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HomeMy WebLinkAboutAMENDED Regular Council Meeting Agenda Packet 01/19/2021AMENDED AGENDA January 15, 2021 at 2:43 P.M. MARANA TOWN COUNCIL REGULAR COUNCIL MEETING NOTICE AND AGENDA 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, January 19, 2021, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, 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 19, 2021, at or after 6:00 PM located in the Council Chambers 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. As a courtesy to others, please turn off or put in silent mode all electronic devices. Meeting Times Welcome to this Marana Town Council meeting. Regular Council meetings are usually held the first and third Tuesday of each month at 6:00 PM at the Marana Municipal Complex, although the date or time may change and additional meetings may be called at other times and/or places. Contact the Town Clerk or watch for posted agendas for other meetings. This agenda may be revised up to 24 hours prior to the meeting. In such a case a new agenda will be posted in place of this agenda. Speaking at Meetings AMENDED Regular Council Meeting 01/19/2021 Page 1 of 402 If you are interested in speaking to the Council during the Call to the Public or Public Hearings, you must fill out a speaker card (located in the lobby outside the Council Chambers) and deliver it to the Town Clerk prior to the convening of the meeting. All persons attending the Council meeting, whether speaking to the Council or not, are expected to observe the Council rules, as well as the rules of politeness, propriety, decorum and good conduct. Any person interfering with the meeting in any way, or acting rudely or loudly will be removed from the meeting and will not be allowed to return. Accessibility To better serve the citizens of Marana and others attending our meetings, the Council Chambers are 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. Agendas Copies of the agenda are available the day of the meeting in the lobby outside the Council Chambers or online at www.maranaaz.gov under Agendas and Minutes. For questions about the Council meetings, special services or procedures, please contact the Town Clerk, at (520) 382-1999, Monday through Friday from 8:00 AM to 5:00 PM. 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. REGULAR COUNCIL MEETING CALL TO ORDER AND ROLL CALL PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE APPROVAL OF AGENDA CALL TO THE PUBLIC At this time any member of the public is allowed to address the Town Council on any issue within the jurisdiction of the Town Council, except for items scheduled for a Public Hearing at this meeting. The speaker may have up to three minutes to speak. Any persons wishing to address the Council must complete a speaker card located outside the Council Chambers and deliver it to the Town Clerk prior to the commencement of the meeting. Individuals addressing a meeting at the Call to the Public will not be provided with electronic technology capabilities beyond the existing voice amplification and recording capabilities in the facilities. Pursuant to the Arizona Open Meeting Law, at the conclusion of Call to the Public, individual members of the Council may respond to criticism made by those who have addressed the Council,AMENDED Regular Council Meeting 01/19/2021 Page 2 of 402 Council may respond to criticism made by those who have addressed the Council, and may ask staff to review the matter, or may ask that the matter be placed on a future agenda. PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS MANAGER’S REPORT: SUMMARY OF CURRENT EVENTS PRESENTATIONS CONSENT AGENDA The Consent Agenda contains items requiring action by the Council which are generally routine items not requiring Council discussion. A single motion and affirmative vote will approve all items on the Consent Agenda, including any resolutions or ordinances. Prior to a motion to approve the Consent Agenda, any Council member may remove any item from the Consent Agenda and that item will be discussed and voted upon separately. C1 Resolution No. 2021-002: Relating to Development; approving a final plat for Tortolita Ridge Lots 1-32 and Common Areas “A” through “C” located approximately .75 miles north of Moore Road on the west side of Tortolita Road. (Cynthia Ross) C2 Resolution No. 2021-003: Relating to Development; approving a final plat for SC Ranch Lots 1-54 and Common Areas "A" (Recreation & Drainage) and "B" (Landscape, Drainage and Utilities) located generally at the northeast corner of Sanders and Moore Roads. (Justin Currie) C3 Resolution 2021-004:  Relating to Budget; authorizing the transfer of $550,000 in budgeted expense authority from the Other Agency Fund 3045 line item to the Transportation Fund line item in the FY21 budget for costs related to the Adonis Road Extension project (Keith Brann) C4 Resolution No. 2021-005:Relating to Development; approving a release of assurances for Del Webb at Dove Mountain IX subdivision and accepting public street improvements for maintenance (Keith Brann) C5 Resolution No. 2021-006: Relating to Police Department; approving and AMENDED Regular Council Meeting 01/19/2021 Page 3 of 402 C5 Resolution No. 2021-006: Relating to Police Department; approving and authorizing the Town Manager to execute Subrecipient Agreement No. 18-AZDOHS-OPSG-180421-03 with the Arizona Department of Homeland Security for purposes of receiving reallocated funds under the FFY2018 Operation Stonegarden Grant Program (Kristin Taft) C6 Relating to Procurement; ratifying the Town Manager's approval of a change order to the Southern Arizona Paving construction contract for the Avra Valley Road Pavement Reconstruction in the amount of $57,883.27; authorizing the transfer of appropriations, if necessary, for the change order; and authorizing the Town Manager or designee to execute the necessary documents to effectuate the change order (Keith Brann) C7 Approval of the Council Regular Meeting Summary Minutes of December 15, 2020 (Cherry L. Lawson) LIQUOR LICENSES L1 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an application for a new series #010 Beer and Wine Store Liquor License submitted by Perry Charles Huellmantel on behalf of QuikTrip #1491, located at 9400 West Tangerine Road, Marana, AZ 85653 (Cherry L. Lawson) L2 Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an application for a new series #012 Restaurant Liquor License submitted by Kevin Arnold Kramber on behalf of Guadalajara's Grill, located at 5955 West Arizona Pavilions Drive, Tucson, AZ 85743 (Cherry L. Lawson) BOARDS, COMMISSIONS AND COMMITTEES B1 Resolution No. 2021-007: Relating to Boards, Commissions and Committees; making an appointment to the Council Committee for Planning Commission and Board of Adjustment Appointments (Cherry L. Lawson) COUNCIL ACTION A1 Resolution No. 2021-008:  Relating to Real Estate; approving and authorizing the Town Manager to execute a license agreement with Apollo Healthcare and Diagnostics, LLC, dba: TestNOW for use of Town-owned property located at 11555 W. Civic Center Drive (Lisa Shafer) AMENDED Regular Council Meeting 01/19/2021 Page 4 of 402 A2 Resolution No. 2021-009: Relating to Economic Development; approving the Marana Matters: COVID-19 Small Business Assistance Program to assist small businesses located within the Town of Marana impacted by the COVID-19 pandemic; and approving a corresponding budget capacity transfer from the general fund contingency line item to the Economic Development Department budget in the fiscal year 2020-2021 budget (Heath Vescovi-Chiordi) A3 Resolution No. 2021-010: Relating to Real Estate; approving and authorizing the Town Manager to execute a License Agreement with Marana Health Center, Inc. for use of Town-owned property located north of Bill Gaudette Drive between Marana Main Street and North Sandario Road for a Covid-19 drive-through vaccination site (Jane Fairall) ITEMS FOR DISCUSSION / POSSIBLE ACTION D1 Relating to Budget; presentation of independent auditor's report and final results for the 2019-2020 fiscal year (Yiannis Kalaitzidis) D2 Relating to Utilities; discussion and direction on the application of the IGA between the City of Tucson and the Town of Marana Relating to the Delivery of Central Arizona Project Water to proposed developments within the Town limits (Scott Schladweiler) D3 Relating to Budget; discussion, direction and possible action regarding development of the fiscal year 2021/2022 budget, including proposed budget initiatives and expenditures (Terry Rozema) D4 Relating to Legislation and Government Actions; discussion and possible action regarding all pending state, federal, and local legislation/government actions and on recent and upcoming meetings of the other governmental bodies (Terry Rozema) 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). E2 Executive Session pursuant to A.R.S. §38-431.03 (A)(1) to discuss the AMENDED Regular Council Meeting 01/19/2021 Page 5 of 402 E2 Executive Session pursuant to A.R.S. §38-431.03 (A)(1) to discuss the employment of Interim Town Manager Terry Rozema. 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 AMENDED Regular Council Meeting 01/19/2021 Page 6 of 402      Council-Regular Meeting   C1        Meeting Date:01/19/2021   To:Mayor and Council From:Cynthia Ross, Senior Planner Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-002: Relating to Development; approving a final plat for Tortolita Ridge Lots 1-32 and Common Areas “A” through “C” located approximately .75 miles north of Moore Road on the west side of Tortolita Road. (Cynthia Ross) Discussion: Request Baker and Associates, representing DR Horton Inc., is requesting the approval of a final plat for Tortolita Ridge Lots 1-32 and Common Areas “A” (Open Space/Drainage), “B” (Park), and “C” (Natural Undisturbed Open Space).   Zoning and Land Use The Mayor and Town Council adopted Marana Ordinance 2018.023 on December 18, 2018, rezoning approximately 17.2 acres of land from ‘R-80’ Residential and Zone ‘C’ (Large Lot Zone) to ‘R-8’ Residential. The preliminary plat for Tortolita Ridge Lots 1-32 & Common Areas "A" through "C"  was approved by the Town Council on December 1, 2020, by the adoption of Resolution No. 2020-129. The existing R-8 zoning allows for single-family detached residential development at a minimum lot size of 8,000 square feet. The final plat proposes 32 residential lots with a minimum lot size of 8,004 square feet, a maximum lot size of 9,832 square feet, and an average lot size of 8,402 square feet. The density proposed for this subdivision is 1.8 residences per acre. The R-8 development standards will apply and all lots will be subject to the Town’s Residential Design Standards. Single-Story Home Lots AMENDED Regular Council Meeting 01/19/2021 Page 7 of 402 Condition No. 20 of the rezoning ordinance requires lots 1-14, 26-28, 33 and 34, as shown on the rezoning conceptual land use plan, be restricted to single story homes. The plat translates the conceptual plan lots that will be restricted to single story homes as lots 1-14, 24-26, and 31 and 32.   Recreation Area Condition No. 21 of the rezoning ordinance requires the developer to construct a park area containing a ramada, BBQ pit, grassy area and picnic benches prior to approval of the 34th building permit. The applicant will provide a 5,225 square foot park area containing those amenities in the northwest portion of the subdivision prior to approval of the 32nd building permit.   Open Space The clustered subdivision sets aside 7.82 acres or 45% of the site as natural undisturbed open space, preserving the site’s native vegetation and facilitating wildlife connectivity across the site.   Access and Traffic Circulation The internal streets are public and will be maintained by the Town. Access will be provided from Tortolita Road, a two-lane minor local road that borders the easternmost property boundary. Condition No. 22 of the rezoning ordinance required developer construction of a 20-foot-wide emergency access drive with a stabilized surface capable of supporting fire apparatus. At the time of the rezoning request, it was anticipated that the emergency access drive would be provided from the proposed northerly cul-de-sac to Tortolita Road to the east, across the adjacent properties utilizing two 15' wide existing access easements. During the course of this plat review process, it was determined by Town staff and the applicant that the aforementioned existing access easements do not provide access rights for use by this project to Tortolita Road.   Marana Subdivision Street Standards - Design Exception A Design Exception application (Marana Case #ENG2009-007) to provide all the homes in the subdivision with automatic fire sprinklers, an allowable mitigating requirement for approval of a single point of access as outlined in Section 4.14.1.a.ii. of the Marana Subdivision Street Standards Manual, July 16 Edition was approved by Town Engineer Keith Brann. On November 17, 2020, the Town Council approved Ordinance No. 2020.016, revising rezoning condition #22 to replace the requirement for an emergency access with a condition that the property owners install automatic fire sprinkler systems in each home, acceptable to the Northwest Fire District.   Utility Service Water Service will be provided to the subdivision by Tucson Water. Sewer service will be provided by Pima County Regional Wastewater Reclamation Department. TRICO Electric will provide service to the development. Fire protection service will be provided by the Northwest Fire District. Staff Recommendation: Staff has reviewed the proposed final plat against the requirements of Marana AMENDED Regular Council Meeting 01/19/2021 Page 8 of 402 Staff has reviewed the proposed final plat against the requirements of Marana Ordinances No. 2018.023 and No. 2020.016, the Marana Land Development Code, the Marana General Plan, the Marana Town Code, and the approved preliminary plat. The proposed final plat is in substantial conformance with all required regulations and staff recommends approval. Suggested Motion: I move to adopt Resolution No. 2021-002, approving the final plat for Tortolita Ridge Lots 1-32 and Common Areas “A” through “C” located approximately .75 miles north of Moore Road on the west side of Tortolita Road. Attachments Resolution 2021-002 Application Location Map Final Plat AMENDED Regular Council Meeting 01/19/2021 Page 9 of 402 Resolution No . 202 1-002 - 1 - [CLR] MARANA RESOLUTION NO. 202 1 -002 RELATING TO DEVELOPMENT; APPROVING A FINAL PLAT FOR TORTOLITA RIDGE LOTS 1-32 AND COMMON AREAS “A” THROUGH “C” LOCATED APPROXIMATELY .75 MILES NORTH OF MOORE ROAD ON THE WEST SIDE OF TORTOLITA ROAD. WHEREAS the Mayor and Council of the Town of Marana adopted Marana Ordinance No. 2018.023 on December 18, 2018, approving a rezoning of 17.3 acres of land known as Tortolita Ridge from ‘R-80’ (Single-Family Residential) and Zone ‘C’ (Large Lot Zone) to ‘R-8’ (Single-Family Residential), and amending the 2010 Marana General Plan designation for the Rezoning Area from Rural Density Residential (RDR) to Low Density Residential (LDR); and WHEREAS the Mayor and Council of the Town of Marana adopted Marana Ordinance No. 2020.016 on November 17, 2020, amending Ordinance 2018.023, eliminating the requirement for an emergency access road and replacing it with a requirement for installation of automatic fire sprinkler systems; and WHEREAS the Preliminary Plat for Tortolita Ridge Lots 1 -32 and Common Areas “A”, “B”, and “C” was approved by the Town Council on December 1, 2020, by the adop tion of Resolution 2020-129; and WHEREAS Baker and Associates, representing DR Horton Inc., the current property owner, has applied for approval of a final plat for Tortolita Ridge Lots 1-32 and Common Area “A” (Open Space/Drainage), “B” (Park), and “C” (Natural Undisturbed Open Space) located approximately .75 miles north of Moore Road on the west side of Tortolita Road; and WHEREAS the Mayor and Town Council, at the regularly scheduled meeting on January 19, 2021, determined that the final plat for Tortolita Ridge should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona, that the final plat for Tortolita Ridge Lots 1-32 and Common Areas “A” through “C” is hereby approved. AMENDED Regular Council Meeting 01/19/2021 Page 10 of 402 Resolution No . 202 1-002 - 2 - [CLR] PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January, 2021. Mayor Ed Honea ATTEST: Cherry Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 11 of 402 PRV2006-001 6/19/2020 AMENDED Regular Council Meeting 01/19/2021 Page 12 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 13 of 402 REF.: #PCZ1806-001, PRV2006-001,JOB #2492 SHEET 1 OF 3DATE: DECEMBER 29, 2020 Baker & Associates Engineering, Inc. 3561 E. Sunrise Drive, Suite #225 Fax (520) 318-1930Tucson, Arizona 85718 (520) 318-1950 LPR2008-001 AND NPP2008-001 AMENDED Regular Council Meeting 01/19/2021 Page 14 of 402 Baker & Associates Engineering, Inc. 3561 E. Sunrise Drive, Suite #225 Fax (520) 318-1930Tucson, Arizona 85718 (520) 318-1950 REF.: #PCZ1806-001, PRV2006-001, JOB #2492 SHEET 2 OF 3DATE: DECEMBER 29, 2020 LPR2008-001 AND NPP2008-001 AMENDED Regular Council Meeting 01/19/2021 Page 15 of 402 Baker & Associates Engineering, Inc. 3561 E. Sunrise Drive, Suite #225 Fax (520) 318-1930Tucson, Arizona 85718 (520) 318-1950 REF.: #PCZ1806-001, PRV2006-001, JOB #2492 SHEET 3 OF 3DATE: DECEMBER 29, 2020 LPR2008-001 AND NPP2008-001 AMENDED Regular Council Meeting 01/19/2021 Page 16 of 402      Council-Regular Meeting   C2        Meeting Date:01/19/2021   To:Mayor and Council From:Justin Currie, Planner Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-003: Relating to Development; approving a final plat for SC Ranch Lots 1-54 and Common Areas "A" (Recreation & Drainage) and "B" (Landscape, Drainage and Utilities) located generally at the northeast corner of Sanders and Moore Roads. (Justin Currie) Discussion: Request Marum & Associates Engineering LLC, on behalf of LGI Homes Arizona, LLC, is requesting the approval of a final plat consisting of 54 residential lots and common areas "A" and "B" on approximately 10.77 acres located generally at the northeast corner of Sanders and Moore Roads. Zoning The zoning for SC Ranch is Neighborhood Commercial (NC).  The NC zoning allows single family residential detached homes using the R-3.5 Residential zoning standards with the required minimum lot size of 3,500 square feet.  The average lot size of the proposed subdivision is 4,484.89 square feet. The minimum lot size of the proposed subdivision is 4,376 square feet (Lots 42 and 54).  The maximum lot size of the proposed subdivision is 6,162 square feet (Lot 25).  Transportation One public street entry off of Moore Road is proposed at the southeast portion of the subdivision.  Emergency access is proposed off of Sanders Road at the northwest corner of the site.  The internal street section for the development is the typical 42 foot wide public right-of-way. Park Requirements AMENDED Regular Council Meeting 01/19/2021 Page 17 of 402 The active recreation areas are planned to be located in Common Area A, totaling approximately 56,679 square feet. While this area includes some drainage features, the proposed subdivision provides considerably more area than the minimum of active recreation area required by the Town Code. Staff Recommendation: Staff has reviewed the request against the requirements of the Marana Town Code, the Land Development Code, and the Marana 2040 General Plan.  This final plat is in substantial conformance with all required development regulations. Staff recommends approval to the Town Council. Suggested Motion: I move to adopt Resolution No. 2021-003, approving a final plat for SC Ranch Lots 1-54, Common Areas "A" (Recreation & Drainage), "B" (Landscape, Drainage and Utilities) located generally at the northeast corner of Sanders and Moore Roads. Attachments Resolution 2021-003 SC Ranch Final Plat Application Location Map AMENDED Regular Council Meeting 01/19/2021 Page 18 of 402 Resolution No. 2021-003 MARANA RESOLUTION NO. 202 1-003 RELATING TO DEVELOPMENT; APPROVING A FINAL PLAT FOR SC RANCH LOTS 1-54 AND COMMON AREAS "A" (RECREATION & DRAINAGE) AND "B" (LANDSCAPE, DRAINAGE AND UTILITIES) LOCATED GENERALLY AT THE NORTHEAST CORNER OF SANDERS AND MOORE RO ADS. WHEREAS on August 19, 2003, the Mayor and Town Council adopted Ordinance No. 2003.19, approving a rezoning of approximately 10 acres of land gene rally located at the northeast corner of Sanders and Moore Roads to Neighborhood Commercial (NC) (the “site”); and WHEREAS on May 19, 2020, the Mayor and Town Council adopted Resolution 2020-044, approving the preliminary plat for SC Ranch Lots 1-54 and Co mmon Areas “A” and “B” for the site ; and WHEREAS LGI Homes Arizona, LLC, has applied for approval of a final plat for SC Ranch Lots 1-54 and Common Areas “A” and “B”; and WHEREAS the Marana Town Council, at the regularly scheduled meeting on January 19, 2021, determined that the final plat for SC Ranch Lots 1-54 and Common Areas “A” and “B” should be approved. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona, that the final plat for SC Ranch Lots 1-54, Common Areas “A” and “B” is hereby approved. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January, 2021. Mayor Ed Honea ATTEST: Cherry Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 19 of 402 AMENDED Regular Council Meeting 01/19/2021Page 20 of 402 AMENDED Regular Council Meeting 01/19/2021Page 21 of 402 PRV2009-001 9/3/2020 AMENDED Regular Council Meeting 01/19/2021 Page 22 of 402 © Latitude Geographics Group Ltd. 0.6 THIS MAP IS NOT TO BE USED FOR NAVIGATION WGS_1984_Web_Mercator_Auxiliary_Sphere Miles0.6 Notes Legend This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. 0.280 1:18,056 SC Ranch Final Plat Town of Marana Planning Marana Town Limits Parcel Labels Parcels (Black) Project Location AMENDED Regular Council Meeting 01/19/2021 Page 23 of 402    Council-Regular Meeting   C3        Meeting Date:01/19/2021   To:Mayor and Council Submitted For:Keith Brann, Town Engineer From:Keith Brann, Town Engineer Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution 2021-004:  Relating to Budget; authorizing the transfer of $550,000 in budgeted expense authority from the Other Agency Fund 3045 line item to the Transportation Fund line item in the FY21 budget for costs related to the Adonis Road Extension project (Keith Brann) Discussion: The budget for fiscal year 2020-2021 was adopted on July 21, 2020.  The Adonis Road Extension (ST059) project was included within the Town of Marana’s FY2021 Capital Improvement Plan.  The original total budget of $5,231,009 for the project was based on a cost estimate from a contractor working for the Villages of Tortolita.  That budget amount included up to $1,500,000 of potential developer funding toward the project with the remaining $3,731,009 to be funded by the Transportation Fund. These amounts included design plans, construction, land acquisition and other project related costs.    The design plans which often provide the most accurate project estimate were not complete at the time of budget adoption.   Subsequent to the original estimate and budget adoption, there were significant requirements placed on the project by the Central Arizona Project (CAP) to cross over their canal siphon.  To avoid these significant costs and to keep the project progressing, the Town worked with the Mandarina development to utilize a future road in Mandarina that would connect to Tangerine Road west of the CAP canal.  This modification, while not requiring the steep cost of crossing the CAP canal, required widening of Tangerine Road to provide a left turn lane for storage as the new intersection was closer to the railroad.  Another cost that did not appear in the prior cost estimate was the relocation of an irrigation canal with prior rights. AMENDED Regular Council Meeting 01/19/2021 Page 24 of 402   The Town has taken over the responsibility from Villages of Tortolita to construct Adonis Road with the Villages required to reimburse the Town in the future.  The Town has also entered into a settlement agreement with the Mandarina development and Mandarina is holding the funds of the settlement to construct the Mandarina portion of Adonis Road.   On 10/28/2020 the Town of Marana and Granite Construction Company entered into a Construction Manager at Risk Contract (CMAR) to construct the Adonis Road Extension (ST059) project.   Upon completion of design, plan review, and contract negotiations, the final Guaranteed Maximum Price (GMP) to construct the Adonis Road Extension (ST059) project is $3,950,741.94. The portion of the project that is Mandarina’s responsibility is $2,162,663.63.  The Town’s financial obligations as detailed in the Mandarina Mediation Agreement, the Mandarina Mediation Agreement 1st Amendment, and the Mandarina Mediation Agreement 2nd Amendment, total $2,234,742.00.  This results in a difference of $72,078.37 between what the Town owes to Mandarina and what it will cost to build the Mandarina portion of the project.   A summary of total construction costs is presented below.   Project Construction (GMP):                   $3,950,741.94 Construction Quality Control testing:      $     48,199.00 Remaining Mandarina Settlement:         $     72,078.37 Total Construction Costs:                       $4,071,019.31   Currently, the Town of Marana remaining budget for this project out of the Transportation fund is $3,553,538.30, a projected budget shortfall of $517,481.01.   As such, the Town will require an additional $550,000 in funding to complete this project, which includes a small additional amount for contingencies.    In addition, staff recommends transferring budget capacity of $550,000 from the amount of $1.5 million budgeted within the project from potential developer funding to provide the additional budget capacity in the Transportation fund needed to pay for the additional project funding from the Transportation fund.   Financial Impact: Fiscal Year:FY21 Budgeted Y/N:Y Amount:$550,000 AMENDED Regular Council Meeting 01/19/2021 Page 25 of 402 Staff recommends transferring $550,000 in budget capacity from the Adonis Road Project budget in the Other Agency Fund 3045, to the Transportation Fund to provide the additional budget capacity in the Transportation Fund 3030, needed to pay for the additional project funding. Staff Recommendation: Staff recommends approval of the increase in project budget. Suggested Motion: I move to adopt Resolution No. 2021-004, authorizing the transfer of $550,000 in budgeted expense authority from the Other Agency Fund 3045 line item to the Transportation Fund line item in the FY21 budget for costs related to the Adonis Road Extension project.   Attachments Resolution 2021-004 AMENDED Regular Council Meeting 01/19/2021 Page 26 of 402 Marana Resolution No. 20 21-004 - 1 - MARANA RESOLUTION NO. 2021-004 RELATING TO BUDGET; AUTHORIZING THE TRANSFER OF $550,000 IN BUDGETED EXPENSE AUT HORITY FROM THE OTHER AGENCY FUND 3045 LINE ITEM TO THE TRANSPORTATION FUND LINE ITEM IN THE FY 21 BUDGET FOR COSTS RELATED TO THE ADONIS ROAD EXTENSIO N PROJECT WHEREAS on July 21, 2020, the Town Council adopted the fiscal year 2 020-2021 budgetary document and overall financial plan which set the legal level of budgetary control at the department level for the General Fund and at the fund level for all other funds; and WHEREAS the Engineering Department included funding of $5,231,009 for the Adonis Road Extension project in its FY21 Capital Improvement Plan budget based on a cost estimate before the design plans were completed ; and WHEREAS following budget adoption, there were significant demands placed on the project by the Centra l Arizona Project (CAP) to cross over their canal siphon and there was a relocation of an irrigation canal with prior rights not included in the original budget; and WHEREAS on October 28, 2020, the Town of Marana and Granite Construction Company entered into a Construction Manager at Risk Contract (CMAR) to construct the Adonis Road Extension project for $3,950,741.94 thereby creating a budget shortfall of $517,481.01; and WHEREAS staff is requesting a transfer of up to $550,000 to cover the budget shortfall and small additional contingencies from the Other Agency Fund 3045 to the Transportation fund to allow construction of the Adonis Road Extension project to pro- ceed on schedule and not impact the schedule of other pending projects ; and WHEREAS reallocations of budgetary amounts between Capital Improvement Projects are necessary from time to time; and WHEREAS the Council finds that the reallocations addressed by this resolution are in the best interest of the Town of Marana and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The transfer of $550,000.00 in budgeted expense authority from the Other Agency Fund 3045 to the Transportation Fund in the fiscal year 2020-2021 budget is hereby approved . AMENDED Regular Council Meeting 01/19/2021 Page 27 of 402 Marana Resolution No. 20 21-004 - 2 - SECTION 2. The Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga- tions, and objectives of this resolution. PASSED AND ADOPTED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, this 19th day of January, 2021. Mayor Ed Honea ATTEST: Cherry Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 28 of 402      Council-Regular Meeting   C4        Meeting Date:01/19/2021   To:Mayor and Council Submitted For:Keith Brann, Town Engineer From:Gus Myers, Development Engineering Manager Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-005:Relating to Development; approving a release of assurances for Del Webb at Dove Mountain IX subdivision and accepting public street improvements for maintenance (Keith Brann) Discussion: Del Webb at Dove Mountain IX consists of lots 596-625, an 8.2 acre subdivision located south of Dove Mountain Boulevard and west of Del Webb Trail. The final plat for the subdivision was approved by Council on August 7, 2019, and recorded at the Pima County Recorder's Office on August 9, 2019, at Sequence Number 20192210094. The Town has as assurance agreement assuring the completion of improvements needed to serve the subdivision. The subdivider has completed the improvements serving Del Webb IX acceptable to Town standards in accordance with the assurance agreement, including the public infrastructure which consists of paved streets, a sanitary sewer conveyance system, and a potable water distribution system. If approved, this resolution will release the Del Webb at Dove Mountain IX subdivision assurances and accept the public streets for maintenance. The public water and sewer improvements serving the subdivision are being dedicated to Tucson Water and Pima County Regional Wastewater Reclamation Department, respectively. Staff Recommendation: Staff recommends approval of Resolution 2021-005, approving a release of assurances AMENDED Regular Council Meeting 01/19/2021 Page 29 of 402 Staff recommends approval of Resolution 2021-005, approving a release of assurances for Del Webb at Dove Mountain IX, and accepting the public street improvements for maintenance. Suggested Motion: I move to approve Resolution 2021-005, approving a release of assurances for Del Webb at Dove Mountain IX and accepting public street improvements for maintenance. Attachments Resolution 2021-005 Location Map AMENDED Regular Council Meeting 01/19/2021 Page 30 of 402 - 1 - Resolution No. 2021 -005 1/3/2021 1:00 PM MARANA RESOLUTION NO. 2021-005 RELATING TO DEVELOPMENT; APPROVING A RELEASE OF ASSURANCES FOR DEL WEBB AT DOVE MOUNTAIN IX SUBDIVISION AND ACCEPTING PUBLIC STREET IMPROVEMENTS FOR MAINTENANCE WHEREAS ‘Del Webb at Dove Mountain IX, Lots 596-625 and Common Area “A” (Drainage/Open Space)’ (“Del Webb at DM IX”) is a 8.19 acre subdivision located south of Dove Mountain Boulevard and west of Del Webb Trail, according to the plat recorded in the office of the Recorder of Pima County, Arizona, on August 9, 2019, at Sequence 20192210094; and WHEREAS the Town has a third party trust assurance agreement (the “Assurance Agreement”) with Pulte Home Company, LLC (the “Subdivider”) and Lan dmark Title Assurance Agency of Arizona, LLC, as Trustee under trust number 18300 -T, recorded in the Pima County Recorder’s office on August 9, 2019, at Sequence 20192210107, assuring the completion of subdivision improvements for Del Webb at Dove Mountain IX; and WHEREAS the subdivider has completed the subdivision improvements to Town standards in accordance with the Assurance Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA as follows: SECTION 1. The Assurance Agreement is hereby released. SECTION 2. The Town accepts for maintenance, including maintenance of regulatory traffic control and street signs, the following approximately 0.20 miles of paved public streets located within the Del Webb at Dove Mo untain IX subdivision: • Komo Point Trail • Cape Royal Place • Cape Royal Trail AMENDED Regular Council Meeting 01/19/2021 Page 31 of 402 - 2 - Resolution No. 2021 -005 1/3/2021 1:00 PM PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January 2021. ATTEST: Mayor Ed Honea APPROVED AS TO FORM: Cherry L. Lawson, Town Clerk Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 32 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 33 of 402    Council-Regular Meeting   C5        Meeting Date:01/19/2021   To:Mayor and Council From:Kristin Taft, Grants Manager Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-006: Relating to Police Department; approving and authorizing the Town Manager to execute Subrecipient Agreement No. 18-AZDOHS-OPSG-180421-03 with the Arizona Department of Homeland Security for purposes of receiving reallocated funds under the FFY2018 Operation Stonegarden Grant Program (Kristin Taft) Discussion: The Town of Marana has been selected to participate in Operation Stonegarden activities in southern Arizona. Operation Stonegarden is a federally funded program originating with the 2006 Emergency Supplemental Appropriations Act for Defense, the Global War on Terror and Hurricane Recovery. Funding was renewed for the current fiscal year, providing the Town of Marana an opportunity to participate and receive funding for the 11th straight year. The program provides states the flexibility to use Department of Homeland Security grant funding to enhance coordination among state and federal law enforcement agencies at and near the U.S./Mexico border. The program requires states to identify and prioritize solutions to their border security needs and provides funding to state and local agencies to implement the state’s individual goals and objectives. For 2020-2021, the Town was awarded $117,288 under a subgrantee agreement with the Arizona Department of Homeland Security to support Operation Stonegarden. Funding will be used to purchase additional equipment to augment and support Border Patrol coverage of egress from the border areas with state, local and tribal police agencies. Through participation in this operation, the Marana Police Department will use its authority to control the routes and reduce the propensity for cross-border crime in the area. Patrols will concentrate on the 109 miles of arterial roadways serving as regional east-west connectors between State Route 77 and I-10 and the more than 57 miles of rural, mostly two-lane roads paralleling I-10 to the west. AMENDED Regular Council Meeting 01/19/2021 Page 34 of 402 The Marana Police Department's primary goals are to: (1) reduce crime in border communities to improve the quality of life; (2) deter illegal entries through teamwork with other local and federal agencies; (3) assist in apprehending terrorists and weapons illegally entering the United States; and (4) coordinate operations with the U.S. Border Patrol (USBP) Tucson Sector. Marana, in cooperation with U.S. Border Patrol, will deploy officers along prime roadways prone to invoke illegal activity and national security concerns. Because Marana sits 60 miles from the Mexican Border and hosts segments of rural transportation routes traditionally used to smuggle undocumented workers and drugs up from Mexico, five specific areas will be targeted for Stonegarden activities: Area one:  Sandario Rd from Emigh Rd to Avra Valley Rd Area two:  Avra Valley from the Silverbell Mines to I-10 Area three: Silverbell Rd/Twin Peaks Rd Corridor Area four:  I-10 from Twin Peaks Rd to the Pinal County line Area five:  Discretionary area with Marana PD sworn supervisor approval to provide flexibility to the Chief of Patrol, USBP These activities will be coordinated through the USBP. Marana will identify these shift times and locations and address them accordingly. As an active participant in regional planning, emergency operations, and homeland security initiatives, the Marana Police Department has been impacted by increased contacts with illegal entrants and human and narcotics smugglers migrating through the community as focused enforcement has caused a deviated travel pattern from the US Mexican Border along the I-10 corridor. For Operation Stonegarden grant funding, the Town is and has historically been a direct subgrantee of the state, without having the funds pass through another entity, such as Pima County or the City of Tucson.  However, Pima County has traditionally served as the coordinating agency overseeing the committee process used to determine the allocation of funding to the various participating agencies. Due to continued complications at the federal, state, and local levels for this program, this funding agreement was delayed several months. Financial Impact: Fiscal Year:2021 Budgeted Y/N:Y Amount:$117,288 Funding has been awarded to purchase equipment ($117,288) for license plate reader subscription renewals (12 units), 4 thermal imagers, 5 LIDAR, and 11 portable radios. There is no match requirement from the Town for the funding. Funds will be expended out of the Grants Fund - 2015. Staff Recommendation: Staff recommends approval of the Subgrantee Agreements with the Arizona Department AMENDED Regular Council Meeting 01/19/2021 Page 35 of 402 Staff recommends approval of the Subgrantee Agreements with the Arizona Department of Homeland Security for purposes of receiving funds under the FFY2018 Operation Stonegarden Grant Program Reallocation. Suggested Motion: I move to adopt Resolution No. 2021-006 approving and authorizing the Town Manager to execute Subrecipient Agreement No. 18-AZDOHS-OPSG-180421-03 with the Arizona Department of Homeland Security for purposes of receiving reallocated funds under the FFY2018 Operation Stonegarden Grant Program. Attachments Resolution 2021-006 Grant Agreement Award Letter AMENDED Regular Council Meeting 01/19/2021 Page 36 of 402 00073912.DOCX /1 Marana Resolution No. 20 21-006 MARANA RESOLUTION NO. 2021-006 RELATING TO POLICE DEPARTMENT; APPROVING AND AUTHORIZING THE TOWN MANAGER TO EXECUTE SUBRECIPIENT AGREEMENT NO. 18-AZDOHS- OPSG-180421-03 WITH THE ARIZONA DEPARTMENT OF HOMELAND SECUR ITY FOR PURPOSES OF RECE IVING REALLOCATED FUNDS UNDER THE FFY2018 OPERATION STONEGARDE N GRANT PROGRAM WHEREAS the Town of Marana recognizes its duty to protect its citizens concerning matters involving Homeland and Border Security; and WHEREAS the Marana Police Department is working with the Arizona Department of Homeland Security, United States Border Patrol, and other community agencies as a regional partner in the Operation Stonegarden Program; and WHEREAS the Arizona Department of Homeland Security has awarded grant funding to the Town for the provision of equipment for services provided in coordination with the Operation Stonegarden Program; and WHEREAS the Town Council finds that it is in the best interests of the community to enter into Sub recipient Agreement with the Arizona Department of Homeland Security to be eligible to receive funds related to the Operation Stonegarden Program. NOW, THEREFORE, BE IT RESOLVED BY TH E MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, AS FOLLOWS: SECTION 1. The Subrecipient Agreement No. 18-AZDOHS-OPSG-180421-03 between the Arizona Department of Homeland Security and the Town of Marana, in substantially the form attached to and incorporated by this reference in this resolution as Exhibit A, is hereby approved and the Town Manager is hereby authorized to execute it for and on behalf of the Town of Marana. SECTION 2. The Town Manager and staff are hereby directed and authorized to unde rtake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of the Sub recipient Agreement. AMENDED Regular Council Meeting 01/19/2021 Page 37 of 402 00073912.DOCX /1 Marana Resolution No. 20 21-006 PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January, 2021. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 38 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 1 SUBRECIPIENT AGREEMENT -REALLOCATION OPERATION STONEGARDEN GRANT PROGRAM EQUIPMENT 18-AZDOHS-OPSG- (Enter Subrecipient Agreement number above (e.g., 180XXX-XX) Between The Arizona Department of Homeland Security And (Enter the name of the Subrecipient Agency above) DUNS Number____________________ (Enter the DUNS number above) WHEREAS, A.R.S. section 41-4254 charges the Arizona Department of Homeland Security (AZDOHS) with the responsibility of administering funds. THEREFORE, it is agreed that the AZDOHS shall provide funding to the (Enter the name of the Subrecipient Agency above) (Subrecipient) for services under the terms of this Agreement (the “Agreement”). I.PURPOSE OF AGREEMENT The purpose of this Agreement is to specify the rights and responsibilities of AZDOHS in administering the distribution of homeland security grant funds to the Subrecipient, and to specify the rights and responsibilities of the Subrecipient as the recipient of these funds. II.PERIOD OF PERFORMANCE, TERMINATION AND AMENDMENTS This Agreement shall become effective on December 3, 2020 and shall terminate on July 31, 2021. The obligations of the Subrecipient as described herein will survive termination of this agreement. III.DESCRIPTION OF SERVICES The Subrecipient shall provide the services for AZDOHS as set forth in writing in Subrecipient’s grant application titled: “OPSG Equipment” and funded at $ (as may have been modified by the award letter). (Enter funded award amount above) IV.MANNER OF FINANCING The AZDOHS shall under the U.S. Department of Homeland Security grant # EMW -2018-SS- 00004-S01 and CFDA #97.067: a)Provide up to $ to the Subrecipient for services provided under Paragraph III. (Enter funded award amount above) b)Payment made by the AZDOHS to the Subrecipient shall be on a reimbursement basis only and is conditioned upon receipt of proof of payment and applicable, accurate and complete reimbursement documents, as deemed necessary by the AZDOHS, to be submitted by the Subrecipient. A listing of acceptable documentation can be found at www.azdohs.gov. AMENDED Regular Council Meeting 01/19/2021 Page 39 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 2 Payments will be contingent upon receipt of all reporting requirements of the Subrecipient under this Agreement. V. FISCAL RESPONSBILITY It is understood and agreed that the total amount of the funds used under this Agreement shall be used only for the project as described in the application and award documentation. Therefore, should the project not be completed, the subrecipient shall reimburse said funds directly to the AZDOHS immediately. If the project is completed at a lower cost than the original budget called for, the amount reimbursed to the subrecipient shall be for only the amount of dollars actually spent by the subrecipient in accordance with the approved application. For any funds received under this Agreement for which expenditure is disallowed by an audit exemption or otherwise by the AZDOHS, the State, or Federal government, the Subrecipient shall reimburse said funds directly to the AZDOHS immediately. VI. FINANCIAL AUDIT/PROGRAMMATIC MONITORING The Subrecipient agrees to comply with the record-keeping requirements and other requirements of A.R.S. section 35-214 and section 35-215. a) In addition, in compliance with the Federal Single Audit Act (31 U.S.C. part 7501-7507), as amended by the Single Audit Act Amendments of 1996 (P.L. 104 to 156), the Subrecipient must have a Single Audit or program specific audit conducted in accordance with 2 CFR 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) if the Subrecipient expends more than $750,000 from Federal awards in its previous fiscal year. If the Subrecipient has expended more than $750,000 in Federal dollars, a copy of the Subrecipient’s single audit or program specific audit report for the previous fiscal year and subsequent fiscal years that fall within the period of performance is due annually to AZDOHS within nine (9) months of the Subrecipient’s fiscal year end. b) Failure to comply with any requirements imposed as a result of an audit will suspend reimbursement by AZDOHS to the Subrecipient until the Subrecipient is in compliance with all such requirements. Additionally, the Subrecipient will not be eligible for any new awards until the Subrecipient is in compliance with all such requirements. c) Subrecipients who do not expend more than $750,000 in Federal dollars in the previous fiscal year and subsequent fiscal years that fall within the period of performance must submit to AZDOHS via audits@azdohs.gov, a statement stating they do not meet the threshold and therefore do not have to complete a single audit or program specific audit. d) Subrecipient will be monitored periodically by AZDOHS, both programmatically and financially, to ensure that the project goals, objectives, performance requirements, timelines, milestone completion, budgets, and other related program criteria are being met. Monitoring will be accomplished through a combination of office-based reviews and on-site monitoring visits. Monitoring can involve aspects of the work involved under this Agreement including but not limited to the review and analysis of financial, programmatic, equipment, performance, and administrative issues relative to each program and will identify areas where technical assistance and other support may be needed. Subrecipient shall participate in and cooperate with all such monitoring by AZDOHS, and shall provide access to all personnel, documents, and other records as may be requested from time to time by AZDOHS. Subrecipient also shall comply with all requests of AZDOHS that AZDOHS deems necessary to assure the parties’ compliance with their obligations under this Agreement. VII. APPLICABLE REGULATIONS The Subrecipient must comply with the applicable Notice of Funding Opportunity (NOFO), Office of Management and Budget Code of Federal Regulations (CFR) 2 CFR 200: Uniform Guidance. AMENDED Regular Council Meeting 01/19/2021 Page 40 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 3 The NOFO for this program is hereby incorporated into your award agreement by reference. By accepting this award, the Subrecipient agrees that all allocation and use of funds under this grant will be in accordance with the requirements contained in the NOFO. Davis Bacon Act HSGP Program subrecipients using funds for construction projects must comply with the Davis- Bacon Act (40 U.S.C. 3141 et seq.). Subrecipients must obtain written approval from AZDOHS prior to use of any HSGP funds for construction or renovation. Subrecipients must ensure that their contractors or subcontractors for construction projects pay workers no less than the prevailing wages for laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the state in which the work is to be performed. Additional information regarding compliance with the Davis-Bacon Act, including Department of Labor (DOL) wage determinations, is available from the following website http://www.dol.gov/compliance/laws/comp-dbra.htm. Insurance Coverage The Subrecipient affirms the organization maintain insurance coverage as described in 2 CFR 200.310. The non-Federal (Subrecipient) entity must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved with Federal funds as provided to property owned by the non-Federal entity. Federally-owned property need not be insured unless required by the terms and conditions of the Federal award. National Incident Management System (NIMS) The Subrecipient agrees to remain in compliance with National Incident Management System (NIMS) implementation initiatives as outlined in the applicable NOFO. Environmental Planning and Historic Preservation The Subrecipient shall comply with Federal, State and Local environmental and historical preservation (EHP) regulations, laws and Executive Orders as applicable. Subrecipients proposing projects that have the potential to impact the environment, including but not limited to construction of communication towers, modification or renovation of existing buildings, structures and facilities, or new construction including replacement of facilities, must participate in the Department of Homeland Security (DHS)/Federal Emergency Management Agency (FEMA) EHP review process. The EHP review process involves the submission of a detailed project description that explains the goals and objectives of the proposed project along with supporting documentation so that DHS/FEMA may determine whether the proposed project has the potential to impact environmental resources and/or historic properties. In some cases, DHS/FEMA is also required to consult with other regulatory agencies and the public in order to complete the review process. The EHP review process must be completed before funds are released to carry out the proposed project. If ground disturbing activities occur during project implementation, the Subrecipient must ensure monitoring of ground disturbance and if any archeological resources are discovered, the Subrecipient shall immediately cease construction in that area and notify FEMA, AZDOHS and the appropriate State Historic Preservation Office. DHS/FEMA will not fund projects that are initiated without the required EHP review. Additionally, all recipients are required to comply with DHS/FEMA EHP Policy Guidance. This EHP Policy Guidance can be found in FP 108-023-1, Environmental Planning and Historic Preservation Policy Guidance. In addition to the above mentioned guidance documents, the following provisions must be adhered to: AMENDED Regular Council Meeting 01/19/2021 Page 41 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 4 Consultants/Trainers/Training Providers Invoices for consultants/trainers/training providers must include at a minimum: a description of services; dates of services; number of hours for services performed; rate charged for services; and, the total cost of services performed. Consultant/trainer/training provider costs must be within the prevailing rates; must be obtained under consistent treatment with the procurement policies of the Subrecipient and 2 CFR 200; and shall not exceed the maximum of $450 per day per consultant/trainer/training provider unless prior written approval is granted by the AZDOHS. This includes internal personnel hired on backfill/overtime to deliver training. In addition to the per day $450 maximum amount, the consultant/trainer/training provider may be reimbursed reasonable travel, lodging, meal and incidental expenses not to exceed the State rate. Itemized receipts are required for lodging and travel reimbursements. The Subrecipient will not be reimbursed costs other than travel, lodging, meals and incidentals on travel days for consultants/trainers/training providers. See Travel Costs below. Contractors/Subcontractors The Subrecipient may enter into written subcontract(s) for performance of certain of its functions under the Agreement in accordance with terms established in 2 CFR 200 and the applicable NOFO. The Subrecipient agrees and understands that no subcontract that the Subrecipient enters into with respect to performance under this Agreement shall in any way relieve the Subrecipient of any responsibilities for performance of its duties. The Subrecipient shall give the AZDOHS immediate notice in writing by certified mail of any action or suit filed and prompt notice of any claim made against the Subrecipient by any subcontractor or vendor which, in the opinion of the Subrecipient, may result in litigation related in any way to this Agreement. Travel Costs All grant funds expended for travel, lodging, meals and incidentals must be consistent with the subrecipient’s policies and procedures, as well as the State of Arizona Accounting Manual (SAAM). These policies must be applied uniformly to both federally financed and other activities of the agency. AZDOHS will reimburse at the most restrictive allowability and rate. At no time will the Subrecipient’s reimbursement(s) exceed the State rate established by the Arizona Department of Administration, General Accounting Office Travel Policies: https://gao.az.gov. Procurement The Subrecipient shall comply with its own procurement rules/policies and must also comply with Federal procurement rules/policies and all Arizona state procurement code provisions and rules. The Federal intent is that all Homeland Security Funds are awarded competitively. The Subrecipient shall not enter into a Noncompetitive (Sole or Single Source) Procurement Agreement, unless prior written approval is granted by the AZDOHS via the Noncompetitive Procurement Request Form. The Noncompetitive Procurement Request Form and instructions are located on the AZDOHS website: www.azdohs.gov. Training and Exercise The Subrecipient agrees that any grant funds used for training and exercise must be in compliance with the applicable NOFO. All training must be included and approved in your application and/or approved through the DEMA/AZDOHS training request process prior to execution of training contract(s). All exercises must utilize and comply with the FEMA Homeland Security Exercise and Evaluation Program (HSEEP) guidance for exercise design, development, conduct, evaluation and reporting. The Subrecipient agrees to: a) Submit an exercise summary and attendance/sign-in roster to AZDOHS with all related reimbursement requests. b) Email the After Action Report/Improvement Plan (AAR/IP) to the local County Emergency Manager, the AZDOHS Strategic Planner, and the Arizona Department of Military Affairs AMENDED Regular Council Meeting 01/19/2021 Page 42 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 5 (DEMA) Exercise Branch within 90 days of completion of an exercise or as prescribed by the most current HSEEP guidance. Communications Equipment All Land Mobile Radio equipment purchased with Homeland Security funds is required to comply with the following: a) P25 standards; b) SAFECOM Guidance; c) Land Mobile Radio Minimum Equipment Standards as approved by the Statewide Interoperability Executive Committee (SIEC); and d) Arizona's State Interoperable Priority Programming Guide also as approved by the SIEC. Nonsupplanting Agreement The Subrecipient shall not use funds received under this Agreement to supplant Federal, State, Tribal or Local funds or other resources that would otherwise have been made available for this program/project. The Subrecipient may be required to demonstrate and document that a reduction in non-Federal resources occurred for reasons other than the receipt of expected receipt of Federal funds. Further, if a position created by a grant is filled from within, the vacancy created by this action must be filled within thirty (30) days. If the vacancy is not filled within thirty (30) days, the Subrecipient must stop charging the grant for the new position. Upon filling the vacancy, the Subrecipient may resume charging for the grant position. E-Verify Compliance requirements for A.R.S. section 41-4401—immigration laws and E-Verify requirement. a) The Subrecipient warrants its compliance with all State and Federal immigration laws and regulations relating to its employees and to employees of any contractor or subcontractor retained through Subrecipient to provide goods or services related to this Agreement, including but not limited to A.R.S. section 23-214, Subsection A (that subsection reads: “After December 31, 2007, every employer, after hiring an employee, shall verify the employment eligibility of the employee through the E-Verify program”). b) A breach of a warranty by Subrecipient regarding compliance with immigration laws and regulations shall be deemed a material breach of this Agreement and the Subrecipient may be subject to penalties to be determined at AZDOHS’s discretion, up to and including termination of this Agreement. c) The AZDOHS retains the legal right to inspect the papers of any Subrecipient employee who works on the Agreement, and to those of any employee of any contractor or subcontractor retained through Subrecipient to provide goods or services related to this Agreement, to ensure that the Subrecipient is complying with the warranty under paragraph (a) above. Property Control Effective control and accountability must be maintained by Subrecipient for all property/equipment purchased under this Agreement. The Subrecipient must adequately safeguard all such property/equipment and must assure that it is used for authorized purposes as described in the NOFO, grant application, and Code of Federal Regulations 2 CFR 200. The Subrecipient shall exercise caution in the use, maintenance, protection and preservation of such property. a) Property/equipment shall be used by the Subrecipient in the program or project for which it was acquired as long as needed, whether or not the program or project continues to be supported by federal grant funds. Subrecipient is required to maintain and utilize equipment as outlined in 2 CFR 200.313 - Equipment. Any loss, damage, or theft shall be investigated and reported to the AZDOHS. Any equipment lost, damaged or stolen shall be replaced by AMENDED Regular Council Meeting 01/19/2021 Page 43 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 6 the Subrecipient at the Subrecipient’s expense and an updated Property Control Form submitted to AZDOHS. b) Nonexpendable Property/Equipment and Capital Assets: a. Nonexpendable Property/Equipment is property which has a continuing use, is not consumed in use, is of a durable nature with an expected service life of one or more years, has an acquisition cost of $5,000 (Five Thousand Dollars) or more, and does not become a fixture or lose its identity as a component of other equipment or systems. b. A Capital Asset is any personal or real property, or fixture that has an acquisition cost of $5,000 (Five Thousand Dollars) or more per unit and a useful life of more than one year. c) A Property Control Form (if applicable) shall be maintained for the entire scope of the program or project for which property was acquired through the end of its useful life and/or disposition. All Nonexpendable Property and Capital Assets must be included on the Property Control Form. The Subrecipient shall provide AZDOHS a copy of the Property Control Form with the final quarterly programmatic report. The Property Control Form can be located at www.azdohs.gov. The Subrecipient agrees to be subject to equipment monitoring and auditing by state or federal authorized representatives to verify information. d) A physical inventory of Nonexpendable Property/Equipment and Capital Assets must be taken and the results reconciled with the Property Control Form at least once every two years. a. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft shall be investigated and reported to AZDOHS. b. Adequate maintenance procedures must be developed to keep the property in good condition. e) When Nonexpendable Property/Equipment and/or Capital Assets are no longer in operational use by the Subrecipient, an updated Property Control Form must be submitted to AZDOHS immediately. The disposition of equipment shall be in compliance with the AZDOHS Disposition Guidance and 2 CFR 200. If the Subrecipient is requesting disposition of Capital Assets for reasons other than theft, destruction, or loss, the Subrecipient must submit an Equipment Disposition Request Form and receive approval prior to the disposition. The Equipment Disposition Request Form can be found at www.azdohs.gov. f) Equipment Record Retention a. 2 CFR 200.333 (c): Records for real property and equipment acquired with Federal funds must be retained for three (3) years after final disposition. Allowable Costs The allowability of costs incurred under this agreement shall be determined in accordance with the general principles of allowability and standards for selected cost items as set forth in the applicable Code of Federal Regulations, authorized equipment lists, and guidance documents referenced above. a) The Subrecipient agrees that grant funds for any indirect costs that may be incurred are in accordance with 2 CFR 200 and the applicable NOFO. Indirect costs must be applied for and approved in writing by the AZDOHS prior to expenditure and reimbursement. AMENDED Regular Council Meeting 01/19/2021 Page 44 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 7 b) The Subrecipeint agrees that grant funds are not to be expended for any Management and Administrative (M&A) costs that may be incurred by the Subrecipient for administering these funds unless explicitly applied for and approved in writing by the AZDOHS and shall be in compliance with the applicable NOFO. VIII. DEBARMENT CERTIFICATION The Subrecipient agrees to comply with the Federal Debarment and Suspension regulations as outlined in the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion – Lower Tier Covered Transactions.” All recipients must comply with Executive Orders 12549 and 12689, and 2 CFR 200.213 which provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the Federal government. IX. FUNDS MANAGEMENT The Subrecipient must maintain funds received under this Agreement in separate ledger accounts and cannot mix these funds with funds from other sources. The Subrecipient must manage funds according to applicable Federal regulations for administrative requirements, costs principles, and audits. The Subrecipient must maintain adequate business systems to comply with Federal requirements. The business systems that must be maintained are: • Financial Management • Procurement • Personnel • Property • Travel A system is adequate if it is 1) written; 2) consistently followed – it applies in all similar circumstances; and 3) consistently applied – it applies to all sources of funds. X. REPORTING REQUIREMENTS Regular reports by the Subrecipient shall include: a) Programmatic Reports The Subrecipient shall provide quarterly programmatic reports to the AZDOHS within fifteen (15) calendar days of the last day of the quarter in which services are provided. The Subrecipient shall use the form provided by the AZDOHS to submit quarterly programmatic reports. The report shall contain such information as deemed necessary by the AZDOHS. The Subrecipient shall use the Quarterly Programmatic Report form, which is posted at www.azdohs.gov. Quarterly programmatic reports shall be submitted to the AZDOHS until the entire scope of the project is completed. If the scope of the project has been fully completed and implemented, and there will be no further updates, then the quarterly programmatic report for the quarter in which the project was completed will be sufficient as the final report. The report should be marked as final and should be inclusive of all necessary and pertinent information regarding the project as deemed necessary by the AZDOHS. b) Subrecipients must provide substantial/detailed information as to the status of completion of the milestones included in the application. Failure to adequately provide complete information will result in the Quarterly Report being rejected and resubmission will be required. c) Quarterly Programmatic Reports are due: January 15 (for the period from October 1– December 31) April 15 (for the period from January 1 – March 31) July 15 (for the period from April 1 – June 30) AMENDED Regular Council Meeting 01/19/2021 Page 45 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 8 October 15 (for the period from July 1 – September 30) d) Final Quarterly Report: The final quarterly report is due no more than fifteen (15) calendar days after the end of the performance period. Subrecipient may submit a final quarterly report prior to the end of the performance period if the scope of the project has been fully completed and implemented. The Property Control Form is due with the final quarterly report (if applicable). e) Property Control Form – if applicable: The Subrecipient shall provide the AZDOHS a copy of the Property Control Form with the final quarterly report. a. In case of equipment disposition: The Property Control Form shall be updated and a copy provided to AZDOHS no more than forty-five (45) calendar days after equipment disposition, if applicable. The disposition of equipment must be in compliance with the AZDOHS Disposition Guidance and 2 CFR 200.313. f) Financial Reimbursements The Subrecipient shall provide AZDOHS with requests for reimbursement as frequently as monthly but not less than quarterly. Reimbursement requests are only required when expenses have been incurred. Reimbursement requests shall be submitted with the Reimbursement Form provided by the AZDOHS staff. The Subrecipient shall submit a final reimbursement request for expenses received and invoiced prior to the end of the period of performance. The final reimbursement must be received by AZDOHS no more than forty-five (45) calendar days after the end of the period of performance. Requests for reimbursement received by AZDOHS later than forty-five (45) calendar days after the end of the period of performance will not be paid. The final reimbursement request as submitted shall be marked as final. Subrecipients will only be reimbursed for expenses that have been obligated, expended and received within the authorized Period of Performance as identified in Section II of this Agreement. Subrecipients are not authorized to obligate or expend funds prior to the start date of the Period of Performance. Any expenses obligated or expended prior to the Period of Performance start date will be deemed unallowable and will not be reimbursed. Any expenses/services that occur beyond the Period of Performance (i.e. cell phone service) will be deemed unallowable and will not be reimbursed. The AZDOHS requires that all requests for reimbursement are submitted via United States Postal Service, FedEx, UPS, etc. or in person. Reimbursement requests submitted via fax or by any electronic means will not be accepted. The AZDOHS reserves the right to request and/or require any supporting documentation and/or information it feels necessary in order to process reimbursements. Subrecipient shall promptly provide AZDOHS with all such documents and/or information. All reports shall be submitted to the contact person as described in Paragraph XXXVII, NOTICES, of this Agreement. XI. ASSIGNMENT AND DELEGATION The Subrecipient may not assign any rights hereunder without the express, prior written consent of both parties. AMENDED Regular Council Meeting 01/19/2021 Page 46 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 9 XII. AMENDMENTS Any change in this Agreement including but not limited to the Description of Services and budget described herein, whether by modification or supplementation, must be accomplished by a formal Agreement amendment signed and approved by and between the duly authorized representative of the Subrecipient and the AZDOHS. In the event of any new legislation, laws, ordinances, or rules affecting this Agreement, the parties agree that the terms of this Agreement shall automatically incorporate the terms of such new legislation, laws, ordinances, or rules. Any such amendment shall specify: 1) an effective date; 2) any increases or decreases in the amount of the Subrecipient’s compensation, if applicable; 3) be titled as an “Amendment,” and 4) be signed by the parties identified in the preceding paragraph. The Subrecipient expressly and explicitly understands and agrees that no other method of communication, including any other document, correspondence, act, or oral communication by or from any person, shall be used or construed as an amendment or modification or supplementation to this Agreement. XIII. US DEPARTMENT OF HOMELAND SECURITY AGREEMENT ARTICLES Article A - Disposition of Equipment Acquired Under the Federal Award When original or replacement equipment acquired in conjunction with this Agreement by the Subrecipient is no longer needed for the original project or program or for other activities currently or previously supported by DHS/FEMA, the Subrecipient must request instructions from DHS/FEMA via AZDOHS by submitting an Equipment Disposition Request Form in order to make proper disposition of the equipment pursuant to 2 CFR section 200.313. Article B – Acceptance of Post Award Changes In the event FEMA determines that changes are necessary to this Agreement after it has been entered into, including changes to period of performance or terms and conditions, the Subrecipient will be notified of the changes in writing. Once notification has been made, any subsequent request for funds by Subrecipient will constitute Subrecipient’s acceptance of the changes to this Agreement and the incorporation of such changes into this Agreement. Article C - Procurement of Recovered Materials The Subrecipient hereby acknowledges and agrees that it must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, and that the requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition. Article D - Whistleblower Protection Act The Subrecipient hereby acknowledges and agrees that it must comply with the statutory requirements for whistleblower protections (if applicable) at 10 U.S.C section 2409, 41 U.S.C. 4712, and 10 U.S.C. section 2324, 41 U.S.C. section 4304 and 4310. Article E - Use of DHS Seal, Logo and Flags Subrecipient hereby acknowledges that it must obtain DHS’s approval prior to using the DHS seal(s), logos, crests or reproductions of flags or likenesses of DHS agency officials, including use of the United States Coast Guard seal, logo, crests or reproductions of flags or likenesses of Coast Guard officials. Article F - USA Patriot Act of 2001 Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act), which amends 18 U.S.C. section 175–175c. AMENDED Regular Council Meeting 01/19/2021 Page 47 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 10 Article G – Universal Identifier and System of Award Management (SAM) Subrecipient hereby acknowledges and agrees that is must comply with the requirements set forth in the government-wide financial assistance award term regarding the System for Award Management and Universal Identifier Requirements located at 2 C.F.R. Part 25, Appendix A. Article H - Reporting of Matters Related to Recipient Integrity and Performance If the total value of your currently active grants, cooperative agreements, and procurement contracts from all Federal assistance offices exceeds $10,000,000 for any period of time during the period of performance of this Federal award, you must comply with the requirements set forth in the government-wide Award Term and Condition for Recipient Integrity and, Performance Matters located at 2 C.F.R. Part 200 Appendix XII, the full text of which is incorporated here by reference in the terms and conditions of your award. Article I - Rehabilitation Act of 1973 The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. section 794, as amended, which provides that no otherwise qualified handicapped individual in the United States will, solely by reason of the handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. These requirements pertain to the provision of benefits or services as well as to employment. Article J - Trafficking Victims Protection Act of 2000 Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the government-wide award term which implements Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. section 7104). The award term is located at 2 C.F.R. Part 175, the full text of which is incorporated here by reference. Article K - Terrorist Financing The Subrecipient hereby acknowledges and agrees that it must comply with U.S. Executive Order 13224 and U.S. law that prohibit transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. It is the legal responsibility of the Subrecipient to ensure compliance with the Order and laws. Article L - SAFECOM The Subrecipient hereby acknowledges and agrees that recipients who receive awards made under programs that provide emergency communication equipment and its related activities must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications. Article M - Reporting Subawards and Executive Compensation All Subrecipients are required to comply with the requirements set forth in the government-wide Award Term on Reporting Subawards and Executive Compensation located at 2 CFR Part 170, Appendix A, the full text of which is incorporated here by reference in the terms and conditions of your award. Article N – Department and Suspension The Subrecipient hereby acknowledges and agrees that it is subject to the non-procurement debarment and suspension regulations implementing Executive Orders (E.O.) 12549 and 12689, and 2 C.F.R. Part 180. These regulations restrict Federal financial assistance awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. AMENDED Regular Council Meeting 01/19/2021 Page 48 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 11 Article O - Copyright The Subrecipient hereby acknowledges and agrees that it must affix the applicable copyright notices of 17 U.S.C. sections 401 or 402 and an acknowledgement of Government sponsorship (including award number) to any work first produced under Federal financial assistance awards. Article P - Civil Rights Act of 1964 - Title VI The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. section 2000d et seq.), codified at 6 C.F.R. Part 21 and 44 C.F.R. Part 7, which provides that no person in the United States will, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Article Q - Best Practices for Collection and Use of Personally Identifiable Information (PII) The Subrecipient hereby acknowledges and agrees that if they collect PII they are required to have a publically-available privacy policy that describes standards on the usage and maintenance of PII they collect. DHS defines personally identifiable information (PII) as any information that permits the identity of an individual to be directly or indirectly inferred, including any information that is linked or linkable to that individual. Recipients may also find the DHS Privacy Impact Assessments: Privacy Guidance and Privacy template as useful resources respectively. Article R - Americans with Disabilities Act of 1990 The Subrecipient hereby acknowledges and agrees that it shall comply with all State and Federal equal opportunity and non-discrimination requirements and conditions of employment, including but not limited to Arizona Executive Order 2009-9 and the requirements of Titles I, II, and III of the Americans with Disabilities Act, which prohibits recipients from discriminating on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. sections 12101–12213). Article S - Age Discrimination Act of 1975 The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of the Age Discrimination Act of 1975 (42 U.S.C. section 6101 et seq.), which prohibits discrimination on the basis of age in any program or activity receiving Federal financial assistance. Article T - Activities Conducted Abroad The Subrecipient hereby acknowledges and agrees that it must ensure that project activities carried on outside the United States are coordinated as necessary with appropriate government authorities and that appropriate licenses, permits, or approvals are obtained. Article U - Acknowledgement of Federal Funding from DHS The Subrecipient hereby acknowledges and agrees that it must acknowledge its use of federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with Federal funds. Article V - DHS Specific Acknowledgements and Assurances Subrecipient hereby acknowledges and agrees—and agrees to require any contractors, successors, transferees, and assignees acknowledge and agree—to comply with applicable provisions governing DHS access to records, accounts, documents, information, facilities, and staff. 1. Subrecipient hereby agrees to cooperate with any compliance review or complaint investigation conducted by DHS. AMENDED Regular Council Meeting 01/19/2021 Page 49 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 12 2. Subrecipient hereby agrees to give DHS access to and the right to examine and copy records, accounts, and other documents and sources of information related to the grant and permit access to facilities, personnel, and other individuals and information as may be necessary, as required by DHS regulations and other applicable laws or program guidance. 3. Subrecipient hereby agrees to submit timely, complete, and accurate reports to the appropriate DHS officials and maintain appropriate backup documentation to support the reports. 4. Subrecipient hereby agrees to comply with all other special reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance. 5. If, during the past three years, the Subrecipient has been accused of discrimination on the grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status, the Subrecipient shall provide a list of all such proceedings, pending or completed, including outcome and copies of settlement agreements to the DHS financial assistance office and the DHS Office of Civil Rights and Civil Liberties (CRCL) by email at crcl@hq.dhs.gov or by mail at U.S. Department of Homeland Security Office of Civil Rights and Civil Liberties Building 410, Mail Stop #0190 Washington, D.C. 20528. 6. In the event any court or administrative agency makes a finding of discrimination by Subrecipient (or any of its contractors or subcontractors involved in providing goods or services under this Agreement) on grounds of race, color, national origin (including limited English proficiency), sex, age, disability, religion, or familial status against the recipient, or the recipient settles a case or matter alleging such discrimination, Subrecipient must forward a copy of the complaint and findings to the DHS financial assistance office and the CRCL office by email or mail at the addresses listed above. Subrecipient hereby acknowledges and agrees that the United States has the right to seek judicial enforcement of these obligations. Article W - Assurances, Administrative Requirements and Cost Principles, and Audit Requirements The Subrecipient hereby acknowledges and agrees that it must complete OMB Standard Form 424B Assurances – Non-Construction Programs, or OMB Standard Form 424D Assurances – Construction Programs as applicable. Certain assurances in this document may not be applicable to this Agreement, and the awarding agency may require applicants to certify additional assurances. Please contact the program awarding office if you have any questions. DHS financial assistance recipients are required to follow the applicable provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards located at Title 2, Code of Federal Regulations, Part 200, and adopted by DHS at 2 C.F.R. Part 3002. Article X - Patents and Intellectual Property Rights Unless otherwise provided by law, the Subrecipient hereby acknowledges and agrees that it is subject to the Bayh-Dole Act, Pub. L. No. 96-517, as amended, and codified in 35 U.S.C. section 200 et seq., and that it is subject to the specific requirements governing the development, reporting, and disposition of rights to inventions and patents resulting from financial assistance awards are in 37 CFR Part 401 and the standard patent rights clause in 37 CFR section 401.14. AMENDED Regular Council Meeting 01/19/2021 Page 50 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 13 Article Y – Notice of Funding Opportunity Requirements All of the instructions, guidance, limitations, and other conditions set forth in the Notice of Funding Opportunity (NOFO) for this program are incorporated here by reference in the award terms and conditions. The Subrecipient hereby acknowledges and agrees that it must comply with any such requirements set forth in the program NOFO. Article Z – Non-supplanting Requirement The Subrecipient receiving Federal financial assistance awards made under programs that prohibit supplanting by law must ensure that Federal funds do not replace (supplant) funds that have been budgeted for the same purpose through non-Federal sources. Article AA – Nondiscrimination in Matters Pertaining to Faith-Based Organizations It is DHS policy to ensure the equal treatment of faith-based organizations in social service programs administered or supported by DHS or its component agencies, enabling those organizations to participate in providing important social services to beneficiaries. All Subrecipients must comply with the equal treatment policies and requirements contained in 6 CFR Part 19 and other applicable statutes, regulations, and guidance governing the participations of faith-based organizations in individual DHS programs. Article AB – National Environmental Policy Act All Subrecipients must comply with the requirements of the National Environmental Policy Act (NEPA) 42 U.S.C. 4321 et seq., and the Council on Environmental Quality (CEQ) Regulations (40 C.F.R. 1500-1508) for Implementing the Procedural Provisions of NEPA, which requires Subrecipients to use all practicable means within their authority, and consistent with other essential considerations of national policy, to create and maintain conditions under which people and nature can exist in productive harmony and fulfill the social, economic, and other needs of present and future generations of Americans. Article AC - Lobbying Prohibitions The Subrecipient hereby acknowledges and agrees that it must comply with 31 U.S.C. section 1352, and acknowledges and agrees that none of the funds provided under this Agreement may be used to pay any person to influence, or attempt to influence an officer or employee of any agency (whether State or Federal), a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with any Federal action related to a Federal award or contract, including any extension, continuation, renewal, amendment, or modification. Article AD - Limited English Proficiency (Civil Rights Act of 1964, Title VI) The Subrecipient hereby acknowledges and agrees that it must comply with the Title VI of the Civil Rights Act of 1964 (Title VI) prohibition against discrimination on the basis of national origin, which requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with Limited English Proficiency (LEP) to their programs and services. For additional assistance and information regarding language access obligations, please refer to the DHS Recipient Guidance https://www.dhs.gov/guidance-published-help- department-supported-organizations-provide-meaningful-access-people-limited and additional resources on http://www.lep.gov. Article AE - Hotel and Motel Fire Safety Act of 1990 In accordance with Section 6 of the Hotel and Motel Fire Safety Act of 1990, 15 U.S.C. section 2225(a), the Subrecipient hereby acknowledges and agrees that it must ensure that all conference, meeting, convention, or training space funded in whole or in part with Federal funds complies with the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, 15 U.S.C. section 2225. AMENDED Regular Council Meeting 01/19/2021 Page 51 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 14 Article AF - Fly America Act of 1974 The Subrecipient hereby acknowledges and agrees that it must comply with the following Preference for U.S. Flag Air Carriers: Travel supported by U.S. Government funds requirement, which states preference for the use of U.S. flag air carriers (air carriers holding certificates under 49 U.S.C. section 41102) for international air transportation of people and property to the extent that such service is available, in accordance with the International Air Transportation Fair Competitive Practices Act of 1974 (49 U.S.C. section 40118) and the interpretative guidelines issued by the Comptroller General of the United States in the March 31, 1981, amendment to Comptroller General Decision B138942. Article AG - Federal Leadership on Reducing Text Messaging while Driving All Subrecipients are encouraged to adopt and enforce policies that ban text messaging while driving as described in Executive Order 13513, including conducting initiatives described in Section 3(a) of the Order when on official Government business or when performing any work for or on behalf of the federal government. Article AH - Federal Debt Status The Subrecipient hereby acknowledges and agrees that it is required to be non-delinquent in their repayment of any Federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A-129. Article AI - False Claims Act and Program Fraud Civil Remedies The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of The False Claims Act (31 U.S.C. Section 3729) which prohibits the submission of false or fraudulent claims for payment to the Federal government. See also 38 U.S.C. sections 3801-3812 which details the administrative remedies for false claims and statements made. Article AJ - Energy Policy and Conservation Act The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of The Energy Policy and Conservation Act (42 U.S.C. Chapter 77) which contain policies relating to energy efficiency that are defined in the state energy conservation plan issued in compliance with this Act. Article AK - Education Amendments of 1972 (Equal Opportunity in Education Act) – Title IX The Subrecipient hereby acknowledges and agrees that it must comply with the requirements of Title IX of the Education Amendments of 1972 (20 U.S.C. section 1681 et seq.), which provides that no person in the United States will, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any educational program or activity receiving Federal financial assistance. These regulations are codified at 6 CFR Part 17 and 44 CFR Part 19. Article AL - Duplication of Benefits Any cost allocable to a particular Federal award, provided for in 2 CFR Part 200, Subpart E may not be charged to other Federal awards to overcome fund deficiencies, to avoid restrictions imposed by Federal statutes, regulations, or terms and conditions of the Federal awards, or for other reasons. However, this prohibition would not preclude a Subrecipient form shifting costs that are allowable under two or more Federal awards in accordance with existing Federal statutes, regulations, or the terms and conditions of the Federal award. Article AM - Drug-Free Workplace Regulations The Subrecipient hereby acknowledges and agrees that it must comply drug-free workplace requirements in Subpart B (or Subpart C, if the Subrecipient is an individual) of 2 C.F.R. part 30001, which adopts the Government-wide implementation (2 C.F.R. part 182) of sec. 5152-5158 of the Drug-Free Workplace Act of 1988 (Pub. L. 100-690, Title V, Subtitle D; 41 U.S.C. 8101). AMENDED Regular Council Meeting 01/19/2021 Page 52 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 15 Article AN - Civil Rights Act of 1968 The Subrecipient hereby acknowledges and agrees that it must comply with Title VIII of the Civil Rights Act of 1968, which prohibits recipients from discriminating in the sale, rental, financing, and advertising of dwellings, or in the provision of services in connection therewith, on the basis of race, color, national origin, religion, disability, familial status, and sex (42 U.S.C. section 3601 et seq.), as implemented by the Department of Housing and Urban Development at 24 CFR Part 100. The prohibition on disability discrimination includes the requirement that new multifamily housing with four or more dwelling units—i.e., the public and common use areas and individual apartment units (all units in buildings with elevators and ground-floor units in buildings without elevators)—be designed and constructed with certain accessible features (see 24 CFR section 100.201). XIV. OFFSHORE PERFORMANCE OF WORK PROHIBITED Due to security and identity protection concerns, all services under this Agreement shall be performed within the borders of the United States. All storage and processing of information shall be performed within the borders of the United States. This provision applies to work performed by the Subrecipient’s contractors and subcontractors at all tiers. XV. AGREEMENT RENEWAL This Agreement shall not bind nor purport to bind the AZDOHS for any contractual commitment in excess of the original Agreement period. XVI. RIGHT TO ASSURANCE If the AZDOHS in good faith has reason to believe that the Subrecipient does not intend to, or is unable to perform or continue performing under this Agreement, the AZDOHS may demand in writing that the Subrecipient give a written assurance of intent to perform. If the Subrecipient fails to provide written assurance within the number of days specified in the demand, the AZDOHS at its option may terminate this Agreement. XVII. CANCELLATION FOR CONFLICT OF INTEREST The AZDOHS may, by written notice to the Subrecipient, immediately cancel this Agreement without penalty or further obligation pursuant to A.R.S. section 38-511 if any person significantly involved in initiating, negotiating, securing, drafting, or creating the Agreement on behalf of the State or its subdivisions (unit of Local Government) is an employee or agent of any other party in any capacity or a consultant to any other party to the Agreement with respect to the subject matter of the Agreement. Such cancellation shall be effective when the parties to the Agreement receive written notice from the AZDOHS, unless the notice specifies a later time. XVIII. THIRD PARTY ANTITRUST VIOLATIONS The Subrecipient hereby assigns to the State of Arizona any claim for overcharges resulting from antitrust violations to the extent that such violations concern materials or services supplied by third parties to Subrecipient toward fulfillment of this Agreement. XIX. AVAILABILITY OF FUNDS Every payment obligation of the AZDOHS under this Agreement is conditioned upon the availability of funds appropriated or allocated for the payment of such obligations under A.R.S. section 35-154. If the funds are not allocated and available for the continuance of this Agreement, the AZDOHS may terminate this Agreement at the end of the period for which funds are available. No liability shall accrue to the AZDOHS in the event this provision is exercised, and the AZDOHS shall not be obligated or liable for any future payments or for any damages as a result of termination under this paragraph, including purchases and/or contracts entered into by the Subrecipient in the execution of this Agreement. AMENDED Regular Council Meeting 01/19/2021 Page 53 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 16 XX. FORCE MAJEURE If either party hereto is delayed or prevented from the performance of any act required in this Agreement by reason of acts of God, strikes, lockouts, labor disputes, civil disorder, or other causes without fault and beyond the control of the party obligated, performance of such act will be excused for the period of the delay. XXI. PARTIAL INVALIDITY Any term or provision of this Agreement that is hereafter declared contrary to any current or future law, order, regulation, or rule, or which is otherwise invalid, shall be deemed stricken from this Agreement without impairing the validity of the remainder of this Agreement. XXII. ARBITRATION In the event of any dispute arising under this Agreement, written notice of the dispute must be provided to the other party within thirty (30) calendar days of the events giving the rise to the dispute. Any claim made by or against the State or any of its political subdivisions (including but not limited to AZDOHS) relating to this Agreement shall be resolved through the administrative claims process. In the event that the parties would otherwise be in court and/or if A.R.S. section 12-1518 applies, the parties shall proceed in arbitration through the American Arbitration Association (“AAA”), with the arbitrator to be selected pursuant to AAA rules and the arbitration to be conducted according to the applicable AAA rules, and with the costs of arbitration (including but not limited to the arbitrator’s fees and costs) to be divided 50/50 between the parties, subject to reallocation between the parties by the arbitrator. In the event that the parties become involved in litigation with each other relating to this Agreement for any reason in any other forum, both parties agree to have any claim(s) resolved in arbitration on the terms set forth in this part XXII. Any arbitration award may be enforced through the Maricopa County Superior Court or the U.S. District Court located in Phoenix, Arizona. XXIII. GOVERNING LAW AND CONTRACT INTERPRETATION a) This Agreement shall be governed and interpreted in accordance with the laws of the State of Arizona. b) This Agreement is intended by the parties as a final and complete expression of their agreement. No course of prior dealings between the parties and no usage of the trade shall supplement or explain any terms in this document. c) Either party’s failure to insist on strict performance of any term or condition of the Agreement shall not be deemed a waiver of that term or condition even if the party accepting or acquiescing in the nonconforming performance knows of the nature of the performance and fails to object. XXIV. ENTIRE AGREEMENT This Agreement constitutes the entire Agreement between the parties hereto pertaining to the subject matter hereof and may not be changed or added to except by a writing signed by all parties hereto in conformity with Paragraph XII, AMENDMENTS. The Subrecipient agrees to comply with any such amendment within ten (10) business days of receipt of a fully executed amendment. All prior and contemporaneous agreements, representations, and understandings of the parties, oral, written, pertaining to the subject matter hereof, are hereby superseded or merged herein. XXV. LICENSING The Subrecipient, unless otherwise exempted by law, shall obtain and maintain all licenses, permits, and authority necessary to perform those acts it is obligated to perform under this Agreement. AMENDED Regular Council Meeting 01/19/2021 Page 54 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 17 XXVI. SECTARIAN REQUESTS Funds disbursed pursuant to this Agreement may not be expended for any sectarian purpose or activity, including sectarian worship or instruction in violation of the United States or Arizona Constitutions. XXVII. ADVERTISING AND PROMOTION OF AGREEMENT The Subrecipient shall not advertise or publish information for commercial benefit concerning this Agreement without the written approval of the AZDOHS. XXVIII. OWNERSHIP OF INFORMATION, PRINTED AND PUBLISHED MATERIAL The AZDOHS reserves the right to review and approve any publications funded or partially funded through this Agreement. All publications funded or partially funded through this Agreement shall recognize the AZDOHS and the U.S. Department of Homeland Security. The U.S. Department of Homeland Security and the AZDOHS shall have full and complete rights to reproduce, duplicate, disclose, perform, and otherwise use all materials prepared under this Agreement. The Subrecipient agrees that any report, printed matter, or publication (written, visual, or sound, but excluding press releases, newsletters, and issue analyses) issued by the Subrecipient describing programs or projects funded in whole or in part with Federal funds shall contain the following statement: "This document was prepared under a grant from the U.S. Department of Homeland Security. Points of view or opinions expressed in this document are those of the authors and do not necessarily represent the official position or policies of the U.S. Department of Homeland Security." The Subrecipient also agrees that one copy of any such publication, report, printed matter, or publication shall be submitted to the AZDOHS to be placed on file and distributed as appropriate to other potential subrecipients or interested parties. The AZDOHS may waive the requirement for submission of any specific publication upon submission of a request providing justification from the Subrecipient. The AZDOHS and the Subrecipient recognize that research resulting from this Agreement has the potential to become public information. However, prior to the termination of this Agreement, the Subrecipient agrees that no research-based data resulting from this Agreement shall be published or otherwise distributed in any form without express written permission from the AZDOHS and possibly the U.S. Department of Homeland Security. It is also agreed that any report or printed matter completed as a part of this agreement is a work for hire and shall not be copyrighted by the Subrecipient. XXIX. CLOSED-CAPTIONING OF PUBLIC SERVICE ANNOUNCEMENTS Any television public service announcement that is produced or funded in whole or in part by the Subrecipient shall include closed captioning of the verbal content of such announcement. XXX. INDEMNIFICATION Each party (as "Indemnitor") agrees to defend, indemnify, and hold harmless the other party (as "Indemnitee") from and against any and all claims, losses, liability, costs, or expenses (including reasonable attorney's fees) (hereinafter collectively referred to as "Claims") arising out of bodily injury of any person (including death) or property damage, but only to the extent that such Claims which result in vicarious/derivative liability to the Indemnitee are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers. The State of Arizona, (AZDOHS) is self-insured per A.R.S. 41-621. AMENDED Regular Council Meeting 01/19/2021 Page 55 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 18 In addition, should Subrecipient utilize a contractor(s) and subcontractor(s), the indemnification clause between Subrecipient and contractor(s) and subcontractor(s) shall include the following: Contractor shall defend, indemnify, and hold harmless the (insert name of other governmental entity) and the State of Arizona, and any jurisdiction or agency issuing any permits for any work arising out of this Agreement, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of the contractor or any of the directors, officers, agents, or employees or subcontractors of such contractor. This indemnity includes any claim or amount arising out of or recovered under the Workers’ Compensation Law or arising out of the failure of such contractor to conform to any federal, state or local law, statute, ordinance, rule, regulation or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by such contractor from and against any and all claims. It is agreed that such contractor will be responsible for primary loss investigation, defense and judgment costs where this indemnification is applicable. Additionally on all applicable insurance policies, contractor and its subcontractors shall name the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as an additional insured and also include a waiver of subrogation in favor of the State. XXXI. TERMINATION a) All parties reserve the right to terminate the Agreement in whole or in part due to the failure of the Subrecipient or AZDOHS to comply with any term or condition of the Agreement, to acquire and maintain all required insurance policies, bonds, licenses, and permits or to make satisfactory progress in performing the Agreement. The staff of either party shall provide a written thirty (30) day advance notice of the termination and the reasons for it. b) If the Subrecipient chooses to terminate the Agreement before the grant deliverables have been met then the AZDOHS reserves the right to collect all reimbursements distributed to the Subrecipient. c) The AZDOHS may, upon termination of this Agreement, procure, on terms and in the manner that it deems appropriate, materials or services to replace those under this Agreement. The Subrecipient shall be liable to the AZDOHS for any excess costs incurred by the AZDOHS in procuring materials or services in substitution for those due from the Subrecipient. XXXII. CONTINUATION OF PERFORMANCE THROUGH TERMINATION The Subrecipient shall continue to perform, in accordance with the requirements of the Agreement, up to the date of termination, as directed in the termination notice. XXXIII. PARAGRAPH HEADINGS The paragraph headings in this Agreement are for convenience of reference only and do not define, limit, enlarge, or otherwise affect the scope, construction, or interpretation of this Agreement or any of its provisions. AMENDED Regular Council Meeting 01/19/2021 Page 56 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 19 XXXIV. COUNTERPARTS This Agreement may be executed in any number of counterparts, copies, or duplicate originals. Each such counterpart, copy, or duplicate original shall be deemed an original, and collectively they shall constitute one agreement. XXXV. AUTHORITY TO EXECUTE THIS AGREEMENT Each individual executing this Agreement on behalf of the Subrecipient represents and warrants that he or she is duly authorized to execute this Agreement. XXXVI. SPECIAL CONDITIONS a) The Subrecipient must comply with the most recent version of the Administrative Requirements, Cost Principles, and Audit requirements. b) The Subrecipient acknowledges that the DHS and the AZDOHS reserve a royalty-free, non- exclusive, and irrevocable license to reproduce, publish, or otherwise use, and authorize others to use, for Federal government purposes: (a) the copyright in any work developed under an award or sub-award; and (2) any rights of copyright to which a subrecipient purchases ownership with Federal support. The Subrecipient shall consult with the AZDOHS regarding the allocation of any patent rights that arise from, or are purchased with, this funding. c) The Subrecipient agrees to cooperate with any assessments, state/national evaluation efforts, or information or data collection requests, including, but not limited to, the provision of any information required for the assessment or evaluation of any activities within this agreement. d) The Subrecipient is prohibited from transferring funds between programs (e.g., State Homeland Security Program, Urban Area Security Initiative, Operation Stonegarden). AMENDED Regular Council Meeting 01/19/2021 Page 57 of 402 18-AZDOHS-OPSG- Any unauthorized changes to this document will result in termination of this award. Version 9/17/2018 Page 20 XXXVII. NOTICES Any and all notices, requests, demands, or communications by either party to this Agreement, pursuant to or in connection with this Agreement shall be in writing, be delivered in person, or shall be sent to the respective parties at the following addresses: Arizona Department of Homeland Security 1700 West Washington Street, Suite 210 Phoenix, AZ 85007 The Subrecipient shall address all programmatic and reimbursement notices relative to this Agreement to the appropriate AZDOHS staff; contact information at www.azdohs.gov. The AZDOHS shall address all notices relative to this Agreement to: Enter Title, First & Last Name Above Enter Agency Name Above Enter Street Address Above Enter City, State, ZIP Above XXXVIII. IN WITNESS WHEREOF The parties hereto agree to execute this Agreement. FOR AND BEHALF OF THE FOR AND BEHALF OF THE Arizona Department of Homeland Security Enter Agency Name Above Authorized Signature Above Gilbert M. Orrantia Director Print Name & Title Above Enter Date Above Date (Complete and mail two original documents to the Arizona Department of Homeland Security.) AMENDED Regular Council Meeting 01/19/2021 Page 58 of 402 State of Arizona Department of Homeland Security Governor Douglas A. Ducey Director Gilbert M. Orrantia December 3,2020 Chief Terry Rozema Marana Police Department 11555 W. Civic Center Drive Marana, AZ 85653 Subject: FFY 2018 Operation Stonegarden Grant Program Award-REALLOCTION Subrecipient Agreement Number: 180421 43 Project Title: OPSG Equipment Dear Chief Rozema: The OPSG BudgeUNarrative Application that your agency submitted to the Arizona Department of Homeland Security (AZDOHS) for consideration under the Operation Stonegarden Grant Program (OPSG) has been awarded. The project titled "OPSG Equipment" has been funded under the Operation Stonegarden Grant Program for $1 17,288- The grant performance period is December 3, 2020 through July 31, 2021. This grant program is part of the U.S. Department of Homeland Security Grant Program and specifically is awarded under CFDA #97 .067 (Catalog of Federal Domestic Assistance). The FFY 2018 federal award date as indicated in the U.S. DHS award package is 9/01/201 8 with a total amount of funding of $25,580,000. The Federal Award ldentification Number is EMW- 201 8-S5-00004-501 . To initiate the award process, the following action items must be completed, signed and returned to AZDOHS. Go to www.azdohs.gov, Grant Programs, Operation Stonegarden Grant Program, Grant Award lnformation: 1. Two Subrecipient Agreements - Download two original OPSG Subrecipient Agreements (NOTE: they are specific to the "Overtime/Mileage" and "Equipment" grants): a. Pima FFY 2018 Reallocation Equipment Subrecipient Agreement 2. OPSG Budget Detail (enclosed) 3. Environmental and Historic Preservation (EHP) required documentation (if applicable, see enclosed EHP Designation Letter). Hard copies of the Subrecipient Agreement will not be mailed to you. These items must be completed and on file at AZDOHS in order for your agency to be eligible for reimbursement. lf all documentation listed in numbers 1 and 2 is not siqned and received by AZDOHS on or before March 31 . 2021 this award is rescinded. All actions associated with this project must be completed, invoiced and received by the end of the period of performance. Reimbursements are limited to approved quantities and funding thresholds. You will not be reimbursed for quantities in excess of what you have been authorized to purchase. AZDOHS reserves the right to request additional documentation at any time. lf you should have any questions, please do not hesitate lo contact your Strategic Planner. Congratulations on your Operation Stonegarden Grant Program award. Sincerely, ldkYt,#r& Gilbert M. Orrantia Director Cc: Sergeant Chriswell Scott Enclosures: OPSG Budget Detail, EHP Designation Letter 1700 West Washington Street Suite 210 Phoenix, Arizona 85007 Office: (602) 542-7013 Fax: (602) 542-1729 www.azdohs.gov AMENDED Regular Council Meeting 01/19/2021 Page 59 of 402 FY 2018 Operation Stonegarden Grant Program-REALLOCATION Budget Detail - Equipment Agency: Marana PD Subrecipient Agreement #: 180421-03 The signatures below verify the submission/approval process. All parties signify that all aspects of this project are allowable, reasonable and justifiable in accordance with published federal grant guidelines. Subrecipient agrees to the funding shown here: EOUIPMENT Project Point of Contact Print Name Signature Date Strategic Planner or Assistant Director Planning & Preparedness Susan Dzbanko Signature This form is to be signed and returned. Print Name Date EQUIPMENT AEL OUANTITY COST/UN!T TOTAL COST TOTAL AWARD Thermal lmaging and/or Light Amplification Optics 030E-02-TILA 4 $3,600 $14,400 LIDAR O3OE-01-XDAR 5 $2,200 $1 1,ooo Portable Radios O6CP-01-PORT 11 $7,790 $85,588 License Plate Reader (subscription renewal/fees)O3OE-01-ALPR 12 $525 $6,300 $117,288 Kristin Taft 12/11/2020 AMENDED Regular Council Meeting 01/19/2021 Page 60 of 402 p *'* State of Arizona Department of Homeland Security Governor Douglas A. Ducey FFY 2018. REALLOCTION Director Gilbert M. Onantia Dear OPSG Stakeholder: The project that your agency submitted to the Arizona Department of Homeland Security (AZDOHS) for consideration under the Operation Stonegarden Grant Program has been awarded. Please be advised, all projects require an Environmental and Historic Preservation review. Your project has been reviewed and it has been determined to have no potential impact to environmental or historic concerns. No further EHP review is required unless you modify the project and it is approved by AZDOHS. lf you need further clarification please contact Michael Stidham at (602) 542-7041 or mstidham@azdohs,qov with AZDOHS for further information regarding the EHP specific requirements for your award. As stated in the subrecipient agreement: The subrecipient shall comply with Federal EHP regulations, laws and Executive Orders as applicable. Subrecipients proposing projects that have the potential to impact the environment, including but not limited to construction of communication towers, modification or renovation of existing buildings, structures and facilities, or new construction including replacement of facilities, must participate in the DHS/FEMA EHP review process. The EHP review process involves the submission of a detailed project description that explains the goals and objectives of the proposed project along with supporting documentation so that DHS/FEMA may determine whether the proposed project has the potential to impact environmental resources and/or historic properties. ln some cases, DHS/FEMA is also required to consult with other regulatory agencies and the public in order to complete the review process. The EHP review process must be completed before funds are released to carry out the proposed project. DHS/FEMA will not fund projects that are initiated without the required EHP review. Additionally, all recipients are required to comply with DHS/FEMA EHP Policy Guidance. This EHP Policy Guidance can be found in FP 108-023-1, Environmental Planning and Historic Preservation Policy Guidance, and FP 108.24.4, Environmental Planning and Historical Preservation Policy. AMENDED Regular Council Meeting 01/19/2021 Page 61 of 402 State of Arizona Department of Homeland Security Govemor Douglas A. Ducey December 3,2O2O Director Gilbert [v1. Orrantia Chief Terry Rozema Marana Police Department 11555 W. Civic Center Drive Marana, AZ 85653 Subject: FFY 2018 Operation Stonegarden Grant Program Award-REALLOCTION Subrecipient Agreement N umber: 1 80421 43 Project Title. OPSG Equipment Dear Chief Rozema The OPSG BudgeUNarrative Application that your agency submitted to the Arizona Department of Homeland Security (AZDOHS) for consideration under the Operation Stonegarden Grant Program (OPSG) has been awarded. The project titled "OPSG Equipment" has been funded under the Operation Stonegarden Grant Program for $117,288. The grant performance period is December 3, 2020 through July 31, 2021. This grant program is part of the U.S. Department of Homeland Security Grant Program and specifically is awarded under CFDA #97.067 (Catalog of Federal Domestlc Assistance). The FFY 2018 federal award date as indicated in the U.S. DHS award package is 9/01/201 8 with a total amount of funding of $25,580,000. The Federal Award ldentification Number is EIVIW- 201 8-SS-00004-S01. To initiate the award process, the following action items must be completed, signed and returned to AZDOHS. Go to www.azdohs.gov, Grant Programs, Operation Stonegarden Grant Program, Grant Award lnformation: 1. Two Subrecipient Agreements - Download two original OPSG Subrecipient Agreements (NOTE: they are specific to the "Overtime/Mileage" and "Equipment" grants): a. Pima FFY 2018 Reallocation Equipment Subrecipient Agreement 2. OPSG Budget Detail (enclosed) 3. Environmental and Historic Preservation (EHP) required documentation (if applicable, see enclosed EHP Designation Letter) Hard copies of the Subrecipient Agreement will not be maited to you. These items must be completed and on file at AZDOHS in order for your agency to be eligible for reimbursement. lf all documentation listed in numbers 1 and 2 is not siqned and received bv AZDOHS on or before March 31 . 2021 this award is rescinded. All actions associated with this project must be completed, invoiced and received by the end of the period of performance. Reimbursements are limited to approved quantities and funding thresholds. You will not be reimbursed for quantities in excess of what you have been authorized lo purchase. AZDOHS reserves the right to request additional documentation at any time. lf you should have any questions, please do not hesitate to contact your Strategic Planner. Congratulations on your Operation Stonegarden Grant Program award. Sincerely, 1d&*p4,#^& Gilbert M. Orrantia Director Cc: Sergeant Chriswell Scott Enclosures: OPSG Budget Detail, EHP Designation Letter 1700 West Washington Street Suite 210 Phoenix, Arizona 85007 Office: (602) 542-7013 Fax. (602) 542-1729 www.azdohs.gov 's ,& AMENDED Regular Council Meeting 01/19/2021 Page 62 of 402    Council-Regular Meeting   C6        Meeting Date:01/19/2021   To:Mayor and Council Submitted For:Keith Brann, Town Engineer From:Dan Grossman, CIP Process Analyst Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Relating to Procurement; ratifying the Town Manager's approval of a change order to the Southern Arizona Paving construction contract for the Avra Valley Road Pavement Reconstruction in the amount of $57,883.27; authorizing the transfer of appropriations, if necessary, for the change order; and authorizing the Town Manager or designee to execute the necessary documents to effectuate the change order (Keith Brann) Discussion: Marana Town Code Section 3-4-7(B)(4) provides that Town Council approval is necessary for change orders that individually or cumulatively exceed $50,000. Section 3-4-8(B) provides that the town manager or designee may approve change orders to public improvement contracts that exceed $50,000 if the town manager reasonably determines that doing so will avoid unnecessary contractor delay claims or costs or public health or safety hazards that would otherwise occur while awaiting Town Council approval. When the Town Manager approves a change order in these circumstances, Town Council ratification of the change order must occur as soon as practicable thereafter.        The budget for fiscal year 2020-2021 was adopted on July 21, 2020. The Avra Valley Road Pavement Reconstruction project was properly included within the Town of Marana’s FY2021 Capital Improvement Plan. The final, revised budget amount for the Avra Valley Road Pavement Reconstruction is $2,659,113.00.           Effective August 6, 2020, the Town and Southern Arizona Paving entered into a construction contract in the amount of $2,196,195.00 for the Avra Valley Road Pavement AMENDED Regular Council Meeting 01/19/2021 Page 63 of 402 Reconstruction.         The Town has processed one previous change order to the Southern Arizona Paving construction contract totaling $50,000 bringing the total current construction contract amount to $2,246,195.00.         To complete this project an additional 1,218 tons of asphalt will be required.          The cost of the additional asphalt is $57,883.27. This additional change order will bring the construction contract to $2,304,078.27.           This change order was necessary to avoid unnecessary contractor delay claims of costs or public health or safety hazards and the amount of this change order, combined with all previous change orders, exceeds $50,000.00; therefore, this change order required immediate approval by the Town Manager. With an active construction contract and contractor in place, the town manager exercised his authority under section 3-4-8(B) of the Town Code to authorize a change order to the contract. This item is on the agenda for the Town Council to ratify the town manager's action. Financial Impact: Fiscal Year:2020 Budgeted Y/N: Yes Amount:$57,883.27 This change order will be funded with transportation funds.  Currently, there is $306,384.00 available within the council approved project budget. No additional funding is required. Staff Recommendation: Staff recommends ratification of the Town Manager's approval of the change order. Suggested Motion: I move to ratify the Town Manager's approval of a change order to the construction contract with Southern Arizona Paving for the Avra Valley Road Pavement Reconstruction in the amount of $57,883.27; and to authorize the transfer of appropriations if necessary for the change order; and to authorize the Town Manager or designee to execute the necessary documents to effectuate the change order. Attachments No file(s) attached. AMENDED Regular Council Meeting 01/19/2021 Page 64 of 402      Council-Regular Meeting   C7        Meeting Date:01/19/2021   To:Mayor and Council From:Cherry L. Lawson, Town Clerk Date:January 19, 2021 Subject:Approval of the Council Regular Meeting Summary Minutes of December 15, 2020 (Cherry L. Lawson) Attachments Regular Council Meeting Summary Minutes, 12/15/2020 AMENDED Regular Council Meeting 01/19/2021 Page 65 of 402 Regular Council Meeting Summary Minutes 12/15/2020 AMENDED DECEMBER 11, 2020 @ 8: 40 a.m. MARANA TOWN COUNCIL REGULAR COUNCIL MEETING 11555 W. Civic Center Drive, Marana, Arizona 85653 Council Chambers, December 15, 2020, at or after 6:00 PM Ed Honea, Mayor Jon Post, Vice Mayor Patti Comerford, Council Member Jackie Craig, Council Member Herb Kai, Council Member John Officer, Council Member Roxanne Ziegler, Council Member SUMMARY MINUTES CALL TO ORDER AND ROLL CALL Mayor Honea called the meeting to order at 6:00 PM and directed the Clerk to call the roll. Mayor Honea, Vice Mayor Post, Council Members: Jackie Craig, Patti Comerford, Roxanne Ziegler (Excused), John Officer, and Herb Kai. PLEDGE OF ALLEGIANCE/INVOCATION/MOMENT OF SILENCE : Led by Mayor Honea. APPROVAL OF AGENDA Council Member Kai moved and Vice Mayor Post second the motion approving the agenda as presented. Motion passes, 6-0. CALL TO THE PUBLIC AMENDED Regular Council Meeting 01/19/2021 Page 66 of 402 Regular Council Meeting Summary Minutes 12/15/2020 Mayor Honea open the meeting to receive public comments and the following individual came forward to address the Council. Julie Prince Marana resident expressed concern with lighting permits in her community, specifically with lighting transmitted into her home by a nearby neighbor. She stated that she had contacted the Town Building Official about her concerns, and is awaiting a reply. PROCLAMATIONS MAYOR AND COUNCIL REPORTS: SUMMARY OF CURRENT EVENTS Council Member Comerford reported on the Christmas Cruise and praised Town staff for pulling the event off. Although there were some complaints by the public, all appreciated it very much. Council Member Officer reported the Christmas Cruise and praised the Interim Town Manager and Town staff for the successful event. Mayor Honea reported that he had not missed a Council Meeting in 10 years and took pride in that he has attended nearly all meeting of the Council. However, he had missed three meetings in a row. He commented on having Co vid-19, receiving treatment for it and later testing negative. He thanked everyone who checked in on him and for all well - wishers. MANAGER’S REPORT: SUMMARY OF CURRENT EVENTS Interim Town Manager Terry Rozema reported on the following: • Vice Mayor Post did an excellent job conducting the meetings while Mayor Honea was out. • Christmas Cruise was a successful event and praised the Communication and Special Event staff, as well as other Town employees who participated in the event as Christmas characters. Council Member Officer was also there handing out treats and greeting the community members. • Council Executive Report that highlights the number of single -family residential permits issued in December (49); last year the Town issued 50 single -family residential housing permits, and look to exceed that amount. • The Town has issued approximately 900 single -family residential housing permits for 2020. Last year, the Town issued 788 single -family residential permits. • Employees were recognized for its number of y ears of service to the Town. Employees with 10 to 25 years were recognized via Zoom —Diane Mangialardi, 25 years, and Lt. Tim Brunenkant, 25 years of service. • Parks & Recreation Master Plan that was presented on December 8 will be presented to the Planning Commission on Wednesday, December 16, for its consideration. It will come back to Council for consideration in February, and AMENDED Regular Council Meeting 01/19/2021 Page 67 of 402 Regular Council Meeting Summary Minutes 12/15/2020 currently posted to the Town’s website for review by the public for 30 days for comment. • Vaccinations for the Coronavirus are currently going out across the country, and have reached Pima County. Vaccines will be administered on Thursday starting with healthcare workers and nursing care facilities as well as those persons who are most vulnerable. There were 11,000 dosages delivered t o Pima County, and another 17,000 to come next week. • Pima County implemented a mandatory curfew, as Town staff has discussed the impacts on the curfew for the Marana community. The Town will refer individuals to Pima County for additional information rela ted to the curfew, and Marana Police will not cite persons for violations of the curfew; however, will educate persons instead. • Covid cases are on the rise within the organization. As of November 22, the Town has had 15 employees to test positive and exper ience symptoms from it. Sixteen employees remain quarantine, as a result, of having symptoms or testing positive. • With the number of Covid cases rising, Town staff has had discussions on returning to a 2A approach with staffing at the beginning of the yea r, if this trends upwardly. • This is our last meeting of the year. Council Meetings will resume in January 2021 with a Study Session on Tuesday, January 12, 2021. PRESENTATIONS P1 Relating to the 2020 Census; presentation of information pertaining to the 2020 Census, including a recap of the efforts completed in Pima County, as well as additional US Census Bureau data and a 2021 look ahead (Heath Vescovi -Chiordi) Assistant to the Town Manager Heath Vescovi-Chiordi and Maria Vianey Valdez- Cardenas from the U.S. Census Bureau presented information pertaining to the 2020 Census, including a recap of the efforts completed in Pima County, as well as additional US Census Bureau data and a 2021 look ahead . (A copy of this presentation is available in the Town Clerk’s Office for review, as well as on the Town’s website at www.maranaaz.gov.) CONSENT AGENDA C1 Resolution No. 2020-130; Relating to Development; approving a preliminary plat for Summerstone, Lots 1 through 150, and Common Areas "A" through "D" and Block 1 located south and west of Coachline Boulevard, north of Twin Peaks Road, and east of Silverbell Road (Brian D. Varney) C2 Resolution No. 2020-131; Relating to Development; approving a preliminary plat for Joplin Estates, Lots 1-185, and Common Areas "A", "B", and "C-1" - "C-9" located east of Interstate 10, approximately a half-mile south of Linda Vista Boulevard (Brian D. Varney) AMENDED Regular Council Meeting 01/19/2021 Page 68 of 402 Regular Council Meeting Summary Minutes 12/15/2020 C3 Relating to Procurement; approving a change order to the contract with Kittelson & Associates Inc., in the amount of $67,777.00 for the Lon Adams Road Reconstruction Project (ST068); authorizing the transfer of appropriations if necessary for the change order; and authorizing the Town Manager or designee to execute the necessary documents to effectuate the change order (Keith Brann) C4 Approval of the Study Session Council Meeting Summary Minutes of December 8, 2020, and the Council Regular Meeting Summary Minutes of December 1, 2020 (Cherry L. Lawson) Council Member Comerford moved and Vice Mayor Post second the motion approving the Consent Agenda as presented. Motion passes, 6 -0. LIQUOR LICENSES BOARDS, COMMISSIONS AND COMMITTEES COUNCIL ACTION A1 PUBLIC HEARING: Ordinance No. 2020.021: Relating to Development; amending Town Code Chapter 17 -5 (Subdivisions), section 17-5-3 (Subdivision requirements) by deleting existing subparagraph B.9 (Recreational area) and replacing it with revised subparagraph B.9 (Recreational area); and adopting the Town of Marana Subdivision Recreational Area Design Manual (Anita McNamara) Resolution No. 2020-132: Relating to Development; declaring revised subparagraph B.9 (Recreational area) of Town Code Chapter 17 -5 (Subdivisions), section 17-5-3 (Subdivision requirements) and the Town of Marana Subdivision Recreational Area Design Manual adopted by Marana Ordinance No. 2020.021 as public records filed with the Town Clerk (Anita McNamara) [6:31 PM Minutes:] Mayor Honea open the public hearing to receive public testimony on this item. Development Services Director Jason Angell presented an overview of Ordinance No. 2020.021Relating to Development; amending Town Code Chapter 17 -5 (Subdivisions), section 17-5-3 (Subdivision requirements) by deleting existing subparagraph B.9 (Recreational area) and replacing it with revised subpa ragraph B.9 (Recreational area); and adopting the Town of Marana Subdivision Recreational Area Design Manual . Staff recommends adoption of the ordinance and resolution presented. Mayor Honea and Council Members thanked Mr. Angell and Town staff for their efforts to bring this item forward. [6:47 PM Minutes:] Mayor Honea closed the public hearing. No comments were received. AMENDED Regular Council Meeting 01/19/2021 Page 69 of 402 Regular Council Meeting Summary Minutes 12/15/2020 Vice Mayor Post moved and Council Member Kai second the motion to adopt Marana Ordinance No. 2020.021, approving amendments to Marana Town Code Title 17 (Land Development) revising Section 17-5-3 (Subdivision requirements), subparagraph B.9 (recreational area) of the Marana Town Code, revising the T own’s subdivision requirements for private and common on -site recreation areas, and adopting the Town of Marana Subdivision Recreational Area Design Manual and Resolution No. 2020 -132, declaring the Town Code amendments and the manual to be public records on file with the Town Clerk. Motion passes unanimously, 6-0. A2 Resolution No. 2020-133: Relating to Real Estate; vacating a portion of that public right-of-way of West Tangerine Road, west of Interstate 10, fronting property owned by Tangerine/I-10 LLC and International Center Tucson LLC/Secundus Tucson LLC (Jane Fairall) Town Attorney Jane Fairall provided an overview of Resolution No. 2020 -133 relating to Real Estate vacating a portion of that public right -of-way of West Tangerine Road, west of Interstate 10, fronting property owned by Tangerine /I -10 LLC and International Center Tucson LLC/Secundus Tucson LLC to abandon a portion of West Tangerine Road west of Interstate 10. Staff recommends approval of the resolution to abandon the described portion of right-of-way. Council Member Comerford moved and Vice Mayor Post second the motion to approve Resolution No. 2020-133, vacating a portion of that public right -of-way of West Tangerine Road, West of Interstate 10. Motion passes, 6-0. A3 Resolution No. 2020-134: Relating to Development; approving and authorizing the Mayor to sign the Fifth Amendment to the Gladden Farms II Development Agreement (Jane Fairall) Ms. Fairall explained the Developer of Gladden Farms II was originally required to begin building the “Public Park Improvements”—two (2) soccer fields and other related community park improvements —no later than December 2020 or before the issuance of the 400th building permit in Gladden Farms II. These obligations are spelled out in the second and third amendments to the Gladden Farms II Development Agreement, entered into between the Town and the Developer in August and October 2018, respectively. The GFII DA fourth Amendment allowed the Town to begin crediting the Developer for Parks Development Impact Fees (Parks DIFs) once the performa nce bond was submitted. As builders apply for permits in Gladden Farms II, credits are given for the full Parks DIF (currently $2,461 per home) until the full cost of the Public Park Improvements has been credited to lots within Gladden Farms II. Parks DI Fs will then begin to be collected on remaining lots in Gladden Farms II unless other creditable construction has been completed by that time. AMENDED Regular Council Meeting 01/19/2021 Page 70 of 402 Regular Council Meeting Summary Minutes 12/15/2020 The Developer is working with the Marana Parks and Recreation Department to finalize the plans for the Public Parks Improvements. A pre -construction meeting was held on November 18, 2020. It is anticipated that construction will begin shortly and last for six to nine months. The proposed fifth amendment to the Gladden Farms II Development Agreement will allow the Developer to replace the performance bond required by the GFII DA 4 th Amendment with other forms of security acceptable to the Town, which may i nclude cash accounts, letters of credit, or performance bonds, in any combination as long as the full amount of the Public Park Improvements construction obligation plus the 15% contingency is secured. She stated draw down on the security would continue to be permitted, as construction progresses. It would not have a financial impact substantively different from the 4the Amendment that approved last December. Staff recommends approval of the Fifth Amendment to the Gladden Farms II Development Agreement. Vice Mayor Post moved and Council Member Kai second the motion to adopt Resolution No. 2020-134, approving and authorizing the Mayor to sign the Fifth Amendment to the Gladden Farms II Develo pment Agreement. Motion passes, 6-0. A4 Resolution No. 2020-135: Relating to Development; approving the Final Plat for Saguaro Bloom "7B", Lots 203 -377, Common Areas "A" (Drainage/Open Space) and “B” (Park), generally located at the southeast corner of the intersection of Lambert Lane and Saguaro Peaks Boulevard; and authorizing the Town Engineer to sign the TEP easement (Justin Currie) Ms. Fairall presented an overview of Resolution No. 2020 -135 approving the Final Plat for Saguaro Bloom “7B”, Lots 203-377, Common Areas “A” (Drainage/Open Space) and “B” (Park), generally located at the southeast corner of the intersection of Lambert Lane and Saguaro Peaks Boulevard; that would authorize the Town Engineer to sign the TEP easement. Baker and Associates Engineering, Inc., submitted an application on behalf of DR Horton, Inc., requesting approval of a fina l plat consisting of 175 lots, and Common Areas “A” and “B” on 41 acres within the Saguaro Bloom development. He reviewed the location, zoning, land use, transportation, Park Requirement and Trail Connectivity, preliminary plat and TEP Easement. Staff reco mmends adoption of Resolution No. 2020-135. Council Member Comerford moved and Vice Mayor Post second the motion approving Resolution No. 2020-135, approving the Final Plat for Saguaro Bloom “7B”, Lots 203 - 377, Common Areas A (Drainage/Open Space and “B” (Park) and authorizing the Town Engineer to sign the TEP Easement. Motion passes, 6-0. A5 Resolution No. 2020-136: Relating to Intergovernmental Relations; adopting a 2021 Town of Marana Legislative Policy Priority Program and authorizing and directing AMENDED Regular Council Meeting 01/19/2021 Page 71 of 402 Regular Council Meeting Summary Minutes 12/15/2020 those authorized to lobby on behalf of the Town of Marana to represent and pursue it (Heath Vescovi-Chiordi) Mr. Vescovi-Chiordi provided an overview of Resolution No. 2020 -136 adopting a 2021 Town of Marana Legislative Policy Priority Program, and authorizing and directing those authorized to lobby on behalf of the Town of Marana to represe nt. He introduced Julie Rees, Principal and Lourdes Peña, Public Affairs Advisor of TriAdvocates Lobbying Firm who provided an overview of Arizona Elections cycle, discussed the anticipated State Legislative Session, the Political Landscape, the State Fiscal Forecast, the CRF Cares Act – AZ Allocations, 2020 Policy Issues Expected to Carryover in 2021, and Policy Issues Expected in 2021. This program captures issues and policy areas of importance to the Town of Marana’s interests, such as state shared revenues, protection of local control, and other Town-related issues. (A copy of the presentation is available on the Town’s website for review, as well as in the Town Clerk’s Office.) Vice Mayor Post moved and Council Member Officer second the motion adopting Resolution No. 2020-136, adopting the 2021 Town of Marana Legislative Policy Priority Program, and authorizing and directing those authorized to lobby on behalf of the Town of Marana to represent and pursue it. Motion passes, 6-0. A6 Resolution No. 2020-137: Relating to Personnel; approving a mid -year Team Performance Pay increase effective as of the pay period starting on January 2, 2021 for eligible Town of Marana employees and approving a corresponding budget capacity transfer from the general fund conting ency line item to each applicable department budget in the Fiscal Year 2020-2021 budget (Curry C. Hale) Human Resource Director Curry Hale provided a presentation overview of Resolution No. 2020-137 that approves a mid-year Team Performance Pay increase effective as of the pay period starting on January 2, 2021 for eligible Town of Marana employees and approves a corresponding budget capacity transfer from the General Fund Contingency line item to each applicable department budget in the Fiscal Year 2020 -2021 budget. (A copy of the presentation is on file in the Town Clerk’s Office, as well as on the Town’s website at www.maranaaz.gov.) Council Member Kai moved and Council Member Officer second the motion to adopt Resolution No. 2020-137, approving the necessary amount of budget capacity to transfer from general fund contingency for 3% mid -year Team Performance Pay increase for the pay period starting on January 2, 20201 for eligible Town of Marana employees. Motion passes, 6-0. A7 Ordinance No. 2020.022: Relating to Utilities; rescinding Marana Ordinance No. 2020.006, as extended by Marana Ordinance No. 2020.007, which temporarily suspended enforcement of Marana Town Code Section 14 -5-4 (Nonpayment of delinquent bill; filing of lien; interest) as it rela tes to disconnecting utility service for non -payment; and authorizing Town staff to implement payment plan options and other customer assistance programs for the collection of delinquent payments (Amanda Jones) AMENDED Regular Council Meeting 01/19/2021 Page 72 of 402 Regular Council Meeting Summary Minutes 12/15/2020 Water Business Services Coordinator Amanda Jones provided an overview of Ordinance No. 2020.022 stating on March 17, 2020, in an effort to help mitigate the spread of COVID-19, the Town Council approved Ordinance No. 2020.006, temporarily suspending the enforcement of enforcement of Marana Town Code (MTC) section 14 -5- 4(A) as it relates to turning off a customer water supply for non-payment of a water bill, through April 30, 2020. On April 21, 2020, the Council approved Ordinance 2020.007 that extended the suspension of water disconnections for non -payment until such time that the Mayor’s March 17, 2020 Proclamation of Local and Emergency is withdrawn. Customers not able to pay during this time were to remain financially responsible for all usage charges. Adoption of the proposed ordinance will rescind Ordinance No. 2020.006, having the effect of reinstating water disconnections for non-payment. The ordinance also authorizes staff to administratively approve payment plan options for customers and to pursue further customer assistance programs for those experiencing a financial hardship. There has be en a financial impact as a result: delinquent receivables have significantly increased since March and are currently at approximately $75,000. Reinstating disconnects and providing payment plan options for customers would allow collection of uncollected re venue over the next six to 12 months. Staff recommends approval of Ordinance No. 2020.022 rescinding Ordinance No. 2020.006. Vice Mayor Post moved and Council Member Kai second the motion to adopt Ordinance No. 2020.022, rescinding Marana Ordinance No. 2 020.006, and authorizing Town staff to implement payment plan options and other customer assistance programs for the collection of payments. Motion passes , 6-0. ITEMS FOR DISCUSSION / POSSIBLE ACTION D1 Relating to Legislative and Government Actions; discussion and possible action regarding all pending state, federal and local legislation/government actions and on recent and upcoming meetings of the other governmental bodies. (Terry Rozema) Mr. Rozema stated he did not have a report to offer. 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 l isted in A.R.S. §38-431.03 (A). AMENDED Regular Council Meeting 01/19/2021 Page 73 of 402 Regular Council Meeting Summary Minutes 12/15/2020 [7:47 PM Minutes:] Mayor Honea asked for a motion to go into an Executive Session for the purposes provided in Items E2 and E3. Vice Mayor Post moved and Council Member Comerford second the motion to enter into an Executive Session Meeting for the purposes stated in Item s E2 and E3. Motion passes, 6-0. E2 Executive session pursuant to A.R.S. § 38 -431.03(A)(4) for discussion or consultation with the Town’s attorneys in order to consider the Town’s position and instruct its attorneys regarding the Town’s position regarding possible litigation and/or settlement negotiations related to the One Arizona Opioid Settlement Memorandum of Understanding. [8:14 PM Minutes:] Mayor Honea resumed the Council Meeting. Ms. Fairall stated Town staff needs a motion to authorize the Town Manager to sign the One Arizona Opioid Settlement Memorandum of Understanding. Vice Mayor Post, moved and Council Member Comerford second the motion. Motion passes, 6-0. E3 Executive session pursuant to A.R.S. § 38-431.03(A)(7) for discussion or consultation with the Town Manager, Town Engineer, and Town Attorney, as designated representatives of the Town, in order to consider the Town’s position and instruct its representatives regarding negotiations for the sale or lease of interests in real property located on the south side of Silverbell Road between its two Continental Reserve Loop intersections and consisting of the Picture Rocks Wash drainageway, Pima County Assessor’s Parcel No. 221 -21-004E, for flood control purposes. Ms. Fairall asked for a motion to authorize staff to proceed with CGR Investments as discussed during the Executive Session. Council Member Kai moved and Vice Mayor Post second the motion. Motion passes, 5- 1-Nay (Council Member Comerford). 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 Mayor Honea asked for a motion to adjourn the meeting. AMENDED Regular Council Meeting 01/19/2021 Page 74 of 402 Regular Council Meeting Summary Minutes 12/15/2020 Vice Mayor Post, moved and Council Member Officer second the motion to adjourn the meeting. Motion passes, 6-0. Meeting adjourned at 8:14 PM. CERTIFICATION I hereby certify that the foregoing are the true and correct mi nutes of the Marana Town Council meeting held on December 15, 2020. I further certify that a quorum was present. ________________________________________ Cherry L. Lawson, Town Clerk AMENDED Regular Council Meeting 01/19/2021 Page 75 of 402      Council-Regular Meeting   L1        Meeting Date:01/19/2021   To:Mayor and Council Submitted For:Cherry L. Lawson, Town Clerk From:Nolette Hernandez, Records Clerk Date:January 19, 2021 Strategic Plan Focus Area: Community Strategic Plan Focus Area Additional Info: Leverage the Town’s coordinating capability to facilitate enhanced customer interaction with multiple governmental and external agencies. 1.             a.    Ensure Marana residents and business owners experience excellent customer service interactions. Subject:Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an application for a new series #010 Beer and Wine Store Liquor License submitted by Perry Charles Huellmantel on behalf of QuikTrip #1491, located at 9400 West Tangerine Road, Marana, AZ 85653 (Cherry L. Lawson) Discussion: This application is for a series #010 Beer and Wine Store liquor license at QuikTrip #1491, located at 9400 W Tangerine Road Marana, AZ 85653.   Pursuant to state law, the application was posted at the premises where the business is to be conducted.  The posted notice provided that residents within a one-mile radius from the premises may file written arguments in favor of or opposed to the issuance of the license with the Town Clerk’s Office within 20 days of the posting.  Any written arguments received by the Clerk’s Office for or against the proposed liquor license are attached to this item and will be submitted to the Department of Liquor Licenses and Control (DLLC).   AMENDED Regular Council Meeting 01/19/2021 Page 76 of 402 Town staff has reviewed this application to determine whether the applicant is in compliance with zoning, building and other legal requirements for the business.  Additionally, the Marana Police Department has conducted a local background check.    The Town Council must enter an order recommending approval or disapproval of the application within 60 days after filing of the application.  Pursuant to state statute, a license will only be issued after a satisfactory showing of the capability, qualifications and reliability of the applicant and “in all proceedings before the town council, the applicant bears the burden of showing that the public convenience requires and that the best interests of the community will be substantially served by the issuance of a license.”   If the Council’s recommendation is for disapproval, the order must include an attachment stating the specific reasons for the recommendation of disapproval and include a summary of the testimony or other evidence supporting the recommendation.   If the Council enters an order recommending approval of the application, or makes no recommendation, then no hearing before the Arizona state liquor board will take place, unless the director of the DLLC, the Liquor Board or a resident within a one-mile radius from the premises requests a hearing.  If the Council enters an order recommending disapproval of the application, or if the director, board or a resident within a one-mile radius from the premises requests a hearing, then the state board will hold a hearing regarding the application.   At the hearing, the state board will consider all evidence and testimony in favor of or opposed to the granting of the license.  The decision of the board to either grant or deny an application will normally take place within 105 days after the application has been filed, unless the director of the DLLC deems it necessary to extend the time period. Staff Recommendation: Town staff recommends that an order recommending approval be submitted to the DLLC for this liquor license application. Suggested Motion: OPTION 1:   I move to approve and submit to the DLLC an order recommending approval of an application for a new series #010 Beer and Wine Store liquor license submitted by Perry Charles Huellmantel on behalf of QuikTrip #1491, located at 9400 West Tangerine Road, Marana, AZ 85653.   OPTION 2:    I move to approve and submit to the DLLC an order recommending disapproval of an application for a new series #010 Beer and Wine Store liquor license application submitted by Perry Charles Huellmantel on behalf of QuikTrip #1491, located at 9400 West Tangerine Road, Marana, AZ 85653. Attachments AMENDED Regular Council Meeting 01/19/2021 Page 77 of 402 Redacted Application Affidavit of Posting Local Governing Body Recommendation Descriptions of Common Liquor Licenses AMENDED Regular Council Meeting 01/19/2021 Page 78 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 79 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 80 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 81 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 82 of 402 AMENDED Regular Council Meeting 01/19/2021Page 83 of 402 AMENDED Regular Council Meeting 01/19/2021Page 84 of 402 Arizona Department of Liquor Licenses and Control cam` a Z,. i .„. `,; 800 W Washington 5th Floor Phoenix, AZ 85007-2934 www.azliquor.gov R zawa 602) 542-5141 S, AFFIDAVIT OF POSTING December 10 2020 Date of Posting: Date of Posting Removal: 20171- Applicant's Name: Huellmantel Perry Charles Last First Middle Business Address: 9400 W Tangerine Rd Marana 85653 Street City Zip License #: 125493 I hereby certify that pursuant to A.R.S. 4-201, I posted notice in a conspicuous place on the premises proposed to be licensed by the above applicant and said notice was posted for at least twenty (20) days. Print Name of City/County Official Titre Phone Number esree Signature ate Signed Return this affidavit with your recommendations (i.e., Minutes of Meeting, Verbatim, etc.) or any other related documents. If you have any questions please call (602) 542-5141 and ask for the Licensing Division. 8/21/2015 Page 1 of 1 Individuals requiring ADA accommodations please call(602)542-9027AMENDED Regular Council Meeting 01/19/2021 Page 85 of 402 Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor Phoenix, AZ 85007-2934 www.azliquor.gov (602) 542-5141 Local Governing Body Recommendation A.R.S. § 4-201(C) 1. City or Town of: __________________________________________ Liquor License Application #:_______________________________ (Circle one) (Arizona application #) 2. County of: _______________________________________________ City/Town/County #: ______________________________________ 3. If licensed establishment will operate within an “entertainment district” as described in A.R.S. §4-207(D)(2), ______________________________________________________ ______________________________________________________ (Name of entertainment district) (Date of resolution to create the entertainment district) A boundary map of entertainment district must be attached. 4. The ___________________________________ at a ________________________________ meeting held on the __________________ of (Governing body) (Regular or special) (Day) _____________________, ____________ considered the application of _______________________________________________________ (Month) (Year) (Name of applicant) for a license to sell spirituous liquor at the premises described in application ______________________________________________, (Arizona liquor license application #) for the license series #: type ________________________________________________________________ as provided by A.R.S §4-201. (i.e.: series #10: beer & wine store) ORDER OF APPROVAL/DISAPPROVAL IT IS THEREFORE ORDERED that the license APPLICATION OF __________________________________________________ (Name of applicant) to sell spirituous liquor of the class and in the manner designated in the application, is hereby recommended for _____________________________________________________. (Approval, disapproval, or no recommendation) TRANSMISSION OF ORDER TO STATE IT IS FURTHER ORDERED that a certified copy of this order be immediately transmitted to the State Department of Liquor, License Division, 800 W Washington, 5th Floor, Phoenix, Arizona. Dated at _______________________ on ________________, _________________, __________. (Location) (Day) (Month) (Year) ____________________________________________ ___________________________________________ (Printed name of city, town or county clerk) (Signature of city, town or county clerk) 8/21/2015 Page 1 of 1 Individuals requiring ADA accommodations please call (602)542-9027 AMENDED Regular Council Meeting 01/19/2021 Page 86 of 402 Department of Liquor Licenses and Con trol Descriptions of Common Types of Liquor Licenses {00018233.DOC / 2} Series 6 Bar The bar (series 6) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on- & off-sale retail privileges. This license allows a bar retailer to sell and serve all types of spirituous liquors, primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off-sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. § 4 -206.01.F. states that after January 1, 2011, the off-sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Payment must be made no later than the time of delivery. Off-sale ("To Go") package sales of spirituous liquor can be made on the bar premises as long as the area of off-sale operation does not utilize a separate entrance and exit from the ones provided for the bar. A hotel or motel with a Series 6 li cense may sell spirituous liquor in sealed containers in individual portions to its registered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty -one (21) years of age. Access to the minibar is by a key or magnetic card device and not furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m. Series 7 Beer and Wine Bar The beer and wine bar (series 7) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on - & off-sale retail privileges. This license allows a beer and wine bar retailer to sell and serve beer and wine (no other spirituous liquors), primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off - sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. § 4-206.01.F. states that after January 1, 2011, the off- sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Off -sale ("To Go") package sales can be made on the bar premises as long as the area of off -sale operation does not utilize a separate entrance and exit from the one provide d for the bar. Payment must be made no later than the time of delivery. AMENDED Regular Council Meeting 01/19/2021 Page 87 of 402 Department of Liquor Licenses and Con trol Descriptions of Common Types of Liquor Licenses {00018233.DOC / 2} Series 9 Liquor Store The liquor store (series 9) license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, thi s liquor license is transferable from person to person and/or location to location within the same county and allows a spirituous liquor store retailer to sell all types of spirituous liquors, only in the original unbroken package, to be taken away from th e premises of the retailer and consumed off the premises. A retailer with off -sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 9 (li quor store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. Series 10 Beer and Wine Store This non-transferable, off-sale retail privileges liquor license allows a retail store to sell beer and wine (no other spirituous liquors), only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. A retailer with off-sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 10 (beer and wine store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. Series 11 Hotel/Motel This non-transferable, on-sale retail privileges liquor license allows the holder of a hotel/motel license to sell and serve all types of spirituous liquor solely for consumption on the premises of a hotel or motel that has a restaurant where food is served on the premises. The restaurant on the licensed premises must derive at least forty percent (40%) of its gross revenue from the sale of food. The holder of this license may sell spirituous liquor in sealed containers in individual portions to its regi stered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty -one (21) years of age. Access to the minibar is provided by a key or magnetic card device and may not be furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m. Series 12 Restaurant This non-transferable, on-sale retail privileges liquor license allows the holder of a restaurant license to sell and serve all types of spirituous liquor solely for consumption on the premises of an establishment which derives at least forty percent (40%) of its gross revenue from the sale of food. Failure to meet the 40% food requirement may result in revocation of the license. AMENDED Regular Council Meeting 01/19/2021 Page 88 of 402      Council-Regular Meeting   L2        Meeting Date:01/19/2021   To:Mayor and Council Submitted For:Cherry L. Lawson, Town Clerk From:Nolette Hernandez, Records Clerk Date:January 19, 2021 Strategic Plan Focus Area: Community Strategic Plan Focus Area Additional Info:   1. Leverage the Town’s coordinating capability to facilitate enhanced customer interaction with multiple governmental and external agencies.          a. Ensure Marana residents and business owners experience excellent customer service interactions. Subject:Relating to Liquor Licenses; recommendation to the Arizona Department of Liquor Licenses and Control regarding an application for a new series #012 Restaurant Liquor License submitted by Kevin Arnold Kramber on behalf of Guadalajara's Grill, located at 5955 West Arizona Pavilions Drive, Tucson, AZ 85743 (Cherry L. Lawson) Discussion: This application is for a series #012 Restaurant Liquor License at Guadalajara's Grill, located at 5955 West Arizona Pavilions Drive, Tucson, AZ 85743.   Pursuant to state law, the application was posted at the premises where the business is to be conducted.  The posted notice provided that residents within a one-mile radius from the premises may file written arguments in favor of or opposed to the issuance of the license with the Town Clerk’s Office within 20 days of the posting.  Any written arguments received by the Clerk’s Office for or against the proposed liquor license are attached to this item and will be submitted to the Department of Liquor Licenses and Control (DLLC).   Town staff has reviewed this application to determine whether the applicant is in AMENDED Regular Council Meeting 01/19/2021 Page 89 of 402 compliance with zoning, building and other legal requirements for the business.  Additionally, the Marana Police Department has conducted a local background check.    The Town Council must enter an order recommending approval or disapproval of the application within 60 days after filing of the application.  Pursuant to state statute, a license will only be issued after a satisfactory showing of the capability, qualifications and reliability of the applicant and “in all proceedings before the town council, the applicant bears the burden of showing that the public convenience requires and that the best interests of the community will be substantially served by the issuance of a license.”   If the Council’s recommendation is for disapproval, the order must include an attachment stating the specific reasons for the recommendation of disapproval and including a summary of the testimony or other evidence supporting the recommendation.   If the Council enters an order recommending approval of the application, or makes no recommendation, then no hearing before the Arizona state liquor board will take place, unless the director of the DLLC, the liquor board or a resident within a one-mile radius from the premises requests a hearing.  If the Council enters an order recommending disapproval of the application, or if the director, board or a resident within a one-mile radius from the premises requests a hearing, then the state board will hold a hearing regarding the application.   At the hearing, the state board will consider all evidence and testimony in favor of or opposed to the granting of the license.  The decision of the board to either grant or deny an application will normally take place within 105 days after the application has been filed, unless the director of the DLLC deems it necessary to extend the time period. Staff Recommendation: Town staff recommends that an order recommending approval be submitted to the DLLC for this liquor license application. Suggested Motion: OPTION 1:   I move to approve and submit to the DLLC an order recommending approval of an application for a new series #012 Restaurant Liquor License submitted by Kevin Arnold Kramber on behalf of Guadalajara's Grill, located at 5955 West Arizona Pavilions Drive, Tucson, AZ 85743.   OPTION 2:    I move to approve and submit to the DLLC an order recommending disapproval of an application for a new series #012 Restaurant Liquor License submitted by Kevin Arnold Kramber on behalf of Guadalajara's Grill, located at 5955 West Arizona Pavilions Drive, Tucson, AZ 85743. Attachments AMENDED Regular Council Meeting 01/19/2021 Page 90 of 402 Redacted Application Affidavit of Posting Local Governing Body Recommendation Description of Common Liquor Licenses AMENDED Regular Council Meeting 01/19/2021 Page 91 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 92 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 93 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 94 of 402 AMENDED Regular Council Meeting 01/19/2021Page 95 of 402 8/21/2015 Page 1 of 1 Individuals requiring ADA accommodations please call (602)542-9027 Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor Phoenix, AZ 85007-2934 www.azliquor.gov (602) 542-5141 AFFIDAVIT OF POSTING Date of Posting: ____________________________________ Date of Posting Removal: ___________________________________ Applicant’s Name: ____________________________________________________________________________________________________ Last First Middle Business Address: ______________________________________________________________________________________________________ Street City Zip License #: __________________________________________ I hereby certify that pursuant to A.R.S. 4-201, I posted notice in a conspicuous place on the premises proposed to be licensed by the above applicant and said notice was posted for at least twenty (20) days. ___________________________________________________________ ________________________ ________________________________ Print Name of City/County Official Title Phone Number ______________________________________________________________________________________ ________________________________ Signature Date Signed Return this affidavit with your recommendations (i.e., Minutes of Meeting, Verbatim, etc.) or any other related documents. If you have any questions please call (602) 542-5141 and ask for the Licensing Division. AMENDED Regular Council Meeting 01/19/2021 Page 96 of 402 Arizona Department of Liquor Licenses and Control 800 W Washington 5th Floor Phoenix, AZ 85007-2934 www.azliquor.gov (602) 542-5141 Local Governing Body Recommendation A.R.S. § 4-201(C) 1. City or Town of: __________________________________________ Liquor License Application #:_______________________________ (Circle one) (Arizona application #) 2. County of: _______________________________________________ City/Town/County #: ______________________________________ 3. If licensed establishment will operate within an “entertainment district” as described in A.R.S. §4-207(D)(2), ______________________________________________________ ______________________________________________________ (Name of entertainment district) (Date of resolution to create the entertainment district) A boundary map of entertainment district must be attached. 4. The ___________________________________ at a ________________________________ meeting held on the __________________ of (Governing body) (Regular or special) (Day) _____________________, ____________ considered the application of _______________________________________________________ (Month) (Year) (Name of applicant) for a license to sell spirituous liquor at the premises described in application ______________________________________________, (Arizona liquor license application #) for the license series #: type ________________________________________________________________ as provided by A.R.S §4-201. (i.e.: series #10: beer & wine store) ORDER OF APPROVAL/DISAPPROVAL IT IS THEREFORE ORDERED that the license APPLICATION OF __________________________________________________ (Name of applicant) to sell spirituous liquor of the class and in the manner designated in the application, is hereby recommended for _____________________________________________________. (Approval, disapproval, or no recommendation) TRANSMISSION OF ORDER TO STATE IT IS FURTHER ORDERED that a certified copy of this order be immediately transmitted to the State Department of Liquor, License Division, 800 W Washington, 5th Floor, Phoenix, Arizona. Dated at _______________________ on ________________, _________________, __________. (Location) (Day) (Month) (Year) ____________________________________________ ___________________________________________ (Printed name of city, town or county clerk) (Signature of city, town or county clerk) 8/21/2015 Page 1 of 1 Individuals requiring ADA accommodations please call (602)542-9027 AMENDED Regular Council Meeting 01/19/2021 Page 97 of 402 Department of Liquor Licenses and Con trol Descriptions of Common Types of Liquor Licenses {00018233.DOC / 2} Series 6 Bar The bar (series 6) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on- & off-sale retail privileges. This license allows a bar retailer to sell and serve all types of spirituous liquors, primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off-sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. § 4 -206.01.F. states that after January 1, 2011, the off-sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Payment must be made no later than the time of delivery. Off-sale ("To Go") package sales of spirituous liquor can be made on the bar premises as long as the area of off-sale operation does not utilize a separate entrance and exit from the ones provided for the bar. A hotel or motel with a Series 6 li cense may sell spirituous liquor in sealed containers in individual portions to its registered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty -one (21) years of age. Access to the minibar is by a key or magnetic card device and not furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m. Series 7 Beer and Wine Bar The beer and wine bar (series 7) liquor license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, this liquor license is transferable from person to person and/or location to location within the same county and allows the holder both on - & off-sale retail privileges. This license allows a beer and wine bar retailer to sell and serve beer and wine (no other spirituous liquors), primarily by individual portions, to be consumed on the premises and in the original container for consumption on or off the premises. A retailer with off - sale ("To Go") privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. A.R.S. § 4-206.01.F. states that after January 1, 2011, the off- sale privileges associated with a bar license shall be limited to no more than 30% of the total annual sales receipts of liquor by the licensee at that location. Off -sale ("To Go") package sales can be made on the bar premises as long as the area of off -sale operation does not utilize a separate entrance and exit from the one provide d for the bar. Payment must be made no later than the time of delivery. AMENDED Regular Council Meeting 01/19/2021 Page 98 of 402 Department of Liquor Licenses and Con trol Descriptions of Common Types of Liquor Licenses {00018233.DOC / 2} Series 9 Liquor Store The liquor store (series 9) license is a "quota" license available only through the Liquor License Lottery or for purchase on the open market. Once issued, thi s liquor license is transferable from person to person and/or location to location within the same county and allows a spirituous liquor store retailer to sell all types of spirituous liquors, only in the original unbroken package, to be taken away from th e premises of the retailer and consumed off the premises. A retailer with off -sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 9 (li quor store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. Series 10 Beer and Wine Store This non-transferable, off-sale retail privileges liquor license allows a retail store to sell beer and wine (no other spirituous liquors), only in the original unbroken package, to be taken away from the premises of the retailer and consumed off the premises. A retailer with off-sale privileges may deliver spirituous liquor off of the licensed premises in connection with a retail sale. Payment must be made no later than the time of delivery. Series 10 (beer and wine store) licensees and applicants may apply for unlimited sampling privileges by completing the Sampling Privileges form. Series 11 Hotel/Motel This non-transferable, on-sale retail privileges liquor license allows the holder of a hotel/motel license to sell and serve all types of spirituous liquor solely for consumption on the premises of a hotel or motel that has a restaurant where food is served on the premises. The restaurant on the licensed premises must derive at least forty percent (40%) of its gross revenue from the sale of food. The holder of this license may sell spirituous liquor in sealed containers in individual portions to its regi stered guests at any time by means of a minibar located in the guest rooms of registered guests. The registered guest must be at least twenty -one (21) years of age. Access to the minibar is provided by a key or magnetic card device and may not be furnished to a guest between the hours of 2:00 a.m. and 6:00 a.m. Series 12 Restaurant This non-transferable, on-sale retail privileges liquor license allows the holder of a restaurant license to sell and serve all types of spirituous liquor solely for consumption on the premises of an establishment which derives at least forty percent (40%) of its gross revenue from the sale of food. Failure to meet the 40% food requirement may result in revocation of the license. AMENDED Regular Council Meeting 01/19/2021 Page 99 of 402      Council-Regular Meeting   B1        Meeting Date:01/19/2021   To:Mayor and Council From:Cherry L. Lawson, Town Clerk Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-007: Relating to Boards, Commissions and Committees; making an appointment to the Council Committee for Planning Commission and Board of Adjustment Appointments (Cherry L. Lawson) Discussion: On March 5, 2013, the Town Council established the Council Committee for Planning Commission and Board of Adjustment Appointments, comprised of three Council Members. The Committee receives and reviews applications for prospective Planning Commission and Board of Adjustment members, and conducts interviews when desired.  When the Committee has completed the application review and conducted interviews it deems appropriate for any vacancy, the applications for Planning Commission and Board of Adjustment membership and the Council Committee's recommendations relating to them are then presented to the full Town Council for consideration and possible action. On March 5, 2013, the Council appointed Council Members Patti Comerford, Carol McGorray and Roxanne Ziegler to serve on the Committee.  On April 3, 2018, following the death of Council Member McGorray, the Council appointed Council Member Dave Bowen to serve on the Committee.   As a result of the August 4, 2020 Primary Election, Council Member Bowen was not re-elected, and there is now a vacancy on the Council Committee that must be filled with a current Council Member. Staff Recommendation: Council's pleasure. AMENDED Regular Council Meeting 01/19/2021 Page 100 of 402 Suggested Motion: I move to adopt Resolution No. 2021-007, appointing _________________________ to the Council Committee for Planning Commission and Board of Adjustment Appointments. Attachments Resolution 2021-007 AMENDED Regular Council Meeting 01/19/2021 Page 101 of 402 Resolution No. 2021-007 MARANA RESOLUTION NO. 2021-007 RELATING TO BOARDS, COMMISSIONS AND COMMITTEES; MAKING AN APPOINTMENT TO THE COUNCIL COMMITTEE FO R PLANNING COMMISSIO N AND BOARD OF ADJUSTMENT APPOINTMENTS WHEREAS on March 5, 2013, the Town Council adopted Resolution No. 2013-020 establishing the Council Committee for Planning Commission and Board of Adjustment Appointments and appointing Council Members Patti Comerford, Carol McGorray and Roxanne Ziegler to serve on the Committee ; and WHEREAS on April 3, 2018, the Council a dopted Resolution No. 2018 -031, appointing Council Member Dave Bowen to the Council Committee, following the death of Council Member Carol McGorray; and WHEREAS as a result of the August 4, 2020 Primary Election, Council Member Dave Bowen was not re -elected, thus creating a vacancy on the Council Committee; and WHEREAS the Mayor and Council find that the appointment addressed by this resolution is in the best interest of the Town and its citizens . NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that _____________________ is hereby appointed to the Council Committee for Planning Commission and Board of Adjustment Appointments to serve unless and until removal by the full Town Council or Committee member resignation. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January 2021. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 102 of 402      Council-Regular Meeting   A1        Meeting Date:01/19/2021   To:Mayor and Council From:Libby Shelton, Deputy Town Attorney Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-008:  Relating to Real Estate; approving and authorizing the Town Manager to execute a license agreement with Apollo Healthcare and Diagnostics, LLC, dba: TestNOW for use of Town-owned property located at 11555 W. Civic Center Drive (Lisa Shafer) Discussion: On March 13, 2020, the United States government declared a national emergency related to the COVID-19 pandemic.  The pandemic continues to affect town residents due to increased hospitalizations, illness, and mandated quarantines.  Increased availability to COVID-19 testing can assist residents by preventing additional exposures from people who are COVID-19 positive but asymptomatic and by allowing symptomatic people to determine whether or not the symptoms are due to COVID-19.   Apollo Healthcare and Diagnostics, LLC, dba: TestNOW is the largest COVID-19 diagnostic test provider in Arizona, operating 30 sites in Arizona and providing 40% of Arizona's daily testing output. TestNOW desires to use the gravel parking lot adjacent to the Marana Municipal Complex located at 11555 W. Civic Center Drive as depicted in Exhibit A to the License Agreement for drive-thru COVID-19 testing and flu vaccinations.  The Agreement allows TestNOW to have business hours from 9:00 AM to 9:00 PM seven days a week.  TestNOW will work with the Town's Traffic Engineering division to ensure that access to the Marana Municipal Complex is minimally affected by the traffic going to the TestNOW testing and vaccination site.  This agreement will be in effect until July 31, 2021.   Staff Recommendation: Staff recommends approval of the license agreement with Apollo Healthcare and AMENDED Regular Council Meeting 01/19/2021 Page 103 of 402 Staff recommends approval of the license agreement with Apollo Healthcare and Diagnostics, LLC, dba: TestNOW. Suggested Motion: I move to adopt Resolution No. 2021-008, approving and authorizing the Town Manager to execute the license agreement with Apollo Healthcare and Diagnostics, LLC, dba: TestNOW for use of Town-owned property located at 11555 W. Civic Center Drive. Attachments Resolution 2021-008 License Agreement Exhibit A AMENDED Regular Council Meeting 01/19/2021 Page 104 of 402 00073799.DOCX /1 Resolution No. 20 21-008 MARANA RESOLUTION NO. 2021-008 RELATING TO REAL EST ATE; APPROVING AND AUTHORIZING THE TOWN MANAGER TO EXECUTE A LICENSE AGREEMENT WITH APOLLO HEALTHCARE AND DIAGNOSTICS, LLC, DBA: TESTNOW FOR USE OF TOWN-OWNED PROPERTY LOCATED AT 11555 W. CIVIC CENTE R DRIVE WHEREAS the United States government declared a National Emergency related to the COVID-19 pandemic on March 13, 2020; and WHEREAS the COVID-19 pandemic continues to affect Town residents and a n additional testing site would allow Town residents additional opportunities for COVID - 19 testing; and WHEREAS the Apollo Healthcare and Diagnostics LLC, dba: TestNOW desires to use the gravel parking lot adjacent to the Marana Municipal Complex located a t 11555 W. Civic Center Dr. for a drive -through COVID-19 testing and flu vaccination site; and WHEREAS the Mayor and Council of the Town of Marana find that the best interests of Marana and its citizens are served by entering into a license agreement with Apollo Healthcare and Diagnostics, LLC. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the license agreement with Apollo Healthcare and Diagnostics, LLC. is hereby approved in substantially the form set forth in the ag enda materials accompanying this resolution, and the Town Manager is authorized to sign it for and on behalf of the Town of Marana. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January, 2021. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 105 of 402 00073698.DOCX /6 LICENSE AGREEMENT LICENSOR: TOWN OF MARANA 11555 W. Civic Center Dr. Marana, AZ 85653 LICENSEE: APOLLO HEALTHCARE AND DIAGNOSTICS LLC, dba: TestNOW 3370 N Hayden Rd #123-215 Scottsdale, AZ 85251 In consideration of Licensee’s performance of its obligations under this Agreement, Licensor hereby gives permission to Licensee to use a portion of Licensor’s Property (the “Property”) as depicted on Exhibit “A” attached to and incorporated by this refere nce in this Agreement and more particularly described as follows: The gravel parking lot adjacent to the Marana Municipal Complex located at 11555 W. Civic Center Dr., bounded by West Civic Center Drive to the west, West Barnett Drive to the south, and the driveway into the Marana Municipal Complex on the northeast, and identified as Pima County Assessor’s Parcel Number (APN) 217370590. Licensee may use the Property for a drive -through COVID-19 testing and flu vaccination site, and for parking for Lice nsee’s employees, subject to the following terms and conditions: a. Licensee will have access to the Property from 8:00 AM to 10 :00 PM, and will maintain consistent business hours of Sunday through Saturday from 9:00 AM to 9:00 PM. The property can be clo sed off to the public via cones or barricades after hours of operation. b. The Licensor will require Licensee to vacate the Property when the Licensor desires to use the Property for other purposes, including, without limitation, Licensor’s special events. The Town will give Licensee at least seven days’ notice to vacate the Property. c. Licensee may erect temporary tents no larger than 12 foot by 12 foot for testing sites on the Property in the area depicted on Exhibit A. Licensee shall ensure that all tents are installed or secured per manufacturers’ specifications. Licensee shall erect and take down the temporary tents each day. d. Licensee shall provide and use cones and signage directing cars where to enter and exit the Property, pursuant to the rou te depicted on Exhibit A. Licensee shall AMENDED Regular Council Meeting 01/19/2021 Page 106 of 402 00073698.DOCX /6 comply with the direction of Licensor’s Traffic Engineering division regarding placement of the cones and signage. e. Licensee may maintain a storage unit and a portable restroom facility on the Property during the term of this Agreement. Licensee shall cause the portable restroom facility to be regularly serviced. Licensee is responsible for loss of any items stored on the property. Licensor shall have the right to modify or revoke the License at any time, all on the terms and conditions set forth below, which Licensee promises to comply with and abide by: 1. This Agreement shall be binding upon Licensee, its heirs, assignees and designees, and every reference to Licensee in this Agreement shall include and bind Licensee’s heirs, assignees and designees. 2. Licensee covenants that it shall defend, indemnify and hold harmless Licensor, its officers, agents, and employees from any and all claims, demands, causes of action, complaints, suits, losses, damages, injuries, and liabilities whatsoever (including those for costs, expenses, and attorneys' fees) to any person, persons, or property arising out of either (1) the use of the Licensor's Property by Licensee, or (2) the negligent acts or omissions of Licensee. 3. As a condition precedent to use of the Property and to allow ongoing use of the Property, Licensee shall obtain a valid Town of Marana business license. Licensee shall at all times during the duration of this agreement hold a valid Town of Marana business license. 4. As a condition precedent to use of the Property and to allow ongoing use of the Property, Licensee shall provide certificates of insurance and endorsement evidencing the following minimum insurance coverages and limits, and th e Town of Marana shall be listed as an additional insured on the Commercial General Liability policy: • Commercial General Liability - $1,000,000 per occurrence, $2,000,000 aggregate • Business Auto Liability - $1,000,000 combined single limit 5. This Agreement becomes effective on the signature date of the last party to sign it, and shall remain in effect until July 31, 2021, or unless and until it is (a) terminated by written agreement of the parties or (b) revoked by and at the sole discretion of Licensor. 6. Licensor shall give Licensee written notice of revocation at least 15 calendar days prior to the effective date of any revocation. AMENDED Regular Council Meeting 01/19/2021 Page 107 of 402 00073698.DOCX /6 7. If Licensee causes any damage to Licensor’s Property, Licensee shall promptly make and pay for the repairs necess ary to restore the Property to its pre -damaged condition. 8. Licensee shall abide by all existing laws of the State of Arizona, County of Pima and Town of Marana. Licensee shall comply with all applicable laws and regulations as required by the Arizona De partment of Health Services and Arizona Revised Statutes. 9. This Agreement is subject to cancellation for conflict of interest pursuant to A.R.S. § 38-511. 10. During the term of this Agreement, Licensee agrees to use the Property only for the purpose of a drive -through COVID-19 testing and flu vaccination site and for parking for Licensee’s employees . At all times during the term of this Agreement, Licensee agrees to use the Property in keeping with best safety practices. Under no circumstances may Licensee (a) use or permit the use of the Property for any purpose other than the purpose described in this Agreement, (b) cause or permit waste of the Property or (c) adversely affect Licensor’s title and rights to the Property, including any water rights or any other rights owned or claimed by Licensor. 11. At the end of each day of its use of the Property, Licensee agrees that it will pick up and properly dispose of all trash and debris deposited on the Property as a result of Licensee’s activities. 12. This Agreement and Exhibit A to this Agreement contain the entire agreement and understanding of the Licensor and Licensee . This agreement can be amended only by written instrument executed by both parties. [SIGNATURE PAGE FOLLOWS] AMENDED Regular Council Meeting 01/19/2021 Page 108 of 402 00073698.DOCX /6 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Licensor’s signature date below. LICENSEE: APOLLO HEALTHCARE AND DIAGNOSTICS LLC, an Arizona limited liability company, dba: TestNOW By: ______________________________ Raymond S. Embrey, Member Date: ______________________________ By: ______________________________ Zachary E. Travis, Member Date: ______________________________ LICENSOR: TOWN OF MARANA, an Arizona municipal corporation By: ______________________________ Terry Rozema, Interim Town Manager Date: ______________________________ ATTEST: _____________________________ Town Clerk APPROVED AS TO FORM: _____________________________ Town Attorney STATE OF Arizona ) ss. County of Pima ) The foregoing instrument was acknowledged before me this ______ day of _______________, 2021 by Raymond S. Embrey, Member of APOLLO HEALTHCARE AND DIAGNOSTICS LLC, an Arizona limited liability company dba: TestNOW, on behalf of the LLC. (Seal) ___________________________________ Notary Public AMENDED Regular Council Meeting 01/19/2021 Page 109 of 402 00073698.DOCX /6 STATE OF Arizona ) ss. County of Pima ) The foregoing instrument was acknowledged before me this ______ day of _______________, 2021 by Zachary E. Travis , Member of APOLLO HEALTHCARE AND DIAGNOSTICS LLC, an Arizona limited liability company dba: TestNOW, on behalf of the LLC. (Seal) ___________________________________ Notary Public AMENDED Regular Council Meeting 01/19/2021 Page 110 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 111 of 402    Council-Regular Meeting   A2        Meeting Date:01/19/2021   To:Mayor and Council Submitted For:Heath Vescovi-Chiordi, Assistant to the Town Manager From:Heath Vescovi-Chiordi, Assistant to the Town Manager Date:January 19, 2021 Strategic Plan Focus Area: Commerce,  Not Applicable Strategic Plan Focus Area Additional Info: Principle Statement: "We will seek and retain diverse industries and commerce." Initiative 2: "Research, evaluate and implement Economic Development tools and strategies to support business development and expansion." Subject:Resolution No. 2021-009: Relating to Economic Development; approving the Marana Matters: COVID-19 Small Business Assistance Program to assist small businesses located within the Town of Marana impacted by the COVID-19 pandemic; and approving a corresponding budget capacity transfer from the general fund contingency line item to the Economic Development Department budget in the fiscal year 2020-2021 budget (Heath Vescovi-Chiordi) Discussion: As requested by the Vice Mayor, and as directed by Council after a Study Session on October 13, 2020, Town staff has created a local small business assistance program to assist small businesses in Marana that have suffered negative economic impacts as a result of the COVID19 pandemic. While many types of business assistance have been available throughout the pandemic, most of these resources have since closed, placing additional financial strain on small businesses in our communities. As the pandemic continues to worsen, and as unanticipated expenses pile up, the Town of Marana has explored options to assist local businesses with ongoing expenses.  The proposed resolution will immediately authorize the transfer of $100,000 in budget capacity from General Fund contingency to the Economic Development Department to AMENDED Regular Council Meeting 01/19/2021 Page 112 of 402 assist small businesses with ongoing expenses related to implementation of public health and safety protocols consistent with guidelines from the Centers for Disease Control (CDC) and the Arizona Department of Health Services (ADHS). The program application will be open from February 1, 2021 through June 21, 2021, or until funds are depleted, and will include a maximum reimbursement of up to $2,000 per eligible business for eligible expenses. Eligible expenses must be incurred during the time period between March 1, 2020 through June 21, 2021, and be for the following items: personal protective equipment (PPE), cleaning and disinfection/sanitation supplies,engineering controls such as plexi-glass barriers, touchless entry mechanisms, and high-efficiency air filters, and items that promote safe workplace practices and social distancing. The authorizing resolution included in the agenda packet also provides that if funds from the Marana Matters: COVID19 Small Business Assistance Program are exhausted prior to expiration of the program application expiration date of June 21, 2021, Council authorizes Town staff to transfer additional budget capacity from the General Fund contingency line item to the Economic Development Department budget in the fiscal year 2020-2021 budget for the program. If Council chooses to include authorization of an additional budget transfer, Council will need to specify in its motion the amount of that additional funding (See Suggested Motion Option A). Alternatively, Council may choose to not authorize this additional funding (See Suggested Motion Option B). Businesses applying for assistance under the program must meet eligibility requirements, including: Must be located in the Town Must demonstrate negative financial impact due to COVID19 Must have less than $3M in annual revenues Must present a statement of hardship and a COVID19 work plan Must provide itemized receipts for reimbursement Certain businesses will be excluded from eligibility for the program, including without limitation, home-based businesses, national chains, and businesses owned by Marana employees or family members of an employee. In creating this program, staff has considered numerous factors, including the amount of CARES Fund money the Town received ($5.6M), restrictions on spending due to the Arizona constitution's "gift clause," the nature of other local assistance programs, the ongoing nature of COVID-19, the ebb of lessening and increasing restrictions on businesses as we move forward, the potential of additional federal stimulus assistance, and a survey sent out by the Marana Chamber of Commerce. Financial Impact: Fiscal Year:20-21 Budgeted Y/N:N Amount:$100,000 Authorization of this program would move $100,000 in budget capacity from the Town's AMENDED Regular Council Meeting 01/19/2021 Page 113 of 402 Authorization of this program would move $100,000 in budget capacity from the Town's General Fund contingency to the Economic Development Department. Staff Recommendation: Staff recommends approval of the Marana Matters: COVID19 Small Business Assistance Program, approval of the transfer of $100,000 in budget capacity for the program, and authorization for Town staff to transfer an additional amount of funding for the program, in an amount specified by the Council, for the program depending upon demand. Suggested Motion: Option A: I move to adopt Resolution No. 2021-009, approving the Marana Matters: COVID-19 Small Business Assistance Program, approving the transfer of $100,000 in budget capacity from the General Fund contingency line item to the Economic Development Department budget in the fiscal year 2020-2021 budget for the business assistance program, and authorizing Town staff to transfer an additional $_____________ in budget capacity for the program if program funds are exhausted prior to June 21, 2021. Option B: I move to adopt Resolution No. 2021-009, approving the Marana Matters: COVID-19 Small Business Assistance Program, and approving the transfer of $100,000 in budget capacity from the General Fund contingency line item to the Economic Development Department budget in the fiscal year 2020-2021 budget for the business assistance program.  Attachments Resolution 2021-009 Exhibit A: Marana Matters Program Marana Matters Presentation AMENDED Regular Council Meeting 01/19/2021 Page 114 of 402 00073911.DOCX /1 Resolution No. 20 21-009 - 1 - MARANA RESOLUTION NO. 202 1-009 RELATING TO ECONOMIC DEVELOPMENT; APPROV ING THE MARANA MATTERS: COVID19 SMALL BUSINESS ASSISTANCE PROGRAM TO ASSIST SMALL BUSINESSES LOCATED WITHIN THE TOWN OF MARANA IMPACTED BY THE COVID-19 PANDEMIC; AND APPROV ING A CORRESPONDING BUDGET CAPACITY TRANSFER FR OM THE GENERAL FUND CONTINGENCY LINE ITE M TO THE ECONOMIC DEVELOP MENT DEPARTMENT BUDGET IN THE FISCAL YEAR 2020-2021 BUDGET WHEREAS the Town Council is authorized by A.R.S. § 9-240(A) to control the finances of the Town; and WHEREAS, on March 13, 2020, the United States government declared a National Emergency related to the COVID19 pandemic; and WHEREAS, on March 17, 2020, Mayor Ed Honea issued a Proclamation of Local Emergency in response to the actions taken by federal, state, and local jurisdictions in addressing conditions related to the COVID19 pandemic outbreak; and WHEREAS small businesses within the Town of Marana have been negatively affected by the COVID19 pandemic; and WHEREAS on July 21, 2020, the Town Council adopted the fiscal year 2020 -2021 budgetary document and overall financial plan which set the legal level of budgetary control at the department level for the General Fund and at the fund level for all other funds; and WHEREAS transferring amounts within the fiscal year 2020 -2021 budget will not significantly impact the General Fund; and WHEREAS reallocations of budgetary amounts between the contingency line item in the General Fund to other line items are necessary from time to time; and WHEREAS the Town Council finds that approving the Marana Matters: COVID19 Small Business Assistance Program and approving the budgetary reallocations addressed by this resolution are in the best interest of the Town of Marana . NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, ARIZONA, as follows: AMENDED Regular Council Meeting 01/19/2021 Page 115 of 402 00073911.DOCX /1 Resolution No. 20 21-009 - 2 - SECTION 1. The Marana Matters: COVID19 Small Business Assistance Program as described in Exhibit A, attached to and incorporated by this reference in this resolution, is hereby approved . SECTION 2. The transfer of $100,000 in budget capacity from the General Fund contingency line item to the Economic Development Department budget in the fiscal year 2020-2021 budget for the business assistance program is hereby approved. SECTION 3. If funds from the Marana Matters: COVID19 Small Business Assistance Program are exhausted prior to expiration of the program application expiration date of June 21, 2021, Town staff is authorized to transfer up to an additional $_______________ in budget capacity from the General Fund contingency line item to the Economic Development Department budget in the fiscal year 2020 -2021 budget for the program. SECTION 4. The Town’s Manager and staff are hereby directed and authorized to undertake all other and further tasks required or beneficial to carry out the terms, obligations, and objectives of this resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January, 2021. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 116 of 402 Exhibit A to Marana Resolution No. 2021 -009 MARANA MATTERS: COV ID19 SMALL BUSINESS ASSISTANCE PROGRAM PROGRAM SUMMARY The Town of Marana has set aside $100,000, intended to assist qualifying small businesses within the Town of Marana who have been negatively affected by the COVID19 pandemic. The program allows for a maximum award of up to $2,000.00 dollars per eligible small business as reimbursement for past or ongoing expenses related to the mitigation of the spread of COVID19. This program is intended to assist those busin esses that have implemented public health and safety protocols consistent with Centers for Disease Control and Prevention (CDC) and Arizona Department of Health Services (ADHS) guidelines. This program application is open from 2/01/2021 through 6/21/2021, or until funds are exhausted. Eligible expenditures for reimbursement must have taken place during the time period between 3/1/2020 through 6/21/2021. This program operates on a first come, first served basis. WHAT YOU’LL NEED TO PROVIDE • W9 Tax Document • Copy of your active Town of Marana Business License • Proof of expenditure for reimbursement (itemized receipts) • Proof of business employee FTEs (full -time equivalents) • Contact Information • Business Location Information • Tax ID/EIN Number • Statement of Hardship • COVID19 workplan • Profit and Loss Statement ELIGIBLE EXPENSES Eligible expenses must be incurred during the time period between 3/1/2020 through 6/21/2021, and be for the following items: • Personal Protective Equipment (PPE) such as face masks, glov es, face shields, gowns, eye protection, and other similar equipment worn to minimize exposure to COVID19. • Items that promote safe work practices, such as cleaning, disinfection, and sanitation supplies, hand sanitizer, and hand sanitation stations. AMENDED Regular Council Meeting 01/19/2021 Page 117 of 402 Exhibit A to Marana Resolution No. 2021 -009 • Engineering controls such as plexi-glass barriers, touchless entry mechanisms, and high - efficiency air filters. • Other items that are associated with implementing safety protocols per CDC and ADHS guidelines for employees and customers, or that promote physical d istancing, or enhanced sanitation measures as deemed eligible by the Town of Marana. BUSINESS ELIGIBILITY REQUIREMENTS • Must be a for -profit or nonprofit business located at a physical address within the Town of Marana. • Must have a valid Town of Marana Business License at time of application and award disbursement. • Must be a licensed Marana Business as of January 1, 2020. • Must have no fewer than 3 and no more than 25 employees (based on Full Time Equivalents, i.e. FTEs). • Must have no more than $3,000,000 (three million) in annual revenues from calendar year 2019 or calendar 2020. • Can demonstrate negative financial impacts as a result of COVID19. • Must be able to demonstrate a work plan regarding current/future implementation of public health and saf ety protocols per CDC/ADHS guidelines. • If establishment is a corporate franchise, it must be independently owned. EXCLUSIONS • Homebased businesses. • Publicly held companies, real estate firms, venture capital investment firms, banks, credit unions, check cas hing establishments, finance companies, pyramid sales plans, national chains, gambling/betting activities, business entities whose principle owner is currently incarcerated or on parole, business entities whose owner (with a majority share of ownership) is currently part of a bankruptcy action. • Corporate-owned franchises are restricted to one collective award if an individual owns multiple of the same franchise. • Businesses owned in whole or part by a Marana employee or by any family member of a Marana employee. For purpose of this paragraph, “family member” includes: AMENDED Regular Council Meeting 01/19/2021 Page 118 of 402 Exhibit A to Marana Resolution No. 2021 -009 spouse, child, parent, sibling, in-laws, step child, step parent, grandparent, grandchild or other legal dependent of an employee of the employee’s family member. AMENDED Regular Council Meeting 01/19/2021 Page 119 of 402 Marana Matters: COVID19 Small Business Assistance Program Heath Vescovi-Chiordi / Assistant to the Town Manager 1-19-2021 AMENDED Regular Council Meeting 01/19/2021 Page 120 of 402 Intro/Background •Council requested research on this item in July 2020 •Staff presented its findings to Council at a 10-13-2020 Study Session, and received additional direction •Staff was directed to look at business assistance examples in our region, as well as State and Federal programs •Consider various additional factors as well •Establish what might work for the Town, and design a program. AMENDED Regular Council Meeting 01/19/2021 Page 121 of 402 Local Examples •Private and nonprofit business assistance •Small business focus •Grants and/or loans •Maximum award thresholds/award limits per business •Establish acceptable expenditure types •Business must be local (located within the jurisdiction) •Application requirements for eligibility •Infrastructure development AMENDED Regular Council Meeting 01/19/2021 Page 122 of 402 Legal, Financial, and Admin Considerations •Staff time •3rd party involvement •Other administrative elements •Staff capacity •AZ Gift Clause compliance •Amounts allocated/allocation type AMENDED Regular Council Meeting 01/19/2021 Page 123 of 402 Marana Matters COVID19 Small Business Assistance Program The Town of Marana has set aside $100,000, intended to assist qualifying small businesses within the Town of Marana who have been negatively affected by the COVID19 pandemic. The program allows for a maximum award of up to $2,000.00 dollars per eligible small business as reimbursement for past or ongoing expenses related to the mitigation of the spread of COVID19. This program is intended to assist those businesses that have implemented public health and safety protocols consistent with Centers for Disease Control and Prevention (CDC) and Arizona Department of Health Services (ADHS) guidelines. AMENDED Regular Council Meeting 01/19/2021 Page 124 of 402 Eligibility Requirements •Must be a “small business” •Must be a Marana business •Must be physically located within the Town •Must demonstrate negative financial impact due to COVID19 •Must have less than $3M in annual revenues •Must present a statement of hardship and a COVID19 work plan •Must provide itemized receipts for reimbursement AMENDED Regular Council Meeting 01/19/2021 Page 125 of 402 Eligible Expenses •Personal Protective Equipment (PPE) such as face masks, gloves, face shields, gowns, eye protection, and other similar equipment worn to minimize exposure to COVID19. •Items that promote safe work practices, such as cleaning, disinfection, and sanitation supplies, hand sanitizer, and hand sanitation stations. •Engineering controls such as plexi-glass barriers, touchless entry mechanisms, and high-efficiency air filters. •Other items that are associated with implementing safety protocols per CDC and ADHS guidelines for employees and customers, or that promote physical distancing, or enhanced sanitation measures as deemed eligible by the Town of Marana. AMENDED Regular Council Meeting 01/19/2021 Page 126 of 402 Program Process and Timelines •Announcement of program •Digital marketing, including Town’s social media outlets •Business submits online application •Application is routed internally for review •Applications are logged and tracked •Approved apps receive funds, those that are not approved, will not. •Those seeking additional funds need only submit new receipts to Economic Development •Program Application: February 1, 2021 through June 21, 2021 •Program Duration: through just before the end of the current FY •Expense Reimbursement: for items purchased between March 1, 2020 through June 21, 2021. AMENDED Regular Council Meeting 01/19/2021 Page 127 of 402 Program Application AMENDED Regular Council Meeting 01/19/2021 Page 128 of 402 Questions? AMENDED Regular Council Meeting 01/19/2021 Page 129 of 402      Council-Regular Meeting   A3        Meeting Date:01/19/2021   To:Mayor and Council From:Jane Fairall, Town Attorney Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Resolution No. 2021-010: Relating to Real Estate; approving and authorizing the Town Manager to execute a License Agreement with Marana Health Center, Inc. for use of Town-owned property located north of Bill Gaudette Drive between Marana Main Street and North Sandario Road for a Covid-19 drive-through vaccination site (Jane Fairall) Discussion: The Marana Health Center (MHC) approached Town staff with a request to use the Town-owned vacant dirt lots north of the Health Center on Bill Gaudette Drive as a drive-through COVID-19 vaccination site. The proposed license agreement will allow MHC to use the two parcels for a vaccination site pursuant to the following terms: MHC will have access to the Property from 8:00 AM to 6:00 PM Monday through Friday, and will conduct the vaccination clinic from 9:00 AM to 5:00 PM Monday through Friday The agreement will be effective immediately and will remain in effect until July 31, 2021, unless sooner terminated The Town may require MHC to temporarily vacate the Property if the Town needs to use the Property MHC may erect temporary tents on the Property MHC will provide and use cones and signage directing cars where to enter and exit the Property, and will coordinate and comply with the direction of the Town's Traffic Engineering Division regarding traffic plans Staff Recommendation: Staff recommends approval of the License Agreement. AMENDED Regular Council Meeting 01/19/2021 Page 130 of 402 Staff recommends approval of the License Agreement. Suggested Motion: I move to adopt Resolution No. 2021-010, approving and authorizing the Town Manager to execute a License Agreement with Marana Health Center, Inc. for use of Town-owned property located north of Bill Gaudette Drive between Marana Main Street and North Sandario Road for a Covid-19 drive-through vaccination site. Attachments Resolution 2021-010 Exhibit A - License Agreement Exhibit A to License Agreement - Map AMENDED Regular Council Meeting 01/19/2021 Page 131 of 402 00073959.DOCX /1 Resolution No. 20 21-010 MARANA RESOLUTION NO. 2021-010 RELATING TO REAL EST ATE; APPROVING AND AUTHORIZING THE TOWN MANAGER TO EXECUTE A L ICENSE AGREEMENT WITH MARANA HEALTH CENTER, INC. FOR USE OF TOWN-OWNED PROPERTY LOCATED NORTH OF BILL GAUDETTE DRIVE BETWEEN MARANA MAIN STREET AND NORTH SANDARIO ROAD FOR A COVID-19 DRIVE-THROUGH VACCINATION SITE WHEREAS the United States government declared a National Emergency related to the COVID-19 pandemic on March 13, 2020; and WHEREAS the Marana Health Center desires to use the Town-owned dirt lots north of Bill Gaudette Drive between Marana Main Street and North Sandario Road, identified as Pima County Assessor’s Parcels Nos. (APN) 217-37-073C and 217-37-048F for a drive-through COVID-19 vaccination site; and WHEREAS the Mayor and Council of the Town of Marana find that the best interests of Marana and its citizens are served by entering into a license agreement with the Marana Health Center. NOW, THEREFORE, BE IT RESOLVED BY THE MAYO R AND COUNCIL OF THE TOWN OF MARANA, that the license agreement with Marana Health Center, Inc. is hereby approved in substantially the form set forth in Exhibit A, attached to and incorporated within this resolution, and the Town Manager is authorized to sign it for and on behalf of the Town of Marana. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 19th day of January, 2021. Mayor Ed Honea ATTEST: Cherry L. Lawson, Town Clerk APPROVED AS TO FORM: Jane Fairall, Town Attorney AMENDED Regular Council Meeting 01/19/2021 Page 132 of 402 Exhibit A to Marana Resolution No. 2021-010 00073940.DOCX /1 LICENSE AGREEMENT LICENSOR: TOWN OF MARANA 11555 W. Civic Center Dr. Marana, AZ 85653 LICENSEE: MARANA HEALTH CENTER , INC. 13395 N. Marana Main Street Marana, AZ 85653 In consideration of Licensee’s performance of its obligations under this Agreement, Licensor hereby gives permission to Licensee to use a portion of Licensor’s Property (the “Property”) as depicted on Exhibit “A” attached to and incorporated by this refere nce in this Agreement and more particularly described as follows: • The dirt lot bounded by Bill Gaudette Drive to the south, between Marana Main Street to the east and North Sandario Road to the west, and identified as Pima County Assessor’s Parcel Number (APN) 217 -37-048F • The dirt lot bounded by Bill Gaudette Drive to the south, Marana Main Street to the east, and Northwest Fire District station 36, 13475 N. Marana Main Street, to the north, and identified as Pima County Assessor’s Parcel Number (APN) 217-37-073C Licensee may use the Property for a drive -through COVID-19 vaccination site , subject to the following terms and conditions: a. Licensee will have access to the Property from 8:00 AM to 6:00 PM Monday through Friday, and will conduct the vaccination clinic from 9:00 AM to 5:00 PM Monday through Friday. The property can be closed off to the public via cones or barricades after hours of operation. b. Licensor may require Licensee to temporarily vacate the Property if Licensor desires to use the Property for other purposes. Licensor will give Licensee at least seven days’ prior notice to vacate the Property. c. Licensee may erect temporary tents no larger than 12 foot by 12 foot on the Property. Licensee shall ensure that all tents are installed or secured per manufacturers’ specifications. Licensee shall erect and take down the t emporary tents each day. d. Licensee shall provide and use cones and signage directing cars where to enter and exit the Property. Licensee shall coordinate and comply with the direction of Licensor’s Traffic Engineering Division regarding placement of the cones and AMENDED Regular Council Meeting 01/19/2021 Page 133 of 402 Exhibit A to Marana Resolution No. 2021-010 00073940.DOCX /1 signage. Licensee shall comply with any and all traffic plans created by Licensor’s Traffic Engineering Division. Licensor shall have the right to modify or revoke the License at any time, all on the terms and conditions set forth below, which Licensee promises to comply with and abide by: 1. This Agreement shall be binding upon Licensee, its heirs, assignees and designees, and every reference to Licensee in this Agreement shall include and bind Licensee’s heirs, assignees and designees. 2. Licensee covenants that it shall defend, indemnify and hold harmless Licensor, its officers, agents, and employees from any and all claims, demands, causes of action, complaints, suits, losses, damages, injuries, and liabilities whatsoever (including those for costs, expenses, and attorneys' fees) to any person, persons, or property arising out of either (1) the use of the Licensor's Property by Licensee, or (2) the negligent acts or omissions of Licensee. 3. As a condition precedent to use of the Property and to allow ongoing use of the Property, Licensee shall provide certificate (s) of insurance and endorsement(s) evidencing the following minimum insurance coverages and limits, and the Town of Marana shall be listed as an additional insured on the Commercial Gene ral Liability policy: a. Commercial General Liability - $1,000,000 per occurrence, $2,000,000 aggregate 4. This Agreement becomes effective on the signature date of the last party to sign it, and shall remain in effect until July 31, 2021, or unless and until it is (a) terminated by written agreement of the parties or (b) revoked by and at the sole discretion of Licensor. 5. Licensor shall give Licensee written notice of revocation at least 15 calendar days prior to the effective date of any revocation. 6. If Licensee causes any damage to Licensor’s Property, Licensee shall promptly make and pay for the repairs necessary to rest ore the Property to its pre -damaged condition. 7. Licensee shall abide by all existing laws of the State of Arizona, County of Pima and Town of Marana. Licensee shall comply with all applicable COVID-19 vaccination related regulations as required by the Ariz ona Department of Health Services and the Pima County Health Department. 8. This Agreement is subject to cancellation for conflict of interest pursuant to A.R.S. § 38-511. 9. During the term of this Agreement, Licensee agrees to use the Property only for the pu rpose of a drive -through COVID-19 vaccination site. At all times during the AMENDED Regular Council Meeting 01/19/2021 Page 134 of 402 Exhibit A to Marana Resolution No. 2021-010 00073940.DOCX /1 term of this Agreement, Licensee agrees to use the Property in keeping with best safety practices. Under no circumstances may Licensee (a) use or permit the use of the Property fo r any purpose other than the purpose described in this Agreement, (b) cause or permit waste of the Property or (c) adversely affect Licensor’s title and rights to the Property, including any water rights or any other righ ts owned or claimed by Licensor. 10. At the end of each day of its use of the Property, Licensee agrees that it will pick up and properly dispose of all trash and debris deposited on the Property as a result of Licensee’s activities. 11. This Agreement and Exhibit A to this Agreement contain the en tire agreement and understanding of the Licensor and Licensee . This agreement can be amended only by written instrument executed by both parties. [SIGNATURE PAGE FOLLOWS] AMENDED Regular Council Meeting 01/19/2021 Page 135 of 402 Exhibit A to Marana Resolution No. 2021-010 00073940.DOCX /1 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the signature date of the last party to sign it. LICENSEE: MARANA HEALTH CENTER, INC., an Arizona nonprofit corporation By: ______________________________ Clinton Kuntz, Chief Executive Officer Date: ______________________________ LICENSOR: TOWN OF MARANA, an Arizona municipal corporation By: ______________________________ Terry Rozema, Interim Town Manager Date: ______________________________ ATTEST: _____________________________ Town Clerk APPROVED AS TO FORM: _____________________________ Town Attorney STATE OF Arizona ) ss. County of Pima ) The foregoing instrument was acknowledged before me this ______ day of _______________, 2021 by Clinton Kuntz, Chief Executive Officer of MARANA HEALTH CENTER, INC., an Arizona nonprofit corporation, on behalf of the corporation. (Seal) ___________________________________ Notary Public AMENDED Regular Council Meeting 01/19/2021 Page 136 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 137 of 402      Council-Regular Meeting   D1        Meeting Date:01/19/2021   To:Mayor and Council From:Yiannis Kalaitzidis, Finance Director Date:January 19, 2021 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 2019-2020 fiscal year (Yiannis Kalaitzidis) Discussion: On September 1, 2020, staff provided Council with preliminary financial results for the Town's General Fund and certain other funds for fiscal year 2019-2020.  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 2020 and released its opinion to the Town in December 2020.  The Town received a clean opinion and the financial results are now final.    The results include an audit finding due to the incorrect recording of contributed capital assets from a developer, resulting in the duplicate recording of the same assets.  As the correction of this error required a restatement of beginning balances, audit standards require the auditor to issue an audit finding which is included within the attached Single Audit Report under Section II of the Schedule of Findings and Questioned Costs.  Staff consider this to be an isolated incident and review procedures have been updated to avoid this type of issue in the future.  Additionally, this error did not materially change the overall financial position of the Town. 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. AMENDED Regular Council Meeting 01/19/2021 Page 138 of 402 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).  The Town expended almost $11 million. The most significant amounts were: $4.0 million expended from the U.S. Environmental Protection Agency for the construction of the Water Treatment Plants, $3.1 million from the U.S. Department of Treasury for AZCares grant funding spent on public safety salaries, and $1.7 million expended during the fiscal year in grant funding from the U.S. Department of Transportation related to the completion of the Airport Apron and Taxiway B rehabilitation project. Staff Recommendation: Presentation only. Suggested Motion: Presentation only. Attachments Town of Marana - Fiscal Year 2019-2020 CAFR Town of Marana - Fiscal Year 2019-20 Annual Expenditure Limitation Report Town of Marana - Fiscal Year 2019-2020 Single Audit Report Fiscal Year 2019-2020 Summary Presentation AMENDED Regular Council Meeting 01/19/2021 Page 139 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 140 of 402 TOWN OF MARANA, ARIZONA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 _____________________________ 11555 W. Civic Center Dr., A3 Marana, Arizona 85653 Issued by: Town of Marana Finance Department AMENDED Regular Council Meeting 01/19/2021 Page 141 of 402 This page intentionally left blank AMENDED Regular Council Meeting 01/19/2021 Page 142 of 402 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 AMENDED Regular Council Meeting 01/19/2021 Page 143 of 402 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 Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – Other Special Revenue Fund 42 Statement of Net Position – Proprietary Funds 43 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds 44 Statement of Cash Flows – Proprietary Funds 45 Notes to Financial Statements 47 REQUIRED SUPPLEMENTARY INFORMATION Schedule of the Town’s Proportionate Share of the Net Pension Liability - Cost-Sharing Pension Plans 88 Schedule of Changes in the Town’s Net Pension Liability (Asset) and – Related Ratios Agent Pension Plans 90 Schedule of Town Pension Contributions 94 Notes to Pension Plan Schedules 98 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 105 Transportation Capital Fund 106 AMENDED Regular Council Meeting 01/19/2021 Page 144 of 402 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 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – All Non-Major Governmental Funds – By Fund Type 109 Non-Major Special Revenue Funds: Combining Balance Sheet 112 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 114 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 116 Non-Major Capital Projects Funds: Combining Balance Sheet 124 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 126 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 128 Non-Major Debt Service Fund: Combining Balance Sheet 140 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 142 Combining Schedule of Revenues, Expenditures and Changes in 144 Fund Balances – Budget and Actual AMENDED Regular Council Meeting 01/19/2021 Page 145 of 402 TOWN OF MARANA, ARIZONA TABLE OF CONTENTS (Cont’d) STATISTICAL SECTION FINANCIAL TRENDS Net Position by Component – Last Ten Fiscal Years 152 Changes in Net Position – Last Ten Fiscal Years 154 Fund Balances of Governmental Funds – Last Ten Fiscal Years 158 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 160 REVENUE CAPACITY Governmental Activities Tax Revenues by Source – Last Ten Years 164 Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable 165 Property – Last Ten Years Property Tax Rates – Direct and Overlapping Governments – Last Ten Years 166 Principal Property Taxpayers – Current Year and Nine Years Ago 168 Property Tax Levies and Collections – Last Ten Fiscal Years 169 Tangerine Farms Road Improvement District Assessments 170 Sales Tax by Industry – Last Ten Years 182 Excise Tax Collections – Last Ten Years 184 DEBT CAPACITY Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 186 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 187 Direct and Overlapping Governmental Activities Debt 188 Legal Debt Margin Information 189 Pledged-Revenue Coverage – Last Ten Fiscal Years 190 AMENDED Regular Council Meeting 01/19/2021 Page 146 of 402 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 192 Principal Employers – Current Year and Nine Years Ago 193 Principal Retail and Contracting Sales Taxpayers – Current and Nine Years Ago 194 OPERATING INFORMATION Full-time Equivalent City Government Employees by Function – Last 195 Ten Fiscal Years Single Family Residential Permits Issued – Last Ten Years 196 Capital Assets Statistics by Function 197 AMENDED Regular Council Meeting 01/19/2021 Page 147 of 402 This page intentionally left blank AMENDED Regular Council Meeting 01/19/2021 Page 148 of 402 INTRODUCTORY SECTION AMENDED Regular Council Meeting 01/19/2021 Page 149 of 402 This page intentionally left blank AMENDED Regular Council Meeting 01/19/2021 Page 150 of 402 i December 16, 2020 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, 2020. 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, 2020, 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, 2020, 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 AMENDED Regular Council Meeting 01/19/2021 Page 151 of 402 ii Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited Town’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in a separately issued Single Audit Reporting Package. Accounting principles generally accepted in the United States of America require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town’s MD&A can be found immediately following the report of the independent auditors. Profile of the Town The Town of Marana, incorporated in 1977, is located in 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 88 miles southeast 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 49,000. 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 377 full-time equivalent positions is responsible for the functions and operations of the Town government. Economic Condition and Outlook As we are all aware, 2020 continues to be an anomalous year for the Town of Marana, and indeed, for the entire world. As the COVID-19 pandemic gripped our nation and took hold globally, the world scrambled to implement changes that would protect public health at all costs. As a result of this pandemic, as well as these policy changes at the federal, state, county, and local levels, the economy has exhibited symptoms that are reminiscent of the 2007/2008 financial crisis. General consensus is that, from an economic standpoint, we are in uncharted territory and are expected to see continued contraction of economic activity, with a longer recovery period than originally anticipated. Due to the modifications imposed on businesses throughout our local and regional community, as well as through multiple Executive Orders aimed at slowing the spread of COVID-19 AMENDED Regular Council Meeting 01/19/2021 Page 152 of 402 iii issued by Governor Doug Ducey, most transaction privilege taxes (TPT), including retail and restaurant revenues have dropped, housing and general development has slowed, and state-shared revenues are expected to be lower than originally anticipated. However, even in the face of these difficult times, the Town of Marana stands well-positioned to weather these financial difficulties, and continue to deliver exemplary business and customer service to our community. The combination of a strong first 3 quarters of FY20, multiple Federal level stimulus packages aimed at assisting individuals and small businesses, as well as sound budgeting practices over the years, has allowed us to identify and reprioritize our budget that preserves high profile projects, infrastructure development, and perhaps most importantly, retains our current staffing levels allowing the Town to maintain existing service levels to our residents in anticipation of economic recovery. Current Condition The local economy continued to improve during the current fiscal year until the onset of the COVID- 19 pandemic. Revenues in the General Fund grew by approximately 5.4% overall with growth in transaction privilege taxes of $1.5 million or 5.3% overall, which demonstrates continued growth and improvement in the economy. The Town was able to provide team based merit increases to employees while maintaining costs in commodities and services received in order to stay within budget. The General Fund expenditures were $8 million under budget. 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, 2020, the Town’s governmental funds reported a combined fund balance of $91.1 million, of which $41.1 million is unassigned and available for spending at the Town’s discretion. The Town, like most municipalities, is significantly dependent upon transaction privilege tax revenues which are subject to economic fluctuations. Transaction privilege tax revenues comprised 57.8% of general fund revenues. Of those revenues, retail comprised 52.7% and restaurants and bars, construction, and utilities comprised 32.1% 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. 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. In addition to our sound budgeting practices developed over the years, Town Staff has taken extra care in the preparation of the fiscal year 2021 budget due to COVID-19. Due to projected shortfalls in sales tax and other revenues, the Town is in a holding pattern on hiring for vacant positions and has placed several categories of expenses into restricted accounts, which ensures additional scrutiny on needs and expenditures. Another effort put forth in controlling cost was not issuing salary increases for fiscal year 2021. This coming fiscal year will be one of sacrifice and diligence, but our team has once again come together to demonstrate our Core Values and to continue to display dedication to our AMENDED Regular Council Meeting 01/19/2021 Page 153 of 402 iv community and the services we provide, while maintaining good stewardship and transparency of use of our taxpayer dollars. Accomplishments and Initiatives During fiscal year 2020, the Town had several significant accomplishments and initiatives. Ina Road Restoration, Interchange, and Santa Cruz River Bridge The Interstate 10/Ina Road Interchange improvement project required rerouting local street access to Interstate 10 to reconstruct a new interchange that stretches over the interstate and the Union Pacific railroad tracks and eliminates the at-grade crossing. The project also included widening I-10, widening Ina Road to two lanes in each direction between Silverbell Road and Camino de la Cruz, reconstructing the frontage roads and building two Ina Road bridges over the Santa Cruz River. This project met the long-range planning objectives of the Arizona Department of Transportation (ADOT), the Town of Marana, Pima County, Pima Association of Governments (PAG) and the Regional Transportation Authority (RTA) to improve interchange capacity, public safety, and operations. The ADOT and Town of Marana managed the RTA plan-approved project. The Town of Marana Ina Road Beautification Project was done in conjunction with the Ina Interchange project in an effort to improve portions of Ina Road. The project includes landscape, mill and pave, street light and traffic signal improvements along Ina Road between Camino de las Capas and the eastern Town limits. Honea Heights Neighborhood Park The Town completed the Honea Heights neighborhood park in one of the Town’s oldest neighborhoods. This park has many features and amenities for residents and families to enjoy: a state of the art playground, a basketball court, grass play area, and picnic ramada area. This park also has access to the regional shared use path. Marana Road Realignment The Marana Road realignment project was constructed for future plans of development in North Marana. The realignment of Marana road results in its terminus with Sandario road being relocated from just north of the Circle K to just south of the Marana Market. The relocated alignment will reside in the ultimate right of way for Marana road in a scenario where Tangerine Farms road is the primary roadway from the Marana interchange. 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. 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 beginning with the fiscal year ended June 30, 2017. Voters of the Town of Marana, on August 4, 2020, approved a four year extension of the alternative expenditure limitation. AMENDED Regular Council Meeting 01/19/2021 Page 154 of 402 v 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, 2019. This was the 12th 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, Terry Rozema Yiannis Kalaitzidis Interim Town Manager Finance Director AMENDED Regular Council Meeting 01/19/2021 Page 155 of 402 vi AMENDED Regular Council Meeting 01/19/2021 Page 156 of 402 vii TOWN OF MARANA, ARIZONA PRINCIPAL OFFICIALS OF THE TOWN OF MARANA FISCAL YEAR 2020 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 Terry Rozema, Interim Town Manager Erik Montague, Deputy Town Manager DEPARTMENT HEADS Jason Angell, Development Services Director Curry C. Hale, Human Resources Director Cherry Lawson, Town Clerk Jane Fairall, Interim Town Attorney Keith Brann, Town Engineer Yiannis Kalaitzidis, Finance Director Mo El-Ali, Public Works Director Steve Miller, Airport Director Reuben Nunez, Interim Police Chief Laine McDonald, 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 AMENDED Regular Council Meeting 01/19/2021 Page 157 of 402 viii TOWN OF MARANA, ARIZONA ORGANIZATIONAL CHART FISCAL YEAR 2020 AMENDED Regular Council Meeting 01/19/2021 Page 158 of 402 FINANCIAL SECTION AMENDED Regular Council Meeting 01/19/2021 Page 159 of 402 This page intentionally left blank AMENDED Regular Council Meeting 01/19/2021 Page 160 of 402 INDEPENDENT AUDITORS’ REPORT The Honorable Mayor and Town Council Town of Marana, Arizona Marana, Arizona Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Marana, Arizona, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. Tempe • Scottsdale • Casa Grande www.hhcpa.com 1AMENDED Regular Council Meeting 01/19/2021 Page 161 of 402 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Marana, Arizona, as of June 30, 2020, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund and the Highway User Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 13 to the financial statements, the 2019 financial statements have been restated to correct a misstatement. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and pension information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Marana, Arizona’s basic financial statements. The introductory section, the combining and individual fund financial statements and schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. 2AMENDED Regular Council Meeting 01/19/2021 Page 162 of 402 Other Information (Continued) 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. 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, 2020 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, 2020 3AMENDED Regular Council Meeting 01/19/2021 Page 163 of 402 This page intentionally left blank 4AMENDED Regular Council Meeting 01/19/2021 Page 164 of 402 MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) (Required Supplementary Information) 5AMENDED Regular Council Meeting 01/19/2021 Page 165 of 402 This page intentionally left blank 6AMENDED Regular Council Meeting 01/19/2021 Page 166 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 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, 2020. 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 $24.0 million or 6.4 percent from the previous fiscal year 2018- 19. The increase is primarily due to an increase in cash and capital assets and a decrease in deferred inflows. The increase in cash is due to revenue collections in excess of projections and reductions to expenses, specifically all travel related expenses starting in March. We also received $5.6 million in CARES funds. The increase in capital assets is primarily due to the construction in progress of the water treatment campuses and developer contributions of road, water, and wastewater infrastructure. The decrease in deferred inflows related to pensions is primarily due to a reduction in the changes in assumptions for the Arizona State Retirement System. •General revenues from governmental activities, excluding transfers, accounted for $58.5 million in revenue, or 62.9 percent of all revenues from governmental activities. Program specific revenues in the form of charges for services and grants and contributions accounted for $34.6 million or 37.1 percent of total revenues from governmental activities. The Town had $22.1 million of program revenues related to business-type activities. Overall revenues have increased by 13.9 percent, with increases in all categories except sales taxes and investment income. The largest increases in revenue in fiscal year 2019-20 was $12.2 million in operating and capital grants and contributions, $1.3 million in charges for services and $1.1 million in state shared revenues. •The General Fund had $52.8 million in fiscal year 2019-20 revenues, which primarily consisted of sales taxes, intergovernmental revenue and licenses, fees and permits. The General fund had $42.4 million of expenditures, and $4.7 million in required transfers out during the year. The $9.6 million fund balance increase is attributed to higher than anticipated revenues in sales taxes, investment income and licenses, fees and permits, unanticipated transfers in from CARES funds, as well as prudent use of Town funds for departmental expenditures. •Highway User Revenue Fund revenues continue to grow in fiscal year 2019-20 at $4.2 million. Expenditures were 64 percent higher than the previous year due to resuming previously delayed projects for the pavement preservation program. •Tangerine Farms Road Improvement District Debt Service Fund, which accounts for special assessments, had a $429,247 fund balance attributable to the accumulation of prepaid assessments and resources required for debt service payment. •The Transportation Fund had an increase in revenue of 5.5 percent in fiscal year 2019-20 due to increased tax revenues. There was a decrease of 49.7 percent in expenditures due to reduced pavement reconstruction projects. •The Other Special Revenue Fund, which accounts for grant related programs and projects, became a major fund in fiscal year 2019-20 due to the increase in unearned revenue, which totaled $2.5 million. This is primarily attributable to the unspent funds from the CARES funds. 7AMENDED Regular Council Meeting 01/19/2021 Page 167 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 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 8AMENDED Regular Council Meeting 01/19/2021 Page 168 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 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, Transportation Capital Fund, and Other Special Revenue 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 108. The Town adopts an annual budget and legally allocates (or appropriates) available monies for the General, Highway User Revenue, Other Special Revenue, Tangerine Farms Road Improvement District Debt Service, Transportation Capital, and other non-major governmental funds. Budgetary comparison statements are provided for the General Fund, Highway User Revenue Fund, and Other Special Revenue Fund within the basic financial statements on pages 40-42. Budgetary comparison schedules have been presented for the Town’s major debt and capital funds on pages 105-106, 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 32-42 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. 9AMENDED Regular Council Meeting 01/19/2021 Page 169 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 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 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 67 in addition to the information on pages 88-99 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 $400.1 million as of June 30, 2020. Noncurrent assets increased by $13.8 million or 3.1 percent due to the addition of capital assets and increased restricted cash for debt service purposes. The current assets increased by $15 million or 17.5 percent primarily due to an increase in cash. The current liabilities increased by $2 million or 10 percent, which is attributable to an increase in unearned revenue. Long-term liabilities increased by $4.9 million or 3.6 percent due to an increase in net pension liability, general obligation bonds payable, and loans payable. The increase in long-term liabilities was offset by decreases in revenue bonds payable and special assessment bonds due to regularly scheduled principal payments. 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, 2020 and June 30, 2019. 10AMENDED Regular Council Meeting 01/19/2021 Page 170 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 Governmental Activities Business-type Activities Total 2020 2019 2020 2019 2020 2019 Current and other assets $109,227,186 $96,247,879 $ 9,358,849 $ 3,832,658 $118,586,035 $100,080,537 Capital assets, net 303,776,864 304,616,026 133,807,290 122,681,253 437,584,154 427,297,279 Total assets, net 413,004,050 400,863,905 143,166,139 126,513,911 556,170,189 527,377,816 Deferred outflows related to pensions 7,360,900 7,122,319 242,121 336,775 7,603,021 7,459,094 Deferred charge on refunding 1,455,510 1,603,406 - - 1,455,510 1,603,406 Total deferred outflows of resources 8,816,410 8,725,725 242,121 336,775 9,058,531 9,062,500 Current and other liabilities 16,213,675 15,524,565 6,019,925 4,693,503 22,239,075 20,218,068 Long-term liabilities 109,533,832 110,413,950 31,246,634 25,432,980 140,780,466 135,846,930 Total liabilities 125,747,507 125,938,515 37,266,559 30,126,483 163,019,541 156,064,998 Deferred inflows related to pensions 1,916,755 3,153,390 128,975 247,476 2,045,730 3,400,866 Total deferred inflows of resources 1,916,755 3,153,390 128,975 247,476 2,045,730 3,400,866 Net position: Net investment in capital assets 244,996,219 243,685,340 102,911,048 98,286,785 347,907,267 341,972,125 Restricted 21,837,395 19,985,284 770,019 365,485 22,607,414 20,350,769 Unrestricted 27,322,584 16,827,101 2,331,659 (2,175,543) 29,654,243 14,651,558 Total net position $294,156,198 $280,497,725 $106,012,726 $96,476,727 $400,168,924 $376,974,452 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 $348 million or 86.9 percent, which represents the largest portion of net position. This portion of net position increased by $5.9 million as of June 30, 2020. The increase is due to a net increase in capital assets and offset by an increase in debt related to the acquisition of capital assets, primarily in the business-type activities. The second portion of net position of $22.6 million or 5.7 percent represents resources that are subject to external restrictions on how they may be utilized. The increase of $2.3 million or 11.1 percent is primarily due to the accumulation of resources in the South Transportation and Park Impact Fees funds. The third portion consists of unrestricted net position of $29.7 million or 7.4 percent. The unrestricted balance has increased by $15 million. The increase in governmental activities accounts for $10.5 million of the overall increase, which is primarily attributable to an increase in the General Fund unrestricted balance. As mentioned earlier, this is related to additional revenues and reduced expenditures. The business-type activities increase in unrestricted net position was $4.5 million. The increase in business-type activities was due to an overall increase in charges for services and a reduction in payments for goods and services, however the largest increase was in the Water fund. 11AMENDED Regular Council Meeting 01/19/2021 Page 171 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 Changes in net position. The Town’s total revenues for the fiscal year ended June 30, 2020, were $115.5 million, which was an overall increase of $14.1 million or 13.9 percent. All revenues were trending to exceed prior year collections until the onset of the COVID-19 pandemic. At the end of the fiscal year, all revenues exceeded prior year collections with the exception of sales taxes and investment income. The decreased sales taxes and investment income was a direct result of the national economic response to the pandemic. Although we saw a slight downturn in development activity beginning in April of 2020, the activity escalated in June of 2020 and is showing stable growth in additional commercial and residential building. The total cost of all programs and services was $91.5 million. The increase of $5.4 million or 6.3 percent is primarily attributable to increased spending in Public Safety, Highways and Streets, interest on long-term debt and Water. The increase in spending in the Public Safety function is due to a change in administration of the Pima County Regional 911 Telecommunications Program. Previously the utility invoices were paid directly by the State. Beginning in December, the State shifted the revenue and expenditure for the utilities to the Town. This was a net zero effect on net position, but increased both expenditures and revenues by $1.4 million. This program was transferred to Pima County beginning in fiscal year 2020-2021. The increase in spending in the Highways and Street function is due to resuming the pavement preservation program and an increase to depreciation expense. 12AMENDED Regular Council Meeting 01/19/2021 Page 172 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 Governmental Activities Business-type Activities Total 2020 2019 2020 2019 2020 2019 Revenues: Program revenues: Charges for services $11,045,881 $10,584,668 $ 8,505,655 $ 7,704,547 $19,551,536 $18,289,215 Operating grants and contributions 8,469,543 2,259,104 - - 8,469,543 2,259,104 Capital grants and contributions 15,046,692 13,678,662 13,603,706 8,977,317 28,650,398 22,655,979 General revenues: Sales taxes 40,704,792 41,680,345 - - 40,704,792 41,680,345 Property taxes 1,161,124 833,923 - - 1,161,124 833,923 Franchise taxes 548,703 513,202 - - 548,703 513,202 State shared revenues 13,098,547 12,012,620 - - 13,098,547 12,012,620 Investment income 1,964,946 1,954,182 56,796 77,140 2,021,742 2,031,322 Miscellaneous revenues 1,001,722 1,162,442 364,473 21,618 1,366,195 1,184,060 Total revenues 93,041,950 84,679,148 22,530,630 16,780,622 115,572,580 101,459,770 Expenses: General government 21,040,161 23,846,702 - - 21,040,161 23,846,702 Public safety 19,980,753 16,059,514 - - 19,980,753 16,059,514 Highways and streets 25,003,972 21,628,981 - - 25,003,972 21,628,981 Health and welfare 442,266 452,623 - - 442,266 452,623 Economic and community development 4,173,881 4,075,777 - - 4,173,881 4,075,777 Culture and recreation 6,121,683 5,293,684 - - 6,121,683 5,293,684 Interest on long-term debt 2,484,808 1,858,162 - - 2,484,808 1,858,162 Water - - 6,750,034 6,178,368 6,750,034 6,178,368 Wastewater - - 4,135,927 5,275,474 4,135,927 5,275,474 Airport - - 1,392,850 1,395,167 1,392,850 1,395,167 Total expenses 79,247,524 73,215,443 12,278,811 12,849,009 91,526,335 86,064,452 Increase/(decrease) in net position before transfers 13,794,426 11,463,705 10,251,819 3,931,613 24,046,245 15,395,318 Transfers (135,953) (687,684) 135,953 687,684 - - Increase/(decrease) in net position 13,658,473 10,776,021 10,387,772 4,619,297 24,046,245 15,395,318 Net position, beginning of year, as restated 280,497,725 269,721,704 95,624,954 91,857,430 376,122,679 361,579,134 Net position, end of year $294,156,198 $280,497,725 $106,012,726 $96,476,727 $400,168,924 $376,974,452 13AMENDED Regular Council Meeting 01/19/2021 Page 173 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 Governmental Activities. Governmental activities increased net position by $13.7 million for fiscal year ended June 30, 2020. This increase is attributable to unspent proceeds for capital projects and unrestricted funds. 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 $10.1 million, which contributed to the increase in governmental net position. 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, 2020 Year Ended June 30, 2019 Total Net (Expense)/ Total Net (Expense)/ Expenses Revenue Expenses Revenue Governmental Activities General government $ 21,040,161 $ (15,250,919) $ 23,846,702 $(18,533,251) Public safety 19,980,753 (14,157,799) 16,059,514 (15,017,500) Highways and streets 25,003,972 (10,788,675) 21,628,981 (11,770,786) Health and welfare 442,266 (334,967) 452,623 (333,394) Economic and community development 4,173,881 3,390,396 4,075,777 4,211,878 Culture and recreation 6,121,683 (5,058,636) 5,293,684 (3,391,794) Interest on long-term debt 2,484,808 (2,484,808) 1,858,162 (1,858,162) Total $ 79,247,524 $ (44,685,408) $ 73,215,443 $(46,693,009) Business-Type Activities Water 6,750,034 $ 6,038,049 6,178,368 $ 3,005,960 Wastewater 4,135,927 2,701,558 5,275,474 (1,220,628) Airport 1,392,850 1,090,943 1,395,167 2,047,523 Total $ 12,278,811 $ 9,830,550 $ 12,849,009 $ 3,832,855 • The cost of all governmental activities this year was $79.2 million. There was an 8.2 percent increase in governmental activities expenses, which as previously mentioned is due to an increase in long-term debt interest paid, public safety expenses and highways and streets expenses. • Net cost of governmental activities of $44.7 million was largely financed by general revenues, which are made up of primarily sales taxes totaling $40.7 million and state shared revenues of $13.1 million. • The Water fund expenses increased $0.6 million or 9.3 percent. This is primarily due to increased personnel costs and an increase in the loss on disposal of capital assets. • The Wastewater fund had an overall increase to operating expenses, however the increase was offset by a significant decrease in the loss on disposal of capital assets. The following graph shows the functional revenues and expenses of the governmental activities in order to demonstrate the extent to which the governmental functions produce direct revenues to offset related program costs. It should be noted that this graph is not intended to represent a full allocation to these functions. As 14AMENDED Regular Council Meeting 01/19/2021 Page 174 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 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 $34.6 million are 43.6 percent of expenses for fiscal year 2020, up from 36.2 percent a year earlier. As described earlier, this increase is attributable to higher collections for charges for services, grants, and contributions. As seen on the following graphs, the largest revenue source for the Town’s governmental activities is sales tax revenues at 43.7 percent, followed by capital grants and contributions at 16.2 percent, State shared revenues at 14.1 percent, and charges for services at 11.9 percent. This is consistent with the allocation of revenues collected in the previous year. The Town’s largest expense category is highways and streets at 31.6 percent, followed by general government at 26.5 percent, and public safety at 25.2 percent. The continuation of the pavement preservation program has placed the highways and streets expenses in the leading category. 15AMENDED Regular Council Meeting 01/19/2021 Page 175 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 16AMENDED Regular Council Meeting 01/19/2021 Page 176 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 Business-type Activities Business-type activities’ net position increased by $9.5 million for fiscal year ended June 30, 2020. This increase is largely related to capital contributions in the Water and Wastewater fund for developer contributed infrastructure. Charges for services increased slightly due to continued growth. Capital grants and contributions increased by $4.6 million or 51.5 percent. This was primarily due to an increase in infrastructure contributed to the Town from developers for Water and Wastewater related infrastructure. There was also an increase to impact fees collected, primarily due to an effort to collect previously uncollected revenues. Business-type activity expenses decreased by $0.6 million or 4.4 percent primarily due to a decrease in the loss on disposal of capital assets, which was offset by increases in personnel costs and depreciation expense. The Town’s largest overall business-type activity is the Water Utility with $6.8 million in expenses and $12.8 million in program revenues during the year. The second largest activity is the Wastewater Utility with $4.1 million in expenses and $6.8 million in program revenues, followed by the Airport with $1.4 million in expenses and $2.5 million in program revenues. With the exception of capital grants and contribution revenues, the expenses and revenues were fairly 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 61 percent followed by charges for services revenues at 38.1 percent. 17AMENDED Regular Council Meeting 01/19/2021 Page 177 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 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, 2020, the Town’s governmental funds reported a combined fund balance of $91.1 million, of which $41.1 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 $46.1 million. Revenues and expenditures increased slightly from the previous year. The primary increases in revenues were related to sales taxes and intergovernmental revenue. The increase in expenditures relates to team based increases for employees. The Transportation Fund had a fund balance of $16.9 million which reflected an increase of $3.5 million from a year earlier. While sales tax revenues increased slightly, expenditures decreased $5.7 million or 49.7 percent due to the completion of Ina Road pavement reconstruction and Coachline Blvd. pavement reconstruction projects in the prior year. 18AMENDED Regular Council Meeting 01/19/2021 Page 178 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 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 $106 million, $102.9 million comprised the funds’ net investment in capital assets. $0.8 million is restricted for debt service and unrestricted net position of $2.3 million. The factors concerning the finances of these funds, as well as the changes in net position, have been addressed previously in the discussion of the Town’s business-type activities. BUDGETARY HIGHLIGHTS The Town’s annual adopted budget established the legal level of expenditure control. Budgetary comparison statements are required for the General Fund and all major special revenue funds. These statements compare the original budget, the budget as amended throughout the year, and the actual revenues and expenditures. Budgetary schedules for other governmental funds are also presented in this report as other supplementary information. Although agriculture remains a major force in Marana’s economy, the Town has had an influx of residential and commercial development, which 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 $9.6 million. The General Fund budget and actual variances are shown on page 40. Amendments to the adopted budget may occur throughout the year between departments within the General Fund and between funds in all other funds in a legally permissible manner (see Note 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, 2020 the Town had invested $437.6 million in governmental and business-type capital assets (net of accumulated depreciation). Total depreciation expense for the year was $24.9 million, with $20.5 million attributed to governmental activities and $4.4 million to business-type activities. The following schedule presents capital asset balances for the fiscal years ended June 30, 2020 and June 30, 2019. Additional information on the Town’s capital assets can be found in Note 5. 19AMENDED Regular Council Meeting 01/19/2021 Page 179 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 Governmental Activities Business-type Activities Total As of As of As of As of As of As of June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Land $ 8,277,460 $ 8,277,460 $ 4,626,609 $ 4,442,146 $ 12,904,069 $ 12,719,606 Water rights - - 4,155,666 4,392,222 4,155,666 4,392,222 Construction in progress 14,963,310 18,470,334 10,112,355 6,581,163 25,075,665 25,051,497 Buildings and improvements 65,557,261 64,740,452 147,233,893 137,184,413 212,791,154 201,924,865 Machinery and equipment 25,621,255 24,245,618 3,628,280 1,756,329 29,249,535 26,001,947 Infrastructure 430,158,240 410,207,775 - - 430,158,240 410,207,775 Less: Accumulated depreciation (240,800,662) (221,325,613) (35,949,513) (31,675,020) (276,750,175) (253,000,633) Total $303,776,864 $304,616,026 $133,807,290 $122,681,253 $437,584,154 $427,297,279 Major capital asset events during the current fiscal year included the following: • Completion of the design and construction of Marana Road Realignment for $2.5 million. • Completion of the construction of the Ina Road Bridge for $5.7 million. • Design and reconstruction of Coachline Boulevard (construction in progress as of the close of the fiscal year had reached $3.9 million). • Design and reconstruction of Ina Road (construction in progress as of the close of the fiscal year had reached $3.7 million). • Design and extension of Adonis Road (construction in progress as of the close of the fiscal year had reached $1.3 million). • Design and construction of the Airline/Lambert water treatment campus (construction in progress as of the close of the fiscal year had reached $4 million). • Design and construction of the Picture Rocks water treatment campus (construction in progress as of the close of the fiscal year had reached $3.9 million). • Design and construction of the Adonis sewer connection conversion (construction in progress as of the close of the fiscal year had reached $910,000). • Completion of the Supervisory Control and Data Acquisition (SCADA) system upgrade for the Water system for $1.2 million. • Completion of the design and construction to rehab portions of the Airport apron and taxiway for $6.2 million. 20AMENDED Regular Council Meeting 01/19/2021 Page 180 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 Debt Administration. At year-end, the Town had $108 million in long-term debt obligations outstanding with $7.1 million due within one year. The Town had new debt adding $10.2 million. The Town also had reductions of $8.1 million during the current fiscal year due to regularly scheduled principal payments and premium amortizations. This resulted in an overall increase to debt of $2.1 million. The following table presents a summary of the Town’s outstanding debt for the fiscal years ended June 30, 2020 and June 30, 2019. Additional information on the Town’s long-term obligations can be found in Note 6. Governmental Activities Business-type Activities Total 2020 2019 2020 2019 2020 2019 General obligation bonds $14,215,000 $11,385,000 $ - $ - $ 14,215,000 $ 11,385,000 Revenue bonds 45,000,000 47,945,000 19,780,000 19,780,000 64,780,000 67,725,000 Revenue bonds – Direct Placements 4,027,000 4,706,000 576,000 760,000 4,603,000 5,466,000 Special assessment bonds 9,552,000 12,126,000 - - 9,552,000 12,126,000 Loan payable - - 9,560,823 3,503,598 9,560,823 3,503,598 Deferred bond premium 5,116,387 5,507,092 331,182 350,870 5,447,569 5,857,962 Total $77,910,387 $81,669,092 $30,248,005 $24,394,468 $108,158,392 $106,063,560 ECONOMIC FACTORS AND NEXT YEAR’S BUDGET The Town of Marana completed the development of its Make Marana 2040 General Plan, which was approved by voters on August 4, 2020. 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. In addition to our sound budgeting practices developed over the years, Town Staff has taken extra care in the preparation of the fiscal year 2020-2021 budget due to COVID-19. The 2020-21 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. A key concept at the heart of the Town and our operations is the idea of Innovation. By investing in strategic software deployments, and implementing these effectively, we can streamline internal services that lead to better outcomes for our customers. We will continue to thoughtfully make investments in new positions when necessary and feasible to better enhance our services to our customers. There are also many additional infrastructure investments that we are making around our community. The 2020-21 budget increased by $5.5 million or 3.8%. Revenues and other financing sources for the fiscal year 2020-2021 budget are $108.3 million. The financial plan assumes that $43 million in fund balance/equity will be 21AMENDED Regular Council Meeting 01/19/2021 Page 181 of 402 TOWN OF MARANA, ARIZONA MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) YEAR ENDED JUNE 30, 2020 used to complete previously funded projects and other onetime expenditures approved by council. The budget is structurally balanced with ongoing revenues supporting ongoing program expenditures. The budget document is the comprehensive decision making tool resulting from the annual budget process. The budget is a long-range plan by which financial policy is implemented and controlled. CONTACTING THE TOWN’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, and investors and creditors with a general overview of the Town’s finances and to demonstrate the Town’s accountability for the resources it receives. If you have questions about this report or need additional information, contact the Finance Department, Town of Marana, Arizona at 11555 West Civic Center Drive, Marana, Arizona 85653, or visit www.MaranaAZ.gov. 22AMENDED Regular Council Meeting 01/19/2021 Page 182 of 402 BASIC FINANCIAL STATEMENTS 23AMENDED Regular Council Meeting 01/19/2021 Page 183 of 402 This page intentionally left blank 24AMENDED Regular Council Meeting 01/19/2021 Page 184 of 402 GOVERNMENT-WIDE FINANCIAL STATEMENTS 25AMENDED Regular Council Meeting 01/19/2021 Page 185 of 402 This page intentionally left blank 26AMENDED Regular Council Meeting 01/19/2021 Page 186 of 402 The notes to the financial statements are an integral part of this statement. TOWN OF MARANA, ARIZONA STATEMENT OF NET POSITION JUNE 30, 2020 Governmental Activities Business-type Activities Total ASSETS Current assets: Cash and cash equivalents 76,886,162$ 10,462,186$ 87,348,348$ Property taxes receivable 5,266 - 5,266 Accounts receivable 1,822,131 1,367,552 3,189,683 Interest receivable 96,252 - 96,252 Due from other governments 6,124,211 3,513,908 9,638,119 Internal balances 931,332 (931,332) - Prepaid items 285,924 90,795 376,719 Total current assets 86,151,278 14,503,109 100,654,387 Noncurrent assets: Accounts receivable 7,831,000 - 7,831,000 Restricted cash and investments 9,023,908 1,076,740 10,100,648 Advances 6,221,000 (6,221,000) - Capital assets not depreciated 23,240,770 18,894,630 42,135,400 Capital assets (net of depreciation)280,536,094 114,912,660 395,448,754 Total noncurrent assets 326,852,772 128,663,030 455,515,802 Total assets 413,004,050 143,166,139 556,170,189 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 7,360,900 242,121 7,603,021 Deferred charge on refunding 1,455,510 - 1,455,510 Total deferred outflows of resources 8,816,410 242,121 9,058,531 LIABILITIES Current liabilities: Accounts payable 2,343,380 2,579,385 4,922,765 Retainage payable 525,768 648,237 1,174,005 Accrued payroll and employee benefits 1,078,159 83,907 1,162,066 Unearned revenue 2,736,144 2,178 2,738,322 Deposits held for others 420,113 801,944 1,222,057 Due to other government 68,639 245,211 313,850 Claims payable 245,749 - 245,749 Accrued interest payable 1,477,844 470,436 1,948,280 Compensated absences 1,300,879 128,126 1,429,005 Loan payable - 874,501 874,501 General obligation bonds - CFD 570,000 - 570,000 Special assessment bonds - TFRID 1,721,000 - 1,721,000 Revenue bonds 3,726,000 186,000 3,912,000 Total current liabilities 16,213,675 6,019,925 22,233,600 Noncurrent liabilities: Compensated absences 144,541 14,236 158,777 Net pension liablity 37,495,904 2,044,894 39,540,798 Loan payable - 8,686,322 8,686,322 General obligation bonds - CFD 14,530,477 - 14,530,477 Special assessment bonds - TFRID 7,831,000 - 7,831,000 Revenue bonds 49,531,910 20,501,182 70,033,092 Total non-current liabilities 109,533,832 31,246,634 140,780,466 Total liabilities 125,747,507 37,266,559 163,014,066 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions 1,916,755 128,975 2,045,730 Total deferred inflows of resources 1,916,755 128,975 2,045,730 NET POSITION Net investment in capital assets 244,996,219 102,911,048 347,907,267 Restricted for: Capital projects 13,727,256 - 13,727,256 Debt service - 770,019 770,019 General government 3,396,842 - 3,396,842 Public safety 1,218,108 - 1,218,108 Highways and streets 3,369,704 - 3,369,704 Economic and community development 125,485 - 125,485 Unrestricted 27,322,584 2,331,659 29,654,243 Total net position 294,156,198$ 106,012,726$ 400,168,924$ 27AMENDED Regular Council Meeting 01/19/2021 Page 187 of 402 Program Revenues Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Primary Government Governmental activities: General government 21,040,161$ 5,247,216$ 511,546$ 30,480$ Public safety 19,980,753 69,999 5,752,955 - Highways and streets 25,003,972 46,959 2,108,889 12,059,449 Health and welfare 442,266 88,796 18,503 - Economic and community development 4,173,881 5,396,021 64,023 2,104,233 Culture and recreation 6,121,683 196,890 13,627 852,530 Interest on long-term debt 2,484,808 - - - Total governmental activities 79,247,524 11,045,881 8,469,543 15,046,692 Business-type activities: Water 6,750,034 6,259,621 - 6,528,462 Wastewater 4,135,927 1,873,203 - 4,964,282 Airport 1,392,850 372,831 - 2,110,962 Total business-type activities 12,278,811 8,505,655 - 13,603,706 Total primary government 91,526,335$ 19,551,536$ 8,469,543$ 28,650,398$ General revenues: Taxes: Sales taxes Property taxes Franchise taxes State shared revenues, unrestricted Investment income Miscellaneous Transfers Total general revenues and transfers Changes in net position Net position, beginning of year, as restated Net position, end of year The notes to the financial statements are an integral part of this statement. TOWN OF MARANA, ARIZONA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2020 28AMENDED Regular Council Meeting 01/19/2021 Page 188 of 402 Net (Expense) Revenue and Changes in Net Position Governmental Activities Business-type Activities Totals (15,250,919)$ -$ (15,250,919)$ (14,157,799) - (14,157,799) (10,788,675) - (10,788,675) (334,967) - (334,967) 3,390,396 - 3,390,396 (5,058,636) - (5,058,636) (2,484,808) - (2,484,808) (44,685,408) - (44,685,408) - 6,038,049 6,038,049 - 2,701,558 2,701,558 - 1,090,943 1,090,943 - 9,830,550 9,830,550 (44,685,408) 9,830,550 (34,854,858) 40,704,792 - 40,704,792 1,161,124 - 1,161,124 548,703 - 548,703 13,098,547 - 13,098,547 1,964,946 56,796 2,021,742 1,001,722 364,473 1,366,195 (135,953) 135,953 - 58,343,881 557,222 58,901,103 13,658,473 10,387,772 24,046,245 280,497,725 95,624,954 376,122,679 294,156,198$ 106,012,726$ 400,168,924$ 29AMENDED Regular Council Meeting 01/19/2021 Page 189 of 402 This page intentionally left blank 30AMENDED Regular Council Meeting 01/19/2021 Page 190 of 402 FUND FINANCIAL STATEMENTS 31AMENDED Regular Council Meeting 01/19/2021 Page 191 of 402 General Fund Highway User Revenue Other Special Revenue Fund ASSETS Cash and cash equivalents 38,662,637$ 3,284,539$ 3,570,117$ Property taxes receivable - - - Accounts receivable 245,348 - - Special assessments receivable - - - Interest receivable 23,022 - - Development agreement receivable - - - Due from other governments 3,932,101 288,785 606,507 Due from other funds 5,650,456 - - Prepaid items 281,739 - 185 Restricted cash and investments - - - Total assets 48,795,303$ 3,573,324$ 4,176,809$ LIABILITIES Accounts payable 941,516$ 203,620$ 416,104$ Retainage payable 61,932 194,784 - Accrued payroll and employee benefits 1,033,877 - 28,071 Due to other funds - - - Due to other governments 68,639 - - Deposits held for others 357,713 - - Unearned revenue 220,772 - 2,514,526 Total liabilities 2,684,449 398,404 2,958,701 DEFERRED INFLOWS OF RESOURCES Unavailable revenue - - 102,223 Total deferred inflows of resources - - 102,223 FUND BALANCES (DEFICITS) Nonspendable 4,102,739 - 185 Restricted - 3,174,920 1,115,700 Committed - -- Unassigned 42,008,115 - - Total fund balances (deficits)46,110,854 3,174,920 1,115,885 Total liabilities, deferred inflow of resources, and fund balances (deficits) 48,795,303$ 3,573,324$ 4,176,809$ TOWN OF MARANA, ARIZONA BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2020 The notes to the financial statements are an integral part of this statement. 32AMENDED Regular Council Meeting 01/19/2021 Page 192 of 402 Tangerine Farms Improvement District Debt Service Transportation Non-Major Governmental Funds Total Governmental Funds 429,247$ 10,868,991$ 18,371,533$ 75,187,064$ - - 5,266 5,266 - - 1,001 246,349 9,346,385 - - 9,346,385 - 64,910 8,320 96,252 - - 60,397 60,397 - 970,501 326,317 6,124,211 - 2,400,000 - 8,050,456 - - 4,000 285,924 - 3,302,596 5,721,312 9,023,908 9,775,632$ 17,606,998$ 24,498,146$ 108,426,212$ -$ 487,993$ 99,465$ 2,148,698$ - 268,427 625 525,768 - - 3,757 1,065,705 - - 898,124 898,124 - - - 68,639 - - 62,400 420,113 - - 846 2,736,144 - 756,420 1,065,217 7,863,191 9,346,385 - 9,060 9,457,668 9,346,385 - 9,060 9,457,668 - - 4,000 4,106,924 429,247 3,302,596 22,978,589 31,001,052 - 13,547,982 1,314,081 14,862,063 - - (872,801) 41,135,314 429,247 16,850,578 23,423,869 91,105,353 9,775,632$ 17,606,998$ 24,498,146$ 108,426,212$ 33AMENDED Regular Council Meeting 01/19/2021 Page 193 of 402 This page intentionally left blank 34AMENDED Regular Council Meeting 01/19/2021 Page 194 of 402 Total governmental fund balances 91,105,353$ 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 544,577,526$ Less accumulated depreciation (240,800,662) 303,776,864 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 (1,445,420) Revenue bonds payable (49,027,000) General obligation bonds payable (14,215,000) Special assessment bonds (9,552,000) Net pension liability (37,495,904) Accrued interest payable (1,477,844) (113,213,168) 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.1,246,213 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 (5,116,387) Deferred charge on refunding 1,455,510 Deferred inflows related to pensions (1,916,755) Deferred outflows related to pensions 7,360,900 1,783,268 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 111,283 Special assessments revenue 9,346,385 9,457,668 Net position of governmental activities 294,156,198$ 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, 2020 35AMENDED Regular Council Meeting 01/19/2021 Page 195 of 402 General Fund Highway User Revenue Other Special Revenue Fund Revenues: Sales taxes 30,497,790$ -$ -$ Property taxes - - - Intergovernmental 13,098,547 3,925,940 5,711,281 Licenses, fees & permits 5,933,644 256,693 - Fines, forfeitures & penalties 515,514 - 16,050 Charges for services 534,495 - - Lease income 157,404 - - Special assessments - - - Contributions 37,505 - - Investment income 1,409,294 18,920 24,480 Miscellaneous 655,961 - - Total revenues 52,840,154 4,201,553 5,751,811 Expenditures: Current - General government 13,277,870 - - Public safety 15,664,323 - 2,687,566 Highways and streets 2,746,028 4,052,648 - Health and welfare 283,891 - - Economic and community development 4,285,405 - - Culture and recreation 4,167,113 - - Capital outlay 1,978,194 28,369 - Debt service - Principal retirement - - - Interest and fiscal charges - - - Bond issuance costs - - - Total expenditures 42,402,824 4,081,017 2,687,566 Excess (deficiency) of revenues over expenditures 10,437,330 120,536 3,064,245 Other financing sources (uses): Issuance of debt - - - Premium on bonds issued - - - Proceeds from sale of capital assets 135,361 - - Transfers in 3,731,959 37,500 - Transfers out (4,749,652) - (3,148,411) Total other financing sources (uses)(882,332) 37,500 (3,148,411) Changes in fund balances 9,554,998 158,036 (84,166) Fund balances (deficits), beginning of year 36,555,856 3,016,884 1,200,051 Fund balances (deficits), end of year 46,110,854$ 3,174,920$ 1,115,885$ TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 The notes to the financial statements are an integral part of this statement. 36AMENDED Regular Council Meeting 01/19/2021 Page 196 of 402 Tangerine Farms Improvement District Debt Service Transportation Non-Major Governmental Funds Total Governmental Funds -$ 8,657,955$ 1,549,047$ 40,704,792$ - - 1,161,124 1,161,124 - - 231,488 22,967,256 - - 2,901,677 9,092,014 - - 59,279 590,843 - - - 534,495 - - - 157,404 2,091,138 - - 2,091,138 - 1,512 26,237 65,254 - 302,457 209,795 1,964,946 - - 10,730 666,691 2,091,138 8,961,924 6,149,377 79,995,957 - 979,396 669,762 14,927,028 - - - 18,351,889 - - 21,596 6,820,272 - - - 283,891 - - 319,652 4,605,057 - - 39,613 4,206,726 - 4,739,951 4,347,484 11,093,998 2,574,000 - 3,989,000 6,563,000 230,517 - 2,753,843 2,984,360 - - 385,884 385,884 2,804,517 5,719,347 12,526,834 70,222,105 (713,379) 3,242,577 (6,377,457) 9,773,852 - - 3,195,000 3,195,000 - - 68,460 68,460 - - - 135,361 - 916,011 6,715,615 11,401,085 - (691,899) (2,941,761) (11,531,723) - 224,112 7,037,314 3,268,183 (713,379) 3,466,689 659,857 13,042,035 1,142,626 13,383,889 22,764,012 78,063,318 429,247$ 16,850,578$ 23,423,869$ 91,105,353$ 37AMENDED Regular Council Meeting 01/19/2021 Page 197 of 402 This page intentionally left blank 38AMENDED Regular Council Meeting 01/19/2021 Page 198 of 402 Net changes in fund balances - total governmental funds 13,042,035$ 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 9,566,807$ Less current year depreciation (20,492,735) (10,925,928) 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 (3,195,000) Premium on bonds (68,460) Special assessment bond retirement 2,574,000 General obligation bond retirement 365,000 Revenue bond principal retirement 3,624,000 3,299,540 Contributions of infrastructure assets are not recorded as revenues in the governmental funds.10,089,010 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 20,961 Developer contributions (7,663) Intergovernmental revenue 60,576 Special assessments (1,819,200) Compensated absences (263,860) Proceeds from the sale of capital assets (135,361) Loss on sale of assets 133,118 Amortization of deferred charges 311,268 (1,700,161) 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 3,811,545 Pension revenue 6,429 Pension expense (4,775,960) (957,986) 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.811,963 Change in net position in governmental activities 13,658,473$ 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, 2020 39AMENDED Regular Council Meeting 01/19/2021 Page 199 of 402 The notes to the financial statements are an integral part of this statement. TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND YEAR ENDED JUNE 30, 2020 Budgeted Amounts Original Final Actual Revenues: Sales taxes 26,910,247$ 26,910,247$ 30,497,790$ 3,587,543$ Intergovernmental 12,840,139 12,840,139 13,098,547 258,408 Licenses, fees & permits 4,822,512 4,822,512 5,933,644 1,111,132 Fines, forfeitures & penalties 402,000 402,000 515,514 113,514 Charges for services 594,750 594,750 534,495 (60,255) Lease income 125,000 125,000 157,404 32,404 Contributions 44,600 44,600 37,505 (7,095) Investment income 777,000 777,000 1,409,294 632,294 Miscellaneous 572,419 572,419 655,961 83,542 Total revenues 47,088,667 47,088,667 52,840,154 5,751,487 Expenditures: General government: General government 7,074,932 5,056,403 2,499,092 2,557,311 Town council 349,616 349,616 330,926 18,690 Town clerk 566,128 566,128 436,169 129,959 Town manager 1,870,089 1,870,089 1,558,958 311,131 Human resources 1,142,205 1,142,205 806,860 335,345 Facilities 2,082,310 1,982,310 1,452,373 529,937 Finance 1,522,424 1,522,424 1,277,600 244,824 Legal 1,043,625 1,044,275 1,044,260 15 Technology services 3,006,286 3,006,286 2,795,108 211,178 Municipal courts 1,156,666 1,156,666 1,076,524 80,142 Public Safety: Police 14,608,029 14,693,529 14,693,191 338 Building safety 1,182,839 1,182,839 956,754 226,085 Code Enforcement 30,125 30,125 14,378 15,747 Highways and streets: Public works 3,103,810 3,103,810 2,746,028 357,782 Health and welfare: Animal Services 324,043 324,043 283,891 40,152 Economic and community development: Development services 3,656,774 3,656,774 3,276,856 379,918 Economic development and tourism 287,827 287,827 220,847 66,980 Community development 842,484 842,484 787,702 54,782 Culture and recreation: Parks and recreation 5,091,605 4,975,475 4,167,113 808,362 Capital outlay 2,809,730 3,587,530 1,978,194 1,609,336 Total expenditures 51,751,547 50,380,838 42,402,824 7,978,014 Excess (deficiency) of revenues over expenditures (4,662,880) (3,292,171) 10,437,330 13,729,501 Other financing sources (uses): Proceeds from the sale of capital assets 100,000 100,000 135,361 35,361 Transfers in - - 3,731,959 3,731,959 Transfers out (4,545,542) (4,545,542) (4,749,652) (204,110) Total other financing sources (uses)(4,445,542) (4,445,542) (882,332) 3,563,210 Changes in fund balances (9,108,422) (7,737,713) 9,554,998 17,292,711 Fund balances, beginning of year - - 36,555,856 36,555,856 Fund balances, end of year (9,108,422)$ (7,737,713)$ 46,110,854$ 53,848,567$ Variance - Positive (Negative) 40AMENDED Regular Council Meeting 01/19/2021 Page 200 of 402 The notes to the financial statements are an integral part of this statement. Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Intergovernmental 3,640,329$ 3,640,329$ 3,925,940$ 285,611$ Licenses, fees & permits - - 256,693 256,693 Investment income 15,000 15,000 18,920 3,920 Total revenues 3,655,329 3,655,329 4,201,553 546,224 Expenditures: Current - Highways and streets 4,906,881 4,906,881 4,052,648 854,233 Capital outlay 200,000 200,000 28,369 171,631 Total expenditures 5,106,881 5,106,881 4,081,017 1,025,864 Excess (deficiency) of revenues over expenditures (1,451,552) (1,451,552) 120,536 1,572,088 Other financing sources (uses): Transfers in - - 37,500 37,500 Total other financing sources (uses)- - 37,500 37,500 Change in fund balance (1,451,552) (1,451,552) 158,036 1,609,588 Fund balances, beginning of year - - 3,016,884 3,016,884 Fund balances, end of year (1,451,552)$ (1,451,552)$ 3,174,920$ 4,626,472$ TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - HIGHWAY USER REVENUE FUND YEAR ENDED JUNE 30, 2020 41AMENDED Regular Council Meeting 01/19/2021 Page 201 of 402 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Intergovernmental 3,424,174$ 3,424,174$ 5,711,281$ 2,287,107$ Fines, forfeitures & penalties 8,000 8,000 16,050 8,050 Investment income 7,500 7,500 24,480 16,980 Miscellaneous 5,000 5,000 - (5,000) Total revenues 3,444,674 3,444,674 5,751,811 2,307,137 Expenditures: Current - General government 2,390,000 2,464,891 - 2,464,891 Public safety 1,302,546 1,226,315 2,687,566 (1,461,251) Total expenditures 3,692,546 3,691,206 2,687,566 1,003,640 Excess (deficiency) of revenues over expenditures (247,872) (246,532) 3,064,245 3,310,777 Other financing sources (uses): Transfer in 100,000 100,000 - (100,000) Transfer out - - (3,148,411) (3,148,411) Total other financing sources (uses)100,000 100,000 (3,148,411) (3,248,411) Change in fund balance (147,872) (146,532) (84,166) 62,366 Fund balances, beginning of year - - 1,200,051 1,200,051 Fund balances, end of year (147,872)$ (146,532)$ 1,115,885$ 1,262,417$ TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - OTHER SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2020 42AMENDED Regular Council Meeting 01/19/2021 Page 202 of 402 TOWN OF MARANA, ARIZONA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2020 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds ASSETS Current assets: Cash and cash equivalents 6,517,961$ 3,944,225$ -$ 10,462,186$ 1,699,098$ Accounts receivable 791,440 398,187 177,925 1,367,552 - Due from governments 2,789,270 210,214 514,424 3,513,908 - Prepaid items 90,795 - - 90,795 - Total current assets 10,189,466 4,552,626 692,349 15,434,441 1,699,098 Noncurrent assets: Restricted cash 672,206 404,534 - 1,076,740 - Capital assets not depreciated 13,503,611 3,832,946 1,558,073 18,894,630 - Capital assets (net of depreciation)34,724,232 61,564,010 18,624,418 114,912,660 - Total noncurrent assets 48,900,049 65,801,490 20,182,491 134,884,030 - Total assets 59,089,515 70,354,116 20,874,840 150,318,471 1,699,098 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions 183,036 36,449 22,636 242,121 - Total deferred outflows of resources 183,036 36,449 22,636 242,121 - LIABILITIES Current liabilities: Accounts payable 2,351,534 165,841 62,010 2,579,385 194,682 Retainage payable 583,366 64,871 - 648,237 - Accrued payroll and employee benefits 61,177 14,807 7,923 83,907 12,454 Claims payable - - - - 245,749 Compensated absences 91,763 19,533 16,830 128,126 - Due to other funds - 250,000 681,332 931,332 - Deposits held for others 801,944 - - 801,944 - Due to other governments 245,211 - - 245,211 - Bonds payable - current 186,000 - - 186,000 - Loan payable - current 844,790 29,711 - 874,501 - Interest payable 65,902 404,534 - 470,436 - Unearned revenue - - 2,178 2,178 - Total current liabilities 5,231,687 949,297 770,273 6,951,257 452,885 Noncurrent liabilities: Advances - 5,261,943 959,057 6,221,000 - Compensated absences 10,196 2,170 1,870 14,236 - Bonds payable 390,000 20,111,182 - 20,501,182 - Loan payable 8,640,817 45,505 - 8,686,322 - Net pension liability 1,615,043 237,046 192,805 2,044,894 - Total non-current liabilities 10,656,056 25,657,846 1,153,732 37,467,634 - Total liabilities 15,887,743 26,607,143 1,924,005 44,418,891 452,885 DEFERRED INFLOWS OF RESOURCES Resources related to pensions 110,689 5,382 12,904 128,975 - Total deferred inflows of resources 110,689 5,382 12,904 128,975 - NET POSITION Net investment in capital assets 37,582,870 45,145,687 20,182,491 102,911,048 - Restricted for debt service 365,485 404,534 - 770,019 - Unrestricted 5,325,764 (1,772,181) (1,221,924) 2,331,659 1,246,213 Total net position 43,274,119$ 43,778,040$ 18,960,567$ 106,012,726$ 1,246,213$ The notes to the financial statements are an integral part of this statement. 43AMENDED Regular Council Meeting 01/19/2021 Page 203 of 402 TOWN OF MARANA, ARIZONA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2020 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds Operating revenues: Licenses, fees & permits 84,659$ 49,513$ -$ 134,172$ -$ Charges for services 6,174,962 1,823,690 372,831 8,371,483 4,589,404 Miscellaneous 116,500 - 21,026 137,526 - Total operating revenues 6,376,121 1,873,203 393,857 8,643,181 4,589,404 Operating expenses: Personnel costs 2,011,253 552,115 300,396 2,863,764 - Contractual services 166,342 170,483 38,559 375,384 824,568 Commodities 1,688,906 335,626 35,890 2,060,422 - Other 1,208,730 128,865 60,292 1,397,887 2,952,873 Depreciation expense 1,255,989 2,159,457 957,713 4,373,159 - Total operating expenses 6,331,220 3,346,546 1,392,850 11,070,616 3,777,441 Operating income (loss)44,901 (1,473,343) (998,993) (2,427,435) 811,963 Nonoperating revenues (expenses): Contributions 226,947 - - 226,947 - Investment income 41,290 15,506 - 56,796 - Interest expense (61,739) (789,381) - (851,120) - Gain (loss) on disposal of capital assets (357,076) - - (357,076) - Total nonoperating revenues (expenses)(150,578) (773,875) - (924,453) - Net income (loss) before contributions and transfers (105,677) (2,247,218) (998,993) (3,351,888) 811,963 Development fees 3,902,178 2,309,682 - 6,211,860 - Capital contributions 2,631,600 2,654,600 2,110,962 7,397,162 - Transfers in 1,035,375 908,233 910,680 2,854,288 - Transfers out (1,818,375) (905,275) - (2,723,650) - Changes in net position 5,645,101 2,720,022 2,022,649 10,387,772 811,963 Net position, beginning of year, as restated 37,629,018 41,058,018 16,937,918 95,624,954 434,250 Net position, end of year 43,274,119$ 43,778,040$ 18,960,567$ 106,012,726$ 1,246,213$ The notes to the financial statements are an integral part of this statement. 44AMENDED Regular Council Meeting 01/19/2021 Page 204 of 402 Business-type Activities Governmental Activities Water Wastewater Airport Total Enterprise Funds Internal Service Funds Cash flows from operating activities: Received from customers 6,325,058$ 1,769,715$ 344,833$ 8,439,606$ 4,589,404$ Payments to suppliers for goods and services (1,551,028) (538,322) (1,090,766) (3,180,116) (3,970,499) Payments to employees for services (1,924,096) (527,354) (293,345) (2,744,795) - Other receipts/payments 116,500 49,513 1,036,297 1,202,310 12,454 Net cash provided by (used for) operating activities 2,966,434 753,552 (2,981) 3,717,005 631,359 Cash flows from non-capital activities: Interfund borrowing - - (719,364) (719,364) - Contributions 226,947 - - 226,947 - Transfers in 1,035,375 435,801 910,680 2,381,856 - Transfers out (1,345,943) (905,275) - (2,251,218) - Net cash provided by (used for) non-capital activities (83,621) (469,474) 191,316 (361,779) - Cash flows from capital activities and related financing activities: Capital grants received - 349,956 2,110,962 2,460,918 - Development fees received 3,902,178 2,309,682 - 6,211,860 - Loan proceeds 4,487,011 104,200 - 4,591,211 - Principal payments (1,007,469) (28,984) - (1,036,454) - Interest paid on debt (49,767) (809,069) - (858,836) - Proceeds from sale of capital assets 31,379 - - 31,379 - Acquisition and construction of capital assets (8,450,922) (782,147) (2,299,297) (11,532,366) - Net cash provided by (used for) capital activities (1,087,590) 1,143,638 (188,335) (132,287) - Cash flows from investing activities: Interest on investments 41,290 15,506 - 56,796 - Net cash provided by investing activities 41,290 15,506 - 56,796 - Net increase (decrease) in cash and cash equivalents 1,836,513 1,443,222 - 3,279,735 631,359 Cash and cash equivalents, beginning of year 5,353,654 2,905,537 - 8,259,191 1,067,739 Cash and cash equivalents, end of year 7,190,167$ 4,348,759$ -$ 11,538,926$ 1,699,098$ Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating (loss)44,901$ (1,473,343)$ (998,993)$ (2,427,435)$ 811,963$ Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 1,255,989 2,159,457 957,713 4,373,159 - Changes in assets and liabilities: (Increase) decrease in accounts receivable 63,071 (53,975) (32,824) (23,728) - Decrease in due from other governments - - 1,015,271 1,015,271 - (Increase) decrease in prepaid items (24,423) - 2,648 (21,775) - Decrease in deferred outflows of resources related to pensions 55,704 31,125 7,826 94,655 Increase (decrease) in accounts payable 1,512,950 96,652 (956,025) 653,577 (136,327) (Decrease) in claims payable - - - - (56,731) Increase in accrued payroll 28,017 11,068 (5,634) 33,451 12,454 Increase in compensated absences payable 35,511 380 1,308 37,199 - Increase in accrued liabilities - - 2,178 2,178 - Increase in deposits held for others 25,800 - - 25,800 - Increase in due to other governments 989 - - 989 - Increase in net pension liability 49,955 7,062 15,148 72,165 - (Decrease) in deferred inflows of resources related to pensions (82,030) (24,874) (11,597) (118,501) - Net cash provided (used) by operating activities 2,966,434$ 753,552$ (2,981)$ 3,717,005$ 631,359$ Noncash investing, capital and financing activities: Capital contributions 2,626,285 (2,598,683) - 27,602 - Transfer in (out) of capital assets (472,432) 472,432 - -- Transfer in governmental capital asset 5,315 - - 5,315 Amortization of bond premium - (19,688) - - - Loss on disposal of capital assets (357,076) - - (357,076) - Reconciliation of cash and cash equivalents to the statement of net position: Cash and cash equivalents 6,517,961$ 3,944,225$ -$ 10,462,186$ 1,699,098$ Restricted cash 672,206 404,534 - 1,076,740 - Total cash and cash equivalents 7,190,167$ 4,348,759$ -$ 11,538,926$ 1,699,098$ TOWN OF MARANA, ARIZONA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2020 The notes to the financial statements are an integral part of this statement. 45AMENDED Regular Council Meeting 01/19/2021 Page 205 of 402 This page intentionally left blank 46AMENDED Regular Council Meeting 01/19/2021 Page 206 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing government accounting and financial reporting principles. A. Reporting Entity The Town of Marana, Arizona (the Town) was incorporated on March 21, 1977, under the provisions of the Constitution of Arizona and the Arizona Revised Statutes. The Town operates under a separately elected council-mayor form of government. All funds and entities related to the Town that are controlled by the Mayor and Council are included in the annual financial report. Control is determined on the basis of budget adoption, taxing authority, and the ability to significantly influence operations and accountability for fiscal matters. The Town provides a full range of services including general government, development and planning services, legal, public safety, public works, and parks and recreation services. In accordance with generally accepted accounting principles, these financial statements present the Town and its component units, the Gladden Farms Community Facilities District (GFCFD), Gladden Farms Community Facilities District II (GFCFD II), the Vanderbilt Farms Community Facilities District (VFCFD), the Saguaro Springs Community Facilities District (SSCFD) and the Tangerine Farms Road Improvement District (TFRID). The GFCFD, GFCFD II, VFCFD, SSCFD and TFRID are blended component units with the Town in these financial statements as all five were established by the Town in order to fund the debt incurred to finance the purchase of 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 are prepared for the community facilities districts. As of June 23, 2020 VFCFD was dissolved by the Board of Directors and final financial statements are prepared for fiscal year 2020. 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. 47AMENDED Regular Council Meeting 01/19/2021 Page 207 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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. Other Special Revenue Fund – This fund includes all other grant related programs and projects. 48AMENDED Regular Council Meeting 01/19/2021 Page 208 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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. 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 and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. 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. 49AMENDED Regular Council Meeting 01/19/2021 Page 209 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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, 2020 in accordance with GASB 75, due to the relative insignificance to the Town’s financial statements. 50AMENDED Regular Council Meeting 01/19/2021 Page 210 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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. 51AMENDED Regular Council Meeting 01/19/2021 Page 211 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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, managed time off, and sick leave policies generally provide for granting vacation and sick leave with pay. Vacation leave vests with the employee as it is earned. Employees may accumulate up to 240 hours of vacation depending on years of service. 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. Managed time off and sick leave benefits provided for necessary rest and relaxation, attendance at commitments outside of work, and ordinary sick pay are not vested with the employees. Generally, resources from the General Fund are used to pay for compensated absences. 52AMENDED Regular Council Meeting 01/19/2021 Page 212 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 N. Transactions Between Funds Transactions that would be treated as revenue or expenses if they involved organizations external to the governmental unit are accounted for as revenue or expenses in the funds involved. Transactions which constitute reimbursements of a fund for expenses initially made from that fund which are properly applicable to another fund are recorded as expenses in the reimbursing fund and as reductions of the expense in the fund that is reimbursed. Interfund transfers between governmental funds are eliminated in the Statement of Activities. Interfund transfers in the fund statements are reported as other financing sources/uses in governmental funds and after non-operating revenues/expenses in proprietary funds. 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. 53AMENDED Regular Council Meeting 01/19/2021 Page 213 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 NOTE 2 – FUND BALANCE CLASSIFICATIONS In the fund financial statements, fund balance is reported in classifications that comprise a hierarchy based on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The classifications of fund balance are Nonspendable, Restricted, Committed, Assigned, and Unassigned. Nonspendable and Restricted fund balances represent the restricted classifications and Committed, Assigned, and Unassigned represent the unrestricted classifications. Committed fund balance can be used only for specific purposes determined by formal action of Town Council. Town Council is the highest level of decision-making authority for the town. Commitments may be established, modified, or rescinded only through resolutions approved by Town Council. Nonspendable Fund Balance consists of funds that are not in a spendable form, such as inventories and prepaids, or can be legally or contractually required to be maintained intact. Restricted Fund Balance consists of funds that are externally imposed by creditors, grantors, contributors, law or regulations of other governments, or by law imposed through constitutional provisions or enabling legislation. Committed Fund Balance consists of funds that can only be used for specific purposes pursuant to constraints imposed by formal action of the Town’s highest level of decision-making authority. Assigned Fund Balance consists of funds constrained by the Town’s intent to be used for specific purposes, but are neither 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, 2020, the fund balance details by classification are listed below: General Fund Highway User Revenue Other Special Revenue Fund Tangerine Farms Improvement District Debt Service Transportation Fund Non-Major Governmental Funds Fund Balances: Nonspendable: Prepaid expenditures $281,739 $ -$ 185 $ - $ - $ 4,000 Long-term due from other funds 3,821,000 - - - - - Restricted: Courts - - - - -1,059,439 Tourism promotion - - - - -2,337,403 Police - - 1,115,700 - - - Highways and streets -3,174,920 - - - - Housing programs --- - -125,485 Capital projects --- - 3,302,596 13,730,240 Debt service --- 429,247 -5,726,022 Committed: Capital projects - - - - 13,547,982 1,314,081 Unassigned: 42,008,115 - - - - (872,801) Total fund balances: $46,110,854 $3,174,920 $1,115,885 $ 429,247 $16,850,578 $ 23,423,869 54AMENDED Regular Council Meeting 01/19/2021 Page 214 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 NOTE 3 - BUDGETARY CONTROL Excess Expenditures Over Budget – At June 30, 2020, the Town had expenditures in funds that exceeded the budget; however, this does not constitute a violation of any legal provisions. The voters of the State of Arizona, on June 3, 1980, approved an expenditure limitation that is applicable to all local governments. This limitation, based on expenditures of the 1979-80 fiscal year, restricts the growth of expenditures based on a factor of increases in population and inflation. Certain expenditures are held to be excludable. The limitation is set by the State Economic Estimates Commission prior to April 1 of each year for the following fiscal year. As allowed, the voters of the Town of Marana, on November 8, 2016, approved an alternative expenditure limitation - home rule option to be applicable to the Town. This alternative expenditure limitation is free from any ties to the state imposed limitations and is in effect for four consecutive years beginning with the fiscal year ended June 30, 2017. Voters of the Town of Marana, on August 4, 2020, approved a four year extension of the alternative expenditure limitation. 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 Gladden Farms II CFD Debt Fund, the Saguaro Springs CFD Debt Fund, the Tangerine Farms Improvement District Debt Fund, the Transportation Fund, the Downtown Reinvestment Fund, the Impact Fee Funds, the Other Capital Projects Funds, the Regional Transportation Authority Fund, the Pima Association of Governments 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. 55AMENDED Regular Council Meeting 01/19/2021 Page 215 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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. At June 30, 2020, the carrying amount of the Town’s deposits was $35,547,347 and the bank balance was $36,153,659. 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, $2,046,136 was covered by Federal depository insurance and $34,879,423 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 $4,375 in petty cash funds, change drawers and other related items at year end. Additionally, the Town’s share of RICO funds were held in a fiduciary capacity by Pima County with deposits of $715,137. The Town’s Police Department may only use these funds for specific law enforcement activity. At June 30, 2020, 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 $ 4,464,967 $ -$ 4,464,967 $ - Federal National Mortgage Assoc 9,435,372 -9,435,372 - Federal Home Loan Banks 4,895,182 -4,895,182 - U.S. Treasuries 4,782,446 4,782,446 - - Total investments by fair value level $ 4,782,446 $ 18,795,521 $ - External investment pools measured at fair value State Treasurer’s investment pool 5 16,618,619 State Treasurer’s investment pool 7 1,943,256 Total investments measured at fair value 42,139,842 Investments measured at amortized costs Money market investments 19,042,297 Total investments measured at amortized costs 19,042,297 Total investments $61,182,139 56AMENDED Regular Council Meeting 01/19/2021 Page 216 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 Investments categorized as Level 1 are valued using prices quoted in active markets for those investments. 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, 2020 for Town investments was 305 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, 2020, 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, 2020 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 7.8% of the Town’s total investments. At June 30, 2020, the Town had the following investment in debt securities: Investment maturities Investment Type Amount Less than 1 Year 1-5 Years Money market investments $ 19,042,297 $ 19,042,297 $ - State Treasurer’s Investment Pool 5 16,618,619 16,618,619 State Treasurer’s Investment Pool 7 1,943,256 1,943,256 Federal Home Loan Mortgage Corp 4,464,967 3,544,810 920,157 Federal National Mortgage Assoc 9,435,372 5,130,692 4,304,680 Federal Home Loan Banks 4,895,182 - 4,895,182 U.S. Treasuries 4,782,446 - 4,782,446 Total investments $ 61,182,139 $ 46,279,674 $ 14,902,465 57AMENDED Regular Council Meeting 01/19/2021 Page 217 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 NOTE 5 - CAPITAL ASSETS The following is a summary of the changes in capital assets for fiscal year ended June 30, 2020: Governmental Activities Beginning Balance Additions Deletions Ending Balance Capital assets, not being depreciated: Land $ 8,277,460 $ - $ - $ 8,277,460 Construction in progress 18,470,334 6,346,752 (9,853,776) 14,963,310 Total capital assets, not being depreciated 26,747,794 6,346,752 (9,853,776) 23,240,770 Capital assets, being depreciated: Buildings and improvements 64,740,452 816,809 - 65,557,261 Machinery, equipment, and other assets 24,245,618 2,400,882 (1,025,245) 25,621,255 Infrastructure 410,207,775 19,950,465 - 430,158,240 Total capital assets being depreciated 499,193,845 23,168,156 (1,025,245) 521,336,756 Less accumulated depreciation for: Buildings and improvements (20,135,564) (1,898,953) - (22,034,517) Machinery, equipment, and other assets (16,116,272) (1,500,749) 1,017,686 (16,599,335) Infrastructure (185,073,777) (17,093,033) - (202,166,810) Total accumulated depreciation (221,325,613) (20,492,735) 1,017,686 (240,800,662) Total capital assets, being depreciated, net 277,868,232 2,675,421 (7,559) 280,536,094 Governmental activities capital assets, net $304,616,026 $9,022,173 $(9,861,335) $303,776,864 Governmental activities depreciation expense was charged to function/programs as follows: Governmental Activities: General government $ 927,676 Public safety 904,073 Highways and streets 16,610,751 Economic and community development 152,474 Health and Welfare 12,832 Culture and recreation 1,884,929 Total depreciation expense – governmental activities $ 20,492,735 58AMENDED Regular Council Meeting 01/19/2021 Page 218 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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 $ 957,713 Water 1,255,989 Wastewater 2,159,457 Total depreciation expense – business-type activities $ 4,373,159 The difference of $124,986 between total increases to accumulated depreciation and total depreciation expense is due to the inclusion of transfers of capital assets from the government-type activities. NOTE 6 – LONG-TERM LIABILITIES A. Notes Payable Business-type activities loans payable consists of five loans from the Water Infrastructure Finance Authority (WIFA), the proceeds of which were used to acquire and construct various water and wastewater 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, 2020 on the outstanding balance is 1.468 percent. Business-type Activities Beginning Balance (as restated) Additions Deletions Ending Balance Capital assets, not being depreciated: Land $ 4,442,146 $ 184,463 $ - $ 4,626,609 Water rights 4,392,222 - (236,556) 4,155,666 Construction in progress 6,581,163 11,263,792 (7,732,600) 10,112,355 Total capital assets, not being depreciated 15,415,531 11,448,255 (7,969,156) 18,894,630 Capital assets, being depreciated: Buildings, improvements and infrastructure 136,294,140 11,199,263 (259,510) 147,233,893 Machinery, equipment, and other assets 1,756,329 1,949,491 (77,540) 3,628,280 Total capital assets being depreciated 138,050,469 13,148,754 (337,050) 150,862,173 Less accumulated depreciation for: Buildings, improvements and infrastructure (30,551,093) (4,209,390) 107,612 (34,652,871) Machinery, equipment, and other assets (1,085,427) (288,755) 77,540 (1,296,642) Total accumulated depreciation (31,636,520) (4,498,145) 185,152 (35,949,513) Total capital assets, being depreciated, net 106,413,949 8,650,609 (151,898) 114,912,660 Business-type activities capital assets, net $121,829,480 $20,098,864 $(8,121,054) $133,807,290 59AMENDED Regular Council Meeting 01/19/2021 Page 219 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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 $7,333,504 of the loan, leaving $7,666,496 available for drawdown. The interest rate at June 30, 2020 on the outstanding balance is 2.440 percent. 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 the entire forgivable portion plus $104,200 of the loan, leaving $636,795 available for drawdown. During 2020, the Town obtained $1,100,000 in additional financing from WIFA for the two water treatment campuses. $525,000 of the principal amount is forgivable. As of year-end, the Town has not drawn on any portion of this loan. During 2020, the Town obtained $475,000 in additional financing from WIFA for the Adonis Mobile Home Park wastewater infrastructure. Fifty percent of the principal amount is forgivable. As of year-end, the Town has not drawn on any portion of this loan. Outstanding June 30, 2020 $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. $ 2,742,865 $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. 6,742,742 $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. 75,216 $574,500 Water Infrastructure Finance Authority loan, 2020 Series, due in annual installments of $19,187 to $79,662; through July 1, 2040; at a 3.4% interest rate. - $237,500 Water Infrastructure Finance Authority loan, Adonis 2020, due in annual installments of $7,932 to $30,452; through July 1, 2040; at a 3.4% interest rate. - Total $ 9,560,823 The following is a schedule by years of the debt service requirements for the loan as of June 30, 2020. Fiscal Year Principal Interest Total 2021 $ 874,503 $ 88,969 $ 963,472 2022 897,125 111,001 1,008,126 2023 904,166 98,938 1,003,104 2024 912,154 86,721 998,875 2025 935,792 74,263 1,010,055 2026 – 2030 5,037,083 172,910 5,209,993 Totals $ 9,560,823 $ 632,802 $ 10,193,625 60AMENDED Regular Council Meeting 01/19/2021 Page 220 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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, 2020, $875,000 was still outstanding for the 2010 Series refunding. During 2019, Saguaro Springs Community Facilities District (a component unit) issued $3,845,000 of Series 2018 general obligation bonds for infrastructure improvements. During 2020, Saguaro Springs Community Facilities District (a component unit) issued $1,950,000 of Series 2019 general obligation bonds for infrastructure improvements. Gladden Farms Phase II Community Facilities District (a component unit) issued $1,245,000 of Series 2019 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, 2020, were as follows: Outstanding June 30, 2020 $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. $ 7,275,000 $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. 3,745,000 $1,245,000 Gladden Farms Phase II CFD General Obligation Bonds, 2019 Series, due in annual installments of $30,000 to $80,000; through July 15, 2044; at a 3.75% to 4.125% interest rate. 1,245,000 $1,950,000 Saguaro Springs CFD General Obligation Bonds, 2019 Series, due in annual installments of $55,000 to $340,000; through July 15, 2044; at a 3.0% to 4.0% interest rate. 1,950,000 Total $ 14,215,000 61AMENDED Regular Council Meeting 01/19/2021 Page 221 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 Annual debt service requirements to maturity on the CFD general obligation bonds at June 30, 2020, are summarized as follows: Year ending June 30 Principal Interest Total 2021 $ 570,000 $ 507,606 $ 1,077,606 2022 600,000 495,106 1,095,106 2023 620,000 479,106 1,099,106 2024 635,000 459,931 1,094,931 2025 655,000 440,231 1,095,231 2026 – 2030 3,650,000 1,808,131 5,458,131 2031 – 2035 3,770,000 1,025,106 4,795,106 2036 – 2040 1,720,000 532,719 2,252,719 2041 – 2045 1,995,000 183,372 2,178,372 Totals $ 14,215,000 $ 5,931,308 $ 20,146,308 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, 2020, were as follows: Outstanding June 30, 2020 $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%. $ 9,552,000 Annual debt service requirements to maturity on the TFRID special assessment bonds at June 30, 2020, are summarized as follows: Year ending June 30 Principal Interest Total 2021 $ 1,721,000 $ 184,838 $ 1,905,838 2022 1,508,000 153,488 1,661,488 2023 1,537,000 123,931 1,660,931 2024 1,566,000 93,806 1,659,806 2025 1,595,000 63,112 1,658,112 2026 1,625,000 31,850 1,656,850 Totals $ 9,552,000 $ 651,025 $ 10,203,025 62AMENDED Regular Council Meeting 01/19/2021 Page 222 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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. The revenue bonds outstanding as of June 30, 2020, were as follows: Outstanding June 30, 2020 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. $ 27,175,000 $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. 17,825,000 $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 $ 45,000,000 $ 19,780,000 Annual debt service requirements to maturity on revenue bonds at June 30, 2020, are summarized as follows: Governmental Activities Business-type Activities Year ending June 30 Principal Interest Principal Interest 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 1,622,250 - 809,069 2025 4,170,000 1,418,750 - 809,069 2026-2030 20,455,000 3,754,600 - 4,044,594 2031-2035 6,425,000 653,100 585,000 3,913,969 2036-2040 - - 10,050,000 2,405,866 2041-2043 - - 9,145,000 426,600 Totals $ 45,000,000 $ 13,308,650 $ 19,780,000 $14,836,374 63AMENDED Regular Council Meeting 01/19/2021 Page 223 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 E. Revenue Bonds – Direct Placement 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 and water utility revenue. The direct placement revenue bonds outstanding as of June 30, 2020 were as follows: Outstanding June 30, 2020 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. $ 4,027,000 $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. $ 576,000 Total $ 4,027,000 $ 576,000 Annual debt service requirements to maturity on direct placement revenue bonds at June 30, 2020, are summarized as follows: Governmental Activities Business-type Activities Year ending June 30 Principal Interest Principal Interest 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 629,000 24,416 - - 2026 643,000 8,198 - - Totals $ 4,027,000 $ 299,791 $ 576,000 $ 22,138 F. Pledged Revenues 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. The Town has also pledged future excise tax revenues to repay $7.4 million in Water Infrastructure Financing Authority loans issued in 2019. The loans were issued for wastewater improvements in the Adonis neighborhood and water quality treatment campuses. At year end, $68.8 million in bonds remain outstanding and $6.8 million in loans remain outstanding to be repaid by future excise tax revenues. The net revenues available for service of this debt were $58.1 million. The debt principal and interest paid on this debt during fiscal year 2020 was $7.4 million (12.7% of available net pledged revenues). 64AMENDED Regular Council Meeting 01/19/2021 Page 224 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 In addition, the Town has pledged future water utility revenues to repay $4.7 million in Water Infrastructure Financing Authority loans and a $1.3 million Revenue Refunding Bond. The loan was issued for the acquisition of well sites and the construction of certain infrastructure. The bond was issued in 2014 to refund prior debt issuances. At year end, $3.3 million remains outstanding to be repaid by future water revenues. For the fiscal year ended June 30, 2020, the net revenues available for service of this debt were $5.1 million. The debt principal and interest paid, including fees, on this debt during fiscal year 2020 was $512,688. 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, 2020, the total legal debt limit was $161,993,362. As of June 30, 2020, the total outstanding debt applicable to the limit was zero. G. Changes in Long-term Liabilities The following is a summary of changes in long-term liability activity for fiscal year ended June 30, 2020. Governmental activities: Beginning Balance Additions Reductions Ending Balance Due Within One Year General obligation bonds $ 11,385,000 $3,195,000 $ (365,000) $ 14,215,000 $ 570,000 Revenue bonds 47,945,000 - (2,945,000) 45,000,000 3,030,000 Revenue bonds – Direct Placements 4,706,000 - (679,000) 4,027,000 696,000 Compensated absences 1,181,560 1,050,010 (786,150) 1,445,420 1,300,879 Net pension liability 35,062,702 2,433,202 - 37,495,904 - Special assessment bonds 12,126,000 - (2,574,000) 9,552,000 1,721,000 Deferred bond premium 5,507,092 68,459 (459,164) 5,116,387 - Total $117,913,354 $6,746,671 $(7,808,314) $116,851,711 $7,317,879 Business-type activities: Loan payable $ 3,503,598 $6,909,678 $ (852,453) $ 9,560,823 $ 874,501 Net pension liability 1,972,729 72,165 - 2,044,894 - Revenue bonds 19,780,000 - - 19,780,000 - Revenue bonds – Direct Placement 760,000 (184,000) 576,000 186,000 Compensated absences 105,163 94,870 (57,671) 142,362 128,126 Deferred bond premium 350,870 - (19,688) 331,182 - Total $ 26,472,360 $7,076,713 $ (1,113,812) $ 32,435,261 $1,188,627 65AMENDED Regular Council Meeting 01/19/2021 Page 225 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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) $ - $ 220,772 Intergovernmental (Other Special Revenue Fund) 102,223 2,514,526 Intergovernmental (Non-Major Governmental Funds) 9,060 846 Special assessments (Tangerine Farms Improvement District Debt Service Fund) 9,346,385 - Total deferred amounts for governmental funds $ 9,457,668 $ 2,736,144 NOTE 8 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS Due to/from other funds: At June 30, 2020, 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 2020- 2021, these interfund borrowing will be eliminated as sufficient resources become available. A portion of the amount due from the Airport Fund, $959,057 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 $ 898,124 $ 3,111,943 $ 1,640,389 $ 5,650,456 Transportation Fund - 2,400,000 - 2,400,000 Total $ 898,124 $ 5,511,943 $ 1,640,389 $ 8,050,456 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. 66AMENDED Regular Council Meeting 01/19/2021 Page 226 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 Transfers In Enterprise Funds Transfers Out General Fund Highway User Revenue Fund Trans- portation Non-Major Governmental Funds Water Wastewater Airport Total General Fund $- $- $- $2,803,597 $1,035,375 $ - $910,680 $4,749,652 Transportation 691,899 691,899 Other Special Revenue Funds 3,148,411 3,148,411 Non-Major Governmental Funds 583,548 916,011 1,409,569 32,633 2,941,761 Water 37,500 905,275 875,600 1,818,375 Wastewater 905,275 905,275 Total $3,731,959 $37,500 $916,011 $6,715,615 $1,035,375 $908,233 $910,680 $14,255,373 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, 2020, 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 liability $ 37,495,904 $ 2,044,894 $ 39,540,798 Deferred outflows of resources 7,360,900 242,121 7,603,021 Deferred inflows of resources 1,916,755 128,975 2,045,730 Pension expense 4,775,960 274,533 5,050,493 The Town reported $3,811,545 of pension contributions as expenditures in the governmental funds related to all pension plans to which it contributes. 67AMENDED Regular Council Meeting 01/19/2021 Page 227 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 A. 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). The ASRS administers a cost sharing multiple-employer defined benefit plan. The Arizona State Retirement System Board governs the ASRS according to the provisions of A.R.S. Title 38, Chapter 5, Article 2 and 2.1. ASRS net OPEB liabilities have not been recorded, or further disclosed at June 30, 2020 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. Benefits provided - The ASRS provides retirement, health insurance premium supplement, long-term disability, and survivor benefits. State statute establishes benefit terms. 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. 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, 2020, statute required active ASRS members to contribute at the actuarially determined rate of 12.11 percent (11.94 percent for retirement and 0.17 percent for long-term disability) of the members’ annual covered payroll, and statute required the Town to contribute at the actuarially determined rate of 12.11 percent (11.45 percent for retirement, 0.49 percent for health insurance premium benefit, and 0.17 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 10.41 percent (10.29 percent for retirement, 0.05 percent for health 68AMENDED Regular Council Meeting 01/19/2021 Page 228 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 insurance premium benefit, and 0.07 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, 2020, were $1,786,018. During fiscal year 2020, the Town paid for ASRS pension contributions as follows: 87.33% percent from the General Fund and 12.67% from enterprise funds. Pension liability—At June 30, 2020, the Town reported a liability of $20,377,449 for its proportionate share of the ASRS’ net pension liability. The net pension liability was measured as of June 30, 2019. 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, 2018, to the measurement date of June 30, 2019. 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, 2019. The Town’s proportion measured as of June 30, 2019, was 0.14004 percent, which was a decrease of 0.00217 percent from its proportion measured as of June 30, 2018. Pension expense and deferred outflows/inflows of resources—For the year ended June 30, 2020, the Town recognized pension expense for ASRS of $2,070,103. At June 30, 2020, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ASRS Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 368,124 $ 3,831 Changes of assumptions or other inputs 86,136 811,470 Net difference between projected and actual earnings on pension plan investments - 458,015 Changes in proportion and differences between contributions and proportionate share of contributions 23,009 247,524 Town contributions subsequent to the measurement date 1,786,018 - Total $ 2,263,287 $ 1,520,840 The $1,786,018 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, 2021. 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, 2021 $ (434,683) 2022 (643,599) 2023 (87,958) 2024 122,669 Thereafter - 69AMENDED Regular Council Meeting 01/19/2021 Page 229 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 Actuarial Assumptions—The significant actuarial assumptions used to measure the total pension liability are as follows: ASRS Actuarial valuation date June 30, 2018 Actuarial roll forward date June 30, 2019 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, 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 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 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% 6.09% Credit 20% 5.36% Interest rate sensitive bonds 10% 1.62% Real estate 20% 5.85% Total 100% Discount Rate—The discount rate used to measure the ASRS total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that contributions from participating employers will be made based on the actuarially determined rates based on the 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 70AMENDED Regular Council Meeting 01/19/2021 Page 230 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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 $29,001,830 $20,377,449 $13,169,686 Pension plan fiduciary net position—Detailed information about the pension plan’s fiduciary net position is available in the separately issued ASRS financial report. B. 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. Employees who were PSPRS members before July 1, 2017, participate in the agent plans, and those who became PSPRS members on or after July 1, 2017, participate in the cost-sharing plans (PSPRS Tier 3 Risk Pool) which are not further disclosed because of their relative insignificance to the Town’s financial statements. All full-time and permanent part-time employees employed as police dispatchers or communications operators are eligible to participate in the Corrections Officers Retirement Plan (CORP), an agent multiple- employer defined benefit pension plan and an agent multiple-employer defined benefit health insurance premium benefit (OPEB) plan. The CORP is governed by the PSPRS Board of Trustees and the local participating local boards according to the provisions of A.R.S. Title 38, Chapter 5, Article 6. PSPRS and CORP net OPEB liabilities have not been recorded, or further disclosed at June 30, 2020 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: 71AMENDED Regular Council Meeting 01/19/2021 Page 231 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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 *With actuarially reduced benefits 72AMENDED Regular Council Meeting 01/19/2021 Page 232 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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% 2.5% per year of credited service, not to exceed 80% 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, 2020, the following employees were covered by the agent pension plans’ benefit terms: 73AMENDED Regular Council Meeting 01/19/2021 Page 233 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 PSPRS CORP Dispatchers Inactive employees or beneficiaries currently receiving benefits 32 1 Inactive employees entitled to but not yet receiving benefits 17 2 Active employees 73 6 Total 122 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, 2020, 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 34.64% 34.64% 9.80% 19.19% Health insurance premium benefit .14% .14% .21% .17% Also, the PSPRS Board of Trustees required an additional employer contribution of 20.71 percent for legacy costs of Tier 1 and 2 amortization of unfunded liabilities on Tier 3 contributions. 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, 2020, were: PSPRS CORP Dispatchers Pension Contributions $ 2,110,954 $ 70,988 Health Insurance Premium Benefit 8,532 629 Total Contributions $ 2,119,486 $ 71,617 During fiscal year 2020, the Town paid for PSPRS and CORP pension contributions as follows: 94% percent from the General Fund and 6% percent from other funds. Pension liability—At June 30, 2020, the Town reported the following net pension liabilities: Net Pension Liability PSPRS 17,198,882 CORP Dispatchers 980,536 Total 18,179,418 74AMENDED Regular Council Meeting 01/19/2021 Page 234 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 The net pension liabilities were measured as of June 30, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The total liabilities as of June 30, 2019, reflect changes of actuarial assumptions to decrease the investment rate of return from 7.4 percent to 7.3 percent and update mortality rates. 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, 2019 Actuarial cost method Individual entry age normal Investment rate of return 7.30% Wage inflation 3.5% Price Inflation 2.5% Cost-of-living adjustment 1.75% Mortality rates PubS-2010 tables Healthcare cost trend rate Not applicable Actuarial assumptions used in the June 30, 2019 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 7.3 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% 4.75% Non-U.S. Equity 14% 5.00% Private Credit 16% 5.36% Fixed Income 5% 3.00% Private Equity 12% 8.40% GTS 12% 4.01% Real Assets 9% 6.75% Real Estate 10% 4.50% Risk Parity 4% 4.01% Short Term Investments 2% 0.25% Total 100% Pension discount rates—At June 30, 2019, the discount rate used to measure the PSPRS and CORP total pension liabilities was 7.3 percent, which was a decrease of 0.1 from the discount rate used as of June 30, 2018. 75AMENDED Regular Council Meeting 01/19/2021 Page 235 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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, 2019 $35,932,380 $20,384,543 $15,547,837 Changes for the year: Service cost 1,116,409 - 1,116,409 Interest on the total pension liability 2,689,703 - 2,689,703 Changes of benefit terms - - - Differences between expected and actual experience in the measurement of the pension liability 284,100 - 284,100 Changes of assumptions or other inputs 1,136,498 - 1,136,498 Contributions—employer - 2,011,933 (2,011,933) Contributions—employee - 406,546 (406,546) Net investment income - 1,190,198 (1,190,198) Benefit payments, including refunds of employee contributions (1,402,911) (1,402,911) - Pension plan administrative expense - (21,675) 21,675 Other changes - - - Net changes 3,823,799 2,184,091 1,639,708 Adjustment to Beginning of Year - (11,337) 11,337 Balances at June 30, 2020 $39,756,179 $22,557,297 $17,198,882 76AMENDED Regular Council Meeting 01/19/2021 Page 236 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 CORP Increase (Decrease) Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability (Asset) (a) – (b) Balances at June 30, 2019 $2,068,889 $1,394,733 $674,156 Changes for the year: Service cost 60,952 - 60,952 Interest on the total pension liability 157,366 - 157,366 Changes of benefit terms - - Differences between expected and actual experience in the measurement of the pension liability 224,526 - 224,526 Changes of assumptions or other inputs 56,044 - 56,044 Benefit payments, including refunds of employee contributions (6,543) (6,543) - Contributions—employer - 83,517 (83,517) Contributions—employee - 31,930 (31,930) Net investment income - 79,174 (79,174) Pension plan administrative expense - (2,113) 2,113 Other changes - - - Net changes 492,345 185,965 306,380 Balances at June 30, 2020 $2,561,234 $1,580,698 $980,536 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, 2020, the Town recognized the following pension expense/(income): 1% Decrease Current Discount Rate 1% Increase PSPRS Rate 6.30% 7.30% 8.30% Net pension liability $23,298,483 $17,198,882 $12,288,067 CORP Dispatchers Rate 6.30% 7.30% 8.30% Net pension liability $1,332,492 $980,536 $688,150 77AMENDED Regular Council Meeting 01/19/2021 Page 237 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 Pension Expense/(Income) PSPRS 3,104,864 CORP Dispatchers 151,975 Pension deferred outflows/inflows of resources—At June 30, 2020, 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 $ 700,143 $ 410,993 Changes of assumptions or other inputs 1,897,065 - Net difference between projected and actual earnings on pension plan investments 222,977 - Town contributions subsequent to the measurement date 2,110,954 - Total $ 4,931,139 $ 410,993 CORP Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 168,396 $ 50,856 Changes of assumptions or other inputs 45,336 2,521 Net difference between projected and actual earnings on pension plan investments 20,177 - Town contributions subsequent to the measurement date 70,988 - Total $ 304,897 $ 53,377 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, 2021. 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 2021 $859,836 $62,969 2022 505,987 48,756 2023 486,813 66,858 2024 251,139 1,949 2025 125,312 - Thereafter 180,105 - 78AMENDED Regular Council Meeting 01/19/2021 Page 238 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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. 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. 79AMENDED Regular Council Meeting 01/19/2021 Page 239 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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 June 30, 2020, 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 61.43 percent of all active EORP members’ annual covered payroll. In addition, statue required the Town to contribute 39.72 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, 2020, was $69,800. During fiscal year 2020, the Town paid for EORP pension contributions 100 percent from the General Fund. Pension liability—At June 30, 2020, 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 $ 983,931 State’s proportionate share of the EORP net pension liability associated with the Town 88,985 Total $ 1,072,916 The net pension liability was measured as of June 30, 2019, 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, 2019, reflect changes of actuarial assumptions to decrease the investment rate of return from 7.4 percent to 7.3 percent and update the mortality rates. 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, 2019. The Town’s proportion measured as of June 30, 2019, was .1484 percent, which was a decrease of .0071 percent from its proportion measured as of June 30, 2018. Pension expense/income and deferred outflows/inflows of resources—For the year ended June 30, 2020, the Town recognized pension income of $283,304. At June 30, 2020, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 80AMENDED Regular Council Meeting 01/19/2021 Page 240 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 EORP Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 21,937 $ 933 Changes of assumptions or other inputs 3,093 27,961 Net difference between projected and actual earnings on pension plan investments 6,694 - Changes in proportion and differences between employer contributions and proportionate share of contributions 2,174 31,626 Town contributions subsequent to the measurement date 69,800 Total $ 103,698 $ 60,520 The $69,800 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, 2021. 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, 2021 $(28,518) 2022 (1,707) 2023 1,869 2024 1,735 Thereafter - Actuarial assumptions—The significant actuarial assumptions used to measure the total pension liability are as follows: EORP Actuarial valuation date June 30, 2019 Actuarial cost method Entry age normal Investment rate of return 7.3% Wage inflation 3.75% Price inflation 2.5% Cost-of-living adjustment 1.75% Mortality rates PubG-2010 tables Healthcare cost trend rate Not applicable Actuarial assumptions used in the June 30, 2019, 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 7.3 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: 81AMENDED Regular Council Meeting 01/19/2021 Page 241 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 EORP Asset Class Target Allocation Long-Term Expected Geometric Real Rate of Return Short term investments 2% 0.25% Risk parity 4% 4.01% Fixed income 5% 3.00% Real assets 9% 6.75% GTS 12% 4.01% Private credit 16% 5.36% Real estate 10% 4.50% Private equity 12% 8.40% Non-U.S. equity 14% 5.00% U.S. equity 16% 4.75% Total 100% Discount rate—At June 30, 2019, the discount rate used to measure the EORP total pension liability was 7.3 percent, which was a decrease of 0.1 from the discount rate used as of June 30, 2018. 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 7.3 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 (6.3%) Current Discount Rate (7.3%) 1% Increase (8.3%) Town’s proportionate share of the net pension liability $1,126,748 $983,931 $862,288 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 based on an actuarial review that will provide adequate reserves to allow the pool to meet its expected 82AMENDED Regular Council Meeting 01/19/2021 Page 242 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 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 2020, the Town was obligated to $7.1 million in significant contractual commitments for airport, transportation, park, police facility, and water facility related construction projects. Two water treatment facilities accounted for $5.2 million and Airport improvements accounted for $452,500. The remaining commitments were for other transportation projects of $983,236, water projects of 131,099, wastewater projects of $95,315, and park related projects accounted for $223,181. 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: 83AMENDED Regular Council Meeting 01/19/2021 Page 243 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 Years Ending June 30, 2021 $ 632,491 2022 632,491 2023 632,491 2024 632,491 2025 632,491 2026 - 2030 3,478,700 2031 - 2035 3,826,570 2036 - 2040 4,209,225 2041 - 2045 4,630,150 2046 - 2050 5,093,165 2051 - 2055 5,602,480 2056 - 2060 6,162,730 2061 - 2065 6,779,005 2066 - 2070 7,456,905 2071 - 2075 8,202,595 2076 - 2080 9,022,855 2081 - 2085 9,925,140 2086 - 2090 10,917,655 2091 - 2095 12,009,420 2096 - 2099 10,568,288 Total $ 111,047,338 Minimum annual rentals above excludes annual rental under the remaining renewal options as of June 30, 2020. Rent expense under the above leases for fiscal 2019-20 aggregated $574,992. NOTE 13 – RESTATEMENT OF NET POSITION Net position as of July 1, 2019, has been restated as follows for a change to the capital asset net book value for the Water and Wastewater Fund. The change is due to an incorrect valuation of the assets acquired in the transfer of certain sewer facilities from Pima County to the Town on January 3, 2012 and a duplication of a Water asset. An evaluation during the fiscal year inventory discovered the discrepancy and the following change resolves the valuation error. Business-type Activities Water Fund Wastewater Fund Net Position as previously reported at June 30, 2019 $ 96,476,727 $ 38,217,624 $ 41,321,185 Correction of a misstatement – Capital assets (net of depreciation) (851,773) (588,606) (263,167) Net position as restated, July 1, 2019 $ 95,624,954 $ 37,629,018 $ 41,058,018 84AMENDED Regular Council Meeting 01/19/2021 Page 244 of 402 TOWN OF MARANA, ARIZONA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2020 NOTE 14 – SUBSEQUENT EVENTS Gladden Farms Community Facilities District – Debt Issuance In October 2020, the District issued the Series 2020 General Obligation Bonds (Bonds) in the amount of $4,155,000, maturing in 2041, with an interest rate of 2.375% to 3.0%. 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. 85AMENDED Regular Council Meeting 01/19/2021 Page 245 of 402 This page intentionally left blank 86AMENDED Regular Council Meeting 01/19/2021 Page 246 of 402 REQUIRED SUPPLEMENTARY INFORMATION 87AMENDED Regular Council Meeting 01/19/2021 Page 247 of 402 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, 2020 See accompanying notes to pension plan schedules. Arizona State Retirement System Reporting Fiscal Year (Measurement Date) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) 2016 (2015) Town’s proportion of the net pension liability 0.140004% 0.14221% 0.14286% 0.140584% 0.136510% Town’s proportionate share of the net pension liability $ 20,377,449 $ 19,833,290 $ 22,254,803 $ 22,691,024 $ 21,263,376 Town’s covered payroll $ 14,773,437 $ 14,143,225 $ 13,881,636 $ 13,150,962 $ 12,565,464 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 137.93% 140.23% 160.32% 172.54% 169.22% Plan fiduciary net position as a percentage of the total pension liability 73.24% 73.40% 69.92% 67.06% 68.35% 2015 (2014) 2014 through 2011 Town’s proportion of the net pension liability 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 $ 19,235,271 Town’s covered payroll $ 11,714,615 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 164.20% Plan fiduciary net position as a percentage of the total pension liability 69.49% 88AMENDED Regular Council Meeting 01/19/2021 Page 248 of 402 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, 2020 See accompanying notes to pension plan schedules. Elected Officials Retirement Plan Reporting Fiscal Year (Measurement Date) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) 2016 (2015) Town’s proportion of the net pension liability .148366% .155545% .150480% .148768% .133401% Town’s proportionate share of the net pension liability $983,931 $980,148 $1,833,747 $1,405,489 $1,042,465 State’s proportionate share of the net pension liability associated with the Town 88,985 167,942 380,586 290,197 324,997 Total $1,072,916 $1,148,090 $2,214,333 $1,695,686 $1,367,462 Town’s covered payroll $119,423 $116,021 $119,424 $119,424 $119,424 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 823.90% 844.80% 1,535.49% 1,176.89% 872.91% Plan fiduciary net position as a percentage of the total pension liability 30.14% 30.36% 19.66% 23.42% 28.32% 2015 (2014) 2014 through 2011 Town’s proportion of the net pension liability .1658860% Information not available 10 years of information will be reported as it becomes available Town’s proportionate share of the net pension liability $ 1,112,385 State’s proportionate share of the net pension liability associated with the Town 341,068 Total $ 1,453,453 Town’s covered payroll $ 119,423 Town’s proportionate share of the net pension liability as a percentage of its covered payroll 931.15% Plan fiduciary net position as a percentage of the total pension liability 31.91% 89AMENDED Regular Council Meeting 01/19/2021 Page 249 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) AGENT PENSION PLANS JUNE 30, 2020 See accompanying notes to pension plan schedules. PSPRS Reporting Fiscal Year (Measurement Date) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) 2016 (2015) Total pension liability Service cost $1,116,409 $1,100,133 $ 1,213,757 $ 994,058 $ 891,324 Interest on the total pension liability 2,689,703 2,538,335 2,322,987 2,005,255 1,844,654 Changes of benefit terms - - 367,673 1,837,430 - Differences between expected and actual experience in the measurement of the pension liability 284,100 (566,255) 340,373 536,692 333,269 Changes of assumptions or other inputs 1,136,498 - 725,862 1,226,081 - Benefit payments, including refunds of employee contributions (1,402,911) (1,783,172) (1,387,192) (1,174,525) (974,950) Net change in total pension liability 3,823,799 1,289,041 3,583,460 5,424,991 2,094,297 Total pension liability—beginning 35,932,380 34,643,339 31,059,879 25,634,888 23,540,591 Total pension liability—ending (a) $39,756,179 $35,932,380 $34,643,339 $31,059,879 $25,634,888 Plan fiduciary net position Contributions—employer $2,011,933 $1,904,911 $1,384,924 $1,323,677 $1,006,859 Contributions—employee 406,546 488,777 621,583 672,181 579,390 Net investment income 1,190,198 1,355,793 2,081,790 95,438 533,938 Benefit payments, including refunds of employee contributions (1,402,911) (1,783,172) (1,387,192) (1,174,525) (974,950) Hall/Parker Settlement - (780,563) - - - Pension plan administrative expense (21,675) (21,335) (18,820) (14,134) (13,410) Other changes - 227 2,417 223,597 46,032 Net change in plan fiduciary net position 2,184,091 1,164,638 2,684,702 1,126,234 1,177,859 Plan fiduciary net position—beginning 20,384,543 19,219,905 16,535,203 15,408,969 14,231,110 Adjustment to Beginning of Year (11,337) Plan fiduciary net position—ending (b) $22,557,297 $20,384,543 $19,219,905 $16,535,203 $15,408,969 Town’s net pension liability (asset)—ending (a) – (b) $17,198,882 $15,547,837 $15,423,434 $14,524,676 $10,225,919 Plan fiduciary net position as a percentage of the total pension liability 56.74% 56.73% 55.48% 53.24% 60.11% Covered payroll $5,272,202 $5,121,661 $5,318,831 $5,182,784 $4,900,569 Town’s net pension liability (asset) as a percentage of covered payroll 326.22% 303.57% 289.98% 280.25% 208.67% 90AMENDED Regular Council Meeting 01/19/2021 Page 250 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) AGENT PENSION PLANS JUNE 30, 2020 See accompanying notes to pension plan schedules. PSPRS Reporting Fiscal Year (Measurement Date) 2015 (2014) 2014 through 2011 Total pension liability Information not available 10 years of information will be reported as it becomes available Service cost $ 876,619 Interest on the total pension liability 1,551,602 Changes of benefit terms 308,515 Differences between expected and actual experience in the measurement of the pension liability 148,583 Changes of assumptions or other inputs 1,933,583 Benefit payments, including refunds of employee contributions (1,211,258) Net change in total pension liability 3,607,644 Total pension liability—beginning 19,932,947 Total pension liability—ending (a) $ 23,540,591 Plan fiduciary net position Contributions—employer $ 797,871 Contributions—employee 578,596 Net investment income 1,698,902 Benefit payments, including refunds of employee contributions (1,211,258) Hall/Parker Settlement - Pension plan administrative expense - Other changes (543,969) Net change in plan fiduciary net position 1,320,142 Plan fiduciary net position—beginning 12,910,968 Plan fiduciary net position—ending (b) $ 14,231,110 Town’s net pension liability (asset)—ending (a) – (b) $ 9,309,481 Plan fiduciary net position as a percentage of the total pension liability 60.45% Covered payroll $ 4,638.415 Town’s net pension liability (asset) as a percentage of covered payroll 200.70% 91AMENDED Regular Council Meeting 01/19/2021 Page 251 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) AGENT PENSION PLANS JUNE 30, 2020 See accompanying notes to pension plan schedules. CORP – Dispatchers Reporting Fiscal Year (Measurement Date) 2020 (2019) 2019 (2018) 2018 (2017) 2017 (2016) 2016 (2015) Total pension liability Service cost $60,952 $ 62,894 $ 59,139 $ 57,866 $ 64,307 Interest on the total pension liability 157,366 150,833 118,108 113,075 105,144 Changes of benefit terms - (111,265) 312,169 15,002 - Differences between expected and actual experience in the measurement of the pension liability 224,526 (40,404) (18,913) (25,358) (18,303) Changes of assumptions or other inputs 56,044 - (5,967) (136) - Benefit payments, including refunds of employee contributions (6,543) - (5,825) (47,673) (46,131) Net change in total pension liability 492,345 62,058 458,711 112,776 105,017 Total pension liability—beginning 2,068,889 2,006,831 1,548,120 1,435,344 1,330,327 Total pension liability—ending (a) $2,561,234 $2,068,889 $ 2,006,831 $ 1,548,120 $ 1,435,344 Plan fiduciary net position Contributions—employer $83,517 $ 57,269 $ 51,162 $ 48,648 $ 49,045 Contributions—employee 31,930 32,445 32,199 32,623 35,981 Net investment income 79,174 90,441 124,809 6,034 34,230 Benefit payments, including refunds of employee contributions (6,543) - (5,825) (47,673) (46,131) Pension plan administrative expense (2,113) (2,068) (1,491) (1,253) (1,233) Other changes - (22) (6) (5) (635) Net change in plan fiduciary net position 185,965 178,065 200,848 38,374 71,257 Plan fiduciary net position—beginning 1,394,733 1,216,668 1,015,820 977,446 906,189 Plan fiduciary net position—ending (b) $1,580,698 $1,394,733 $ 1,216,668 $ 1,015,820 $ 977,446 Town’s net pension liability (asset)—ending (a) – (b) $980,536 $ 674,156 $ 790,163 $ 532,300 $ 457,898 Plan fiduciary net position as a percentage of the total pension liability 61.72% 67.41% 60.63% 65.62% 68.10% Covered payroll 357,135 $ 407,607 $ 404,506 $ 397,428 $ 430,892 Town’s net pension liability (asset) as a percentage of covered payroll 274.56% 165.39% 195.34% 133.94% 106.27% 92AMENDED Regular Council Meeting 01/19/2021 Page 252 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET) AGENT PENSION PLANS JUNE 30, 2020 See accompanying notes to pension plan schedules. CORP – Dispatchers Reporting Fiscal Year (Measurement Date) 2015 (2014) 2014 through 2011 Total pension liability Information not available 10 years of information will be reported as it becomes available Service cost $ 63,474 Interest on the total pension liability 94,360 Changes of benefit terms - Differences between expected and actual experience in the measurement of the pension liability (16,512) Changes of assumptions or other inputs 18,699 Benefit payments, including refunds of employee contributions - Net change in total pension liability 160,021 Total pension liability—beginning 1,170,306 Total pension liability—ending (a) $ 1,330,327 Plan fiduciary net position Contributions—employer $ 48,667 Contributions—employee 36,306 Net investment income 102,910 Benefit payments, including refunds of employee contributions - Pension plan administrative expense - Other changes (24,446) Net change in plan fiduciary net position 163,437 Plan fiduciary net position—beginning 742,752 Plan fiduciary net position—ending (b) $ 906,189 Town’s net pension liability (asset)—ending (a) – (b) $ 424,138 Town’s net pension liability (asset)—ending (a) – (b) 68.12% Covered payroll $ 456,107 Town’s net pension liability (asset) as a percentage of covered payroll 92.99% 93AMENDED Regular Council Meeting 01/19/2021 Page 253 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2020 See accompanying notes to pension plan schedules. Arizona State Retirement System Reporting Fiscal Year 2020 2019 2018 2017 2016 Statutorily required contribution $1,786,018 $1,645,597 $1,536,196 $1,496,440 $1,426,879 Town’s contributions in relation to the statutorily required contribution 1,786,018 1,645,597 1,536,196 1,496,440 1,426,879 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $15,605,818 $14,773,437 $14,143,225 $13,881,636 $13,150,962 Town’s contributions as a percentage of covered payroll 11.44% 11.14% 10.86% 10.78% 10.85% 2015 2014 2013 2012 2011 Statutorily required contribution $ 1,367,122 $ 1,253,464 $1,172,006 $1,095,471 $934,621 Town’s contributions in relation to the statutorily required contribution 1,367,122 1,253,464 1,172,006 1,095,471 934,621 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $12,565,464 $11,714,615 $11,434,201 $11,098,998 $10,373,156 Town’s contributions as a percentage of covered payroll 10.88% 10.70% 10.25% 9.87% 9.01% 94AMENDED Regular Council Meeting 01/19/2021 Page 254 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2020 See accompanying notes to pension plan schedules. Elected Officials Retirement Plan Reporting Fiscal Year 2020 2019 2018 2017 2016 Statutorily required contribution $69,800 $63,358 $27,266 $28,065 $28,065 Town’s contributions in relation to the statutorily required contribution 69,800 63,358 27,266 28,065 28,065 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $119,423 $119,423 $116,021 $119,424 $119,424 Town’s contributions as a percentage of covered payroll 58.45% 53.05% 23.50% 23.50% 23.50% 2015 2014 2013 2012 2011 Statutorily required contribution $28,065 $38,431 $43,518 $40,861 $34,226 Town’s contributions in relation to the statutorily required contribution 28,065 38,431 43,518 40,861 34,226 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $119,424 $119,423 $119,423 $119,423 $123,858 Town’s contributions as a percentage of covered payroll 23.50% 32.18% 36.44% 34.22% 27.63% 95AMENDED Regular Council Meeting 01/19/2021 Page 255 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2020 See accompanying notes to pension plan schedules. PSPRS Reporting Fiscal Year 2020 2019 2018 2017 2016 Actuarially determined contribution $2,110,954 $2,003,419 $1,782,576 $1,381,861 $1,322,941 Town’s contributions in relation to the actuarially determined contribution $2,110,954 2,003,419 1,782,576 1,381,861 1,322,941 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $6,402,828 $6,270,642 $5,542,238 $5,614,773 $5,315,870 Town’s contributions as a percentage of covered payroll 32.97% 31.95% 32.16% 24.61% 24.89% 2015 2014 2013 2012 2011 Actuarially determined contribution $1,006,859 $ 797,871 $ 831,677 $778,039 $644,505 Town’s contributions in relation to the actuarially determined contribution 1,006,859 797,871 831,677 778,039 644,505 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $4,900,569 $4,638,415 $4,498,048 $4,512,699 $4,254,314 Town’s contributions as a percentage of covered payroll 20.55% 17.20% 18.49% 17.24% 15.15% 96AMENDED Regular Council Meeting 01/19/2021 Page 256 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOWN PENSION CONTRIBUTIONS JUNE 30, 2020 See accompanying notes to pension plan schedules. CORP - Dispatchers Reporting Fiscal Year 2020 2019 2018 2017 2016 Actuarially determined contribution $70,988 $83,517 $57,269 $51,210 $48,648 Town’s contributions in relation to the actuarially determined contribution 70,988 83,517 57,269 51,210 48,648 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $369,921 $401,139 $ 407,607 $ 404,507 $ 409,843 Town’s contributions as a percentage of covered payroll 19.19% 20.82% 14.05% 12.66% 11.87% 2015 2014 2013 2012 2011 Actuarially determined contribution $49,045 $ 48,667 $ 32,506 $ 25,550 $ 24,843 Town’s contributions in relation to the actuarially determined contribution 49,045 48,667 32,506 25,550 24,843 Town’s contribution deficiency (excess) $ - $ - $ - $ - $ - Town’s covered payroll $ 430,892 $ 456,106 $ 443,980 $ 530,695 $ 536,843 Town’s contributions as a percentage of covered payroll 11.38% 10.67% 7.32% 4.25% 4.63% 97AMENDED Regular Council Meeting 01/19/2021 Page 257 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO PENSION PLAN SCHEDULES JUNE 30, 2020 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 as of the 2018 actuarial valuation 18 years Asset valuation method 7-year smoothed market value; 80%/120% market corridor Actuarial assumptions: Investment rate of return In the 2017 actuarial valuation, the investment rate of return was decreased from 7.5% to 7.4%. In the 2016 actuarial valuation, the investment rate of return was decreased from 7.85% to 7.5%. In the 2013 actuarial valuation, the investment rate of return was decreased from 8.0% to 7.85%. Projected salary increases In the 2017 actuarial valuation, projected salary increases were decreased from 4.0%-8.0% to 3.5%-7.5% for PSPRS and from 4.0%- 7.25% to 3.5%-6.5% for CORP. In the 2014 actuarial valuation, projected salary increases were decreased from 4.5%-8.5% to 4.0%- 8.0% for PSPRS and from 4.5%-7.75% to 4.0%-7.25% for CORP. In the 2013 actuarial valuation, projected salary increases were decreased from 5.0%-9.0% to 4.5%-8.5% for PSPRS and from 5.0%-8.25% to 4.5%-7.75% for CORP. Wage growth In the 2017 actuarial valuation, wage growth was decreased from 4% to 3.5% for PSPRS and CORP. In the 2014 actuarial valuation, wage growth was decreased from 4.5% to 4.0% for PSPRS and CORP. In the 2013 actuarial valuation, wage growth was decreased from 5.0% to 4.5% for PSPRS and CORP. Retirement age Experience-based table of rates that is specific to the type of eligibility condition. Last updated for the 2012 valuation pursuant to an experience study of the period July 1, 2006 - June 30, 2011. Mortality In the 2017 actuarial valuation, changed to RP-2014 tables, with 75% of MP-2016 fully generational projection scales. 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 98AMENDED Regular Council Meeting 01/19/2021 Page 258 of 402 TOWN OF MARANA, ARIZONA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO PENSION PLAN SCHEDULES JUNE 30, 2020 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. 99AMENDED Regular Council Meeting 01/19/2021 Page 259 of 402 This page intentionally left blank 100AMENDED Regular Council Meeting 01/19/2021 Page 260 of 402 COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES 101AMENDED Regular Council Meeting 01/19/2021 Page 261 of 402 This page intentionally left blank 102AMENDED Regular Council Meeting 01/19/2021 Page 262 of 402 OTHER MAJOR GOVERNMENTAL FUNDS SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – BUDGET AND ACTUAL 103AMENDED Regular Council Meeting 01/19/2021 Page 263 of 402 This page intentionally left blank 104AMENDED Regular Council Meeting 01/19/2021 Page 264 of 402 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, 2020 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Special assessments 2,873,670$ 2,873,670$ 2,091,138$ (782,532)$ Total revenues 2,873,670 2,873,670 2,091,138 (782,532) Expenditures: Debt service - Principal retirement 3,536,000 3,536,000 2,574,000 962,000 Interest and fiscal charges 239,170 239,170 230,517 8,653 Total expenditures 3,775,170 3,775,170 2,804,517 970,653 Excess (deficiency) of revenues over expenditures (901,500) (901,500) (713,379) 188,121 Fund balances, beginning of year - - 1,142,626 1,142,626 Fund balances, end of year (901,500)$ (901,500)$ 429,247$ 1,330,747$ 105AMENDED Regular Council Meeting 01/19/2021 Page 265 of 402 Budgeted Amounts Original Final Actual Variance - Positive (Negative) Revenues: Sales taxes 5,371,050$ 5,371,050$ 8,657,955$ 3,286,905$ Contributions - - 1,512 1,512 Investment income 50,000 50,000 302,457 252,457 Total revenues 5,421,050 5,421,050 8,961,924 3,540,874 Expenditures: Current - General government - - 979,396 (979,396) Capital outlay 16,434,682 16,434,682 4,739,951 11,694,731 Total expenditures 16,434,682 16,434,682 5,719,347 10,715,335 Excess (deficiency) of revenues over expenditures (11,013,632) (11,013,632) 3,242,577 14,256,209 Other financing sources (uses): Transfers in - - 916,011 916,011 Transfers out (691,899) (691,899) (691,899) - Total other financing sources (uses)(691,899) (691,899) 224,112 916,011 Changes in fund balances (11,705,531) (11,705,531) 3,466,689 15,172,220 Fund balances, beginning of year - - 13,383,889 13,383,889 Fund balances, end of year (11,705,531)$ (11,705,531)$ 16,850,578$ 28,556,109$ TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - TRANSPORTATION CAPITAL YEAR ENDED JUNE 30, 2020 106AMENDED Regular Council Meeting 01/19/2021 Page 266 of 402 NON-MAJOR GOVERNMENTAL FUNDS 107AMENDED Regular Council Meeting 01/19/2021 Page 267 of 402 Special Revenue Capital Projects Debt Service Total Non-Major Governmental Funds ASSETS Cash and cash equivalents 3,272,626$ 15,098,907$ -$ 18,371,533$ Taxes receivable - 564 4,702 5,266 Accounts receivable 1,001 - - 1,001 Interest receivable - 8,312 8 8,320 Development agreement receivable - 60,397 - 60,397 Due from governments 296,635 29,682 - 326,317 Prepaid items - - 4,000 4,000 Restricted cash and investments - - 5,721,312 5,721,312 Total assets 3,570,262$ 15,197,862$ 5,730,022$ 24,498,146$ LIABILITIES Accounts payable 10,230$ 89,235$ -$ 99,465$ Retainage payable - 625 - 625 Accrued payroll and employee benefits 3,757 - - 3,757 Due to other funds 33,948 864,176 - 898,124 Deposits held for others - 62,400 - 62,400 Unearned revenue - 846 - 846 Total liabilities 47,935 1,017,282 - 1,065,217 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 9,060 - - 9,060 Total deferred inflows of resources 9,060 - - 9,060 FUND BALANCES (DEFICITS) Fund balances: Nonspendable - - 4,000 4,000 Restricted 3,522,327 13,730,240 5,726,022 22,978,589 Committed - 1,314,081 - 1,314,081 Unassigned (9,060) (863,741) - (872,801) Total fund balances 3,513,267 14,180,580 5,730,022 23,423,869 Total liabilities, deferred inflows of resources, and fund balances 3,570,262$ 15,197,862$ 5,730,022$ 24,498,146$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE JUNE 30, 2020 108AMENDED Regular Council Meeting 01/19/2021 Page 268 of 402 Special Revenue Capital Projects Debt Service Total Non-Major Governmental Funds Revenues: Sales tax 1,288,972$ 260,075$ -$ 1,549,047$ Property tax - 130,389 1,030,735 1,161,124 Intergovernmental 45,122 186,366 - 231,488 Licenses, fees & permits - 2,901,677 - 2,901,677 Fines, forfeitures & penalties 59,279 - - 59,279 Contributions - 12,610 13,627 26,237 Investment income - 207,291 2,504 209,795 Miscellaneous 10,730 - - 10,730 Total revenues 1,404,103 3,698,408 1,046,866 6,149,377 Expenditures: Current - General government 661,569 8,193 - 669,762 Highways and streets - 21,596 - 21,596 Economic and community development 319,652 - - 319,652 Culture and recreation - 39,613 - 39,613 Capital outlay 43,206 1,482,411 2,821,867 4,347,484 Debt service - Principal retirement - - 3,989,000 3,989,000 Interest and fiscal charges - - 2,753,843 2,753,843 Bond issuance costs - - 385,884 385,884 Total expenditures 1,024,427 1,551,813 9,950,594 12,526,834 Excess (deficiency) of revenues over expenditures 379,676 2,146,595 (8,903,728) (6,377,457) Other financing sources (uses): Issuance of debt - - 3,195,000 3,195,000 Premium on bonds issued - - 68,460 68,460 Transfers in - 733,141 5,982,474 6,715,615 Transfers out - (2,941,761) - (2,941,761) Total other financing sources (uses)- (2,208,620) 9,245,934 7,037,314 Change in fund balances 379,676 (62,025) 342,206 659,857 Fund balances, beginning of year 3,133,591 14,242,605 5,387,816 22,764,012 Fund balances, end of year 3,513,267$ 14,180,580$ 5,730,022$ 23,423,869$ 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, 2020 109AMENDED Regular Council Meeting 01/19/2021 Page 269 of 402 This page intentionally left blank 110AMENDED Regular Council Meeting 01/19/2021 Page 270 of 402 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. 111AMENDED Regular Council Meeting 01/19/2021 Page 271 of 402 Community Development Block Grant Affordable Housing Bed Tax ASSETS Cash and cash equivalents -$ 125,485$ 2,088,416$ Accounts receivable - - - Due from governments 43,008 - 253,627 Total assets 43,008$ 125,485$ 2,342,043$ LIABILITIES Accounts payable 9,060$ -$ 883$ Accrued payroll and employee benefits - - 3,757 Due to other funds 33,948 - - Total liabilities 43,008 - 4,640 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 9,060 - - Total deferred inflows of resources 9,060 - - FUND BALANCES (DEFICITS) Nonspendable - - - Restricted - 125,485 2,337,403 Unassigned (9,060) - - Total fund balances (9,060) 125,485 2,337,403 Total liabilities, deferred inflows of resources, and fund balances 43,008$ 125,485$ 2,342,043$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS JUNE 30, 2020 112AMENDED Regular Council Meeting 01/19/2021 Page 272 of 402 Judicial Collection Enhancement Fill-the-Gap Local Technology Totals 116,805$ 99,876$ 842,044$ 3,272,626$ - 1,001 - 1,001 - - - 296,635 116,805$ 100,877$ 842,044$ 3,570,262$ -$ -$ 287$ 10,230$ - - - 3,757 - - - 33,948 - - 287 47,935 - - - 9,060 - - - 9,060 - - - - 116,805 100,877 841,757 3,522,327 - - - (9,060) 116,805 100,877 841,757 3,513,267 116,805$ 100,877$ 842,044$ 3,570,262$ 113AMENDED Regular Council Meeting 01/19/2021 Page 273 of 402 Community Development Block Grant Affordable Housing Bed Tax Judicial Collection Enhancement Revenues: Sales taxes -$ -$ 1,288,972$ -$ Intergovernmental 45,122 - - - Fines, forfeitures & penalties - - - 8,960 Miscellaneous - 10,730 - - Total revenues 45,122 10,730 1,288,972 8,960 Expenditures: Current - General government - - 574,992 39,981 Economic and community development 50,395 23,473 245,784 - Capital outlay - 43,206 - - Total expenditures 50,395 66,679 820,776 39,981 Excess (deficiency) of revenues over expenditures (5,273) (55,949) 468,196 (31,021) Change in fund balances (5,273) (55,949) 468,196 (31,021) Fund balances (deficits), beginning of year (3,787) 181,434 1,869,207 147,826 Fund balances (deficits), end of year (9,060)$ 125,485$ 2,337,403$ 116,805$ TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2020 114AMENDED Regular Council Meeting 01/19/2021 Page 274 of 402 Fill-the-Gap Local Technology Totals -$ -$ 1,288,972$ - - 45,122 4,001 46,318 59,279 - - 10,730 4,001 46,318 1,404,103 - 46,596 661,569 - - 319,652 - - 43,206 - 46,596 1,024,427 4,001 (278) 379,676 4,001 (278) 379,676 96,876 842,035 3,133,591 100,877$ 841,757$ 3,513,267$ 115AMENDED Regular Council Meeting 01/19/2021 Page 275 of 402 Community Development Block Grant Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 150,000$ 150,000$ 45,122$ (104,878)$ Total revenues 150,000 150,000 45,122 (104,878) Expenditures: Current - Economic and community development 150,000 150,000 50,395 99,605 Capital outlay - - - - Total expenditures 150,000 150,000 50,395 99,605 Change in fund balance - - (5,273) (5,273) Fund balance, July 1, 2019 - - (3,787) (3,787) Fund balance (deficits), June 30, 2020 -$ -$ (9,060)$ (9,060)$ 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, 2020 116AMENDED Regular Council Meeting 01/19/2021 Page 276 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Miscellaneous 10,000$ 10,000$ 10,730$ 730$ Total revenues 10,000 10,000 10,730 730 Expenditures: Current - Economic and community development 50,000 56,723 23,473 33,250 Capital outlay 43,206 36,483 43,206 (6,723) Total expenditures 93,206 93,206 66,679 26,527 Change in fund balance (83,206) (83,206) (55,949) 27,257 Fund balance, July 1, 2019 - - 181,434 181,434 Fund balance (deficits), June 30, 2020 (83,206)$ (83,206)$ 125,485$ 208,691$ Affordable Housing Revolving Fund 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, 2020 117AMENDED Regular Council Meeting 01/19/2021 Page 277 of 402 Bed Tax Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Sales taxes 1,227,600$ 1,227,600$ 1,288,972$ 61,372$ Miscellaneous - - - - Total revenues 1,227,600 1,227,600 1,288,972 61,372 Expenditures: Current - General government 912,792 912,792 574,992 337,800 Economic and community development 314,808 314,808 245,784 69,024 Total expenditures 1,227,600 1,227,600 820,776 406,824 Change in fund balance - - 468,196 468,196 Fund balance, July 1, 2019 - - 1,869,207 1,869,207 Fund balance (deficits), June 30, 2020 -$ -$ 2,337,403$ 2,337,403$ 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, 2020 118AMENDED Regular Council Meeting 01/19/2021 Page 278 of 402 Judicial Collection Enhancement Fund Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 8,000$ 8,000$ 8,960$ 960$ Total revenues 8,000 8,000 8,960 960 Expenditures: Current - General government 166,000 166,000 39,981 126,019 Total expenditures 166,000 166,000 39,981 126,019 Change in fund balance (158,000) (158,000) (31,021) 126,979 Fund balance, July 1, 2019 - - 147,826 147,826 Fund balance (deficits), June 30, 2020 (158,000)$ (158,000)$ 116,805$ 274,805$ 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, 2020 119AMENDED Regular Council Meeting 01/19/2021 Page 279 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 4,500$ 4,500$ 4,001$ (499)$ Total revenues 4,500 4,500 4,001 (499) Expenditures: Current - General government 34,500 34,500 - 34,500 Total expenditures 34,500 34,500 - 34,500 Change in fund balance (30,000) (30,000) 4,001 34,001 Fund balance, July 1, 2019 - - 96,876 96,876 Fund balance (deficits), June 30, 2020 (30,000)$ (30,000)$ 100,877$ 130,877$ Fill-the-Gap 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, 2020 120AMENDED Regular Council Meeting 01/19/2021 Page 280 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Fines, forfeitures & penalties 45,000$ 45,000$ 46,318$ 1,318$ Total revenues 45,000 45,000 46,318 1,318 Expenditures: Current - General government 430,000 430,000 46,596 383,404 Total expenditures 430,000 430,000 46,596 383,404 Change in fund balance (385,000) (385,000) (278) 384,722 Fund balance, July 1, 2019 - - 842,035 842,035 Fund balance (deficits), June 30, 2020 (385,000)$ (385,000)$ 841,757$ 1,226,757$ Local Technology Fund 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, 2020 121AMENDED Regular Council Meeting 01/19/2021 Page 281 of 402 This page intentionally left blank 122AMENDED Regular Council Meeting 01/19/2021 Page 282 of 402 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. 123AMENDED Regular Council Meeting 01/19/2021 Page 283 of 402 Northwest Transportation Impact Fees Northeast Transportation Impact Fees South Transportation Impact Fees Park Impact Fees ASSETS Cash and cash equivalents 443,625$ -$ 6,782,397$ 2,955,953$ Taxes receivable - - - - Interest receivable - - 7,553 - Development agreement receivable - - - - Due from governments - - - - Total assets 443,625$ -$ 6,789,950$ 2,955,953$ LIABILITIES Accounts payable -$ -$ 954$ 83,324$ Retainage payable - - - - Due to other funds - 863,116 - - Deposits held for others - -- - Unearned revenue - -- - Total liabilities - 863,116 954 83,324 FUND BALANCES (DEFICITS) Restricted 443,625 - 6,788,996 2,872,629 Committed - - - - Unassigned - (863,116) - - Total fund balances (deficits) 443,625 (863,116) 6,788,996 2,872,629 Total liabilities, deferred inflows of resources, and fund balances 443,625$ -$ 6,789,950$ 2,955,953$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUNDS JUNE 30, 2020 124AMENDED Regular Council Meeting 01/19/2021 Page 284 of 402 PAG/RTA Capital Downtown Reinvestment Other Capital Projects Gladden Farms Capital Vanderbilt Farms Capital Saguaro Springs Capital Totals -$ 1,287,329$ 2,716,068$ 747,231$ -$ 166,304$ 15,098,907$ - -- 476 - 88 564 - -759 - - - 8,312 - -60,397 - - - 60,397 1,060 26,752 1,870 - - - 29,682 1,060$ 1,314,081$ 2,779,094$ 747,707$ -$ 166,392$ 15,197,862$ -$ -$ 4,957$ -$ -$ -$ 89,235$ 625 - - - - - 625 1,060 - - - - - 864,176 - - 62,400 - - - 62,400 - - 846 - - - 846 1,685 - 68,203 - - - 1,017,282 - - 2,710,891 747,707 - 166,392 13,730,240 - 1,314,081 - - - -1,314,081 (625) - - - - - (863,741) (625) 1,314,081 2,710,891 747,707 - 166,392 14,180,580 1,060$ 1,314,081$ 2,779,094$ 747,707$ -$ 166,392$ 15,197,862$ 125AMENDED Regular Council Meeting 01/19/2021 Page 285 of 402 Northwest Transportation Impact Fees Northeast Transportation Impact Fees South Transportation Impact Fees Park Impact Fees Revenues: Sales tax -$ -$ -$ -$ Property tax - - - - Intergovernmental - - - - Licenses, fees & permits 175,568 134,742 1,499,954 851,506 Contributions - - - - Investment income 2,734 470 126,601 23,980 Total revenues 178,302 135,212 1,626,555 875,486 Expenditures: Current - General government - - - - Highways and streets - - - - Culture and recreation - - - 32,369 Capital outlay - - 5,427 414,225 Total expenditures - - 5,427 446,594 Excess (deficiency) of revenues over expenditures 178,302 135,212 1,621,128 428,892 Other financing sources (uses): Transfers in - - - 425,676 Transfers out - (484,541) (499,352) - Total other financing sources (uses) - (484,541) (499,352) 425,676 Change in fund balances 178,302 (349,329) 1,121,776 854,568 Fund balances (deficits), beginning of year 265,323 (513,787) 5,667,220 2,018,061 Fund balances (deficits), end of year 443,625$ (863,116)$ 6,788,996$ 2,872,629$ TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NON-MAJOR CAPITAL PROJECT FUNDS YEAR ENDED JUNE 30, 2020 126AMENDED Regular Council Meeting 01/19/2021 Page 286 of 402 PAG/RTA Capital Downtown Reinvestment Other Capital Projects Gladden Farms Capital Vanderbilt Farms Capital Saguaro Springs Capital Totals -$ 260,075$ -$ -$ -$ -$ 260,075$ - - - 80,946 5,736 43,707 130,389 92,189 - 94,177 - - - 186,366 - - 239,907 - - - 2,901,677 - - 12,610 - - - 12,610 - - 53,506 - - - 207,291 92,189 260,075 400,200 80,946 5,736 43,707 3,698,408 - - - 3,930 1,526 2,737 8,193 - - 21,596 - - - 21,596 - - 7,244 - - - 39,613 48,163 - 1,014,596 - - - 1,482,411 48,163 - 1,043,436 3,930 1,526 2,737 1,551,813 44,026 260,075 (643,236) 77,016 4,210 40,970 2,146,595 - - 307,465 - - - 733,141 (100) - (1,923,885) - (33,883) - (2,941,761) (100) - (1,616,420) - (33,883) - (2,208,620) 43,926 260,075 (2,259,656) 77,016 (29,673) 40,970 (62,025) (44,551) 1,054,006 4,970,547 670,691 29,673 125,422 14,242,605 (625)$ 1,314,081$ 2,710,891$ 747,707$ -$ 166,392$ 14,180,580$ 127AMENDED Regular Council Meeting 01/19/2021 Page 287 of 402 Northwest Transportation Impact Fees Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 83,894$ 83,894$ 175,568$ 91,674$ Investment income - - 2,734 2,734 Total revenues 83,894 83,894 178,302 94,408 Expenditures: Current - Highways and streets - - - - Capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 83,894 83,894 178,302 94,408 Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances 83,894 83,894 178,302 94,408 Fund balances (deficits), July 1, 2019 - - 265,323 265,323 Fund balances (deficits), June 30, 2020 83,894$ 83,894$ 443,625$ 359,731$ 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, 2020 128AMENDED Regular Council Meeting 01/19/2021 Page 288 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 138,240$ 138,240$ 134,742$ (3,498)$ Investment income - - 470 470 Total revenues 138,240 138,240 135,212 (3,028) Expenditures: Current - Highways and streets - - - - Capital outlay - - - - Total expenditures - - - - Excess (deficiency) of revenues over expenditures 138,240 138,240 135,212 (3,028) Other financing sources (uses): Transfers out (484,541) (484,541) (484,541) - Total other financing sources (uses)(484,541) (484,541) (484,541) - Change in fund balances (346,301) (346,301) (349,329) (3,028) Fund balances (deficits), July 1, 2019 - - (513,787) (513,787) Fund balances (deficits), June 30, 2020 (346,301)$ (346,301)$ (863,116)$ (516,815)$ 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, 2020 129AMENDED Regular Council Meeting 01/19/2021 Page 289 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 907,555$ 907,555$ 1,499,954$ 592,399$ Investment income - - 126,601 126,601 Total revenues 907,555 907,555 1,626,555 719,000 Expenditures: Current - Highways and streets - - - - Capital outlay 500,000 500,000 5,427 494,573 Total expenditures 500,000 500,000 5,427 494,573 Excess (deficiency) of revenues over expenditures 407,555 407,555 1,621,128 1,213,573 Other financing sources (uses): Transfers out (499,352) (499,352) (499,352) - Total other financing sources (uses)(499,352) (499,352) (499,352) - Change in fund balances (91,797) (91,797) 1,121,776 1,213,573 Fund balances (deficits), July 1, 2019 - - 5,667,220 5,667,220 Fund balances (deficits), June 30, 2020 (91,797)$ (91,797)$ 6,788,996$ 6,880,793$ 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, 2020 South Transportation Impact Fees 130AMENDED Regular Council Meeting 01/19/2021 Page 290 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental -$ -$ -$ -$ Licenses, fees & permits 1,056,507 1,056,507 851,506 (205,001) Investment income - - 23,980 23,980 Total revenues 1,056,507 1,056,507 875,486 (181,021) Expenditures: Current - Culture and recreation - 20,278 32,369 (12,091) Capital outlay 678,491 658,213 414,225 243,988 Total expenditures 678,491 678,491 446,594 231,897 Excess (deficiency) of revenues over expenditures 378,016 378,016 428,892 50,876 Other financing sources: Transfers in - - 425,676 425,676 Total other financing sources - - 425,676 425,676 Change in fund balances 378,016 378,016 854,568 476,552 Fund balances (deficits), July 1, 2019 - - 2,018,061 2,018,061 Fund balances (deficits), June 30, 2020 378,016$ 378,016$ 2,872,629$ 2,068,937$ 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, 2020 131AMENDED Regular Council Meeting 01/19/2021 Page 291 of 402 PAG Capital Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Licenses, fees & permits 110,000$ 110,000$ 92,189$ (17,811)$ Contributions - - - - Total revenues 110,000 110,000 92,189 (17,811) Expenditures: Current - Highways and streets Capital outlay 119,996 119,996 48,163 71,833 Total expenditures 119,996 119,996 48,163 71,833 Excess (deficiency) of revenues over expenditures (9,996) (9,996) 44,026 54,022 Other financing sources (uses): Transfers out - - (100) - Total other financing sources (uses)- - (100) (100) Change in fund balances (9,996) (9,996) 43,926 53,922 Fund balances (deficits), July 1, 2019 - - (44,551) (44,551) Fund balances (deficits), June 30, 2020 (9,996)$ (9,996)$ (625)$ 9,371$ TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - PAG CAPITAL YEAR ENDED JUNE 30, 2020 132AMENDED Regular Council Meeting 01/19/2021 Page 292 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Sales tax 234,000$ 234,000$ 260,075 26,075$ Total revenues 234,000 234,000 260,075 26,075 Expenditures: Current - Economic and community development 125,000 125,000 - 125,000 Capital outlay 349,125 349,125 - 349,125 Total expenditures 474,125 474,125 - 474,125 Excess (deficiency) of revenues over expenditures (240,125) (240,125) 260,075 500,200 Other financing sources (uses): Transfers in - - - - Total other financing sources (uses)- - - - Change in fund balances (240,125) (240,125) 260,075 500,200 Fund balances (deficits), July 1, 2019 - - 1,054,006 (1,054,006) Fund balances (deficits), June 30, 2020 (240,125)$ (240,125)$ 1,314,081$ (553,806)$ 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, 2020 133AMENDED Regular Council Meeting 01/19/2021 Page 293 of 402 Other Captial Projects Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Intergovernmental 709,275$ 709,275$ 94,177$ (615,098)$ Licenses, fees & permits 228,312 228,312 239,907 11,595 Contributions 35,000 35,000 12,610 (22,390) Investment income - - 53,506 53,506 Total revenues 972,587 972,587 400,200 (572,387) Expenditures: Highways and streets 35,000 35,000 21,596 13,404 Culture and recreation 17,000 17,000 7,244 9,756 Capital outlay 3,827,812 3,945,282 1,014,596 2,930,686 Total expenditures 3,879,812 3,997,282 1,043,436 2,953,846 Excess (deficiency) of revenues over (2,907,225) (3,024,695) (643,236) 2,381,459 expenditures Other financing sources (uses): Transfers in 234,316 234,316 307,465 73,149 Transfers out - - (1,923,885) (1,923,885) Total other financing sources (uses) 234,316 234,316 (1,616,420) (1,850,736) Changes in fund balances (2,672,909) (2,790,379) (2,259,656) 530,723 Fund balances (deficits), July 1, 2019 - - 4,970,547 4,970,547 Fund balances (deficits), June 30, 2020 (2,672,909)$ (2,790,379)$ 2,710,891$ 5,501,270$ TOWN OF MARANA, ARIZONA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - OTHER CAPITAL PROJECTS YEAR ENDED JUNE 30, 2020 134AMENDED Regular Council Meeting 01/19/2021 Page 294 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property tax 82,309$ 82,309$ 80,946$ (1,363)$ Total revenues 82,309 82,309 80,946 (1,363) Expenditures: Current - General government 682,050 682,050 3,930 678,120 Capital outlay - - - - Total expenditures 682,050 682,050 3,930 678,120 Excess (deficiency) of revenues over expenditures (599,741) (599,741) 77,016 676,757 Other financing sources (uses): Transfers out - - - - Total other financing sources (uses)- - - - Change in fund balances (599,741) (599,741) 77,016 676,757 Fund balances (deficits), July 1, 2019 - - 670,691 670,691 Fund balances (deficits), June 30, 2020 (599,741)$ (599,741)$ 747,707$ 1,347,448$ 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, 2020 135AMENDED Regular Council Meeting 01/19/2021 Page 295 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property tax 5,736$ 5,736$ 5,736$ -$ Contributions 27,500 27,500 - (27,500) Total revenues 33,236 33,236 5,736 (27,500) Expenditures: Current - General government 28,100 28,100 1,526 26,574 Total expenditures 28,100 28,100 1,526 26,574 Excess (deficiency) of revenues over expenditures 5,136 5,136 4,210 (926) Other financing sources (uses): Transfers out (34,727) (34,727) (33,883) (844) Total other financing sources (uses)(34,727) (34,727) (33,883) (844) Change in fund balances (29,591) (29,591) (29,673) (82) Fund balances (deficits), July 1, 2019 - - 29,673 29,673 Fund balances (deficits), June 30, 2020 5,136$ 5,136$ -$ 29,591$ 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, 2020 Vanderbilt Farms Capital 136AMENDED Regular Council Meeting 01/19/2021 Page 296 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property tax 43,810$ 43,810$ 43,707$ (103)$ Contributions - - - - Total revenues 43,810 43,810 43,707 (103) Expenditures: Current - General government 139,500 139,500 2,737 136,763 Capital outlay - - - - Debt service - Bond issuance costs - - - - Total expenditures 139,500 139,500 2,737 136,763 Excess (deficiency) of revenues over expenditures (95,690) (95,690) 40,970 136,660 Other financing sources (uses): Bond proceeds - - - - Total other financing sources (uses)- - - - Change in fund balances (95,690) (95,690) 40,970 136,660 Fund balances (deficits), July 1, 2019 - - 125,422 125,422 Fund balances (deficits), June 30, 2020 (95,690)$ (95,690)$ 166,392$ 262,082$ 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, 2020 137AMENDED Regular Council Meeting 01/19/2021 Page 297 of 402 This page intentionally left blank 138AMENDED Regular Council Meeting 01/19/2021 Page 298 of 402 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. 139AMENDED Regular Council Meeting 01/19/2021 Page 299 of 402 2013 Bond Debt Service 2014 Bond Debt Service 2017 Bond Debt Service ASSETS Property taxes receivable -$ -$ -$ Interest receviable 8 - - Prepaid items 2,000 - 2,000 Restricted cash and investments 2,429,650 747,346 1,672,450 Total assets 2,431,658$ 747,346$ 1,674,450$ LIABILITIES AND FUND BALANCES Liabilities: Total liabilities - - - FUND BALANCES Nonspendable 2,000 - 2,000 Restricted 2,429,658 747,346 1,672,450 Total fund balances 2,431,658 747,346 1,674,450 Total liabilities and fund balances 2,431,658$ 747,346$ 1,674,450$ TOWN OF MARANA, ARIZONA COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS JUNE 30, 2020 140AMENDED Regular Council Meeting 01/19/2021 Page 300 of 402 Gladden Farms Debt Service Saguaro Springs Debt Service Totals 3,965$ 737$ 4,702$ - - 8 - - 4,000 584,864 287,002 5,721,312 588,829$ 287,739$ 5,730,022$ - - - - - 4,000 588,829 287,739 5,726,022 588,829 287,739 5,730,022 588,829$ 287,739$ 5,730,022$ 141AMENDED Regular Council Meeting 01/19/2021 Page 301 of 402 2013 Bond Debt Service 2014 Bond Debt Service 2017 Bond Debt Service Revenues: Property Taxes -$ -$ -$ Contributions - - - Investment income 371 262 - Total revenues 371 262 - Expenditures: Capital Outlay - - - Debt service - Principal retirement 1,745,000 679,000 1,200,000 Interest and fiscal charges 1,297,112 113,346 898,900 Bond Issuance Costs - - - Total expenditures 3,042,112 792,346 2,098,900 Excess (deficiency) of revenues over expenditures (3,041,741) (792,084) (2,098,900) Other financing sources (uses): Issuance of debt - - - Premium on bonds issued - - - Transfers in 3,068,150 800,424 2,113,900 Total other financing sources (uses)3,068,150 800,424 2,113,900 Change in fund balances 26,409 8,340 15,000 Fund balances, beginning of year 2,405,249 739,006 1,659,450 Fund balances, end of year 2,431,658$ 747,346$ 1,674,450$ TOWN OF MARANA, ARIZONA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NON-MAJOR DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 2020 142AMENDED Regular Council Meeting 01/19/2021 Page 302 of 402 Gladden Farms Debt Service Saguaro Springs Debt Service Totals 666,510$ 364,225$ 1,030,735$ 13,627 - 13,627 1,871 - 2,504 682,008 364,225 1,046,866 1,050,670 1,771,197 2,821,867 265,000 100,000 3,989,000 283,192 161,293 2,753,843 159,736 226,148 385,884 1,758,598 2,258,638 9,950,594 (1,076,590) (1,894,413) (8,903,728) 1,245,000 1,950,000 3,195,000 19,114 49,346 68,460 - - 5,982,474 1,264,114 1,999,346 9,245,934 187,524 104,933 342,206 401,305 182,806 5,387,816 588,829$ 287,739$ 5,730,022$ 143AMENDED Regular Council Meeting 01/19/2021 Page 303 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - 371 371 Total revenues - - 371 371 Expenditures: Debt service - Principal retirement 1,745,000 1,745,000 1,745,000 - Interest and fiscal charges 1,297,113 1,297,113 1,297,112 1 Total expenditures 3,042,113 3,042,113 3,042,112 1 Excess (deficiency) of revenues over expenditures (3,042,113) (3,042,113) (3,041,741) 372 Other financing sources (uses): Transfers in 3,070,300 3,070,300 3,068,150 2,150 Transfers out - - - - Total other financing sources (uses)3,070,300 3,070,300 3,068,150 2,150 Change in fund balances 28,187 28,187 26,409 (1,778) Fund balances (deficits), July 1, 2019 - - 2,405,249 2,405,249 Fund balances (deficits), June 30, 2020 28,187$ 28,187$ 2,431,658$ 2,403,471$ 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, 2020 2013 Bond Debt Service 144AMENDED Regular Council Meeting 01/19/2021 Page 304 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - 262 262 Total revenues - - 262 262 Expenditures: Debt service - Principal retirement 679,000 679,000 679,000 - Interest and fiscal charges 113,346 113,346 113,346 - Total expenditures 792,346 792,346 792,346 - Excess (deficiency) of revenues over expenditures (792,346) (792,346) (792,084) 262 Other financing sources (uses): Transfers in 800,689 800,689 800,424 265 Transfers out - - - - Total other financing sources (uses)800,689 800,689 800,424 265 Change in fund balances 8,343 8,343 8,340 (3) Fund balances (deficits), July 1, 2019 - - 739,006 739,006 Fund balances (deficits), June 30, 2020 8,343$ 8,343$ 747,346$ 739,003$ 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, 2020 2014 Bond Debt Service 145AMENDED Regular Council Meeting 01/19/2021 Page 305 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes -$ -$ -$ -$ Contributions - - - - Investment income - - - - Total revenues - - - - Expenditures: Debt service - Principal retirement 1,200,000 1,200,000 1,200,000 - Interest and fiscal charges 898,900 898,900 898,900 - Total expenditures 2,098,900 2,098,900 2,098,900 - Excess (deficiency) of revenues over expenditures (2,098,900) (2,098,900) (2,098,900) - Other financing sources (uses): Transfers in 2,115,899 2,115,899 2,113,900 1,999 Transfers out - - - - Total other financing sources (uses)2,115,899 2,115,899 2,113,900 1,999 Change in fund balances 16,999 16,999 15,000 (1,999) Fund balances (deficits), July 1, 2019 - - 1,659,450 1,659,450 Fund balances (deficits), June 30, 2020 16,999$ 16,999$ 1,674,450$ 1,657,451$ 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, 2020 2017 Bond Debt Service 146AMENDED Regular Council Meeting 01/19/2021 Page 306 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes 685,903$ 685,903$ 666,510$ (19,393)$ Contributions 33,180 33,180 13,627 (19,553) Investment income - - 1,871 1,871 Total revenues 719,083 719,083 682,008 (37,075) Expenditures: Capital Outlay 1,101,000 1,101,000 1,050,670 50,330 Debt service - Principal retirement 265,000 265,000 265,000 - Interest and fiscal charges 302,870 302,870 283,192 19,678 Bond Issuance Costs 125,200 125,200 159,736 (34,536) Total expenditures 1,794,070 1,794,070 1,758,598 35,472 Excess (deficiency) of revenues over expenditures (1,074,987) (1,074,987) (1,076,590) (1,603) Other financing sources (uses): Issuance of debt 1,255,000 1,255,000 1,245,000 10,000 Premium on bonds issued - - 19,114 (19,114) Total other financing sources (uses)1,255,000 1,255,000 1,264,114 (9,114) Change in fund balances 180,013 180,013 187,524 7,511 Fund balances (deficits), July 1, 2019 - - 401,305 401,305 Fund balances (deficits), June 30, 2020 180,013$ 180,013$ 588,829$ 408,816$ 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, 2020 147AMENDED Regular Council Meeting 01/19/2021 Page 307 of 402 Original Budget Final Budget Actual Variance - Positive (Negative) Revenues: Property Taxes 365,087$ 365,087$ 364,225$ (862)$ Contributions - - - - Investment income - - - - Total revenues 365,087 365,087 364,225 (862) Expenditures: Capital Outlay 1,125,000 1,125,000 1,771,197 (646,197) Debt service - Principal retirement 171,575 171,575 100,000 71,575 Interest and fiscal charges 103,075 103,075 161,293 (58,218) Bond Issuance Costs 125,000 125,000 226,148 (101,148) Total expenditures 1,524,650 1,524,650 2,258,638 (733,988) Excess (deficiency) of revenues over expenditures (1,159,563) (1,159,563) (1,894,413) (734,850) Other financing sources (uses): Issuance of debt (1,250,000) 1,250,000 1,950,000 (700,000) Premium on bonds issued - - 49,346 (49,346) Total other financing sources (uses)(1,250,000) 1,250,000 1,999,346 (749,346) Change in fund balances (2,409,563) 90,437 104,933 14,496 Fund balances (deficits), July 1, 2019 - - 182,806 182,806 Fund balances (deficits), June 30, 2020 (2,409,563)$ 90,437$ 287,739$ 197,302$ 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, 2020 Saguaro Springs Debt Service 148AMENDED Regular Council Meeting 01/19/2021 Page 308 of 402 STATISTICAL INFORMATION 149AMENDED Regular Council Meeting 01/19/2021 Page 309 of 402 This page intentionally left blank 150AMENDED Regular Council Meeting 01/19/2021 Page 310 of 402 TOWN OF MARANA, ARIZONA STATISTICAL SECTION JUNE 30, 2020 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 1 152 Changes in Net Position - Last Ten Fiscal Years 2 154 Fund Balances of Governmental Funds - Last Ten Fiscal Years 3 158 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 4 160 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 5 164 Assessed Value, Estimated Actual Value and Assessment Ratios of Taxable Property - 6 165 Last Ten Years Property Tax Rates - Direct and Overlapping Governments - Last Ten Years 7 166 Principal Property Taxpayers - Current Year and Nine Years Ago 8 168 Property Tax Levies and Collections - Last Ten Fiscal Years 9 169 Tangerine Farms Road Improvement District Active Assessments 10 170 Sales Tax by Industry - Last Ten Years 11 182 Excise Tax Collections - Last Ten Years 12 184 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 13 186 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 14 187 Direct and Overlapping Governmental Activities Debt 15 188 Legal Debt Margin Information 16 189 Pledged-Revenue Coverage - Last Ten Fiscal Years 17 190 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 18 192 Principal Employers - Current Year and Nine Years Ago 19 193 Principal Retail and Contracting Sales Taxpayers - Current Year and Nine Years Ago 20 194 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 21 195 Single Family Residential Permits Issued - Last Ten Years 22 196 Capital Assets Statistics by Function 23 197 151AMENDED Regular Council Meeting 01/19/2021 Page 311 of 402 Schedule 1 2011 2012 2013 2014 Governmental activities Net investment in capital assets 196,326$ 194,287$ 184,949$ 189,171$ Restricted 28,136 29,004 62,437 58,820 Unrestricted 38,889 39,911 1,384 (283) Total governmental activities net position 263,351 263,202 248,770 247,708 Business-type activities Net investment in capital assets 42,148 112,528 111,045 109,111 Restricted 73 146 219 293 Unrestricted (2,683) (17,519) (2,677) (208) Total business-type activities net position 39,538 95,155 108,587 109,196 Primary government Net investment in capital assets 238,474 306,815 295,994 298,282 Restricted 28,209 29,150 62,656 59,113 Unrestricted 36,206 22,392 (1,293) (491) Total primary government net position 302,889$ 358,357$ 357,357$ 356,904$ Source: Statement of Net Position (Amounts expressed in thousands) TOWN OF MARANA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual basis of accounting) 152AMENDED Regular Council Meeting 01/19/2021 Page 312 of 402 Schedule 1 2015 2016 2017 2018 2019 2020 (as restated)(as restated)(as restated) 190,297$ 193,845$ 210,137$ 236,208$ 243,685$ 244,996$ 36,418 43,127 31,163 17,242 19,985 21,837 (4,283) (6,492) 5,119 16,272 16,827 27,323 222,432 230,480 246,419 269,722 280,497 294,156 109,649 112,357 101,524 95,777 97,435 102,911 365 365 365 365 366 770 984 1,313 16,319 (4,285) (2,176) 2,332 110,998 114,035 118,208 91,857 95,625 106,013 299,946 306,202 311,661 331,985 341,120 347,907 36,783 43,492 31,528 17,607 20,351 22,607 (3,299) (5,179) 21,439 11,987 14,651 29,655 333,430$ 344,515$ 364,628$ 361,579$ 376,122$ 400,169$ 153AMENDED Regular Council Meeting 01/19/2021 Page 313 of 402 Schedule 2 2011 2012 2013 2014 Expenses Governmental activities: General government 10,643$ 10,833$ 9,532$ 10,662$ Public safety 9,044 10,206 11,777 12,134 Highways and streets 15,425 17,233 18,327 19,053 Health & Welfare 86 23 23 23 Culture & recreation 3,335 2,173 3,831 3,131 Economic & community development 4,596 4,258 4,123 4,691 Interest on long-term debt 5,173 4,721 4,312 4,543 Total governmental activities expenses 48,302 49,447 51,925 54,237 Business-type activities: Airport 3,392 1,112 1,179 1,197 Wastewater N/A 3,831 2,599 2,756 Water 1,273 3,074 3,779 5,244 Total business-type activities expenses 4,665 8,017 7,557 9,197 Total primary government expenses 52,967$ 57,464$ 59,482$ 63,434$ Program Revenues Governmental activities: Charges for services: General government 830$ 881$ 975$ 941$ Culture and recreation 140 134 216 200 Economic & community development 2,256 2,513 3,906 3,386 Operating grants and contributions 3,555 3,202 3,747 4,442 Capital grants and contributions 14,963 9,017 12,373 10,268 Total government activities program revenues 21,744 15,747 21,217 19,237 Business-type activities: Charges for services: Airport 238 233 239 248 Wastewater N/A 241 730 834 Water 3,103 3,281 3,455 3,766 Capital grants and contributions 2,669 60,207 1,958 2,534 Total business-type activity program revenues 6,010 63,962 6,382 7,382 Total primary government program revenues 27,754 79,709 27,599 26,619 Net (expense)/revenue Governmental activities (26,558) (33,700) (33,699) (35,000) Business-type activities 1,345 55,945 55,944 (1,815) Total primary government net expense (25,213)$ 22,245$ 22,245$ (36,815)$ TOWN OF MARANA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) (Amounts expressed in thousands) 154AMENDED Regular Council Meeting 01/19/2021 Page 314 of 402 Schedule 2 2015 2016 2017 2018 2019 2020 14,707$ 17,531$ 19,393$ 18,492$ 23,846$ 21,040$ 14,324 14,423 16,736 16,114 16,059 19,981 18,522 22,659 40,172 27,893 21,629 25,004 - - 278 236 453 442 4,433 3,422 6,006 5,147 5,294 6,122 4,796 4,779 4,902 4,328 4,076 4,174 4,106 3,962 2,335 3,077 1,858 2,485 60,888 66,776 89,822 75,287 73,215 79,248 1,289 1,829 1,772 1,816 1,395 1,393 3,431 3,662 3,983 4,598 5,276 4,136 4,150 4,405 5,368 5,979 6,178 6,750 8,870 9,896 11,123 12,393 12,849 12,279 69,758$ 76,672$ 100,945$ 87,680$ 86,064$ 91,527$ 4,490$ 4,787$ 4,909$ 5,073$ 5,007$ 5,453$ 305 265 287 324 317 197 4,585 4,027 4,355 4,993 5,260 5,396 4,360 4,507 4,619 4,665 2,259 8,470 11,281 17,157 44,371 25,856 13,679 15,047 25,021 30,743 58,541 40,911 26,522 34,563 239 247 251 294 329 373 933 1,016 1,065 1,502 1,626 1,873 4,146 4,243 5,064 5,609 5,750 6,260 4,015 5,214 5,941 9,890 8,977 13,604 9,333 10,720 12,321 17,295 16,682 22,110 34,354 41,463 70,862 58,206 43,204 56,673 (35,867) (36,033) (31,281) (34,376) (46,693) (44,685) 463 824 1,198 4,902 3,833 9,831 (35,404)$ (35,209)$ (30,083)$ (29,474)$ (42,860)$ (34,854)$ 155AMENDED Regular Council Meeting 01/19/2021 Page 315 of 402 Schedule 2 2011 2012 2013 2014 General Revenues and Other Changes in Net Position Governmental activities: General revenues City sales taxes 22,948$ 24,539$ 24,768$ 26,226$ Property taxes 584 506 447 421 Franchise fees 322 333 349 377 State shared revenues 5,719 6,943 7,714 8,273 Investment income (loss)105 97 152 171 Miscellaneous 814 803 737 854 Gain on sale of assets - - 36 - Transfers 309 329 (15,912) (2,384) Total governmental activities 30,801 33,550 18,291 33,938 Business-type activities: General revenues Investment income 1 1 2 1 Miscellaneous 4 1 19 39 Transfers (309) (329) 15,911 2,384 Special item - - (1,326) - Total business-type activities (304) (327) 14,606 2,424 Total primary government 30,497 33,223 32,897 36,362 Change in Net Position Governmental activities 4,243 (150) (15,408) (1,062) Business-type activities 1,041 55,618 70,550 609 Total primary government 5,284$ 55,468$ 55,142$ (453)$ Source: Statement of Activities (Amounts expressed in thousands) TOWN OF MARANA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual basis of accounting) 156AMENDED Regular Council Meeting 01/19/2021 Page 316 of 402 Schedule 2 2015 2016 2017 2018 2019 2020 28,059$ 35,442$ 37,500$ 41,689$ 41,680$ 40,705$ 442 482 509 553 834 1,161 401 447 488 507 513 549 8,820 9,039 10,619 11,506 12,013 13,098 149 173 238 663 1,954 1,965 813 676 744 885 1,163 1,001 116 - - - - - (404) (2,177) (2,878) 1,875 (688) (136) 38,396 44,082 47,220 57,678 57,469 58,343 9 16 43 187 77 57 19 19 54 30 21 364 404 2,177 2,878 (1,875) 688 136 - - - - - - 432 2,212 2,975 (1,658) 786 557 38,828 46,294 50,195 56,020 58,255 58,900 2,529 8,049 15,939 23,302 10,776 13,658 895 3,036 4,173 3,244 4,619 10,388 3,424$ 11,085$ 20,112$ 26,546$ 15,395$ 24,046$ 157AMENDED Regular Council Meeting 01/19/2021 Page 317 of 402 Schedule 3 2011 2012 2013 2014 2015 General Fund Nonspendable 229$ 293$ 2,803$ 2,540$ 2,282$ Unassigned 16,149 18,004 18,115 21,123 22,309 Total general fund 16,378 18,297 20,918 23,663 24,591 All other governmental funds Nonspendable -$ -$-$ 33$ -$ Restricted 28,137 29,821 47,616 40,774 40,771 Unassigned - (816) (444)(472) (863) Total all other governmental funds 28,137$ 29,005$ 47,172$ 40,335$ 39,908$ Total fund balance of governmental funds 44,515$ 47,302$ 68,090$ 63,998$ 64,499$ 2016 2017 2018 2019 2020 General Fund Nonspendable 2,418$ 2,367$ 4,853$ 4,513$ 4,103$ Unassigned 20,425 22,640 24,735 32,043 42,008 Total general fund 22,843 25,007 29,588 36,556 46,111 All other governmental funds Nonspendable 3$ 1$ 261$ 1$ 4$ Restricted 48,486 49,960 44,989 42,068 31,001 Committed - - - - 14,862 Unassigned (525) (1,908)(2,405) (562) (873) Total all other governmental funds 47,964$ 48,053$ 42,845$ 41,507$ 44,994$ Total fund balance of governmental funds 70,807$ 73,060$ 72,433$ 78,063$ 91,105$ 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) 158AMENDED Regular Council Meeting 01/19/2021 Page 318 of 402 This page intentionally left blank 159AMENDED Regular Council Meeting 01/19/2021 Page 319 of 402 Schedule 4 2011 2012 2013 2014 Revenues Sales taxes 22,948$ 24,539$ 24,768$ 26,226$ Property taxes 584 506 497 424 Intergovernmental revenues 17,707 14,960 18,000 12,732 Licenses, fees and permits 4,361 4,906 8,586 6,549 Fines, forfeitures and penalties 730 752 871 831 Charges for services 430 456 379 509 Lease Income 647 92 105 99 Special assessments 2,239 2,302 2,337 2,176 Contributions 3,690 537 589 1,098 Investment earnings 105 97 152 171 Miscellaneous 614 636 804 927 Total revenues 54,055 49,783 57,088 51,742 Expenditures General government 9,661 8,481 7,860 8,953 Public safety 9,334 10,590 12,067 11,952 Highways and streets 3,043 3,657 4,026 4,214 Health and welfare 59 - - - Economic and community development 4,520 4,259 4,479 4,508 Culture and recreation 2,552 2,604 2,859 3,195 Capital outlay 13,800 7,040 3,700 4,453 Debt service Principal 3,490 6,059 4,177 10,338 Interest 4,832 4,635 4,408 4,522 Other charges 109 - 521 97 Total expenditures 51,400 47,325 44,097 52,232 Excess of revenues over (under) expenditures 2,655 2,458 12,991 (490) 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) 160AMENDED Regular Council Meeting 01/19/2021 Page 320 of 402 Schedule 4 2015 2016 2017 2018 2019 2020 28,058$ 35,442$ 37,500$ 41,689$ 41,680$ 40,705$ 447 489 521 572 834 1,161 14,927 20,537 43,261 30,919 20,040 22,967 7,048 6,243 7,078 8,617 10,034 9,092 889 750 728 750 637 591 692 500 563 684 718 535 96 90 113 136 148 157 2,050 2,129 2,340 989 2,869 2,091 583 1,216 214 87 49 65 149 173 238 663 1,954 1,965 853 376 460 512 757 667 55,792 67,945 93,016 85,618 79,720 79,996 9,652 12,017 13,347 12,949 14,021 14,927 13,886 14,068 14,477 14,774 15,502 18,352 5,441 5,796 6,037 4,893 5,031 6,821 -- 365 229 290 284 4,351 4,146 4,642 4,452 4,744 4,605 3,598 3,710 4,266 4,903 4,613 4,207 9,885 11,840 34,275 40,960 24,478 11,094 3,412 3,992 5,083 2,260 5,463 6,563 4,491 4,212 3,882 2,745 3,105 2,984 --1,023 - 314 385 54,716 59,781 87,397 88,165 77,561 70,222 1,076 8,164 5,619 (2,547) 2,159 9,774 161AMENDED Regular Council Meeting 01/19/2021 Page 321 of 402 Schedule 4 2011 2012 2013 2014 Other financing sources (uses) Transfers in 5,297 5,998 19,700 14,155 Transfers out (4,988) (5,669) (35,611) (16,540) Proceeds from sale of capital assets - - 57 - Capitalized interest - - - - Issuance of debt 1,000 - 34,780 6,493 Premium on bonds issued - - 3,031 - Payments to refunded bond escrow agent - - (14,160) (14,160) Total other financing sources (uses) 1,309 329 7,797 (10,052) Net change in fund balance 3,767$ 13,320$ 7,307$ (8,976)$ Debt service as a percentage of noncapital expenditures 28.4%35.4%21.2%30.9% 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) 162AMENDED Regular Council Meeting 01/19/2021 Page 322 of 402 Schedule 4 2015 2016 2017 2018 2019 2020 6,380 6,498 7,680 12,607 6,082 11,401 (6,955) (8,675) (10,558) (10,732) (6,770) (11,532) - 321 45 46 226 135 - - 178 - - - - - 42,065 - 3,845 3,195 - - 4,089 - 88 69 - - (46,865) - - - (575) (1,856) (3,366) 1,921 3,471 3,268 (575)$ 6,308$ 2,253$ (626)$ 5,630$ 13,042$ 15.8%16.8%11.6%6.9%20.2%15.7% 163AMENDED Regular Council Meeting 01/19/2021 Page 323 of 402 Schedule 5 Fiscal Year Sales Tax Highway User Revenue taxes Total 2020 40,705$ 3,826$ 44,531$ 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 Source: Statement of Revenues, Expenditures and Changes in Fund Balances (Amounts expressed in thousands) TOWN OF MARANA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS (Accrual basis of accounting) 164AMENDED Regular Council Meeting 01/19/2021 Page 324 of 402 Schedule 6TOWN 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 Net Assessed Value Total Direct Tax Rate Limited Full Cash Value Ratio of Net Assessed to Full Cash Value 2021 2020 438,390$ 224,390$ 42,530$ 620,250 8.4000 5,702,339 10.9% 2020 2019 399,814 222,348$ 42,749 579,413 8.7000 5,319,890 10.9% 2019 2018 362,265 214,295 41,518 535,042 5.8400 4,898,582 10.9% 2018 2017 333,217 217,618 45,746 505,089 3.7000 4,641,025 10.9% 2017 2016 310,243 210,060 46,818 473,485 3.7000 4,360,394 10.9% 2016 2015 238,994 251,902 45,889 445,007 3.7000 4,036,488 11.0% 2015 2014 259,179 210,256 43,910 425,525 3.7000 3,787,907 11.2% 2014 2013 239,380 197,401 40,974 395,807 3.7000 3,499,549 11.3% 2013 2012 247,654 216,410 34,642 429,422 3.7000 3,676,365 11.7% 2012 2011 254,719 221,737 30,432 446,024 3.7000 3,784,297 11.8% Source: Pima County Assessor's Office Abstract of the Assessment Roll 165AMENDED Regular Council Meeting 01/19/2021 Page 325 of 402 Schedule 7 Fiscal Year Tax Year Pima County (General Fund) Road Tax County Library District Debt Service Flood Control District State Education Equalization Assistance Tax 2020/21 2020 3.9220 - 0.5353 0.5200 0.3335 0.4426 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 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 2020/21 2020 0.1400 5.7594 22.7137 - 2.8000 2.8000 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 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 166AMENDED Regular Council Meeting 01/19/2021 Page 326 of 402 Schedule 7 Flowing Wells School District Community College District Northwest Fire District Fire District Assistance 6.6839 1.3359 2.9995 0.0416 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 Vanderbilt Farms Community Facilities District Saguaro Springs Community Facilities District Total Direct Rates Total Direct & Overlapping Rates - 2.8000 8.4000 31.1137 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 167AMENDED Regular Council Meeting 01/19/2021 Page 327 of 402 Schedule 8 Taxpayer Full Cash Value Rank Percentage of Total Taxable Assessed Value Full Cash Value Rank Percentage of Total Taxable Assessed Value UNISOURCE ENERGY CORPORATION 11,367,234 1 25.7%- -- HSL COTTONWOOD RC HOTEL LLC 6,552,265 2 14.8%- -- TUCSON PREMIUM OUTLETS LLC 6,416,083 3 14.5%- -- FRYS FOOD STORE OF ARIZONA 4,100,905 4 9.3%- -- TRICO ELECTRIC COOP INC 3,156,191 5 7.1%- -- KREBS FLSMIDTH INC 2,686,086 6 6.1%- -- SOUTHWEST GAS CORPORATION 2,499,337 7 5.7%- -- VERIZON WIRELESS 2,417,173 8 5.5%- -- WALMART STORES INCORPORATED 2,593,201 9 5.9%- -- MARANA MARKETPLACE PARTNERS LLC 2,357,889 10 5.3%- -- FIDELITY NATIONAL TITLE TR 30212 3,350 1 24.7% SMITH FOOD & DRUG CENTERS 1,907 2 14.1% PULTE HOME CORPORATION 1,501 3 11.1% GLADDEN 25 LLC 1,388 4 10.2% FEDERAL NATIONAL MORTGAGE ASSN 1,262 5 9.3% WEINGARTEN NEWQUIST LLC 1,113 6 8.2% FREEDBER BARRY & FREEDBRG BELLA 871 7 6.4% WALGREEN ARIZONA DRUG CO 795 8 5.9% FIDELITY NATIONAL TITLE TR 60360 765 9 5.6% OS REALITY LLC 595 10 4.4% Totals 44,146,364$ 13,547$ Notes: 1) The Town of Marana does not impose a property tax. Source: Pima County Assessor's Office - IS Dept (Information System's Coordinator) 20112020 TOWN OF MARANA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO (Amounts expressed in thousands) 168AMENDED Regular Council Meeting 01/19/2021 Page 328 of 402 Schedule 9TOWN 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 2020 1,162$ 1,157 99.57%1,160 99.83% 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% 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 169AMENDED Regular Council Meeting 01/19/2021 Page 329 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use 242-C1 215-01-003P Tangerine/I-10, LLC $681,092.81 $522,253.96 $12,587.00 1,015,268 Commercial 242-A 215-01-003R Tangerine/I-10, LLC 546,102.01 418,744.60 8,440.00 814,343 Commercial 242-B3-1 215-01-003S INTERNATIONAL CENTER TUCSON LLC & SECUNDUS TUCSON LLC 52,594.14 40,328.57 3,545,400.00 78,565 Commercial 242-B1/2 215-01-003T Tangerine/I-10, LLC 159,827.16 122,553.59 2,954.00 238,323 Commercial 242-B4/5 215-01-003U Tangerine/I-10, LLC 371,957.14 285,212.36 6,874.00 554,526 Commercial 242-B1/2/4/5 215-01-003V Tangerine/I-10, LLC 744,205.60 570,648.10 13,759.00 1,109,796 Commercial 242-B3-2 215-01-003W INTERNATIONAL CENTER TUCSON LLC & SECUNDUS TUCSON LLC 49,379.55 37,863.66 296,239.00 73,738 Commercial 242-D1 216-12-0250 Tangerine/I-10, LLC 49,671.79 38,087.74 29,546.00 73,864 Commercial 242-D2 216-12-0260 Tangerine/I-10, LLC 258,002.71 197,833.45 153,923.00 384,808 Commercial 242-D3 216-12-0270 Tangerine/I-10, LLC 365,236.64 280,059.16 217,717.00 544,292 Commercial 242-D4 216-12-0300 Tangerine/I-10, LLC 17,531.38 13,442.86 10,409.00 26,023 Commercial 242-C2 216-12-0330 Tangerine/I-10, LLC 118,628.37 90,962.84 10,000.00 176,824 Commercial 237 217-53-040A TOWN OF MARANA 71,959.10 55,177.40 504,000.00 1,019,781 Park 238/239-1 217-53-8080 CIRCLE K STORES INC 28,235.83 21,650.91 405,470.00 79,504 Commercial 238/239-2 217-53-8090 GLADDEN 25 LLC 20,407.15 15,647.96 100,585.00 57,477 Residential and Commercial 238/239-3 217-53-8100 GLADDEN 25 LLC 21,784.14 16,703.82 107,366.00 61,352 Residential and Commercial 238/239-4 217-53-8110 GLADDEN 25 LLC 20,979.61 16,086.92 103,336.00 59,049 Residential and Commercial 238/239-5 217-53-8120 GLADDEN 25 LLC 18,999.25 14,568.40 93,630.00 53,503 Residential and Commercial 238/239-6 217-53-8130 GLADDEN 25 LLC 20,144.14 15,446.29 99,255.00 56,717 Residential and Commercial 238/239-7 217-53-8140 GLADDEN 25 LLC 15,456.22 11,851.65 76,167.00 43,524 Residential and Commercial 238/239-8 217-53-8150 GLADDEN 25 LLC 35,461.12 27,191.17 174,757.00 99,861 Residential and Commercial 238/239-9 217-53-8160 GLADDEN 25 LLC 32,830.94 25,174.38 161,761.00 92,435 Residential and Commercial 238/239-10 217-53-8170 GLADDEN 25 LLC 30,974.33 23,750.76 152,591.00 87,195 Residential and Commercial 230-2 217-54-0120 Gladden Phase II, LLC 389,043.77 298,314.19 17,744.00 1,431,174 Residential and Commercial 230-3 217-54-0130 Gladden Phase II, LLC 330,322.98 253,287.78 15,066.00 1,215,324 Residential and Commercial Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 170AMENDED Regular Council Meeting 01/19/2021 Page 330 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 230-4 217-54-0140 Northwest Medical Center 684,379.91 524,774.47 31,212.00 2,517,626 Hospital 230-5 217-54-0150 Gladden Phase II, LLC 459,886.66 352,635.69 137,732.00 1,930,109 Residential and Commercial 230-6 217-54-0160 Gladden Phase II, LLC 375,574.12 287,985.82 11,961.00 964,854 Residential and Commercial 230-7 217-54-0180 Gladden Phase II, LLC 429,227.55 329,126.63 14,742.00 1,189,188 Residential and Commercial 230-8 217-54-0190 Gladden Phase II, LLC 358,566.94 274,944.91 16,351.00 1,318,997 Residential and Commercial 230-11 217-54-0220 Gladden Phase II, LLC 708,991.95 543,646.69 21,902.00 1,766,794 Residential and Commercial 446 217-54-026A Gladden Phase II, LLC 268,326.10 205,749.29 8,375.00 675,766 Residential and Commercial 230-16 217-54-0270 Gladden Phase II, LLC 536,534.45 411,408.30 17,809.00 1,436,609 Residential and Commercial 443 217-54-028B Northwest Fire District 32,681.52 25,059.80 721,410.00 120,235 Residential and Commercial 319 217-54-0290 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 320 217-54-0300 Lennar Homes 3,770.07 2,890.85 226,976.00 - Residential 321 217-54-0310 Lennar Homes 3,770.07 2,890.85 275,326.00 - Residential 322 217-54-0320 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 323 217-54-0330 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 324 217-54-0340 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 325 217-54-0350 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 326 217-54-0360 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 327 217-54-0370 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 328 217-54-0380 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 329 217-54-0390 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 330 217-54-0400 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 331 217-54-0410 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 332 217-54-0420 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 345 217-54-0550 Richmond American Homes 3,770.07 2,890.85 31,046.00 - Residential 347 217-54-0570 Richmond American Homes 3,770.07 2,890.85 31,046.00 - Residential 369 217-54-0790 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 373 217-54-0830 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 374 217-54-0840 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 375 217-54-0850 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 376 217-54-0860 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 377 217-54-0870 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 378 217-54-0880 Lennar Homes 3,770.07 2,890.85 31,046.00 - Residential 393 217-54-1030 Richmond American Homes 3,770.07 2,890.85 31,046.00 - Residential 394 217-54-1040 Richmond American Homes 3,770.07 2,890.85 31,046.00 - Residential 395 217-54-1050 Richmond American Homes 3,770.07 2,890.85 31,046.00 - Residential 396 217-54-1060 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 397 217-54-1070 Lennar Homes 3,770.08 2,890.85 31,046.00 - Residential 398 217-54-1080 Lennar Homes 3,770.08 2,890.85 31,046.00 - Residential 399 217-54-1090 Lennar Homes 3,770.08 2,890.85 31,046.00 - Residential 400 217-54-1100 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 401 217-54-1110 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 171AMENDED Regular Council Meeting 01/19/2021 Page 331 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 402 217-54-1120 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 403 217-54-1130 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 404 217-54-1140 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 405 217-54-1150 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 409 217-54-1190 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 410 217-54-1200 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 412 217-54-1220 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 415 217-54-1250 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 420 217-54-1300 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 425 217-54-1350 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 426 217-54-1360 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 434 217-54-2260 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 436 217-54-2280 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 437 217-54-2290 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 438 217-54-2300 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 439 217-54-2310 Richmond American Homes 3,770.08 2,890.85 252,675.00 - Residential 440 217-54-2320 Richmond American Homes 3,770.08 2,890.85 240,014.00 - Residential 441 217-54-2330 Richmond American Homes 3,770.08 2,890.85 31,046.00 - Residential 553 217-54-2380 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 554 217-54-2390 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 555 217-54-2400 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 556 217-54-2410 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 557 217-54-2420 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 558 217-54-2430 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 559 217-54-2440 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 560 217-54-2450 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 561 217-54-2460 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 562 217-54-2470 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 563 217-54-2480 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 564 217-54-2490 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 565 217-54-2500 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 566 217-54-2510 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 567 217-54-2520 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 568 217-54-2530 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 569 217-54-2540 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 570 217-54-2550 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 571 217-54-2560 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 572 217-54-2570 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 573 217-54-2580 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 574 217-54-2590 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 575 217-54-2600 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 576 217-54-2610 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 577 217-54-2620 Gladden Phase II, LLC 3,193.65 2,448.85 8,001.00 - Residential 578 217-54-2630 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 579 217-54-2640 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 580 217-54-2650 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 581 217-54-2660 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 582 217-54-2670 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 583 217-54-2680 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 584 217-54-2690 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 585 217-54-2700 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 586 217-54-2710 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 587 217-54-2720 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 588 217-54-2730 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 589 217-54-2740 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 590 217-54-2750 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 172AMENDED Regular Council Meeting 01/19/2021 Page 332 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 591 217-54-2760 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 592 217-54-2770 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 593 217-54-2780 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 594 217-54-2790 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 595 217-54-2800 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 596 217-54-2810 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 597 217-54-2820 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 598 217-54-2830 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 599 217-54-2840 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 600 217-54-2850 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 601 217-54-2860 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 602 217-54-2870 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 603 217-54-2880 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 604 217-54-2890 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 605 217-54-2900 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 606 217-54-2910 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 607 217-54-2920 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 608 217-54-2930 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 609 217-54-2940 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 610 217-54-2950 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 611 217-54-2960 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 612 217-54-2970 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 613 217-54-2980 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 614 217-54-2990 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 615 217-54-3000 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 616 217-54-3010 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 617 217-54-3020 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 618 217-54-3030 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 619 217-54-3040 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 620 217-54-3050 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 621 217-54-3060 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 622 217-54-3070 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 623 217-54-3080 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 624 217-54-3090 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 625 217-54-3100 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 626 217-54-3110 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 627 217-54-3120 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 628 217-54-3130 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 629 217-54-3140 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 630 217-54-3150 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 631 217-54-3160 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 632 217-54-3170 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 633 217-54-3180 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 634 217-54-3190 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 635 217-54-3200 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 636 217-54-3210 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 637 217-54-3220 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 638 217-54-3230 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 639 217-54-3240 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 640 217-54-3250 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 641 217-54-3260 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 642 217-54-3270 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 643 217-54-3280 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 644 217-54-3290 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 645 217-54-3300 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 646 217-54-3310 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 647 217-54-3320 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 648 217-54-3330 Gladden Phase II, LLC 3,193.66 2,448.86 8,001.00 - Residential 826 217-54-342A Gladden Phase II, LLC 205,307.14 157,427.10 7,522.00 606,889 Residential and Commercial 825 217-54-342B Gladden Phase II, LLC 190,574.93 146,130.61 8,105.00 653,774 Residential and Commercial 442 217-54-3440 Gladden Phase II, LLC 342,327.13 262,492.41 578,000.00 1,252,529 Residential and Commercial 448 217-54-3450 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 449 217-54-3460 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 173AMENDED Regular Council Meeting 01/19/2021 Page 333 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 450 217-54-3470 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 451 217-54-3480 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 452 217-54-3490 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 453 217-54-3500 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 454 217-54-3510 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 455 217-54-3520 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 456 217-54-3530 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 457 217-54-3540 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 458 217-54-3550 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 459 217-54-3560 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 460 217-54-3570 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 461 217-54-3580 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 462 217-54-3590 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 463 217-54-3600 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 464 217-54-3610 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 465 217-54-3620 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 466 217-54-3630 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 467 217-54-3640 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 468 217-54-3650 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 469 217-54-3660 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 470 217-54-3670 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 471 217-54-3680 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 472 217-54-3690 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 473 217-54-3700 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 474 217-54-3710 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 475 217-54-3720 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 476 217-54-3730 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 477 217-54-3740 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 478 217-54-3750 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 479 217-54-3760 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 480 217-54-3770 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 481 217-54-3780 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 482 217-54-3790 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 483 217-54-3800 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 484 217-54-3810 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 485 217-54-3820 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 486 217-54-3830 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 174AMENDED Regular Council Meeting 01/19/2021 Page 334 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 487 217-54-3840 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 488 217-54-3850 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 489 217-54-3860 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 490 217-54-3870 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 491 217-54-3880 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 492 217-54-3890 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 493 217-54-3900 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 494 217-54-3910 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 495 217-54-3920 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 496 217-54-3930 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 497 217-54-3940 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 498 217-54-3950 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 499 217-54-3960 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 500 217-54-3970 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 501 217-54-3980 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 502 217-54-3990 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 503 217-54-4000 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 504 217-54-4010 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 505 217-54-4020 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 506 217-54-4030 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 507 217-54-4040 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 510 217-54-4070 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 516 217-54-4130 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 517 217-54-4140 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 518 217-54-4150 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 519 217-54-4160 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 520 217-54-4170 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 521 217-54-4180 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 522 217-54-4190 Richmond American Homes 3,029.41 2,322.91 31,046.00 - Residential 531 217-54-4280 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 532 217-54-4290 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 533 217-54-4300 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 534 217-54-4310 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 537 217-54-4340 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 538 217-54-4350 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 539 217-54-4360 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 540 217-54-4370 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 175AMENDED Regular Council Meeting 01/19/2021 Page 335 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 541 217-54-4380 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 542 217-54-4390 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 543 217-54-4400 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 544 217-54-4410 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 545 217-54-4420 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 546 217-54-4430 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 547 217-54-4440 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 548 217-54-4450 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 549 217-54-4460 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 550 217-54-4470 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 551 217-54-4480 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 552 217-54-4490 Richmond American Homes 3,029.42 2,322.92 31,046.00 - Residential 231 217-55-012A WESTCOR MARANA LLC 1,586,588.33 1,216,577.27 32,195.00 2,597,047 Commercial 218 217-57-3660 NP Investments LLC 18,332.46 14,057.11 265,674.00 52,093 Gladden Farms Commercial Center - Bank 219 217-57-3670 Weingarten Realty 12,423.76 9,526.39 67,076.00 35,303 Gladden Farms Commercial Center - Fast Food Restaurant 220 217-57-3680 Weingarten Realty 14,501.49 11,119.57 78,293.00 41,207 Gladden Farms Commercial Center - Fast Food Restaurant 221 217-57-3690 Weingarten Realty 11,477.10 8,800.50 61,965.00 32,613 Gladden Farms Commercial Center 222 217-57-3700 Weingarten Realty 27,082.56 20,766.59 146,218.00 76,957 Gladden Farms Commercial Center 224 217-57-3720 Weingarten Realty 41,637.17 31,926.89 189,304.00 118,315 Gladden Farms Commercial Center - Grocery 225 217-57-3730 Weingarten Realty 9,539.79 7,315.00 43,373.00 27,108 Gladden Farms Commercial Center 226 217-57-3740 Weingarten Realty 18,357.45 14,076.28 99,112.00 52,164 Gladden Farms Commercial Center 227 217-57-3750 Weingarten Realty 12,894.96 9,887.71 69,620.00 36,642 Gladden Farms Commercial Center 649 217-58-0010 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 650 217-58-0020 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 651 217-58-0030 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 652 217-58-0040 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 653 217-58-0050 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 654 217-58-0060 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 176AMENDED Regular Council Meeting 01/19/2021 Page 336 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 655 217-58-0070 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 656 217-58-0080 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 657 217-58-0090 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 658 217-58-0100 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 659 217-58-0110 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 660 217-58-0120 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 661 217-58-0130 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 662 217-58-0140 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 663 217-58-0150 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 664 217-58-0160 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 665 217-58-0170 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 666 217-58-0180 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 667 217-58-0190 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 668 217-58-0200 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 669 217-58-0210 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 670 217-58-0220 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 671 217-58-0230 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 672 217-58-0240 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 673 217-58-0250 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 674 217-58-0260 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 675 217-58-0270 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 676 217-58-0280 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 677 217-58-0290 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 678 217-58-0300 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 679 217-58-0310 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 680 217-58-0320 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 681 217-58-0330 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 682 217-58-0340 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 683 217-58-0350 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 684 217-58-0360 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 685 217-58-0370 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 686 217-58-0380 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 687 217-58-0390 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 688 217-58-0400 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 689 217-58-0410 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 690 217-58-0420 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 691 217-58-0430 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 692 217-58-0440 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 693 217-58-0450 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 694 217-58-0460 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 695 217-58-0470 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 696 217-58-0480 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 697 217-58-0490 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 698 217-58-0500 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 699 217-58-0510 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 700 217-58-0520 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 701 217-58-0530 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 702 217-58-0540 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 703 217-58-0550 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 704 217-58-0560 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 705 217-58-0570 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 706 217-58-0580 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 707 217-58-0590 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 708 217-58-0600 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 709 217-58-0610 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 710 217-58-0620 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 711 217-58-0630 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 712 217-58-0640 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 713 217-58-0650 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 177AMENDED Regular Council Meeting 01/19/2021 Page 337 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 714 217-58-0660 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 715 217-58-0670 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 716 217-58-0680 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 717 217-58-0690 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 718 217-58-0700 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 719 217-58-0710 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 720 217-58-0720 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 721 217-58-0730 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 722 217-58-0740 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 723 217-58-0750 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 724 217-58-0760 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 725 217-58-0770 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 726 217-58-0780 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 727 217-58-0790 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 728 217-58-0800 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 729 217-58-0810 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 730 217-58-0820 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 731 217-58-0830 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 732 217-58-0840 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 733 217-58-0850 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 734 217-58-0860 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 735 217-58-0870 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 736 217-58-0880 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 737 217-58-0890 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 738 217-58-0900 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 739 217-58-0910 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 740 217-58-0920 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 741 217-58-0930 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 742 217-58-0940 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 743 217-58-0950 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 744 217-58-0960 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 745 217-58-0970 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 746 217-58-0980 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 747 217-58-0990 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 748 217-58-1000 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 749 217-58-1010 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 750 217-58-1020 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 751 217-58-1030 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 752 217-58-1040 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 753 217-58-1050 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 754 217-58-1060 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 755 217-58-1070 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 756 217-58-1080 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 178AMENDED Regular Council Meeting 01/19/2021 Page 338 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 757 217-58-1090 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 758 217-58-1100 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 759 217-58-1110 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 760 217-58-1120 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 761 217-58-1130 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 762 217-58-1140 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 763 217-58-1150 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 764 217-58-1160 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 765 217-58-1170 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 766 217-58-1180 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 767 217-58-1190 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 768 217-58-1200 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 769 217-58-1210 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 770 217-58-1220 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 771 217-58-1230 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 772 217-58-1240 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 773 217-58-1250 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 774 217-58-1260 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 775 217-58-1270 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 776 217-58-1280 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 777 217-58-1290 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 778 217-58-1300 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 779 217-58-1310 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 780 217-58-1320 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 781 217-58-1330 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 782 217-58-1340 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 783 217-58-1350 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 784 217-58-1360 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 785 217-58-1370 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 786 217-58-1380 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 787 217-58-1390 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 788 217-58-1400 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 789 217-58-1410 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 790 217-58-1420 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 791 217-58-1430 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 792 217-58-1440 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 793 217-58-1450 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 179AMENDED Regular Council Meeting 01/19/2021 Page 339 of 402 Schedule 10 District Assessment Number (1) Tax Assessor's Parcel Number Owner Original Assessment Amount (2) Remaining Assessment Amount (3) 2020 Full Cash Value (4) Non-Residential Square Footage (5) Expected Future Use Town of Marana, Arizona Tangerine Farms Road Improvement District All Active Assessments As of 6/30/2020 794 217-58-1460 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 795 217-58-1470 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 796 217-58-1480 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 797 217-58-1490 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 798 217-58-1500 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 799 217-58-1510 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 800 217-58-1520 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 801 217-58-1530 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 802 217-58-1540 MERITAGE HOMES OF ARIZONA 3,281.65 2,516.33 0.00 - Residential 803 217-58-1550 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 804 217-58-1560 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 805 217-58-1570 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 806 217-58-1580 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 807 217-58-1590 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 808 217-58-1600 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 809 217-58-1610 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 810 217-58-1620 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 811 217-58-1630 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 812 217-58-1640 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 813 217-58-1650 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 814 217-58-1660 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 815 217-58-1670 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 816 217-58-1680 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 817 217-58-1690 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 818 217-58-1700 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 819 217-58-1710 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 820 217-58-1720 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 821 217-58-1730 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 822 217-58-1740 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 823 217-58-1750 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential 824 217-58-1760 KB Home Tucson Inc.3,281.65 2,516.33 0.00 - Residential Residential Totals:410 Active Assessments $1,339,253.53 $1,026,923.17 $5,923,251.00 0 Non-Residential Totals:47 Active Assessments $10,796,041.35 $8,278,277.55 $8,947,527.00 26,950,084 Totals:457 Active Assessments $12,135,294.88 $9,305,200.72 $14,870,778.00 26,950,084 (5) (1) During Fiscal Year 2019/20, District Assessment Numbers 649 through 824 were created via apportionment. Due to the timing of the apportionment, the 2020 Full Cash Value information is unavailable from Pima County associated with the newly created parcels that are now in (2) Includes capitalized interest on the Bonds as sold. (3) Amount remaining after billing for the 6/1/2020 assessment installment. (5) The Pima County Assessor does not provide the square footage for most residential properties. (4) As current Full Cash Value data is not available from Pima County for certain parcels that have changed during Fiscal Year 2019/20, prior year Full Cash Value data has been supplemented where applicable. 180AMENDED Regular Council Meeting 01/19/2021 Page 340 of 402 This page intentionally left blank 181AMENDED Regular Council Meeting 01/19/2021 Page 341 of 402 Schedule 11 Industry Group FY 2011 %FY 2012 %FY 2013 % Construction 4,870,797$ 21.23%5,782,644$ 23.57%5,260,345$ 21.33% Manufacturing 123,524 0.54%128,089 0.52%127,214 0.52% Transportation, Communications, & Utilities 2,927,271 12.76%2,985,979 12.17%3,038,071 12.32% Wholesale Trade 194,392 0.85%233,850 0.95%296,077 1.20% Retail Trade 8,667,896 37.77%8,804,206 35.88%9,380,544 38.03% Restaurant & Bars 1,658,180 7.23%1,789,232 7.29%1,819,588 7.38% Fire, Insurance & Real Estate 1,253,481 5.46%1,350,977 5.51%1,234,426 5.00% Hotels & Other Lodging 1,914,004 8.34%1,991,767 8.12%2,140,493 8.68% Services 982,631 4.28%1,026,443 4.18%1,003,377 4.07% All Others 355,642 1.55%445,774 1.82%363,807 1.48% 22,947,818$ 100.00%24,538,961$ 100.00%24,663,942$ 100.00% Industry Group 2016*%2017 %2018 % Construction 6,883,116$ 19.42%7,557,292$ 20.15%9,825,265$ 23.57% Transportation, Communications, & Utilities 3,919,633 11.06%3,809,315 10.16%4,234,220 10.16% Retail Trade 16,305,878 46.01%17,120,561 45.65%17,757,284 42.59% Restaurant & Bars 3,076,737 8.68%3,295,734 8.79%3,616,110 8.67% Fire, Insurance & Real Estate 1,339,496 3.78%1,540,358 4.11%1,661,010 3.98% Hotels & Other Lodging 2,292,705 6.47%2,558,312 6.82%2,827,338 6.78% All Others 1,624,023 4.58%1,618,648 4.32%1,768,256 4.24% 35,441,588$ 100.00%37,500,220$ 100.00%41,689,483$ 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 182AMENDED Regular Council Meeting 01/19/2021 Page 342 of 402 Schedule 11 FY 2014 %2015 % 6,411,509$ 24.45%6,838,195$ 24.37% 97,014 0.37%100,329 0.36% 3,182,854 12.14%3,318,976 11.83% 213,657 0.81%305,012 1.09% 9,593,163 36.58%10,133,523 36.12% 1,865,602 7.11%2,038,788 7.27% 1,256,418 4.79%1,240,196 4.42% 2,064,986 7.87%2,481,304 8.84% 1,031,325 3.93%1,046,669 3.73% 509,351 1.94%555,522 1.98% 26,225,881$ 100.00%28,058,514$ 100.00% 2019 %2020 % 10,817,479$ 25.95%11,599,116 28.50% 3,987,389 9.57%3,835,802 9.42% 16,403,992 39.36%16,210,073 39.82% 3,514,494 8.43%3,146,078 7.73% 1,648,738 3.96%1,436,817 3.53% 2,913,545 6.99%2,566,127 6.30% 2,394,706 5.75%1,910,780 4.69% 41,680,343$ 100.00%40,704,792$ 100.00% 183AMENDED Regular Council Meeting 01/19/2021 Page 343 of 402 Schedule 12 Industry Classification 2010/11 2011/12 2012/13 2013/14 Town Sales Tax 22,947,818$ 24,538,961$ 24,768,104$ 26,225,881$ State-shared Sales Taxes 2,099,083 2,731,863 2,861,622 3,043,102 State-shared Income Taxes 2,601,218 2,950,734 3,571,191 3,896,487 Licenses and permits 2,502,494 2,720,872 4,323,155 3,932,108 Fines and forfeitures and penalties 537,680 558,393 661,341 635,869 TOTAL 30,688,293$ 33,500,823$ 36,185,413$ 37,733,447$ Industry Classification 2015/2016 2016/2017 2017/2018 2018/2019 Town Sales Tax 35,441,585$ 37,500,219$ 41,689,483$ 41,680,343$ State-shared Sales Taxes 3,344,679 3,798,503 4,186,856 4,524,009 State-shared Income Taxes 4,209,300 5,054,592 5,384,669 5,424,305 Licenses and permits 4,468,910 4,848,237 5,573,620 5,774,930 Fines and forfeitures and penalties 579,369 574,884 612,638 527,447 TOTAL 48,043,843$ 51,776,435$ 57,447,266$ 57,931,034$ Source: Statement of Revenues, Expenditures and changes in Fund Balances TOWN OF MARANA EXCISE TAX COLLECTIONS LAST TEN FISCAL YEARS 184AMENDED Regular Council Meeting 01/19/2021 Page 344 of 402 Schedule 12 2014/2015 28,058,823$ 3,195,042 4,232,245 4,813,378 664,955 40,964,443$ Budgeted 2019/2020 2020/2021 40,704,792$ 31,472,804$ 4,872,825 4,444,645 6,078,686 7,007,072 6,021,017 4,453,112 515,514 408,500 58,192,834$ 47,786,133$ 185AMENDED Regular Council Meeting 01/19/2021 Page 345 of 402 Schedule 13TOWN OF MARANA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (Amounts expressed in thousands, except per capita amount) Fiscal Year Revenue Bonds (1) General Obligation Bonds (2) Special Assessment Bonds (3) Revenue Bonds Loans Payable Total Primary Government Percentage of Personal Income (4)Per Capita 2020 53,258$ 15,100$ 9,552$ 20,687$ 9,561$ 108,159 216.5%2,193 2019 57,301 12,242 12,126 20,891 3,504 106,064 220.1%2,256 2018 60,842 8,551 14,200 21,090 3,202 107,885 276.2%2,409 2017 63,254 8,794 14,245 21,248 3,421 110,962 292.6%2,552 2016 66,715 7,835 15,927 1,214 3,634 95,325 258.9%2,307 2015 69,299 8,085 17,246 1,343 3,841 99,814 279.2%2,475 2014 71,659 8,325 18,488 1,343 4,042 103,857 274.8%2,712 2013 81,720 8,550 19,926 - 4,265 114,461 315.0%3,114 2012 60,699 8,765 21,288 - 4,480 95,232 272.5%2,656 2011 65,384 8,965 22,492 - 4,586 101,427 301.9%2,888 Notes: (1) Presented net of original issuance discounts and premiums (2) Bonds issued for Gladden Farms Facilities District, Gladden Farms Facilities District II, 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 Business-Type Activities 186AMENDED Regular Council Meeting 01/19/2021 Page 346 of 402 Schedule 14 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 2020 15,100$ 872$ 14,228$ 0.25%28.8% 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 0.24%22.6% 2012 8,765 240 8,525 0.23%23.8% 2011 8,965 389 8,576 0.23%24.4% 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. Cash and investments in Debt Service Funds are restricted as to usage. These assets are restricted for payment of interest and trustee fees, retirement of principal, and to finance various capital projects. (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), Gladden Farms Community Facilities District II (formed in fiscal year 2007), and 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) 187AMENDED Regular Council Meeting 01/19/2021 Page 347 of 402 Schedule 15 Governmental Unit Debt Outstanding (1) Estimated Percentage Applicable (2) Estimated Share of Overlapping Debt Pima County *181,428$ 6.79%12,311$ Pima County Community College District 2,952 6.79%200 Northwest Fire District 36,030 48.79%17,577 Flowing Wells Unified School District No. 8 22,835 100.00%22,835 Marana Unified School District No. 6 162,372 64.79%105,207 Total overlapping debt 158,131 Gladden Farms Community Facilities District 8,014 100.00%8,014 Saguaro Springs Community Facilities District 5,823 100.00%5,823 Gladden Farms Phase II Community Facilities District 1,263 100.00%1,263 Tangerine Farms Road Improvement District 9,552 100.00%9,552 Town of Marana 83,506 100.00%83,506 Total direct debt 108,158$ Total direct and overlapping debt 266,289$ Notes: (1) Presented net of original issuance discounts and premiums (2) 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. * Excludes improvement districts Sources: The various entities TOWN OF MARANA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT AS OF JUNE 30, 2020 (Amounts expressed in thousands) 188AMENDED Regular Council Meeting 01/19/2021 Page 348 of 402 Schedule 16 Legal Debt Margin Calculation for Fiscal Year 2020 Limited Assessed Value 623,051,391$ Debt Limit:- 6% of assessed value 37,383,083 20% of assessed value 124,610,278 Total debt limit:161,993,362 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 161,993,362$ 2011 2012 2013 2014 2015 27,274,051$ 25,992,985$ 24,745,839$ 28,630,929$ 29,446,070$ 90,913,503 86,643,283 82,486,130 95,436,430 98,153,568 - - - - - 118,187,553$ 112,636,268$ 107,231,969$ 124,067,359$ 127,599,639$ 0%0%0%0%0% 2016 2017 2018 2019 2020 31,218,157$ 32,138,944$ 34,553,958$ 34,749,542$ 37,383,083$ 104,060,525 107,129,981 115,179,860 115,831,808.20 124,610,278.20 - - - - - - - 135,278,682$ 139,268,925$ 149,733,818$ 150,581,351$ 161,993,362$ 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, 2020 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 189AMENDED Regular Council Meeting 01/19/2021 Page 349 of 402 Schedule 17 Fiscal Year Property Tax Collections Coverage Principal Interest 2020 667$ 265$ 282$ 121.9% 2019 479 210 271 99.6% 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% Fiscal Year Property Tax Collections Coverage Principal Interest 2020 364$ 100$ 161$ 139.5% 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 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* 190AMENDED Regular Council Meeting 01/19/2021 Page 350 of 402 Schedule 17TOWN 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 2020 2,091$ 2,574$ 228$ 74.6% 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% Notes: * Bonds issued for Gladden Farms Community Facilities District and Gladden Farms II Community Facilities District, component units 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 191AMENDED Regular Council Meeting 01/19/2021 Page 351 of 402 Schedule 18 Fiscal Year Population Personal Income* Per Capita Personal Income Median Age School Enrollment Unemployment Rate 2020 49,323 N/A 36,282$ 39.0 12,536 7.7% 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% 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 192AMENDED Regular Council Meeting 01/19/2021 Page 352 of 402 Schedule 19 Employees Percentage of Total City Employment Employees Percentage of Total City Employment Employer Marana Unified School District 1,657 7.2%1,606 24.0% Ascent Aviation 525 2.3% Top Golf 435 1.9% Town of Marana 375 1.6%335 5.0% Wal-Mart 343 1.5%450 6.7% The Ritz-Carlton Dove Mountain 320 1.4% Sargeant Aerospace & Defense 313 1.4%256 3.8% Tucson Hauling & Transfer 300 1.3% Costco 250 1.1%275 4.1% Northwest Fire District 249 1.1% Army Reserve/National Guard 635 9.5% Evergreen Air Center 351 5.2% Marana Main Health Center 320 4.8% Fry's Food & Drug 240 3.6% FLSmidth Krebs 230 3.4% Source: AZCommerce.com, Marana Chamber of Commerce, Pima County, Northwest Fire District 2020 2011 TOWN OF MARANA PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO 193AMENDED Regular Council Meeting 01/19/2021 Page 353 of 402 Schedule 20TOWN 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 2,089,777$ 1 5.2%1,709,768$ 1 7.5% Taxpayer B 1,249,646 2 3.1%1,061,493 2 4.6% Taxpayer C 981,046 3 2.4%588,028 3 2.6% Taxpayer D 791,532 4 2.0%479,215 4 2.1% Taxpayer E 478,288 5 1.2%397,261 7 1.7% Taxpayer F 498,269 6 1.2%474,394 5 2.1% Taxpayer G 643,771 7 1.6%465,141 6 2.0% Taxpayer H 416,471 8 1.0%0.0% Taxpayer I 322,423 9 0.8%251,514 9 1.1% Taxpayer J 251,844 10 0.6%0.0% Taxpayer K 0.0%295,668 8 1.3% Taxpayer L 0.0%232,352 10 1.0% 7,723,066$ 19.1%5,954,832$ 26.0% CONTRACTING Taxpayer A 2,608,562$ 1 6.5%-$ 0.0% Taxpayer B 1,472,079 2 3.7%390,917 4 1.7% Taxpayer C 783,956 3 2.0%487,617 2 2.1% Taxpayer D 703,609 4 1.8%0.0% Taxpayer E 554,652 5 1.4%0.0% Taxpayer F 525,955 6 1.3%352,420 5 1.5% Taxpayer G 316,067 7 0.8%0.0% Taxpayer H 278,300 8 0.7%0.0% Taxpayer I 275,995 9 0.7%0.0% Taxpayer J 231,986 10 0.6%0.0% Taxpayer K 0.00%1,174,641 1 5.1% Taxpayer L 0.00%392,508 3 1.7% Taxpayer M 0.00%217,047 6 0.9% Taxpayer N 0.00%148,405 7 0.6% Taxpayer O 0.00%135,975 8 0.6% Taxpayer P 0.00%127,177 9 0.6% Taxpayer Q 0.00%117,749 10 0.5% 7,751,162$ 19.5%3,544,456$ 15.3% Source: Town of Marana Finance Department, Arizona Department of Revenue Fiscal Year 2020 Fiscal Year 2011 194AMENDED Regular Council Meeting 01/19/2021 Page 354 of 402 Schedule 21 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function General Government 72.5 62.5 62.5 62.5 67.5 70.9 72.9 73.3 73.3 75.3 Public Safety Police Officers 80.0 79.0 80.0 80.0 81.0 83.0 85.0 87.0 87.0 90.0 Civilians 28.8 28.5 26.0 26.0 28.0 28.0 28.0 28.0 31.0 31.0 Building Safety 6.0 6.0 9.0 9.0 13.0 13.0 12.0 12.0 13.0 13.0 Highways and streets 32.0 32.0 36.0 36.0 35.0 35.0 34.0 36.0 39.0 44.0 Culture and recreation 41.5 41.7 33.3 33.3 36.5 38.5 41.8 41.0 40.0 42.0 Community Development 4.0 3.0 - - - - - - - - Economic & Community Development 52.4 53.4 48.5 48.5 40.4 39.4 43.0 46.5 45.5 42.5 Water Utilities 18.1 20.1 19.1 19.1 22.0 23.0 23.0 24.0 25.2 27.6 Wastewater Utilities N/A - 4.0 4.0 4.0 4.0 4.0 5.0 7.0 7.0 Municipal Airport - - 1.0 1.0 1.0 3.0 3.0 3.0 3.0 3.0 Total 321.6 335.3 326.1 319.3 319.3 328.3 346.7 355.8 364.0 375.4 Source: Town of Marana; Annual Budget; Authorized position schedule. TOWN OF MARANA FULL-TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS 195AMENDED Regular Council Meeting 01/19/2021 Page 355 of 402 Schedule 22 Month 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 January 17 22 60 39 42 39 54 82 42 76 February 28 31 52 61 51 58 73 65 43 80 March 38 46 125 42 57 59 76 58 61 88 April 14 41 64 47 55 54 52 60 88 37 May 35 53 46 55 87 37 85 79 71 57 June 22 49 61 59 67 50 63 80 97 111 July 32 70 74 41 59 36 73 79 83 103 August 31 46 60 50 35 47 75 67 62 82 September 22 29 44 29 51 37 40 58 65 73 October 30 56 46 71 62 57 62 63 79 November 22 35 27 88 22 51 75 74 67 December 46 48 43 30 33 56 45 59 50 Calendar Total 337 526 702 612 621 581 773 824 808 707 Fiscal Total 295 425 692 597 668 559 687 794 802 855 Source: Town of Marana Finance Department, Town of Marana Building Services TOWN OF MARANA SINGLE FAMILY RESIDENTIAL PERMITS LAST TEN FISCAL YEARS 196AMENDED Regular Council Meeting 01/19/2021 Page 356 of 402 Schedule 23 Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Public Safety Police: Stations 1 1 1 1 1 1 1 1 1 1 Substations 1 1 1 1 1 1 1 1 1 1 Police Vehicles 113 113 99 118 129 128 129 129 131 133 Highways and Streets Street (miles)300 300 494 494 511 518 520 524 540 570 Culture and Recreation Parks 7 7 8 8 8 9 9 11 13 14 Parks Acreage 84 84 139 139 139 146 146 158 182 182 Trails in Miles - Hiking 28 28 37 37 37 38 39 39 41 41 Trails in Miles - Paved 16 16 16 16 18 19 21 21 21 24 Splash Pads - - - - - - 1 1 2 2 Swimming Pools 1 1 1 1 1 1 1 1 1 1 Tennis Courts 5 5 6 6 6 6 6 6 6 5 Senior/Community Center 1 1 1 1 1 1 1 1 1 1 Water Systems Miles of Water Mains 70 70 128 132 135 138 146 149 157 162 Number of Meters 5,556 5,734 6,002 6,272 6,429 6,745 7,205 7,850 8,533 9,166 Wastewater* Number of Manholes N/A 841 863 863 891 909 978 1,066 1,235 1313 Sewer Mains (miles)N/A 46.4 47.5 47.5 48.33 49.2 53.6 58.5 62.9 66 N/A 0.192 0.198 0.287 0.348 0.360 0.425 0.480 0.520 0.600 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, 2020 197AMENDED Regular Council Meeting 01/19/2021 Page 357 of 402 Town of Marana, Arizona 11555 W. Civic Center Drive Marana, Arizona 85653 Phone: (520)382-1900 Fax: (520)382-1902 www.maranaaz.gov AMENDED Regular Council Meeting 01/19/2021 Page 358 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 359 of 402 ANNUAL EXPENDITURE LIMITATION REPORT Year Ended June 30, 2020 Financial ReportsAMENDED Regular Council Meeting 01/19/2021 Page 360 of 402 Page Independent accountants’ report 1 Annual expenditure limitation report—part I 6 Annual expenditure limitation report—part II 3 Annual expenditure limitation report—reconciliation 4 Notes to annual expenditure limitation report 5 Table of contents Year Ended June 30, 2020 Annual Expenditure Limitation Report Town of Marana AMENDED Regular Council Meeting 01/19/2021 Page 361 of 402 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, 2020, and the related notes to the report. 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. We conducted our examination 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, Arizona December 16, 2020 Tempe • Scottsdale • Casa Grande www.hhcpa.comAMENDED Regular Council Meeting 01/19/2021 Page 362 of 402 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART IYEAR ENDED JUNE 30, 20201.20,652,755$ 2.143,780,795 3.143,780,795$ 4.93,945,687 5.- 6.- 7.- 8.93,945,687 9.- 10.93,945,687 11.49,835,108$ Name and title: Telephone number:Date:Board-authorized expenditures necessitated by a disaster the Governor did not declarePrior-year, voter-approved expenditures to exceed the expenditure limitation for the reporting fiscal year I hereby certify, to the best of my knowledge and belief, that the information contained in this report is accurate and in accordance with the requirements of the uniform expenditure reporting system.Signature of Chief Financial Officer:(520) 382-3493Yiannis Kalaitzidis, Finance DirectorBoard-authorized excess expenditures for the previous fiscal year necessitated by a disaster the Governor did not declare and the voters did not approve SubtotalTotal adjusted amount subject to the expenditure limitationAmount under (in excess of) the expenditure limitationEconomic Estimates Commission expenditure limitationVoter-approved alternative expenditure limitation (Approved November 8, 2016) See Note 1Enter applicable amount from line 1 or line 2Amount subject to the expenditure limitation (total amount from part II, line C)Board-authorized expenditures necessitated by a disaster the Governor declaredSee accompanying notes to report. 3December 16, 2020 AMENDED Regular Council Meeting 01/19/2021Page 363 of 402 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - PART IIYEAR ENDED JUNE 30, 2020InternalGovernmental Enterprise serviceDescription funds funds funds Total A.Amounts reported on the reconciliation, line D70,099,168$ 20,069,078$ 3,777,441$ 93,945,687$ B.Less exclusions claimed:1.Debt proceeds- - - - 2. Debt service requirements- - - - 3.Dividends, interest, and gains on the sale or redemption of investment securities- - - - 4.Trustee or custodian- - - - 5.Grants and aid from the federal government- - - - 6.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 transactions- - - - 9.Amounts accumulated for the purchase of land, and the purchase or constructionof buildings or improvements- - - - 10.Highway user revenues in excess of those received in fiscal year 1979-80- - - - 11.Contracts with other political subdivisions- - - - 12.Refunds, reimbursements, and other recoveries- - - - 13.Voter-approved exclusions not identified above- - - - 14.Prior years carryforward- - - - 15.Qualifying capital improvement expenditures repaid in accordance with A.R.S. §41-1279.07- - - - 16.Total exclusions claimed- - - - C.Amounts subject to the expenditure limitation70,099,168$ 20,069,078$ 3,777,441$ 93,945,687$ See accompanying notes to report. 4AMENDED Regular Council Meeting 01/19/2021Page 364 of 402 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION YEAR ENDED JUNE 30, 2020InternalGovernmental Enterprise service funds funds funds Total A.70,222,105$ 12,278,812$ 3,777,441$ 86,278,358$ B.Subtractions:1.Items not requiring use of current financial resources:a.Depreciation- 4,373,159 -4,373,159 b.Loss on disposal of capital assets- 357,076 -357,076 c.Bad debt expense- ---d.Pension expense- 274,533 -274,533 e.Claims incurred but not reported (IBNR)- ---f.Landfill closure and postclosure care costs and pollution remediation- ---2.- - -- 3.122,937 - -122,937 4.- - -- 5.- - -- 6.122,937 5,004,768 -5,127,705 C.1.Principal payments on long-term debt- 1,036,454 -1,036,454 2.- 11,532,366 -11,532,366 3. Amounts paid in the current year but reported as expenses in previous years:- --a.Claims previously recognized as IBNR- ---b.Landfill closure and postclosure care costs and pollution remediation- ---4.- 226,214 -226,214 5.- 12,795,034 -12,795,034 D.70,099,168$ 20,069,078$ 3,777,441$ 93,945,687$ Present value of net minimum capital lease and installment purchase contract payments recorded as expenditures at the agreements’ inceptionTotal expenditures/expenses/deductions and applicable other financing uses, special items, and extraordinary items reported within the fund financial statementsExpenditures of separate legal entities established under Arizona Revised StatutesDescriptionRequired fees paid to the Arizona Department of RevenueInvoluntary court judgmentsTotal subtractionsAdditions:Amounts reported on part II, line ACapital asset acquisitionsPension contributions paid in the current yearTotal additionsSee accompanying notes to report. 5AMENDED Regular Council Meeting 01/19/2021Page 365 of 402 TOWN OF MARANA, ARIZONA ANNUAL EXPENDITURE LIMITATION REPORT Year Ended June 30, 2020 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 Fund 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 $274,533 for pension expense consists of the change in the net pension liability recognized in the current year in the Enterprise Funds. The addition of $226,214 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 $1,036,454 for principal payments on long-term debt in the Enterprise Funds consists of $852,454 paid on loans payable and $184,000 paid on bonds payable, during the current fiscal year. The addition for the acquisition of capital assets consists of $11,532,366 paid for various capital assets in the Enterprise Funds. The subtraction of $122,937 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. 6 AMENDED Regular Council Meeting 01/19/2021 Page 366 of 402 SINGLE AUDIT REPORTING PACKAGE Year Ended June 30, 2020 Financial ReportsAMENDED Regular Council Meeting 01/19/2021 Page 367 of 402 TOWN OF MARANA, ARIZONA SINGLE AUDIT REPORTING PACKAGE Year Ended June 30, 2020 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 Corrective Action Plan 15 AMENDED Regular Council Meeting 01/19/2021 Page 368 of 402 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 To the Honorable Mayor and City 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, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the Town of Marana, Arizona’s basic financial statements, and have issued our report thereon dated December 16, 2020. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of Marana, Arizona’s internal control over financial reporting (internal control) as a basis for designing 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 the Town of Marana, Arizona’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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 and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings as item 2020- 001 that we consider to be a material weakness. Tempe • Scottsdale • Casa Grande www.hhcpa.comAMENDED Regular Council Meeting 01/19/2021 Page 369 of 402 Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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 financial statements. 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 non-compliance or other matters that are required to be reported under Government Auditing Standards. Town of Marana, Arizona’s Response to Finding Town of Marana, Arizona’s response to the finding identified in our audit is described in the accompanying Corrective Action Plan. Town of Marana, Arizona’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. 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, 2020 AMENDED Regular Council Meeting 01/19/2021 Page 370 of 402 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, 2020. 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.comAMENDED Regular Council Meeting 01/19/2021 Page 371 of 402 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, 2020. 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. AMENDED Regular Council Meeting 01/19/2021 Page 372 of 402 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, 2020, 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, 2020, 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, 2020 AMENDED Regular Council Meeting 01/19/2021 Page 373 of 402 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 2019-2020 14.218 CT.CD.20*215 44,728$ Community Development Block Grant 2018-2019 14.218 CT.CD.19*253 5,667 Total Community Development Block Entitlement Grant Cluster 50,395 Total U.S. Department of Housing and Urban Development 50,395 U.S. Department of Justice Direct Grant Bulletproof Vest Partnership Program 16.607 JAG-06-135 10,612 Law Enforcement Assistance_Narcotics and Dangerous Drugs_Laboratory Analysis 16.001 Resolution 2018-076 MOU 7,843 Coronavirus Emergency Supplemental Funding Program 16.034 ACESF-21-49 11,570 Passed through City of Tucson Edward Byrne Memorial Justice Assistance Grant Program 16.738 DC-20-013 83,701 Passed through Pima County Equitable Sharing Program 16.922 DC-20-013 1,000,000 * Total U.S. Department of Justice 1,113,726 Executive Office of the President, Office of National Drug Control Policy Passed through Pima County - High Intensity Drug Trafficking Program 95.001 HT-20-2930 34,492 High Intensity Drug Trafficking Program 95.001 HT-19-2915 87,640 High Intensity Drug Trafficking Program 95.001 HT-18-2807 19,620 Total Executive Office of the President, Office of National Drug Control Policy 141,752 U.S. Department of Transportation Federal Aviation Administration Direct Grant Airport Improvement Program 20.106 3-04-0058-022-2018 1,675,042 Airport Improvement Program 20.106 3-04-0058-023-2020 17,870 1,692,912 Passed through Governor's Office of Highway Safety- Highway Safety Cluster Selective Traffic Enforcement (Step/Speed)20.616 2018-PTS-033 7,268 Selective Traffic Enforcement (Step/Speed)20.616 2019-PTS-025 13,043 DUI/Impaired Driving Enforcement 20.616 2019-II-003 36,611 Total Highway Safety Cluster 56,922 Passed through Arizona State Parks and Trails Highway Planning and Construction Cluster Recreational Trails Program 20.219 471617 1,418 Total Highway Planning and Construction Cluster 1,418 Total U.S. Department of Transportation 1,751,252 U.S. Department of Agriculture Passed through Arizona State Parks and Trails Cooperative Forestry Assistance 10.664 TREE-17-105 1,870 Pass-Through Grantor / Program Title Federal Grantor / TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2020 See accompanying notes to the schedule of expenditures of federal awards. 7AMENDED Regular Council Meeting 01/19/2021 Page 374 of 402 CFDA Grantor's Number Number Expenditures U.S. Department of Homeland Security Passed through Arizona Department of Emergency and Military Affairs Homeland Security Grant Program - Operation Stonegarden 97.067 180422-01 103,945 Homeland Security Grant Program - Operation Stonegarden 97.067 180421-02 53,173 Homeland Security Grant Program - Operation Stonegarden 97.067 170422-02 116,610 Homeland Security Grant Program - Operation Stonegarden 97.067 170422-03 34,660 Total U.S. Department of Homeland Security 308,388 U.S. Department of Treasury Direct Grant Exchange of Federal Tax Information with State Tax Agencies 21.004 MOU 800 Passed through State of Arizona Office of the Governor COVID-19 - Coronavirus Relief Fund 21.019 ERMT-20-057 3,148,411 * Total U.S. Department of Treasury 3,149,211 U.S. Environmental Protection Agency Passed through the Water Infrastructure Finance Authority of Arizona Clean Water State Revolving Fund Cluster Capitalization Grants for Clean Water State Revolving Funds 66.458 910176-19 415,945 Drinking Water State Revolving Fund Cluster Capitalization Grants for Drinking Water State Revolving Funds 66.468 9202993-19 4,016,209 * Total U.S. Environmental Protection Agency 4,432,154 Total Expenditures of Federal Awards 10,948,748$ * Denotes major program Federal Grantor / Pass-Through Grantor / Program Title TOWN OF MARANA, ARIZONA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2020 See accompanying notes to the schedule of expenditures of federal awards. 8AMENDED Regular Council Meeting 01/19/2021 Page 375 of 402 TOWN OF MARANA, ARIZONA NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended June 30, 2020 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, 2020. 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. 9AMENDED Regular Council Meeting 01/19/2021 Page 376 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 377 of 402 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2020 SECTION I – SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting:  Material weakness(es) identified? _X_ yes ____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 16.922 Equitable Sharing Program 21.019 COVID-19 - Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 66.468 Capitalization Grants for Drinking Water State Revolving Funds Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? __ _ yes __X__ no 11AMENDED Regular Council Meeting 01/19/2021 Page 378 of 402 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2020 SECTION II – FINDINGS RELATED TO FINANCIAL STATEMENTS REPORTED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS FINDING: 2020-001: Contributed Capital Assets CRITERIA Management is responsible for establishing and maintaining internal controls and designating individuals who possess suitable skill, knowledge, and experience to execute these controls and carry out their duties to ensure that all capital contributions are recorded and reported in accordance with generally accepted accounting principles (GAAP). CONDITION/CONTEXT Management reviews and evaluates contributions to determine the proper accounting treatment. However, the review and evaluation related to one material developer contribution, made in two separate instances, in a prior fiscal year did not properly identify and capture the value of the assets being contributed, due to unique circumstances related to that project, resulting in a material adjustment necessary to properly state the financial statements. EFFECT A prior period adjustment was required to properly report the beginning balances for capital assets and net position for the Business-Type Activities on the Government-Wide Statements and Proprietary Fund Statements. CAUSE For one material developer contribution, in which the entire contributed project was accepted in two separate instances by Town Council, the Town did not have an effective internal control in place to properly detect a misstatement by means of a reconciliation between the two separate Town Council Resolutions and the Internal Cost Analysis of Contributions to the additions of the capital assets included in the general ledger. RECOMMENDATION It is recommended that all assets being contributed by developers and accepted by Town Council are reviewed and reconciled by the finance department to ensure that all assets are accurately captured in the Town capital assets. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION The Town concurs with the finding. See Corrective Action Plan. 12AMENDED Regular Council Meeting 01/19/2021 Page 379 of 402 TOWN OF MARANA, ARIZONA SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended June 30, 2020 SECTION III – FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS None Noted 13AMENDED Regular Council Meeting 01/19/2021 Page 380 of 402 AMENDED Regular Council Meeting 01/19/2021 Page 381 of 402 The Town of Marana respectfully submits the following corrective action plan for the year ended June 30, 2020. Henry & Horne LLP 2055 E. Warner Rd., Suite 101 Tempe, Arizona 85284 Audit period: June 30, 2020 The findings from the June 30, 2020 schedule of findings are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS-FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2020-001: Contributed Capital Assets Condition: Management reviews and evaluates contributions to determine the proper accounting treatment. However, the review and evaluation related to one material developer contribution, made in two separate instances, in a prior fiscal year did not properly identify and capture the value of the assets being contributed, due to unique circumstances related to that project, resulting in a material adjustment necessary to properly state the financial statements. Corrective Action Plan: We concur. The Town will update the existing review and evaluation process to ensure all assets being contributed by developers and accepted by Town Council agree with the Resolution identifying the acceptance of the assets. If there are questions regarding this plan, please contact Yiannis Kalaitzidis, Finance Director at 520-382-1999. AMENDED Regular Council Meeting 01/19/2021 Page 382 of 402 Fiscal Year 2019-2020 Audit Summary and Final Results Yiannis Kalaitzidis Finance Director January 12, 2021 AMENDED Regular Council Meeting 01/19/2021 Page 383 of 402 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 •1 Audit Finding –Recorded Certain Capital Assets Twice •Difficulties Encountered in Performing the Audit •Corrected and Uncorrected Misstatements •Disagreements with Management 2AMENDED Regular Council Meeting 01/19/2021 Page 384 of 402 AUDIT SUMMARY •Annual Expenditure Limitation Report •Town’s voter-approved alternative expenditure limitation for 2020 was $149.3 million. Actual expenditures under the limitation were $49.8 million. •Single Audit •Audit report required when federal expenditures exceed $750,000 •F/Y 2020 federal expenditures were $10,948,748 3AMENDED Regular Council Meeting 01/19/2021 Page 385 of 402 FINAL RESULTS –GENERAL FUND Budgeted Amounts Original Final Actual Percent of Budget Revenues $47,088,667 $47,088,667 $55,870,154 112.3% Expenditures 51,751,547 50,380,838 42,402,824 84.2% Excess (deficiency) of revenues over expenditures (4,662,880)(3,292,171)10,467,330 -317.9% Other financing sources (uses)(4,445,542)(4,445,542)(882,332) Changes in fund balances (9,108,422)(7,737,713)9,584,998 Fund balances, beginning of year 36,555,856 36,555,856 36,555,856 Fund balances, end of year $27,447,434 $28,818,143 $46,140,854 4AMENDED Regular Council Meeting 01/19/2021 Page 386 of 402 FINAL RESULTS –HIGHWAY USER REVENUE FUND Budgeted Amounts Original Final Actual Percent of Budget Revenues $3,655,329 $3,655,329 $4,201,553 114.9% Expenditures 5,106,881 5,106,881 4,081,017 79.9% Excess (deficiency) of revenues over expenditures (1,451,552)(1,451,552)120,536 -8.3% Other financing sources:--37,500 Changes in fund balances (1,451,552)(1,451,552)158,036 Fund balances, beginning of year 3,016,884 3,016,884 3,016,884 Fund balances, end of year $1,565,332 $1,565,332 $3,174,920 5AMENDED Regular Council Meeting 01/19/2021 Page 387 of 402 FINAL RESULTS –BED TAX FUND Budgeted Amounts Original Final Actual Percent of Budget Revenues $1,227,600 $1,227,600 $1,288,972 105.0% Expenditures 1,227,600 1,227,600 820,776 66.9% Excess (deficiency) of revenues over expenditures --468,196 Changes in fund balances --468,196 Fund balances, beginning of year 1,869,207 1,869,207 1,869,207 Fund balances, end of year $1,869,207 $1,869,207 $2,337,403 6AMENDED Regular Council Meeting 01/19/2021 Page 388 of 402 FINAL RESULTS –TRANSPORTATION FUND Budgeted Amounts Original Final Actual Percent of Budget Revenues $5,421,050 $5,421,050 $8,961,924 165.3% Expenditures 16,434,682 16,434,682 5,719,347 34.8% Excess (deficiency) of revenues over expenditures (11,013,632)(11,013,632)3,242,577 -29.4% Other financing sources (uses)(691,899)(691,899)224,112 Changes in fund balances (11,705,531)(11,705,531)3,466,689 Fund balances, beginning of year 13,383,889 13,383,889 13,383,889 Fund balances, end of year $1,678,358 $1,678,358 $16,850,578 7AMENDED Regular Council Meeting 01/19/2021 Page 389 of 402 FINAL RESULTS –ENTERPRISE FUNDS Water Wastewater Airport Total Operating revenues $6,376,121 $1,873,203 $393,857 $8,643,181 Operating expenses 6,331,220 3,346,546 1,392,850 11,070,616 Operating loss 44,901 (1,473,343)(998,993)(2,427,435) Nonoperating revenue (expense)(150,578)(773,875)-(924,453) Contributions and transfers 5,750,778 4,967,240 3,021,642 13,739,660 Changes in net position 5,645,101 2,720,022 2,022,649 10,387,772 Net position, beginning of year 37,629,018 41,058,018 16,937,918 95,624,954 Net position, end of year $43,274,119 $43,778,040 $18,960,567 $106,012,726 8AMENDED Regular Council Meeting 01/19/2021 Page 390 of 402 Questions? AMENDED Regular Council Meeting 01/19/2021 Page 391 of 402      Council-Regular Meeting   D2        Meeting Date:01/19/2021   To:Mayor and Council Submitted For:Scott Schladweiler, Water Director From:Scott Schladweiler, Water Director Date:January 19, 2021 Strategic Plan Focus Area: Not Applicable Subject:Relating to Utilities; discussion and direction on the application of the IGA between the City of Tucson and the Town of Marana Relating to the Delivery of Central Arizona Project Water to proposed developments within the Town limits (Scott Schladweiler) Discussion: The Town Council adopted Marana Resolution No. 2020-087 on August 18, 2020, approving the IGA with the City of Tucson relating to the Delivery of Central Arizona Project Water (commonly referred to as the “Wheeling IGA”).  The Wheeling IGA allows Marana Water to serve areas by wheeling the Town's CAP water through Tucson Water's potable water system to points of interconnection within the Town limits. It was created as a mechanism to allow Marana Water to provide potable water service to developable properties located within Town limits that are too far away from existing Marana Water facilities to receive cost-effective service from Marana Water and are close enough to be served by water lines owned and operated by Tucson Water, but that do not meet Tucson Water’s water service policy. At an October 13, 2020 Study Session, staff requested policy feedback on when and under what conditions to use the Wheeling IGA for prospective developments.  During the Study Session, Council requested that staff conduct research on two specific items and return with recommendations.  The first item was whether Marana Water rates can cover Tucson Water’s delivery costs through a reduction in production costs at Marana Water facilities.  After comprehensive review, Marana Water rates can in fact absorb the cost of wheeling Marana’s CAP water to serve developments that would receive wheeled water. AMENDED Regular Council Meeting 01/19/2021 Page 392 of 402 wheeled water. The second request was to explore the possibility of creating a fee that could be applied to both prospective temporarily and permanently wheeled developments.  The purpose of the fee was to take the place of developers being required to provide large advanced payments for future infrastructure costs for developments requiring temporary wheeling, and to level the playing field between temporarily and permanently wheeled developments, so neither had a significant financial advantage.  After review, it was determined such a fee would be difficult to justify and legally defend.  Upon further research and careful consideration, staff recommends the following approach for applying the Wheeling IGA: For locations in Marana Water’s intended service area, the project must connect to Marana Water infrastructure.  No temporary wheeling will be allowed.  All applicable impact fees must be paid.  This is consistent with practice in all other portions of Marana. 1. If the project is located in an area where Marana Water does not intend to extend infrastructure (i.e. outside its intended service area), the project will be a candidate for permanent wheeling. These developments shall be required to pay a fee for acquiring additional water resources, since these developments are not currently included projected water developments in our current Designation of Assured Water Supply (DAWS). 2. Staff Recommendation: Staff recommends authorization to establish wheeling policies consistent with the recommendations presented in this agenda item.     Suggested Motion: Council's pleasure. Attachments Wheeling Policy Presentation AMENDED Regular Council Meeting 01/19/2021 Page 393 of 402 Wheeling IGA Policy and Direction January 19, 2021 AMENDED Regular Council Meeting 01/19/2021 Page 394 of 402 •Approved August 18 by Resolution No. 2020-087 •The Town's CAP water is wheeled through TW's potable water system to points of interconnection within the Town limits •A mechanism to allow MW to provide potable water service to properties –located within Town limits –too far away from existing MW facilities to receive cost-effective service from MW –close enough to be served by water lines owned and operated by TW but do not meet TW’s water service policy Wheeling IGA AMENDED Regular Council Meeting 01/19/2021 Page 395 of 402 •October 13, 2020 Study Session provided initial approach to applicability of the Wheeling IGA -Can Marana Water rates absorb the costs from Tucson Water through a savings in reduced production/delivery costs to developments receiving wheeled water? -Explore options for a fee that could be applied to temporary and permanent wheeling customers so that permanent and temporary are treated equally Background AMENDED Regular Council Meeting 01/19/2021 Page 396 of 402 •Marana Water can in fact cover the additional costs of wheeling in current rate structure –$500 to $670 per acre foot of water delivered •Pumping, maintenance, electricity, and treatment Can provide water service at no additional cost to customers Rates AMENDED Regular Council Meeting 01/19/2021 Page 397 of 402 •Each proposed development is required to determine impacts it will have on the system and the infrastructure to offset those impacts •This is all completed during the early design stages of the project •Reviewed 10 projects that had offsite or significant onsite infrastructure required to develop –Developers paid additional 2-3 times the impact fee for that area to construct infrastructure –Developers also paid impact fees; Impact fee only used as a point of reference •For projects that require oversizing reimbursement options, details are applied and negotiated in a water service agreement Current practice AMENDED Regular Council Meeting 01/19/2021 Page 398 of 402 •Fee for use of wheeling agreement would be difficult to justify and defend •This could be an advantage over developments that have no choice but to connect to Marana Water (those close to existing infrastructure, not near Tucson Water) •Temporary wheeling had a limited area of applicability •Additional resources required for developments not included in our DAWS –Fee for use of CAGRD water for 15 years –Approximately $3,300 per EDU Fee for Wheeling AMENDED Regular Council Meeting 01/19/2021 Page 399 of 402 •If the project is in Marana Water’s intended service area, the project must connect to Marana Water infrastructure. All offsite infrastructure costs would be paid by the developer and all impact fees would apply. •No temporary wheeling –would apply to limited areas (service area map) •If the project is located in an area where Marana Water does not intend to extend infrastructure, the project would be a candidate for permanent wheeling. These developments shall be required to pay a fee for acquiring additional water resources as they are not currently included in our DAWS . •Applied administratively Recommendation AMENDED Regular Council Meeting 01/19/2021 Page 400 of 402 -May temporarily limit development opportunities for those in our intended service area not located near Marana Water infrastructure +Simple, straight forward +Allows development in areas where Marana will not have infrastructure to be served through permanent wheeling + Similar to how other developments in Marana are evaluated +Will help reduce future infrastructure impact fees projects, minimizing costs for future development + Fee for future water resources in permanently wheeled areas Recommendation AMENDED Regular Council Meeting 01/19/2021 Page 401 of 402 Questions/Discussion AMENDED Regular Council Meeting 01/19/2021 Page 402 of 402 1 Cherry Lawson From:karen kansfield <kkansfield@yahoo.com> Sent:Monday, January 18, 2021 11:40 AM To:Ed Honea; John Officer; Roxanne Ziegler; Jon Post; Herb Kai; Patti Comerford Cc:TownManager; Cherry Lawson Subject:Marana Town Council Meeting ( 9/16/21 ) - Item D2 - Marana Water/Tucson Water Intergovernmental Agreement (IGA) - Delivery of CAP Water PLEASE BE CAUTIOUS THIS MESSAGE AND SENDER COME FROM OUTSIDE THE TOWN OF MARANA. IF YOU DID NOT EXPECT THIS MESSAGE, PROCEED WITH CAUTION. VERIFY THE SENDER'S IDENTITY BEFORE PERFORMING ANY ACTION, SUCH AS CLICKING ON A LINK OR OPENING AN ATTACHMENT. ________________________________ I am writing in support of comments filed by the Tortolita Alliance on January 16, 2021 in regards to the following: "The IGA allows wheeling of Marana’s CAP water through the Tucson Water system including the WSA infrastructure described above. If a new developer is allowed to connect to this existing WSA infrastructure, they are essentially getting a “free ride” as the residents paid for the original infrastructure. The IGA should be amended to include a provision whereby any proposed connection to existing WSA infrastructure must include a comprehensive cost of service study and determine the appropriate prorated refund to the residents who paid for the original WSA infrastructure." - Karen and Marenis Kansfield 13837 N. Rim Trail Marana, AZ 85658 1 Cherry Lawson From:Mark Johnson <info@tortolitaalliance.com> Sent:Saturday, January 16, 2021 10:07 AM To:Ed Honea; Cherry Lawson Cc:Scott Schladweiler; Jane Fairall Subject:Marana Town Council Meeting-1-19-21-TA Comment Letter-Item D2-IGA Attachments:TA Comment Letter-Item D2-Tucson Water IGA w attach-1-16-21.pdf PLEASE BE CAUTIOUS THIS MESSAGE AND SENDER COME FROM OUTSIDE THE TOWN OF MARANA. IF YOU DID NOT EXPECT THIS MESSAGE, PROCEED WITH CAUTION. VERIFY THE SENDER'S IDENTITY BEFORE PERFORMING ANY ACTION, SUCH AS CLICKING ON A LINK OR OPENING AN ATTACHMENT. Good morning Mayor Honea: Attached is TA Comment Letter regarding Marana Town Council Meeting-1-19-21-Item D2-IGA. Good morning Cherry: Please distribute this letter to the Town Council. Thanks. Mark Mark Johnson President Tortolita Alliance 12090 N Thornydale Road Suite 110, #328 Marana, AZ 85658 info@tortolitaalliance.com www.tortolitaalliance.com January 16, 2021 Mayor Ed Honea Town of Marana 11555 W Civic Center Drive Marana, AZ 85653 Subject: Marana Town Council Meeting (9/16/21)-Item D2-Marana Water/Tucson Water Intergovernmental Agreement (IGA)-Delivery of CAP Water Dear Mayor Honea: The Tortolita Alliance (TA) is local non-profit organization that advocates for the continued conservancy of the Tortolita Preserve and associated lands, ensuring protection of open space, wildlife habitat, watershed, and compatible recreational use. TA has reviewed and provided comment to the Town of Marana (Marana) (TA 8/18/20 letter attached) regarding the Intergovernmental Agreement (IGA) between Marana and Tucson Water for the Delivery of Central Arizona Project (CAP) Water. The IGA was approved by the Marana Town Council on August 18, 2020 per Resolution No. 2020-087. TA has brought to the attention of Marana Town Attorney (Cassidy/Fairall) and Tucson City Attorney (Avery) a flaw in the IGA that must be corrected. Tucson Water currently provides water service to portions of Marana via various Water Service Agreements (WSAs) with private developers. The WSAs provide the terms for water service and outline the water infrastructure required to be built and funded by the developer. These WSA infrastructure costs are ultimately passed on to residents (Tucson Water customers) when they purchase a lot/home. There also may be additional related embedded infrastructure and other costs paid by residents via their Tucson Water bill. The IGA allows wheeling of Marana’s CAP water through the Tucson Water system including the WSA infrastructure described above. If a new developer is allowed to connect to this existing WSA infrastructure, they are essentially getting a “free ride” as the residents paid for the original infrastructure. The IGA should be amended to include a provision whereby any proposed connection to existing WSA infrastructure must include a comprehensive cost-of- service study and determine the appropriate prorated refund to the residents who paid for the original WSA infrastructure. Page 2 Marana Town Council-8/18/20 Item A1-Proposed La Puerta del Norte East Anexation We hope you will direct Marana staff and City Council to amend the IGA accordingly. We have requested the Tucson Mayor Romero to do the same (see 1-16-21 letter attached). Thank you for the opportunity to comment. Regards, Mark L. Johnson President ec: Mayor Ed Honea (Marana) Cherry Lawson (Marana) Scott Schladweiler (Marana Water) Frank Cassidy (Town Attorney) Jane Fairall (Deputy Town Attorney) 12090 N Thornydale Road Suite 110, #328 Marana, AZ 85658 info@tortolitaalliance.com www.tortolitaalliance.com August 18, 2020 Mayor Ed Honea Town of Marana 11555 W Civic Center Drive Marana, AZ 85653 Subject: Marana Town Council Meeting (8/18/20)-Item A4-Marana Water/Tucson Water Intergovernmental Agreement (IGA)-Delivery of CAP Water Dear Mayor Honea: The Tortolita Alliance (TA) is local non-profit organization that advocates for the continued conservancy of the Tortolita Preserve and associated lands, ensuring protection of open space, wildlife habitat, watershed, and compatible recreational use. TA has reviewed the proposed Intergovernmental Agreement (IGA) between Marana and Tucson Water for the Delivery of Central Arizona Project (CAP) Water and we have preliminary comments and questions outlined below. The recent voter-ratified Make Marana 2040 General Plan calls for the development of a Water Master Plan. It seems premature to consider this IGA until that critical planning item is completed. Due to the number of questions and the lack of transparency related to this IGA, and the fact that the Water Master Plan has not been completed, TA fervently requests that this Item be deferred. Here are the preliminary comments & questions: • The IGA appears to be in conflict with the Tucson Water Service Area Policy (8/4/10). • Marana Water’s existing Water Service Areas map on its website depicts in light blue the Marana Intended Service Area (MISA). The map used in the IGA presentation indicates that Marana (via the IGA) can serve areas well beyond the MISA area. The IGA service area should match the existing MISA. • The current M&I rate for CAP water is $160/AF. The IGA requires Marana to pay an additional Volume Charge of $499.89/AF or over 3 times the CAP water cost! Please provide studies performed by Marana Water that justify this additional cost. • The IGA requires Marana to pay for any Potable Water System Improvements to deliver the CAP water in addition to the Volume Charge. Please provide studies performed by Marana Water that justify this additional cost. Page 2 Marana Town Council-8/18/20 Item A4- Marana Water/Tucson Water Intergovernmental Agreement (IGA) Delivery of CAP Water • The IGA presentation shows two projects; (1) Silverbell Gateway and (2) Hazra Property. Assuming these are residential or commercial development projects, are the projects going to pay the Volume Charge and Potable Water System Improvement costs? What would the residential water rate be for these projects assuming they pay these additional charges? How do these projects fit in with the Water Master Plan? • The IGA presentation indicates that the proposed development projects would create satellite water systems. Why would Marana Water create satellite water systems when they are trying to consolidate the existing 7 water systems? Once again, TA requests that this Item A4 be deferred for the reasons stated above. Thank you for the opportunity to comment. Regards, Mark L. Johnson President ec: Mayor Ed Honea (Marana) Cherry Lawson (Marana) Scott Schladweiler (Marana Water) Frank Cassidy (Town Attorney) Jane Fairall (Deputy Town Attorney) 12090 N Thornydale Road Suite 110, #328 Marana, AZ 85658 info@tortolitaalliance.com www.tortolitaalliance.com January 16, 2021 Mayor Regina Romero City of Tucson City Hall 255 W. Alameda Tucson, AZ 85701 Subject: Marana Water/Tucson Water Intergovernmental Agreement (IGA)-Delivery of CAP Water Dear Mayor Romero: The Tortolita Alliance (TA) is local non-profit organization that advocates for the continued conservancy of the Tortolita Preserve and associated lands, ensuring protection of open space, wildlife habitat, watershed, and compatible recreational use. TA has reviewed and provided comment to the Town of Marana (Marana) (TA 8/18/20 letter attached) regarding the Intergovernmental Agreement (IGA) between Marana and Tucson Water for the Delivery of Central Arizona Project (CAP) Water. The IGA was approved by the Marana Town Council on August 18, 2020 per Resolution No. 2020-087. TA has brought to the attention of Marana Town Attorney (Cassidy/Fairall) and Tucson City Attorney (Avery) a flaw in the IGA that must be corrected. Tucson Water currently provides water service to portions of Marana via various Water Service Agreements (WSAs) with private developers. The WSAs provide the terms for water service and outline the water infrastructure required to be built and funded by the developer. These WSA infrastructure costs are ultimately passed on to residents (Tucson Water customers) when they purchase a lot/home. There also may be additional related embedded infrastructure and other costs paid by residents via their Tucson Water bill. The IGA allows wheeling of Marana’s CAP water through the Tucson Water system including the WSA infrastructure described above. If a new developer is allowed to connect to this existing WSA infrastructure, they are essentially getting a “free ride” as the residents paid for the original infrastructure. The IGA should be amended to include a provision whereby any proposed connection to existing WSA infrastructure must include a comprehensive cost-of- service study and determine the appropriate prorated refund to the residents who paid for the original WSA infrastructure. Page 2 Marana Water/Tucson Water Intergovernmental Agreement (IGA)-Delivery of CAP Water We hope you will direct Tucson staff and City Council to amend the IGA accordingly. Thank you for the opportunity to comment. Regards, Mark L. Johnson President ec: Tucson City Council via Roger Randolph, Tucson City Clerk Chris Avery, Tucson City Attorney Kris LaFleur, Tucson Water Analyst Mayor Ed Honea (Marana) Cherry Lawson (Marana Town Clerk) Scott Schladweiler (Marana Water) Jane Fairall (Deputy Town Attorney)