / Attn: Farms
227217-57-375021,497.7412,894.9669,620.0036,642
Deborah Commercial
Brennand, Center
Richmond
American
Residential
228/229-1217-57-37606,389.133,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
Residential
228/229-2217-57-37706,389.133,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
Residential
228/229-3217-57-37806,389.133,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
6,389.133,832.3918,628.00-Residential
228/229-4217-57-3790
Homes /
M.D.C.
Richmond
American
Residential
228/229-5217-57-38006,389.133,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
6,389.133,832.3918,628.00-Residential
228/229-6217-57-3810
Homes /
M.D.C.
Richmond
American
228/229-7217-57-38206,389.133,832.3918,628.00-Residential
Homes /
M.D.C.
Richmond
American
228/229-8217-57-38306,389.133,832.3918,628.00-Residential
Homes /
M.D.C.
Richmond
American
228/229-9217-57-38406,389.133,832.3918,628.00-Residential
Homes /
M.D.C.
182
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Richmond
American
Residential
228/229-11217-57-38606,389.133,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
Residential
228/229-13217-57-38806,389.133,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
Residential
228/229-24217-57-39906,389.133,832.3918,628.00-
Homes /
M.D.C.
Lennar Homes
/ Attn: Karla Residential
228/229-39217-57-41406,389.133,832.3918,628.00-
Lane
Lennar Homes
/ Attn: Karla 6,389.133,832.3918,628.00-Residential
228/229-42217-57-4170
Lane
Lennar Homes
228/229-43217-57-4180/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-44217-57-4190/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-45217-57-4200/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-46217-57-4210/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-47217-57-4220/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-48217-57-4230/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-49217-57-4240/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
183
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
228/229-51217-57-42606,389.133,832.3918,628.00-
Lane
Lennar Homes
/ Attn: Karla 6,389.133,832.3918,628.00-Residential
228/229-52217-57-4270
Lane
Lennar Homes
228/229-53217-57-4280/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-54217-57-4290/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-55217-57-4300/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-56217-57-4310/ Attn: Karla 6,389.133,832.39218,642.00-Residential
Lane
Lennar Homes
228/229-57217-57-4320/ Attn: Karla 6,389.133,832.39169,841.00-Residential
Lane
Lennar Homes
228/229-58217-57-4330/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-59217-57-4340/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-60217-57-4350/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-61217-57-4360/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-63217-57-4380/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
184
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Lennar Homes
/ Attn: Karla Residential
228/229-64217-57-43906,389.133,832.3918,628.00-
Lane
Lennar Homes
/ Attn: Karla 6,389.133,832.3918,628.00-Residential
228/229-65217-57-4400
Lane
Lennar Homes
228/229-66217-57-4410/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-67217-57-4420/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-68217-57-4430/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-69217-57-4440/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-70217-57-4450/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-71217-57-4460/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-72217-57-4470/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-73217-57-4480/ Attn: Karla 6,389.133,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-74217-57-4490/ Attn: Karla 6,389.123,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-77217-57-4520/ Attn: Todd 6,389.123,832.3918,628.00-Residential
Alexander
185
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Richmond
American
Residential
228/229-95217-57-47006,389.123,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
Residential
228/229-97217-57-47206,389.123,832.3918,628.00-
Homes /
M.D.C.
Lennar Homes
/ Attn: Karla Residential
228/229-99217-57-47406,389.123,832.3918,628.00-
Lane
Lennar Homes
/ Attn: Karla Residential
228/229-100217-57-47506,389.123,832.3918,628.00-
Lane
Lennar Homes
/ Attn: Karla 6,389.123,832.3918,628.00-Residential
228/229-101217-57-4760
Lane
Lennar Homes
228/229-102217-57-4770/ Attn: Karla 6,389.123,832.3918,628.00-Residential
Lane
Lennar Homes
228/229-103217-57-4780/ Attn: Karla 6,389.123,832.3918,628.00-Residential
Lane
Richmond
American
228/229-105217-57-4800Residential
6,389.123,832.3918,628.00-
Homes /
M.D.C.
Richmond
American
6,389.123,832.3918,628.00-Residential
228/229-113217-57-4880
Homes /
M.D.C.
Richmond
American
228/229-114217-57-48906,389.123,832.3918,628.00-Residential
Homes /
M.D.C.
Richmond
American
228/229-115217-57-49006,389.123,832.3918,628.00-Residential
Homes /
M.D.C.
Richmond
American
228/229-116217-57-49106,389.123,832.39219,126.00-Residential
Homes /
M.D.C.
186
Schedule 10
Town of Marana, Arizona
Tangerine Farms Road Improvement District
All Active Assessments As of 6/30/2018
Tax Non-
District Assessor's OriginalRemaining2018Residential
Assessment Parcel AssessmentAssessmentFull Cash Square Expected
NumberNumberOwnerAmount (1)Amount (2)Value (3)Footage (4)Future Use
Richmond
American
Residential
228/229-117217-57-49206,389.123,832.39182,889.00-
Homes /
M.D.C.
Richmond
American
Residential
228/229-118217-57-49306,389.123,832.3918,628.00-
Homes /
M.D.C.
228 Active
Residential Totals:$1,846,924.49$1,350,916.81$3,532,822.000
Assessments
50 Active
Non-Residential Totals:$20,444,457.74$12,413,250.58$8,522,267.0032,132,613
Assessments
278 Active
Totals:$22,291,382.23$13,764,167.39$12,055,149.0032,132,613(4)
Assessments
(1) Includes capitalized interest on the Bonds as sold.
(2) Amount remaining after billing for the 6/1/2018 assessment installment.
(3) As current Full Cash Value data is not available from Pima County for certain parcels that have changed during Fiscal Year 2017
(4) The Pima County Assessor does not provide the square footage for most residential properties.
187
TOWN OF MARANA
Schedule 11
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Governmental Activities Business-Type Activities
General Special Total Percentage
Fiscal Revenue Obligation Assessment Capital Revenue Loans Primary of Personal
Year Bonds(1)Bonds(2)Bonds(3)LeasesBondsPayableGovernmentIncome (4)Per Capita
2018$ 55,835$ 7,745$ 14,200$ -$ 20,719$ 3,202 101,701260.3% 2,271
2017 57,840 7,955 14,245 - 20,858 3,421 104,319267.0% 2,400
2016 66,715 7,835 15,927 - 1,214 3,634 95,325251.3% 2,307
1,343 3,841 97,028263.5% 2,406
2015 69,299 8,085 17,246 -
2014 71,659 8,325 18,488 - 1,343 4,042 100,641281.5% 2,628
2013 81,720 8,550 19,926 - - 4,265 111,076293.9% 3,022
2012 60,699 8,765 21,288 - - 4,480 94,848261.0% 2,645
- 4,586 101,013289.1% 2,931
2011 65,384 8,965 22,492 -
2010 67,344 8,155 23,828 33 - 1,562.00 100,478299.0% 2,944
- - 101,208313.3% 3,039
2009 67,975 8,335 24,823 75
Notes:
(1) Presented net of original issuance discounts and premiums
(2) Bonds issued for Gladden Farms Facilities District , a component unit of the Town.
(3) Bonds issued for Tangerine Farms Road Improvement District FY 2008, a component unit of the Town.
(4) Individual statistics not available for Marana, included in figures for Pima County and Tucson
Metropolitan area.
Source: US Census Bureau, Bureau of Economic Analysis
188
TOWN OF MARANA
Schedule 12
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Less: Amounts Percentage of
Available in
General Estimated Actual
Obligation Debt Service Taxable Value of
Per
property
Fiscal Year BondsFundTotal Capita
2018$ 7,745$ 1,029 $ 6,716 0.14%15.0%
2017 7,955 1,021 6,9340.15%15.9%
0.16%16.5%
2016 7,835 1,025 6,810
2015 8,085 900 7,1850.18%17.8%
2014 8,325 881 7,4440.19%19.4%
2013 8,550 689 7,8610.22%21.4%
2012 8,765 886 7,8790.21%22.0%
2011 8,765 1,066 7,6990.19%23.1%
2010 8,965 963 8,0020.24%26.7%
2009 8,335 957 7,3780.30%27.6%
Notes:
1) 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)
or the Saguaro Springs Community Facilities District (formed in fiscal year 2007).
Source: General Obligation Bonds
189
TOWN OF MARANA
Schedule 13
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2018
(Amounts expressed in thousands)
Estimated
Debt Estimated Share
Governmental UnitPercentage
Outstanding of Overlapping Debt
Applicable *
State of ArizonaNoneN/ANone
Pima County $ 288,182 6.30%$ 18,155
Pima County Community College District NoneN/ANone
Pima County Flood Control DistrictNoneN/ANone
Northwest Fire District 35,359 46.80% 16,548
Flowing Wells Unified School District No. 8 23,380 100.00% 23,380
Marana Unified School District No. 6 129,771 63.07% 81,847
Total overlapping debt 139,930
Gladden Farms Community Facilities District 7,745 100.00% 7,745
Tangerine Farms Road Improvement District 14,200 100.00% 14,200
Town of Marana 62,018 100.00% 62,018
Total direct debt$ 83,963
Total direct and overlapping debt$ 223,893
Notes:
* 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
190
TOWN OF MARANA
Schedule 14
LEGAL DEBT MARGIN INFORMATION
AS OF JUNE 30, 2018
Legal Debt Margin Calculation for Fiscal Year 2018
Full Cash Net Assessed$ 575,899,299
Debt Limit: -
6% of assessed value 34,553,958
20% of assessed value 115,179,860
Total debt limit: 149,733,818
Debt applicable to limit:
General obligation bonds -
Less: Amount set aside for the repayment
of general obligation debt -
Total net debt applicable to limit -
Legal Debt Margin$ 149,733,818
Fiscal Year
20092010201120122013
Debt limit equal to
6% of assessed
$ 33,009,019$ 60,524,235$ 27,274,051$ 25,992,985$ 24,745,839
Debt limit equal to
20% of assessed 110,030,063 201,747,448 90,913,503 86,643,283 82,486,130
Total net debt
applicable to limit - - - - -
Legal debt margin
$ 143,039,082$ 262,271,683$ 118,187,553$ 112,636,268$ 107,231,969
Total net debt
applicable to the limit
0%0%0%0%0%
as a percentage of
debt limit
Fiscal Year
20142015201620172018
Debt limit equal to
6% of assessed $ 28,630,929$ 29,446,070$ 31,218,157$ 32,138,944$ 34,553,958
Debt limit equal to
20% of assessed
95,436,430 98,153,568 104,060,525 107,129,981 115,179,860
Total net debt
applicable to limit
- - - - -
Legal debt margin
$ 124,067,359$ 127,599,639$ 135,278,682$ 139,268,925$ 149,733,818
Total net debt
applicable to the limit
0%0%0%0%0%
as a percentage of
debt limit
Notes:
* The Gladden Farms Community Facilities District, a legally separate entity, is a special taxing district whose debt
was approved by voters of the District. The District's general obligation debt does not count towards the Town's
legal debt limit.
Sources:Financial Statements; Pima County
191
TOWN OF MARANA
Schedule 15
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Gladden Farms Community Facilities District General
Obligation Bonds *
Property Tax
Fiscal YearCollectionsCoverage
Debt Service
Principal Interest
114.6%
2018$ 551$ 210$ 271
2017 507 265 29590.5%
2016 479 250 44568.9%
2015 441 240 45863.2%
60.1%
2014 418 225 470
2013 444 215 48163.8%
2012 503 200 49072.9%
2011 576 19047786.4%
2010 609 180 45595.9%
2009 616 - 233264.4%
Tangerine Road Farms Improvement District Special
Assessment Bonds **
Special
Assessment
CollectionsDebt Service Coverage
Fiscal Year
Principal Interest
2018$ 989$ 45$ 254330.8%
2017 2,351 1,328 732114.1%
20162,1411,319 792101.4%
2015 2,065 1,242 84998.8%
2014 2,210 1,438 91394.0%
2013 2,337 1,362 976100.0%
20122,3021,204 1,035102.8%
92.1%
2011 2,239 1,336 1,096
20102,352995 1,142110.1%
2,136 951 593138.3%
2009
Notes:
* Bonds issued for Gladden Farms Facilities District FY 05, a component unit of the Town.
Principal debt payoff did not begin until FY 2008.Collection of property tax revenues to
begin fiscal year 2008. Shortfalls are covered by a standby contribution agreement.
**Special assessment amounts issued for Tangerine Road Farms Improvement District,
a governmental fund of the Town. Principal debt payoff begins fiscal year 2009.
Collection fees related to special assessment to begin fiscal year 2009.
Source: Finanacial statements
192
TOWN OF MARANASchedule 16
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per Capita
Personal Personal School Unemployment
Fiscal YearPopulationIncome*Income Median AgeEnrollment Rate
2018 44,792N/A$ 33,111 37.9 12,4702.8%
2017 43,474N/A 32,646 48.1 12,0504.3%
2016 41,315N/A 37,107 29.7 12,3504.7%
2015 40,324N/A 34,026 39.6 12,3265.9%
2014 38,290N/A 33,196 39.4 12,4766.9%
2013 36,756N/A 29,626 37.7 12,3616.1%
2012 35,858N/A 31,085 37.6 12,5769.7%
2011 35,124N/AN/A37.4 12,3147.9%
2010 34,961 35,172,000N/A37.4 12,4268.7%
2009 34,466 34,516,000 31,64837.4 12,5464.7%
Notes:
* Information published for census year only.
N/A indicates that the information is not available.
Sources: U.S. Census Bureau, Population Division; Arizona Department of Commerce; Pima Association
of Governments; Arizona's Economy; Marana Unified School District.
193
TOWN OF MARANA
Schedule 17
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
20182009
Percentage of Percentage of
Total City Total City
EmploymentEmployment
Employees Employees
Employer
Marana Unified School District 1,4046.3% 1,77524.1%
Top Golf 4352.0%--
5.0%
Town of Marana 3651.6% 365
Marana Health Center 3561.6%--
Wal-Mart 3561.6% 450 6.1%
The Ritz Carlton, Dove Mountain 3201.4%--
Sargent Aerospace & Defense 3131.4% 2503.4%
Costco 2501.1% 275 3.7%
FLSmidth Krebs 2391.1%--
Northwest Fire District 2301.0%--
Army Reserve/National Guard Training Center 6358.63%
Evergreen Air Center, Inc. 6058.63%
Target 2253.1%
Comcast of Arizona 2002.7%
Fry's Food & Drug 2002.7%
Source: ArizonaCommerce.com, Marana Chamber of Commerce
194
Schedule 18
TOWN OF MARANA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
2009201020112012201320142015201620172018
Function
General Government 90.4 62.8 72.5 62.5 62.5 62.5 67.5 70.9 72.9 73.3
Public Safety
Police
Officers 81.0 78.0 80.0 79.0 80.0 80.0 81.0 83.0 85.0 87.0
Civilians 30.0 28.0 28.8 28.5 26.0 26.0 28.0 28.0 28.0 28.0
Building Safety - 5.0 6.0 6.0 9.0 9.0 13.0 13.0 12.0 12.0
Highways and streets 24.0 31.0 32.0 32.0 36.0 36.0 35.0 35.0 34.0 36.0
Engineering - - - - - - - - - -
Maintenance - - - - - - - - - -
Culture and recreation 50.0 43.8 41.5 41.7 33.3 33.3 36.5 38.5 41.8 41.0
Community Development 3.0 3.0 4.0 3.0 - - - - - -
Economic & Community Development 45.1 54.6 52.4 53.4 48.5 48.5 40.4 39.4 43.0 46.5
Water Utilities 17.4 15.4 18.1 20.1 19.1 19.1 22.0 23.0 23.0 24.0
Wastewater Utilities N/AN/AN/A - 4.0 4.0 4.0 4.0 4.0 5.0
Municipal Airport 2.0 - - - 1.0 1.0 1.0 3.0 3.0 3.0
Total 342.9 321.6 335.3 326.1 319.3 319.3 328.3 337.8 346.7 355.8
Source: Town of Marana; Annual Budget; Authorized position schedule.
195
Schedule 19
TOWN OF MARANA
SALES TAX BY INDUSTRY
LAST TEN FISCAL YEARS
Industry GroupFY 2009%FY 2010%
Construction$ 6,450,53028.79%$ 4,448,46920.54%
Manufacturing 154,5940.69% 138,8170.64%
Transportation, Communications,
& Utilities 2,522,67111.26% 2,768,19812.78%
Wholesale Trade 339,0511.51% 184,2030.85%
Retail Trade 8,554,33238.18% 8,673,05540.04%
Restaurant & Bars 1,384,9146.18% 1,555,0327.18%
Fire, Insurance & Real Estate 903,8104.03% 1,050,0464.85%
Hotels & Other Lodging 508,1992.27% 1,378,2716.36%
Services 1,002,9924.48% 1,057,4334.88%
All Others 583,3302.60% 408,5811.89%
$ 22,404,422100.00%$ 21,662,105 100.00%
Industry GroupFY 2014%2015%
24.37%
Construction$ 6,411,50924.45%$ 6,838,195
Manufacturing 97,014 0.37% 100,3290.36%
Transportation, Communications,
& Utilities 3,182,85412.14% 3,318,97611.83%
1.09%
Wholesale Trade 213,6570.81% 305,012
Retail Trade 9,593,16336.58% 10,133,52336.12%
7.27%
Restaurant & Bars 1,865,6027.11% 2,038,788
Fire, Insurance & Real Estate 1,256,4184.79% 1,240,1964.42%
8.84%
Hotels & Other Lodging 2,064,9867.87% 2,481,304
Services1,031,3253.93%1,046,6693.73%
All Others 509,3511.94% 555,5221.98%
$ 26,225,881100.00%$ 28,058,514 100.00%
Note:
*In fiscal year 2016, the Arizona Department of Revenue began using a new form and
payment journal, which affected the classification of certain tax revenues within
the industry groups
Source: Town of Marana Finance Department, Arizona Department of Revenue
196
Schedule 19
FY 2011%FY 2012%FY 2013%
$ 4,870,79721.23%$ 5,782,64423.57%$ 5,260,34521.33%
123,5240.54% 128,0890.52% 127,2140.52%
2,927,27112.76% 2,985,97912.17% 3,038,07112.32%
194,3920.85% 233,8500.95% 296,0771.20%
8,667,89637.77% 8,804,20635.88% 9,380,54438.03%
7.38%
1,658,1807.23% 1,789,2327.29% 1,819,588
1,253,4815.46% 1,350,9775.51% 1,234,4265.00%
1,914,0048.34% 1,991,7678.12% 2,140,4938.68%
982,6314.28% 1,026,4434.18% 1,003,3774.07%
1.47%
355,6421.55% 445,7741.81% 363,807
$ 22,947,818 100.00%$ 24,538,961100.00%$ 24,663,942100.00%
2016*%2017%2018%
19.42%$ 7,557,29220.15%$ 9,825,26523.58%
$ 6,883,116
- 0.00% - 0.00% - 0.00%
3,919,63311.06% 3,809,31510.16% 4,234,22010.16%
0.00%
- 0.00% - 0.00% -
16,305,87846.01% 17,120,56145.65% 17,757,28442.61%
8.68% 3,295,7348.79% 3,616,1108.68%
3,076,737
1,339,4963.78% 1,540,3584.11% 1,661,0103.99%
6.47% 2,558,3126.82% 2,827,3386.78%
2,292,705
-0.00%-0.00%-0.00%
1,624,0234.58% 1,618,6484.32% 1,751,1704.20%
$ 35,441,588 100.00%$ 37,500,220100.00%$ 41,672,397 100.00%
197
Schedule 20
TOWN OF MARANA
EXCISE TAX COLLECTIONS
LAST TEN FISCAL YEARS
Industry Classification2008/092009/10
Town Sales Tax$ 22,404,422$ 21,662,077
State-shared Sales Taxes 2,126,326 1,961,225
State-shared Income Taxes 3,971,447 3,450,478
Licenses and permits 1,932,797 2,150,360
Fines and forfeitures and penalties 692,514 641,484
TOTAL$ 31,127,506$ 29,865,624
Industry Classification2013/142014/2015
Town Sales Tax$ 26,225,881$ 28,058,823
State-shared Sales Taxes 3,043,102 3,195,042
State-shared Income Taxes 3,896,487 4,232,245
Licenses and permits 3,932,108 4,813,378
Fines and forfeitures and penalties 635,869 664,955
TOTAL$ 37,733,447$ 40,964,443
Source: Statement of Revenues
198
Schedule 20
2010/112011/122012/13
$ 22,947,818$ 24,538,961$ 24,768,104
2,099,083 2,731,863 2,861,622
2,601,218 2,950,734 3,571,191
2,502,494 2,720,872 4,323,155
537,680 558,393 661,341
$ 30,688,293$ 33,500,823$ 36,185,413
Budgeted
2015/20162016/20172017/20182018/2019
$ 35,441,585$ 37,500,219$ 39,628,395$ 36,455,488
3,344,679 3,798,503 4,077,246 4,314,755
4,209,300 5,054,592 5,384,087 5,336,906
4,468,910 4,848,237 4,490,185 4,581,090
579,369 574,884 625,000 826,500
$ 48,043,843$ 51,776,435$ 54,204,913$ 51,514,739
199
TOWN OF MARANASchedule 21
PRINCIPAL RETAIL AND CONTRACTING SALES TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Fiscal Year 2018Fiscal Year 2009
Percentage of Percentage of
Sales Tax Total Sales Sales Tax Total Sales
PaymentsRankTax PaymentsPaymentsRankTax Payments
RETAIL
TaxpayerA$ 2,358,95015.7%$ 1,598,05517.1%
TaxpayerB 1,466,00223.5% 1,142,30325.1%
TaxpayerC 1,046,20432.5% 603,56432.7%
TaxpayerD 839,25942.0% 446,53352.0%
TaxpayerE 676,42151.6% 435,42571.9%
TaxpayerF 599,19061.4% 440,56462.0%
TaxpayerG 564,41271.4% 539,72842.4%
TaxpayerH 338,08480.8% 202,402100.9%
TaxpayerI 270,89190.7% 278,69191.2%
TaxpayerJ 257,096100.6%0.0%
TaxpayerK 302,15881.4%
$ 8,416,51020.2%$ 5,989,42126.8%
CONTRACTING
TaxpayerA$ 1,522,772 13.7%$ 237,22871.1%
TaxpayerB 1,360,926 23.3%0.0%
TaxpayerC 1,113,332 32.7%0.0%
TaxpayerD 660,549 41.6% 611,21332.7%
TaxpayerE 544,995 51.3%0.0%
TaxpayerF 387,495 60.9%0.0%
TaxpayerG 356,464 70.9% 345,23451.5%
TaxpayerH 311,834 80.7%0.0%
TaxpayerI 292,618 90.7%0.0%
TaxpayerJ 279,203 100.7%0.0%
TaxpayerK1,115,11715.0%
TaxpayerL 798,97823.6%
TaxpayerM 362,37441.6%
TaxpayerN 335,74661.5%
TaxpayerO 130,96280.6%
TaxpayerP 129,80190.6%
TaxpayerQ 127,030100.6%
$ 6,830,18816.4%$ 4,193,68318.7%
Source: Town of Marana Finance Department, Arizona Department of Revenue
200
TOWN OF MARANASchedule 22
SINGLE FAMILY RESIDENTIAL PERMITS
LAST TEN FISCAL YEARS
Month 2009201020112012201320142015201620172018
January 3381722603942395482
February 9252831526151587365
March24638461254257597658
April11481441644755545260
May13203553465587378578
June20232249615967506380
July31443270744159367379
August46283146605035477567
September271822294429523740
October142230564671625762
November121222352788225175
December121946484330335845
Calendar Total 200 343 337 526 702 612 622 583 773 569
Fiscal Total 593 342 297 425 692 597 668 560 689 793
Source: Town of Marana Finance Department, Town of Marana Building Services
201
TOWN OF MARANA
Schedule 23
CAPITAL ASSET STATISTICS BY FUNCTION
AS OF JUNE 30, 2018
Fiscal Year
Function20112012201320142015201620172018
Public Safety
Police:
Stations111 1111 1
Substations111 1111 1
Police Vehicles11311399118129128129129
Highways and Streets
Street (miles)300300494494511518520524
Culture and Recreation
Parks778 8899 9
Parks Acreage8484139139139157157158
Trails in Miles - Hiking2828373737383939
Trails in Miles - Paved1616161618192121
Splash Pads - -----1 1
Swimming Pools111 1111 1
Tennis Courts556 6666 6
Senior/Community Center111 1111 1
Water Systems
Miles of Water Mains7070128132135138146149
Number of Meters5,5565,7346,0026,2726,4296,7457,2057,850
Wastewater*
Number of ManholesN/A8418638638919099781066
Sewer Mains (miles)N/A46.447.547.548.3349.253.658.5
Avg Daily Sewage Treated
N/A0.1920.1980.2870.3480.3600.4250.480
(MGD)
Notes:
*Due to the wastewater 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.
**Due to cost considerations for the accumulation of data, the Town has elected to present less than ten years of data
statistical schedules. This information will be accumulated and reported each year until the complete ten years
of data is presented.
Source: This information is provided from the Town's facility records.
202
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
The Honorable Mayor and Town Council
Town of Marana, Arizona
We have audited, in accordance with the 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, the 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, (Town), as of and for the
year ended June 30, 2018, and the related notes to the financial statements, which collectively
comprise Town of Marana’s basic financial statements, and have issued our report thereon
dated December 5, 2018.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Town of
Marana, Arizona's internal control over financial reporting (internal control) to determine the
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of Town of Marana, Arizona’s internal control. Accordingly, we do not express an
opinion on the effectiveness of Town of Marana, Arizona’s internal control.
Adeficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit, we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Tempe Scottsdale Casa Grande www.hhcpa.com
203
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Town of Marana, Arizona's financial
statements are free from material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
underGovernment Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Casa Grande, Arizona
December 5, 2018
204
Town of Marana, Arizona
11555 W. Civic Center Drive
Marana, Arizona 85653
Phone: (520)382-1900
Fax: (520)382-1902
www.marana.com