HomeMy WebLinkAboutStudy Session Agenda Packet 01/14/2020
MARANA TOWN COUNCIL
STUDY SESSION
NOTICE AND AGENDA
11555 W. Civic Center Drive, Marana, Arizona 85653
Conference Center Second Floor, January 14, 2020, at or after 6:00 PM
Ed Honea, Mayor
Jon Post, Vice Mayor
David Bowen, Council Member
Patti Comerford, Council Member
Herb Kai, Council Member
John Officer, Council Member
Roxanne Ziegler, Council Member
Pursuant to A.R.S. § 38-431.02, notice is hereby given to the members of the Marana
Town Council and to the general public that the Town Council will hold a meeting open
to the public on January 14, 2020, at or after 6:00 PM located in the Conference Center on
the Second Floor of the Marana Municipal Complex, 11555 W. Civic Center Drive,
Marana, Arizona.
ACTION MAY BE TAKEN BY THE COUNCIL ON ANY ITEM LISTED ON THIS
AGENDA. Revisions to the agenda can occur up to 24 hours prior to the meeting. Revised
agenda items appear in italics.
The Conference Center is wheelchair and handicapped accessible. Persons with a
disability may request a reasonable accommodation, such as a sign language interpreter,
by contacting the Town Clerk at (520) 382-1999. Requests should be made as early as
possible to arrange the accommodation.
This Notice and Agenda posted no later than 24 hours prior to the meeting at the Marana
Municipal Complex, 11555 W. Civic Center Drive, the Marana Operations Center, 5100
W. Ina Road, and at www.maranaaz.gov under Agendas and Minutes.
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE
APPROVAL OF AGENDA
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DISCUSSION/DIRECTION/POSSIBLE ACTION
D1 Relating to Budget; presentation of independent auditor's report and final
results for the 2018-2019 fiscal year (Yiannis Kalaitzidis)
D2 Relating to Budget; presentation, discussion and direction regarding the
framework for development of the fiscal year 2020-2021 budget and its role in
the implementation of the Strategic Plan (Jamsheed Mehta and Yiannis
Kalaitzidis)
D3 Relating to Public Works; discussion, consideration, and feedback regarding
key policy considerations for use of Town-owned fiber conduit and ducts by
third parties (Jane Fairall)
EXECUTIVE SESSIONS
Pursuant to A.R.S. § 38-431.03, the Town Council may vote to go into executive session,
which will not be open to the public, to discuss certain matters.
E1 Executive Session pursuant to A.R.S. §38-431.03 (A), Council may ask for
discussion or consideration, or consultation with designated Town
representatives, or consultation for legal advice with the Town Attorney,
concerning any matter listed on this agenda for any of the reasons listed in
A.R.S. §38-431.03 (A).
FUTURE AGENDA ITEMS
Notwithstanding the mayor’s discretion regarding the items to be placed on the
agenda, if three or more Council members request that an item be placed on the
agenda, it must be placed on the agenda for the second regular Town Council
meeting after the date of the request, pursuant to Marana Town Code Section
2-4-2(B).
ADJOURNMENT
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Council-Study Session D1
Meeting Date:01/14/2020
To:Mayor and Council
From:Yiannis Kalaitzidis, Finance Director
Date:January 14, 2020
Strategic Plan Focus Area:
Commerce, Community, Heritage, Recreation, Progress & Innovation
Strategic Plan Focus Area Additional Info:
Financial sustainability is an overriding principle of the Strategic Plan.
Subject:Relating to Budget; presentation of independent auditor's report and final
results for the 2018-2019 fiscal year (Yiannis Kalaitzidis)
Discussion:
On October 15, 2019, staff provided Council with preliminary financial results for the
Town's General Fund and certain other funds for fiscal year 2018-2019. The results
presented were preliminary, unaudited, and subject to change.
Henry and Horne, LLP, the Town's independent financial statement audit firm,
conducted its audit field work in October 2019 and released its opinion to the
Town earlier in December 2019. The Town received a clean opinion and the financial
results are now final.
The purpose of this presentation is to formally present the final results of the audit and
to provide Council with a brief summary of the audit.
Copies of the Comprehensive Annual Financial Report (CAFR) and Annual Expenditure
Limitation Report are attached to this item. A Single Audit Report is also attached as the
Town expended more than $750,000 in federal award funding (the amount that triggers
an audit of federal award funding), mainly due to $3.25 million expended during the
fiscal year in grant funding from the U.S. Department of Transportation related to the
Airport Apron and Taxiway B rehabilitation project.
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Staff Recommendation:
Presentation only.
Suggested Motion:
Presentation only.
Attachments
Town of Marana - Fiscal Year 2018-2019 CAFR
Town of Marana - Fiscal Year 2018-19 Annual Expenditure Limitation Report
Town of Marana - Fiscal Year 2018-2019 Single Audit Report
Fiscal Year 2018-2019 Summary Presentation
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TOWN OF MARANA, ARIZONA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2019
_____________________________
11555 W. Civic Center Dr., A3
Marana, Arizona 85653
Issued by:
Town of Marana Finance Department
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TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
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' REPORT 1
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
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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 Fund 41
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 84
Schedule of Changes in the Town’s Net Pension Liability (Asset) and –
Related Ratios Agent Pension Plans 85
Schedule of Town Pension Contributions 88
Notes to Pension Plan Schedules 92
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Other Major Governmental Funds Schedules of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual:
Tangerine Farms Road Improvement District Debt Fund 97
Sales Tax Capital Fund 98
Transportation Capital Fund 99
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TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS (Cont’d)
FINANCIAL SECTION (Cont’d) Page
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES (Cont’d)
Non-Major Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 102
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 103
Non-Major Special Revenue Funds:
Combining Balance Sheet 106
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 108
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual 110
Non-Major Capital Projects Funds:
Combining Balance Sheet 118
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances 120
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Budget and Actual 122
Non-Major Debt Service Fund:
Combining Balance Sheet 134
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 136
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual 138
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TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS (Cont’d)
STATISTICAL SECTION
FINANCIAL TRENDS
Net Position by Component – Last Ten Fiscal Years 146
Changes in Net Position – Last Ten Fiscal Years 148
Fund Balances of Governmental Funds – Last Ten Fiscal Years 152
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 154
REVENUE CAPACITY
Governmental Activities Tax Revenues by Source – Last Ten Years 158
Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable 159
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
Sales Tax by Industry – Last Ten Years 174
Excise Tax Collections – Last Ten Years 176
DEBT CAPACITY
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 178
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 179
Direct and Overlapping Governmental Activities Debt 180
Legal Debt Margin Information 181
Pledged-Revenue Coverage – Last Ten Fiscal Years 182
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TOWN OF MARANA, ARIZONA
TABLE OF CONTENTS (Cont’d)
STATISTICAL SECTION (Concl’d) Page
DEMOGRAPHIC AND ECONOMIC INFORMATION
Demographic and Economic Statistics – Last Ten Fiscal Years 184
Principal Employers – Current Year and Nine Years Ago 185
Principal Retail and Contracting Sales Taxpayers – Current
and Nine Years Ago 186
OPERATING INFORMATION
Full-time Equivalent City Government Employees by Function – Last 187
Ten Fiscal Years
Single Family Residential Permits Issued – Last Ten Years 188
Capital Assets Statistics by Function 190
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INTRODUCTORY SECTION
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December 5, 2019
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, 2019.
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’s financial
statements in conformity with accounting principles generally accepted in the United States of America. Because
the cost of internal controls should not outweigh their benefits, the Town’s comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial statements will
be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The Town’s financial statements have been audited by 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, 2019, 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,
2019, 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.
The independent audit of the financial statements of the Town was part of a broader, federally mandated Single
Audit as required by the provisions of the Single Audit Act Amendments of 1996 and the audit requirements of Title
2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance) to meet the special needs of federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited Town’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the administration of
federal awards. These reports are available in a separately issued Single Audit Reporting Package.
Accounting principles generally accepted in the United States of America require that management provide a
narrative introduction, overview, and analysis to accompany the basic financial statements in the form of
Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
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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 northwestern part of the Tucson metropolitan area of 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. Today, the Town’s boundaries encompass 121 square miles
and serves a population in excess of 47,000.
In its infancy, the Town was primarily a rural, agricultural community. However, through annexations and planned
growth, the Town is now home to several residential, commercial and industrial developments, including
Continental Ranch, Continental Reserve, Gladden Farms, 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 375 full-time equivalents 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 7.6% overall with growth in transaction privilege taxes of $1.7 million or 6.4% 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 2019-20
anticipates a continuation of General Fund revenue growth. 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 $10.1 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, 2019, the Town’s governmental funds reported a combined fund balance of $78.1 million, of which
$31.5 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
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subject to economic fluctuations. Transaction privilege tax revenues comprised 57.8% of general fund revenues. Of
those revenues, retail comprised 49.9% and restaurants and bars, construction, and utilities comprised 32.8% 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.
Future Economic Outlook
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 790 new homes permitted in fiscal year 2019. In the past year, the Town has also completed
construction of major community improvements, including the Police Facility and the widening of Tangerine Road
Phase I. 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 2019, the Town had several significant accomplishments and initiatives.
New Marana Public Safety Facility
The Town of Marana completed construction of 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 repeal 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.
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
Road creates a beautified corridor from Interstate 10 to Oracle Road, representing a major economic opportunity for
the three communities involved. The Town of Marana was selected as a recipient of the American Public Works
Association’s (APWA) 2019 Public Works Project of the Year Award for this project.
Water Treatment Systems
Town Council authorized the creation of two water treatment campuses to construct the water treatment facilities in
the two impacted systems found to contain unregulated compounds. The decision was made after evaluating
several solutions, including blending alternatives and other water sources. Constructing water treatment facilities in
each of the impacted systems was considered to be the most effective solution to providing safe, clean drinking
water now and for future development.
Expenditure Limitation
On 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.
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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.
As part of the Town’s single audit described earlier, tests are made to determine the adequacy of the internal
controls, including that portion related to Federal financial assistance programs, as well as to determine that the
Town has complied with applicable laws and regulations.
Certificate of Achievement
The Government Finance Officers Association of the United States (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Town of Marana for its Comprehensive Annual Financial Report (CAFR) for
the year ended June 30, 2018. This was the 11th 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 2019
MAYOR AND COUNCIL
Ed Honea, Mayor
Jon Post, Vice Mayor Herb Kai, Councilmember
John Officer, Councilmember Roxanne Ziegler, Councilmember
Dave Bowen, Councilmember Patti Comerford, Councilmember
MANAGEMENT STAFF
Jamsheed Mehta, Town Manager
Erik Montague, Deputy Town Manager
DEPARTMENT HEADS
Jason Angell, Development Services Director Curry C. Hale, Human Resources Director
Cherry Lawson, 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
Neighborhood Services Director
Isaac Abbs, Technology Services Director
Jim Conroy, Parks and Recreation Director
Scott Schladweiler, Utilities Director
Curt Woody, Director of Economic Development
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TOWN OF MARANA, ARIZONA
ORGANIZATIONAL CHART
FISCAL YEAR 2019
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INDEPENDENT AUDITORS’ REPORT
The Honorable Mayor and Town Council
Town of Marana, Arizona
Marana, Arizona
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, 2019, 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
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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, 2019, 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.
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
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.
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Other Information (Continued)
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 16, 2019 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.
Tempe, Arizona
December 16, 2019
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MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
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TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
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, 2019. 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 $15.4 million or 4.3 percent from the previous fiscal year 2017-
18. The increase is primarily due to an increase in capital assets and a decrease in overall liabilities. The
increase in capital assets is primarily due to the Police Facility project, Airport pavement rehab project, and
developer contributions of road, water, and wastewater infrastructure. The decrease in liabilities is due to a
combination of reduced general accounts payable amounts at year end, a decrease in the net pension
liability, and a decrease in special assessment and revenue bonds due to regular principal payments.
• General revenues from governmental activities, excluding transfers, accounted for $58.2 million in revenue,
or 68.7 percent of all revenues from governmental activities. Program specific revenues in the form of
charges for services and grants and contributions accounted for $26.5 million or 31.3 percent of total
revenues from governmental activities. The Town had $16.7 million of program revenues related to
business-type activities. Overall revenues have decreased by 11.2 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
2018-19 was a 50.7 percent increase in community facilities district property taxes, a 194.8 percent increase
in investment income, and a 31.3 percent increase in miscellaneous revenue.
• The General Fund had $50.1 million in fiscal year 2018-19 revenues, which primarily consisted of sales
taxes, intergovernmental revenue and licenses, fees and permits. The General fund had $39.7 million of
expenditures, and $3.7 million in required transfers out during the year. The $7 million fund balance
increase is attributed to higher than anticipated revenues in sales taxes, investment income 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 2018-19 at $3.6 million. Expenditures
were 12 percent lower than the previous year due to delayed projects for the pavement preservation
program. Fund balance increased by $1.2 million and ended the fiscal year at $3 million.
• Tangerine Farms Road Improvement District Debt Service Fund, which accounts for special assessments,
had a $1.4 million fund balance attributable to the accumulation of prepaid assessments and resources
required for debt service payment.
• The Sales Tax Capital Fund accounts for resources collected to construct the Police Facility project. The
project was completed in fiscal year 2018-19. The fund has been reported as a major fund due to the
importance of reporting the revenues and expenditures of this project to our citizens. At the end of the year,
the fund balance was $0.
• The Transportation Fund had an increase in revenue of 12.7 percent in fiscal year 2018-19 due to increase
tax revenues and investment income. There was an increase of 202.75 percent in expenditures due to
pavement reconstruction projects and construction of the Ina Road Bridge.
Marana Study Session 01/14/2020 Page 28 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
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 position presents information on all of the Town’s assets, deferred outflows of resources,
liabilities, and deferred inflows of resources with the difference reported as net position. The focus on net position
is important because increases and decreases in net position may serve as a useful indicator of how the financial
position of the Town may be changing. Increases may indicate an improved financial position. However, decreases
in net position may not necessarily indicate the Town’s financial position is deteriorating. Instead, it may reflect a
situation where the Town may have used previously accumulated funds (i.e., cash collected over time to fund
capital projects). As a result, other financial and non-financial indicators must also be considered to effectively
assess the Town’s overall financial health.
The statement of activities presents information showing how the Town’s net position changed during the most
recent fiscal year. Since economic resources measurement focus and accrual basis of accounting are used for the
government-wide financial statements, all changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected
taxes and 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
Marana Study Session 01/14/2020 Page 29 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
compliance with finance-related legal requirements. All of the funds of the Town can be divided into two
categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund financial statements focus on near-term inflows 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, 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 102.
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, 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 97-99,
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 32-41 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.
Marana Study Session 01/14/2020 Page 30 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
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 9
Employee Retirement Systems beginning on page 64 in addition to the information on pages 84-92 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 $377
million as of June 30, 2019. Noncurrent assets increased by $9.2 million or 2.2 percent due to the addition of capital
assets such as the Police Facility, the Wastewater Reclamation Plant, and the Tangerine Sky Park. The current
liabilities decreased by $4.3 million or 17.6 percent, which is attributable to a decrease in accounts payable. Long-
term liabilities decreased by $6 million or 4.2 percent due to a reduction in net pension liability, special assessment
bonds payable, and revenue bonds payable. The decrease in long-term liabilities was offset slightly by an increase
in general obligation bonds payable due to the issuance of new bonds for certain community facility districts.
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, 2019 and
June 30, 2018.
Marana Study Session 01/14/2020 Page 31 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Governmental Activities Business-type Activities Total
2019 2018 2019 2018 2019 2018
Current and other
assets $96,247,879 $99,908,458 $ 3,832,658 $ 1,134,123
$100,080,537
$101,042,581
Capital assets, net 304,616,026 298,014,680 122,681,253 120,068,186 427,297,279 418,082,866
Total assets, net 400,863,905 397,923,138 126,513,911 121,202,309 527,377,816 519,125,447
Deferred outflows
related to pensions 7,122,319 8,973,655 336,775 372,785 7,459,094 9,346,440
Deferred charge on
refunding 1,603,406 1,751,302 - - 1,603,406 1,751,302
Total deferred
outflows of
resources 8,725,725 10,724,957 336,775 372,785 9,062,500 11,097,742
Current and other
liabilities 15,524,565 21,084,296 4,693,503 3,447,782 20,218,068 24,532,078
Long-term liabilities 110,413,950 115,703,142 25,432,980 26,161,056 135,846,930 141,864,198
Total liabilities 125,938,515 136,787,438 30,126,483 29,608,838 156,064,998 166,396,276
Deferred inflows
related to pensions 3,153,390 2,138,953 247,476 108,826 3,400,866 2,247,779
Total deferred
inflows of
resources 3,153,390 2,138,953
247,476
108,826
3,400,866
2,247,779
Net position:
Net investment in
capital assets
243,685,340
236,207,921
98,286,785
95,777,056
341,972,125
331,984,977
Restricted 19,985,284 17,241,379 365,485 365,485 20,350,769 17,606,864
Unrestricted 16,827,101 16,272,404 (2,175,543) (4,285,111) 14,651,558 11,987,293
Total net
position
$280,497,725
$269,721,704 $96,476,727 $91,857,430
$376,974,452
$361,579,134
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 $342 million or 90.7
percent, which represents the largest portion of net position. This portion of net position increased by $10 million as
of June 30, 2019. The increase is due to a net increase in capital assets and a decrease in debt related to the
acquisition of capital assets due to regularly scheduled principal payments.
The second portion of net position of $20.4 million or 5.4 percent represents resources that are subject to external
restrictions on how they may be utilized. The increase of $2.7 million or 15.6 percent is primarily due to the
accumulation of resources in the HURF fund and certain impact fee funds.
The third portion consists of unrestricted net position of $14.7 million or 3.9 percent. The unrestricted balance has
increased by $2.7 million. The increase is primarily attributable to the business-type activities. The business-type
activities had an increase in unrestricted net position of $2.1 million primarily related to the receivable due to the
Airport from a capital grant for the rehab of the Airport apron and taxiway.
Marana Study Session 01/14/2020 Page 32 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Changes in net position. The Town’s total revenues for the fiscal year ended June 30, 2019, were $101.5
million, which was an overall decrease of $12.8 million or 11.2 percent. Specifically, the decrease of $12.2 million
was in governmental activities capital grants and contributions, which is due to reimbursable project costs
decreasing related to the Tangerine Road Corridor project. Additionally, there was a decrease of $2.4 million in the
governmental activities. This decrease was attributable to special assessment revenues for the Tangerine Farms
Improvement District. While the decrease was minimal to sales tax revenues, it is important to note that the sales
tax rate was reduced by .5 percent due to the completion of collecting the funds needed to construct the Police
Facility. The decreases were offset by increases in all other categories. The largest increase was to investment
income due to increased rates in the Town’s investments as well as a focused approach to the Town’s investments.
The total cost of all programs and services was $86.1 million. The decrease of $1.6 million or 1.8 percent is
primarily attributable to reduced spending on the Tangerine Road Corridor project costs related to other jurisdictions
and a reduction to interest paid on long-term debt. These decreases were offset by an increase to general
government costs attributable to costs to the developer for the Saguaro Springs Community Facilities District. The
following table presents a summary of the changes in net position for the fiscal years ended June 30, 2019 and
June 30, 2018.
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TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Governmental Activities Business-type Activities Total
2019 2018 2019 2018 2019 2018
Revenues:
Program revenues:
Charges for services $10,584,668 $10,389,946 $ 7,704,547 $ 7,405,399 $18,289,215 $17,795,345
Operating grants and
contributions 2,259,104 4,665,038
-
-
2,259,104
4,665,038
Capital grants and
contributions 13,678,662 25,856,050 8,977,317 9,890,570
22,655,979
35,746,620
General revenues:
Sales taxes 41,680,345 41,689,482 - - 41,680,345 41,689,482
Property taxes 833,923 553,403 - - 833,923 553,403
Franchise taxes 513,202 507,073 - - 513,202 507,073
State shared
revenues 12,012,620 11,505,675 - - 12,012,620 11,505,675
Investment income 1,954,182 662,797 77,140 187,213 2,031,322 850,010
Miscellaneous
revenues 1,162,442 885,174 21,618 29,580 1,184,060 914,754
Total revenues 84,679,148 96,714,638 16,780,622 17,512,762 101,459,770 114,227,400
Expenses:
General government 23,846,702 18,491,725 - - 23,846,702 18,491,725
Public safety 16,059,514 16,114,146 - - 16,059,514 16,114,146
Highways and streets 21,628,981 27,892,754 - - 21,628,981 27,892,754
Health and welfare 452,623 236,628 - - 452,623 236,628
Economic and
community
development 4,075,777 4,328,283 - - 4,075,777 4,328,283
Culture and
recreation 5,293,684 5,146,978 - - 5,293,684 5,146,978
Interest on long-term
debt 1,858,162 3,076,938 - - 1,858,162 3,076,938
Water - - 6,178,368 5,979,081 6,178,368 5,979,081
Wastewater - - 5,275,474 4,598,115 5,275,474 4,598,115
Airport - - 1,395,167 1,816,222 1,395,167 1,816,222
Total expenses 73,215,443 75,287,452 12,849,009 12,393,418 86,064,452 87,680,870
Increase/(decrease)
in net position before
transfers
11,463,705
21,427,186
3,931,613
5,119,344
15,395,318
26,546,530
Transfers
(687,684)
1,875,230
687,684
(1,875,230)
-
-
Increase/(decrease)
in net position
10,776,021
23,302,416
4,619,297
3,244,114
15,395,318
26,546,530
Net position,
beginning of year, as
restated
269,721,704
246,419,288
91,857,430
88,613,316
361,579,134
335,032,604
Net position, end of
year
$280,497,725
$269,721,704 $96,476,727 $91,857,430 $376,974,452 $361,579,134
Marana Study Session 01/14/2020 Page 34 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Governmental Activities. Governmental activities increased net position by $10.8 million for fiscal year ended
June 30, 2019. This increase is attributable to unspent proceeds for capital projects. Also, as previously mentioned,
the economic resources measurement focus is used for reporting government-wide financial information, as such,
there were contributions of infrastructure assets of $3.3 million, which contributed to the increase in governmental
net position.
Transfers increased by $2.6 million from the prior year. Primarily the $0.7 million of transfers are contributions
from governmental activities to Airport and Wastewater for operating and debt service expenses offset by
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, 2019 Year Ended June 30, 2018
Total Net (Expense)/ Total Net (Expense)/
Expenses Revenue Expenses Revenue
Governmental Activities
General government $ 23,846,702 $ (18,533,251) $ 18,491,725 $ (12,954,447)
Public safety 16,059,514 (15,017,500) 16,114,146 (15,148,667)
Highways and streets 21,628,981
(11,770,786) 27,892,754
(1,349,573)
Health and welfare 452,623 (333,394) 236,628 (212,948)
Economic and community
development 4,075,777 4,211,878 4,328,283 1,967,506
Culture and recreation 5,293,684 (3,391,794) 5,146,978 (3,601,351)
Interest on long-term debt 1,858,162 (1,858,162) 3,076,938 (3,076,938)
Total $ 73,215,443 $ (46,693,009) $ 75,287,452 $ (34,376,418)
Business-Type Activities
Water 6,178,368 $ 3,005,960 5,979,081 $ 6,387,711
Wastewater 5,275,474 (1,220,628) 4,598,115 7,686
Airport 1,395,167 2,047,523 1,816,222 (1,492,846)
Total $ 12,849,009 $ 2,047,523 $ 12,393,415 $ 4,902,551
• The cost of all governmental activities this year was $73.2 million. The 2.8 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 $6.7 million.
• Net cost of governmental activities of $46.7 million was largely financed by general revenues, which are
made up of primarily sales taxes totaling $41.7 million and state shared revenues of $12 million.
• The Wastewater fund expenses increased $0.7 million or 14.7 percent. This is primarily due to an increase
in interest expense paid for long-term debt.
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
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TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
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 $26.5 million are 36.2 percent of expenses for fiscal year 2019, down from 54.3 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 49.2 percent, followed by capital grants and contributions at 16.1 percent, State shared revenues at
14.2 percent, and charges for services at 12.5 percent. This is consistent with the allocation of revenues collected
in the previous year. The Town’s largest expense category is general government at 32.6 percent, followed by
highways and streets at 29.5 percent and public safety at 22 percent. Last year the highways and streets category
was the largest, but with the completion of the Tangerine Corridor project, the general government category has
more expenses.
Marana Study Session 01/14/2020 Page 36 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 37 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Business-type Activities
Business-type activities’ net position increased by $4.6 million for fiscal year ended June 30, 2019. This increase is
largely related to capital contributions in the Airport fund of grant reimbursed infrastructure. Charges for services
increased slightly due to continued growth.
Capital grants and contributions decreased by $0.9 million or 9.2 percent. This was primarily due to a decrease in
infrastructure contributed to the Town from developers for Water and Wastewater related infrastructure. This
decrease was offset by the increase in capital grants provided to the Airport for the construction project to rehab
aprons and taxiways.
Business-type activity expenses increased by $0.5 million or 3.7 percent primarily due to increased interest expense
paid in Wastewater.
The Town’s largest overall business-type activity is the Water Utility with $6.2 million in expenses and $9.2 million in
program revenues during the year. The second largest activity is the Wastewater Utility with $5.3 million in
expenses and $4.1 million in program revenues, followed by the Airport with $1.4 million in expenses and $3.4
million in program revenues. With the exception of capital grants and contribution revenues, the expenses and
revenues were consistent with the prior year collections and spending.
As seen on the following graph, the largest revenue source for the Town’s business-type activities is capital grants
and contributions at 53.5 percent followed by charges for services revenues at 45.9percent.
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TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds. The focus of the Town’s governmental funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s
financing requirements. In particular, unrestricted fund balance may serve as a useful measure of the Town’s net
resources available for spending at the end of the fiscal year.
The financial performance of the Town as a whole is reflected in its governmental funds. As of June 30, 2019, the
Town’s governmental funds reported a combined fund balance of $78.1 million, of which $31.5 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 $36.6 million. Revenues
and expenditures increased slightly from the previous year. The primary increases in revenues were related to sales
taxes, intergovernmental, and investment income. The increase in expenditures relates to team based increases for
employees.
The Sales Tax Capital Fund was created to collect a half-cent tax to fund the construction of the Police Facility. The
Town Council agreed to sunset the tax when the collections reached $18 million. This occurred in December 2018
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TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
and the tax was repealed as of January 1, 2019. The remaining cash in the fund will be utilized in early FY 2020 to
eliminate the accounts payable balance.
The Transportation Fund had a fund balance of $13.4 million which reflected a decrease of $3.6 million from a year
earlier. While sales tax revenues increased slightly, expenditures increased $7.6 million or 202.7 percent due to the
Ina Road pavement reconstruction, Ina Road bridge, and Coachline Blvd. pavement reconstruction projects.
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
$96.5 million, $98.3 million comprised the funds’ net investment in capital assets. $0.4 million is restricted for debt
service and unrestricted net position of ($2.2) 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, licenses,
permits and fees, and investment income. 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 $7
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 3 – 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, 2019 the Town had invested $427.3 million in governmental and business-type
capital assets (net of accumulated depreciation). Total depreciation expense for the year was $22 million, with
$18.3 million attributed to governmental activities and $3.7 million to business-type activities.
The following schedule presents capital asset balances for the fiscal years ended June 30, 2019 and June 30, 2018.
Additional information on the Town’s capital assets can be found in Note 5.
Marana Study Session 01/14/2020 Page 40 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Governmental Activities Business-type Activities Total
As of As of As of As of As of As of
June 30, 2019 June 30, 2018
June 30,
2019
June 30,
2018 June 30, 2019 June 30, 2018
Land $ 8,277,460 $ 7,659,942 $ 4,442,146 $ 4,465,411 $ 12,719,606 $ 12,125,353
Water rights
-
- 4,392,222 4,430,930
4,392,222
4,430,930
Construction in
progress
18,470,334
60,357,654
6,581,163
30,315,856
25,051,497
90,673,510
Buildings and
improvements
64,740,452
45,295,675
137,184,413
107,883,970
201,924,865
153,179,645
Machinery and
equipment
24,245,618
20,335,042
1,756,329
1,575,133
26,001,947
21,910,175
Infrastructure
410,207,775
368,364,932
-
-
410,207,775
368,364,932
Less:
Accumulated
depreciation
(221,325,613)
(203,998,565)
(31,675,020)
(28,603,114)
(253,000,633)
(232,601,679)
Total
$304,616,026
$298,014,680
$122,681,253
$120,068,186
$427,297,279
$418,082,866
Major capital asset events during the current fiscal year included the following:
• The widening of Tangerine Road Phase I was completed at a total cost of $32.3 million.
• Completion of the wastewater reclamation facility expansion for $26.7 million.
• Completion of the groundwater recharge facility of $2.9 million.
• Completion of the new Police Facility at a cost of $21.8 million.
• Completion of the Tangerine Sky Community Park for $3.9 million.
• Completion of the splash pad at Crossroads at Silverbell District Park for $874,565.
• Design and construction of Marana Road Realignment (construction in progress as of the close of the
fiscal year had reached $2.5 million).
• Design and construction to rehab portions of the Airport apron and taxiway (construction in progress as
of the close of the fiscal year had reached $4 million).
Debt Administration. At year-end, the Town had $106 million in long-term debt obligations outstanding with
$7.4 million due within one year.
The Town had new debt adding $4.4 million. The Town also had reductions of $6.2 million during the current fiscal
year due to regularly scheduled principal payments and premium amortizations. This resulted in an overall reduction
to debt of $1.8 million.
The following table presents a summary of the Town’s outstanding debt for the fiscal years ended June 30, 2019
and June 30, 2018. Additional information on the Town’s long-term obligations can be found in Note 6.
Marana Study Session 01/14/2020 Page 41 of 259
TOWN OF MARANA, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2019
Governmental Activities Business-type Activities Total
2019 2018 2019 2018 2019 2018
General
obligation bonds
$11,385,000 $ 7,745,000 $ - $ - $ 11,385,000 $ 7,745,000
Revenue bonds
47,945,000
50,465,000
19,780,000
19,780,000
67,725,000
70,245,000
Revenue bonds
– Direct
Placements 4,706,000 5,370,000 760,000 939,000 5,466,000 6,309,000
Special
assessment
bonds
12,126,000
14,200,132
-
-
12,126,000
14,200,132
Loan payable
-
-
3,503,598
3,201,572
3,503,598
3,201,572
Deferred bond
premium 5,507,092 5,812,929 350,870 370,558 5,857,962 6,183,487
Total $81,669,092 $83,593,061 $24,394,468 $24,291,130 $106,063,560 $107,884,191
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES
The Town of Marana is continuing the development of its Make Marana 2040 General Plan in the next fiscal year.
With the anticipation of the population exceeding 50,000 at the 2020 census count, it is more important than ever
to make sure we are planning well for the future. The Fiscal Year 2019-2020 budget exhibits the Town’s balanced
approach to responsible fiscal policy and positive investment in the community. The Town continues to invest in the
five Focus Areas of our Strategic Plan.
The Town has historically been committed to the highest level of service for our residents and business customers,
and that tradition continues in the FY 2019-20 budget. The Town will be investing in the development of a single
software solution to manage our permitting and licensing services. The Town will be investing in additional positions
to bring efficiencies directly to our customer base and commercial community. Also, the Town will be investing in
physical infrastructure to address facilities in the neediest of areas and projects that will affect all residents.
The 2019-20 budget increased by $2.1 million or 1.5%. Several key revenues like sales taxes, State shared
revenues, building permits and planning fees increased modestly during the fiscal year. There are increases to
funds across the board, however, the capital projects funds had a reduction of $21.5 million or 48.12 percent due to
the completion of several major capital projects. The budget is structurally balanced with ongoing revenues
supporting ongoing program expenditures. The budget document is the comprehensive decision making tool
resulting from the annual budget process. The budget is a long-range plan by which financial policy is implemented
and controlled.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general
overview of the Town’s finances and to demonstrate the Town’s accountability for the resources it receives. If you
have questions about this report or need additional information, contact the Finance Department, Town of Marana,
Arizona at 11555 West Civic Center Drive, Marana, Arizona 85653, or visit www.MaranaAZ.gov.
Marana Study Session 01/14/2020 Page 42 of 259
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BASIC FINANCIAL STATEMENTS
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GOVERNMENT-WIDE FINANCIAL STATEMENTS
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TOWN OF MARANA, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2019
Governmental
Activities
Business-type
Activities Total
ASSETS
Current assets:
Cash and cash equivalents 65,189,616$ 7,893,706$ 73,083,322$
Property taxes receivable 5,196 - 5,196
Accounts receivable 1,778,977 1,343,825 3,122,802
Interest receivable 146,337 - 146,337
Due from other governments 6,886,808 2,032,318 8,919,126
Internal balances 1,288,817 (1,288,817) -
Prepaid items 331,913 69,020 400,933
Total current assets 75,627,664 10,050,052 85,677,716
Noncurrent assets:
Assessment receivable 9,679,000 - 9,679,000
Restricted cash and investments 4,358,336 365,485 4,723,821
Internal balances 6,582,879 (6,582,879) -
Capital assets not depreciated 26,747,794 15,415,531 42,163,325
Capital assets (net of depreciation)277,868,232 107,265,722 385,133,954
Total noncurrent assets 325,236,241 116,463,859 441,700,100
Total assets 400,863,905 126,513,911 527,377,816
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 7,122,319 336,775 7,459,094
Deferred charge on refunding 1,603,406 - 1,603,406
Total deferred outflows of resources 8,725,725 336,775 9,062,500
LIABILITIES
Current liabilities:
Accounts payable 4,154,096 2,124,837 6,278,933
Accrued payroll and employee benefits 746,151 50,456 796,607
Unearned revenue 307,981 - 307,981
Deposits held for others 926,377 776,144 1,702,521
Due to other government 89,271 244,222 333,493
Claims payable 302,480 - 302,480
Accrued interest payable 1,498,805 458,464 1,957,269
Compensated absences 1,063,404 94,647 1,158,051
Loan payable - 760,733 760,733
General obligation bonds - CFD 365,000 - 365,000
Special assessment bonds - TRFID 2,447,000 - 2,447,000
Revenue bonds 3,624,000 184,000 3,808,000
Total current liabilities 15,524,565 4,693,503 20,218,068
Noncurrent liabilities:
Compensated absences 118,156 10,516 128,672
Net pension liablity 35,062,702 1,972,729 37,035,431
Loan payable - 2,742,865 2,742,865
General obligation bonds - CFD 11,876,601 - 11,876,601
Special assessment bonds - TRFID 9,679,000 - 9,679,000
Revenue bonds 53,677,491 20,706,870 74,384,361
Total non-current liabilities 110,413,950 25,432,980 135,846,930
Total liabilities 125,938,515 30,126,483 156,064,998
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pensions 3,153,390 247,476 3,400,866
Total deferred inflows of resources 3,153,390 247,476 3,400,866
NET POSITION
Net investment in capital assets 243,685,340 98,286,785 341,972,125
Restricted for:
Capital projects 12,584,051 - 12,584,051
Debt service - 365,485 365,485
General government 2,955,944 - 2,955,944
Public safety 1,246,972 - 1,246,972
Highways and streets 3,016,884 - 3,016,884
Economic and community development 181,433 - 181,433
Unrestricted 16,827,101 (2,175,543)14,651,558 Total net position 280,497,725$ 96,476,727$ 376,974,452$
Marana Study Session 01/14/2020 Page 48 of 259
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary Government
Governmental activities:
General government 23,846,702$ 4,819,947$ 463,242$ 30,262$
Public safety 16,059,514 23,220 1,018,794 -
Highways and streets 21,628,981 68,907 650,524 9,138,764
Health and welfare 452,623 95,727 23,502 -
Economic and community
development 4,075,777 5,260,138 74,956 2,952,561
Culture and recreation 5,293,684 316,729 28,086 1,557,075
Interest on long-term debt 1,858,162 - - -
Total governmental activities 73,215,443 10,584,668 2,259,104 13,678,662
Business-type activities:
Water 6,178,368 5,749,523 - 3,434,805
Wastewater 5,275,474 1,626,394 - 2,428,452
Airport 1,395,167 328,630 - 3,114,060
Total business-type activities 12,849,009 7,704,547 - 8,977,317 Total primary government 86,064,452$ 18,289,215$ 2,259,104$ 22,655,979$
General revenues:
Taxes:
Sales taxes
Property taxes
Franchise taxes
State shared revenues, unrestricted
Investment income
Miscellaneous
Transfers
Total general revenues and transfers
Changes in net position
Net position, beginning of year
Net position, end of year
The notes to the financial statements are an integral part of this statement.
TOWN OF MARANA, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 49 of 259
Net (Expense) Revenue and Changes in Net Position
Governmental
Activities
Business-type
Activities Totals
(18,533,251)$ -$ (18,533,251)$
(15,017,500) - (15,017,500)
(11,770,786) - (11,770,786)
(333,394) - (333,394)
4,211,878 - 4,211,878
(3,391,794) - (3,391,794)
(1,858,162) - (1,858,162)
(46,693,009) - (46,693,009)
- 3,005,960 3,005,960
- (1,220,628) (1,220,628)
- 2,047,523 2,047,523
- 3,832,855 3,832,855
(46,693,009) 3,832,855 (42,860,154)
41,680,345 - 41,680,345
833,923 - 833,923
513,202 - 513,202
12,012,620 - 12,012,620
1,954,182 77,140 2,031,322
1,162,442 21,618 1,184,060
(687,684) 687,684 -
57,469,030 786,442 58,255,472
10,776,021 4,619,297 15,395,318
269,721,704 91,857,430 361,579,134
280,497,725$ 96,476,727$ 376,974,452$
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FUND FINANCIAL STATEMENTS
Marana Study Session 01/14/2020 Page 52 of 259
General Fund
Highway User
Revenue
Tangerine Farms
Improvement
District Debt
Service
ASSETS
Cash and cash equivalents 28,126,689$ 2,908,438$ 1,142,921$
Property taxes receivable - - -
Accounts receivable 230,851 - -
Special assessments receivable - - 11,165,585
Interest receivable 63,664 - -
Development agreement receivable - - -
Due from other governments 4,237,717 344,276 -
Due from other funds 6,446,748 - -
Prepaid items 330,333 - -
Restricted cash and investments - - -
Total assets 39,436,002$ 3,252,714$ 12,308,506$
LIABILITIES
Accounts payable 903,748$ 235,830$ 295$
Accrued payroll and employee benefits 728,362 - -
Due to other funds - - -
Due to other governments 89,271 - -
Deposits held for others 861,404 - -
Unearned revenue 297,361 - -
Total liabilities 2,880,146 235,830 295
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - 11,165,585
Total deferred inflows of resources - - 11,165,585
FUND BALANCES (DEFICITS)
Nonspendable 4,513,212 - -
Restricted - 3,016,884 1,142,626
Unassigned 32,042,644 - -
Total fund balances (deficits)36,555,856 3,016,884 1,142,626
Total liabilities, deferred inflow of
resources, and fund balances (deficits) 39,436,002$ 3,252,714$ 12,308,506$
TOWN OF MARANA, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2019
The notes to the financial statements are an integral part of this statement.
Marana Study Session 01/14/2020 Page 53 of 259
Sales Tax
Capital Transportation
Non-Major
Governmental
Funds
Total
Governmental
Funds
121,256$ 7,268,246$ 24,554,327$ 64,121,877$
- - 5,196 5,196
- - 3,189 234,040
- - - 11,165,585
- 68,269 14,404 146,337
- - 58,352 58,352
- 1,328,194 976,621 6,886,808
- 2,400,000 - 8,846,748
- - 1,580 331,913
- 4,358,336 - 4,358,336
121,256$ 15,423,045$ 25,613,669$ 96,155,192$
121,256$ 2,036,583$ 525,375$ 3,823,087$
- - 17,789 746,151
- - 975,052 975,052
- - - 89,271
- 2,573 62,400 926,377
- - 10,620 307,981
121,256 2,039,156 1,591,236 6,867,919
- - 58,370 11,223,955
- - 58,370 11,223,955
- - 1,580 4,514,792
- 13,383,889 24,524,608 42,068,007
- - (562,125) 31,480,519
- 13,383,889 23,964,063 78,063,318
121,256$ 15,423,045$ 25,613,669$ 96,155,192$
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Total governmental fund balances 78,063,318$
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 525,941,639$
Less accumulated depreciation (221,325,613) 304,616,026
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 (1,181,560)
Revenue bonds payable (52,651,000)
General obligation bonds payable (11,385,000)
Special assessment bonds (12,126,000)
Net pension liability (35,062,702)
Accrued interest payable (1,498,805) (113,905,067)
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.434,250
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 (5,507,092)
Deferred charge on refunding 1,603,406
Deferred inflows related to pensions (3,153,390)
Deferred outflows related to pensions 7,122,319 65,243
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 58,370
Special assessments revenue 11,165,585 11,223,955
Net position of governmental activities 280,497,725$
The notes to the financial statements are an integral part of this statement.
TOWN OF MARANA, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
Marana Study Session 01/14/2020 Page 56 of 259
General Fund
Highway User
Revenue
Tangerine Farms
Improvement
District Debt
Service
Revenues:
Sales taxes 28,972,724$ -$ -$
Property taxes - - -
Intergovernmental 12,012,620 3,618,444 -
Licenses, fees & permits 5,774,930 - -
Fines, forfeitures & penalties 527,447 - -
Charges for services 717,709 - -
Lease income 147,564 - -
Special assessments - - 2,868,657
Contributions 22,342 - -
Investment income 1,226,150 29,130 -
Miscellaneous 745,967 - -
Total revenues 50,147,453 3,647,574 2,868,657
Expenditures:
Current -
General government 12,440,607 - -
Public safety 14,543,987 - -
Highways and streets 2,560,421 2,418,171 -
Health and welfare 290,168 - -
Economic and community development 4,381,492 - -
Culture and recreation 4,559,653 - -
Capital outlay 897,844 68,528 -
Debt service -
Principal retirement - - 2,074,132
Interest and fiscal charges - - 359,317
Bond issuance costs - - -
Total expenditures 39,674,172 2,486,699 2,433,449
Excess (deficiency) of revenues over
expenditures 10,473,281 1,160,875 435,208
Other financing sources (uses):
Face value of bonds issued - - -
Premium on bonds issued - - -
Proceeds from sale of capital assets 225,568 - -
Transfers in - - -
Transfers out (3,730,916) - -
Total other financing sources (uses)(3,505,348) - -
Changes in fund balances 6,967,933 1,160,875 435,208
Fund balances (deficits), beginning of year 29,587,923 1,856,009 707,418
Fund balances (deficits), end of year 36,555,856$ 3,016,884$ 1,142,626$
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2019
The notes to the financial statements are an integral part of this statement.
Marana Study Session 01/14/2020 Page 57 of 259
Sales Tax
Capital Transportation
Non-Major
Governmental
Funds
Total
Governmental
Funds
2,944,927$ 8,101,699$ 1,660,995$ 41,680,345$
- - 833,924 833,924
- - 4,409,228 20,040,292
- - 4,259,833 10,034,763
- - 109,142 636,589
- - - 717,709
- - - 147,564
- - - 2,868,657
- - 26,646 48,988
21,996 394,523 282,383 1,954,182
- - 11,528 757,495
2,966,923 8,496,222 11,593,679 79,720,508
- 730,617 849,458 14,020,682
- - 958,317 15,502,304
- 31,592 20,907 5,031,091
- - - 290,168
- - 362,893 4,744,385
- - 53,530 4,613,183
6,027,015 10,611,881 6,872,527 24,477,795
- - 3,389,000 5,463,132
- - 2,745,649 3,104,966
- - 314,002 314,002
6,027,015 11,374,090 15,566,283 77,561,708
(3,060,092) (2,877,868) (3,972,604) 2,158,800
- - 3,845,000 3,845,000
- - 87,744 87,744
- - 225,568
- 45,514 6,036,574 6,082,088
- (808,297) (2,230,559) (6,769,772)
- (762,783) 7,738,759 3,470,628
(3,060,092) (3,640,651) 3,766,155 5,629,428
3,060,092 17,024,540 20,197,908 72,433,890
-$ 13,383,889$ 23,964,063$ 78,063,318$
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Net changes in fund balances - total governmental funds 5,629,428$
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 21,681,322$
Less current year depreciation (18,250,493) 3,430,829
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.
Debt issued (3,845,000)
Premium on bonds (87,744)
Special assessment bond retirement 2,074,132
General obligation bond retirement 205,000
Revenue bond principal retirement 3,184,000 1,530,388
Contributions of infrastructure assets are not recorded as revenues
in the governmental funds.3,295,904
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 81,253
Developer contributions (370,423)
Intergovernmental revenue 47,846
Special assessments (2,594,750)
Compensated absences (31,268)
Proceeds from the sale of capital assets (225,568)
Gain on sale of assets 100,181
Amortization of deferred charges 245,685 (2,747,044)
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 3,577,656
Town proportionate share of State's appropriation to EORP 83,092
Pension expense (3,998,473) (337,725)
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.(25,759)
Change in net position in governmental activities 10,776,021$
The notes to the financial statements are an integral part of this statement.
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, 2019
Marana Study Session 01/14/2020 Page 60 of 259
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2019
Budgeted Amounts
Original Final Actual
Revenues:
Sales taxes 26,284,560$ 26,284,560$ 28,972,724$ 2,688,164$
Intergovernmental 11,748,196 11,748,196 12,012,620 264,424
Licenses, fees & permits 4,844,203 4,844,203 5,774,930 930,727
Fines, forfeitures & penalties 585,000 585,000 527,447 (57,553)
Charges for services 570,781 570,781 717,709 146,928
Lease income 125,000 125,000 147,564 22,564
Contributions 47,600 47,600 22,342 (25,258)
Investment income 185,000 185,000 1,226,150 1,041,150
Miscellaneous 415,669 415,669 745,967 330,298
Total revenues 44,806,009 44,806,009 50,147,453 5,341,444
Expenditures:
General government:
General government 6,983,318 6,731,095 2,122,209 4,608,886
Town council 338,036 338,036 323,695 14,341
Town clerk 583,948 583,948 423,310 160,638
Town manager 1,898,946 1,898,946 1,613,160 285,786
Human resources 913,548 913,548 839,370 74,178
Facilities 2,239,365 2,239,365 1,095,879 1,143,486
Finance 1,205,031 1,205,031 1,014,486 190,545
Legal 1,005,575 1,005,575 960,894 44,681
Technology services 3,446,181 3,446,181 3,092,003 354,178
Municipal courts 1,058,027 1,058,027 955,601 102,426
Public Safety:
Police 13,894,716 13,894,716 13,549,721 344,995
Building safety 1,183,846 1,183,846 977,602 206,244
Code Enforcement 47,700 32,700 16,664 16,036
Highways and streets:
Public works 3,000,024 3,000,024 2,560,421 439,603
Health and welfare:
Animal Services 330,462 315,462 290,168 25,294
Economic and community development:
Development services 4,284,029 4,284,029 3,475,925 808,104
Economic development and tourism 284,506 284,506 264,536 19,970
Community development 618,080 648,080 641,031 7,049
Culture and recreation:
Parks and recreation 5,245,954 5,245,954 4,559,653 686,301
Capital outlay 1,255,049 1,507,272 897,844 609,428
Total expenditures 49,816,341 49,816,341 39,674,172 10,142,169
Excess (deficiency) of revenues over
expenditures (5,010,332) (5,010,332) 10,473,281 15,483,613
Other financing sources (uses):
Proceeds from the sale of capital assets 150,000 150,000 225,568 75,568
Transfers out (3,681,371) (3,681,371) (3,730,916) (49,545)
Total other financing sources (uses)(3,531,371) (3,531,371) (3,505,348) 26,023
Changes in fund balances (8,541,703) (8,541,703) 6,967,933 15,509,636
Fund balances, beginning of year - - 29,587,923 29,587,923
Fund balances, end of year (8,541,703)$ (8,541,703)$ 36,555,856$ 45,097,559$
Variance -
Positive
(Negative)
Marana Study Session 01/14/2020 Page 61 of 259
Budgeted Amounts
Original Final Actual
Variance -
Positive
(Negative)
Revenues:
Intergovernmental 3,268,578$ 3,268,578$ 3,618,444$ 349,866$
Investment income 7,500 7,500 29,130 21,630
Total revenues 3,276,078 3,276,078 3,647,574 371,496
Expenditures:
Current -
Highways and streets 3,521,957 3,619,222 2,418,171 1,201,051
Capital outlay 379,092 281,827 68,528 213,299
Total expenditures 3,901,049 3,901,049 2,486,699 1,414,350
Excess (deficiency) of revenues over
expenditures (624,971) (624,971) 1,160,875 1,785,846
Fund balances, beginning of year - - 1,856,009 1,856,009
Fund balances, end of year (624,971)$ (624,971)$ 3,016,884$ 3,641,855$
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - HIGHWAY USER REVENUE FUND
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 62 of 259
TOWN OF MARANA, ARIZONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2019
Business-type Activities
Governmental
Activities
Water Wastewater Airport
Total Enterprise
Funds
Internal Service
Funds
ASSETS
Current assets:
Cash and cash equivalents 4,988,169$ 2,905,537$ -$ 7,893,706$ 1,067,739$
Accounts receivable 854,512 344,212 145,101 1,343,825 -
Due from governments 470,803 31,820 1,529,695 2,032,318 -
Prepaid items 66,372 - 2,648 69,020 -
Total current assets 6,379,856 3,281,569 1,677,444 11,338,869 1,067,739
Noncurrent assets:
Restricted cash 365,485 - - 365,485 -
Capital assets not depreciated 6,655,815 3,170,766 5,588,950 15,415,531 -
Capital assets (net of depreciation)32,810,651 61,203,114 13,251,957 107,265,722 -
Total noncurrent assets 39,831,951 64,373,880 18,840,907 123,046,738 -
Total assets 46,211,807 67,655,449 20,518,351 134,385,607 1,067,739
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pensions 238,739 67,574 30,462 336,775 -
Total deferred outflows of
resources 238,739 67,574 30,462 336,775 -
LIABILITIES
Current liabilities:
Accounts payable 1,037,613 69,189 1,018,035 2,124,837 331,009
Accrued payroll and employee benefits 33,160 11,825 5,471 50,456 -
Claims payable - - - - 302,480
Compensated absences 59,803 19,191 15,653 94,647 -
Due to other funds - 250,000 1,038,817 1,288,817 -
Deposits held for others 776,144 - - 776,144 -
Due to other governments 244,222 - - 244,222 -
Bonds payable - current 184,000 - - 184,000 -
Loan payable - current 760,733 - - 760,733 -
Interest payable 53,930 404,534 - 458,464 -
Total current liabilities 3,149,605 754,739 2,077,976 5,982,320 633,489
Noncurrent liabilities:
Due to other funds - 5,261,943 1,320,936 6,582,879 -
Compensated absences 6,645 2,132 1,739 10,516 -
Bonds payable 576,000 20,130,870 - 20,706,870 -
Loan payable 2,742,865 - - 2,742,865 -
Net pension liability 1,565,088 221,898 185,743 1,972,729 -
Total non-current liabilities 4,890,598 25,616,843 1,508,418 32,015,859 -
Total liabilities 8,040,203 26,371,582 3,586,394 37,998,179 633,489
DEFERRED INFLOWS OF RESOURCES
Resources related to pensions 192,719 30,256 24,501 247,476 -
Total deferred inflows of
resources 192,719 30,256 24,501 247,476 -
NET POSITION
Net investment in capital assets 35,202,868 44,243,010 18,840,907 98,286,785 -
Restricted for debt service 365,485 - - 365,485 -
Unrestricted 2,649,271 (2,921,825) (1,902,989) (2,175,543) 434,250
Total net position 38,217,624$ 41,321,185$ 16,937,918$ 96,476,727$ 434,250$
The notes to the financial statements are an integral part of this statement.
Marana Study Session 01/14/2020 Page 63 of 259
TOWN OF MARANA, ARIZONA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Business-type Activities
Governmental
Activities
Water Wastewater Airport
Total Enterprise
Funds
Internal Service
Funds
Operating revenues:
Licenses, fees & permits -$ 26,849$ -$ 26,849$ -$
Charges for services 5,749,523 1,599,545 328,630 7,677,698 4,401,982
Miscellaneous - - 21,618 21,618 -
Total operating revenues 5,749,523 1,626,394 350,248 7,726,165 4,401,982
Operating expenses:
Personnel costs 1,745,579 537,218 257,771 2,540,568 -
Contractual services 200,965 164,607 27,478 393,050 749,261
Commodities 1,629,100 255,789 51,987 1,936,876 -
Other 1,232,255 5,980 116,199 1,354,434 3,678,480
Depreciation expense 1,186,802 1,616,592 941,732 3,745,126 -
Total operating expenses 5,994,701 2,580,186 1,395,167 9,970,054 4,427,741
Operating income (loss)(245,178) (953,792) (1,044,919) (2,243,889) (25,759)
Nonoperating revenues (expenses):
Investment income 57,683 19,457 - 77,140 -
Interest expense (62,971) (1,193,915) - (1,256,886) -
Gain (loss) on disposal of capital assets (120,696) (1,501,373) - (1,622,069) -
Total nonoperating revenues
(expenses)(125,984) (2,675,831) - (2,801,815) -
Net income (loss) before contributions
and transfers (371,162) (3,629,623) (1,044,919) (5,045,704) (25,759)
Development fees 2,609,749 1,627,255 - 4,237,004 -
Capital contributions 825,056 801,197 3,114,060 4,740,313 -
Transfers in 590,923 1,492,082 810,489 2,893,494 -
Transfers out (1,304,668) (901,142) - (2,205,810) -
Changes in net position 2,349,898 (610,231) 2,879,630 4,619,297 (25,759)
Net position, beginning of year 35,867,726 41,931,416 14,058,288 91,857,430 460,009
Net position, end of year 38,217,624$ 41,321,185$ 16,937,918$ 96,476,727$ 434,250$
The notes to the financial statements are an integral part of this statement.
Marana Study Session 01/14/2020 Page 64 of 259
Business-type Activities
Governmental
Activities
Water Wastewater Airport
Total Enterprise
Funds
Internal Service
Funds
Cash flows from operating activities:
Received from customers 5,056,166$ 1,434,293$ 249,038$ 6,739,497$ 4,401,982$
Payments to suppliers for goods and services (2,506,786) (1,717,617) (197,967) (4,422,370) (4,107,160)
Payments to employees for services (1,852,453) (566,212) (268,001) (2,686,666) -
Other receipts/payments - 26,849 (493,898) (467,049) -
Net cash provided by (used for) operating activities 696,927 (822,687) (710,828) (836,588) 294,822
Cash flows from non-capital activities:
Interfund borrowing - - 346,052 346,052 -
Transfers in 590,923 1,492,082 810,489 2,893,494 -
Transfers out (1,304,668) (901,142) - (2,205,810) -
Net cash provided by (used for) non-capital activities (713,745) 590,940 1,156,541 1,033,736 -
Cash flows from capital activities and related financing
activities:
Capital grants received - 212,645 3,112,077 3,324,722 -
Development fees received 2,609,749 1,627,255 - 4,237,004 -
Loan proceeds 528,026 - - 528,026 -
Principal payments (405,000) - - (405,000) -
Interest paid on debt (68,431) (789,381) - (857,812) -
Proceeds from sale of capital assets - 12,039 23,265 35,304 -
Acquisition and construction of capital assets (1,826,374) (1,174,619) (3,600,965) (6,601,958) -
Net cash provided by (used for) capital activities 837,970 (112,061) (465,623) 260,286 -
Cash flows from investing activities:
Interest on investments 57,683 19,457 - 77,140 -
Net cash provided by investing activities 57,683 19,457 - 77,140 -
Net increase (decrease) in cash and cash equivalents 878,835 (324,351) (19,910) 534,574 294,822
Cash and cash equivalents, beginning of year 4,474,819 3,229,888 19,910 7,724,617 772,917
Cash and cash equivalents, end of year 5,353,654$ 2,905,537$ -$ 8,259,191$ 1,067,739$
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating (loss)(245,178)$ (953,792)$ (1,044,919)$ (2,243,889)$ (25,759)$
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities:
Depreciation 1,186,802 1,616,592 941,732 3,745,126 -
Changes in assets and liabilities:
(Increase) in accounts receivable (239,219) (133,432) (76,944) (449,595) -
(Increase) in due from other governments (470,803) (31,820) (1,525,949) (2,028,572) -
(Increase) in prepaid items (29,199) - (2,648) (31,847) -
(Increase) decrease in deferred outflows of resources related
to pensions 32,269 (476) 4,218 36,011
Increase (decrease) in accounts payable 555,534 (1,271,553) 1,008,130 292,111 323,176
(Decrease) in claims payable - - - - (2,595)
(Decrease) in accrued payroll (5,981) (44,991) (24,150) (75,122) -
Increase (decrease) in compensated absences payable (9,306) (1,746) 1,459 (9,593) -
(Decrease) in accrued liabilities - (19,688) - (19,688) -
Increase in deposits held for others 35,487 - - 35,487 -
Increase in due to other governments 10,377 - - 10,377 -
(Decrease) in net pension liability (223,837) (6,503) (5,704) (236,044)
Increase in deferred inflows of resources related to pensions 99,981 24,722 13,947 138,650
Net cash provided (used) by operating activities 696,927$ (822,687)$ (710,828)$ (836,588)$ 294,822$
Noncash investing, capital and financing activities:
Capital contributions 825,056 588,551 - 1,413,607 -
Amortization of bond premium - (19,688) - - -
Loss on disposal of capital assets (120,696) (1,513,412) - (1,634,108) -
Reconciliation of cash and cash equivalents to the
statement of net position:
Cash and cash equivalents 4,988,169$ 2,905,537$ -$ 7,893,706$ 1,067,739$
Restricted cash 365,485 - - 365,485 -
Total cash and cash equivalents 5,353,654$ 2,905,537$ -$ 8,259,191$ 1,067,739$
TOWN OF MARANA, ARIZONA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
The notes to the financial statements are an integral part of this statement.
Marana Study Session 01/14/2020 Page 65 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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.
For the year ended June 30, 2019, the Town implemented the provisions of GASB Statement No. 88,
Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placement. GASB Statement
No. 88 improves consistency in the information that is disclosed in notes to government financial
statements related to debt, including direct borrowings and direct placements, and provides financial
statement users with additional essential information about debt.
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 various public infrastructure within the districts.
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, the Saguaro Springs Capital Projects and Debt Service Funds, 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.
Marana Study Session 01/14/2020 Page 66 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
These statements are to distinguish between the governmental and business-type activities of the Town.
Governmental activities normally are supported by taxes and intergovernmental revenues, and are
reported separately from business-type activities, which are financed in whole or part by fees charged to
external parties.
The statement of activities demonstrates the degree to which the direct expenses of a given function of
the Town’s governmental activities or segment of its business-type activities are offset by program
revenues. Direct expenses are 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 revenues include 1) charges to customers or applicants who purchase,
use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes, investment income, and other items not included among program
revenues are reported instead as general revenues.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses result from providing services and producing and delivering goods in connection
with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water
Utility, Wastewater Utility, and Airport funds are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-
operating revenues and expenses.
Generally, the effect of interfund activity has been eliminated from the government-wide financial
statements to minimize the double counting of internal activities. However, charges for interfund services
provided and used are not eliminated if doing so would distort the direct costs and program revenues
reported by the departments concerned.
Fund Financial Statements
Fund statements provide information about the Town’s funds, including blended component units.
Separate statements are presented for the governmental and proprietary fund categories. The emphasis
of fund financial statements is on major governmental and enterprise funds, each displayed in a separate
column. All remaining governmental funds are aggregated and reported as non-major funds.
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.
Marana Study Session 01/14/2020 Page 67 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Sales Tax Capital Fund – This fund accounts for sales tax proceeds which are used for authorized
capital improvements.
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
focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are considered to
be available when they are collectible 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. General
capital asset acquisitions are reported as expenditures in governmental funds. Issuances of general long-
term debt and acquisitions under capital lease agreements are reported as other financing sources.
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.
Marana Study Session 01/14/2020 Page 68 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Property taxes are levied by community facility districts, which are component units of the Town and
collected by the Pima County Treasurer and special assessment property taxes are levied and collected by
the Town. All property taxes are levied no later than the third Monday in August and are payable in two
installments due October 1 of the current year and March 1 of the subsequent year. Taxes become
delinquent after the first business day of November and May, respectively. Interest attaches on
installments after the delinquent date. Pursuant to ARS, a lien against assessed real and personal property
attaches on the first day of January preceding assessment and levy; however according to case law, an
enforceable legal claim to the asset does not arise.
Tangerine Farms Road Improvement District (a component unit) issued special assessment bonds for
infrastructure improvements. These bonds will be paid through assessments made to the property owners
within the Tangerine Farms Road Improvement District. The Town is responsible for the collection of the
assessments and the disbursement of funds to retire the bonds. If a delinquency on an assessment
occurs, the Town is required to cover the delinquency with other resources until foreclosure proceeds are
received.
D. Cash and Cash Equivalents
For the purposes of the statement of cash flows, the Town considers all highly liquid investments
(including the funds' participation in the investment pool account, and appropriate restricted assets) to be
cash equivalents. Individual fund investments with a maturity of three months or less when purchased are
considered as cash equivalents.
E. Investments
Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s Local
Government Investment Pool, interest-bearing savings accounts, certificates of deposit, and repurchase
agreements in eligible depositories; bonds or other obligations of the U.S. government that are guaranteed
as to principal and interest by the U.S. government; and bonds of the State of Arizona counties, cities,
towns, school districts, and special districts as specified by statue.
The State Board of Investment provides oversight for the State Treasurer’s pools. The fair value of a
participant’s position in the pool approximates the value of that participant’s pool shares
Nonparticipating interest-earning investment contracts are stated at cost. Money market investments and
participating interest contracts with a remaining maturity of one year or less at time of purchase are stated
at amortized cost. All investments are stated at fair value.
F. Postemployment Benefits
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
plans’ fiduciary net position and additions to/deductions from the plans’ fiduciary net position have been
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. ASRS, EORP, CORP, and PSPRS net OPEB
assets/liabilities or related deferrals have not been recorded, or further disclosed, at June 30, 2019 in
accordance with GASB 75, due to the relative insignificance to the Town’s financial statements.
Marana Study Session 01/14/2020 Page 69 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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
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
of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund
loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All trade and
other receivables are shown net of an allowance for uncollectible amounts.
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.
Marana Study Session 01/14/2020 Page 70 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets is included as part of the capitalized value of the
assets constructed.
Depreciation is provided over the estimated useful lives of such assets using the straight-line method.
These estimated useful lives are as follows:
Years
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
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
after non-operating revenues/expenses in proprietary funds.
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 – 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.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Nonspendable Fund Balance consists of funds that are not in a spendable form, such as inventories and
prepaids, or can be legally or contractually required to be maintained intact.
Restricted Fund Balance consists of funds that are externally imposed by creditors, grantors, contributors,
law or regulations of other governments, or by law imposed through constitutional provisions or enabling
legislation. Committed Fund Balance consists of funds that can only be used for specific purposes
pursuant to constraints imposed by formal action of the Town’s highest level of decision-making authority.
Assigned Fund Balance consists of funds constrained by the Town’s intent to be used for specific purposes,
but are neither restricted nor committed, should be reported as assigned fund balance. This classification
of fund balance must be designated by the Town’s highest level of decision making authority or a Town
official that has been delegated the authority to assign funds. Unassigned Fund Balance consists of the
residual classification for the general fund. This classification represents fund balance that has not been
assigned to other funds and that has not been restricted, committed, or assigned to specific purposes
within the general fund. The General Fund is the only fund that can report a positive unassigned fund
balance and any other governmental fund can report a negative fund balance. When both restricted and
unrestricted resources are available for specific expenditures, restricted resources are considered spent
before unrestricted resources.
As of June 30, 2019, the fund balance details by classification are listed below:
General
Fund
Highway
User
Revenue
Tangerine
Farms
Improvement
District Debt
Service
Sales Tax
Capital Fund
Transportation
Fund
Non-Major
Governmental
Funds
Fund Balances:
Nonspendable:
Prepaid
expenditures $330,333 $ - $ - $ - $ - $ 1,580
Long-term due
from other
funds 4,182,879 - - - - -
Restricted:
Courts - - - - - 1,086,737
Tourism
promotion - - - - - 1,868,782
Police - - - - - 1,198,896
Highways and
streets - 3,016,884 - - - -
Housing
programs - - - - - 181,434
Capital projects - - - - 13,383,889 14,800,943
Debt service - - 1,142,626 - - 5,387,816
Unassigned: 32,042,644 - - - - (562,125)
Total fund
balances: $36,555,856 $3,016,884 $ 1,142,626 $ - $13,383,889 $ 23,964,063
NOTE 3 - BUDGETARY CONTROL
Excess Expenditures Over Budget – At June 30, 2019, 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
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 Grants and Contributions 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, and the Saguaro Springs CFD Capital Fund. The enterprise funds,
Water Utility, Wastewater Utility and Airport, 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 4 - CASH AND INVESTMENTS
A.R.S and the Town’s investment policy authorize investments in the State Treasurer’s local government
investment pools, the County Treasurer’s investment pool, interest-bearing savings accounts, certificates of
deposit, and repurchase agreements in eligible depositories; and bonds or other obligations of the U.S.
government that are guaranteed as to principal and interest by the U.S. government. The statutes do not
include any requirements for credit risk, custodial credit risk, concentration of credit risk, interest rate risk,
or foreign currency risk for the Town’s investments. The State Board of Investment provides oversight for
the State Treasurer’s pools.
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
At June 30, 2019, the carrying amount of the Town’s deposits was $15,497,189 and the bank balance was
$17,356,980. 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, the Town had invested $16,120,246, which had been swept from the Town’s bank
account into an overnight repurchase agreement. Of the remaining bank balance, $831,500 was covered
by Federal depository insurance and $487,194 was covered by collateral held by the pledging financial
institution’s trust department but not in the Town’s name; no portion of the balance was uninsured and
uncollateralized. The Town had $4,425 in petty cash funds, change drawers and other related items at
year end. Additionally, the Town had deposits of $1,681,241 held by Pima County in a fiduciary capacity.
At June 30, 2019, the Town’s investments, categorized within the fair value hierarchy established by
generally accepted accounting principles, were as follows:
Fair value measurement using
Investment by fair value level Amount
Quoted prices in
active markets for
identical assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Federal Home Loan Mortgage Corp. $ 5,684,819 $ - $ 5,684,819 $ -
Federal National Mortgage Assn. 6,990,286 - 6,990,286 -
Federal Home Loan Bank 5,581,156 - 5,581,156 -
U.S. Treasuries 4,911,991 - 4,911,991 -
Total investments by fair value level $ - $ 23,168,252 $ -
External investment pools measured at fair value
State Treasurer’s investment pool 5 17,462,517
State Treasurer’s investment pool 7 1,916,086
Total investments measured at fair
value 42,546,855
Investments measured at amortized costs
Money market investments 18,077,431
Repurchase agreement 16,120,246
Total investments measured at
amortized costs 34,197,677
Total investments $76,744,532
Investments categorized as Level 2 are valued using market-corroborated inputs by evaluating issues with
its best-known market maker. Investments in the State Treasurer’s investment pools are valued at the
pool’s share price multiplied by the number of shares the Town held. The fair value of a participant’s
position in the pools approximates the value of that participant’s pool shares. The State Board of
Investment provides oversight for the State Treasurer’s investment pools.
Interest Rate Risk. Statutes require that public monies invested in securities and deposits have a
maximum maturity of 5 years. The maximum maturity for investments in repurchase agreements is 180
days. In order to limit interest and market rate risk, the Town’s investment policy sets a maximum maturity
on any investment of 3 years. The weighted average maturity (WAM) at June 30, 2019 for Town
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
investments was 447 days. The State Treasurer’s investment policy sets a maximum WAM for pools 5 and
7 not to exceed 90 days.
Credit Risk. As of June 30, 2019, the Town’s investment in the State Treasurer’s investment pool 5 and
pool 7 are specifically 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, 2019 was $1.00. Pool 5 has
continued to maintain the highest credit rating of AAA f/S1+ by Standard & Poor’s. Pool 7 invests in
securities backed by the U.S. Government and has an AAA weighted average rating. The Town’s
investments in U.S. Agencies were rated AA+ by Standard & Poor’s. The 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.
Custodial Credit Risk. To control custodial credit risk, State law and the Town’s investment policy requires
all securities and collateral to be held by an independent third party custodian in the Town’s name. The
custodian provides the Town with monthly safekeeping statements.
The Town’s investment in the State Treasurer’s investment pool represents a proportionate interest in the
pool’s portfolio; however, the Town’s portion is not identified with specific investments and is not subject
to custodial credit risk.
Concentration of Credit Risk. The Town places no limit on the amount it may invest in any one issuer.
More than 5% of the Town’s investments are in U.S. Agencies. These investments are 18% of the Town’s
total investments.
At June 30, 2019, the Town had the following investment in debt securities:
Investment maturities
Investment Type Amount
Less than 1
Year
1-5 Years
Money market investments $ 18,077,431 $ 18,077,431 $ -
Repurchase agreement 16,120,246 16,120,246
State Treasurer’s Investment Pool 5 17,462,517 17,462,517
State Treasurer’s Investment Pool 7 1,916,086 1,916,086
Federal Home Loan Mortgage Corp. 5,684,819 913,986 4,770,833
Federal National Mortgage Assn. 6,990,286 996,310 5,993,976
Federal Home Loan Bank 5,581,156 3,497,641 2,083,515
U.S. Treasuries 4,911,991 3,646,194 1,265,797
Total investments $ 62,630,411 $ 14,114,121
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 5 - CAPITAL ASSETS
The following is a summary of the changes in capital assets for fiscal year ended June 30, 2019:
Governmental Activities
Beginning
Balance
Additions
Deletions
Ending
Balance
Capital assets, not being depreciated:
Land
$ 7,659,942
$ 742,518
$ (125,000)
$ 8,277,460
Construction in progress
60,357,654
18,984,230
(60,871,550)
18,470,334
Total capital assets, not being depreciated
68,017,596
19,726,748
(60,996,550)
26,747,794
Capital assets, being depreciated:
Buildings and improvements
45,295,675
19,444,777
-
64,740,452
Machinery, equipment, and other assets
20,335,042
4,841,842
(931,266)
24,245,618
Infrastructure
368,364,932
41,842,843
-
410,207,775
Total capital assets being depreciated
433,995,649
66,129,462
(931,266)
499,193,845
Less accumulated depreciation for:
Buildings and improvements
(18,682,174)
(1,453,390)
-
(20,135,564)
Machinery, equipment, and other assets
(16,113,823)
(933,327)
930,878
(16,116,272)
Infrastructure
(169,202,568)
(15,871,209)
-
(185,073,777)
Total accumulated depreciation
(203,998,565)
(18,257,926)
930,878
(221,325,613)
Total capital assets, being depreciated, net
229,997,084
47,871,536
(388)
277,868,232
Governmental activities capital assets, net
$298,014,680
$67,598,284
$(60,996,938)
$304,616,026
Governmental activities depreciation expense was charged to function/programs as follows:
Governmental Activities:
General government $ 912,933
Public safety 503,293
Highways and streets 15,020,475
Economic and community development 153,716
Health and Welfare 12,647
Culture and recreation 1,647,429
Total depreciation expense – governmental activities $ 18,250,493
The difference of $7,433 between total increases to accumulated depreciation and total depreciation
expense is due to the inclusion of transfers of capital assets from the business-type activities.
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
A summary of changes in capital assets for business-type activities is as follows:
Business-type depreciation expense was charged to functions/programs as follows:
Business-type Activities:
Airport $ 941,732
Water 1,186,802
Wastewater 1,616,592
Total depreciation expense – business-type activities $ 3,745,126
NOTE 6 – LONG-TERM LIABILITIES
A. Notes Payable
Business-type activities loans payable consists of three loans from the Water Infrastructure Finance
Authority (WIFA), the proceeds of which were used to acquire and construct various water related
infrastructure. The loans are to be repaid in annual principal payments, plus semiannual interest payments,
and a semiannual servicing fee.
During 2010, the Town obtained $5,250,000 in financing from WIFA for the acquisition and construction of
a new water infrastructure. As of year-end, the Town had drawn on $4,690,128 of the loan and returned
$559,872. The interest rate at June 30, 2019 on the outstanding balance is 1.468 percent.
During 2019, the Town obtained $15,000,000 in financing from WIFA for the design and construction of
two water treatment campuses. As of year-end, the Town has drawn on $528,026 of the loan, leaving
$14,471,974 available for drawdown. The interest rate at June 30, 2019 on the outstanding balance is
2.440 percent.
Business-type Activities
Beginning
Balance Additions
Deletions
Ending
Balance
Capital assets, not being depreciated:
Land
$ 4,465,411 $ -
$ (23,265)
$ 4,442,146
Water rights
4,430,930 81,988
(120,696)
4,392,222
Construction in progress
30,315,856 5,899,169
(29,633,862)
6,581,163
Total capital assets, not being depreciated
39,212,197 5,981,157
(29,777,823)
15,415,531
Capital assets, being depreciated:
Buildings, improvements and infrastructure 107,883,970 31,383,804
(2,083,361)
137,184,413
Machinery, equipment, and other assets
1,575,133 284,467
(103,271)
1,756,329
Total capital assets being depreciated
109,459,103 31,668,271
(2,186,632)
138,940,742
Less accumulated depreciation for:
Buildings, improvements and infrastructure (27,552,127) (3,624,486)
587,020
(30,589,593)
Machinery, equipment, and other assets
(1,050,987) (120,640)
86,200
(1,085,427)
Total accumulated depreciation
(28,603,114) (3,745,126)
673,220
(31,675,020)
Total capital assets, being depreciated, net
80,855,989 27,923,145
1,513,412
107,265,722
Business-type activities capital assets, net
$120,068,186 $33,904,302
$(31,291,235)
$122,681,253
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
During 2019, the Town also obtained $1,481,990 in financing from WIFA for the design and construction of
new wastewater infrastructure for the Adonis Mobile Home Park Neighborhood. Fifty percent of the
principal amount is forgivable as the Town applied on behalf of Adonis, a qualified disadvantaged
community. As of year-end, the Town has drawn $212,645 of the forgivable portion, leaving $1,453,006
available for drawdown.
Outstanding
June 30, 2019
$4,690,128 Water Infrastructure Finance Authority loan, due in annual
installments of $201,000 to $312,000; through July 1, 2029; at a 2.968%
interest rate.
$ 2,975,572
$15,000,000 Water Infrastructure Finance Authority loan, 2019 Series, due in
annual installments of $590,762 to $933,973; through July 1, 2038; at a 2.440%
interest rate.
528,026
$740,995 Water Infrastructure Finance Authority loan, Adonis, due in annual
installments of $28,985 to $46,405; through July 1, 2038; at a 2.508% interest
rate.
-
Total $3,503,598
The following is a schedule by years of the debt service requirements for the loan as of June 30, 2019.
Fiscal Year
Principal
Interest
Total
2020
$ 760,733
$ 48,034
$ 808,767
2021
239,614
38,506
278,120
2022
246,726
34,937
281,663
2023
254,049
31,261
285,310
2024 261,589 27,476 289,065
2025 – 2029
1,429,118
75.559
1,504,677
2030 – 2034 311,769 2,288 314,057
Totals
$ 3,503,598
$ 258,061
$ 3,761,659
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, 2019, $875,000 was still outstanding for the
2010 Series refunding.
Saguaro Springs Community Facilities District (a component unit) issued $3,845,000 of Series 2018 general
obligation bonds for infrastructure improvements.
These bonds are payable from the property tax collected by each District. The CFD general obligation
bonds outstanding as reported in governmental activities as of June 30, 2019, were as follows:
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Outstanding
June 30, 2019
$7,955,000 Gladden Farms 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% interest rate.
$ 7,540,000
$3,845,000 Saguaro Springs CFD General Obligation Bonds, 2018 Series, due in
annual installments of $100,000 to $235,000; through July 15, 2043; at a 2.0%
to 4.0% interest rate.
3,845,000
Total $ 11,385,000
Annual debt service requirements to maturity on the CFD general obligation bonds at June 30, 2019, are
summarized as follows:
Year ending
June 30
Principal
Interest
Total
2020
$ 365,000
$ 404,463
$ 769,463
2021
515,000
395,663
910,663
2022
525,000
385,263
910,263
2023
535,000
371,988
906,988
2024
550,000
355,713
905,713
2025 – 2029
3,055,000
1,470,288
4,525,288
2030 – 2034
3,690,000
803,763
4,493,763
2035 – 2039
995,000
328,250
1,323,250
2040 – 2043 1,155,000 115,338 1,270,338
Totals
$ 11,385,000
$ 4,630,727
$ 16,015,727
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, 2019, were as follows:
Outstanding
June 30, 2019
$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%. $ 12,126,000
Annual debt service requirements to maturity on the TFRID special assessment bonds at June 30, 2019,
are summarized as follows:
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Year ending
June 30
Principal
Interest
Total
2020
$ 2,447,000
$ 228,487
$ 2,675,487
2021
1,537,000
189,708
1,726,708
2022
1,568,000
159,583
1,727,583
2023
1,598,000
128,850
1,726,850
2024
1,628,000
97,530
1,725,530
2025-2026
3,348,000
98,745
3,446,745
Totals
$ 12,126,000
$ 902,903
$ 13,028,903
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.
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, 2019, were as follows:
Outstanding June 30, 2019
Governmental
Business-
type
$34,780,000 Pledged Excise Tax Revenue and Revenue Refunding
Obligations, 2013 Series, due in annual installments of $315,000
to $2,570,000; through July 1, 2033; at a 2.0% to 5.0% interest
rate.
$ 28,920,000
$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
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.
19,025,000
$2,565,000 Pledged Excise Tax Revenue Bonds, 2017 Series C, due
in annual installments of $30,000 to $1,980,000; through July 1,
2034; at a 2.0% to 5.0% interest rate.
2,565,000
Total $ 47,945,000 $ 19,780,000
Annual debt service requirements to maturity on revenue bonds at June 30, 2019, are summarized as
follows:
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Governmental Activities Business-type Activities
Year ending
June 30
Principal Interest Principal Interest
2020
$ 2,945,000 $ 2,192,013 $ - $ 809,069
2021
3,030,000 2,091,600 - 809,069
2022
3,150,000 1,961,550 - 809,069
2023
3,800,000 1,806,800 - 809,069
2024
3,970,000 1,662,250 - 809,069
2025-2029
23,180,000 4,838,250 - 4,045,344
2030-2034
7,870,000 988,200 585,000 3,991,969
2035-2039 - - 10,050,000 2,813,484
2040-2042
- - 9,145,000 749,300
Totals
$ 47,945,000 $ 15,500,663 $ 19,780,000 $15,645,441
The Town issued pledged excise tax-revenue and refunding obligation bonds via direct placement to
acquire additional water systems, wastewater systems, infrastructure upgrades, the design and
construction of the new municipal complex and to refund prior issuances.
These bonds are payable from the excise taxes collected by the Town, wastewater utility revenue, and
water utility revenue. The direct placement revenue bonds outstanding as of June 30, 2019 were as
follows:
Outstanding June 30, 2019
Governmental
Business-
type
$6,493,000 Pledged Excise Tax Revenue and Revenue Refunding
Obligations, 2014 Series, due in annual installments of $353,000 to
$735,000; through July 1, 2025; at a 2.55% interest rate.
$ 4,706,000
$1,343,000 Water Utility Revenue Refunding Obligations, 2014 Series, due
in annual installments of $129,000 to $197,000; through July 1, 2022; at
a 2.53% interest rate.
$ 760,000
Total $ 4,706,000 $ 760,000
Annual debt service requirements to maturity on direct placement revenue bonds at June 30, 2019, are
summarized as follows:
Governmental Activities Business-type Activities
Year ending
June 30
Principal Interest Principal Interest
2020
$ 679,000 $ 111,346 $ 184,000 $ 16,900
2021
696,000 93,815 186,000 12,220
2022
715,000 75,824 193,000 7,426
2023
735,000 57,337 197,000 2,492
2024
609,000 40,201 - -
2025-2026
1,272,000 32,615 - -
Totals
$ 4,706,000 $ 411,138 $ 760,000 $ 39,038
Marana Study Session 01/14/2020 Page 82 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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,
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, $72.4 million in bonds remain
outstanding to be repaid by future excise tax revenues and the net revenues available for service of this
debt were $58.0 million. The debt principal and interest paid on this debt during fiscal year 2019 was $6.4
million (11.1% of available net pledged revenues).
In addition, the Town has pledged future water utility revenues to repay $5.2 million in Water
Infrastructure Financing Authority loans and a $1.3 million Revenue Refunding Bond. The loans were
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, $4.3 million remains outstanding to be repaid by
future water revenues. For the fiscal year ended June 30, 2019, the net revenues available for service of
this debt were $3.01 million. The debt principal and interest paid on this debt during fiscal year 2019 was
$518,161.
Under Arizona law, the Town is subject to a debt limit when issuing general obligation bonds for general
municipal purposes not to exceed 6 percent of the full valuation of taxable real property. Also, under
Arizona law, the Town can issue additional general obligation bonds for supplying specific services, such as
water, sewer, lighting, parks and recreational facilities, and transportation, up to an amount not exceeding
20 percent of the full valuation of taxable real property. At June 30, 2019, the total legal debt limit was
$150,581,351. As of June 30, 2019, the total outstanding debt applicable to the limit was zero.
F. Changes in Long-term Liabilities
The following is a summary of changes in long-term liability activity for fiscal year ended June 30, 2019.
Governmental activities:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
General obligation bonds $ 7,745,000 $3,845,000 $ (205,000) $ 11,385,000 $ 365,000
Revenue bonds 50,465,000 - (2,520,000) 47,945,000 2,945,000
Revenue bonds – Direct
Placements 5,370,000 - (664,000) 4,706,000 679,000
Compensated absences 1,150,292 1,006,471 (975,203) 1,181,560 1,063,404
Net pension liability 37,590,750 552,661 (3,080,709) 35,062,702 -
Special assessment bonds 14,200,132 - (2,074,132) 12,126,000 2,447,000
Deferred bond premium 5,812,929 87,744 (393,581) 5,507,092 -
Total $122,334,103 $5,491,876 $(9,912,625) $117,913,354 $7,499,404
Marana Study Session 01/14/2020 Page 83 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Business-type activities:
Loan payable $ 3,201,572 $ 528,026 $ (226,000) $ 3,503,598 $ 760,733
Net pension liability 2,283,139 - (310,410) 1,972,729 -
Revenue bonds 19,780,000 - - 19,780,000 -
Revenue bonds – Direct
Placement 939,000 (179,000) 760,000 184,000
Compensated absences 114,756 78,621 (88,214) 105,163 94,647
Deferred bond premium 370,558 - (19,688) 350,870 -
Total $ 26,689,025 $ 606,647 $ (823,312) $ 26,472,360 $1,039,380
NOTE 7 – 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) $ - $ 297,361
Intergovernmental (Non-Major governmental funds) 58,370 10,620
Special assessments (Tangerine Farms Improvement District
Debt Service Fund)
11,165,585
-
Total deferred amounts for governmental funds $ 11,223,955 $ 307,981
NOTE 8 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
Due to/from other funds:
At June 30, 2019, 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 2018-
2019, these interfund borrowing will be eliminated as sufficient resources become available. A portion of
the amount due from the Airport Fund, $1,320,936 and a portion of the amount due from the Wastewater
Fund, $2,400,000 to the Transportation Fund and $2,861,943 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
Governmental
Funds
Wastewater
Fund
Airport Fund
Total
General Fund $ 975,052 $ 3,111,943 $ 2,359,753 $ 6,446,748
Transportation Fund - 2,400,000 - 2,400,000
Total $ 975,052 $ 5,511,943 $ 2,359,753 $ 8,846,748
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.
Marana Study Session 01/14/2020 Page 84 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Transfers In
Enterprise Funds
Transfers Out
Transportation
Non-Major
Governmental
Funds Water Wastewater Airport Total
General Fund $ 2,300,520 $ 590,923 $ 28,984 $ 810,489 $ 3,730,916
Transportation 808,297 808,297
Non-Major
Governmental Funds 45,514 1,125,471 1,059,574 2,230,559
Water 901,144 403,524 1,304,668
Wastewater 901,142 901,142
Total $ 45,514 $ 6,036,574 $ 590,923 $ 1,492,082 $ 810,489 $ 8,975,582
NOTE 9 - EMPLOYEE RETIREMENT SYSTEMS
All full-time and permanent part-time employees participate in one of four different retirement plans. With
the exception of public safety personnel, police dispatchers and elected officials, all other employees
participate in the Arizona State Retirement System (ASRS). Certified public safety personnel participate in
the Public Safety Retirement Systems (PSPRS). Police dispatch and communication staff participate in the
Corrections Officer Retirement Plan (CORP). The Town’s Mayor and Council Members participate in the
Elected Officials’ Retirement Plan (EORP).
At June 30, 2019, the Town reported the following aggregate amounts related to pensions for all plans to
which it contributes:
Statement of Net Position and
Statement of Activities
Governmental
Activities
Business-Type
Activities
Total
Net pension liabilities $ 35,062,702 $ 1,972,729 $ 37,035,431
Deferred outflows of resources 7,122,319 336,775 7,459,094
Deferred inflows of resources 3,153,390 247,476 3,400,866
Pension expense 3,998,473 82,485 4,080,958
The Town reported $3,577,656 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.
All full-time and permanent part-time employees employed as police dispatchers or communications
Marana Study Session 01/14/2020 Page 85 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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, 2019 in accordance with
GASB Statement 75, due to the relative insignificance to the Town’s financial statements.
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 provided—The 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:
Before January 1, 2012 On or after January 1, 2012 and
before July 1, 2017
Retirement and Disability
Years of service
and age required
to receive benefit
20 years of service, any age
15 years of service, age 62
25 years of service or 15 years of credited
service, age 52.5
Final average
salary is based on
Highest 36 consecutive
months of last 20 years
Highest 60 consecutive
months of last 20 years
Benefit percent
Normal
Retirement
50% less 2.0% for each year of
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%
1.5% to 2.5% per year of credited service,
not to exceed 80%
Accidental
Disability
Retirement
50% or normal retirement, whichever is greater
Catastrophic
Disability
Retirement
90% for the first 60 months then reduced to either 62.5%
or normal retirement, whichever is greater
Ordinary
Disability
Retirement
Normal retirement calculated with actual years of credited service or 20 years of
credited service, whichever is greater, multiplied by years of credited service (not to
exceed 20 years) divided by 20
Survivor Benefit
Retired Members 80% to 100% of retired member’s pension benefit
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
Marana Study Session 01/14/2020 Page 86 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
CORP Initial membership date:
Before January 1, 2012 On or after January 1, 2012 and
before July 1, 2018
Retirement and Disability
Years of service
and age required
to receive benefit
Sum of years and age equals 80
25 years, any age (dispatchers)
20 years, any age (all others)
10 years, age 62
25 years, age 52.5
10 years, age 62
Final average
salary is based on
Highest 36 consecutive
months of last 10 years
Highest 60 consecutive
months of last 10 years
Benefit percent
Normal
Retirement
2.0% to 2.5% per year of credited service, not to exceed 80%
Before January 1, 2012 On or after January 1, 2012
Accidental
Disability
Retirement
50% or normal retirement if more
than 20 years of credited service
50% or normal retirement if more than 25
years of credited service
Total and
Permanent
Disability
Retirement
50% or normal retirement if more than 25 years of credited service
Ordinary
Disability
Retirement
2.5% per year of credited service
Survivor Benefit
Retired Members 80% of retired member’s pension benefit
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
or eligible children, the beneficiary is entitled to 2 times the member’s contributions.
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation.
PSPRS also provides temporary disability benefits of 50 percent of the member’s compensation for up to 12
months.
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 $100 per month to $260 per month depending on the age of
the member and dependents.
Employees covered by benefit terms—At June 30, 2019, the following employees were covered by the
agent pension plans’ benefit terms:
Marana Study Session 01/14/2020 Page 87 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
PSPRS
CORP
Dispatchers
Inactive employees or beneficiaries currently receiving benefits 29 -
Inactive employees entitled to but not yet receiving benefits 22 2
Active employees 74 7
Total 125 9
Contributions—State 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, 2019, are indicated below. Rates are a percentage of active members’ annual
covered payroll.
PSPRS
Tier 1
PSPRS
Tier 2
PSPRS
Tier 3
Defined
Contribution
CORP
Dispatchers
Active members—Pension 7.65% 11.65% 9.94% 7.96%
Town
Pension 34.69% 34.69% 9.68% 20.82%
Health insurance premium benefit .37% .37% .26% .14%
In addition, statute required the Town to contribute at the actuarially determined rate of 20.86 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 Town’s contributions to the pension plan and contributions for the health insurance premium benefit
for the year ended June 30, 2019, were:
PSPRS CORP Dispatchers
Pension Contributions $ 2,003,419 $ 83,517
Health Insurance Premium Benefit 25,127 562
Total Contributions $ 2,028,546 $ 84,079
During fiscal year 2019, the Town paid for PSPRS and CORP pension contributions as follows: 93%
percent from the General Fund and 7% percent from other funds.
Pension liability—At June 30, 2019, the Town reported the following net pension liabilities:
Net Pension Liability
PSPRS 15,547,837
CORP Dispatchers 674,156
Total 16,221,993
Marana Study Session 01/14/2020 Page 88 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
The net pension liabilities were measured as of June 30, 2018, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of that date. The total CORP
pension liabilities as of June 30, 2018, reflect statutory changes in benefit terms for automatic cost-of-
living adjustments. The basis for cost-of-living adjustment was changed from excess investment earnings
to the change in consumer price index, limited to a maximum annual increase of 2 percent.
Pension actuarial assumptions – The significant actuarial assumptions used to measure the total pension
liability are as follows:
PSPRS and CORP—Pension
Actuarial valuation date June 30, 2018
Actuarial cost method Individual entry age normal
Investment rate of return 7.40%
Wage inflation 3.5%
Price Inflation 2.5%
Cost-of-living adjustment 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, 2018 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:
PSPRS and CORP
Asset Class
Target
Allocation
Long-Term Expected
Geometric Real Rate
of Return
U.S. Equity 16% 7.60%
Non-U.S. Equity 14% 8.70%
Private Credit 16% 6.75%
Fixed Income 5% 1.25%
Private Equity 12% 5.83%
GTS 12% 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 rates—At June 30, 2018, the discount rate used to measure the PSPRS and CORP total
pension liabilities was 7.4 percent, which was the same as the discount rate used as of June 30, 2017.
Marana Study Session 01/14/2020 Page 89 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 plans’ fiduciary net position was 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.
Changes in the Net Pension Liability (Asset)
PSPRS Increase (Decrease)
Total
Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net Pension
Liability
(Asset)
(a) – (b)
Balances at June 30, 2018 34,643,339 19,219,905 15,423,434
Changes for the year:
Service cost 1,100,133 - 1,100,133
Interest on the total pension liability 2,538,335 - 2,538,335
Changes of benefit terms - - -
Differences between expected and actual
experience in the measurement of the pension
liability
(566,255) - (566,255)
Changes of assumptions or other inputs - - -
Contributions—employer - 1,904,911 (1,904,911)
Contributions—employee - 488,777 (488,777)
Net investment income - 1,355,793 (1,355,793)
Benefit payments, including refunds of employee
contributions
(1,783,172) (1,783,172) -
Hall/Parker Settlement - (780,563) 780,563
Pension plan administrative expense - (21,335) 21,335
Other changes - 227 (227)
Net changes 1,289,041 1,164,638 124,403
Balances at June 30, 2019 35,932,380 20,384,543 15,547,837
Marana Study Session 01/14/2020 Page 90 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
CORP Increase (Decrease)
Total
Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net Pension
Liability
(Asset)
(a) – (b)
Balances at June 30, 2018 2,006,831 1,216,668 790,163
Changes for the year:
Service cost 62,894 - 62,894
Interest on the total pension liability 150,833 - 150,833
Changes of benefit terms (111,265) (111,265)
Differences between expected and actual experience
in the measurement of the pension liability
(40,404) - (40,404)
Changes of assumptions or other inputs - - -
Benefit payments, including refunds of employee
contributions
- - -
Contributions—employer - 57,269 (57,269)
Contributions—employee - 32,445 (32,445)
Net investment income - 90,441 (90,441)
Pension plan administrative expense - (2,068) 2,068
Other changes - (22) 22
Net changes 62,058 178,065 (116,007)
Balances at June 30, 2019 2,068,889 1,394,733 674,156
Sensitivity of the Town’s net pension liability to changes in the discount rate—The following table presents
the Town’s net pension liabilities calculated using the discount rates noted above, as well as what the
Town’s net pension liability 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:
Pension plan fiduciary net position—Detailed information about the pension plans’ fiduciary net position is
available in the separately issued PSPRS and CORP financial reports.
Pension expense/(income)—For the year ended June 30, 2019, the Town recognized the following pension
expense/(income):
Pension
Expense/(Income)
PSPRS 3,223,099
CORP Dispatchers (34,876)
1%
Decrease
Current Discount
Rate
1%
Increase
PSPRS
Rate 6.40% 7.40% 8.40%
Net pension liability $21,085,000 $15,547,837 $11,091,728
CORP Dispatchers
Rate 6.40% 7.40% 8.40%
Net pension liability $994,456 $674,156 $412,802
Marana Study Session 01/14/2020 Page 91 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Pension deferred outflows/inflows of resources—At June 30, 2019, the Town reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
PSPRS
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$ 670,639 $ 488,624
Changes of assumptions or other inputs 1,537,932 -
Net difference between projected and
actual earnings on pension plan
investments 139,645
-
Town contributions subsequent to the
measurement date 2,003,419
-
Total $ 4,351,635 $ 488,624
CORP
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience $ - $ 70,813
Changes of assumptions or other inputs 5,869 3,708
Net difference between projected and
actual earnings on pension plan
investments 11,262 -
Town contributions subsequent to the
measurement date 83,517 -
Total $ 100,648 $ 74,521
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, 2020. 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
2020 $952,082 $(5,101)
2021 585,887 (12,772)
2022 232,038 (26,985)
2023 212,864 (8,883)
2024 (22,810) (3,649)
Thereafter (100,469) -
Marana Study Session 01/14/2020 Page 92 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
B. Arizona State Retirement System
All full-time and permanent part-time employees not in the Public Safety Retirement System, Corrections
Officers Retirement System or Elected Officials Retirement System are eligible to participate in the Arizona
State Retirement System (ASRS) a cost sharing multiple-employer defined benefit plan. The ASRS was
established by the State of Arizona to provide pension benefits for employees of the State and employees
of participating political subdivisions and school districts. The ASRS is administered in accordance with the
provisions of A.R.S. Title 38, Chapter 5, Article 2 and 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, 2019 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 obtained on its
website at www.azasrs.gov or by writing to ASRS, 3300 N. Central Avenue, P.O. Box 33910, Phoenix,
Arizona 85067-3910 or by calling 602-240-2000 or 1-800-621-3778.
Cost-sharing plan - Arizona Revised Statutes provide statutory authority for determining the employees’
and employers’ contribution amounts. The ASRS funding policy provides for actuarially determined
employer contributions at rates which will provide assets sufficient to pay benefits when due. Retirement
benefits are calculated on the basis of age, average monthly compensation, and service credit as follows:
ASRS Retirement
Initial membership date:
Before July 1, 2011 On or after July 1, 2011
Years of service
and age required
to receive benefit
Sum of years and age equals 80
10 years, age 62
5 years, age 50*
any years, age 65
30 years, age 55
25 years, age 60
10 years, age 62
5 years, age 50*
any years, age 65
Final average
salary is based on
Highest 36 consecutive months
of last 120 months
Highest 60 consecutive
months
of last 120 months
Benefit percent
per year of service
2.1% to 2.3% 2.1% to 2.3%
*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 benefit option 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 $100 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.
Marana Study Session 01/14/2020 Page 93 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 active member 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. For the year ended June 30, 2019, statute required active ASRS
members to contribute at the actuarially determined rate of 11.8 percent (11.64 percent for retirement and
0.16 percent for long-term disability) of the members’ annual covered payroll, and statute required the
Town to contribute at the actuarially determined rate of 11.8 percent (11.18 percent for retirement, 0.46
percent for health insurance premium benefit, and 0.16 percent for long-term disability) of the active
members’ annual covered payroll. In addition, the Town was required by statute to contribute at the
actuarially determined rate of 10.53 percent (10.41 percent for retirement, 0.06 percent for health
insurance premium benefit, and 0.06 percent for long-term disability) of annual covered payroll of retired
members who worked for the Town in positions that would typically be filled by an employee who
contributes to the ASRS. The Town’s contributions to the pension plan for the year ended June 30, 2019,
were $1,736,855. The Town’s contribution which was equal to the required contribution, was as follows:
Years ended
June 30, Retirement
Health
Insurance
Long-term
Disability Total
2019 $ 1,645,597 $ 67,708 $ 23,550 $ 1,736,855
During fiscal year 2019, the Town paid for ASRS pension contributions as follows: 86.27% percent from
the General Fund, 13.26% from enterprise funds and 0.47% percent from other funds.
Pension liability—At June 30, 2019, the Town reported a liability of $19,833,290 for its proportionate share
of the ASRS’ net pension liability. The net pension liability was measured as of June 30, 2018. 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, 2017, to the measurement
date of June 30, 2018. The total pension liability as of June 30, 2018, reflect changes in actuarial
assumption based on the results of an actuarial experience study for the 5-year period ended June 30,
2016, including decreasing the discount rate from 8 percent to 7.5 percent, changing the projected salary
increases from 3-6.75 percent to 2.7-7.2 percent, decreasing the inflation rate from 3 percent to 2.3
percent, and changing the mortality rates.
The Town’s proportion of the net pension liability was based on the Town’s actual contributions to the plan
relative to the total of all participating employers’ contributions for the year ended June 30, 2018. The
Town’s proportion measured as of June 30, 2018, was 0.14221 percent, which was a decrease of 0.00065
percent from its proportion measured as of June 30, 2017.
Pension expense and deferred outflows/inflows of resources—For the year ended June 30, 2019, the Town
recognized pension expense for ASRS of $643,465. At June 30, 2019, the Town reported deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Marana Study Session 01/14/2020 Page 94 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
ASRS Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ 546,391 $ 109,339
Changes of assumptions or other inputs 524,825 1,758,494
Net difference between projected and actual
earnings on pension plan investments - 476,944
Changes in proportion and differences between
contributions and proportionate share of
contributions 179,951 69,615
Town contributions subsequent to the measurement
date 1,645,597
Total $ 2,896,764 $ 2,414,391
The $1,645,597 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, 2020. 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,
2020 $279,233
2021 (505,078)
2022 (723,488)
2023 (213,891)
Actuarial Assumptions—The significant actuarial assumptions used to measure the total pension liability are
as follows:
ASRS
Actuarial valuation date June 30, 2017
Actuarial roll forward date June 30, 2018
Actuarial cost method Entry age normal
Investment rate of return 7.5%
Projected salary increases 2.7–7.2%
Inflation 2.3%
Permanent benefit increase Included
Mortality rates 2017 SRA Scale U-MP
Recovery rates 2012 GLDT for long-term disability
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 ASRS pension plan investments was determined to be 7.5
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
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TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
expected inflation. The target allocation and best estimates of geometric real rates of return for each major
asset class are summarized in the following table:
ASRS
Asset Class
Target
Allocation
Long-Term Expected
Geometric Real Rate
of Return
Equity 50% 5.50%
Fixed income 30% 3.83%
Real estate 20% 5.85%
Total 100%
Discount Rate—At June 30, 2018, the discount rate used to measure the ASRS total pension liability was
7.5 percent, which was a decrease of 0.5 from the discount rate used as of June 30, 2017. 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 ASRS Board’s funding policy, which
establishes the contractually required rate under Arizona statute.
Based on those assumptions, the pension plan’s fiduciary net position was 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’s proportionate share of the ASRS net pension liability to changes in the discount
rate—The following table presents the Town’s proportionate share of the net pension liability calculated
using the discount rate of 7.5 percent, as well as what the Town’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.5 percent)
or 1 percentage point higher (8.5 percent) than the current rate:
ASRS
1% Decrease
(6.5%)
Current
Discount Rate
(7.5%)
1% Increase
(8.5%)
Proportionate share of the net
pension liability
$28,272,812 $19,833,290 12,782,207
Pension plan fiduciary net position—Detailed information about the pension plan’s fiduciary net position is
available in the separately issued ASRS financial report.
C. Elected Officials’ Retirement Plan
The Town’s Mayor and Council Members are eligible to participate in the Elected Officials’ Retirement Plan
(EORP), a multiple employer cost-sharing defined benefit plan. The EORP 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
PSPRS’s 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.
Marana Study Session 01/14/2020 Page 96 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Benefits provided—The 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
required to receive
benefit
20 years, any age
10 years, age 62
5 years, age 65
5 years, any age*
any years and age if disabled
10 years, age 62
5 years, age 65
any years and age if disabled
Final average salary is
based on
Highest 36 consecutive
months of last 10 years
Highest 60 consecutive
months of last 10 years
Benefit percent
Normal Retirement 4% per year of service,
not to exceed 80%
3% per year of service,
not to exceed 75%
Disability Retirement 80% with 10 or more years of
service
40% with 5 to 10 years of service
20% with less than 5 years of
service
75% with 10 or more years of service
37.5% with 5 to 10 years of service
18.75% with less than 5 years of service
Survivor Benefit
Retired Members 75% of retired member’s benefit 50% of retired member’s benefit
Active Members and
Other Inactive Members
75% of disability retirement benefit 50% of disability retirement benefit
* With reduced benefits of 0.25% for each month early retirement precedes the member’s
normal retirement age, with a maximum reduction of 30%.
Retirement and survivor benefits are subject to automatic cost-of-living adjustments based on inflation. In
addition, the Legislature may enact permanent one-time benefit increases after a Joint Legislative Budget
Committee analysis of the increase’s effects on the plan.
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 8 or more years of service, benefits range from $100 per month
to $260 per month depending on the age of the member and dependents. For members with 5 to 7 years
of service, the benefits are the same dollar amounts as above multiplied by a vesting fraction based on
completed years of service.
Contributions—State 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
Marana Study Session 01/14/2020 Page 97 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
June 30, 2019, statute required active EORP members to contribute 7 or 13 percent of the members’
annual covered payroll and the Town to contribute at the actuarially determined rate of 61.5 percent of all
active EORP members’ annual covered payroll. In addition, statue required the Town to contribute 30.16
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. The Town’s contributions to the pension plan
for the year ended June 30, 2019, was $63,358.
During fiscal year 2019, the Town paid for EORP pension contributions 100 percent from the General Fund.
Pension liability—At June 30, 2019, Town reported a liability for its proportionate share of the EORP’s net
pension liability that reflected a reduction for the Town’s proportionate share of the State’s appropriation
for EORP. 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:
Town’s proportionate share of the EORP
net pension liability $ 980,148
State’s proportionate share of the EORP net
pension liability associated with the Town 167,942
Total $ 1,148,090
The net pension liability was measured as of June 30, 2018, 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, 2018, reflect statutory changes in benefit terms for automatic cost-of-living adjustments.
The basis for cost-of-living adjustments was changed from excess investment earnings to the change in
the consumer price index, limited to a maximum annual increase of 2 percent.
The Town’s proportion of the net pension liability was based on the Town’s required contributions to the
pension plan relative to the total of all participating employers’ required contributions for the year ended
June 30, 2018. The Town’s proportion measured as of June 30, 2018, was .1555 percent, which was an
increase of .0051 percent from its proportion measured as of June 30, 2017.
Pension expense/income and deferred outflows/inflows of resources—For the year ended June 30, 2019,
the Town recognized pension expense for EORP from the prior year of $683,677 and pension income for
the current year of $434,407. The prior year recognition is due to the unavailability of the EORP report at
year end June 30, 2018. At June 30, 2019, the Town reported the June 30, 2018 deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:
EORP Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual experience $ - $ 15,287
Changes of assumptions or other inputs 6,107 408,043
Net difference between projected and actual earnings on
pension plan investments 8,505 -
Changes in proportion and differences between employer
contributions and proportionate share of contributions 32,077 -
Town contributions subsequent to the measurement date 63,358
Total $ 110,047 $ 423,330
Marana Study Session 01/14/2020 Page 98 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
The $63,358 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, 2020. 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,
2020 $(348,306)
2021 (24,868)
2022 (3,608)
2023 141
Actuarial assumptions—The significant actuarial assumptions used to measure the total pension liability are
as follows:
EORP
Actuarial valuation date June 30, 2018
Actuarial cost method Entry age normal
Investment rate of return 7.40%
Wage inflation 3.25%
Price inflation 2.5%
Cost-of-living adjustment 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, 2018, 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 EORP pension plan investments was determined to be 7.4
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:
Marana Study Session 01/14/2020 Page 99 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
EORP
Asset Class
Target
Allocation
Long-Term Expected Geometric
Real Rate of Return
Short term investments 2% 0.25%
Risk parity 4% 5.00%
Fixed income 5% 1.25%
Real assets 9% 4.52%
GTS 12% 3.96%
Private credit 16% 6.75%
Real estate 10% 3.75%
Private equity 12% 5.83%
Non-U.S. equity 14% 8.70%
U.S. equity 16% 7.60%
Total 100%
Discount rate—At June 30, 2018, the discount rate used to measure the EORP total pension liability was
7.4 percent, which was an increase of 3.49 from the discount rate used as of June 30, 2017. 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 actuarially determined
rates, and State contributions will be made as currently required by statute. Based on those assumptions,
the pension plan’s fiduciary net position was 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’s proportionate share of the EORP net pension liability to changes in the discount
rate—The following table presents the Town’s proportionate share of the net pension liability calculated
using the discount rate of 7.4 percent, as well as what the Town’s proportionate share of the net pension
liability 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
1% Decrease
(6.4%)
Current
Discount Rate
(7.4%)
1% Increase
(8.4%)
Town’s proportionate share of the
net pension liability $1,125,438 $980,148 $856,647
Pension Plan Fiduciary Net Position—Detailed information about the pension plan’s fiduciary net position is
available in the separately issued EORP financial report.
NOTE 10 - RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; and natural disasters.
The Town's insurance protection is provided by the Arizona Municipal Risk Retention Pool, of which the
Town is a participating member. The limit for 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
Marana Study Session 01/14/2020 Page 100 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected
financial obligations. The pool has the authority to assess its member’s additional premiums should
reserves and annual premiums be insufficient to meet the pool's obligations.
The Town continues to carry commercial insurance for all other risks of loss, including workers’
compensation and employee health and accident insurance. Settled claims resulting from these risks have
not exceeded commercial insurance coverage in any of the past three fiscal years.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
The Town is subject to a number of lawsuits, investigations, and other claims (some of which involve
substantial amounts) that are incidental to the ordinary course of its operations, including those related to
wrongful death and personal injury matters. Although the Town Attorney does not currently possess
sufficient information to reasonably estimate the amounts of the liabilities to be recorded upon the
settlement of such claims and lawsuits, some claims could be significant to the Town’s operations. While
the ultimate resolution of such lawsuits, investigations, and claims cannot be determined at this time, in
the opinion of Town management, based on the advice of the Town Attorney, the resolution of these
matters will not have a material adverse effect on the Town’s financial position.
Significant Contractual Commitments
At the end of fiscal year 2019, the Town was obligated to $4.2 million in significant contractual
commitments for airport, transportation, park, police facility, and water facility related construction
projects. Two water treatment facilities accounted for $1.4 million, Airport improvements accounted for
$723,650, Lon Adams Rd reconstruction for $321,284, and Coachline Blvd reconstruction accounted for
$447,310. The remaining commitments were for other transportation projects of $878,716, water projects
of $75,400, wastewater projects of $39,300, police facility of $82,760, and park related projects accounted
for $217,300.
NOTE 12 - 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 $1,000,000 in resort
sales tax to the Town from the development project known as "Dove Mountain". This threshold was
reached on June 30, 2011, and therefore the developer ceased reimbursing the Town for the annual rent
payment. These leases provide for payments of minimum annual rentals as follows, excluding real estate
taxes, common area charges, management fees, and sales taxes:
Marana Study Session 01/14/2020 Page 101 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Years Ending
June 30,
2020 574,992
2021 632,491
2022 632,491
2023 632,491
2024 632,491
2025 - 2029 3,415,451
2030 - 2034 3,756,996
2035 - 2039 4,132,694
2040 - 2044 4,545,965
2045 - 2049 5,000,562
2050 - 2054 5,500,617
2055 - 2059 6,050,680
2060 - 2064 6,655,750
2065 - 2069 7,321,325
2070 - 2074 8,053,457
2075 - 2079 8,858,803
2080 - 2084 9,744,683
2085 - 2089 10,719,152
2090 - 2094 11,791,067
2095 - 2099 12,970,172
Total 111,622,330$
Minimum annual rentals above excludes annual rental under the remaining renewal options as of June 30,
2019. Rent expense under the above leases for fiscal 2018-19 aggregated $574,992.
NOTE 13 – SUBSEQUENT EVENTS
Gladden Farms Phase II Community Facilities District – Debt Issuance
In August 2019, the District issued the Series 2019 General Obligation Bonds (Bonds) in the amount of
$1,245,000, maturing in 2044, with an interest rate of 3.75% to 4.125%. 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.
Saguaro Springs Community Facilities District – Debt Issuance
In September 2019, the District issued the Series 2019 General Obligation Bonds (Bonds) in the amount of
$1,950,000, maturing in 2044, with an interest rate of 3% 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.
Marana Study Session 01/14/2020 Page 102 of 259
TOWN OF MARANA, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
Town of Marana – Uncollected Fees
In September 2019, the Town determined that certain Water Resource impact fees were not collected over
the last several years. While the Town is still gathering information, it is possible that the amount of
uncollected fees could total as much as $1,000,000. The uncollected fees are related to properties that are
physically located within the Town, but are serviced by outside utility agencies. The Town continues
consultations with Town Council, executive management and the Town’s legal counsel as we consider
future action and work toward determining a more accurate amount of such uncollected fees.
Marana Study Session 01/14/2020 Page 103 of 259
REQUIRED SUPPLEMENTARY INFORMATION
Marana Study Session 01/14/2020 Page 104 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE TOWN’S
PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET)
COST-SHARING PLANS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
Arizona State
Retirement System
Reporting Fiscal Year
(Measurement Date)
2019
(2018)
2018
(2017)
2017
(2016)
2016
(2015)
2015
(2014)
2014
through
2010
Town’s proportion of the
net pension liability
0.14221% 0.14286% 0.140584% 0.136510% 0.129998% Information
not available
10 years of
information
will be
reported as
it becomes
available
Town’s proportionate share
of the net pension liability
$ 19,833,290 $ 22,254,803 $ 22,691,024 $ 21,263,376 $ 19,235,271
Town’s covered payroll $ 14,143,225 $ 13,881,636 $ 13,150,962 $ 12,565,464 $ 11,714,615
Town’s proportionate share
of the net pension liability
as a percentage of its
covered payroll
140.23% 160.32% 172.54% 169.22% 164.20%
Plan fiduciary net position
as a percentage of the
total pension liability
73.40% 69.92% 67.06% 68.35% 69.49%
Elected Officials
Retirement Plan
Reporting Fiscal Year
(Measurement Date)
2019
(2018)
2018
(2017)
2017
(2016)
2016
(2015)
2015
(2014)
2014
through
2010
Town’s proportion of the net
pension liability
.155545% .150480%
.148768% .133401% .1658860% Information
not available
10 years of
information
will be
reported as
it becomes
available
Town’s proportionate share of the
net pension liability
$980,148 $1,833,747 $1,405,489 $1,042,465 $ 1,112,385
State’s proportionate share of the
net pension liability associated
with the Town
167,942 380,586 290,197 324,997 341,068
Total $1,148,090 $2,214,333 $1,695,686 $1,367,462 $ 1,453,453
Town’s covered payroll $116,021 $119,424 $119,424 $119,424 $ 119,423
Town’s proportionate share of the
net pension liability as a
percentage of its covered payroll
844.80% 1,535.49% 1,176.89% 872.91% 931.15%
Plan fiduciary net position as a
percentage of the total pension
liability
30.36% 19.66% 23.42% 28.32% 31.91%
Marana Study Session 01/14/2020 Page 105 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOWN’S
NET PENSION LIABILITY (ASSET) AND RELATED RATIOS
AGENT PENSION PLANS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
PSPRS Reporting Fiscal Year
(Measurement Date)
2019
(2018) 2018
(2017)
2017
(2016)
2016
(2015)
2015
(2014)
2014
through
2010
Total pension liability
Information
not
available
10 years of
information
will be
reported as
it becomes
available
Service cost $1,100,133 $ 1,213,757 $ 994,058 $ 891,324 $ 876,619
Interest on the total pension
liability 2,538,335 2,322,987 2,005,255 1,844,654 1,551,602
Changes of benefit terms - 367,673 1,837,430 - 308,515
Differences between expected
and actual experience in the
measurement of the pension
liability (566,255) 340,373 536,692 333,269 148,583
Changes of assumptions or
other inputs - 725,862 1,226,081 - 1,933,583
Benefit payments, including
refunds of employee
contributions (1,783,172) (1,387,192) (1,174,525) (974,950) (1,211,258)
Net change in total pension
liability 1,289,041 3,583,460 5,424,991 2,094,297 3,607,644
Total pension liability—beginning 34,643,339 31,059,879 25,634,888 23,540,591 19,932,947
Total pension liability—ending (a) $35,932,380 $34,643,339 $31,059,879 $25,634,888 $ 23,540,591
Plan fiduciary net position
Contributions—employer $1,904,911 $1,384,924 $1,323,677 $1,006,859 $ 797,871
Contributions—employee 488,777 621,583 672,181 579,390 578,596
Net investment income 1,355,793 2,081,790 95,438 533,938 1,698,902
Benefit payments, including
refunds of employee
contributions (1,783,172) (1,387,192) (1,174,525) (974,950) (1,211,258)
Hall/Parker Settlement (780,563) - - - -
Pension plan administrative
expense (21,335) (18,820) (14,134) (13,410) -
Other changes 227 2,417 223,597 46,032 (543,969)
Net change in plan fiduciary net
position 1,164,638 2,684,702 1,126,234 1,177,859 1,320,142
Plan fiduciary net position—
beginning 19,219,905 16,535,203 15,408,969 14,231,110 12,910,968
Plan fiduciary net position—ending
(b) $20,384,543 $19,219,905 $16,535,203 $15,408,969 $ 14,231,110
Town’s net pension liability
(asset)—ending (a) – (b) $15,547,837 $15,423,434 $14,524,676 $10,225,919 $ 9,309,481
Plan fiduciary net position as a
percentage of the total pension
liability 56.73% 55.48% 53.24% 60.11% 60.45%
Covered payroll $5,121,661 $5,318,831 $5,182,784 $4,900,569 $ 4,638.415
Marana Study Session 01/14/2020 Page 106 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOWN’S
NET PENSION LIABILITY (ASSET) AND RELATED RATIOS
AGENT PENSION PLANS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
PSPRS Reporting Fiscal Year
(Measurement Date)
2019
(2018) 2018
(2017)
2017
(2016)
2016
(2015)
2015
(2014)
2014
through
2010
Town’s net pension liability (asset)
as a percentage of covered
payroll 303.57% 289.98% 280.25% 208.67% 200.70%
CORP – Dispatchers Reporting Fiscal Year
(Measurement Date)
2019
(2018)
2018
(2017)
2017
(2016)
2016
(2015)
2015
(2014)
2014
through
2010
Total pension liability
Information
not
available
10 years of
information
will be
reported as
it becomes
available
Service cost $ 62,894 $ 59,139 $ 57,866 $ 64,307 $ 63,474
Interest on the total pension liability 150,833 118,108 113,075 105,144 94,360
Changes of benefit terms (111,265) 312,169 15,002 - -
Differences between expected and
actual experience in the
measurement of the pension liability (40,404)
(18,913)
(25,358)
(18,303)
(16,512)
Changes of assumptions or other
inputs - (5,967) (136) - 18,699
Benefit payments, including refunds of
employee contributions
- (5,825) (47,673) (46,131) -
Net change in total pension liability 62,058 458,711 112,776 105,017 160,021
Total pension liability—beginning 2,006,831 1,548,120 1,435,344 1,330,327 1,170,306
Total pension liability—ending (a) $2,068,889 $ 2,006,831 $ 1,548,120 $ 1,435,344 $ 1,330,327
Plan fiduciary net position
Contributions—employer $ 57,269 $ 51,162 $ 48,648 $ 49,045 $ 48,667
Contributions—employee 32,445 32,199 32,623 35,981 36,306
Net investment income 90,441 124,809 6,034 34,230 102,910
Benefit payments, including refunds of
employee contributions - (5,825) (47,673) (46,131) -
Pension plan administrative expense (2,068) (1,491) (1,253) (1,233) -
Other changes (22) (6) (5) (635) (24,446)
Net change in plan fiduciary net position 178,065 200,848 38,374 71,257 163,437
Plan fiduciary net position—beginning 1,216,668 1,015,820 977,446 906,189 742,752
Plan fiduciary net position—ending (b) $1,394,733 $ 1,216,668 $ 1,015,820 $ 977,446 $ 906,189
Town’s net pension liability (asset)—
ending (a) – (b) $ 674,156 $ 790,163 $ 532,300 $ 457,898 $ 424,138
Plan fiduciary net position as a 67.41% 60.63% 65.62% 68.10% 68.12%
Marana Study Session 01/14/2020 Page 107 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE TOWN’S
NET PENSION LIABILITY (ASSET) AND RELATED RATIOS
AGENT PENSION PLANS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
CORP – Dispatchers Reporting Fiscal Year
(Measurement Date)
2019
(2018)
2018
(2017)
2017
(2016)
2016
(2015)
2015
(2014)
2014
through
2010
percentage of the total pension liability
Covered payroll $ 407,607 $ 404,506 $ 397,428 $ 430,892 $ 456,107
Town’s net pension liability (asset) as a
percentage of covered payroll 165.39% 195.34% 133.94% 106.27% 92.99%
Marana Study Session 01/14/2020 Page 108 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
Arizona State
Retirement
System
Reporting Fiscal Year
2019 2018 2017 2016 2015
Statutorily required
contribution
$1,645,597 $1,536,196 $1,496,440 $1,426,879 $ 1,367,122
Town’s contributions in
relation to the
statutorily required
contribution
1,645,597 1,536,196 1,496,440 1,426,879 1,367,122
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered payroll $14,143,225 $13,881,636 $13,150,962 $12,565,464 $11,714,615
Town’s contributions as
a percentage of
covered payroll
11.64% 11.07% 11.38% 11.36% 11.67%
2014 2013 2012 2011 2010
Statutorily required
contribution
$ 1,253,464 $1,172,006 $1,095,471 $934,621 $929,807
Town’s contributions in
relation to the
statutorily required
contribution
1,253,464 1,172,006 1,095,471 934,621 929,807
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered payroll $11,434,201 $11,098,998 $10,373,156 $11,148,776 $12,038,936
Town’s contributions as
a percentage of
covered payroll
10.96% 10.56% 10.56% 8.38% 7.72%
Marana Study Session 01/14/2020 Page 109 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
Elected Officials
Retirement Plan
Reporting Fiscal Year
2019 2018 2017 2016 2015
Statutorily required
contribution
$27,266 $27,266 $28,065 $28,065 $28,065
Town’s contributions
in relation to the
statutorily required
contribution
27,266 27,266 28,065 28,065 28,065
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered
payroll
$116,021 $116,021 $119,423 $119,423 $119,424
Town’s contributions
as a percentage of
covered payroll
23.50% 23.50% 23.50% 23.50% 23.50%
2014 2013 2012 2011 2010
Statutorily required
contribution
$38,431 $43,518 $40,861 $34,226 $29,793
Town’s contributions
in relation to the
statutorily required
contribution
38,431 43,518 40,861 34,226 29,793
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered
payroll
$119,423 $119,423 $123,858 $114,891 $113,497
Town’s contributions
as a percentage of
covered payroll
32.18% 36.44% 32.99% 29.79% 26.25%
Marana Study Session 01/14/2020 Page 110 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
PSPRS Reporting Fiscal Year
2019 2018 2017 2016 2015
Actuarially determined
contribution
$1,904,911 $1,384,924 $1,323,677 $1,006,859 $ 797,871
Town’s contributions
in relation to the
actuarially
determined
contribution
1,904,911 1,384,924 1,323,677 1,006,859 797,871
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered
payroll
$5,121,661 $5,318,831 $5,182,784 $4,900,569 $4,638,418
Town’s contributions
as a percentage of
covered payroll
37.19% 26.04% 25.54% 20.55% 17.20%
2014 2013 2012 2011 2010
Actuarially determined
contribution
$ 831,677 $778,039 $644,505 $554,133 $457,749
Town’s contributions
in relation to the
actuarially
determined
contribution
831,677 778,039 644,505 554,133 457,749
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered
payroll
$4,498,048 $4,512,699 $4,254,314 $4,345,965 $4,625,605
Town’s contributions
as a percentage of
covered payroll
18.49% 17.24% 15.15% 12.75% 9.90%
Marana Study Session 01/14/2020 Page 111 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF TOWN PENSION CONTRIBUTIONS
JUNE 30, 2019
See accompanying notes to pension plan schedules.
CORP -
Dispatchers
Reporting Fiscal Year
2019 2018 2017 2016 2015
Actuarially determined
contribution
$57,269 $51,210 $48,648 $49,045 $ 48,667
Town’s contributions
in relation to the
actuarially
determined
contribution
57,269 51,210 48,648 49,045 48,667
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered
payroll
$ 407,607 $ 404,506 $ 397,428 $ 430,892 $ 456,106
Town’s contributions
as a percentage of
covered payroll
14.05% 12.66% 12.24% 11.38% 10.67%
2014 2013 2012 2011 2010
Actuarially determined
contribution
$ 32,506 $ 25,550 $ 24,843 $ 22,805 $ 28,540
Town’s contributions
in relation to the
actuarially
determined
contribution
32,506 25,550 24,843 22,805 28,540
Town’s contribution
deficiency (excess)
$ - $ - $ - $ - $ -
Town’s covered
payroll
$ 443,980 $ 530,695 $ 536,843 $ 593,407 $ 603,377
Town’s contributions
as a percentage of
covered payroll
7.32% 4.25% 4.63% 3.84% 4.73%
Marana Study Session 01/14/2020 Page 112 of 259
TOWN OF MARANA, ARIZONA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO PENSION PLAN SCHEDULES
JUNE 30, 2019
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 20 years
Asset valuation method 7-year smoothed market value; 20% corridor
Actuarial assumptions:
Investment rate of return 7.5%
Projected salary increases 4.0%–8.0% including inflation for PSPRS and 4.0%–7.25% including
inflation for CORP.
Wage growth 4%
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
as of the law’s effective date. As a result, the PSPRS, CORP, and EORP changed benefit terms to reflect the
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
members’ employee contribution rates. These changes are reflected in the plans’ pension liabilities for
fiscal year 2015 (measurement date 2014) for members who were retired as of the law’s effective date
and fiscal year 2018 (measurement date 2017) for members who retired or will retire after the law’s
effective date. These changes also increased the PSPRS and CORP required pension contributions
beginning in fiscal year 2016 for members who were retired as of the law’s effective date. These changes
increased the PSPRS and CORP required contributions beginning in fiscal year 2019 for members who
retired or will retire after the law’s effective date. EORP required contributions are not based on actuarial
valuations, and therefore, these changes did not affect them.
The fiscal year 2019 (measurement date 2018) pension liabilities for EORP and CORP reflect the
replacement of the permanent benefit increase (PBI) for retirees based on investment returns with a cost
of living adjustment based on inflation. Also, the EORP liability and required pension contributions for fiscal
year 2019 reflect a statutory change that requires the employer contribution rate to be actuarially
determined. This change increased the discount rate used to calculate the liability thereby reducing the
total pension liability.
Marana Study Session 01/14/2020 Page 113 of 259
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Marana Study Session 01/14/2020 Page 114 of 259
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Marana Study Session 01/14/2020 Page 115 of 259
OTHER MAJOR GOVERNMENTAL FUNDS
SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – BUDGET AND ACTUAL
Marana Study Session 01/14/2020 Page 116 of 259
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Marana Study Session 01/14/2020 Page 117 of 259
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, 2019
Budgeted Amounts
Original Final Actual
Variance -
Positive
(Negative)
Revenues:
Special assessments 1,992,337$ 1,992,337$ 2,868,657$ 876,320$
Total revenues 1,992,337 1,992,337 2,868,657 876,320
Expenditures:
Debt service -
Principal retirement 1,663,132 1,663,132 2,074,132 (411,000)
Interest and fiscal charges 360,705 360,705 359,317 1,388
Total expenditures 2,023,837 2,023,837 2,433,449 (409,612)
Excess (deficiency) of revenues
over expenditures (31,500) (31,500) 435,208 466,708
Fund balances, beginning of year - - 707,418 707,418
Fund balances, end of year (31,500)$ (31,500)$ 1,142,626$ 1,174,126$
Marana Study Session 01/14/2020 Page 118 of 259
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - SALES TAX CAPITAL
YEAR ENDED JUNE 30, 2019
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Sales tax 2,952,570$ 2,952,570$ 2,944,927$ (7,643)$
Investment income - - 21,996 21,996
Total revenues 2,952,570 2,952,570 2,966,923 14,353
Expenditures:
Capital outlay 6,506,234 6,506,234 6,027,015 479,219
Total expenditures 6,506,234 6,506,234 6,027,015 479,219
Excess (deficiency) of revenues over
expenditures (3,553,664) (3,553,664) (3,060,092) 493,572
Fund balances, beginning of year - - 3,060,092 3,060,092
Fund balances, end of year (3,553,664)$ (3,553,664)$ -$ 3,553,664$
Sales Tax Capital
Marana Study Session 01/14/2020 Page 119 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Sales taxes 5,906,742$ 5,906,742$ 8,101,699$ 2,194,957$
Fines, forefeitures & penalties - - - -
Investment income - - 394,523 394,523
Total revenues 5,906,742 5,906,742 8,496,222 2,589,480
Expenditures:
Current -
General government - - 730,617 (730,617)
Highways and streets 17,425 17,425 31,592 (14,167)
Capital outlay 21,459,042 21,459,042 10,611,881 10,847,161
Total expenditures 21,476,467 21,476,467 11,374,090 10,102,377
Excess (deficiency) of revenues over
expenditures (15,569,725) (15,569,725) (2,877,868) 12,691,857
Other financing sources (uses):
Transfers in - - 45,514 45,514
Transfers out (577,580) (577,580) (808,297) (230,717)
Total other financing sources
(uses)(577,580) (577,580) (762,783) (185,203)
Changes in fund balances (16,147,305) (16,147,305) (3,640,651) 12,506,654
Fund balances, beginning of year - - 17,024,540 17,024,540
Fund balances, end of year (16,147,305)$ (16,147,305)$ 13,383,889$ 29,531,194$
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - TRANSPORTATION CAPITAL
YEAR ENDED JUNE 30, 2019
Transportation Capital
Marana Study Session 01/14/2020 Page 120 of 259
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Marana Study Session 01/14/2020 Page 121 of 259
NON-MAJOR GOVERNMENTAL FUNDS
Marana Study Session 01/14/2020 Page 122 of 259
Special
Revenue Capital Projects Debt Service
Total
Non-Major
Governmental
Funds
ASSETS
Cash and cash equivalents 4,171,964$ 15,000,692$ 5,381,671$ 24,554,327$
Taxes receivable - 612 4,584 5,196
Accounts receivable 3,189 - - 3,189
Interest receivable - 12,618 1,786 14,404
Development agreement receivable - 58,352 - 58,352
Due from governments 449,471 527,150 - 976,621
Prepaid items 1,580 - - 1,580
Total assets 4,626,204$ 15,599,424$ 5,388,041$ 25,613,669$
LIABILITIES
Accounts payable 211,591$ 313,559$ 225$ 525,375$
Accrued payroll and employee benefits 17,789 - - 17,789
Due to other funds 1,855 973,197 - 975,052
Deposits held for others - 62,400 - 62,400
Unearned revenue 10,620 - - 10,620
Total liabilities 241,855 1,349,156 225 1,591,236
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 50,707 7,663 - 58,370
Total deferred inflows of
resources 50,707 7,663 - 58,370
FUND BALANCES (DEFICITS)
Fund balances:
Nonspendable 1,580 - - 1,580
Restricted 4,335,849 14,800,943 5,387,816 24,524,608
Unassigned (3,787) (558,338) - (562,125)
Total fund balances 4,333,642 14,242,605 5,387,816 23,964,063
Total liabilities, deferred inflows
of resources, and fund balances 4,626,204$ 15,599,424$ 5,388,041$ 25,613,669$
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS -
BY FUND TYPE
JUNE 30, 2019
Marana Study Session 01/14/2020 Page 123 of 259
Special
Revenue Capital Projects Debt Service
Total
Non-Major
Governmental
Funds
Revenues:
Sales tax 1,429,401$ 231,594$ -$ 1,660,995$
Property tax - 100,952 732,972 833,924
Intergovernmental 1,009,182 3,400,046 - 4,409,228
Licenses, fees & permits - 4,259,833 - 4,259,833
Fines, forfeitures & penalties 109,142 - - 109,142
Investment income 33,153 244,606 4,624 282,383
Miscellaneous 11,528 - - 11,528
Total revenues 2,592,406 8,263,677 737,596 11,593,679
Expenditures:
Current -
General government 838,876 10,582 - 849,458
Public safety 958,317 - - 958,317
Highways and streets - 20,907 - 20,907
Economic and community development 362,893 - - 362,893
Culture and recreation - 53,530 - 53,530
Capital outlay 1,038,707 2,217,453 3,616,367 6,872,527
Debt service -
Principal retirement - - 3,389,000 3,389,000
Interest and fiscal charges - - 2,745,649 2,745,649
Total expenditures 3,198,793 2,302,472 10,065,018 15,566,283
Excess (deficiency) of revenues over
expenditures (606,387) 5,961,205 (9,327,422) (3,972,604)
Other financing sources (uses):
Transfers in - 58,073 5,978,501 6,036,574
Transfers out - (2,185,045) (45,514) (2,230,559)
Total other financing sources (uses)- (2,126,972) 9,865,731 7,738,759
Change in fund balances (606,387) 3,834,233 538,309 3,766,155
Fund balances, beginning of year 4,940,029 10,408,372 4,849,507 20,197,908
Fund balances, end of year 4,333,642$ 14,242,605$ 5,387,816$ 23,964,063$
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, 2019
Marana Study Session 01/14/2020 Page 124 of 259
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Marana Study Session 01/14/2020 Page 125 of 259
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.
Marana Study Session 01/14/2020 Page 126 of 259
Community
Development
Block Grant
Affordable
Housing Bed Tax
ASSETS
Cash and cash equivalents -$ 181,434$ 1,861,185$
Accounts receivable - - -
Due from governments 3,786 - 165,984
Prepaid - - 425
Total assets 3,786$ 181,434$ 2,027,594$
LIABILITIES
Accounts payable 789$ -$ 156,538$
Accrued payroll and employee benefits 1,143 - 1,849
Due to other funds 1,855 - -
Unearned revenue - - -
Total liabilities 3,787 - 158,387
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 3,786 - -
Total deferred inflows of resources 3,786 - -
FUND BALANCES (DEFICITS)
Nonspendable - - 425
Restricted - 181,434 1,868,782
Unassigned (3,787) - -
Total fund balances (3,787) 181,434 1,869,207
Total liabilities, deferred inflows of
resources, and fund balances 3,786$ 181,434$ 2,027,594$
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2019
Marana Study Session 01/14/2020 Page 127 of 259
Judicial
Collection
Enhancement Fill-the-Gap
Local
Technology
Other Special
Revenue Fund Totals
162,297$ 94,104$ 843,462$ 1,029,482$ 4,171,964$
- 2,772 - 417 3,189
- - - 279,701 449,471
- - - 1,155 1,580
162,297$ 96,876$ 843,462$ 1,310,755$ 4,626,204$
14,471$ -$ 300$ 39,493$ 211,591$
- - 1,127 13,670 17,789
- - - - 1,855
- - - 10,620 10,620
14,471 - 1,427 63,783 241,855
- - - 46,921 50,707
- - - 46,921 50,707
- - - 1,155 1,580
147,826 96,876 842,035 1,198,896 4,335,849
- - - - (3,787)
147,826 96,876 842,035 1,200,051 4,333,642
162,297$ 96,876$ 843,462$ 1,310,755$ 4,626,204$
Marana Study Session 01/14/2020 Page 128 of 259
Community
Development
Block Grant
Affordable
Housing Bed Tax
Judicial
Collection
Enhancement
Revenues:
Sales taxes -$ -$ 1,429,401$ -$
Intergovernmental 71,170 - - -
Fines, forfeitures & penalties - - - 9,910
Investment income - - - -
Miscellaneous - 1,954 3,212 -
Total revenues 71,170 1,954 1,432,613 9,910
Expenditures:
Current -
General government - - 695,599 14,471
Public safety - - - -
Economic and community development 74,958 - 287,935 -
Capital outlay - 38,781 - -
Total expenditures 74,958 38,781 983,534 14,471
Excess (deficiency) of revenues over
expenditures (3,788) (36,827) 449,079 (4,561)
Fund balances (deficits), beginning of year 1 218,261 1,420,128 152,387
Fund balances (deficits), end of year (3,787)$ 181,434$ 1,869,207$ 147,826$
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 129 of 259
Fill-the-Gap
Local
Technology
Other Special
Revenue Fund Totals
-$ -$ -$ 1,429,401$
- - 938,012 1,009,182
5,202 60,030 34,000 109,142
- - 33,153 33,153
- - 6,362 11,528
5,202 60,030 1,011,527 2,592,406
- 87,848 40,958 838,876
- - 958,317 958,317
- - - 362,893
- - 999,926 1,038,707
- 87,848 1,999,201 3,198,793
5,202 (27,818) (987,674) (606,387)
91,674 869,853 2,187,725 4,940,029
96,876$ 842,035$ 1,200,051$ 4,333,642$
Marana Study Session 01/14/2020 Page 130 of 259
Community Development Block Grant Fund
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Intergovernmental 150,000$ 150,000$ 71,170$ (78,830)$
Total revenues 150,000 150,000 71,170 (78,830)
Expenditures:
Current -
Economic and community development 150,000 150,000 74,958 75,042
Capital outlay - - - -
Total expenditures 150,000 150,000 74,958 75,042
Excess (deficiency) of revenues over
expenditures - - (3,788) (3,788)
Other financing sources:
Transfer out - - - -
Total other financing sources - - - -
Change in fund balance - - (3,788) (3,788)
Fund balance, July 1, 2018 - - 1 1
Fund balance (deficits), June 30, 2019 -$ -$ (3,787)$ (3,787)$
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, 2019
Marana Study Session 01/14/2020 Page 131 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Miscellaneous 10,000$ 10,000$ 1,954$ (8,046)$
Total revenues 10,000 10,000 1,954 (8,046)
Expenditures:
Current -
Economic and community development 50,000 50,000 - 50,000
Capital outlay - - 38,781 (38,781)
Total expenditures 50,000 50,000 38,781 11,219
Excess (deficiency) of revenues over
expenditures (40,000) (40,000) (36,827) 3,173
Fund balance, July 1, 2018 - - 218,261 218,261
Fund balance (deficits), June 30, 2019 (40,000)$ (40,000)$ 181,434$ 221,434$
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, 2019
Affordable Housing Revolving Fund
Marana Study Session 01/14/2020 Page 132 of 259
Bed Tax Fund
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Sales taxes 1,088,016$ 1,088,016$ 1,429,401$ 341,385$
Miscellaneous - - 3,212 3,212
Total revenues 1,088,016 1,088,016 1,432,613 344,597
Expenditures:
Current -
General government 784,139 784,139 695,599 88,540
Economic and community development 303,877 303,877 287,935 15,942
Total expenditures 1,088,016 1,088,016 983,534 104,482
Excess (deficiency) of revenues over
expenditures - - 449,079 449,079
Fund balance, July 1, 2018 - - 1,420,128 1,420,128
Fund balance (deficits), June 30, 2019 -$ -$ 1,869,207$ 1,869,207$
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, 2019
Marana Study Session 01/14/2020 Page 133 of 259
Judicial Collection Enhancement Fund
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Fines, forfeitures & penalties 15,000$ 15,000$ 9,910$ (5,090)$
Total revenues 15,000 15,000 9,910 (5,090)
Expenditures:
Current -
General government 72,000 72,000 14,471 57,529
Total expenditures 72,000 72,000 14,471 57,529
Excess (deficiency) of revenues over
expenditures (57,000) (57,000) (4,561) 52,439
Fund balance, July 1, 2018 - - 152,387 152,387
Fund balance (deficits), June 30, 2019 (57,000)$ (57,000)$ 147,826$ 204,826$
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, 2019
Marana Study Session 01/14/2020 Page 134 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Fines, forfeitures & penalties 6,000$ 6,000$ 5,202$ (798)$
Total revenues 6,000 6,000 5,202 (798)
Expenditures:
Current -
General government 34,500 34,500 - 34,500
Total expenditures 34,500 34,500 - 34,500
Excess (deficiency) of revenues over
expenditures (28,500) (28,500) 5,202 33,702
Fund balance, July 1, 2018 - - 91,674 91,674
Fund balance (deficits), June 30, 2019 (28,500)$ (28,500)$ 96,876$ 125,376$
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, 2019
Fill-the-Gap
Marana Study Session 01/14/2020 Page 135 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Fines, forfeitures & penalties 140,000$ 140,000$ 60,030$ (79,970)$
Total revenues 140,000 140,000 60,030 (79,970)
Expenditures:
Current -
General government 289,549 289,549 87,848 201,701
Total expenditures 289,549 289,549 87,848 201,701
Change in fund balance (149,549) (149,549) (27,818) 121,731
Fund balance, July 1, 2018 - - 869,853 869,853
Fund balance (deficits), June 30, 2019 (149,549)$ (149,549)$ 842,035$ 991,584$
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, 2019
Local Technology Fund
Marana Study Session 01/14/2020 Page 136 of 259
Other Special Revenue Fund
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Intergovernmental 2,896,476$ 2,896,476$ 938,012$ (1,958,464)$
Fines, forfeitures & penalties 40,000 40,000 34,000 (6,000)
Contributions - - - -
Investment income 1,615 1,615 33,153 31,538
Miscellaneous 10,000 10,000 6,362 (3,638)
Total revenues 2,948,091 2,948,091 1,011,527 (1,936,564)
Expenditures:
Current -
General government 2,500,000 2,500,000 40,958 2,459,042
Public safety 567,091 567,091 958,317 (391,226)
Capital outlay 748,073 748,073 999,926 (251,853)
Total expenditures 3,815,164 3,815,164 1,999,201 1,815,963
Excess (deficiency) of revenues over
expenditures (867,073) (867,073) (987,674) (120,601)
Other financing sources:
Transfer in 100,000 100,000 - (100,000)
Total other financing sources 100,000 100,000 - (100,000)
Change in fund balance (767,073) (767,073) (987,674) (220,601)
Fund balance, July 1, 2018 - - 2,187,725 2,187,725
Fund balance (deficits), June 30, 2019 (767,073)$ (767,073)$ 1,200,051$ 1,967,124$
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, 2019
Marana Study Session 01/14/2020 Page 137 of 259
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.
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.
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.
Marana Study Session 01/14/2020 Page 138 of 259
Northwest
Transportation
Impact Fees
Northeast
Transportation
Impact Fees
South
Transportation
Impact Fees
Park Impact
Fees
ASSETS
Cash and cash equivalents 291,461$ -$ 5,657,836$ 2,137,783$
Taxes receivable - - - -
Interest receivable - - 9,814 -
Development agreement receivable - - - -
Due from governments - - - 7,592
Total assets 291,461$ -$ 5,667,650$ 2,145,375$
LIABILITIES
Accounts payable 26,138$ -$ 430$ 119,651$
Due to other funds - 513,787 - -
Deposits held for others - - - -
Total liabilities 26,138 513,787 430 119,651
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - - - 7,663
Total deferred inflows of
resources - - - 7,663
FUND BALANCES (DEFICITS)
Restricted 265,323 - 5,667,220 2,018,061
Unassigned - (513,787) - -
Total fund balances (deficits) 265,323 (513,787) 5,667,220 2,018,061
Total liabilities, deferred inflows
of resources, and fund balances 291,461$ -$ 5,667,650$ 2,145,375$
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS
JUNE 30, 2019
Marana Study Session 01/14/2020 Page 139 of 259
PAG/RTA
Capital
Downtown
Reinvestment
Other Capital
Projects
Gladden
Farms
Capital
Vanderbilt
Farms
Capital
Saguaro
Springs
Capital Totals
-$ 1,025,176$ 5,062,618$ 670,568$ 29,772$ 125,478$ 15,000,692$
- - - 431 - 181 612
- - 2,804 - - - 12,618
- - 58,352 - - - 58,352
490,728 28,830 - - - - 527,150
490,728$ 1,054,006$ 5,123,774$ 670,999$ 29,772$ 125,659$ 15,599,424$
75,869$ -$ 90,827$ 308$ 99$ 237$ 313,559$
459,410 - - - - - 973,197
- - 62,400 - - - 62,400
535,279 - 153,227 308 99 237 1,349,156
- - - - - - 7,663$
- - - - - - 7,663
- 1,054,006 4,970,547 670,691 29,673 125,422 14,800,943
(44,551) - - - - - (558,338)
(44,551) 1,054,006 4,970,547 670,691 29,673 125,422 14,242,605
490,728$ 1,054,006$ 5,123,774$ 670,999$ 29,772$ 125,659$ 15,599,424$
Marana Study Session 01/14/2020 Page 140 of 259
Northwest
Transportation
Impact Fees
Northeast
Transportation
Impact Fees
South
Transportation
Impact Fees
Park Impact
Fees
Revenues:
Sales tax -$ -$ -$ -$
Property tax - - - -
Intergovernmental - - - 1,178
Licenses, fees & permits 124,450 418,885 1,930,920 1,555,897
Contributions - - - -
Investment income 6,452 15,836 100,612 42,595
Total revenues 130,902 434,721 2,031,532 1,599,670
Expenditures:
Current -
General government - - - -
Highways and streets - - - -
Culture and recreation - - - 43,774
Capital outlay 2,713 180 5,189 709,127
Total expenditures 2,713 180 5,189 752,901
Excess (deficiency) of revenues over
expenditures 128,189 434,541 2,026,343 846,769
Other financing sources (uses):
Transfers in - - - -
Transfers out - (552,270) (569,327) (3,431)
Total other financing sources (uses) - (552,270) (569,327) (3,431)
Change in fund balances 128,189 (117,729) 1,457,016 843,338
Fund balances (deficits), beginning of year 137,134 (396,058) 4,210,204 1,174,723
Fund balances (deficits), end of year 265,323$ (513,787)$ 5,667,220$ 2,018,061$
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECT FUNDS
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 141 of 259
PAG/RTA
Capital
Downtown
Reinvestment
Other Capital
Projects
Gladden
Farms
Capital
Vanderbilt
Farms
Capital
Saguaro
Springs
Capital Totals
-$ 231,594$ -$ -$ -$ -$ 231,594$
- - - 67,419 2,894 30,639 100,952
3,296,301 - 102,567 - - - 3,400,046
- - 229,681 - - - 4,259,833
- - 23,261 - - 3,385 26,646
- - 79,111 - - - 244,606
3,296,301 231,594 434,620 67,419 2,894 34,024 8,263,677
- - - 3,982 1,504 5,096 10,582
- - 20,907 - - - 20,907
- - 9,756 - - - 53,530
1,331,984 10,740 157,520 - - - 2,217,453
1,331,984 10,740 188,183 3,982 1,504 5,096 2,302,472
1,964,317 220,854 246,437 63,437 1,390 28,928 5,961,205
- 19,591 38,482 - - - 58,073
- - (1,031,117) - (28,900) - (2,185,045)
- 19,591 (992,635) - (28,900) - (2,126,972)
1,964,317 240,445 (746,198) 63,437 (27,510) 28,928 3,834,233
(2,008,868) 813,561 5,716,745 607,254 57,183 96,494 10,408,372
(44,551)$ 1,054,006$ 4,970,547$ 670,691$ 29,673$ 125,422$ 14,242,605$
Marana Study Session 01/14/2020 Page 142 of 259
Northwest Transportation Impact Fees
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Licenses, fees & permits 38,500$ 38,500$ 124,450$ 85,950$
Investment income - - 6,452 6,452
Total revenues 38,500 38,500 130,902 92,402
Expenditures:
Current -
Highways and streets - 24,361 - 24,361
Capital outlay 33,917 9,556 2,713 6,843
Total expenditures 33,917 33,917 2,713 31,204
Excess (deficiency) of revenues over
expenditures 4,583 4,583 128,189 123,606
Other financing sources (uses):
Transfers out - - - -
Total other financing sources (uses)- - - -
Change in fund balances 4,583 4,583 128,189 123,606
Fund balances (deficits), July 1, 2018 - - 137,134 137,134
Fund balances (deficits), June 30, 2019 4,583$ 4,583$ 265,323$ 260,740$
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, 2019
Marana Study Session 01/14/2020 Page 143 of 259
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Licenses, fees & permits 297,820$ 297,820$ 418,885$ 121,065$
Investment income - - 15,836 15,836
Total revenues 297,820 297,820 434,721 136,901
Expenditures:
Current -
Highways and streets - - - -
Capital outlay - - 180 (180)
Total expenditures - - 180 (180)
Excess (deficiency) of revenues over
expenditures 297,820 297,820 434,541 136,721
Other financing sources (uses):
Transfers out (404,483) (404,483) (552,270) (147,787)
Total other financing sources (uses)(404,483) (404,483) (552,270) (147,787)
Change in fund balances (106,663) (106,663) (117,729) (11,066)
Fund balances (deficits), July 1, 2018 - - (396,058) (396,058)
Fund balances (deficits), June 30, 2019 (106,663)$ (106,663)$ (513,787)$ (407,124)$
Northeast Transportation Impact Fees
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, 2019
Marana Study Session 01/14/2020 Page 144 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Licenses, fees & permits 599,445$ 599,445$ 1,930,920$ 1,331,475$
Investment income - - 100,612 100,612
Total revenues 599,445 599,445 2,031,532 1,432,087
Expenditures:
Current -
Highways and streets - - - -
Capital outlay - - 5,189 (5,189)
Total expenditures - - 5,189 (5,189)
Excess (deficiency) of revenues over
expenditures 599,445 599,445 2,026,343 1,426,898
Other financing sources (uses):
Transfers out (416,847) (416,847) (569,327) (152,480)
Total other financing sources (uses)(416,847) (416,847) (569,327) (152,480)
Change in fund balances 182,598 182,598 1,457,016 1,274,418
Fund balances (deficits), July 1, 2018 - - 4,210,204 4,210,204
Fund balances (deficits), June 30, 2019 182,598$ 182,598$ 5,667,220$ 5,484,622$
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, 2019
South Transportation Impact Fees
Marana Study Session 01/14/2020 Page 145 of 259
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Intergovernmental -$ -$ 1,178$ 1,178$
Licenses, fees & permits 610,328 610,328 1,555,897 945,569
Investment income - - 42,595 42,595
Total revenues 610,328 610,328 1,599,670 989,342
Expenditures:
Current -
Culture and recreation - 1,700,431 43,774 1,656,657
Capital outlay 3,022,840 1,322,409 709,127 613,282
Total expenditures 3,022,840 3,022,840 752,901 2,269,939
Excess (deficiency) of revenues over
expenditures (2,412,512) (2,412,512) 846,769 3,259,281
Other financing sources:
Transfers out - - (3,431) (3,431)
Total other financing sources - - (3,431) (3,431)
Change in fund balances (2,412,512) (2,412,512) 843,338 3,255,850
Fund balances (deficits), July 1, 2018 - - 1,174,723 1,174,723
Fund balances (deficits), June 30, 2019 (2,412,512)$ (2,412,512)$ 2,018,061$ 4,434,004$
Park Impact Fees
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, 2019
Marana Study Session 01/14/2020 Page 146 of 259
PAG Capital
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Licenses, fees & permits 5,069,038$ 5,069,038$ 3,296,301$ (1,772,737)$
Contributions - - - -
Total revenues 5,069,038 5,069,038 3,296,301 (1,772,737)
Expenditures:
Current -
Highways and streets
Capital outlay 5,069,037 5,069,037 1,331,984 3,737,053
Total expenditures 5,069,037 5,069,037 1,331,984 3,737,053
Excess (deficiency) of revenues over
expenditures 1 1 1,964,317 1,964,316
Other financing sources (uses):
Transfers out - - - -
Total other financing sources (uses)- - - -
Change in fund balances 1 1 1,964,317 1,964,316
Fund balances (deficits), July 1, 2018 - - (2,008,868) (2,008,868)
Fund balances (deficits), June 30, 2019 1$ 1$ (44,551)$ (44,552)$
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - PAG CAPITAL
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 147 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Sales tax 223,600$ 223,600$ 231,594 7,994$
Total revenues 223,600 223,600 231,594 7,994
Expenditures:
Current -
Economic and community development 470,480 470,480 - 470,480
Capital outlay 360,015 360,015 10,740 349,275
Total expenditures 830,495 830,495 10,740 819,755
Excess (deficiency) of revenues over
expenditures (606,895) (606,895) 220,854 827,749
Other financing sources (uses):
Transfers in - - 19,591 (19,591)
Total other financing sources (uses)- - 19,591 19,591
Change in fund balances (606,895) (606,895) 240,445 847,340
Fund balances (deficits), July 1, 2018 - - 813,561 (813,561)
Fund balances (deficits), June 30, 2019 (606,895)$ (606,895)$ 1,054,006$ 33,779$
Downtown Reinvestment
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, 2019
Marana Study Session 01/14/2020 Page 148 of 259
Other Captial Projects
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Intergovernmental 2,450,812$ 2,450,812$ 102,567$ (2,348,245)$
Licenses, fees & permits - - 229,681 229,681
Contributions 400,000 400,000 23,261 (376,739)
Investment income - - 79,111 79,111
Total revenues 2,850,812 2,850,812 434,620 (2,416,192)
Expenditures:
Highways and streets 25,000 25,000 20,907 4,093
Culture and recreation - - 9,756 (9,756)
Capital outlay 2,189,827 2,189,827 157,520 2,032,307
Total expenditures 2,214,827 2,214,827 188,183 2,026,644
Excess (deficiency) of revenues over 635,985 635,985 246,437 (389,548)
expenditures
Other financing sources (uses):
Transfers in 642,183 642,183 38,482 (603,701)
Transfers out - - (1,031,117) (1,031,117)
Total other financing sources (uses) 642,183 642,183 (992,635) (1,634,818)
Changes in fund balances 1,278,168 1,278,168 (746,198) (2,024,366)
Fund balances (deficits), July 1, 2018 - - 5,716,745 5,716,745
Fund balances (deficits), June 30, 2019 1,278,168$ 1,278,168$ 4,970,547$ 3,692,379$
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - OTHER CAPITAL PROJECTS
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 149 of 259
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property tax 67,453$ 67,453$ 67,419$ (34)$
Total revenues 67,453 67,453 67,419 (34)
Expenditures:
Current -
General government 528,713 528,713 3,982 524,731
Capital outlay - - - -
Total expenditures 528,713 528,713 3,982 524,731
Excess (deficiency) of revenues over
expenditures (461,260) (461,260) 63,437 524,697
Other financing sources (uses):
Transfers out - - - -
Total other financing sources (uses)- - - -
Change in fund balances (461,260) (461,260) 63,437 524,697
Fund balances (deficits), July 1, 2018 - - 607,254 607,254
Fund balances (deficits), June 30, 2019 (461,260)$ (461,260)$ 670,691$ 1,131,951$
Gladden Farms Community Facilities District Capital
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, 2019
Marana Study Session 01/14/2020 Page 150 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property tax 2,884$ 2,884$ 2,894$ 10$
Contributions 27,500 27,500 - (27,500)
Total revenues 30,384 30,384 2,894 (27,490)
Expenditures:
Current -
General government 30,384 30,384 1,504 28,880
Total expenditures 30,384 30,384 1,504 28,880
Excess (deficiency) of revenues over
expenditures - - 1,390 1,390
Other financing sources (uses):
Transfers out - - (28,900) 28,900
Total other financing sources (uses)- - (28,900) 28,900
Change in fund balances - - (27,510) (27,510)
Fund balances (deficits), July 1, 2018 - - 57,183 57,183
Fund balances (deficits), June 30, 2019 -$ -$ 29,673$ 29,673$
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, 2019
Vanderbilt Farms Capital
Marana Study Session 01/14/2020 Page 151 of 259
Original Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property tax 285,167$ 285,167$ 30,639$ (254,528)$
Contributions 106,833 106,833 3,385 (103,448)
Total revenues 392,000 392,000 34,024 (357,976)
Expenditures:
Current -
General government 442,000 442,000 5,096 436,904
Capital outlay 4,000,000 4,000,000 - 4,000,000
Debt service -
Bond issuance costs 450,000 450,000 - 450,000
Total expenditures 4,892,000 4,892,000 5,096 4,886,904
Excess (deficiency) of revenues over
expenditures (4,500,000) (4,500,000) 28,928 4,528,928
Other financing sources (uses):
Bond proceeds 4,500,000 4,500,000 - (4,500,000)
Total other financing sources (uses)4,500,000 4,500,000 - (4,500,000)
Change in fund balances - - 28,928 28,928
Fund balances (deficits), July 1, 2018 - - 96,494 96,494
Fund balances (deficits), June 30, 2019 -$ -$ 125,422$ 125,422$
Saguaro Springs Capital
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, 2019
Marana Study Session 01/14/2020 Page 152 of 259
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Marana Study Session 01/14/2020 Page 153 of 259
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.
Saguaro Springs Debt Service Fund – This fund accounts for the accumulation of resources
and payment of principal and interest on the Saguaro Springs general obligation bonds.
Marana Study Session 01/14/2020 Page 154 of 259
2013 Bond
Debt Service
2014 Bond
Debt Service
2017 Bond
Debt Service
ASSETS
Cash and cash equivalents 2,403,463$ 739,006$ 1,659,450$
Property taxes receivable - - -
Interest receviable 1,786 - -
Total assets 2,405,249$ 739,006$ 1,659,450$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$
Total liabilities - - -
Fund balances:
Reserved for:
Restricted 2,405,249 739,006 1,659,450
Total fund balances 2,405,249 739,006 1,659,450
Total liabilities and fund balances 2,405,249$ 739,006$ 1,659,450$
TOWN OF MARANA, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2019
Marana Study Session 01/14/2020 Page 155 of 259
Other Debt
Service
Gladden Farms
Debt Service
Saguaro Springs
Debt Service Totals
-$ 398,229$ 181,523$ 5,381,671$
- 3,076 1,508 4,584
- - - 1,786
-$ 401,305$ 183,031$ 5,388,041$
-$ -$ 225$ 225$
- - 225 225
- 401,305 182,806 5,387,816
- 401,305 182,806 5,387,816
-$ 401,305$ 183,031$ 5,388,041$
Marana Study Session 01/14/2020 Page 156 of 259
2013 Bond
Debt Service
2014 Bond
Debt Service
2017 Bond Debt
Service
Revenues:
Property Taxes -$ -$ -$
Investment income 2,390 202 -
Total revenues 2,390 202 -
Expenditures:
Capital Outlay - - -
Debt service -
Principal retirement 1,680,000 664,000 840,000
Interest and fiscal charges 1,352,525 130,469 921,300
Bond Issuance Costs - - -
Total expenditures 3,032,525 794,469 1,761,300
Excess (deficiency) of revenues over
expenditures (3,030,135) (794,267) (1,761,300)
Other financing sources (uses):
Face value of bonds issued - - -
Premium on bonds issued - - -
Transfers in 3,062,840 800,761 2,114,900
Transfers out - - -
Total other financing sources (uses)3,062,840 800,761 2,114,900
Change in fund balances 32,705 6,494 353,600
Fund balances, beginning of year 2,372,544 732,512 1,305,850
Fund balances, end of year 2,405,249$ 739,006$ 1,659,450$
TOWN OF MARANA, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 157 of 259
Other Debt
Service
Gladden Farms
Debt Service
Saguaro
Springs Debt
Service Totals
-$ 479,398$ 253,574$ 732,972$
- 2,032 - 4,624
- 481,430 253,574 737,596
- - 3,616,367 3,616,367
- 205,000 - 3,389,000
- 268,212 73,143 2,745,649
- - 314,002 314,002
- 473,212 4,003,512 10,065,018
- 8,218 (3,749,938) (9,327,422)
- - 3,845,000 3,845,000
- - 87,744 87,744
- - - 5,978,501
(45,514) - - (45,514)
(45,514) - 3,932,744 9,865,731
(45,514) 8,218 182,806 538,309
45,514 393,087 - 4,849,507
-$ 401,305$ 182,806$ 5,387,816$
Marana Study Session 01/14/2020 Page 158 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property Taxes -$ -$ -$ -$
Contributions - - - -
Investment income - - 2,390 2,390
Total revenues - - 2,390 2,390
Expenditures:
Debt service -
Principal retirement 1,680,000 1,680,000 1,680,000 -
Interest and fiscal charges 1,352,525 1,352,525 1,352,525 -
Total expenditures 3,032,525 3,032,525 3,032,525 -
Excess (deficiency) of revenues over
expenditures (3,032,525) (3,032,525) (3,030,135) 2,390
Other financing sources (uses):
Transfers in 3,032,525 3,032,525 3,062,840 (30,315)
Total other financing sources (uses)3,032,525 3,032,525 3,062,840 (30,315)
Change in fund balances - - 32,705 32,705
Fund balances (deficits), July 1, 2018 - - 2,372,544 2,372,544
Fund balances (deficits), June 30, 2019 -$ -$ 2,405,249$ 2,405,249$
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, 2019
2013 Bond Debt Service
Marana Study Session 01/14/2020 Page 159 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property Taxes -$ -$ -$ -$
Contributions - - - -
Investment income - - 202 202
Total revenues - - 202 202
Expenditures:
Debt service -
Principal retirement 664,000 664,000 664,000 -
Interest and fiscal charges 130,469 130,469 130,469 -
Total expenditures 794,469 794,469 794,469 -
Excess (deficiency) of revenues over
expenditures (794,469) (794,469) (794,267) 202
Other financing sources (uses):
Transfers in 794,469 794,469 800,761 (6,292)
Total other financing sources (uses)794,469 794,469 800,761 (6,292)
Change in fund balances - - 6,494 6,494
Fund balances (deficits), July 1, 2018 - - 732,512 732,512
Fund balances (deficits), June 30, 2019 -$ -$ 739,006$ 739,006$
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, 2019
2014 Bond Debt Service
Marana Study Session 01/14/2020 Page 160 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property Taxes -$ -$ -$ -$
Contributions - - - -
Investment income - - - -
Total revenues - - - -
Expenditures:
Debt service -
Principal retirement 840,000 840,000 840,000 -
Interest and fiscal charges 926,300 926,300 921,300 5,000
Total expenditures 1,766,300 1,766,300 1,761,300 5,000
Excess (deficiency) of revenues over
expenditures (1,766,300) (1,766,300) (1,761,300) 5,000
Other financing sources (uses):
Transfers in 1,469,793 1,469,793 2,114,900 (645,107)
Total other financing sources (uses)1,469,793 1,469,793 2,114,900 (645,107)
Change in fund balances (296,507) (296,507) 353,600 650,107
Fund balances (deficits), July 1, 2018 - - 1,305,850 1,305,850
Fund balances (deficits), June 30, 2019 (296,507)$ (296,507)$ 1,659,450$ 1,955,957$
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
2017 BOND DEBT SERVICE
YEAR ENDED JUNE 30, 2019
2017 Bond Debt Service
Marana Study Session 01/14/2020 Page 161 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property Taxes 477,013$ 477,013$ 479,398$ 2,385$
Contributions - - - -
Investment income - - 2,032 2,032
Total revenues 477,013 477,013 481,430 4,417
Expenditures:
Debt service -
Principal retirement 205,000 205,000 205,000 -
Interest and fiscal charges 272,013 272,013 268,212 3,801
Total expenditures 477,013 477,013 473,212 3,801
Excess (deficiency) of revenues over
expenditures - - 8,218 8,218
Other financing sources (uses):
Transfers in - - - -
Total other financing sources (uses)- - - -
Change in fund balances - - 8,218 8,218
Fund balances (deficits), July 1, 2018 - - 393,087 393,087
Fund balances (deficits), June 30, 2019 -$ -$ 401,305$ 401,305$
Gladden Farms Debt Service
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, 2019
Marana Study Session 01/14/2020 Page 162 of 259
Original
Budget Final Budget Actual
Variance -
Positive
(Negative)
Revenues:
Property Taxes -$ -$ 253,574$ 253,574$
Contributions - - - -
Investment income - - - -
Total revenues - - 253,574 253,574
Expenditures:
Capital Outlay - - 3,616,367 (3,616,367)
Debt service -
Principal retirement - - - -
Interest and fiscal charges - - 73,143 (73,143)
Bond Issuance Costs - - 314,002 (314,002)
Total expenditures - - 4,003,512 (4,003,512)
Excess (deficiency) of revenues over
expenditures - - (3,749,938) (3,749,938)
Face value of bonds issued - - - -
Face value of bonds issued - - 3,845,000 (3,845,000)
Premium on bonds issued - - 87,744 (87,744)
Transfers out - - - -
Total other financing sources (uses)- - 3,932,744 (3,932,744)
Change in fund balances - - 182,806 182,806
Fund balances (deficits), July 1, 2018 - - - -
Fund balances (deficits), June 30, 2019 -$ -$ 182,806$ 182,806$
TOWN OF MARANA, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN
FUND BALANCES - BUDGET AND ACTUAL - NON-MAJOR DEBT SERVICE FUNDS
SAGUARO SPRINGS DEBT SERVICE
YEAR ENDED JUNE 30, 2019
Saguaro Springs Debt Service
Marana Study Session 01/14/2020 Page 163 of 259
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Marana Study Session 01/14/2020 Page 164 of 259
STATISTICAL INFORMATION
Marana Study Session 01/14/2020 Page 165 of 259
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Marana Study Session 01/14/2020 Page 166 of 259
TOWN OF MARANA, ARIZONA
STATISTICAL SECTION
JUNE 30, 2019
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.
Schedule Page
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 Years 1 146
Changes in Net Position - Last Ten Fiscal Years 2 148
Fund Balances of Governmental Funds - Last Ten Fiscal Years 3 152
Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 4 154
Revenue Capacity
These schedules contain information to help users understand and assess the Town's local revenue
source, the property tax.
Governmental Activities Tax Revenues by Source - Last Ten Years 5 158
Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable Property - 6 159
Last Ten Years
Property Tax Rates - Direct and Overlapping Governments - Last Ten Years 7 160
Principal Property Taxpayers - Current Year and Nine Years Ago 8 162
Property Tax Levies and Collections - Last Ten Fiscal Years 9 163
Tangerine Farms Road Improvement District Active Assessments 10 164
Sales Tax by Industry - Last Ten Years 11 174
Excise Tax Collections - Last Ten Years 12 176
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 Years 13 178
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 14 179
Direct and Overlapping Governmental Activities Debt 15 180
Legal Debt Margin Information 16 181
Pledged-Revenue Coverage - Last Ten Fiscal Years 17 182
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 Years 18 184
Principal Employers - Current Year and Nine Years Ago 19 185
Principal Retail and Contracting Sales Taxpayers - Current Year and Nine Years Ago 20 186
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 Years 21 187
Single Family Residential Permits Issued - Last Ten Years 22 188
Capital Assets Statistics by Function 23 190
Marana Study Session 01/14/2020 Page 167 of 259
2010 2011 2012 2013
Governmental activities
Net investment in capital assets 193,721$ 196,326$ 194,287$ 184,949$
Restricted 25,459 28,136 29,004 62,437
Unrestricted 39,929 38,889 39,911 1,384
Total governmental activities net position 259,109 263,351 263,202 248,770
Business-type activities
Net investment in capital assets 44,310 42,148 112,528 111,045
Restricted - 73 146 219
Unrestricted (5,813) (2,683) (17,519) (2,677)
Total business-type activities net position 38,497 39,538 95,155 108,587
Primary government
Net investment in capital assets 238,031 238,474 306,815 295,994
Restricted 25,459 28,209 29,150 62,656
Unrestricted 34,116 36,206 22,392 (1,293)
Total primary government net position 297,606$ 302,889$ 358,357$ 357,357$
Source: Statement of Net Position
(Amounts expressed in thousands)
TOWN OF MARANA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Marana Study Session 01/14/2020 Page 168 of 259
2014 2015 2016 2017 2018 2019
(as restated)(as restated)
189,171$ 190,297$ 193,845$ 210,137$ 236,208$ 243,685$
58,820 36,418 43,127 31,163 17,242 19,985
(283) (4,283) (6,492) 5,119 16,272 16,827
247,708 222,432 230,480 246,419 269,722 280,497
109,111 109,649 112,357 101,524 95,777 98,287
293 365 365 365 365 366
(208) 984 1,313 16,319 (4,285) (2,176)
109,196 110,998 114,035 118,208 91,857 96,477
298,282 299,946 306,202 311,661 331,985 341,972
59,113 36,783 43,492 31,528 17,607 20,351
(491) (3,299) (5,179) 21,439 11,987 14,651
356,904$ 333,430$ 344,515$ 364,628$ 361,579$ 376,974$
Marana Study Session 01/14/2020 Page 169 of 259
2010 2011 2012 2013
Expenses
Governmental activities:
General government 14,638$ 10,643$ 10,833$ 9,532$
Public safety 10,675 9,044 10,206 11,777
Highways and streets 14,986 15,425 17,233 18,327
Health & Welfare 102 86 23 23
Culture & recreation 3,943 3,335 2,173 3,831
Economic & community development 4,835 4,596 4,258 4,123
Interest on long-term debt 865 5,173 4,721 4,312
Total governmental activities expenses 50,044 48,302 49,447 51,925
Business-type activities:
Airport 3,803 3,392 1,112 1,179
Wastewater N/A N/A 3,831 2,599
Water 1,136 1,273 3,074 3,779
Total business-type activities expenses 4,939 4,665 8,017 7,557
Total primary government expenses 54,983$ 52,967$ 57,464$ 59,482$
Program Revenues
Governmental activities:
Charges for services:
General government 939$ 830$ 881$ 975$
Culture and recreation 211 140 134 216
Economic & community development 1,974 2,256 2,513 3,906
Operating grants and contributions 4,221 3,555 3,202 3,747
Capital grants and contributions 11,618 14,963 9,017 12,373
Total government activities program revenues 18,963 21,744 15,747 21,217
Business-type activities:
Charges for services:
Airport 235 238 233 239
Wastewater N/A N/A 241 730
Water 3,035 3,103 3,281 3,455
Capital grants and contributions 3,489 2,669 60,207 1,958
Total business-type activity program revenues 6,759 6,010 63,962 6,382
Total primary government program revenues 25,722 27,754 79,709 27,599
Net (expense)/revenue
Governmental activities (31,081) (26,558) (33,700) (33,699)
Business-type activities 1,820 1,345 55,945 55,944
Total primary government net expense (29,261)$ (25,213)$ 22,245$ 22,245$
TOWN OF MARANA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
(Amounts expressed in thousands)
Marana Study Session 01/14/2020 Page 170 of 259
2014 2015 2016 2017 2018 2019
10,662$ 14,707$ 17,531$ 19,393$ 18,492$ 23,846$
12,134 14,324 14,423 16,736 16,114 16,059
19,053 18,522 22,659 40,172 27,893 21,629
23 - - 278 236 453
3,131 4,433 3,422 6,006 5,147 5,294
4,691 4,796 4,779 4,902 4,328 4,076
4,543 4,106 3,962 2,335 3,077 1,858
54,237 60,888 66,776 89,822 75,287 73,215
1,197 1,289 1,829 1,772 1,816 1,395
2,756 3,431 3,662 3,983 4,598 5,276
5,244 4,150 4,405 5,368 5,979 6,178
9,197 8,870 9,896 11,123 12,393 12,849
63,434$ 69,758$ 76,672$ 100,945$ 87,680$ 86,064$
941$ 4,490$ 4,787$ 4,909$ 5,073$ 5,007$
200 305 265 287 324 317
3,386 4,585 4,027 4,355 4,993 5,260
4,442 4,360 4,507 4,619 4,665 2,259
10,268 11,281 17,157 44,371 25,856 13,679
19,237 25,021 30,743 58,541 40,911 26,522
248 239 247 251 294 329
834 933 1,016 1,065 1,502 1,626
3,766 4,146 4,243 5,064 5,609 5,750
2,534 4,015 5,214 5,941 9,890 8,977
7,382 9,333 10,720 12,321 17,295 16,682
26,619 34,354 41,463 70,862 58,206 43,204
(35,000) (35,867) (36,033) (31,281) (34,376) (46,693)
(1,815) 463 824 1,198 4,902 3,833
(36,815)$ (35,404)$ (35,209)$ (30,083)$ (29,474)$ (42,860)$
Marana Study Session 01/14/2020 Page 171 of 259
2010 2011 2012 2013
General Revenues and Other Changes in
Net Position
Governmental activities:
General revenues
City sales taxes 21,662$ 22,948$ 24,539$ 24,768$
Property taxes 623 584 506 447
Franchise fees 313 322 333 349
State shared revenues 6,462 5,719 6,943 7,714
Investment income (loss)135 105 97 152
Miscellaneous 774 814 803 737
Gain on sale of assets - - - 36
Transfers 291 309 329 (15,912)
Total governmental activities 30,260 30,801 33,550 18,291
Business-type activities:
General revenues
Investment income 1 1 1 2
Miscellaneous 38 4 1 19
Transfers (291) (309) (329) 15,911
Special item - - - (1,326)
Total business-type activities (252) (304) (327) 14,606
Total primary government 30,008 30,497 33,223 32,897
Change in Net Position
Governmental activities (821) 4,243 (150) (15,408)
Business-type activities 1,568 1,041 55,618 70,550
Total primary government 747$ 5,284$ 55,468$ 55,142$
Source: Statement of Activities
(Amounts expressed in thousands)
TOWN OF MARANA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Marana Study Session 01/14/2020 Page 172 of 259
2014 2015 2016 2017 2018 2019
26,226$ 28,059$ 35,442$ 37,500$ 41,689$ 41,680$
421 442 482 509 553 834
377 401 447 488 507 513
8,273 8,820 9,039 10,619 11,506 12,013
171 149 173 238 663 1,954
854 813 676 744 885 1,163
- 116 - - - -
(2,384) (404) (2,177) (2,878) 1,875 (688)
33,938 38,396 44,082 47,220 57,678 57,469
1 9 16 43 187 77
39 19 19 54 30 21
2,384 404 2,177 2,878 (1,875) 688
- - - - - -
2,424 432 2,212 2,975 (1,658) 786
36,362 38,828 46,294 50,195 56,020 58,255
(1,062) 2,529 8,049 15,939 23,302 10,776
609 895 3,036 4,173 3,244 4,619
(453)$ 3,424$ 11,085$ 20,112$ 26,546$ 15,395$
Marana Study Session 01/14/2020 Page 173 of 259
2010 2011*2012 2013 2014
General Fund
Reserved 313$ -$ -$ -$ -$
Unreserved 14,779 - - - -
Nonspendable - 229 293 2,803 2,540
Unassigned - 16,149 18,004 18,115 21,123
Total general fund 15,092 16,378 18,297 20,918 23,663
All other governmental funds
Reserved 7,099$ -$ -$ -$ -$
Unreserved, reported in:
Major governmental funds 6,341 - - - -
Special revenue funds 4,844 - - - -
Capital revenue funds 7,174 - - - -
Debt service funds - - - - -
Nonspendable - - - - 33
Restricted - 28,137 29,821 47,616 40,774
Unassigned - - (816) (444) (472)
Total all other governmental funds 25,458$ 28,137$ 29,005$ 47,172$ 40,335$
Total fund balance of governmental funds 40,550$ 44,515$ 47,302$ 68,090$ 63,998$
2015 2016 2017 2018 2019
General Fund
Reserved -$ -$ -$ -$ -$
Unreserved - - - - -
Nonspendable 2,282 2,418 2,367 4,853 4,513
Unassigned 22,309 20,425 22,640 24,735 32,043
Total general fund 24,591 22,843 25,007 29,588 36,556
All other governmental funds
Reserved -$ -$ -$ -$ -$
Unreserved, reported in:- -
Major governmental funds - - - - -
Special revenue funds - - - - -
Capital revenue funds - - - - -
Debt service funds - - - - -
Nonspendable - 3 1 261 1
Restricted 40,771 48,486 49,960 44,989 42,068
Unassigned (863) (525) (1,908) (2,405) (562)
Total all other governmental funds 39,908$ 47,964$ 48,053$ 42,845$ 41,507$
Total fund balance of governmental funds 64,499$ 70,807$ 73,060$ 72,433$ 78,063$
*GASB Statement No. 54 implemented in fiscal year 2011, changed the way fund balances are classified.
Source: Governmental Fund Statements
TOWN OF MARANA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
(Amounts expressed in thousands)
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Marana Study Session 01/14/2020 Page 175 of 259
2010 2011 2012 2013
Revenues
Sales taxes 21,662$ 22,948$ 24,539$ 24,768$
Property taxes 622 584 506 497
Intergovernmental revenues 16,331 17,707 14,960 18,000
Licenses, fees and permits 3,681 4,361 4,906 8,586
Fines, forfeitures and penalties 879 730 752 871
Charges for services 621 430 456 379
Lease Income 555 647 92 105
Special assessments 2,352 2,239 2,302 2,337
Contributions 381 3,690 537 589
System development fees - - - -
Investment earnings 135 105 97 152
Miscellaneous 820 614 636 804
Total revenues 48,039 54,055 49,783 57,088
Expenditures
General government 9,080 9,661 8,481 7,860
Public safety 10,164 9,334 10,590 12,067
Highways and streets 2,854 3,043 3,657 4,026
Health and welfare 75 59 - -
Economic and community development 4,654 4,520 4,259 4,479
Culture and recreation 3,309 2,552 2,604 2,859
Town attorney - - - -
Magistrate Court - - - -
Community development - - - -
Capital outlay 29,420 13,800 7,040 3,700
Debt service
Principal 3,191 3,490 6,059 4,177
Interest 4,931 4,832 4,635 4,408
Other charges 109 - 521
Total expenditures 67,678 51,400 47,325 44,097
Excess of revenues
over (under) expenditures (19,639) 2,655 2,458 12,991
Fiscal Year
TOWN OF MARANA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
(Amounts expressed in thousands)
Marana Study Session 01/14/2020 Page 176 of 259
2014 2015 2016 2017 2018 2019
26,226$ 28,058$ 35,442$ 37,500$ 41,689$ 41,680$
424 447 489 521 572 834
12,732 14,927 20,537 43,261 30,919 20,040
6,549 7,048 6,243 7,078 8,617 10,034
831 889 750 728 750 637
509 692 500 563 684 718
99 96 90 113 136 148
2,176 2,050 2,129 2,340 989 2,869
1,098 583 1,216 214 87 49
- -- - - -
171 149 173 238 663 1,954
927 853 376 460 512 757
51,742 55,792 67,945 93,016 85,618 79,720
8,953 9,652 12,017 13,347 12,949 14,021
11,952 13,886 14,068 14,477 14,774 15,502
4,214 5,441 5,796 6,037 4,893 5,031
- -- 365 229 290
4,508 4,351 4,146 4,642 4,452 4,744
3,195 3,598 3,710 4,266 4,903 4,613
- -- - - -
- -- - - -
- -- - - -
4,453 9,885 11,840 34,275 40,960 24,478
10,338 3,412 3,992 5,083 2,260 5,463
4,522 4,491 4,212 3,882 2,745 3,105
97 --1,023 - 314
52,232 54,716 59,781 87,397 88,165 77,561
(490) 1,076 8,164 5,619 (2,547) 2,159
Marana Study Session 01/14/2020 Page 177 of 259
2010 2011 2012 2013
Other financing sources (uses)
Transfers in 8,492 5,297 5,998 19,700
Transfers out (8,201) (4,988) (5,669) (35,611)
Proceeds from sale of capital assets - - - 57
Capitalized interest - - - -
Bonds issued - 1,000 - 34,780
Note Proceeds - - - - p p
Premium on bonds issued - - - 3,031
Discount on bonds issued - - - -
Payments to refunded bond escrow agent - - - (14,160)
Residual equity transfer out - - - -
Total other financing sources (uses) 291 1,309 329 7,797
Net change in fund balance 2,946$ 3,767$ 13,320$ 7,307$
Debt service as a percentage of
noncapital expenditures 27.0%27.5%26.5%21.5%
Source: Governmental Fund Statements
Fiscal Year
TOWN OF MARANA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(Modified accrual basis of accounting)
(Amounts expressed in thousands)
Marana Study Session 01/14/2020 Page 178 of 259
2014 2015 2016 2017 2018 2019
14,155 6,380 6,498 7,680 12,607 6,082
(16,540) (6,955) (8,675) (10,558) (10,732) (6,770)
- - 321 45 46 226
- - - 178 -
6,493 - - 42,065 - 3,845
- - - - - -
- - - 4,089 - 88
- - - -
(14,160) - - (46,865) -
- - - - -
(10,052) (575) (1,856) (3,366) 1,921 3,471
(8,976)$ (575)$ 6,308$ 2,253$ (626)$ 5,630$
31.3%18.1%16.5%12.6%9.4%15.3%
Marana Study Session 01/14/2020 Page 179 of 259
Fiscal
Year Sales Tax
Highway User
Revenue taxes Total
2019 41,681$ 3,608$ 45,289$
2018 41,672 3,316 45,005
2017 37,418 3,099 40,599
2016 35,374 2,623 38,065
2015 27,974 2,484 30,458
2014 25,958 2,286 28,244
2013 24,618 2,257 26,875
2012 24,300 2,061 26,361
2011 22,800 1,869 24,669
2010 21,578 1,806 23,384
Source: Statement of Revenues
(Amounts expressed in thousands)
TOWN OF MARANA
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Accrual basis of accounting)
Marana Study Session 01/14/2020 Page 180 of 259
TOWN OF MARANA
ASSESSED VALUE AND ESTIMATED ACTUAL OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Fiscal
Year
Ended
June 30 Tax Year
Residential
Property
Commercial
Property
Less: Tax
Exempt Real
Property
Total
Taxable
Assessed
Value
Total
Direct Tax
Rate
Estimated
Actual
Taxable
Value
Assessed
Value as a
Percentage
of Actual
Value
2020 2019 397,817$ 138,847$ 42,749$ 579,413 8.7000 5,319,890 10.9%
2019 2018 360,385 133,139 41,518 535,042 5.8400 4,898,582 10.9%
2018 2017 332,423 126,920 45,746 505,089 3.7000 4,641,025 10.9%
2017 2016 308,417 118,250 46,818 473,485 3.7000 4,357,867 10.9%
2016 2015 282,354 116,764 45,889 445,007 3.7000 4,036,488 11.0%
2015 2014 258,425 123,295 43,910 425,630 3.7000 3,787,907 11.2%
2014 2013 237,918 116,915 40,974 395,807 3.7000 3,499,549 11.3%
2013 2012 302,937 91,843 34,642 429,422 3.7000 3,676,365 11.7%
2012 2011 321,846 93,746 30,432 446,024 3.7000 3,784,297 11.8%
2011 2010 341,429 123,400 19,489 484,318 3.7000 4,014,232 12.1%
Source: Pima County Assessor's Office Abstract of the Assessment Roll
Marana Study Session 01/14/2020 Page 181 of 259
Fiscal
Year
Tax
Year
Pima County
(General
Fund)
Road Tax County Library
District
Debt
Service
Flood
Control
District
State
Education
Equalization
Assistance
Tax
2019/20 2019 3.9996 - 0.5353 0.6900 0.3335 0.4566
2018/19 2018 4.0696 - 0.5153 0.6900 0.3335 0.4741
2017/18 2017 4.2096 0.2500 0.5053 0.7000 0.3135 0.4875
2016/17 2016 4.2896 - 0.5153 0.7000 0.3335 0.5010
2015/16 2015 4.3877 - 0.5153 0.7000 0.3135 0.5054
2014/15 2014 4.2779 - 0.4353 0.7000 0.3035 0.5089
2013/14 2013 3.6665 - 0.3753 0.7800 0.2635 0.5123
2012/13 2012 3.4178 - 0.3460 0.7800 0.2635 0.4717
2011/12 2011 3.4178 - 0.3460 0.7800 0.2635 0.4259
2010/11 2010 3.3133 - 0.3100 0.7500 0.2635 0.3564
Fiscal
Year
Tax
Year
Central
Arizona Water
Conservation
District
Marana
School District
Total
Overlapping
Rates
Town of
Marana
Gladden
Farms
Community
Facilities
District
Gladden
Farms II
Community
Facilities
District
2019/20 2019 0.1400 5.8650 23.2976 - 2.8000 2.8000
2018/19 2018 0.1400 6.0840 23.6850 - 2.4400 0.3000
2017/18 2017 0.1400 6.2334 24.1015 - 2.8000 0.3000
2016/17 2016 0.1400 6.3871 24.1757 - 2.8000 0.3000
2015/16 2015 0.1400 6.3370 23.8575 - 2.8000 0.3000
2014/15 2014 0.1400 6.2288 23.5167 - 2.8000 0.3000
2013/14 2013 0.1400 6.0085 22.8209 - 2.8000 0.3000
2012/13 2012 0.1000 5.5863 20.9958 - 2.8000 0.3000
2011/12 2011 0.1000 5.2047 20.3689 - 2.8000 0.3000
2010/11 2010 0.1000 4.6995 19.4258 - 2.8000 0.3000
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
TOWN OF MARANA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Marana Study Session 01/14/2020 Page 182 of 259
Flowing
Wells School
District
Community
College
District
Northwest
Fire District
Fire District
Assistance
6.8539 1.3758 3.0049 0.0430
6.8860 1.3983 3.0501 0.0441
6.7539 1.389 3.0734 0.0459
6.8971 1.3733 2.9920 0.0468
6.6292 1.3689 2.9138 0.0467
6.6135 1.3344 2.9272 0.0472
6.7146 1.2933 3.0213 0.0456
5.9778 1.1741 2.8339 0.0447
5.9689 1.1094 2.7109 0.0418
6.0407 1.0848 2.4646 0.0430
Vanderbilt
Farms
Community
Facilities
District
Saguaro
Springs
Community
Facilities
District
Total
Direct
Rates
Total Direct
&
Overlapping
Rates
0.3000 2.8000 8.7000 31.9976
0.3000 2.8000 5.8400 29.5250
0.3000 0.3000 3.7000 27.8015
0.3000 0.3000 3.7000 27.8757
0.3000 0.3000 3.7000 27.5575
0.3000 0.3000 3.7000 27.2167
0.3000 0.3000 3.7000 26.5209
0.3000 0.3000 3.7000 24.6958
0.3000 0.3000 3.7000 24.0689
0.3000 0.3000 3.7000 23.1258
Marana Study Session 01/14/2020 Page 183 of 259
Taxpayer Full Cash Value Rank
Percentage
of Total
Taxable
Assessed
Value
Full Cash
Value Rank
Percentage
of Total
Taxable
Assessed
Value
UNISOURCE ENERGY CORPORATION 12,160 1 26.6%- --
HSL COTTONWOOD RC HOTEL LLC 6,386 2 14.0%- --
TUCSON PREMIUM OUTLETS LLC 6,110 3 13.4%- --
FRYS FOOD STORE OF ARIZONA 3,890 4 8.5%- --
TRICO ELECTRIC COOP INC 3,156 5 6.9%- --
AZPAV WEST LLC 3,015 6 6.6%- --
WALMART STORES INCORPORATED 2,887 7 6.3%- --
FARM CREDIT LEASING 2,841 8 6.2%- --
KREBS FLSMIDTH INC 2,683 9 5.9%- --
UNION PACIFIC RAILROAD 2,509 10 5.5%- --
FIDELITY NATIONAL TITLE TR 30212 1,588 1 51.3%
SMITH FOOD & DRUG CENTERS 324 2 10.5%
FIDELITY NATIONAL TITLE TR 60338 210 3 6.8%
WEINGARTEN NEWQUIST LLC 202 4 6.5%
MIRAMONTE GLADDEN FARMS LLC 190 5 6.1%
FREEDBER BARRY & FREEDBRG BELLA 180 6 5.8%
FIDELITY NATIONAL TITLE TR 06271 133 7 4.3%
GLADDEN 25 LLC 123 8 4.0%
BANK OF AMERICA 83 9 2.7%
TITLE SECURITY AGENCY TR 891 61 10 2.0%
Totals 45,637$ 3,094$
Notes:
1) The Town of Marana does not impose a property tax.
Source: Pima County Assessor's Office - IS Dept
(Information System's Coordinator)
20102019
TOWN OF MARANA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(Amounts expressed in thousands)
Marana Study Session 01/14/2020 Page 184 of 259
TOWN OF MARANA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Collected within the Fiscal Year
of the Levy Total Collections to Date
Fiscal Year
Ended June
30
Total Tax Levy for
Fiscal Year Amount
Percentage
of Levy Amount
Percentage
of Levy
2019 834$ 830 99.52%831 99.64%
2018 571 568 99.47%572 99.65%
2017 521 515 98.85%521 99.81%
2016 488 474 99.18%488 99.80%
2015 448 448 99.09%448 99.55%
2014 422 415 99.04%422 99.28%
2013 470 462 98.65%488 98.65%
2012 514 492 99.39%468 99.80%
2011 602 562 97.57%502 97.57%
2010 623 623 100.00%577 100.00%
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
Marana Study Session 01/14/2020 Page 185 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
242-C1 215-01-003P Tangerine/I-10, LLC $681,092.81 $603,726.15 $12,587.00 1,015,384 Commercial
242-A 215-01-003R Tangerine/I-10, LLC 546,102.01 484,069.22 8,440.00 814,136 Commercial
242-B3-1 215-01-003S INTERNATIONAL CENTER
TUCSON LLC &
SECUNDUS TUCSON LLC
52,594.14 46,619.87 3,667,800.00 78,565 Commercial
242-B1/2 215-01-003T Tangerine/I-10, LLC 159,827.16 141,672.08 2,954.00 238,273 Commercial
242-B4/5 215-01-003U Tangerine/I-10, LLC 371,957.14 329,705.80 6,874.00 554,519 Commercial
242-B1/2/4/5 215-01-003V Tangerine/I-10, LLC 744,205.60 659,669.83 13,759.00 1,109,473 Commercial
242-B3-2 215-01-003W INTERNATIONAL CENTER
TUCSON LLC &
SECUNDUS TUCSON LLC
49,379.55 43,770.43 296,239.00 73,738 Commercial
242-D1 216-12-0250 Tangerine/I-10, LLC 49,671.79 44,029.47 29,546.00 73,864 Commercial
242-D2 216-12-0260 Tangerine/I-10, LLC $258,002.71 $228,695.68 $153,923.00 384,808 Commercial
242-D3 216-12-0270 Tangerine/I-10, LLC 365,236.64 323,748.70 217,717.00 544,292 Commercial
242-D4 216-12-0300 Tangerine/I-10, LLC 17,531.38 15,539.96 10,409.00 26,023 Commercial
242-C2 216-12-0330 Tangerine/I-10, LLC 118,628.37 105,153.14 10,000.00 176,854 Commercial
237 217-53-040A TOWN OF MARANA 71,959.10 63,785.13 302,000.00 1,019,740 Park
238/239-1 217-53-8080 WALGREEN CO. / Real
Estate Property Tax
28,235.83 25,028.47 405,470.00 79,504 Commercial
238/239-2 217-53-8090 GLADDEN 25 LLC / The
Aspen Group
20,407.15 18,089.06 100,585.00 57,477 Residential
and
Commercial
238/239-3 217-53-8100 GLADDEN 25 LLC / The
Aspen Group
21,784.14 19,309.64 107,366.00 61,352 Residential
and
Commercial
238/239-4 217-53-8110 GLADDEN 25 LLC / The
Aspen Group
20,979.61 18,596.50 103,336.00 59,049 Residential
and
Commercial
238/239-5 217-53-8120 GLADDEN 25 LLC / The
Aspen Group
18,999.25 16,841.09 93,630.00 53,503 Residential
and
Commercial
238/239-6 217-53-8130 GLADDEN 25 LLC / The
Aspen Group
20,144.14 17,855.93 99,255.00 56,717 Residential
and
Commercial
238/239-7 217-53-8140 GLADDEN 25 LLC / The
Aspen Group
15,456.22 13,700.52 76,167.00 43,524 Residential
and
Commercial
238/239-8 217-53-8150 GLADDEN 25 LLC / The
Aspen Group
35,461.12 31,433.02 174,757.00 99,861 Residential
and
Commercial
238/239-9 217-53-8160 GLADDEN 25 LLC / The
Aspen Group
32,830.94 29,101.61 161,761.00 92,435 Residential
and
Commercial
238/239-10 217-53-8170 GLADDEN 25 LLC / The
Aspen Group
30,974.33 27,455.90 152,591.00 87,195 Residential
and
Commercial
230-1 217-54-0110 Gladden Phase II, LLC /
Attn: Jennifer Barlow
306,591.11 271,764.83 13,295.00 1,072,447 Residential
and
Commercial
230-2 217-54-0120 Gladden Phase II, LLC /
Attn: Jennifer Barlow
389,043.77 344,851.53 17,744.00 1,431,382 Residential
and
Commercial
230-3 217-54-0130 Gladden Phase II, LLC /
Attn: Jennifer Barlow
330,322.98 292,800.95 15,066.00 1,215,324 Residential
and
Commercial
230-4 217-54-0140 Northwest Medical Center
/ Attn: Chief Financial
684,379.91 606,639.86 31,212.00 2,517,768 Hospital
230-5 217-54-0150 Gladden Phase II, LLC /
Attn: Jennifer Barlow
459,886.66 407,647.24 137,732.00 1,930,109 Residential
and
Commercial
230-6 217-54-0160 Gladden Phase II, LLC /
Attn: Jennifer Barlow
375,574.12 332,911.92 11,961.00 964,854 Residential
and
Commercial
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
Marana Study Session 01/14/2020 Page 186 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
230-7 217-54-0180 Gladden Phase II, LLC /
Attn: Jennifer Barlow
429,227.55 380,470.75 14,742.00 1,189,188 Residential
and
Commercial
230-8 217-54-0190 Gladden Phase II, LLC /
Attn: Jennifer Barlow
358,566.94 317,836.62 16,351.00 1,318,997 Residential
and
Commercial
230-10 217-54-0210 Gladden Phase II, LLC /
Attn: Jennifer Barlow
413,898.00 366,882.52 13,970.00 1,126,897 Residential
and
Commercial
230-11 217-54-0220 Gladden Phase II, LLC /
Attn: Jennifer Barlow
708,991.95 628,456.17 21,902.00 1,766,794 Residential
and
Commercial
230-12 217-54-0230 Gladden Phase II, LLC /
Attn: Jennifer Barlow
395,882.07 350,913.05 18,052.00 1,456,211 Residential
and
Commercial
230-16 217-54-0270 Gladden Phase II, LLC /
Attn: Jennifer Barlow
536,534.45 475,588.45 17,809.00 1,436,609 Residential
and
Commercial
442 217-54-3440 Gladden Phase II, LLC /
Attn: Jennifer Barlow
342,327.13 303,441.52 578,000.00 1,252,529 Residential
and
Commercial
443 217-54-028B Northwest Fire District /
Attn: Phyllis Shumacher
32,681.52 28,969.16 721,410.00 119,680 Residential
and
Commercial
319 217-54-0290 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
320 217-54-0300 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
321 217-54-0310 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
322 217-54-0320 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
323 217-54-0330 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
324 217-54-0340 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
325 217-54-0350 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
326 217-54-0360 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
327 217-54-0370 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
328 217-54-0380 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
329 217-54-0390 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
330 217-54-0400 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
331 217-54-0410 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
332 217-54-0420 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
333 217-54-0430 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
334 217-54-0440 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
335 217-54-0450 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
336 217-54-0460 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
337 217-54-0470 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
338 217-54-0480 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
Marana Study Session 01/14/2020 Page 187 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
339 217-54-0490 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
340 217-54-0500 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
341 217-54-0510 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
342 217-54-0520 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
345 217-54-0550 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
346 217-54-0560 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
347 217-54-0570 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
349 217-54-0590 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
350 217-54-0600 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
351 217-54-0610 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
352 217-54-0620 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
357 217-54-0670 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
358 217-54-0680 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
360 217-54-0700 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
362 217-54-0720 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
363 217-54-0730 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
364 217-54-0740 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
365 217-54-0750 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
366 217-54-0760 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
367 217-54-0770 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
368 217-54-0780 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
369 217-54-0790 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
370 217-54-0800 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
371 217-54-0810 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
372 217-54-0820 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
373 217-54-0830 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
374 217-54-0840 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
Marana Study Session 01/14/2020 Page 188 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
375 217-54-0850 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
376 217-54-0860 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
377 217-54-0870 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
378 217-54-0880 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
379 217-54-0890 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
380 217-54-0900 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
381 217-54-0910 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
382 217-54-0920 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
383 217-54-0930 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
384 217-54-0940 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
385 217-54-0950 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
386 217-54-0960 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
387 217-54-0970 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
388 217-54-0980 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
389 217-54-0990 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
390 217-54-1000 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
391 217-54-1010 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
393 217-54-1030 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
394 217-54-1040 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
395 217-54-1050 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
396 217-54-1060 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
397 217-54-1070 Lennar Homes / Attn:
Kristin Jenkins
3,770.08 3,341.83 9,001.00 - Residential
398 217-54-1080 Lennar Homes / Attn:
Kristin Jenkins
3,770.08 3,341.83 9,001.00 - Residential
399 217-54-1090 Lennar Homes / Attn:
Kristin Jenkins
3,770.08 3,341.83 9,001.00 - Residential
400 217-54-1100 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
401 217-54-1110 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
402 217-54-1120 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
Marana Study Session 01/14/2020 Page 189 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
403 217-54-1130 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
404 217-54-1140 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
405 217-54-1150 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
406 217-54-1160 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
407 217-54-1170 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
408 217-54-1180 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
409 217-54-1190 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
410 217-54-1200 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
411 217-54-1210 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
412 217-54-1220 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
413 217-54-1230 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
414 217-54-1240 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
415 217-54-1250 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
416 217-54-1260 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
417 217-54-1270 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
420 217-54-1300 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
422 217-54-1320 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
423 217-54-1330 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
425 217-54-1350 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
426 217-54-1360 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
427 217-54-2190 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
Marana Study Session 01/14/2020 Page 190 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
428 217-54-2200 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
429 217-54-2210 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
430 217-54-2220 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
431 217-54-2230 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
432 217-54-2240 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
433 217-54-2250 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
434 217-54-2260 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
435 217-54-2270 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
436 217-54-2280 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
437 217-54-2290 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
438 217-54-2300 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
439 217-54-2310 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
440 217-54-2320 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
441 217-54-2330 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
230-9 217-54-0200 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
318,088.28 281,956.01 16,492.00 1,330,522 Residential
and
Commercial
231 217-55-012A WESTCOR MARANA LLC /
Barbara Hailtern
1,586,588.33 1,406,364.66 32,195.00 2,597,047 Commercial
162 217-56-3070 KB Home Tucson Inc. /
Attn: John W. Ward
3,832.39 3,397.06 185,158.00 - Residential
163 217-56-3080 KB Home Tucson Inc. /
Attn: John W. Ward
3,832.39 3,397.06 208,371.00 - Residential
164 217-56-3090 KB Home Tucson Inc. /
Attn: John W. Ward
3,832.39 3,397.06 175,625.00 - Residential
165 217-56-3100 KB Home Tucson Inc. /
Attn: John W. Ward
3,832.39 3,397.06 40,000.00 - Residential
166 217-56-3110 KB Home Tucson Inc. /
Attn: John W. Ward
3,832.39 3,397.06 40,000.00 - Residential
167 217-56-3120 KB Home Tucson Inc. /
Attn: John W. Ward
3,832.39 3,397.06 40,000.00 - Residential
236-7 217-56-7390 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-12 217-56-7440 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
Marana Study Session 01/14/2020 Page 191 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
236-15 217-56-7470 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-18 217-56-7500 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-19 217-56-7510 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-22 217-56-7540 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-23 217-56-7550 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-24 217-56-7560 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-25 217-56-7570 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-26 217-56-7580 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-29 217-56-7610 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-30 217-56-7620 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-31 217-56-7630 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-34 217-56-7660 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-35 217-56-7670 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-48 217-56-7800 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-54 217-56-7860 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-56 217-56-7880 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-57 217-56-7890 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-8 217-56-7400 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-17 217-56-7490 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-65 217-56-7970 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.94 2,497.84 18,628.00 - Residential
236-20 217-56-7520 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-33 217-56-7650 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-51 217-56-7830 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
218 217-57-3660 NP Investments LLC /
Dave Newquist
18,332.46 16,250.04 265,674.00 52,093 Gladden
Farms
Commercial
Center -
Bank219217-57-3670 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
12,423.76 11,012.52 67,076.00 35,303 Gladden
Farms
Commercial
Center - Fast
Food
Restaurant220217-57-3680 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
14,501.49 12,854.24 78,293.00 41,207 Gladden
Farms
Commercial
Center - Fast
Food
Restaurant
Marana Study Session 01/14/2020 Page 192 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
221 217-57-3690 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
11,477.10 10,173.39 61,965.00 32,613 Gladden
Farms
Commercial
Center222217-57-3700 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
27,082.56 24,006.20 146,218.00 76,957 Gladden
Farms
Commercial
Center224217-57-3720 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
41,637.17 36,907.52 189,304.00 118,315 Gladden
Farms
Commercial
Center -
Grocery225217-57-3730 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
9,539.79 8,456.15 43,373.00 27,108 Gladden
Farms
Commercial
Center226217-57-3740 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
18,357.45 16,272.19 99,112.00 52,164 Gladden
Farms
Commercial
Center227217-57-3750 Weingarten Realty / Attn:
Deborah Brennand,
Property Manager
12,894.96 11,430.20 69,620.00 36,642 Gladden
Farms
Commercial
Center236-53 217-56-7850 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-55 217-56-7870 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-60 217-56-7920 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.94 2,497.84 18,628.00 - Residential
235-68 217-56-6500 KB Home Tucson Inc. /
Attn: John W. Ward
4,325.13 3,833.83 19,255.00 - Residential
236-5 217-56-7370 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-41 217-56-7730 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-9 217-56-7410 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-11 217-56-7430 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-13 217-56-7450 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-14 217-56-7460 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-16 217-56-7480 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-21 217-56-7530 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-32 217-56-7640 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
236-52 217-56-7840 KB Home Tucson Inc. /
Attn: John W. Ward
2,817.93 2,497.84 18,628.00 - Residential
343 217-54-0530 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
344 217-54-0540 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
359 217-54-0690 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
361 217-54-0710 Lennar Homes / Attn:
Kristin Jenkins
3,770.07 3,341.82 9,001.00 - Residential
228/229-49 217-57-4240 Lennar Homes / Attn:
Kristin Jenkins
3,832.39 3,397.06 18,012.00 - Residential
Marana Study Session 01/14/2020 Page 193 of 259
District
Assessment
Number
Tax
Assessor's
Parcel
Number Owner
Original
Assessment
Amount (1)
Remaining
Assessment
Amount (2)
2019
Full Cash
Value (3)
Non-
Residential
Square
Footage (4)
Expected
Future Use
TOWN OF MARANA
TANGERINE ROAD FARMS ROAD IMPROVEMENT DISTRICT
ALL ACTIVE ASSESSMENTS AS OF 6/30/2019
228/229-51 217-57-4260 Lennar Homes / Attn:
Kristin Jenkins
3,832.39 3,397.06 18,012.00 - Residential
228/229-58 217-57-4330 Lennar Homes / Attn:
Kristin Jenkins
3,832.39 3,397.06 18,012.00 - Residential
348 217-54-0580 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
355 217-54-0650 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
356 217-54-0660 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
392 217-54-1020 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.07 3,341.82 9,001.00 - Residential
419 217-54-1290 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
421 217-54-1310 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
424 217-54-1340 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
418 217-54-1280 Richmond American
Homes / M.D.C. Holdings
Inc. Attn: Zoey Manguso
3,770.08 3,341.83 9,001.00 - Residential
230-14 217-54-0250 (5)Gladden Phase II, LLC /
Attn: Jennifer Barlow
163,672.40 145,080.53 See Footnote (5)See Footnote
(5)
Residential
and
Commercial
230-15 217-54-0260 (5)Gladden Phase II, LLC /
Attn: Jennifer Barlow
268,326.10 237,846.41 See Footnote (5)See Footnote
(5)
Residential
and
Commercial
Residential Totals:169 Active Assessments $602,076.93 $533,685.97 $2,559,430.00 -
Non-Residential Totals:50 Active Assessments $11,998,291.14 $10,635,381.83 $8,905,734.00 29,999,045
Totals:219 Active Assessments $12,600,368.07 $11,169,067.80 $11,465,164.00 29,999,045 (4)
(1) Includes capitalized interest on the Bonds as sold.
(2) Amount remaining after billing for the 6/1/2019 assessment installment.
(3) As current Full Cash Value data is not available from Pima County for certain parcels that have changed during Fiscal Year 2018/19, prior year Full Ca
(4) The Pima County Assessor does not provide the square footage for most residential properties.
(5) During Fiscal Year 2018/19, parcels 217-54-0250 and 217-54-0260 each subdivided into two properties and subesquently, one of the newly created p
As such, Original and Remaining Assessment Amounts on each of these parcels reflect the amount outstanding on the newly created parcel that wa
Full Cash Value and Non-Residential Square Footage information is unavailable from Pima County associated with the newly created parcels that are
Marana Study Session 01/14/2020 Page 194 of 259
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Marana Study Session 01/14/2020 Page 195 of 259
Industry Group FY 2010 %FY 2011 %FY 2012 %
Construction 4,448,469$ 20.54%4,870,797$ 21.23%5,782,644$ 23.57%
Manufacturing 138,817 0.64%123,524 0.54%128,089 0.52%
Transportation, Communications,
& Utilities 2,768,198 12.78%2,927,271 12.76%2,985,979 12.17%
Wholesale Trade 184,203 0.85%194,392 0.85%233,850 0.95%
Retail Trade 8,673,055 40.04%8,667,896 37.77%8,804,206 35.88%
Restaurant & Bars 1,555,032 7.18%1,658,180 7.23%1,789,232 7.29%
Fire, Insurance & Real Estate 1,050,046 4.85%1,253,481 5.46%1,350,977 5.51%
Hotels & Other Lodging 1,378,271 6.36%1,914,004 8.34%1,991,767 8.12%
Services 1,057,433 4.88%982,631 4.28%1,026,443 4.18%
All Others 408,581 1.89%355,642 1.55%445,774 1.81%
21,662,105$ 100.00%22,947,818$ 100.00%24,538,961$ 100.00%
Industry Group 2015 %2016*%2017 %
Construction 6,838,195$ 24.37%6,883,116$ 19.42%7,557,292$ 20.15%
Manufacturing 100,329 0.36%- 0.00%- 0.00%
Transportation, Communications,
& Utilities 3,318,976 11.83%3,919,633 11.06%3,809,315 10.16%
Wholesale Trade 305,012 1.09%- 0.00%- 0.00%
Retail Trade 10,133,523 36.12%16,305,878 46.01%17,120,561 45.65%
Restaurant & Bars 2,038,788 7.27%3,076,737 8.68%3,295,734 8.79%
Fire, Insurance & Real Estate 1,240,196 4.42%1,339,496 3.78%1,540,358 4.11%
Hotels & Other Lodging 2,481,304 8.84%2,292,705 6.47%2,558,312 6.82%
Services 1,046,669 3.73%- 0.00%- 0.00%
All Others 555,522 1.98%1,624,023 4.58%1,618,648 4.32%
28,058,514$ 100.00%35,441,588$ 100.00%37,500,220$ 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
TOWN OF MARANA
SALES TAX BY INDUSTRY
LAST TEN FISCAL YEARS
Marana Study Session 01/14/2020 Page 196 of 259
FY 2013 %FY 2014 %
5,260,345$ 21.33%6,411,509$ 24.45%
127,214 0.52%97,014 0.37%
3,038,071 12.32%3,182,854 12.14%
296,077 1.20%213,657 0.81%
9,380,544 38.03%9,593,163 36.58%
1,819,588 7.38%1,865,602 7.11%
1,234,426 5.00%1,256,418 4.79%
2,140,493 8.68%2,064,986 7.87%
1,003,377 4.07%1,031,325 3.93%
363,807 1.47%509,351 1.94%
24,663,942$ 100.00%26,225,881$ 100.00%
2018 %2019 %
9,825,265$ 23.57%10,817,479$ 25.95%
- 0.00%- 0.00%
4,234,220 10.16%3,987,389 9.57%
- 0.00%- 0.00%
17,757,284 42.59%16,403,992 39.36%
3,616,110 8.67%3,514,494 8.43%
1,661,010 3.98%1,648,738 3.96%
2,827,338 6.78%2,913,545 6.99%
- 0.00%- 0.00%
1,768,256 4.24%2,394,706 5.75%
41,689,483$ 100.00%41,680,343$ 100.00%
Marana Study Session 01/14/2020 Page 197 of 259
Industry Classification 2009/10 2010/11 2011/12 2012/13
Town Sales Tax 21,662,077$ 22,947,818$ 24,538,961$ 24,768,104$
State-shared Sales Taxes 1,961,225 2,099,083 2,731,863 2,861,622
State-shared Income Taxes 3,450,478 2,601,218 2,950,734 3,571,191
Licenses and permits 2,150,360 2,502,494 2,720,872 4,323,155
Fines and forfeitures and penalties 641,484 537,680 558,393 661,341
TOTAL 29,865,624$ 30,688,293$ 33,500,823$ 36,185,413$
Industry Classification 2014/2015 2015/2016 2016/2017 2017/2018
Town Sales Tax 28,058,823$ 35,441,585$ 37,500,219$ 41,689,483$
State-shared Sales Taxes 3,195,042 3,344,679 3,798,503 4,186,856
State-shared Income Taxes 4,232,245 4,209,300 5,054,592 5,384,669
Licenses and permits 4,813,378 4,468,910 4,848,237 5,573,620
Fines and forfeitures and penalties 664,955 579,369 574,884 612,638
TOTAL 40,964,443$ 48,043,843$ 51,776,435$ 57,447,266$
Source: Statement of Revenues
TOWN OF MARANA
EXCISE TAX COLLECTIONS
LAST TEN FISCAL YEARS
Marana Study Session 01/14/2020 Page 198 of 259
2013/14
26,225,881$
3,043,102
3,896,487
3,932,108
635,869
37,733,447$
Budgeted
2018/2019 2019/2020
41,680,343$ 37,207,684$
4,524,009 4,707,099
5,424,305 5,928,567
5,774,930 4,914,012
527,447 402,000
57,931,034$ 53,159,362$
Marana Study Session 01/14/2020 Page 199 of 259
TOWN OF MARANA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Business-Type Activities
Fiscal
Year
Revenue
Bonds(1)
General
Obligation
Bonds(2)
Special
Assessment
Bonds(3)
Capital
Leases
Revenue
Bonds
Loans
Payable
Total
Primary
Government
Percentage
of Personal
Income (4)Per Capita
2019 57,301$ 12,242$ 12,126$ -$ 20,891$ 3,504$ 106,064 271.5%2,256
2018 60,842 8,551 14,200 - 21,090 3,202 107,885 260.3%2,271
2017 63,254 8,794 14,245 - 21,248 3,421 110,962 267.0%2,400
2016 66,715 7,835 15,927 - 1,214 3,634 95,325 244.0%2,307
2015 69,299 8,085 17,246 - 1,343 3,841 99,814 263.2%2,406
2014 71,659 8,325 18,488 - 1,343 4,042 103,857 282.1%2,628
2013 81,720 8,550 19,926 - - 4,265 114,461 320.2%3,022
2012 60,699 8,765 21,288 - - 4,480 95,232 252.0%2,645
2011 65,384 8,965 22,492 - - 4,586 101,427 279.1%2,931
2010 67,344 8,155 23,828 33 - 1,562 100,922 288.8%2,944
Notes:
(1) Presented net of original issuance discounts and premiums
(2) Bonds issued for Gladden Farms Facilities District and Saguaro Springs Community Facilities District , component
units 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
Governmental Activities
Marana Study Session 01/14/2020 Page 200 of 259
Fiscal Year
General
Obligation
Bonds (1)
Less: Amounts
Available in
Debt Service
Fund (2)
Net Bonded
Debt
Percentage of
Estimated Actual
Taxable Value of
property (3)
Net
Bonded
Debt Per
Capita
2019 12,242$ 584$ 11,658$ 0.22%24.8%
2018 8,551 393 8,158 0.17%18.2%
2017 8,794 387 8,407 0.18%19.3%
2016 7,835 392 7,443 0.17%18.0%
2015 8,085 254 7,831 0.19%19.4%
2014 8,325 247 8,078 0.21%21.1%
2013 8,550 244 8,306 0.23%22.6%
2012 8,765 240 8,525 0.23%23.8%
2011 8,765 389 8,376 0.21%25.2%
2010 8,965 473 8,492 0.26%28.3%
Notes:
(1) Represents face value of general obligation debt outstanding plus deferred bond premiums
(2) Fund balance of GO Bond Debt Service Fund per the fund financial statements
(3) 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
TOWN OF MARANA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(Amounts expressed in thousands, except per capita amount)
Marana Study Session 01/14/2020 Page 201 of 259
Governmental Unit Debt
Outstanding
Estimated
Percentage
Applicable *
Estimated Share
of Overlapping Debt
State of Arizona None N/A None
Pima County 236,572$ 6.30%14,904$
Pima County Community College District None N/A -
Pima County Flood Control District None N/A -
Northwest Fire District 32,669 46.80%15,289
Flowing Wells Unified School District No. 8 24,690 100.00%24,690
Marana Unified School District No. 6 147,440 63.07%92,990
Total overlapping debt 147,874
Gladden Farms Community Facilities District 7,540 100.00%7,540
Saguaro Springs Community Facilities District 3,845 100.00%3,845
Tangerine Farms Road Improvement District 12,126 100.00%12,126
Town of Marana 52,651 100.00%52,651
Total direct debt 76,162$
Total direct and overlapping debt 224,036$
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
TOWN OF MARANA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2019
(Amounts expressed in thousands)
Marana Study Session 01/14/2020 Page 202 of 259
Legal Debt Margin Calculation for Fiscal Year 2019
Limited Assessed Value 579,159,041$
Debt Limit:-
6% of assessed value 34,749,542
20% of assessed value 115,831,808
Total debt limit:150,581,351
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 150,581,351$
2010 2011 2012 2013 2014
60,524,235$ 27,274,051$ 25,992,985$ 24,745,839$ 28,630,929$
201,747,448 90,913,503 86,643,283 82,486,130 95,436,430
- - - - -
262,271,683$ 118,187,553$ 112,636,268$ 107,231,969$ 124,067,359$
0%0%0%0%0%
2015 2016 2017 2018 2019
29,446,070$ 31,218,157$ 32,138,944$ 34,553,958$ 34,749,542$
98,153,568 104,060,525 107,129,981 115,179,860 115,831,808.20
-
- - - - -
127,599,639$ 135,278,682$ 139,268,925$ 149,733,818$ 150,581,351$
0%0%0%0%0%
Notes:
* The Gladden Farms Community Facilities District and Saguaro Springs Community Facilities District, legally separate
entities, are special taxing districts 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
Total net debt
applicable to the limit
as a percentage of
debt limit
Total net debt
applicable to the limit
as a percentage of
debt limit
TOWN OF MARANA
LEGAL DEBT MARGIN INFORMATION
AS OF JUNE 30, 2019
Fiscal Year
Fiscal Year
Debt limit equal to
6% of assessed
Debt limit equal to
20% of assessed
Total net debt
applicable to limit
Legal debt margin
Debt limit equal to
6% of assessed
Debt limit equal to
20% of assessed
Total net debt
applicable to limit
Legal debt margin
Marana Study Session 01/14/2020 Page 203 of 259
Fiscal Year
Property Tax
Collections Coverage
Principal Interest
2019 479$ 205$ 340$ 87.9%
2018 492 210 271 102.3%
2017 452 265 295 80.7%
2016 427 250 445 61.4%
2015 393 240 458 56.3%
2014 373 225 470 53.7%
2013 397 215 481 57.0%
2012 449 200 490 65.1%
2011 515 190 477 77.2%
2010 551 180 455 86.8%
Fiscal Year
Property Tax
Collections Coverage
Principal Interest
2019 254$ -$ 73$ 347.9%
2018 N/A - - N/A
2017 N/A - - N/A
2016 N/A - - N/A
2015 N/A - - N/A
2014 N/A - - N/A
2013 N/A - - N/A
2012 N/A - - N/A
2011 N/A - - N/A
2010 N/A - - N/A
Saguaro Springs Community Facilities District General
Obligation Bonds **
Debt Service
Debt Service
TOWN OF MARANA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Gladden Farms Community Facilities District General
Obligation Bonds*
Marana Study Session 01/14/2020 Page 204 of 259
TOWN OF MARANA
PLEDGED-REVENUE COVERAGE
LAST TEN FISCAL YEARS
(Amounts expressed in thousands)
Tangerine Road Farms Improvement District Special
Assessment Bonds ***
Fiscal Year
Special
Assessment
Collections Debt Service Coverage
Principal Interest
2019 2,869$ 2,074$ 357$ 118.0%
2018 989 45 254 330.8%
2017 2,351 1,328 732 114.1%
2016 2,141 1,319 792 101.4%
2015 2,065 1,242 849 98.8%
2014 2,210 1,438 913 94.0%
2013 2,337 1,362 976 100.0%
2012 2,302 1,204 1,035 102.8%
2011 2,239 1,336 1,096 92.1%
2010 2,352 995 1,142 110.1%
Notes:
* Bonds issued for Gladden Farms Facilities District, a component unit of the Town.
** Bonds issued for Sagauro Springs Community Faciltites District, a component unit of the Town.
Principal Debt Payoff begins FY 2020.
***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 and Notes to the Financial Statements
Marana Study Session 01/14/2020 Page 205 of 259
Fiscal Year Population
Personal
Income*
Per Capita
Personal
Income Median Age
School
Enrollment
Unemployment
Rate
2019 47,007 N/A 33,488$ 37.6 12,782 2.8%
2018 44,792 N/A 33,111 37.9 12,470 2.8%
2017 43,474 N/A 32,646 48.1 12,050 4.3%
2016 41,315 N/A 37,107 29.7 12,350 4.7%
2015 40,324 N/A 34,026 39.6 12,326 5.9%
2014 38,290 N/A 33,196 39.4 12,476 6.9%
2013 36,756 N/A 29,626 37.7 12,361 6.1%
2012 35,858 N/A 31,085 37.6 12,576 9.7%
2011 35,124 N/A N/A 37.4 12,314 7.9%
2010 34,961 35,172,000 N/A 37.4 12,426 8.7%
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.
TOWN OF MARANA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Marana Study Session 01/14/2020 Page 206 of 259
Employees
Percentage of
Total City
Employment Employees
Percentage of
Total City
Employment
Employer
Marana Unified School District 1,600 7.2%1,800 24.5%
Ascent Aviation 525 2.4%- -
Marana Health Center 515 2.3%195 2.7%
Wal-Mart 440 2.0%450 -
Town of Marana 364 1.6%300 4.1%
FLSmith Krebs 301 1.4%230 -
The Ritz-Carlton Dove Mountain 300 1.4%- 0.0%
Northwest Fire District 252 1.1%- 0.0%
Coca-Cola 180 0.8%185 -
Cal Portland 160 0.7%- -
Army Reserve/National Guard 1,800 24.46%
Evergreen Air Center 335 24.46%
Sargeant Controls & Aerospace 255 3.5%
Fry's Food & Drug 240 3.3%
Arizona Portland Cement 190 2.6%
Source: ArizonaCommerce.com, Marana Chamber of Commerce
2019 2010
TOWN OF MARANA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
Marana Study Session 01/14/2020 Page 207 of 259
TOWN OF MARANA
PRINCIPAL RETAIL AND CONTRACTING SALES TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Sales Tax
Payments Rank
Percentage of
Total Sales
Tax Payments
Sales Tax
Payments Rank
Percentage of
Total Sales
Tax Payments
RETAIL
Taxpayer A 2,059,433$ 1 4.9%1,654,032$ 1 7.7%
Taxpayer B 1,374,401 2 3.3%1,103,917 2 5.2%
Taxpayer C 1,021,957 3 2.5%619,942 3 2.9%
Taxpayer D 778,236 4 1.9%477,058 5 2.2%
Taxpayer E 588,500 5 1.4%392,110 7 1.8%
Taxpayer F 516,426 6 1.2%525,308 4 2.5%
Taxpayer G 495,475 7 1.2%434,332 6 2.0%
Taxpayer H 327,585 8 0.8%0.0%
Taxpayer I 299,367 9 0.7%189,480 10 0.9%
Taxpayer J 242,578 10 0.6%229,252 8 1.1%
Taxpayer K 227,201 9 1.1%
7,703,958$ 18.5%5,852,630$ 27.4%
CONTRACTING
Taxpayer A 2,238,545$ 1 5.4%-$ 0.0%
Taxpayer B 1,274,513 2 3.1%154,177 7 0.7%
Taxpayer C 927,704 3 2.2%188,147 6 0.9%
Taxpayer D 590,078 4 1.4%0.0%
Taxpayer E 531,682 5 1.3%0.0%
Taxpayer F 435,274 6 1.0%0.0%
Taxpayer G 397,356 7 1.0%436,712 3 2.0%
Taxpayer H 384,337 8 0.9%243,810 5 1.1%
Taxpayer I 319,857 9 0.8%0.0%
Taxpayer J 319,801 10 0.8%0.0%
Taxpayer K 791,164 1 3.7%
Taxpayer L 570,852 2 2.7%
Taxpayer M 286,318 4 1.3%
Taxpayer N 125,003 8 0.6%
Taxpayer O 89,053 9 0.4%
Taxpayer P 79,662 10 0.4%
7,419,147$ 17.8%2,964,898$ 13.9%
Source: Town of Marana Finance Department, Arizona Department of Revenue
Fiscal Year 2019 Fiscal Year 2010
Marana Study Session 01/14/2020 Page 208 of 259
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function
General Government 62.8 72.5 62.5 62.5 62.5 67.5 70.9 72.9 73.3 73.3
Public Safety
Police
Officers 78.0 80.0 79.0 80.0 80.0 81.0 83.0 85.0 87.0 103.0
Civilians 28.0 28.8 28.5 26.0 26.0 28.0 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 31.0 32.0 32.0 36.0 36.0 35.0 35.0 34.0 36.0 39.0
Engineering - - - - - - - - - -
Maintenance - - - - - - - - - -
Culture and recreation 43.8 41.5 41.7 33.3 33.3 36.5 38.5 41.8 41.0 40.0
Community Development 3.0 4.0 3.0 - - - - - - -
Economic & Community Development 54.6 52.4 53.4 48.5 48.5 40.4 39.4 43.0 46.5 45.5
Water Utilities 15.4 18.1 20.1 19.1 19.1 22.0 23.0 23.0 24.0 25.2
Wastewater Utilities N/A N/A - 4.0 4.0 4.0 4.0 4.0 5.0 7.0
Municipal Airport - - - 1.0 1.0 1.0 3.0 3.0 3.0 3.0
Total 321.6 335.3 326.1 319.3 319.3 328.3 337.8 346.7 355.8 364.0
Source: Town of Marana; Annual Budget; Authorized position schedule.
TOWN OF MARANA
FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Marana Study Session 01/14/2020 Page 209 of 259
Month 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
January 38 17 22 60 39 42 39 54 82 39
February 25 28 31 52 61 51 58 73 65 41
March 46 38 46 125 42 57 59 76 58 60
April 48 14 41 64 47 55 54 52 60 87
May 20 35 53 46 55 87 37 85 78 69
June 23 22 49 61 59 67 50 63 80 97
July 44 32 70 74 41 59 36 73 79 82
August 28 31 46 60 50 35 47 75 67 60
September 18 22 29 44 29 52 37 40 57 64
October 22 30 56 46 71 62 57 62 61
November 12 22 35 27 88 22 51 75 74
December 19 46 48 43 30 33 58 45 59
Calendar Total 343 337 526 702 612 622 583 773 820 599
Fiscal Total 342 297 425 692 597 668 560 689 793 790
Source: Town of Marana Finance Department, Town of Marana Building Services
TOWN OF MARANA
SINGLE FAMILY RESIDENTIAL PERMITS
LAST TEN FISCAL YEARS
Marana Study Session 01/14/2020 Page 210 of 259
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Marana Study Session 01/14/2020 Page 211 of 259
Fiscal Year
2010 2011 2012 2013 2014 2015 2016
Public Safety
Police:
Stations 1 1 1 1 1 1 1
Substations 1 1 1 1 1 1 1
Police Vehicles 113 113 113 99 118 129 128
Highways and Streets
Street (miles)300 300 300 494 494 511 518
Culture and Recreation
Parks 7 7 7 8 8 8 9
Parks Acreage 84 84 84 139 139 139 157
Trails in Miles - Hiking 28 28 28 37 37 37 38
Trails in Miles - Paved 16 16 16 16 16 18 19
Splash Pads - - - - - - -
Swimming Pools 1 1 1 1 1 1 1
Tennis Courts 5 5 5 6 6 6 6
Senior/Community Center 1 1 1 1 1 1 1
Water Systems
Miles of Water Mains 70 70 70 128 132 135 138
Number of Meters 4,755 5,556 5,734 6,002 6,272 6,429 6,745
Wastewater*
Number of Manholes N/A N/A 841 863 863 891 909
Sewer Mains (miles)N/A N/A 46.4 47.5 47.5 48.33 49.2
N/A N/A 0.192 0.198 0.287 0.348 0.360
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.
Source: This information is provided from the Town's facility records.
Function
Avg Daily Sewage Treated
(MGD)
TOWN OF MARANA
CAPITAL ASSET STATISTICS BY FUNCTION
AS OF JUNE 30, 2019
Marana Study Session 01/14/2020 Page 212 of 259
2017 2018 2019
1 1 1
1 1 1
129 129 131
520 524 540
9 9 10
157 158 182
39 39 41
21 21 21
1 1 2
1 1 1
6 6 6
1 1 1
146 149 157
7,205 7,850 8,533
978 1066 1235
53.6 58.5 62.9
0.425 0.480 0.520
Marana Study Session 01/14/2020 Page 213 of 259
Marana Study Session 01/14/2020 Page 214 of 259
ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2019 Financial ReportsMarana Study Session 01/14/2020 Page 215 of 259
Page
Independent Accountants' Report 1
Annual Expenditure Limitation Report - Part I 3
Annual Expenditure Limitation Report - Part II 4
Annual Expenditure Limitation Report - Reconciliation 5
Notes to the Annual Expenditure Limitation Report 6
TOWN OF MARANA, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
FOR THE YEAR ENDED JUNE 30, 2019
Contents
Marana Study Session 01/14/2020 Page 216 of 259
INDEPENDENT ACCOUNTANTS’ REPORT
The Auditor General of the State of Arizona and
The Honorable Mayor and Town Council
of the Town of Marana, Arizona
We have examined the accompanying Annual Expenditure Limitation Report of Town of Marana,
Arizona for the year ended June 30, 2019. The Town’s management is responsible for presenting
this report in accordance with the uniform expenditure reporting system as described in Note 1. Our
responsibility is to express an opinion on this report based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether this report is presented in
accordance with the uniform expenditure reporting system in all material respects. An examination
involves performing procedures to obtain evidence about the amounts and disclosures in the report.
The nature, timing, and extent of the procedures selected depend on our judgment, including an
assessment of the risks of material misstatement of the report, whether due to fraud or error. We
believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for
our opinion.
In our opinion, the Annual Expenditure Limitation Report of Town of Marana, Arizona, referred to
above is presented in accordance with the uniform expenditure reporting system as described in
Note 1 in all material respects.
Tempe • Scottsdale • Casa Grande www.hhcpa.com
Tempe, Arizona
December 16, 2019
Marana Study Session 01/14/2020 Page 217 of 259
Marana Study Session 01/14/2020 Page 218 of 259
Description Governmental Funds Enterprise Funds Internal Service Funds TotalA. Amounts reported on the Reconciliation, Line D 77,454,258$ 14,624,522$ 4,427,741$ 96,506,521$ B. Less exclusions claimed:1.Debt proceeds3,845,000 528,026 - 4,373,026 2.Debt service requirements3.Dividends, interest, and gains on the sale or redemption of investmentsecurities- - - - 4.Trustee or custodian- - - - 5.Grants and aid from the federal government6.Grants, aid, contributions, or gifts from a private agency, organization, orindividual, except amounts received in lieu of taxes- - - - 7.Amounts received from the State of Arizona- - - - 8.Quasi-external interfund transactions9.Amounts accumulated for the purchase of land, and the purchase orconstruction of buildings or improvements10.Highway user revenues in excess of those received in fiscal year 1979-80- - - - 11.Contracts with other political subdivisions- - - - 12.Refunds, reimbursements, and other recoveries13.Voter-approved exclusions not identified above- - - - 14.Prior years carryforward15. Qualifying capital improvement expenditures repaid in accordance with A.R.S.§41-1279.07- - - - 16.Total exclusions claimed3,845,000 528,026 - 4,373,026 C. Amounts subject to the expenditure limitation73,609,258$ 14,096,496$ 4,427,741$ 92,133,495$ YEAR ENDED JUNE 30, 2019ANNUAL EXPENDITURE LIMITATION REPORT-PART IITOWN OF MARANA, ARIZONAMarana Study Session 01/14/2020Page 219 of 259
Description Governmental Funds Enterprise Funds Internal Service Funds TotalA. Total expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statements 77,561,708$ 12,849,009$ 4,427,741$ 94,838,458$ B. Deductions:1. Items not requiring use of working capital:Depreciation - 3,745,126 - 3,745,126 Loss on disposal of capital assets - 1,622,069 - 1,622,069 Bad debt expense - - - - Other postemployment benefits (OPEB) expense- - - - Claims incurred but not reported (IBNR)- - - - Landfill closure and postclosure care costs - - - - Pension Expense- 82,485 - 82,485 2. Expenditures of separate legal entities established under Arizona Revised Statutes - - - - 3. Required fees paid to the Arizona Department of Revenue107,450 - - 107,450 4. Present value of net minimum capital lease and installment purchase contract payments recorded - - - - as expenditures at inception of the agreements - - - - 5. Involuntary court judgments - - - - 6. Total subtractions 107,450 5,449,680 - 5,557,130 C. Additions: 1. Principal payments on long-term debt - 405,000 - 405,000 2. Acquisition of capital assets - 6,601,958 - 6,601,958 3. Claims previously recognized as IBNR- - - - 4. Landfill closure and postclosure care costs paid in the current year but reported as expenses in previous years - - - - 5. Pension Contributions- 218,235 - 218,235 6. Total additions - 7,225,193 - 7,225,193 D.Amounts reported on Part II, Line A77,454,258$ 14,624,522$ 4,427,741$ 96,506,521$ TOWN OF MARANA, ARIZONAANNUAL EXPENDITURE LIMITATION REPORT-RECONCILIATIONYEAR ENDED JUNE 30, 2019Marana Study Session 01/14/2020Page 220 of 259
TOWN OF MARANA, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
Year Ended June 30, 2019
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform
Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07, and
in accordance with the voter-approved alternative expenditure limitation adopted November 8,
2016, as authorized by the Arizona Constitution, Article IX, §20 (9).
In accordance with the UERS requirements, a note to the AELR is presented below for any
exclusion claimed on part II and each subtraction or addition in the Reconciliation that cannot be
traced directly to an amount reported in the fund financial statements. All references to financial
statement amounts in the following notes refer to the Statement of Revenues, Expenditures, and
Changes in Fund Balances for the Governmental Funds, Statement of Revenues, Expenses, and
Changes in Net Position for the Proprietary Funds, Statement of Cash Flows for the Proprietary
Funds, and the Employee Retirement Systems disclosure.
NOTE 2 RECONCILIATION DEDUCTIONS AND ADDITIONS
The subtraction of $82,485 for pension expense consists of the change in the net pension liability
recognized in the current year in the Enterprise Funds. The addition of $218,235 for pension
contributions paid in the current year consists of the required pension contributions made to the
Arizona State Retirement System from the Enterprise Funds.
The addition of $405,000 for principal payments on long-term debt in the Enterprise Funds consists
of $226,000 paid on loans payable and $179,000 paid on bonds payable, during the current fiscal
year. The addition for the acquisition of capital assets consists of $6,601,958 paid for various capital
assets in the Enterprise Funds.
The subtraction of $107,450 for fees required by law to be paid to Arizona state agencies consists
of payments to the Arizona Department of Revenue as required by Laws 2015, Chapter 323,
HB2617, which were recorded as general government expenditures.
Marana Study Session 01/14/2020 Page 221 of 259
SINGLE AUDIT REPORTING PACKAGE
Year Ended June 30, 2019 Financial ReportsMarana Study Session 01/14/2020 Page 222 of 259
TOWN OF MARANA, ARIZONA
SINGLE AUDIT REPORTING PACKAGE
YEAR ENDED June 30, 2019
CONTENTS Page
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 1
Independent Auditors’ Report on Compliance for Each Major Program
and on Internal Control Over Compliance Required by the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 7
Notes to the Schedule of Expenditures of Federal Awards 9
Schedule of Findings and Questioned Costs 11
Marana Study Session 01/14/2020 Page 223 of 259
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, 2019, 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 16, 2019.
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.
A deficiency 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.comMarana Study Session 01/14/2020 Page 224 of 259
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
under Government 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.
Tempe, Arizona
December 16, 2019
Marana Study Session 01/14/2020 Page 225 of 259
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED
BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Town Council
Town of Marana, Arizona
Report on Compliance for Each Major Federal Program
We have audited Town of Marana, Arizona’s compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of the Town of Marana, Arizona’s major federal programs for the year
ended June 30, 2019. The Town of Marana, Arizona’s major federal program is identified in the
summary of auditor’s results section of the accompanying schedule of findings and questioned
costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations and the terms and
conditions of its federal awards applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for the Town of Marana, Arizona’s
major federal program based on our audit of the types of compliance requirements referred to
above. We conducted our audit of compliance in accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained
in Government Auditing Standards, issued by the Comptroller General of the United States; and
the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types
of compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about
the Town of Marana, Arizona’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of the Town
of Marana, Arizona’s compliance.
Tempe • Scottsdale • Casa Grande www.hhcpa.comMarana Study Session 01/14/2020 Page 226 of 259
Opinion on Each Major Federal Program
In our opinion, the Town of Marana, Arizona, complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on its
major federal program for the year ended June 30, 2019.
Report on Internal Control Over Compliance
Management of the Town of Marana, Arizona, is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to
above. In planning and performing our audit of compliance, we considered the Town of Marana,
Arizona’s internal control over compliance with the types of requirements that could have a
direct and material effect on the major federal program to determine the auditing procedures
that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express
an opinion on the effectiveness of the Town of Marana, Arizona’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
Marana Study Session 01/14/2020 Page 227 of 259
Report on Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance
We have audited 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, as of and for the year ended June 30, 2019, and the related notes to the
financial statements, which collectively comprise the Town of Marana, Arizona’s basic financial
statements. We issued our report thereon dated December 16, 2019, which contained
unmodified opinions on those financial statements. Our audit was conducted for the purpose of
forming opinions on the financial statements that collectively comprise the basic financial
statements.
The accompanying schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by the Uniform Guidance and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the basic financial statements as a
whole.
Tempe, Arizona
December 16, 2019
Marana Study Session 01/14/2020 Page 228 of 259
CFDA Grantor's
Number Number Expenditures
U.S. Department of Housing and Urban Development
Passed through Pima County
Community Development Block Entitlement Grant Cluster
Community Development Block Grant 2017-2018 14.218 CT.CD.17*210 20,623$
Community Development Block Grant 2018-2019 14.218 CT.CD.19*253 54,333
Total Community Development Block Entitlement Grant Cluster 74,956
Total U.S. Department of Housing and Urban Development 74,956
U.S. Department of Justice
Direct Grant
Bulletproof Vests 16.607 JAG-06-135 9,746
Drug Enforcement Administration 16.001 Resolution 2018-076 MOU 11,210
Passed through ACJC to City of Tucson -
Counter Narcotics Alliance 16.738 DC-19-013 117,546
Total U.S. Department of Justice 138,502
Executive Office of the President, Office of National Drug Control Policy
Passed through Pima County -
High Intensity Drug Trafficking Program 95.001 HT-17-A007A 17,540
High Intensity Drug Trafficking Program 95.001 HT-18-2807 110,800
Total Executive Office of the President, Office of National Drug
Control Policy 128,340
U.S. Department of Transportation
Federal Aviation Administration
Direct Grant
FAA 22 Grant - Construction of Apron and Taxiway B Rehabilitation 20.106 3-04-0058-022-2018 3,253,705 *
Passed through Governor's Office of Highway Safety-
Highway Safety Cluster
Selective Traffic Enforcement (Step/Speed)20.616 2018-PTS-033 2,004
Selective Traffic Enforcement (Step/Speed)20.616 2019-PTS-025 12,516
DUI/Impaired Driving Enforcement 20.616 2018-II-003 13,896
DUI/Impaired Driving Enforcement 20.616 2019-II-003 30,000
Total Highway Safety Cluster 58,416
Passed through Arizona State Parks and Trails
Highway Planning and Construction Cluster
CAP Trails and Trailhead Project 20.219 471617 8,840
Total Highway Planning and Construction Cluster 8,840
Total U.S. Department of Transportation 67,256
U.S. Department of Homeland Security
Emergency Management Performance Grant 97.042 2018-EP-00012 33,893
Homeland Security Grant Program - Operation Stonegarden 97.067 170422-01 27,262
Homeland Security Grant Program - Operation Stonegarden 97.067 180422-01 151,055
AZ DEMA - 2018 National Homeland Security Conference 97.067 0424 2,148
AZ DEMA - 2019 National Homeland Security Conference 97.067 0368 2,573
97.067 0391 2,343
Total U.S. Department of Homeland Security 219,274
2018 International Association of Emergency Managers (IAEM)
Conference
Passed through Arizona Department of Emergency and Military
Affairs -
Pass-Through Grantor / Program Title
Federal Grantor /
TOWN OF MARANA, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 229 of 259
CFDA Grantor's
Number Number Expenditures
U.S. Department of Treasury
Direct Grant
Secret Service 21.004 MOU 1,346
U.S. Environmental Protection Agency
Passed through the Water Infrastructure Finance Authority of Arizona
Clean Water State Revolving Fund Cluster
Adonis Lift Station - Design and Construction 66.458 910176-19 212,645
Total Clean Water Sate Revolving Fund Cluster 212,645
Total Expenditures of Federal Awards 4,096,024$
* Denotes major program
Federal Grantor /
Pass-Through Grantor / Program Title
TOWN OF MARANA, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2019
Marana Study Session 01/14/2020 Page 230 of 259
TOWN OF MARANA, ARIZONA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2019
NOTE 1 BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant
activity of the Town of Marana under programs of the federal government for the year ended
June 30, 2019. The information in this schedule is presented in accordance with requirements of
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the
Schedule presents only a selected portion of the operations of the Town of Marana, it is not
intended to and does not present the financial position, changes in net position, or cash flows of
the Town of Marana.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform
Guidance and/or OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments, wherein certain types of expenditures are not allowable or are limited as
to reimbursement.
B) The Town of Marana has not elected to use the 10 percent de minimis indirect cost rate
as allowed under the Uniform Guidance.
Marana Study Session 01/14/2020 Page 231 of 259
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Marana Study Session 01/14/2020 Page 232 of 259
TOWN OF MARANA, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2019
SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? ___yes __X__no
Significant deficiency(ies) identified that are
not considered to be a material weakness(es)? __ _ yes __X_ none reported
Noncompliance material to financial statements noted? yes __X_ no
Federal Awards
Internal control over major programs:
Material weakness(es) identified? ____ yes __X_ no
Significant deficiency(ies) indentified that are
not considered to be a material weakness(es)? __ _ yes __X_ none reported
Type of auditors’ report issued on compliance for each
major program listed below Unmodified
Any audit findings disclosed that are required to be reported
in accordance with 2 CFR section 200.516(a)? ____ yes __X_ no
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
20.106 Airport Improvement Grant Program
Dollar threshold used to distinguish between Type A and
Type B programs:
$750,000
Auditee qualified as low-risk auditee? __ _ yes __X__ no
Marana Study Session 01/14/2020 Page 233 of 259
TOWN OF MARANA, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2019
SECTION II – FINDINGS RELATED TO FINANCIAL STATEMENTS REPORTED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
None noted.
SECTION III – FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS
None Noted
Marana Study Session 01/14/2020 Page 234 of 259
Fiscal Year 2018-2019
Audit Summary and
Final Results
Yiannis Kalaitzidis, CPA
Finance Director
January 14, 2020
Marana Study Session 01/14/2020 Page 235 of 259
AUDIT SUMMARY
Auditors’ Report on the Financial Statements
•Unmodified Opinion -Financial Statements are fairly
presented in accordance with Generally Accepted
Accounting Principles (GAAP).
•Compliance on Internal Controls over Financial Reporting
Other issues discussed
•Difficulties Encountered in Performing the Audit
•Corrected and Uncorrected Misstatements
•Disagreements with Management
Marana Study Session 01/14/2020 Page 236 of 259
AUDIT SUMMARY
•Annual Expenditure Limitation Report
•Town’s voter-approved alternative expenditure limitation for
2019 was $141.6 million. Actual expenditures under the
limitation were $49.5 million.
•No Single Audit
•Audit report required when federal expenditures exceed
$750,000
•F/Y 2019 federal expenditures were $4,096,024
Marana Study Session 01/14/2020 Page 237 of 259
FINAL RESULTS –GENERAL FUND
Budgeted Amounts
Original Final Actual
Percent of
Budget
Revenues $44,806,009 $44,806,009 $50,147,453 111.9%
Expenditures 49,816,341 49,816,341 39,674,172 79.6%
Excess (deficiency) of revenues over
expenditures (5,010,332)(5,010,332)10,473,281 -209.0%
Other financing sources (uses)(3,531,371)(3,531,371)(3,505,348)
Changes in fund balances (8,541,703)(8,541,703)6,967,933
Fund balances, beginning of year 29,587,923 29,587,923 29,587,923
Fund balances, end of year $21,046,220 $21,046,220 $36,555,856
Marana Study Session 01/14/2020 Page 238 of 259
FINAL RESULTS –HIGHWAY USER
REVENUE FUND
Budgeted Amounts
Original Final Actual
Percent of
Budget
Revenues $3,276,078 $3,276,078 $3,647,574 111.3%
Expenditures 3,901,049 3,901,049 2,486,699 63.7%
Excess (deficiency) of revenues over
expenditures (624,971)(624,971)1,160,875 -185.7%
Changes in fund balances (624,971)(624,971)1,160,875
Fund balances, beginning of year 1,856,009 1,856,009 1,856,009
Fund balances, end of year $1,231,038 $1,231,038 $3,016,884
Marana Study Session 01/14/2020 Page 239 of 259
FINAL RESULTS –BED TAX FUND
Budgeted Amounts
Original Final Actual
Percent of
Budget
Revenues $1,088,016 $1,088,016 $1,327,289 131.7%
Expenditures 1,088,016 1,088,016 831,818 90.4%
Excess (deficiency) of revenues over
expenditures --495,471
Changes in fund balances --495,471
Fund balances, beginning of year 1,420,128 1,420,128 924,657
Fund balances, end of year $1,420,128 $1,420,128 $1,420,128
Marana Study Session 01/14/2020 Page 240 of 259
FINAL RESULTS –½ CENT TAX FUND
Budgeted Amounts
Original Final Actual
Percent of
Budget
Revenues $2,952,570 $2,952,570 $2,966,923 100.5%
Expenditures 6,506,234 6,506,234 6,027,015 92.6%
Excess (deficiency) of revenues over
expenditures (3,553,664)(3,553,664)(3,060,092)86.1%
Changes in fund balances (3,553,664)(3,553,664)(3,060,092)
Fund balances, beginning of year 3,060,092 3,060,092 3,060,092
Fund balances, end of year ($493,572)($493,572)$ -
Marana Study Session 01/14/2020 Page 241 of 259
FINAL RESULTS –TRANSPORTATION FUND
Budgeted Amounts
Original Final Actual
Percent
of Budget
Revenues $5,906,742 $5,906,742 $7,496,222 143.8%
Expenditures 21,476,467 21,476,467 11,374,090 53.0%
Excess (deficiency) of revenues over
expenditures (15,569,725)(15,569,725)(2,877,868) 18.5%
Other financing sources (uses)(577,580)(577,580)(762,783)
Changes in fund balances (16,147,305)(16,147,305)(3,640,651)
Fund balances, beginning of year 17,024,540 17,024,540 17,024,540
Fund balances, end of year $877,235 $877,235 $13,383,889
Marana Study Session 01/14/2020 Page 242 of 259
FINAL RESULTS –ENTERPRISE FUNDS
Water Wastewater Airport Total
Operating revenues $5,749,523 $1,626,394 $350,248 $7,726,165
Operating expenses 5,994,701 2,580,186 1,395,167 9,970,054
Operating loss (245,178)(953,792)(1,044,919)(2,243,889)
Nonoperating revenue (expense)(125,984)(2,675,831)-(2,801,815)
Contributions and transfers 2,721,060 3,019,392 3,924,549 9,665,001
Changes in net position 2,349,898 (610,231)2,879,630 4,619,297
Net position, beginning of year 35,867,726 41,931,416 14,058,288 91,857,430
Net position, end of year $38,217,624 $41,321,185 $16,937,918 $96,476,727
Marana Study Session 01/14/2020 Page 243 of 259
Questions?
Marana Study Session 01/14/2020 Page 244 of 259
Council-Study Session D2
Meeting Date:01/14/2020
To:Mayor and Council
From:Yiannis Kalaitzidis, Finance Director
Date:January 14, 2020
Strategic Plan Focus Area:
Commerce, Community, Heritage, Recreation, Progress & Innovation
Strategic Plan Focus Area Additional Info:
Financial sustainability, quality public service, strategic partnerships and local resource
investment are overriding principles of the Strategic Plan.
Subject:Relating to Budget; presentation, discussion and direction regarding the
framework for development of the fiscal year 2020-2021 budget and its role in
the implementation of the Strategic Plan (Jamsheed Mehta and Yiannis
Kalaitzidis)
Discussion:
This item brings forward the framework for development of the fiscal year 2020-2021
budget as a tool for implementation of the Town's Strategic Plan. The Marana Strategic
Plan is the Council's policy document for the future vision of the community. The
initiatives and goals included within the Strategic Plan drive services and programs in
future years which will be included in the annual budget documents.
Current economic assessments show the economy increasing overall, although at a lower
rate than prior periods. Staff will continue to monitor the markets and follow
developments at both state and federal levels to assess the true potential impact to our
economy. We will continue to maintain a thoughtful investment strategy that continues
to place resources in areas that maintain or enhance core services.
In addition, tonight’s presentation will provide a status overview of certain elements of
the Strategic Plan and a preliminary outlook into major revenue sources. We will
discuss key issues going into the fiscal year 2020-2021 budget, as well as any
additional issues the Council wishes to discuss. Supplemental materials will be provided
at the meeting.
Marana Study Session 01/14/2020 Page 245 of 259
Staff Recommendation:
Presentation only.
Suggested Motion:
Council's pleasure.
Attachments
No file(s) attached.
Marana Study Session 01/14/2020 Page 246 of 259
Council-Study Session D3
Meeting Date:01/14/2020
To:Mayor and Council
From:Jane Fairall, Deputy Town Attorney
Date:January 14, 2020
Strategic Plan Focus Area:
Not Applicable
Subject:Relating to Public Works; discussion, consideration, and feedback regarding
key policy considerations for use of Town-owned fiber conduit and ducts by
third parties (Jane Fairall)
Discussion:
The Town of Marana owns buried ducts in various rights-of-way located throughout the
Town. A map is included in the agenda materials depicting the locations. A typical duct
includes 3 inner ducts - 1 in use by the Town and 2 spares. The Town has received
requests from cable, telecommunications, and internet providers to use spare
Town-owned inner ducts.
This item is for discussion and direction regarding a possible Town policy for the use of
the Town's ducts. Key policy consideration include:
Should the Town allow others to use Town ducts?
What should be the financial basis for the charge for use of the duct?
What should be the term of years (duration) for use of the duct?
Should the Town require facilities to be removed from the duct upon termination?
Should the Town have a standard form of contract for use of a Town duct?
Financial Impact:
Allowing the use of Town ducts by third parties and charging a rental amount for that
use could provide a new ongoing revenue source for the Town.
Staff Recommendation:
Council's pleasure.
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Suggested Motion:
Council's pleasure.
Attachments
PowerPoint Presentation
Map of Fiber Conduit Locations
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Use of Town-Owned Fiber Conduit/Ducts
Jane Fairall, Deputy Town Attorney
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Background
•Town owns buried ducts in various rights-of-way in town
•Typical duct includes 3
inner ducts, 1 in use by the
Town and 2 spares
•Town has received requests
from cable, telecom &
internet providers to
use spare inner ducts
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Location of Ducts
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Key Policy Questions
•Should the Town allow others to use Town ducts?
•What should be the financial basis for the charge for use of the
duct?
•What should be the term of years (duration) for use of the
duct?
•Should the Town require facilities to be removed from the duct
upon termination?
•Should the Town have a standard form of contract for use of a
Town duct?
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Use by Others
•Should we allow others to use Town ducts?
•Pros
–Helps Town recoup some of its cost of installing facilities
–Reduces utility conflicts by minimizing new cuts
–Less disruptive to traveling public
•Cons
–May give third party conduit user the expectation of permanence
–May shift some risk of conduit or facility failure to the Town
–The proximity of the inner ducts could result in conduit user’s facility
failures interfering with Town facilities and other conduit users’ facilities
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Financial Basis
•What should be the financial basis for the charge for use of the
duct?
–Town’s actual cost of installing the duct
–User’s estimated cost of installing a line if they were not able to use
the Town’s duct
–“In-kind” or revenue sharing agreements
–Annual per linear foot charge
•e.g. Pima County: 35 cents per foot/per year (agreement entered into in 2011)
•Could be adopted via comprehensive fee schedule
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Duration
•What should be the term of years (duration) for use of the
duct?
–Renewed every 5 or 10 years
–Permanent
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Removal of Facilities
•Should the Town require facilities to be removed from the duct
upon termination?
–Could reduce the value of the duct to the user
–Should require the user to put up security for the removal
–Removal will make the duct available to other users and will avoid
doubts about live vs. dead facilities
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Form of Contract
•Should the Town have a standard form of contract for use of a
Town duct?
–Master agreement to use our system from time-to-time, as the need
arises, at various locations, subject to individually executed Conduit
Orders
–Individual, ad-hoc agreements for each use
–Use provider’s form of agreement
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Use of Town-Owned Fiber Conduit/Ducts
Feedback and Questions
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